Defense & Military

Austria Finalizes €1.5 Billion Deal for Leonardo M-346FA Jets

Austria signs €1.5 billion contract for 12 Leonardo M-346FA jets to restore jet pilot training and enhance air policing with deliveries starting in 2027.

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This article summarizes reporting by Scramble nl and official announcements from the Austrian Ministry of Defense. Read the original reporting for full context.

Austria Finalizes €1.5 Billion Deal for 12 Leonardo M-346FA Jets

The Austrian Ministry of Defense has officially signed a contract to acquire 12 Leonardo M-346FA (Fighter Attack) aircraft, marking a significant modernization effort for the nation’s air force. According to reporting by Scramble.nl and official government statements released on November 29, 2025, the deal is valued at approximately €1.5 billion and aims to restore domestic jet pilot training capabilities lost five years ago.

This acquisition follows a Government-to-Government (G2G) agreement initially framed in May 2025 between Austria and Italy. The new fleet will replace the Saab 105 aircraft, which were retired in 2020, leaving a capability gap that forced Austrian pilots to train abroad. Deliveries of the new jets are scheduled to begin in 2027, with the fleet expected to reach full operational capability by 2028 at the Linz-Hörsching Air Base.

The agreement positions Austria as the launch customer for the advanced “Block 20” variant of the M-346FA. Beyond training, these aircraft will serve a critical “second fleet” role, handling air policing duties for slower targets to relieve pressure on Austria’s high-performance Eurofighter Typhoons.

Contract Specifications and Costs

The finalized deal involves a firm order for 12 jets with options for an additional 12 aircraft, structured in two batches of six. As detailed in the official announcement, the total contract value covers more than just the airframes. The €1.5 billion package includes weaponry, simulators, comprehensive training programs, logistics, and long-term maintenance support.

Based on the total value, the estimated unit cost for each fully equipped aircraft sits at approximately €80 million. The procurement is designed to be a holistic solution, ensuring that the Austrian Air-Forces can independently manage the lifecycle of the fleet immediately upon delivery.

Technical Capabilities: The Block 20 Standard

Austria’s selection of the M-346FA is notable for its specific configuration. The “Block 20” standard introduces significant technological upgrades over previous models. According to technical specifications released regarding the deal, the new jets will feature a next-generation cockpit equipped with a Large Area Display (LAD) and a new Active Electronically Scanned Array (AESA) Radar-Systems. These additions provide superior situational awareness and target tracking capabilities.

The aircraft are designed to perform dual roles:

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  • Advanced Training: Serving as a Lead-In Fighter Trainer (LIFT) to prepare pilots for the complex systems of the Eurofighter Typhoon.
  • Operational Missions: Conducting air policing against helicopters, light aircraft, and Drones, as well as Close Air Support (CAS) and reconnaissance missions.

To support these combat roles, the jets will feature seven external hardpoints. The armament package reportedly includes Nexter 20mm gun pods, LAU-32 rocket launchers, and integration for IRIS-T air-to-air missiles. For survivability, the fleet will be equipped with Elbit SPEAR Active Electronic Countermeasures (AECM) pods.

Strategic Context and Neutrality

The purchase is a central component of Austria’s “ÖBH 2032+” development plan, which advocates for a “two-fleet” strategy. By utilizing the M-346FA for lower-intensity missions, the Air Force aims to reduce the flight hours put on the Eurofighter fleet. Operating costs for the M-346FA are estimated to be roughly 10% of those required for the Typhoon, offering substantial long-term savings.

Defense Minister Klaudia Tanner emphasized that the deal is about more than just hardware, it is a matter of national sovereignty.

“By purchasing these jets, we are closing a significant capability gap in our air force. This not only brings 100% of our pilot training back to Austria but also significantly strengthens our air defense and neutrality.”

Klaudia Tanner, Austrian Minister of Defense

AirPro News Analysis

The Austrian decision to procure the M-346FA highlights a growing trend among European air forces: the “downloading” of mission sets. As frontline fighters like the Eurofighter Typhoon and F-35 become increasingly expensive to operate per flight hour, air forces are turning to high-performance trainers to handle routine air policing and border patrol. By selecting the Block 20 variant with AESA radar, Austria is effectively acquiring a “light fighter” capable of genuine combat duties, rather than a simple trainer. This move validates the “Fighter Attack” concept Leonardo has been marketing, proving that LIFT aircraft can serve as credible, cost-effective supplements to 4.5-generation fleets.

Industrial Cooperation and Political Reaction

The agreement includes an economic offset package valued at approximately €400 million. This side agreement is intended to benefit Austrian suppliers through cooperation in aerospace technology, maintenance, and research. However, the deal has not been without domestic controversy.

Opposition parties have criticized the acquisition, with some labeling the jets as “luxury” items and arguing that cheaper turboprop trainers would have sufficed for the training role. Additionally, concerns were raised regarding the tender process, with accusations that requirements were tailored to favor Leonardo over competitors such as the Czech L-39NG or the Boeing-Saab T-7 Red Hawk.

Despite the criticism, the timeline is now locked, with the first jets arriving in 2027 to restore Austria’s independent airspace surveillance capabilities.

Sources

Photo Credit: Leonardo

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