The Eurofighter Scandal in Austria

Michel Van

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According Austrian Kronen Newspaper and German News Magazin STERN

Has Austrian Ministry of Defence sued "Airbus Defence and Space GmbH" and the "Eurofighter Jagdflugzeug GmbH"
There demands 1.1 billion Euros and the return 15 Jets back to Manufacture !
based on ""Malicious and fraudulent acts of deception"" and
Airbus paying Bribes in the amount of 183 million euro to austrian politicians

The Austrian Airforce complain over Eurofighter
about extrem high maintenance costs and unreliably of this Aircraft

like Airbus demand for ONE self-locking Nut 29019 euro PER PIECE !
also for 9 cm ø rubber seals the demand 14554 Euro PER PIECE
for German Airforce AIRBUS billed for 110 Washers 4 cm ø for 123757 Euro.
After Massive complains Airbus reduce the price, like to 5500 euro for the washers.

the Minister of Army Hans Peter Doskozil
issue a study to replace the Eurofighter by more low-cost and more reliable Aircraft

Eurofighter GmbH already issue responsibilities do "error in edit the bills"
Airbus point out that Contract the Austrian had sign exclude the "sale or return"


the Story in english
http://uk.reuters.com/article/uk-austria-airbus-group-idUKKBN15V0EO

Original source the Austrian Kronen Zeitung
http://www.krone.at/oesterreich/eurofighter-auch-staatsanwaltschaft-ermittelt-verdacht-bestaetigt-story-555662

http://www.krone.at/oesterreich/wie-frech-die-firma-eurofighter-abkassierte-geheimakten-zeigen-story-555977

German edition by STERN
http://www.stern.de/digital/technik/eurofighter-streit--nach-bestechungen-hat-oesterreich-genug-7347298.html
 
Michel Van said:
According Austrian Kronen Newspaper and German News Magazin STERN

Has Austrian Ministry of Defence sued "Airbus Defence and Space GmbH" and the "Eurofighter Jagdflugzeug GmbH"
There demands 1.1 billion Euros and the return 15 Jets back to Manufacture !
based on ""Malicious and fraudulent acts of deception"" and
Airbus paying Bribes in the amount of 183 million euro to austrian politicians

The Austrian Airforce complain over Eurofighter
about extrem high maintenance costs and unreliably of this Aircraft

...

the Story in english
http://uk.reuters.com/article/uk-austria-airbus-group-idUKKBN15V0EO

I read the "english" story. Re: the quote...
"
"Offset deals are obviously an ideal launcher for corruption, misery and money laundering," Doskozil said.
"
this hasn't been proven, correct?
 
NeilChapman said:
this hasn't been proven, correct?

The Austrian Ministry of Justice had only one comment on that: "It's under investigation, so no information for public"
in mean time the Opposition is screaming "murder and mayhem" about this. they had sign the Airbus contract as ruling government party.

i remember that german News Magazine DER SPIEGEL
had last year a article about extrem cost for simple spare parts for Germans Eurofighter (the 110 Washers for 123757 Euro)
(i not find the link)
Also were the 2016 Bundestag report about condition of Bundeswehr
it also criticize the extrem maintenance cost and constant breakdown of Eurofighter.
Labeling indirect the Jet fighter as unusable for combat.
 
The last appears to be a very German problem? As JFC Fuller says, it's not something which you read about from the other partners and the German Typhoon is far more restricted than the RAF for example.

It is also very hard to grasp the full extent of the problem when such partisan reporting is in play. I remember the press hammering Typhoon before it entered service in the UK -"Cold War relic" etc.
 
Interesting note, mrmalaya and JFC Fuller

Has the RAF no problems with Eurofighter ?
I hear on regular basis in the news, that German, Austrian and Spain have "issue" with there Eurofighter

It could be a "cultural issue" with there Air-forces ?
Like the German Luftwaffe is notorious for there shoe-string-Budget

But some of Issue with Typhoon is also Airbus produce problems:
-ejection seat wrongly installed rockets motors.
-production error on German Eurofighter, they have to fly with G-foce restriction, other wise there empennage rip off
 
Looking at those prices, it must be about worth someone's life if they lose any parts to this aircraft at all...
 
Airbus is a highly successful company who knows how to support a global supply chain for its products so surely they would have the expertise and control of part supplier costs to avoid these major issues. Therefore, I think the root of the problem is probably the reliance on separate fighurehead consortiums above the manufacturers which has added an unnecessary layer of bureaucracy and which are the offical prime contractors for design and development, production and logistic support.
NHIndustries was created as the prime contractor to work to the NATO Helicopter Management Agency and Eurofighter Jagdflugzeug GmbH works for the NATO Eurofighter and Tornado Management Agency.

Interestingly, PANAVIA and the NATO Multirole Combat Aircraft Development and Production Management Agency seemed to work well (as did SEPECAT, which was more of a joint venture), but perhaps that late 1960s management model should have been abandoned as we entered a more globalised economy? Airbus is wholly responsible for the A400M and Tiger and therefore have to take their fair share of the blame but I guess with Eurofighter (and NHI 90) there is less accountability, they can simply blame Eurofighter Jagdflugzeug GmbH and vice versa.

