British aerospace major BAE Systems is mulling to lower its Eurofighter Typhoon price
in a bid to win back a 7 billion pound ($11 billion) Indian defence contract from
French aircraft manufacturer Dassault.
Winning the Indian contract would help BAE sustain tens of thousands of jobs, although the production is expected to gradually move to India if Britain won the deal, the Daily Telegraph reported.
According to Ian King, BAE's chief executive, the company is considering a range of options to secure the deal to supply fighter jets. It could help prevent a major industrial setback for Britain, he added.
BAE, according to a source close to the company, was consulting with its partners in Germany, Italy and Spain to see what was feasible in the coming days and weeks.
India had previously changed its mind on defence contracts, said the source, adding there was "still some way to go" before any decisions by the country were made.
The insider insisted the contract was still up for grabs, with Dassault's Rafale only having been named as the lowest-priced compliant bidder instead of being awarded the contract.
Last month, as the Indian government named the French manufacturer its preferred partner for the deal, Britain suffered a setback in its drive to kickstart growth and rebalance the economy towards advanced manufacturing.
Trade union Unite warned the selection of the Rafale could have "serious implications" for BAE Systems and the UK aerospace industry. It is estimated that 40,000 British jobs are supported by the project.
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