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Indonesia Signs Letter of Intent for Leonardo M-346 Block 20 Jets

Indonesia plans to acquire Leonardo M-346 Block 20 jets to replace Hawks, enhancing pilot training and light combat capabilities.

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This article is based on an official press release from Leonardo.

Indonesia Signs Letter of Intent for M-346 Block 20 Jets at Singapore Airshow

On February 4, 2026, Leonardo S.p.A. announced the signing of a Letter of Intent (LoI) with the Ministry of Defence of the Republic of Indonesia and local industrial partner PT ESystem Solutions. The agreement, formalized at the Singapore Airshow, outlines the potential acquisition of the M-346 F “Block 20” aircraft for the Indonesian Air-Forces.

According to the official press release from Leonardo, this strategic move aims to replace Indonesia’s aging fleet of BAE Systems Hawk 109/209 aircraft. The acquisition is designed to fulfill a dual requirement: providing advanced Lead-In Fighter Training (LIFT) for pilots transitioning to new 4.5 and 5th-generation fighters, and serving as a capable light combat platform for air policing duties.

The inclusion of PT ESystem Solutions as a signatory highlights Indonesia’s focus on localization. The agreement includes provisions for establishing local support, maintenance, overhaul, and training infrastructure, ensuring that the Indonesian defense industry plays an active role in the lifecycle of the new fleet.

The M-346 Block 20: Bridging Training and Combat

The aircraft at the center of this agreement is the M-346 F “Block 20,” an advanced variant of Leonardo’s established trainer jet. While the standard M-346 is widely used for pilot training, the Block 20 configuration is specifically engineered to bridge the gap between training environments and modern combat operations.

In its statement, Leonardo emphasized that the Block 20 variant is equipped to handle both advanced training and light attack roles. Key technical upgrades cited in the announcement and industry reports include:

  • Advanced Cockpit Environment: The aircraft features a Large Area Display (LAD) and a low-profile Head-Up Display (HUD), designed to mimic the human-machine interface found in frontline fighters like the Dassault Rafale and F-35.
  • AESA Radar: The integration of an Active Electronically Scanned Array (AESA) radar provides superior target tracking and engagement capabilities compared to mechanical radars found on older trainers.
  • Tactical Connectivity: A Link 16 tactical data link ensures the aircraft can operate within network-centric warfare environments.
  • Combat Systems: The platform supports a Helmet-Mounted Display (HMD) for targeting and carries a suite of electronic countermeasures (ECM) for survivability.

“The M-346 Block 20 is the latest standard… specifically designed to bridge the gap between training and modern combat operations.”

, Leonardo Press Release

Strategic Context and Modernization

This agreement comes at a critical time for the Indonesian Air Force, which is currently executing its “Minimum Essential Force” (MEF) modernization roadmap. With the arrival of the first batch of Dassault Rafale fighters in January 2026, the TNI-AU faces an urgent need to upgrade its pilot training pipeline.

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AirPro News Analysis

The selection of the M-346 Block 20 appears to be a direct response to the technological leap required to operate the Rafale. The legacy Hawk 109/209 fleet, while reliable for decades, lacks the avionics and systems management complexity necessary to prepare pilots for 4.5-generation warfare. By acquiring a platform that mimics the Rafale’s cockpit and sensor fusion, Indonesia can offload expensive flight hours from its frontline fighters to the more cost-effective M-346.

Furthermore, the dual-role capability of the M-346 F allows the TNI-AU to maintain a light attack capability for counter-insurgency or border patrol missions without deploying its heavy fighters. This mirrors a regional trend, as neighboring air forces like Singapore also operate the M-346, potentially opening doors for improved interoperability and shared training standards within ASEAN.

Industrial Partnership and Local Content

A significant component of the LoI is the involvement of PT ESystem Solutions. According to corporate registry data and industry reports, the South Jakarta-based company will act as the local industrial partner. Led by CEO Habib Boukharouba, a former French Air Force pilot, the firm is tasked with facilitating the deal and managing the localization of support services.

This structure aligns with Indonesia’s Law No. 16/2012, which mandates local industry participation in foreign defense procurement. By securing domestic maintenance and overhaul capabilities, Indonesia aims to reduce dependency on foreign supply chains for routine operations.

Frequently Asked Questions

What is the M-346 Block 20?

The M-346 Block 20 is an upgraded version of Leonardo’s advanced jet trainer. It features an AESA radar, Large Area Display cockpit, and enhanced weapons capabilities, allowing it to serve as both a trainer and a light combat aircraft.

Why is Indonesia replacing the BAE Hawk?

The BAE Systems Hawk 109/209 fleet is aging and lacks the modern avionics required to train pilots for Indonesia’s new Dassault Rafale fighters. The M-346 offers a digital cockpit and systems that better replicate modern combat scenarios.

