The recent defence review apparently made the decision between the two very late in the day, leading to claims that Tornado was saved over the Harrier under a more sympathetic RAF based decision.
In pure savings terms Tornado would have saved more money - maybe there is also the foreign export side, Britain pulling the plug early may have seen those contracts dry up too.
But from a strategic point of view (and this is what the review was always claiming to have on its mind) it seems a strange decision. With Euro fighter finally entering service surely a lot of the Tornado role could be covered by this aircraft.
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