Defense & Military
Saab Launches €35M Aerospace R&D Hub in Budapest
Sweden’s Saab expands in Central Europe with new Budapest facility to upgrade Gripen jets, create tech jobs, and enhance NATO interoperability by 2026.
Sweden’s defense giant Saab has made a strategic play in Central Europe with its new aerospace R&D hub in Budapest. This €35 million investment arrives as Hungary prepares to expand its Gripen fighter jet fleet to 18 aircraft by 2026 – a 28% capacity increase from its current 14 jets. The move comes 23 years after Hungary first leased Swedish-made Gripens, cementing a defense partnership that survived recent NATO accession tensions.
At a time when NATO’s eastern flank requires heightened air policing, Hungarian Gripens now safeguard six nations’ airspace. The Budapest facility positions Hungary as a regional tech player while addressing Europe’s 17% annual growth in defense R&D spending since 2022. For Saab, it’s part of a global pattern – similar innovation hubs launched in Canada and the UK since 2023 now handle 40% of the company’s AI development projects.
The Budapest hub’s initial team of 30 engineers will triple by 2027, focusing on avionics upgrades for the Gripen’s radar and electronic warfare systems. This builds on Hungary’s €800 million 2024 defense modernization program. Foreign Minister Péter Szijjártó notes the center enables “technology transfer beyond aircraft maintenance,” referencing Hungary’s planned 2026 ownership transition of its Gripen fleet.
Saab’s choice aligns with Budapest’s evolving tech ecosystem – the city’s aerospace workforce grew 12% annually since 2020. The facility will collaborate with Budapest University of Technology on VR simulations, mirroring Saab’s UK partnership with Imperial College London. As Lars Tossman, Saab’s Aviation VP, states: “This isn’t just about screws and bolts, but coding the future of air defense.”
“When Hungarian pilots patrol Baltic skies from August, they’ll be flying hardware refined by their own engineers,” notes Szijjártó.
The deal concludes 14 months of post-NATO accession diplomacy, with Sweden approving the center days after Hungary ratified its membership. While critics question the timing, the arrangement provides Hungary access to Saab’s NGWS combat cloud system – a network connecting 5th-gen fighters across NATO allies.
Hungary’s Defense Ministry highlights three key benefits: 1) 100 high-skilled jobs by 2027 2) Participation in Europe’s €8 billion FCAS fighter program 3) 15% cost reduction in fleet maintenance through localized R&D. The move comes as Central Europe’s defense budgets hit a record €31 billion in 2024.
Saab’s Budapest hub follows a template seen in Montreal (AI targeting systems) and Nottingham (radar tech). Each center focuses on regional strengths – Hungary’s emerges as an avionics specialist. This decentralized model helped Saab increase defense exports 22% YoY in Q1 2024. The strategy counters “brain drain” concerns – 78% of the Budapest team are Hungarians returning from Western tech jobs. As drone warfare reshapes conflicts from Ukraine to Sudan, such hubs become crucial for rapid prototyping. Saab’s testbed AI targeting algorithms here could inform next-gen Gripen updates by 2028.
Saab’s Budapest venture illustrates defense globalization 2.0 – distributing R&D to leverage regional expertise while securing political goodwill. For Hungary, it’s a chance to move beyond assembly-line work into high-value aerospace design. The center’s success may hinge on sustaining Sweden’s tech transfers as NATO’s eastern front demands ever-advancing capabilities.
Looking ahead, watch for Hungarian-engineered systems in the Gripen E/F models debuting in 2027. With Central Europe’s defense spending projected to hit €40 billion by 2026, Budapest could emerge as a niche hub for electronic warfare solutions – provided it maintains this delicate balance of commerce and geopolitics.
Why did Saab choose Budapest for this R&D hub? How does this benefit Hungary’s economy? What’s the NATO significance? Sources: bne IntelliNews, Saab Group
Saab’s Strategic Expansion into Central European Aerospace
The Hungary-Sweden Defense Nexus
Geopolitical Calculus and Tech Transfer
Global Pattern of Defense Innovation
Conclusion
FAQ
Budapest offers lower operational costs than Western Europe, a growing tech talent pool, and strategic positioning near NATO’s eastern frontier.
Creates 100 high-skilled jobs, transfers cutting-edge aerospace tech, and positions Hungary for future defense contracts worth €500+ million annually.
Enhances interoperability as Hungarian-upgraded Gripens will integrate with NATO’s emerging combat cloud systems through 2030.
Photo Credit: hungarytoday.hu
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Defense & Military
Embraer Delivers First A-29N Super Tucanos to Portugal and Plans Assembly Line
Embraer delivered five A-29N aircraft to Portugal with plans for a new assembly line to supply Europe. Full operational capability expected by 2027.
This article is based on an official press release from Embraer.
On December 17, 2025, Embraer officially delivered the first five A-29N Super Tucano aircraft to the Portuguese Air Force (Força Aérea Portuguesa, FAP). The handover ceremony took place at the facilities of OGMA (Indústria Aeronáutica de Portugal) in Alverca, marking a significant milestone for the Brazilian aerospace manufacturer as it introduces the NATO-specific “N” variant to the European market.
