The Strategist

Eurofighter accused in price manipulation

02/16/2017 - 14:45

Austrian authorities have filed a lawsuit against corporation Airbus and its subsidiary Eurofighter, accusing them of manipulating prices on fighters. Ministry of Defense of Austria ordered Eurofighter aircraft back in 2002. According to the ministry’s representatives, Airbus misled them about price for fighters, their equipment and supply conditions. The Ministry of Defence’s related damage has been valued at € 1,1 Bln.

Austrian Ministry of Defense accused European aircraft manufacturer Airbus in "fraudulent practices" and filed a lawsuit against the company. There was contract between the Ministry of Defence and Airbus in 2003, according to which Eurofighter was obliged to supply Austria with fighter jets worth € 2 billion in total. The Ministry of Defense accused the corporation in misinforming about price of the fighters. According to a statement released by the ministry, it has already filed a lawsuit to the prosecutor's office in Vienna on Airbus (then EADS) and Eurofighter company, 46% of which is owned by Airbus.

Minister of Defense and Sport of Austria Hans Peter Doskozil stated on Thursday that Austria’s losses in connection with this contract reached € 1,1 Bln. Initially, Austria had ordered 18 Eurofighter fighter jets, but in 2007 the order was reduced to 15 units. According to the Defense Ministry, the fighter jet’s price was overstated by € 183.4 mln. The company is also about suspected in barbering officials, who were involved in the contract.

"In its appeal, the Ministry takes a premise the fact that both companies have been fraudulently misleading Austria since 2002 both on the true price, and about their ability to ensure supply of interceptor jets Eurofighter and its equipment," - said the Ministry of Defence. According to the statement, if the Ministry had not been misled, it would have purchased other jets. Investigation of the case began in 2012. Then, the Ministry established the Special Committee Eurofighter, who in February introduced results of the investigation. 


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