Who is PT ESystem Solutions?

PT ESystem Solutions is an Indonesian defense consultancy and brokerage firm. In this agreement, they serve as the local partner responsible for facilitating the acquisition and managing local maintenance and support infrastructure.

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Photo Credit: Leonardo

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Defense & Military

Grid Aero Raises $20M to Deploy Long-Range Autonomous Airlift

Grid Aero secures $20M Series A funding to develop the “Lifter-Lite,” a long-range autonomous aircraft for military logistics in the Indo-Pacific.

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This article is based on an official press release from Grid Aero.

Grid Aero Secures $20M Series A to Deploy Long-Range Autonomous Airlift for Contested Logistics

Grid Aero, a California-based aerospace Startups, announced on January 26, 2026, that it has raised $20 million in Series A funding. The round was led by Bison Ventures and Geodesic Capital, with participation from Stony Lonesome Group, Alumni Ventures, Ubiquity Ventures, Calibrate Ventures, and Commonweal Ventures. The capital will be used to transition the company’s “Lifter-Lite” autonomous aircraft from prototype to a fielded platform, specifically targeting military logistics challenges in the Indo-Pacific region.

Unlike many entrants in the autonomous aviation sector that focus on electric propulsion, Grid Aero has developed a clean-sheet, conventional-fuel aircraft designed to address the “tyranny of distance.” By utilizing standard Jet-A fuel and a rugged fixed-wing design, the company aims to provide a heavy-lift solution capable of operating without traditional runway infrastructure.

The “Lifter-Lite” Platform: Capabilities and Design

According to the company’s announcement, the flagship “Lifter-Lite” aircraft prioritizes range and payload capacity over novel propulsion methods. The system is engineered to carry between 1,000 and 8,000 pounds of cargo, with a maximum range of up to 2,000 miles. This range capability allows for trans-oceanic flights, such as routes from Guam to Japan, which are critical for Pacific theater operations.

The aircraft utilizes a conventional turboprop engine, a strategic choice intended to ensure compatibility with existing military fuel supply chains. The design features Short Takeoff and Landing (STOL) capabilities, enabling operations from dirt strips, highways, or damaged runways where standard cargo planes cannot land.

Leadership and Engineering Pedigree

Grid Aero was founded in 2024 by CEO Arthur Dubois and CTO Chinmay Patel. Dubois previously served as Director of Engineering at Xwing and was an early engineer at Joby Aviation. Patel, who holds a PhD in Aeronautics and Astronautics from Stanford, brings experience from Zee Aero (Kitty Hawk). The leadership team emphasizes a shift away from the “electric hype” of the urban air mobility sector toward pragmatic, physics-based solutions for defense logistics.

“We are building the pickup truck of the skies, a rugged, affordable, and autonomous logistics network capable of operating in austere environments.”

, Grid Aero Mission Statement

Strategic Context: Addressing Contested Logistics

The Investments from Geodesic Capital, a firm known for fostering U.S.-Japan collaboration, highlights the strategic focus on the Indo-Pacific. The Department of Defense (DoD) has identified logistics as a primary vulnerability in potential conflicts where traditional supply lines may be contested. Grid Aero positions its technology as an “attritable” asset, low-cost, unmanned systems that can be deployed in volume without risking human crews.

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AirPro News Analysis

The Shift to Pragmatic Propulsion

While the broader autonomous aviation market has largely chased the promise of electric Vertical Takeoff and Landing (eVTOL) technologies, Grid Aero’s successful Series A raise signals a growing investor appetite for pragmatic, mission-specific engineering. Electric propulsion currently struggles with energy density, limiting most eVTOLs to ranges under 200 miles, insufficient for the vast distances of the Pacific.

By opting for a conventional turboprop engine, Grid Aero bypasses the battery bottleneck entirely. This decision allows the “Lifter-Lite” to integrate immediately into existing defense infrastructure (using Jet-A fuel) while offering ranges that are an order of magnitude higher than its electric competitors. For military buyers, the ability to repair an aluminum airframe in the field is often more valuable than the theoretical efficiency of composite electric platforms.

Frequently Asked Questions

What is the primary use case for Grid Aero’s aircraft?

The aircraft is designed for “contested logistics,” delivering heavy cargo (1,000–8,000 lbs) over long ranges (up to 2,000 miles) to areas without standard runways, such as islands or forward operating bases.

Why does Grid Aero use conventional fuel instead of electric power?

Conventional Jet-A fuel offers significantly higher energy density than current battery technology, enabling the long ranges required for operations in the Pacific. It also ensures compatibility with existing military logistics chains.

Who are the lead investors in this round?

