Austria's Eurofighter Scandal: Corruption And Broken Promises

why is austria upset with eurofighter builders

Austria's decision to procure the Eurofighter Typhoon jets in 2003 has been a controversial one. The country's defence minister has expressed intentions to sell the jets as soon as possible, citing escalating costs and suspicions of bribery and fraud. Austria initially ordered 18 jets but later reduced the order to 15, which were delivered by 2009. The country is now looking for alternative aircraft, preferably from a neutral country, and has considered options such as the Swedish Gripen E/F or the American F-16. The Austrian government believes it was deceived into the acquisition, and ongoing legal battles with Airbus and the Eurofighter consortium have further strained the relationship.

Characteristics Values
Reason for Austria's upset Austria believes it was duped into the acquisition of the Eurofighter jets in 2003
Action taken by Austria Austria sued Airbus and the Eurofighter consortium, alleging deception and fraud
Cost of jets $2 billion
Number of jets ordered 18, later reduced to 15
Year of delivery 2009
Year of phasing out 2020
Replacement jets Leonardo M346FA advanced jet trainer/light combat aircraft
Number of replacement jets 12 to 15
Cost of continued use of Eurofighter jets €4.4 billion to €5.1 billion over 30 years

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Austria's government sued the Eurofighter consortium for fraud and deception

In 2003, Austria signed a EUR 2 billion contract to receive 18 EADS Eurofighter jets. However, the deal was reduced to 15 jets in 2007. The purchase of the jets was controversial from the outset, with allegations of bribery and side deals accompanying the purchase. In 2017, Austria's government sued Airbus and the Eurofighter consortium, which includes BAE Systems and Italy's Leonardo, for fraud and wilful deception. The Austrian defence ministry alleged that Airbus and the consortium illegally charged nearly 10% of the purchase price of 1.96 billion euros for offset deals. Offset deals involve work being given to local companies and, while they were part of the agreement, their cost should have been reported separately. The defence ministry also believed that Airbus and the consortium had misled Austria about the purchase price, deliverability, and equipment of the jets. The incurred damage was estimated to amount to 1.1 billion euros.

Austrian prosecutors initiated a formal criminal investigation against Airbus and the Eurofighter consortium, listing the two companies as defendants following a ministry complaint. This investigation added to the ongoing Austrian and German investigations of the controversial aircraft purchase. Airbus denied the accusations, stating that the publication of criminal charges against a listed company by means of a press conference was unacceptable and unprofessional. They further threatened the Austrian defence minister with legal action, arguing that they had disregarded the presumption of innocence and violated their rights.

In 2018, Austria's new government signalled its willingness for talks amid the legal battle with the manufacturers. However, they stated that they would not consider a new deal with the Eurofighter consortium before compensation for damages had been paid. The previous government's decision to end the Eurofighter jet programme early was also being re-assessed.

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The Eurofighter jets were considered militarily subpar and economically unsustainable

Austria's Eurofighter jets, also known as the Typhoon jets, have been a source of controversy for many years. The Austrian government has had a long-standing suspicion of the jets, believing that the country was duped into acquiring them in 2003. This controversy has led to investigations into possible corruption and fraud surrounding the procurement of the jets.

The high costs of maintaining the Eurofighter jets put a strain on Austria's defence budget and diverted resources from other branches of the armed forces. The jets were also not capable of round-the-clock operations, which was a key requirement for Austria's defence strategy. Additionally, the jets lacked certain capabilities, such as night-time identification, which further limited their effectiveness.

The decision to phase out the Eurofighter jets was made in 2017, with the process expected to begin in 2020. However, the replacement jets have not yet been decided, and Austria has explored various options, including the Swedish Gripen E/F, the American F-16, and the Leonardo M346FA advanced jet trainer/light combat aircraft. The Austrian government has also considered procuring an interim aircraft from a neutral country until a final decision is made.

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Austria's defence minister wants to sell the country's Eurofighters

Austria's defence minister, Klaudia Tanner, wants to sell the country's Eurofighters as soon as possible. The sale of the Eurofighter Typhoons is due to the controversy surrounding the aircraft, which has included many years of bribe investigations. Austria's Air Force flew the Saab J35 Draken before procuring the Typhoons in 2003.

In 2003, Austria signed a EUR 2 billion contract to receive 18 EADS Eurofighters, with the final aircraft delivered in 2009. However, in 2007, the order was reduced to 15. The Eurofighter's rough ride in Austria seemed to be over in 2009, but controversies have continued. In 2018, Austria's new government re-assessed the previous government's decision to end the Eurofighter jet programme early, signalling a willingness for talks amid a legal battle with the manufacturers, including Airbus and the BAE Systems.

