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July 13, 2016 / 1:47 PM / Updated July 14, 2016 at 11:34 AM

BAE, U.K. reach $2.7 billion deal to support Typhoon fighter

Ten-year partnership will seek cost-cutting measures in jet fleet maintenance.

BAE Systems announced a $2.7 billion, 10-year partnership Wednesday with the U.K. Ministry of Defense to support the Typhoon fleet. Photo courtesy BAE

BAE Systems announced a $2.7 billion, 10-year partnership Wednesday with the U.K. Ministry of Defense to support the Typhoon fleet. Photo courtesy BAE

LONDON, July 13 (UPI) -- BAE Systems announced a 10-year partnership Wednesday with the U.K. Ministry of Defense to support the Typhoon fleet.

The deal is expected to be worth $2.7 billion and signed soon.

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Working with the Royal Air Force and Leonardo-Finmeccanica, the partnership will seek ways to further reduce fleet operating costs by more than a third at RAFs Coningsby and Lossiemouth, BAE said in a statement.

BAE said the deal could see savings of more than $658 million that would be reinvested to develop new aircraft capabilities.

The deal will combine supplier contracts from across Europe into a single program, BAE said.

Combining support arrangements into one program will help increase reliability and availability of the fleet, while making support more affordable, BAE said.

CORRECTION: An earlier version of this story incorrectly named Raytheon as the corporate partner. It is BAE Systems.

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