PPP Management

It may be a complex procurement with capital assets, inventory and associated technical training worth a value of £4.4Bn but almost 7 years does seen a very long time. BAE Systems has now reached a conclusion with Saudi Arabia over the purchase of 72 Typhoon aircraft.  This news come only a couple of weeks after sales to UAE fell through.  This might seem a series of standard events in any other time but it events both in Europe and the Middle East make for interesting interpretation: 1.  The consortium that builds Typhoon includes Finmeccanica; a company recently embroiled in a corruption scandal that has resulted in the chairman and chief executive being investigated.  The scandal has also meant a lucrative helicopter order being cancelled. 2.  Both Saudi Arabia and UAE are supporting the opposition in the Syrian civil war; a conflict that is bringing Saudi Arabia into conflict with Iran, the Syrian government's main backer.

Congratulations to BAE Systems on the recent contract with South Korea to upgrade aircraft. "Nothing new!" many will shout; but what is very interesting is the fact that BAE Systems are not the OEM of the aircraft. Yes, BAE Systems are a world leading manufacturer of aerospace vehicles and equipment and yes they provide outstanding support to the armed forces who operate BAE Systems aircraft. This marks a real departure in their strategy of providing services. Upgrading an aircraft system from another OEM. Understanding the different engineering layouts and getting the bill of materials correct will prove to a real challenge, especially as the OEM of the aircraft (who will also have very strong relationships with component suppliers) was beaten in the competition. A great story, which could only have been better was if the work was being undertaken in the UK. Let's hope that this departure for BAE Systems in upgrading other OEMs aircrafts for clients is successful...