Alongside the delivery, Embraer and the Portuguese government signed a Letter of Interest (LOI) to explore establishing a final assembly line for the A-29N in Portugal. According to the company, this potential facility would serve as a strategic hub to meet growing demand for the aircraft across Europe.
The delivery of these five aircraft comes just one year and one day after the contract was signed in December 2024. The total order encompasses 12 aircraft with a reported value of approximately €200 million. Embraer noted that the remaining aircraft are scheduled for delivery in the coming years, with Full Operational Capability (FOC) expected by 2027.
The event underscores the deepening industrial ties between Brazil and Portugal. OGMA, which is 65% owned by Embraer, will handle the logistical support, maintenance, and modernization of the fleet. The facility in Alverca already serves as a central hub for Embraer’s KC-390 Millennium transport aircraft program.
In a statement regarding the aircraft’s capabilities, Nuno Melo, Minister of National Defense of Portugal, highlighted the versatility of the new fleet:
“We are not only introducing a new air attack capability… but also addressing potential new scenarios. The Super Tucano now offers the possibility of performing anti-drone missions, demonstrating the flexibility of the aircraft chosen by the Air Force.”
The “N” variant delivered to Portugal represents a specific evolution of the Super Tucano platform designed to meet the interoperability requirements of NATO member states. While the standard Super Tucano is renowned for counter-insurgency and light attack roles, the A-29N includes upgrades essential for the European theater.
Key features of the A-29N configuration include: A major component of the announcement was the signed Letter of Interest regarding a new assembly line. While the delivery took place in Alverca, the proposed assembly line is reportedly being considered for the Beja Air Base. This facility would focus on assembling A-29N aircraft for future export customers in the region.
Bosco da Costa Junior, President and CEO of Embraer Defense & Security, emphasized the strategic logic behind this move:
“There is growing interest in employing the A-29 for counter-UAS missions in Europe, and a potential assembly line in Portugal paves the way for the development of new business and broader cooperation with the Portuguese defense industry.”
The delivery of the A-29N to Portugal signals a shift in European defense procurement strategies. For decades, European air forces have relied heavily on high-performance jet fighters. However, the rising cost of flight hours, often exceeding $20,000 for 4th and 5th-generation jets, has created a market gap for cost-effective alternatives.
We observe that the A-29N, with operating costs estimated around $1,000 per flight hour, offers a financially viable solution for low-intensity missions such as border patrol, basic Close Air Support (CAS), and pilot training. Furthermore, the explicit mention of Counter-UAS (C-UAS) capabilities addresses a critical vulnerability exposed by recent conflicts, such as the war in Ukraine, where slow-moving drones have become a persistent threat that is expensive to counter with high-end missiles.
By establishing an assembly line in Portugal, Embraer is likely positioning itself to compete for contracts with other NATO nations, such as the Netherlands, which require advanced trainers to bridge the gap between basic flight school and complex F-35 operations.
What is the difference between the A-29 and the A-29N? How many aircraft did Portugal order? What role will OGMA play? Sources: Embraer
Embraer Delivers First NATO-Configured A-29N Super Tucanos to Portugal; Eyes New Assembly Line
Rapid Delivery and Strategic Partnership
The A-29N: Tailored for NATO Operations
Potential European Assembly Line
AirPro News Analysis
Frequently Asked Questions
The A-29N is a variant specifically configured for NATO nations. It includes a NATO-standard datalink, modifications for single-pilot operation, and specific training integrations that differ from the standard export models used in South America or Africa.
The Portuguese Air Force ordered a total of 12 A-29N Super Tucanos. Five were delivered on December 17, 2025.
OGMA, based in Alverca, will provide maintenance, logistics, and engineering support for the fleet. It is also the site where the initial delivery ceremony took place.
Photo Credit: Embraer
Defense & Military
Spain Orders 100 Airbus Helicopters in €4 Billion Deal
Spain signs €4 billion contract with Airbus Helicopters for 100 military aircraft, supporting national defense and industry with Albacete-based production.
This article is based on an official press release from Airbus.
On December 18, 2025, the Spanish Ministry of Defence formalized a historic agreement with Airbus Helicopters to acquire 100 military aircraft. Valued at approximately €4 billion for the manufacturer, with a total program cost estimated at €5.3 billion when including government-furnished equipment, this contract represents the largest helicopter procurement in the history of the Spanish Directorate General for Armament and Material (DGAM).
According to the official announcement, the acquisition is the centerpiece of Spain’s “National Helicopter Plan” (Plan Nacional de Helicópteros). This strategic initiative aims to consolidate the country’s military fleets, streamline logistics, and strengthen the national defense industry. The order encompasses four different helicopter models destined for the Spanish Army, Navy, and Air and Space Force.
Notably, this contract establishes Spain as the launch customer for the military version of the H175M, a significant milestone for Airbus in the super-medium helicopter market.
The contract covers a diverse range of platforms designed to standardize operations across Spain’s armed forces. According to details released regarding the procurement, the order is distributed as follows:
“This contract is a decisive step towards the modernization of our armed forces and the consolidation of our national defense industry.”
