EADS to ask Germany to order Talarion drones

FRANKFURT, Nov 2 (Reuters) – EADS is prepared to waive penalties for a cut to orders for the Eurofighter jet if Germany promises to order Talarion drones instead, a person familiar with the matter said.

“That is a possible outcome of the upcoming negotiations,” the person told Reuters on Wednesday.

German daily Financial Times Deutschland earlier cited two people familiar with the matter as saying that Stefan Zoller, head of EADS’ defense and security unit Cassidian, will propose such a deal to German Defence Minister Thomas de Maiziere.

According to an internal document obtained by Reuters last month, Maiziere plans deep cuts to Germany’s military orders as part of sweeping reforms to the Bundeswehr — its armed forces — including a reduction in Eurofighter orders.

The note detailed plans to cut by 37 to 140 the order for Eurofigher aircraft, to reduce an order for Puma tanks to 350 from 410 and to slash an order for Tiger combat helicopters to 40 from 80. De Maiziere also wants to reduce the number of NH-90 helicopters to 80 from 120.

A spokesman for Cassidian declined to comment on the matter.

“The defense ministry will talk to us from November about how the planned spending cuts can be balanced,” he said.

Cassidian sees the defense cuts putting at risk its main plant in the southern German town of Manching, which has 4,000 employees. Some 220 maintenance workers there have already been on shortened working hours since September, the spokesman said.

EADS has spent years developing the Talarion unmanned aerial vehicle at its own expense in the hope of winning an order from the project’s instigators France, Germany and Spain.

However, France’s Dassault Aviation and Britain’s BAE Systems have stepped up plans for their own drone under a Franco-British defense pact signed last year, provoking anger and frustration from EADS.