London, July 12: British government will next week announce it is awarding a mutli-billion-pound contract for 30 hawk trainer jets to aeronautics and defence company BAE systems, saving up to 2,000 jobs at the group's brought plant in east Yorkshire. BAE Systems has won the contract over Italian company Aermacchi M346, a media report said. Quoting senior industry and government sources, 'The Guardian' today reported that subject to last minute haggling over price, BAE would supply the planes to train pilots for the new generation of typhoon and F-35 fighters.

The path to a deal has been eased by the treasury's decision to abandon a planned private finance initiative option for leasing the aircraft.

Senior RAF officials said they wanted the plane and the advance cockpit, now an integral part of the original mode, rather than an untried Italian rival, the Aermacchi M346.
BAE hopes the cabinet decision will help trigger export orders for up to 500 jets.

Bureau Report