BAE Systems has signed a major servicing contract with the Royal Saudi Air Force in connection with the country's new Typhoon fighter jets, boosting BAE company figures in an otherwise rocky 2009.

The deal, announced by the company earlier this week, is to support the introduction of the Eurofighter Typhoon jets Saudi Arabia ordered in December 2005.

The first four of the 72 Typhoons have already been delivered to the Saudis, and the latest servicing contract includes aircraft availability, training by British air force pilots and improvements to airfield capabilities in Saudi Arabia, according to Defensenews.com.

The deal, estimated to be worth nearly $800 million, comes on the heels of an initial servicing contract both parties signed in March.

"The Salam Support Solution builds on BAE Systems' knowledge and experience gained working alongside (Britain's) Royal Air Force in supporting the UK's Typhoon fleet," Cliff Robson, BAE's deputy managing director for the Typhoon, said in a statement. "This will provide the Royal Saudi Air Force with the necessary support as the Typhoon transitions from entry-into-service to full operation."

The deal is good news for BAE. Europe's largest arms company has had a rocky year so far. This month British prosecutors said they plan to file charges against BAE in connection with allegations of bribery payments to clients in Eastern Europe and Africa. A few weeks earlier, it announced it would let go 1,116 people in Britain until 2012.

The company Wednesday nevertheless said it expected a good 2009.

"The group continues to anticipate a year of good growth for 2009 as a whole despite a lower volume of land vehicle sales than in 2008," BAE said in a statement. "When compared with 2008, the group's trading results are expected to benefit from any continued weakness of sterling against the U.S. dollar."

BAE is building two aircraft carriers for the British navy and is involved in the Joint Strike Fighter and Eurofighter programs. Britain, Germany, Italy and Spain in August signed a $13 billion order contract for a total of 112 Eurofighter jets.

The Eurofighter Typhoon is a twin-engine canard-delta wing multirole aircraft, designed and built by a consortium formed in 1986 that besides BAE includes German-Spanish European Aeronautic Defense and Space Co. and Italy's Finmeccanica. The maiden flight of the Eurofighter prototype took place in March 1994.

BAE is the main equipper of the British armed forces and is strong in the United States, where it generates 58 percent of its sales.

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Switzerland rethinks new fighter planes: report

Switzerland could scrap moves to buy up to 20 new fighter planes after the defence minister voiced fears over the cost, a Swiss daily reported on Thursday.

France's Rafale jet, made by Dassault, the Grippen, made by Sweden's Saab, and the Eurofighter Typhoon, made by a four-nation European consortium were in contention for the deal.

Defence Minister Ueli Maurer argued before the Swiss cabinet on Wednesday that replacing the aging fleet of war planes would be too expensive, the Tages-Anzeiger newspaper reported citing unnamed sources.

No final decision was taken, it adeed. A government spokesman told AFP that he was "unable to confirm" the report.

"The issue of fighter planes was discussed. No decision has been taken and discussions are ongoing," the spokesman said.

Switzerland had planned to spend 2.2-2.5 billion francs (1.7-2.4 billion euros) on up to 20 fighter planes to replace its F-5 Tiger aircraft, some of which are more than 30 years old.

Tages-Anzeiger newspaper reported that the Swiss defence ministry now believes that it could cost up 7.0 billion francs.

Switzerland had planned to choose the supplier by early 2010.

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