BAE Systems join forces to deliver next generation aircraft

BAE Systems, Leonardo (Italy), and Japan Aircraft Industrial Enhancement Co Ltd (JAIEC),  form a new company under a business joint venture for the Global Combat Air Programme (GCAP), subject to regulatory approvals.

The agreement builds on the strong trilateral government, defence, and industrial cooperation between the UK, Japan, and Italy on GCAP since it was established in December 2022.

The new venture will be accountable for the design, development and delivery of the next generation combat aircraft and will remain the design authority for GCAP for the life of the product, which is expected to go out beyond 2070.

BAE Systems, Leonardo, and JAIEC will each hold a 33.3 per cent shareholding in the new joint venture bringing together the combined strengths and expertise of three leading companies and marking a pivotal moment for the international aerospace and defence industry. 

Charles Woodburn, chief executive of BAE Systems, said: “Today’s agreement is a culmination of many months working together with our industry partners and is testament to the hard work of everyone involved in this strategically important programme.

“The new business will bring together the significant strengths and expertise of the companies involved to create an innovative organisation that will lead the way in developing a next generation combat air system, creating long-term, high value and skilled jobs across the partner nations for decades to come.”

Roberto Cingolani, Leonardo chief executive officer and general manager, said: “This agreement is the result of an intensive journey made possible by pooling our mutual and shared experiences. This partnership not only enhances our technological capabilities but also reinforces our commitment to global security and innovation.

“Today, we are paving the way for the development of a new era in Aircraft Systems and Multi-domain scenarios, fostering long-term sustainable growth for the economies of the involved countries.”

Kimito Nakae, president of JAIEC, said: “As we now embark upon the exciting and important journey towards the success of GCAP, I acknowledge that the way might not always be simple and straightforward.

"However, I believe that through continuing the strong spirit of trilateral cooperation and collaboration that we have fostered up to this point, we will not only deliver the GCAP on time but also at a level that exceeds all of our expectations.”

The new joint venture will have operations and joint teams working in each of the partner nations. 

It will be headquartered in the UK, to ensure maximum alignment and collaboration with the GCAP International Government Organisation (GIGO) which will also be headquartered in the UK. 

Both entities will work together to support cost-effective and timely programme delivery, including a 2035 aircraft in-service date.

GCAP is a hugely significant programme for the security and economic prosperity of each nation and, through effective knowledge and technology transfer, it will help to evolve and deliver important sovereign combat air capability in each nation for generations to come.

The joint venture is expected to be established by the middle of 2025.

BAE Systems employs more than 11,000 people in its Lancashire operations, with thousands more working in its supply chain.

Lancashire Business View recently reported BAE Systems has seen its order book grow to around £25bn this year amid a continued global rise in defence spending.

Meanwhile, a four-nation consortium behind the Eurofighter Typhoon has awarded BAE Systems a £133 million contract to further develop its Striker II Helmet Mounted-Display (HMD).

The nations involved in the consortium include Germany, Italy, Spain and the UK.