By Brenda Goh
WARTON, England, June 11 (Reuters) - Sales of combataircraft in the Middle East and Asia will more than compensatefor cutbacks in U.S. and European spending, Britain's BAESystems forecast on Tuesday.
Europe's largest defence contractor said internationalmarkets outside its U.S. and European heartlands would grow toaccount for around half of turnover at its military air andinformation unit by 2016, up from around a quarter now.
"This is a prudent view," Peter Anstiss, the division'sbusiness development director, said at a briefing on Tuesday inWarton, northwest England.
"Very clearly, the international market could more thancompensate for the reductions in the U.S. and UK market,"Anstiss said.
The overseas market was worth about 90 billion pounds ($140billion), with potential sales of 900 combat jets, through to2020, he added.
BAE's aircraft include the four nation-backed EurofighterTyphoon, which it is developing in a consortium with Europeanaerospace group EADS and Italy's Finmeccanica.
The military air and information unit falls under BAE'sPlatforms & Services (UK) arm, which contributed the most to itsrevenue in 2012. Overseas sales are one of BAE's top prioritiesto boost growth after its attempt to merge with Airbus-ownerEADS failed last year and as Washington and European governmentsrein in defence spending.
Saudi Arabia and Oman have so far signed up to buy Typhoonjets and the plane is also vying for deals in countries such asMalaysia, South Korea and the United Arab Emirates.
South Korea is likely to decide in the next two months whichaircraft it will choose when it places an order for 36 jets,Anstiss said. The Typhoon is competing against Boeing's F-15 and Lockheed Martin's F-35 fighter jet.
Countries in the Gulf region have the potential to purchase150 more Typhoon jets, Anstiss said, adding that this figureexcluded Saudi Arabia's order for 72 Typhoons and Oman's 12Typhoon aircraft.
In India, where the company lost a competition to supply thecountry with 126 fighters to Dassault Aviation's Rafale aircraft, BAE is waiting on the sidelines to jump back inshould the talks fall through, he said.
A decision from the Indian government with regards to asigned deal with Dassault could come before the second quarterof next year when the country holds elections, he said.
Countries that want to buy combat jets are also looking toinvest in training aircraft, said Steve Timms, BAE's head ofdefence information, training and services. Saudi Arabia andOman have ordered the company's Hawk trainer.
India, for instance, which operates one of the world'slargest Hawk fleets, could place two more orders, he said. Thecountry has so far ordered 123 jets and is in talks to buy 20more.
BAE is also bidding jointly with American firms NorthropGrumman and L-3 for a key deal to provide the UnitedStates with 350 Hawks. The U.S. government is expected to make abudget decision over the so-called T-X programme in 2015, Timmssaid.
