THOUSANDS of Lancashire jobs could be safeguarded for the next two decades if BAE succeeds in winning a £7.2billion deal.

Defence bosses at arms giant, BAE Systems, moved a step closer to securing the military order from India at a special conference at the Royal International Air Tattoo show.

As fighter jets thundered past at the military show in Gloucestershire, BAE chiefs were locked in talks with Indian government officials.

The Asian country is speculating whether to place an initial order for 126 Eurofighter Typhoons, which are made by BAE Systems and European partners.

The aircraft is competing against France’s Dassault Rafale for the deal, with the result due to be announced soon.

India could be persuaded by a ‘marinised’ version of Typhoon that could land on aircraft carriers.

And that could also interest the Ministry of Defence, which has just axed its fleet of Harriers, which could land on naval vessels.

The fuselage of the Typhoon are made at BAE Samlesbury, which employs around 1,000 people on the project, and the aircraft is assembled at Warton on the Fylde.

The company also supports hundreds of jobs at supplying companies across Lancashire.

During a briefing at the show in RAF Fairford today, RAF commanders and BAE executives spoke of the Typhoon's 'advanced' and 'brilliant' capabilities.

Indian defence ministry officials were shown footage of the fighter jet on recent operations in Libya, where it was seen to 'obliterate' enemy tanks.

And newly-appointed Military Air and Information managing director, Chris Boardman, said the state-of-the-art plane was the solution to meet India’s future combat aircraft requirement.

He said: “We need to win these contracts to help us to keep jobs in the North West for the next 20 years.

“We are offering unique expertise and the best of the best when it comes to fighter jets.”

Previously, the Indian government have bought 66 Hawk jets from the arms giant and have signed a contract for a further 66 planes.

Martin Wright, of the Nelson-based North West Aerospace Alliance, said: “Any order for Typhoon eventually washes into the supply chain.

“But it is a competition and it isn’t over yet.

“From a supply point of view it would be very important though.”