BAE Systems has said up to 1,000 new staff could be recruited to help deal with its rising workload.
The Saudi jet deal is the first one agreed outside the EU
The group has had to take on an extra 300 staff after landing a £6bn deal to supply 72 Eurofighter Typhoon jets to Saudi Arabia.
Before winning the contract, BAE had expected to take on 650 specialist staff to deal with its current work.
BAE plans to employ the new staff at its Lancashire plants in Warton and Samlesbury by 2007.
The new posts will be specialist ones covering areas including avionics, structural engineers, software engineers and overall business management.
Some of the recruits are expected to come through the company's graduate training schemes but most will be skilled and experienced aerospace engineers.
The contract for the planes, brokered between the Saudi government and the Ministry of Defence, was agreed last month.
The Saudi deal is the first confirmed order for the Eurofighter to come from outside the European Union.
Inside Europe, the plane has been ordered by the UK, Germany, Spain, Italy and Austria.