Defense & Military
Leonardo’s Strategic Aerospace Partnerships Drive Global Growth
Leonardo forms aerostructures JV with Saudi PIF, targets €24B revenue by 2029, and leads €45B GCAP fighter program. Expands defense tech with Turkish collaborations.

Leonardo’s Strategic Leap in Aerostructures
The global aerospace industry is witnessing a pivotal transformation as Leonardo moves to establish itself as a dominant force through strategic partnerships. With Boeing’s 787 production delays creating ripples across supply chains and growing demand for next-generation aircraft components, the Italian defense giant’s push to form an aerostructures joint venture couldn’t be timelier. This initiative aims to stabilize its financially turbulent division while capitalizing on emerging opportunities in military and commercial aviation.
Aerostructures – critical components like fuselages, wings, and stabilizers – represent a $68 billion market projected to grow 4.4% annually through 2032. Leonardo’s Grottaglie plant in southern Italy, responsible for Boeing 787 composite sections and ATR turboprop assemblies, has struggled with losses exceeding €129 million despite generating €571 million in 2024 revenue. The proposed joint venture signals a strategic pivot to regain competitiveness through scale and diversification.
Rebuilding a Foundation Under Pressure
Leonardo’s aerostructures division has been caught in the crossfire of Boeing’s quality control crises and pandemic-era travel slumps. While producing over 1,100 fuselage sections for the 787 program, the unit faced erratic demand as Boeing reduced Dreamliner output from 14 to 5 monthly units during peak challenges. CEO Roberto Cingolani’s blunt assessment – “We cannot wait any longer for Boeing’s recovery” – underscores the urgency behind seeking external partnerships.
The company’s five-year transformation plan targets €24 billion annual revenue by 2029, up from €17.8 billion in 2024. A key component involves separating the aerostructures business into a joint venture, allowing Leonardo to share R&D costs and access new markets. Saudi Arabia’s Public Investment Fund (PIF) emerges as the likely partner, building on January 2025 agreements for broader aerospace collaboration between Rome and Riyadh.
“This joint venture will create efficiencies and scale to allow diversification into new products and supply chain restructuring,” states Cingolani. “We’ll provide a very clear picture for the future by year-end.”
Expanding Through Strategic Alliances
Parallel to aerostructure reforms, Leonardo is forging partnerships in adjacent sectors. The March 2025 collaboration with Turkish drone manufacturer Baykar combines Leonardo’s sensor expertise with Baykar’s combat-proven UAV platforms like the TB2. While Leonardo’s Falco drones found limited export success, this venture aims to penetrate European markets hungry for affordable reconnaissance systems.
Analysts note the Baykar deal follows a pattern of European defense firms seeking technology transfers with rising Middle Eastern and Asian manufacturers. For Leonardo, it provides immediate access to Baykar’s 140,000 sq ft Istanbul production facility and a pathway to certify systems for NATO allies – a process that previously hindered standalone exports.
Defense Priorities Shape Future Growth
Europe’s heightened military spending creates new opportunities, with Leonardo forecasting up to €6 billion annual revenue growth from defense contracts. The Global Combat Air Programme (GCAP) – a UK-Italy-Japan sixth-generation fighter project – expects 350 orders by 2035, representing a potential €45 billion program value at estimated $130 million per unit.
GCAP’s Production Pipeline
As prime contractor for GCAP’s avionics and mission systems, Leonardo is positioning its Pomigliano d’Arco plant to become a neural hub. The facility already produces ATR turboprop components and Boeing 787 sections, but would require substantial upgrades to handle stealth-composite manufacturing for next-gen fighters. Italian defense officials confirm plans to allocate 20% of their €32 billion military modernization budget toward GCAP infrastructure.
Challenges remain in aligning three nations’ production timelines. Japan seeks initial operational capability by 2035, while Britain aims for 2040 deployments. Leonardo’s ability to coordinate with BAE Systems and Mitsubishi Heavy Industries will be critical, particularly in developing common maintenance frameworks across potential export customers like Saudi Arabia and Qatar.
