Leonardo expects the joint venture that will lead the development of the tri-national Global Combat Air Programme (GCAP) to be signed off by year-end.
Italy’s Leonardo is one of the three prime contractors involved in GCAP alongside BAE Systems of the UK and Japan’s Mitsubishi Heavy Industries.
Briefing analysts on Leonardo’s third-quarter results on 7 November, chief executive Roberto Cingolani said there had been an “acceleration recently” in activities by the three member states.
“We are finally entering into the hot phase of the programme,” he says, supported by a 10-year development contract.
Progress has been made by the three industrial champions, who have “found a very good agreement” making it “very likely” that they will “sign and create the JV before the end of the year”, he adds.
Key details related to the division of workshare and governance have been hammered out, he says.
“There has been a lot of hard work over the last couple of months,” he adds.
Under the terms of the agreement, the joint venture will be headquartered in the UK, with nation-specific offices in each of the three partner countries.
Cingolani says Leonardo’s work on the programme will focus on system integration, including of flight controls, weapons, and mission systems.
“We are particularly happy with this agreement,” he says. “It takes value of the technologies developed by Leonardo in a central way and opens future opportunities within the system-of-systems framework.”
GCAP is slated to deliver a sixth-generation fighter to enter service from 2035 – known as Tempest in the UK – alongside new unmanned combat assets.
Support from all three nation states seems to be staying firm, despite budget pressures: Cingolani says Rome has so far allocated €8.8 billion ($9.4 billion) for the programme.
Additionally, providing a written answer on 7 November, UK defence minister Maria Eagles said “positive progress on GCAP continues”.
“In October, the UK completed its ratification processes for the GCAP Convention, the international treaty that sets up the GCAP International Government Organisation.”
Since winning July’s general election, the ruling Labour party has launched a sweeping defence and security review, leading to speculation that GCAP could face lower levels of future investment.
