Airbus is demanding in compensation from Germany for canceling an order for 37 Eurofighter jets, according to a report. (Marwan Naamani / AFP)
FRANKFURT — Airbus is demanding €900 million ($1.2 billion) in compensation from Germany for canceling an order for a batch of 37 Eurofighter jets, according to a newspaper report Monday.
The amount had emerged in a closed-door parliamentary budget meeting last week in which the scrapped fighter-jet order was also reported to lawmakers, said the Handelsblatt business daily.
Industry sources however put the Airbus compensation demand at about €800 million, said the newspaper.
None of the details has been confirmed by the companies involved or the German defence ministry, but industry sources said last week the down-scaling had long been on the cards and was not unexpected.
The Eurofighter consortium, Europe’s largest defense program, is a joint project of the Airbus Group, BAE Systems and Italian defense group Finmeccanica. It is in fierce competition with other fighter-jet makers such as Lockheed Martin, Boeing and Dassault Aviation.
National news agency DPA last week quoted unnamed government sources as saying the German defense ministry would reduce its total order for Eurofighter jets from 180 to 143.
The reduction had already been decided in late 2011 by the then defense minister Thomas de Maziere, the DPA report said.