Conclusion: Navigating a Shifting Aerospace Landscape
Leonardo’s dual focus on aerostructures restructuring and defense expansion reflects broader industry trends. Commercial aviation suppliers face pressure to diversify beyond Boeing/Airbus dependencies, while military contractors must adapt to Europe’s collective security awakening post-Ukraine. The Saudi joint venture could become a template for Western manufacturers seeking capital infusion without full technology transfer.
Looking ahead, success hinges on executing the GCAP timeline while stabilizing aerostructures through new contracts. Potential growth areas include the COMAC C929 widebody program and Airbus’ next-gen narrowbody studies. As Cingolani notes, “The combination of industrial partnerships and defense tailwinds positions us to lead in both traditional and emerging aerospace sectors.”
FAQ
Why is Leonardo forming an aerostructures joint venture?
The division has faced persistent losses due to Boeing’s production volatility and needs external investment to modernize facilities and diversify products.
Who is Leonardo partnering with for the joint venture?
While unconfirmed, multiple reports indicate Saudi Arabia’s Public Investment Fund (PIF) as the likely collaborator.
How will this affect the global aerostructures market?
The venture could challenge established players like Spirit AeroSystems by combining Leonardo’s composite expertise with Saudi Arabia’s manufacturing ambitions.
What is the significance of 350 GCAP fighter orders?
This represents the first official sales projection for the sixth-gen fighter, suggesting confidence in export demand beyond the three partner nations.
Sources: FlightGlobal, Coherent Market Insights
Defense & Military
GEK800 Turbofan First Ignition Milestone for JASSM Program
GE Aerospace and Kratos successfully ignited the GEK800 turbofan Serial Number 1 on Sept. 21, 2026, under a USAF JASSM EMD contract.

GE Aerospace and Kratos Defense & Security Solutions successfully ignited the first serial number of the GEK800 turbofan cruise missile propulsion system on September 21, 2026, at the Kratos X-58 test facility in San Diego, California. The milestone initiates a new testing campaign for the engine, which recently secured a United States Air Force (USAF) development Contracts for the Joint Air-to-Surface Standoff Missile (JASSM) program.
In a joint press release, the companies announced that the ignition test achieved a 100 percent success rate for this critical development phase, keeping the program on schedule. The GEK800, an 800-pound thrust class engine, is designed to provide an affordable, high-performance propulsion solution for attritable strike assets and collaborative combat aircraft.
Transition to formal military development
The successful ignition follows a major programmatic shift for the GEK800. On August 17, 2026, the USAF awarded the program an Engineering, Manufacturing and Development (EMD) contract to serve as a second-source propulsion system for JASSM. Concurrently, the engine received the official U.S. Military-Aircraft Engine Type Designation F143-ZZ-100.
This contract marked the transition of the engine from an internally funded technology demonstration to a formal military development program. GE Aerospace and Kratos initiated the GEK800 program in 2023 with support from the Air Force Research Laboratory (AFRL). Prior to the September 21 ignition of Serial Number 1, the engine architecture completed altitude testing at Purdue University’s Zucrow Laboratories in 2025 and accumulated more than 50 ground-test engine starts by August 2026.
Industry collaboration and production readiness
Executives from both companies emphasized the speed and reliability of the development cycle. Jorge Perez, General Manager of Edison Works Advanced Combat Engines at GE Aerospace, stated that the engine continues to demonstrate strong performance and durability, delivering a highly capable system for demanding cruise missile applications.
Kratos is positioning its Manufacturing base to support the anticipated demand for the F143. Stacey Rock, President of Kratos’ Turbine Technologies Division, noted that the company continues to accelerate program schedules in preparation for large volume production.
