Dassault Signs MoU With Portugal in Rafale F-16 Replacement Bid

Dassault Aviation has formalized an industrial cooperation agreement with Portugal’s national aerospace association, advancing its campaign to replace the Portuguese Air Force’s aging fleet of 28 Lockheed Martin F-16AM/BM Fighting Falcon aircraft.

Signed on September 23, 2026, at the French Embassy in Lisbon, the Memorandum of Understanding (MoU) connects the French manufacturer with AED Cluster Portugal. In a press release issued the same day, Dassault stated the agreement will explore potential areas of cooperation between the Portuguese industrial sector and the primary Rafale program partners, which include Thales and Safran.

The fighter replacement program

The Portuguese Air Force (Força Aérea Portuguesa) is currently evaluating options to modernize its combat capabilities as its F-16AM/BM fleet nears the end of its service life. In December 2025, the Portuguese Air Force Chief of Staff publicly indicated a preference for the United States-built Lockheed Martin F-35A Lightning II. The Portuguese Ministry of Defense has not finalized a formal decision or purchase order, leaving the procurement process open to competing bids.

This pending status has allowed European aerospace manufacturers to pitch alternative platforms. Dassault Aviation officially submitted its bid proposing the Rafale fighter to the Portuguese Government and Air Force in July 2026.

Leveraging local industry

The MoU with AED Cluster Portugal, an organization comprising more than 180 companies, universities, and research institutes, represents a calculated offset strategy. By offering to integrate Portuguese firms into the global supply chain for the Rafale, Dassault aims to provide localized economic benefits to support its bid.

Dassault is not alone in this approach. Swedish manufacturer Saab has proposed the JAS-39 Gripen E, offering technology transfers and local production partnerships with Portuguese aerospace company OGMA. Other European manufacturers, including Airbus with the Eurofighter, have also emphasized European defense sovereignty in their respective pitches to Lisbon.

AirPro News analysis

The competition in Portugal highlights a recurring tension in European defense procurement. On one side is the operational pull of the F-35A, which offers fifth-generation capabilities and seamless interoperability with a growing number of North Atlantic Treaty Organization (NATO) allies. On the other side is the strategic push to sustain the European defense industrial base.

Dassault’s MoU is designed to shift the procurement conversation from purely military specifications to broader economic and political benefits. By promising high-value aerospace work to local industry, European bidders are attempting to make their platforms politically attractive to government decision-makers, even when military leadership has signaled a preference for the American alternative.

Sources: Dassault Aviation