On July 23, 2026, Rolls-Royce announced the finalization of a subcontract with French aerospace services provider Sabena technics to deliver proprietary MissionCare propulsion support for the joint French-German Lockheed Martin C-130J Super Hercules fleet. The agreement embeds original equipment manufacturer (OEM) personnel directly into the squadron’s operational environment to maximize engine availability.

The propulsion support agreement, which runs through December 2030, serves as a direct follow-on to the overarching CAROLUS operational readiness and maintenance program. France’s Directorate of Aeronautical Maintenance (DMAé) awarded the 10-year CAROLUS prime contract to Sabena technics in January 2026 to create an integrated maintenance ecosystem for the binational squadron.

Fleet integration and operational readiness

The Binational Air Transport Squadron (BATS), based at Évreux-Fauville Air Base 105 in France, operates a combined fleet of 10 Military-Aircraft. This includes five standard C-130J transport aircraft and five KC-130J aerial refueling variants, all powered by Rolls-Royce AE 2100D3 turboprop engines.

Under the MissionCare framework, Rolls-Royce will provide flight-hour-based sustainment services. The Contracts structure places Rolls-Royce Field Service Representatives and logistics personnel directly alongside Sabena technics teams on the ground.

In a press release detailing the agreement, Meagan Rater, Director of US Mature Programmes for Defence at Rolls-Royce, emphasized the operational focus of the Partnerships.

“Bringing our MissionCare program to the joint French-German C-130J fleet means we can embed our team directly alongside Sabena technics. This is not just a services contract, it is a hands-on partnership where our OEM engineering expertise will be on the ground every day. By integrating our Field Service Representatives and logistics directly into their daily operations, we are ensuring maximum engine availability and keeping these critical strategic assets flight-ready for every mission.”

Strategic maintenance ecosystem

The integration of the engine manufacturer into the daily maintenance workflow is designed to reduce operational risk for the European multinational air mobility fleet. Sabena technics Chief Executive Officer Hervé Grandjean noted that bringing Rolls-Royce into the CAROLUS ecosystem completes the company’s vision for an integrated support network.

“With the award of the CAROLUS contract, our vision is to build an integrated support network capable of guaranteeing availability for the French-German fleet. Bringing Rolls-Royce into this ecosystem with their MissionCare program completes that vision. With the engine OEM embedded alongside our teams on the ground means we are proactively managing aircraft readiness together, ensuring the vital, binational squadron is always ready to deploy.”

AirPro News analysis

We view this subcontract as a clear indicator of the growing preference among European defense ministries for integrated, flight-hour-based sustainment models over traditional transactional maintenance. By embedding the OEM directly at the squadron level, the DMAé and Sabena technics are prioritizing guaranteed readiness for high-demand tactical airlift and aerial refueling assets. The structure of the CAROLUS program effectively shifts the burden of supply chain and engineering risk from the military operator to the commercial partners.

Sources: Rolls-Royce

CAE Inc. and Leonardo S.p.A. announced an expanded collaboration agreement on July 22, 2026, at the Farnborough International Airshow to develop a next-generation technology roadmap for the M-346 Integrated Training System (ITS). The partnership will integrate Live, Virtual, and Constructive (LVC) environments to prepare military aviators for increasingly autonomous and artificial intelligence-enabled battlespaces.

The agreement builds on the existing joint operation of the International Flight Training School (IFTS) located in Decimomannu, Sardinia, Italy. According to the joint press release, the companies will focus on advancing the M-346 Block 20 system features and expanding Live Synthetic Integration (LSI) capabilities to meet evolving tactical training requirements for global air forces.

Advancing the M-346 Integrated Training System

The technology roadmap outlined by CAE and Leonardo targets the integration of advanced simulation with live flight operations. As military aviation shifts toward next-generation air operations, the training syllabus must adapt to environments where pilots manage complex, automated mission systems rather than focusing solely on aircraft handling.

Pascal Grenier, President of CAE Defense & Security, highlighted the operational focus of the expanded partnership in the company’s official statement.

“Our longstanding collaboration with Leonardo and the International Flight Training School (IFTS) stands as the premier example of combining highly sophisticated simulation technologies and live flight training to deliver world-class pilot instruction and operational readiness.”

Grenier added that future battlespaces will place unprecedented demands on pilots, requiring training environments that build judgment, adaptability, and decision-making skills. Stefano Bortoli, Managing Director of Leonardo Aeronautics, noted that the agreement will strengthen the development of highly skilled pilots for current and future operational requirements.