“The combined Kratos, GE Aerospace, and Government test team has demonstrated exceptional focus, discipline, and schedule execution,” said Chris Rawlings, Vice President of Kratos’ Defense Engine Portfolio. “This team sets the benchmark for operational efficiency and provides a refreshing reminder that our nation can develop turbine engines affordably and at pace.”
AirPro News analysis
The rapid maturation of the GEK800 from a 2023 concept to a formally designated military engine (F143-ZZ-100) in 2026 underscores a shifting acquisition strategy within the Department of Defense. The Pentagon is increasingly prioritizing affordable, mass-producible propulsion systems to build out inventories of standoff weapons and collaborative combat aircraft. By establishing a second-source engine for the JASSM program, the USAF is actively mitigating supply chain risks and expanding industrial capacity for attritable assets.
We note that the September 21 press release issued by the companies contained repeated references to the “Department of War.” As this term was officially replaced by the Department of Defense in 1947, we assess this to be a typographical error in the official release rather than a programmatic shift. The contracting entity remains the USAF under the Department of Defense, as confirmed by the August 17 EMD contract announcement.
Sources: GE Aerospace Press Release
Photo Credit: GE Aerospace
Defense & Military
Finland Receives First Two F-35A Fighters at Rovaniemi
Finland’s first two F-35A Lightning II jets landed at Lapland Air Wing on Sept 18, 2026, under the EUR 10B HX program.

The first two Lockheed Martin F-35A Lightning II fighter jets destined for the Finnish Air Forces (Ilmavoimat) landed at Lapland Air Wing in Rovaniemi on September 18, 2026, marking the physical introduction of the fifth-generation platform to Finnish soil.
In a press release, the Finnish Air Force confirmed the arrival of the aircraft, which initiates the transition from the nation’s legacy Boeing F/A-18 Hornet fleet. The milestone is part of Finland’s EUR 10 billion HX fighter replacement program, which will ultimately see 64 F-35A aircraft integrated into the national defense and NATO collective defense architectures, according to program details reported by Janes.
Transatlantic ferry flight and arrival
The delivery flight originated at the Lockheed Martin facility in Fort Worth, Texas, on September 15, 2026. The aircraft were flown by United States Air Force (USAF) pilots and supported by aerial refueling during the transatlantic crossing. The routing included an intermediate stop at Lajes Air Base in the Azores, Portugal, before the final leg to northern Europe.
The two fighters entered Finnish airspace at 17:21 local time on September 18, where they were met and escorted by Finnish F/A-18 Hornets. The formation proceeded to Rovaniemi, with the F-35A aircraft touching down at 17:45 local time.
During the transit, the Finnish national roundels on the aircraft were temporarily covered. The Finnish Air Force noted this is standard practice for international ferry flights operated by U.S. military personnel. The tail emblems and registrations, JF-510 and JF-512, remained visible. The “JF” designation stands for “Joint Fighter,” a naming convention chosen to reflect the aircraft’s strategic value across all branches of the Finnish Defence Forces. The complete fleet will be numbered sequentially from JF-501 to JF-564.
While the official Finnish Air Force statement detailed the arrival of two aircraft, aviation tracking sources cited by The Aviationist indicated a third Finnish F-35A, registered as JF-511, was originally scheduled to make the crossing. According to that unverified reporting, the third aircraft remained at Lajes Air Base due to an unspecified technical issue.
Program timeline and operational capability
Finland selected the F-35A in December 2021 following the HX fighter replacement competition. The first aircraft for Finland rolled out of the Fort Worth facility in December 2025. Prior to the ferry flight, initial airframes were transferred to Eglin Air Force Base in Florida to support the training of Finnish pilots and maintenance personnel.
Colonel (ret) Henrik Elo, Director of the F-35 Programme, described the arrival in Rovaniemi as the most important milestone of the procurement effort to date, noting that the program remains on schedule.
“It is not just about the introduction of a new fighter, but integrating the F-35 into Finland’s entire defence system and NATO’s collective defence,” Elo said.
