According to a global consulting company PriceWaterhouseCoopers (PWC), the Eurofighter fighter jet contributes nearly €1.7 billion to the Spanish GDP. This impressively equates to a demand for 700 jobs in a year.
Most recipients of the Eurofighter are located in Madrid, Basque Country, Castilla la Mancha, and Andalusia.
This means that until 2026, the Eurofighter program will create 26,000 in the Kingdom, written on PWC’s economic impact of the ‘Halcon’ and ‘Quadriga’ contracts for Spain.
The Halcon and Quadriga deals
PWC’s study was backed and funded by Airbus. ITP Aero gathered intelligence and technical support but the report has been independently written by PWC for a period of 6 months until March 2023.
The Eurofighter lifecycle – (1). the manufacturing phase (2020-2030), and (2) the Maintenance Phase (2023-2060) of the wider Spanish procurement of the Eurofighter represents significant job opportunity.
According to the report, the “Halcon and Quadria” programs, will generate on average 657 direct, indirect and induced positions per year.
This means that by 2060, at least a total of 26,000 positions will be created. In total, this means that this will create at least 2.7% of direct jobs in the Spanish aviation sector.
This makes the Halcon and the Quadriga deals a lucrative investment for the integrity of the Spanish economy.
The Eurofighter Tranche 4 will be procured and is expected to give back €1.7 billion to the Spanish economy.
The maintenance and manufacturing of the Halcon contracts will generate approximately €1.5 billion and the remaining €200 million will be made up of the production of the Quadriga contract.
Moreover, not only employment and Eurofighter’s direct economic contribution to the Spanish economy will also generate a total tax collection of €430 million.
€151 million which will be a direct contribution, boosting the fiscal performance of the Spanish treasury. In addition, for every euro being directly earnt, €2.8 of total tax revenue will be injected into the Spanish economy.
The contract was inked in June 2022, where the Halcon contract comprises the purchase of 20 next-generation Eurofighter typhoons to replace the outgoing F-18 fleet. The F-18 squadron is currently operated on the Canary Islands by the Spanish Air Force.
The Quadriga, signed in 2020, will deliver 38 new Eurofighter for the German Air Force (Luftwaffe). Germany is one of the largest defense contributors in the continent, making the order one of the continent’s largest defense projects.
The Spanish Eurofighter fleet will grow to 90 aircraft under the Halcon program. The first delivery is due for delivery in 2026, with extra additional activity through 2030.
The Quadriga, on the other hand, will secure the manufacture of Eurofighter’s latest Tranche 4, which will be the most modern indigenous European aircraft ever built.
The Tranche 4 aircraft has a service life beyond 2060. Both of the programs will contribute to Spain’s economy and the strengthen European defense realm.
All in all, the fighter jet program produces more than 100,00 jobs in the continent, which will be further enhanced by the latest Tranche 4 upgrade.