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What happens if the Eurofighter fails?
Short answer
The Eurofighter Typhoon is designed so no single failure can bring it down: it has two EJ200 engines, quadruple fly-by-wire controls and duplicated systems. If one engine stops, it returns on the other; if the computers degrade, a basic control mode remains; and if the aircraft is unrecoverable, the Martin-Baker Mk16A ejection seat works at zero speed and altitude.

Redundancy: a single failure won't bring the aircraft down
A modern fighter is designed assuming something will fail. The Eurofighter Typhoon carries two Eurojet EJ200 engines; if one shuts down, the other is enough to return to base, albeit with less acceleration and a lower ceiling. The flight controls are fully fly-by-wire, with four independent computer channels that monitor each other: if one produces a different result, the others exclude it and the pilot barely notices. The hydraulic and electrical circuits are also duplicated.
The aircraft is aerodynamically unstable to gain agility, so without computers it would not be controllable. That's why, if the main channels degrade, a reversionary control mode exists with simplified laws that allows the pilot to maintain flight and land with limitations.
When the aircraft can't be saved
If the situation is unrecoverable, the Martin-Baker Mk16A ejection seat gets the pilot out in under a second. It is certified for zero speed and zero altitude, meaning it works even with the aircraft stationary on the runway. The seat itself stabilizes the trajectory and deploys the parachute without pilot input. In recorded Typhoon accidents involving ejection, most pilots have survived.
Failures affecting the whole fleet
There's another sense to this question: what happens when a defect appears in many aircraft at once. In that case operators order a fleet grounding until the cause is identified, as has happened with ejection seats or specific components. Since the Typhoon shares quick reaction alert duties with other platforms across several countries, those periods are covered by unaffected aircraft or by other types of fighters, and the consortium issues maintenance bulletins to fix the problem across every airframe.
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