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The Series A round was led by Bison Ventures, a deep-tech VC firm, and Geodesic Capital, which specializes in U.S.-Japan expansion and security collaboration.

Is the aircraft fully autonomous?

Yes, the system is designed for fully autonomous flight operations, allowing for “fleet-scale” management where a single operator can oversee multiple aircraft simultaneously.

Sources

Photo Credit: Grid Aero

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Defense & Military

Apogee Aerospace Signs $420M Deal for Albatross Amphibious Aircraft

Apogee Aerospace partners with Australia’s AAI to purchase 15 Albatross 2.0 amphibious planes and invest in India’s seaplane infrastructure.

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This article summarizes reporting by The Economic Times.

Apogee Aerospace Signs $420M Deal for Albatross Amphibious Aircraft

In a significant development for India’s regional and maritime aviation sectors, Apogee Aerospace Pvt Ltd has signed a definitive agreement with Australia’s Amphibian Aerospace Industries (AAI). According to reporting by The Economic Times, the deal, finalized on February 5, 2026, is valued at approximately Rs 3,500 crore ($420 million) and involves the purchase of 15 Albatross 2.0 amphibian aircraft.

The partnership extends beyond a simple acquisition. Reports indicate that Apogee Aerospace will invest an additional Rs 500 crore ($60 million) to develop a domestic ecosystem for seaplanes in India. This infrastructure commitment includes a final assembly line, a Maintenance, Repair, and Overhaul (MRO) facility, and a pilot training center. The move appears strategically timed to align with the Indian Navy’s recent interest in acquiring amphibious capabilities.

Deal Structure and Investment Details

The agreement outlines a comprehensive collaboration between the Indian entity and the Darwin-based manufacturer. As detailed in the report, Apogee Aerospace, a special purpose vehicle of the deep-tech defense firm Apogee C4i LLP, has secured 15 units of the G-111T Albatross. This modernized aircraft is a “revival” of the Grumman HU-16, a platform historically utilized for open-ocean rescue missions.

To cement the partnership, Apogee has reportedly invested $7 million (Rs 65 crore) directly into AAI’s parent company, Amphibian Aircraft Holdings. This equity stake grants the Indian firm a long-term interest in the Original Equipment Manufacturer (OEM). According to the timeline provided in the reporting, the first aircraft is expected to enter the Indian market within 18 to 24 months, with a demonstration aircraft likely arriving within six months.

Domestic Manufacturing and MRO

A central component of the deal is the focus on “Make in India” initiatives. The Rs 500 crore investment is designated for establishing local capabilities that would allow Apogee to service the fleet domestically. This aligns with the Indian government’s Union Budget 2026-27, which explicitly offered incentives for indigenous seaplane manufacturing and viability gap funding for operators.

The Albatross 2.0 (G-111T) Platform

The aircraft at the center of this procurement is the Albatross 2.0, also known as the G-111T. While based on a legacy airframe, the new variants are being rebuilt in Darwin with significant modernizations. The Economic Times notes that AAI holds the type certificate for the aircraft, which is the only FAA and EASA-certified transport-category amphibian in its class.

Key upgrades to the platform include:

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  • Propulsion: Replacement of original radial engines with modern Pratt & Whitney PT6A-67F turboprops.
  • Avionics: Installation of a fully digital glass cockpit and modern navigation suites.
  • Capacity: Configuration options for up to 28 passengers in a civil variant, or specialized payloads for search and rescue (SAR) and surveillance in military configurations.

Strategic Context: The Indian Navy Bid

The timing of this commercial agreement coincides with a major defense procurement opportunity. On January 10–12, 2026, the Indian Ministry of Defence (MoD) issued a Request for Information (RFI) seeking to wet-lease four amphibious aircraft for the Indian Navy. The Navy requires these assets for SAR operations, island logistics in the Andaman & Nicobar and Lakshadweep archipelagos, and maritime surveillance.

Industry observers suggest that the Apogee-AAI partnership intends to bid for this contract against established global competitors, most notably Japan’s ShinMaywa. The ShinMaywa US-2 has been evaluated by the Indian Navy for over a decade, but high unit costs, estimated at over $110 million per aircraft, have historically stalled acquisition efforts. In contrast, the Albatross 2.0 is positioned as a cost-effective alternative, with a claimed unit cost significantly lower than its Japanese competitor.

AirPro News Analysis

We view this deal as a calculated gamble by Apogee Aerospace to disrupt a defense procurement process that has been stagnant for years. By securing a commercial order and investing in local MRO, Apogee is likely attempting to present a “sovereign industrial capability” argument to the Ministry of Defence. This approach addresses two critical pain points for Indian defense planners: cost and indigenization.

