Germany Cancelled Delivery of 37 Eurofighter Jets - Source

By Andrea Thomas

BERLIN--Germany has cancelled the delivery of 37 Eurofighter jets worth 3.5 billion euros ($4.8 billion), a parliament official told The Wall Street Journal Wednesday.

German Deputy Defense Minister Stephane Beemelmans told a meeting of the lower house of parliament's defense committee Wednesday that Germany has cancelled the final tranche of 37 jets, according to the person who attended the meeting and declined to be identified. Germany had originally ordered 180 jets.

The decision came as the ministry cited cost reasons and said there is no need for these additional jets, said the person.

The ministry cancelled the outstanding delivery on Dec. 17 with MTU Aero Engines, the German engine maker, by agreeing to pay a fine of EUR54 million.

The Eurofighter consortium includes Airbus Group NV and Italy's Finmeccanica SpA.

The defense ministry couldn't immediately be reached for comment.

A spokesman for the Defense & Space unit of Airbus Group NV, which handles the German Eurofighter contract, didn't comment immediately about changes to the German order. He said Germany now operates 107 Eurofighters and has another 36 on contract before the 37 in question. The plan had been for Germany to take 180 Eurofighters.

--Dan Michaels contributed to this report.

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