, Statement attributed to Ministry of Defence officials in related reporting.
A critical component of the agreement is the industrial return for Spain. Airbus has confirmed that the production and modification of these aircraft will center on its facility in Albacete. The manufacturer states that this contract will secure the plant’s industrial activity for the coming decade and lead to the creation of over 300 direct, highly qualified jobs.
In addition to assembly, the agreement includes the development of new infrastructure in Albacete: According to the schedule outlined in the announcement, deliveries are expected to proceed in phases:
The inclusion of the H175M is perhaps the most strategically significant aspect of this order for Airbus. By securing Spain as a launch customer, Airbus validates the H175M as a credible military platform in the competitive “super-medium” category, where it faces stiff competition from the Leonardo AW149. This domestic endorsement provides a critical reference case for export campaigns.
Furthermore, the “National Helicopter Plan” reflects a broader NATO trend toward fleet rationalization. By reducing the number of airframe types in service, Spain aims to lower long-term maintenance, repair, and overhaul (MRO) costs while simplifying pilot training pipelines, a move that prioritizes operational availability over platform diversity.
Sources: Airbus Press Release
Spain Orders 100 Airbus Helicopters in Historic €4 Billion Deal
Breakdown of the 100-Unit Order
Industrial Impact on Albacete
Delivery Timeline
AirPro News Analysis
Sources
Photo Credit: Airbus
Defense & Military
Airbus Delivers First H160 Helicopter to French Gendarmerie Nationale
Airbus delivers the first H160 helicopter to the French Gendarmerie Nationale to replace older models and enhance law enforcement capabilities.
This article is based on an official press release from Airbus and additional public background data.
On December 16, 2025, Airbus Helicopters officially delivered the first of ten H160 helicopters to the French Gendarmerie Nationale. The handover ceremony took place at the manufacturer’s headquarters in Marignane, France, marking a significant milestone in the modernization of French law enforcement aviation. The aircraft was formally accepted by the French Defence Procurement Agency (DGA) on behalf of the Ministry of Interior.
This delivery initiates the fulfillment of a contract signed in December 2021, valued at approximately €200 million ($226 million). The new fleet is intended to replace aging assets and provide advanced capabilities for high-intensity missions, including counter-terrorism operations led by the elite GIGN (Groupe d’Intervention de la Gendarmerie Nationale).
The newly delivered H160 is configured specifically for law enforcement duties. According to Airbus, this medium-twin helicopter offers a substantial upgrade in range, speed, and payload compared to the legacy fleet. The aircraft is designed to transport up to 12 passengers, a capacity that allows for the deployment of full tactical teams, whereas previous platforms like the AS350 Écureuil were limited to five or six occupants.
Key technical features of the Gendarmerie’s H160 include:
In a statement regarding the delivery, Bruno Even, CEO of Airbus Helicopters, highlighted the collaborative effort behind the program:
“The delivery of the first H160 to the Gendarmerie Nationale is the result of a close cooperation with the Gendarmerie and the DGA, to develop a solution entirely dedicated to the most demanding security missions. This programme is a testament to our commitment to the future of French defence and security, notably with the ongoing development of the H160M Guépard.”
The procurement of the H160 is part of the broader “Plan Aéro” stimulus strategy initiated by the French government in 2020. This initiative aims to support the national aerospace industry while simultaneously upgrading the equipment of security forces. The H160s are primarily tasked with replacing the AS350 Écureuil fleet, which has been in service for over three decades.
This acquisition is closely linked to the H160M Guépard program, under which the French Armed Forces have ordered 169 militarized versions of the H160. By utilizing a common platform across both the Gendarmerie and the military (Army, Navy, and Air Force), the French government aims to secure strategic synergies. These include shared logistics networks, unified maintenance protocols, and standardized training programs, which are expected to lower long-term operating costs and improve interoperability during joint crisis responses.
The delivery of the H160 represents a distinct shift in the operational philosophy of the Gendarmerie Nationale. Moving from the single-engine AS350 to the medium-twin H160 is not merely a replacement; it is a capability leap. The AS350 is a light utility helicopter, while the H160 offers the payload and stability required for heavy tactical insertion. We observe that this transition mirrors a global trend among law enforcement agencies moving toward multi-role twin-engine platforms that can handle heavier equipment loads, such as ballistic shields and advanced surveillance suites, without compromising range or safety. Furthermore, the “Blue Edge” rotor technology addresses growing public sensitivity to noise pollution, allowing the Gendarmerie to operate over densely populated French cities with a reduced acoustic footprint.
Following this initial delivery, the aircraft will undergo a phase of operational integration and crew training. According to project timelines, the H160 is expected to enter full active service by early 2027. The remaining nine units from the 2021 order will be delivered progressively over the coming years.
Sources:
Airbus Delivers First H160 Helicopter to French Gendarmerie Nationale
Operational Capabilities and Configuration
Strategic Modernization and Military Synergy
AirPro News Analysis
Timeline for Entry into Service
Photo Credit: Airbus
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