Under Scottish Skies – Selling the Typhoon

As part of a Finnish media tour I had the opportunity to spend a day at RAF Lossiemouth, where BAE Systems and RAF briefed us on why they think the Eurofighter Typhoon would be the right choice for Finland. No discussion on the Typhoon is complete without mentioning the cost, so lets start with a look at the business side of things.

The large twin-engined fighter has so far struggled to secure export orders outside of the wealthy Gulf states, something which is often attributed to the price tab. BAE Systems regional manager Mark Parkinson doesn’t deny that the fighter is expensive. “It’s a large aircraft, which means it has more parts than some of the competitors,” he notes. “That’s certainly visible in the unit cost.” But beyond the outright acquisition cost, the Eurofighter is remarkably competitive, with the current ten-year support agreement signed between BAE and RAF stipulating a support cost per flying hour that is on level with that of the F-16.

Mark Parkinson

“None of these aircrafts are cheap”
Mark Parkinson, Regional Manager BAE Systems

At the heart of this agreement from last summer is the Typhoon Total Availability eNterprise, or TyTAN for short, a support package aiming at closer co-operation between BAE Systems and RAF, who both share the common aim of making sure the operating costs are kept low and availability high for the Typhoon fleet. In essence, BAE tries to react proactively to any upcoming issues and provide for an increased level of training amongst the front-line mechanics of the air force, while RAF in turn strives to clearly communicate their needs and expectations back to BAE. In the words of John Bromehead, “The beauty of TyTAN is us sitting on the same side of table”, and contrasted this to the more traditional customer-supplier relationship which in the past has caused unnecessary friction over contractual issues. As a whole, the role of BAE as the prime contractor for British Typhoon support is not unlike how the Finnish Defence Forces and Millog are handling their strategic partnership in some areas.

Bromehead is the general manager of BAE Systems at Lossiemouth, meaning he oversees a team of some sixty persons that are responsible for not only the maintenance of the aircrafts and the supply chain associated with it, but also for the Typhoon Training Facility (North), an on-site simulator facility where six senior instructors lead the training of the operational fighter pilots. Of his team, only about half are actually BAE employees, with RAF providing a third of the work force, and Leonardo (ex-Selex), Thales, and other subcontractors making up the rest. In the same way as RAF is making resources available to BAE, Bromehead has a single BAE engineer posted to each of the squadrons operating at the base. “These are my ears and eyes,” he explains. The role of the engineers is to get a clear picture of how the operational squadrons perceive the aircraft, what kinds of demands and expectations they place upon it, and then communicate these back to the BAE. As noted, BAE is contractually bound to the ambitious goal of 40% reduction in support costs, and while this still is some way out in the future, a number of relatively simple improvements such as ensuring proper diagnostics not leading to unnecessary swapping out of healthy aircraft parts has meant that already in its first nine months TyTAN has seen reductions in flight hour costs.

John Bromehead

“Typhoon is a step-change in technology for the RAF”
John Bromehead, General Manager BAE Systems

For HX, Parkinson noted that the exact package is still open, and that BAE is in a dialogue with relevant Finnish authorities to get a better picture of what the Air Force and the MoD wants. This includes questions such as whether the contract will be in Euros or Pounds, and what kind of a support package is to be included. “The aircraft does come as a kit of parts,” Parkinson explained, meaning that a final assembly line could be set up in Finland with relative ease. In addition to the question of final assembly, he also revealed that the RFI included questions on whether it is possible to provide test rigs and/or an instrumented aircraft. The answer to both questions is yes, and in the end proper test rigs (and potentially a fully instrumented flight test aircraft) could be of more interest to the Finnish Air Force than a production line. Already under current orders and production rate, a potential Finnish order would fit in well with the large production schedule, and BAE has their scope set on a number of “promising” prospective orders, both new and returning customers. The general message was that while nothing is decided when it comes to the exact scope of the industrial cooperation, more or less anything requested by the Finnish Ministry of Defence can be provided. It is just a question of, you guessed it, cost.

I was invited for a Finnish media event to RAF Lossiemouth. The one-day event included briefings by both RAF and BAE Systems personnel (with the travelling taking places on the days before and after), and BAE kindly offered to cover the travel and stay in Scotland. Neither BAE nor RAF has put any restrictions or requests regarding what I do with the information given, nor have they reviewed (or asked for permission to review) any of my texts before publication. Instead, all involved were very forthcoming with providing us with information and answering questions we had regarding the Eurofighter Typhoon fighter program and how it is operated by the RAF. As RAF Lossiemouth is an active air force base, photography was naturally restricted to certain locations and angles.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s