* Austria accuses Airbus of wilful deception, fraud
* Relates to 2 bln euro order for Eurofighter jets
* Airbus says denies accusations vigorously
* Austria sees potential damages of up to 1.1 bln euros (Adds Airbus statement, details from press conference)
By Kirsti Knolle and Alexandra Schwarz-Goerlich
VIENNA, Feb 16 (Reuters) - Austria sued Airbus andthe Eurofighter consortium on Thursday, alleging wilfuldeception and fraud linked to a near 2 billion euro ($2.1billion) jet order in 2003.
The defence ministry said that following an investigation itbelieved Airbus and Eurofighter had misled Austria about thepurchase price, deliverability and equipment of the jets.
The incurred damage could amount to 1.1 billion euros,Defence Minister Hans Peter Doskozil told a news conference inVienna.
Airbus said it denied the accusations vigorously. "Thepublication of criminal charges against a listed company bymeans of a press conference ... is not acceptable for Airbus andcan only be described as unprofessional," said a spokesman.
Eurofighter did not reply to requests for comment.
Austrian and German prosecutors have been investigating thecase for years and Munich prosecutors have said they expect tocomplete separate preliminary proceedings by mid-year.
"As defence minister, I consider it my duty to report factsrelevant for criminal prosecution and to claim compensation forthe Austrian taxpayers' damage. This is what we did today,"Doskozil said.
Austria had initially ordered 18 Eurofighter jets butreduced the order to 15 in 2007. It then ordered a review of thepurchase four years ago following bribery allegations.
The deal was controversial from the outset and allegationssurfaced almost immediately that money was pocketed bypoliticians, civil servants and others via brokers for sidedeals accompanying the purchase.
ILLEGAL CHARGES
The defence ministry said it had found Airbus and theconsortium illegally charged nearly 10 percent of the purchaseprice of 1.96 billion euros for so-called offset deals.
While such deals, which involve work being given to localcompanies, were part of the agreement, their cost should havebeen reported separately, it said in a report.
"Offset deals are obviously an ideal launcher forcorruption, misery and money laundering," Doskozil said.
The Eurofighter is built by a consortium comprisingBritain's BAE Systems and Italy's Leonardo aswell as Airbus, which represents the other two nations in theEuropean project: Germany and Spain.
BAE and Leonardo did not reply to requests for comment.
Airbus and Eurofighter, which coordinates the production ofthe aircraft and is headquartered in Munich, also deceivedAustria about its ability and desire to deliver the planes, thereport said, because the deal was not economic for theplanemakers.
Wolfgang Peschorn, president of the legal advisor of theAustrian Republic, said the incurred damages of up to 1.1billion euros related to extra costs paid for the Eurofighterscompared with jets from rival bidder SAAB, as well ashigher operating expenses.
A special committee will examine options for future jetpurchases, the defence minister said. The aim was to buy jetsmore cheaply, though Doskozil did not rule out buying newEurofighters.
Airbus, Europe's largest aerospace group, has said it isco-operating with a separate German probe into the fighter saleto Austria, as well as three probes into suspectedirregularities in defence or security markets, including a UKinvestigation into a $3.3 billion communications deal with SaudiArabia.
($1 = 0.9400 euros) (Additional reporting by Tim Hepher in Paris and ShadiaNasralla in Vienna; Editing by David Holmes and Mark Potter)
-1x Boeing (BAES)