Five questions answered on the BAE Systems and Oman contract

BAE wins a deal.

British aerospace company BAE Systems has won a substantial fighter-jet contract with the Sultanate of Oman. We answer five questions on BAE’s Oman contract.

What is the contract for?

Europe’s largest defence contractor BAE Systems has signed a contract with the Sultanate of Oman to supply 12 Typhoon fighter jets and eight Hawk Advanced Jet Trainer aircraft, as well as in-service support. Manufacturing will begin in 2014 with delivery expected in 2017.

How much is the contract worth?

The contract is worth a staggering £2.5 billion.

What does this contract mean in the long term for BAE Systems?

Earlier in the year BAE Systems seemed to be struggling after it failed to close a merger deal with European defence company EADS. Other blows to the company include the US defense budget, where it derives 40 per cent of its earnings, being cut by $600bn (£369bn) and this week the news that it’s contract with Saudi Arabia  for 72 Typhoon fighters has been delayed because of disagreements over the final contract price.

This latest deal will provide a much needed boost to the company and help safeguard 6,000 high-technology and engineering jobs across sites at Warton and Samlesbury in Lancashire, and at Brough in East Yorkshire.

What has BAE Systems said about the deal?

BAE said in statement: "This contract is further recognition that both Typhoon and Hawk are leading aircraft in their class."

What are other people saying about the contract?

According to the BBC Prime Minister David Cameron welcomed the deal, saying:

"It's testament to Britain's leading aerospace industry and the deal will safeguard thousands of jobs across the UK, not just at the BAE Systems factories in Lancashire and East Riding in Yorkshire, but at many more small businesses up and down the country that play a vital role in delivering these aircraft.”

BAE Systems has won a substantial fighter-jet contract with the Sultanate of Oman. Photograph: Getty Images

Heidi Vella is a features writer for

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Commons Confidential: Fearing the Wigan warrior

An electoral clash, select committee elections as speed dating, and Ed Miliband’s political convalescence.

Members of Labour’s disconsolate majority, sitting in tight knots in the tearoom as the MP with the best maths skills calculates who will survive and who will die, based on the latest bad poll, observe that Jeremy Corbyn has never been so loyal to the party leadership. The past 13 months, one told me, have been the Islington rebel’s longest spell without voting against Labour. The MP was contradicted by a colleague who argued that, in voting against Trident renewal, Corbyn had defied party policy. There is Labour chatter that an early general election would be a mercy killing if it put the party out of its misery and removed Corbyn next year. In 2020, it is judged, defeat will be inevitable.

The next London mayoral contest is scheduled for the same date as a 2020 election: 7 May. Sadiq Khan’s people whisper that when they mentioned the clash to ministers, they were assured it won’t happen. They are uncertain whether this indicates that the mayoral contest will be moved, or that there will be an early general election. Intriguing.

An unguarded retort from the peer Jim O’Neill seems to confirm that a dispute over the so-called Northern Powerhouse triggered his walkout from the Treasury last month. O’Neill, a fanboy of George Osborne and a former Goldman Sachs chief economist, gave no reason when he quit Theresa May’s government and resigned the Tory whip in the Lords. He joined the dots publicly when the Resolution Foundation’s director, Torsten Bell, queried the northern project. “Are you related to the PM?” shot back the Mancunian O’Neill. It’s the way he tells ’em.

Talk has quietened in Westminster Labour ranks of a formal challenge to Corbyn since this year’s attempt backfired, but the Tories fear Lisa Nandy, should the leader fall under a solar-powered ecotruck selling recycled organic knitwear.

The Wigan warrior is enjoying favourable reviews for her forensic examination of the troubled inquiry into historic child sex abuse. After Nandy put May on the spot, the Tory three-piece suit Alec Shelbrooke was overheard muttering: “I hope she never runs for leader.” Anna Soubry and Nicky Morgan, the Thelma and Louise of Tory opposition to Mayhem, were observed nodding in agreement.

Select committee elections are like speed dating. “Who are you?” inquired Labour’s Kevan Jones (Granite Central)of a stranger seeking his vote. She explained that she was Victoria Borwick, the Tory MP for Kensington, but that didn’t help. “This is the first time you’ve spoken to me,” Jones continued, “so the answer’s no.” The aloof Borwick lost, by the way.

Ed Miliband is joining Labour’s relaunched Tribune Group of MPs to continue his political convalescence. Next stop: the shadow cabinet?

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 27 October 2016 issue of the New Statesman, American Rage