It is interesting though that the RAF haven't had these problems, I would have thought the same logistics agreement covers all the operators so unless Britain got a discount then maybe we're paying these crazy prices too but nobody has bothered to make a fuss yet (maybe we're too used to being ripped off in such deals?).

If the German-assembled Eurofighters have quality control issues then that is a obviously down to poor assembly by Airbus, which again is surprising since they manage to build thousands of airliners reliably enough so it can't be due to lack of expertise. I get the feeling Airbus just doesn't fundamentally understand the military market and that therefore it will never be a big player in this field, no wonder Eurofighter exports have been so low, discerning potential buyers have probably looked at the small print and understandably thought the support was too expensive.

As to allegations of bribery, what's new? Airbus would join Leonardo and Rolls-Royce as alleged bribers and has there ever been a major defence contract that hasn't had rumours of bribery or dodgy handling attached to it (Poland's helicopter competition being one the latest)? I'm sure US companies indulge in it just as much but are obviously more canny about how they hide it/ do it.
 
JFC Fuller said:
Airbus Defence and Airbus commercial are very different creatures.

Exactly

Airbus Group SE is build up:

Airbus SAS
Commercial airliner production.

Airbus Helicopter
Build civilian and military Helicopters

Airbus Defence and Space
build Tankers (modified A330 from Airbus commercial)
and military aircraft, Ariane rocket and many european space craft
with two trouble project: Eurofighter Typhoon and A400M Atlas

So i guess there could be Management and control problems
Airbus Group SE Headquarter is in Leiden, Netherlands, while the main office is in Blagnac, France.
Airbus Defence and Space Headquarter is in Toulouse, France.
They have overlook and manage around THIRTY factory distributed over four European countries and one in South Africa.
this could explain some of problems...
 
Michel Van said:
Airbus Group SE Headquarter is in Leiden, Netherlands, while the main office is in Blagnac, France.
Airbus Defence and Space Headquarter is in Toulouse, France.
The Leiden office is a tax dodge, day to day control of the company is from France.
 
News update

The Austrian Government announced Friday, the retirement of there 15 Eurofighter
From 2020 on the fighter plane will be replaced gradually by a new aircraft.
This will save Austrian tax payer up to 2 billion Euros/year
Next extrem maintenance cost of Eurofighter, is also problem in lack of readiness on 24/24 hours.

since february run a investigations by German and Austrian ministry of justice
against Airbus Defence and Space, the accusation:

-Suspicion of malicious and deceptive deception in Eurofighter deal for Germany and Austria
-Suspicion of corruption and defraud in Eurofighter deal for Austria.

The Austrian prosecutor accused Airbus-boss Thomas Enders of fraud in this case
and demand of Airbus Defence and Space for 1.1 billon euro damages.

Source in german language:
http://www.spiegel.de/wirtschaft/soziales/oesterreich-mustert-eurofighter-aus-a-1156568.html

http://www.spiegel.de/wirtschaft/unternehmen/airbus-oesterreich-erstattet-anzeige-wegen-betrugsverdacht-bei-eurofighter-kauf-a-1134819.html

http://www.spiegel.de/wirtschaft/unternehmen/thomas-enders-wiener-staatsanwaltschaft-ermittelt-offenbar-wegen-betrugsverdachts-a-1144963.html

http://www.spiegel.de/spiegel/print/d-127626364.html
 
If they are looking for a replacement that makes more sense they should look at the KAI T-50 family. This would give them both a trainer and a light fighter/attack platform.
 
according News sources

the Austrian Air force wants 15 one seat fighters and 3 Trainer version with two seats
 
interesting News from Germany

Bavarian the ministry of Justice is closing the bribes case with settlement
There had been no evidence for bribes in the extremely extensive investigation, the investigating authority said:

Specifically, the prosecution questioned three-digit million in payments to two companies in the UK.
According to the Authority, these funds were largely used without any reasonable compensation for unclear purposes,
bypassing the internal controls. On the basis of the cash flows can not be determined, which purposes the payments ultimately served.
Airbus must therefore pay 81.25 million euros for a negligent breach of duty.

the investigation on fraud on overprice spare parts for Luftwaffe continue

in mean time in Austrian are
Two parliamentary committees of inquiry dealt with the Eurofighter corruption affair.
Prosecutors in Vienna and Zurich continue to investigate.


http://www.zeit.de/wirtschaft/unternehmen/2018-02/eurofighter-affaere-airbus-staatsanwaltschaft-muenchen-bussgeld
 
Back in the late 90s I was chatting to someone from BAe sales in Vienna who said that they were helping Saab to sell Gripens to Austria as well as S Africa and Czecho. He thought as the Swedes had used Saab jets before it was a pretty sure thing.
I always wondered how they ended up with Typhoons
 
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