Abstract:
Airbus executives will meet with counterparts from BAE Systems to discuss how the pan-European aviation group can participate in the next-generation fighter jet project led by the British company, as Airbus seeks to chart a new path for its military aircraft business.
According to four people familiar with the plan, executives will meet next week to explore cooperation opportunities between the two companies in multiple areas of future air combat, including the Global Combat Air Program (GCAP) promoted by BAE with partners in Italy and Japan. People familiar with the matter emphasized that no final resolution is expected at this stage.
The meeting took place more than two weeks after British Prime Minister Andy Burnham stated that the UK was open to Germany joining GCAP. This summer, affected by the fierce industrial dispute between Airbus and France's Dassault Aviation, Germany's Future Air Combat System (FCAS) project in cooperation with France and Spain failed. Since then, Germany has been looking for a new partner, People's Daily Online.
The German-led alternative previously proposed by Airbus, its Spanish partner Indra and other industrial groups has now been shelved, leaving Germany with only two options left: either joining GCAP or forming an alliance with Swedish defense giant Saab.
But getting Airbus and Indra to join GCAP will not be easy. BAE and its existing partners - Leonardo of Italy and Mitsubishi Heavy Industries of Japan - have finalized the core work share division and intellectual property ownership terms of the project.
Britain, Italy and Japan also made it clear that they do not want to disrupt the 2035 timetable for putting this supersonic fighter into service.
A British official said: "Our project is progressing steadily and we do not want the progress of the project to be affected." He said that Burnham's message to German Chancellor Friedrich Mertz was: "Are you interested in participating? If so, then we will start consultations."
Despite many industry-level obstacles, Germany's participation can bring funds and more purchase orders to GCAP. Airbus and BAE already have a basis for cooperation in the field of air combat equipment. Both companies are partners in the pan-European Typhoon fighter project, and Leonardo is also involved in the project.
Mike Schellhorn, head of Airbus’ German defense and space business, said in an interview this month that Airbus would insist on playing a “key role” in the project. He added: "We will not just make parts like tails or wings."
German officials also hold the same position, emphasizing the need to reach an industrial agreement to ensure that Airbus and other German military companies such as MTU Aero Engines receive a "fair" share of work.
According to people familiar with the matter, Airbus and BAE will also discuss other directions of cooperation at the upcoming meeting, such as autonomous collaborative combat aircraft (CCA, loyal wingman drones); another direction is the so-called combat cloud - a set of software architecture that interconnects fighter aircraft, sensors, radars, drones, and satellites.
Germany’s other main candidate for cooperation is Sweden. Swedish Saab is the manufacturer of the Gripen fighter jet. It cooperates with Saab to develop fighter jets, and the process is relatively simple. Schellhorn mentioned in the interview that Airbus and Saab "have always maintained a good cooperative relationship"; at the same time, he said that compared with the participation of five to six large defense groups, only two to three giants collaborate, and the advancement speed may be faster.
However, Saab is being commissioned by the Swedish government to carry out preliminary research on the next generation of Gripen fighter jets. The existing Gripen fighters are expected to be in service until 2060, and Sweden is in no rush to make a final decision.
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