However, risks remain. While the ShinMaywa US-2 is a proven, currently operational platform with extreme rough-sea capabilities, the Albatross 2.0 is effectively a remanufactured legacy aircraft from a company that is still ramping up production. The Indian Navy’s RFI calls for an immediate wet-lease solution. Whether AAI can meet the operational readiness requirements with a production line that is still maturing will be the key factor in the upcoming bid evaluation. The promise of a demo aircraft in six months will be the first real test of this partnership’s viability.

Sources

Sources: The Economic Times

Photo Credit: AAI

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Boeing Cuts 300 Defense Supply-Chain Jobs Amid Financial Losses

Boeing reduces 300 non-union supply-chain roles in its Defense unit following a $507 million Q4 2025 loss linked to KC-46A program costs.

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Boeing Eliminates 300 Defense Supply-Chain Roles Amid Restructuring

Boeing has initiated a workforce reduction affecting approximately 300 positions within its Defense, Space & Security (BDS) unit. According to reporting first published by Bloomberg News and subsequently confirmed by Reuters, the cuts specifically target non-union supply-chain roles across multiple facilities in the United States.

The layoffs, which began with employee notifications the week of February 4, 2026, come as the aerospace giant attempts to stabilize its defense operations following significant financial losses in the fourth quarter of 2025. While the company’s commercial division has shown signs of recovery, the defense sector continues to face headwinds driven by high production costs and fixed-price contract challenges.

Details of the Workforce Reduction

The reduction of approximately 300 jobs is focused on the supply-chain infrastructure of the defense unit. Unlike other recent workforce adjustments, these specific cuts affect non-union employees. While Boeing has not publicly listed the specific facilities impacted, reports indicate the reductions are spread across various U.S. sites rather than concentrated in a single location.

In a statement regarding the decision, a Boeing spokesperson emphasized the necessity of the move to align with business realities.

“Boeing regularly evaluates and adjusts its workforce to stay aligned to our commitments to our customers and communities.”

, Boeing spokesperson via Reuters

The company has indicated that affected employees will receive severance packages and outplacement support. Additionally, Boeing noted it currently has approximately 1,300 open positions company-wide and will attempt to redeploy impacted workers where skills align with open requisitions.

Financial Context: Defense Unit Struggles

These personnel adjustments are directly linked to the financial performance of the Defense, Space & Security unit. In its earnings report for the fourth quarter of 2025, the unit reported an operating loss of $507 million. This loss contrasts with the broader company’s return to profitability, which was driven largely by commercial deliveries and one-time gains.

A primary driver of the defense unit’s deficit remains the KC-46A aerial refueling tanker program. The program incurred a $565 million charge in the fourth quarter alone. Boeing attributed this charge to “higher estimated production support and supply chain costs,” providing a clear rationale for why supply-chain roles are now being scrutinized and reduced.

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AirPro News Analysis

The targeting of supply-chain roles within the defense unit suggests a strategic pivot from general workforce reduction to specific cost-center management. The KC-46A program has long been a financial drag due to its fixed-price contract structure, meaning Boeing must absorb cost overruns. By reducing headcount in the supply chain specifically, Boeing appears to be attempting to lower the overhead costs associated with managing the complex vendor networks that have contributed to the $565 million charge. This indicates that leadership is prioritizing margin recovery in defense over capacity expansion.

Distinction from Engineering Relocations

It is important to distinguish these layoffs from a separate, concurrent workforce movement reported by The Economic Times and other outlets. Alongside the defense cuts, Boeing is relocating approximately 300 engineering positions related to the 787 Dreamliner program from Washington state to South Carolina.

The engineering move affects unionized workers represented by the Society of Professional Engineering Employees in Aerospace (SPEEA), whereas the defense supply-chain cuts affect non-union roles. The defense cuts are a net reduction in headcount, while the engineering changes represent a geographic relocation of work.

Both moves are part of a broader restructuring plan announced in late 2024 and early 2025, aiming to reduce Boeing’s total workforce by approximately 10%, or roughly 17,000 jobs, to restore long-term financial stability.

Frequently Asked Questions

Who is affected by these specific cuts?
Approximately 300 non-union employees working in supply-chain roles within the Defense, Space & Security unit.

Is this related to the 787 engineering news?
No. The 787 engineering move involves unionized workers moving from Washington to South Carolina. The defense cuts are a separate action involving job eliminations.

When will employees be notified?
Notifications for the defense supply-chain cuts began the week of February 4, 2026.

What triggered these layoffs?
The cuts are a response to a $507 million operating loss in the defense unit for Q4 2025, driven largely by supply chain costs associated with the KC-46A tanker.

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Sources

  • This article summarizes reporting by Reuters and Bloomberg News.

Photo Credit: Boeing

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