Expanding Global Footprint and Financial Context

The Farnborough announcement follows a series of recent international agreements involving the M-346 platform. On May 26, 2026, ITPS Canada ordered Leonardo M-346 T Block 20 advanced jet trainers. Subsequently, on July 21, 2026, Leonardo signed a procurement contract with PT ESystem Solutions and the Ministry of Defence of the Republic of Indonesia for M-346 F aircraft to fulfill Indonesian Air Force training and combat requirements.

Leonardo also utilized the Farnborough event to highlight its broader defense sector momentum. On July 22, 2026, the manufacturer signed a separate agreement with Lockheed Martin to strengthen maintenance, repair, and overhaul (MRO) services for the C-130J Super Hercules across Europe and the Middle East and North Africa regions.

The press release detailing the CAE partnership also provided an update on Leonardo’s financial standing. The company reported 2025 new orders totaling €23.8 billion, an order backlog of €46.6 billion, and consolidated revenues of €19.5 billion.

AirPro News analysis

We view this expanded CAE and Leonardo partnership as a necessary evolution in military flight training. As sixth-generation fighter programs and collaborative combat aircraft concepts mature, the cognitive load on pilots will shift heavily from basic airmanship to systems management and tactical battle management.

By embedding LVC and LSI technologies directly into the M-346 ITS roadmap, Leonardo and CAE are positioning the platform to remain relevant against emerging clean-sheet trainer designs. The recent string of international orders for both the trainer and fighter variants of the M-346 indicates that the airframe still has significant market runway, provided the synthetic training environment keeps pace with frontline combat systems.

Sources: Leonardo Press Release

Embraer S.A. and Anduril Industries signed a Memorandum of Understanding (MoU) on July 21, 2026, to integrate the pallet-launched Barracuda-500M stand-off cruise missile into the C-390 Millennium military transport aircraft. The agreement, announced at the Farnborough International Airshow in the United Kingdom, introduces a kinetic strike role to the Brazilian manufacturer’s tactical airlifter.

In a press release issued by Embraer, the companies confirmed the partnerships aims to allow the C-390 to conduct palletized launches of kinetic effects. This capability enables dispersed operations and allows transport aircraft to serve as stand-off launch platforms without requiring permanent structural modifications.

Expanding the C-390 Millennium mission profile

The C-390 Millennium features a payload capacity of 26 metric tons (57,300 pounds) and a cruise speed of 470 knots. Integrating a palletized launch system allows operators to roll munitions on and off the aircraft using standard cargo handling procedures, temporarily converting the airlifter into a strike platform.

“By exploring the integration of stand-off launch capabilities for palletized, kinetic, and non-kinetic effects, we are further expanding the aircraft’s flexibility to meet the evolving needs of modern air forces,” said Bosco da Costa Junior, President and CEO of Embraer Defense and Security.

Anduril’s Barracuda-500M integration

Anduril Industries first successfully tested a pallet-launched Barracuda-500M (B-500M) in September 2024. The system is designed for rapid production and scalability to meet high-volume munitions requirements. On July 15, 2026, Anduril secured a procurement framework agreement with the United States Department of Defense (DoD) for large-scale production of the Barracuda 500 series, with deliveries scheduled to begin in 2027.

“Integrating the pallet-launched Barracuda-500M with Embraer’s C-390 Millennium gives allied militaries a new way to generate massed, stand-off effects from a proven airlift platform,” said Greg Kausner, Senior Vice President for Global Defense at Anduril Industries.

Kausner added that the Barracuda family of systems delivers operationally relevant capabilities to meet the growing demand for affordable munitions.

Global market demand

The C-390 has gained significant traction in the military-aircraft transport market. To date, 12 countries have selected the aircraft, including Brazil, Portugal, Hungary, the Republic of Korea, the Netherlands, Austria, the Czech Republic, Uzbekistan, Sweden, the United Arab Emirates, Slovakia, and Lithuania.

According to da Costa Junior, the push for palletized munitions is driven directly by customer interest. He noted that Embraer is receiving demand for this capability from several countries across Europe and Asia.

While the companies have not provided a specific date for the first live test of the B-500M from a C-390, Embraer representatives indicated the integration process can be completed rapidly.

AirPro News analysis

We view the Embraer and Anduril partnership as a direct response to the growing tactical interest in “arsenal plane” concepts. Programs like the U.S. Air Force Rapid Dragon have demonstrated the viability of deploying long-range strike weapons from standard cargo aircraft. By partnering with Anduril to offer a turnkey palletized strike capability, Embraer significantly enhances the value proposition of the C-390 Millennium against competitors in the tactical airlift sector. For smaller air forces that cannot afford dedicated heavy bomber fleets, outfitting a multi-role transport aircraft with stand-off cruise missiles provides a highly cost-effective deterrent.

Sources: Embraer