In 2021, Tanner announced plans to procure an interim aircraft from a neutral country until parliament decides to buy a new fighter aircraft. It is unclear which fighter will replace the Eurofighter Typhoon. Austria's air force has asked for 36 new fighter jets as the current fleet is too small to police the country's airspace reliably. In 2022, the Austrian Ministry of Defense announced that the Eurofighter fleet would be modernised with night vision, self-defence, and medium-range missiles.

In March 2025, Tanner announced that Austria would spend €4 billion on the acquisition of long-range air defence missiles. She also announced that the country would acquire 12 M-346FA jets from Italian defence group Leonardo to serve as training vehicles for Austrian pilots.

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The cost of continued Eurofighter use is estimated at $6.24 billion over 30 years

Austria's Eurofighter Typhoon jets, which were procured in 2003, have been mired in controversy. The country's defence ministry has been embroiled in a legal battle with the manufacturers, accusing them of fraud and deception. The Austrian government has expressed dissatisfaction with the escalating costs associated with the Eurofighters and has deemed them economically unsustainable.

The cost of maintaining and operating the Eurofighter jets over their expected lifespan of 30 years is estimated to be substantial. According to sources, the continued use of these jets for 30 years could cost Austria up to 5 billion euros ($6.24 billion). This estimate primarily includes the expenses for maintenance and upkeep of the jets.

The high costs associated with the Eurofighter jets have led the Austrian government to consider alternative options. They have explored the possibility of procuring interim aircraft from neutral countries until a permanent replacement is decided by parliament. The Swedish Gripen E/F and the American F-16 have been mentioned as potential alternatives to the Eurofighter jets.

The decision to phase out the Eurofighter jets and seek cheaper alternatives is driven by the desire to find more cost-effective solutions for Austria's air defence needs. The defence ministry aims to acquire modern, high-performance aircraft capable of round-the-clock operations while also being mindful of the taxpayer's interests.

The process of replacing the Eurofighter jets is not without its challenges. The Austrian government has stated that there will be no new procurement deals until compensation has been received from the Eurofighter consortium. Additionally, the timing of the replacement coincides with national elections, adding a layer of complexity to the decision-making process.

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Austria's government believes the country was duped into the acquisition

Austria's government believes the country was duped into acquiring the Eurofighter Typhoon jets in 2003. The country's defence minister, Klaudia Tanner, wants to sell the jets as soon as possible. Austria's chief lawyer, Wolfgang Peschorn, has said that there will be no new procurement before compensation has been made.

In 2017, Austria's defence ministry announced plans to phase out its fleet of 15 Eurofighter jets from 2020 and replace them with a cheaper alternative. The continued use of the Eurofighter jets for 30 years would cost up to 5 billion euros, largely for maintenance. The defence ministry has said it prefers a government-to-government deal to buy or lease aircraft from another country rather than organising a tender, which would take longer.

In 2018, Austria's new government said it would re-assess the previous government's decision to end the Eurofighter jet programme early, signalling a willingness for talks amid a legal battle with the manufacturers. However, Austria will not consider a new deal with the Eurofighter consortium before compensation for damages has been paid, the republic's chief lawyer said.

The Eurofighter purchase was subject to controversy in Austria and became a political football for some time. As of 2017, possible corruption affairs surrounding the Eurofighter procurement were still being investigated by the Austrian parliament.

Frequently asked questions

Austria is upset with the Eurofighter builders due to the high costs associated with the jets. The country also believes it was duped into acquiring the jets in 2003.

Austria initially signed a €2 billion contract in 2003 to receive 18 EADS Eurofighter jets. However, the order was later reduced to 15 jets in 2007, with the final aircraft delivered in 2009. The cost of maintaining the jets for 30 years, their normal lifespan, is estimated to be up to €5 billion.

Austria has been considering replacing the Eurofighter jets with a cheaper alternative fleet of aircraft. In 2017, the Austrian defense ministry announced plans to phase out the jets starting in 2020. However, in 2018, the new government said it would re-assess the decision to end the Eurofighter jet programme early.

Yes, Austria sued Airbus and the Eurofighter consortium, which includes Britain's BAE Systems and Italy's Leonardo, in 2017, alleging deception and fraud linked to the 2003 jet order.

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