BA. Bae Systems Plc

   By Robert Wall 
 

FARNBOROUGH, England--BAE Systems PLC (BA.LN) Chief Executive Charles Woodburn said Tuesday that the company would co-finance Britain's drive to design a new combat plane and remain open to potential cooperation with other countries.

The British government used the Farnborough Air Show on Monday to launch its drive to develop a new combat plane to replace its Typhoon combat jets after 2030. It has pledged around 2 billion pounds ($2.65 billion) toward the effort.

"Industry has shown willing and pledged commitment of substantial funding towards the program," Mr. Woodburn told reporters, without giving a figure.

The program would be open to other countries, he said, potentially before 2020.

Earlier this year, France and Germany agreed to jointly work on their own combat plane, raising the prospect of competing projects in the future. Airbus SE (AIR.FR) and Dassault Aviation SA (AM.FR) are the principal plane makers involved in that project. Airbus Chief Executive Tom Enders has said he would welcome an alignment of the Franco-German project with Britain's.

"Both programs are still early days of a multiyear program," Mr. Woodburn said, and that "we keep an open mind."

BAE has enjoyed a string of recent deal wins. The Pentagon said it would buy a new amphibious assault vehicle for the U.S. Marine Corp. from BAE Systems in a deal valued at up to $1.2 billion. Australia has agreed to buy the company's Type 26 warship design in a $26 billion deal. The Australia deal could double BAE's business there, Mr. Woodburn said.

BAE has also made progress with its combat aircraft sales efforts. Saudi Arabia has agreed to buy more of the Eurofighter Typhoon combat planes that BAE builds with Airbus and Italy's Leonardo Spa (LDO.MI), and Qatar has also agreed to buy the jet. Those deals still need to be finalized, Mr. Woodburn said.

Opportunities now are also increasing for sales into Europe, with Spain and German considering topup buys, Mr. Woodburn said.

Write to Robert Wall at robert.wall@wsj.com

(END) Dow Jones Newswires

July 17, 2018 07:03 ET (11:03 GMT)

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