The Finnish Air Force expects to achieve initial operational capability (IOC) with the F-35A fleet in 2028. Full operational capability (FOC) is targeted for late 2030, at which point the F/A-18 Hornet fleet will be fully retired. An official arrival ceremony involving the President of the Republic of Finland, Alexander Stubb, and invited media is scheduled for October 1, 2026.
AirPro News analysis
We note that the physical arrival of the F-35A in Rovaniemi represents a material shift in NATO’s northern air posture, placing fifth-generation sensor and strike capabilities directly adjacent to the alliance’s eastern flank. While the reported delay of a third airframe at Lajes Air Base highlights the routine logistical complexities of transatlantic fighter deliveries, the successful arrival of the first two jets keeps the HX program on its projected timeline. The transition from the F/A-18 Hornet to the F-35A will require extensive infrastructure, maintenance, and doctrinal updates over the next two years as the Finnish Air Force builds toward its 2028 IOC target.
Sources: Ilmavoimat
Photo Credit: Finnish Air Force
Defense & Military
Philippine Air Force Accepts Two Bell 412EPX Helicopters
The PAF accepted two Bell 412EPX helicopters on Sept. 15, 2026, the second batch under its Additional Utility Helicopter Project.

This article summarizes reporting by Philippine News Agency by Priam Nepomuceno.
The Philippine Air Force (PAF) formally accepted two new Bell 412EPX utility helicopters during a ceremony at Colonel Jesus Villamor Air Base in Pasay City on September 15, 2026. The delivery marks the second batch of rotary-wing aircraft procured under the military’s Additional Utility Helicopter Project.
According to the Philippine News Agency, the acquisition expands the PAF’s capacity for air mobility, troop transport, and humanitarian assistance and disaster relief (HADR) operations across the archipelago. The initiative is a component of the broader Armed Forces of the Philippines (AFP) Modernization Program, designed to enhance rapid response capabilities in a region frequently affected by natural disasters.
Fleet expansion and delivery timeline
The September 15 acceptance brings the total number of Bell 412EPX helicopters delivered under the current contract to four. The PAF received the first batch of two aircraft on May 19, 2026. Bell Textron Inc. is contracted to deliver a total of eight Bell 412EPX helicopters under the Additional Utility Helicopter Project.
With the latest additions, the PAF now operates a total of 18 Bell 412-series helicopters in its inventory. PAF Spokesperson Col. Alvin Jay Capinguian stated that the acceptance and blessing ceremony was organized by the Systems Engineering and Modernization Office, with PAF Commanding General Lt. Gen. Arthur Cordura presiding as the guest of honor.
Operational role of the Bell 412EPX
The PAF utilizes a mixed fleet of utility helicopters to manage the logistical and geographical challenges of the Philippine islands. The Bell 412EPX operates alongside heavier military assets to support inter-island logistics, medical evacuation, and territorial defense.
Maj. Gen. Moises Micor, commander of the Air Mobility Command, was also present at the turnover ceremony. The integration of the new helicopters is expected to directly support the Air Mobility Command’s mandate to provide airlift operations for both combat and peacetime missions.
AirPro News analysis
The continued procurement of the Bell 412EPX underscores the Philippine military’s reliance on proven, medium-lift utility platforms for domestic operations. While the AFP Modernization Program includes the acquisition of dedicated attack helicopters and fast jets, the utility helicopter fleet remains the backbone of the PAF’s daily operational tempo. The geography of the Philippines dictates a high demand for rotary-wing assets capable of operating from austere locations, particularly during typhoon season when HADR missions become the primary focus of the armed forces. We expect the remaining four Bell 412EPX airframes to be delivered on a similar staggered schedule, further standardizing the PAF’s medium-lift capabilities around the Bell 412 family.
Sources: Philippine News Agency
Photo Credit: Philippine Air Force
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