On October 8, 2026, Saab AB and GKN Aerospace signed a long-term agreement to expand their cooperation on the propulsion system for the Saab JAS 39 Gripen E/F fighter aircraft, localizing critical engine support within Sweden.

Announced in a Saab press release, the partnership establishes GKN Aerospace as the preferred provider of engine services for the Gripen E/F platform. The agreement directly responds to a recent Swedish Government directive aimed at strengthening domestic industrial capacity and national defense capabilities, while also bolstering Saab’s international export campaigns.

Expanding domestic engine capabilities

The agreement tasks both companies with jointly creating the conditions to enhance Sweden’s national capability regarding the Gripen E/F engine. Moving forward, GKN Aerospace will progressively assume a greater role in engine-related matters for the program, providing expanded expertise, capacity, and technical support.

Johan Segertoft, Head of the Gripen Business Unit at Saab, stated that the agreement lays the foundation for establishing GKN Aerospace as the company’s partner in engine-related matters. Segertoft noted that the Gripen program is built on strong industrial partnerships.

“For Saab, being able to contribute to strengthening Sweden’s fighter aircraft capability and domestic industrial capacity is of utmost importance,” Segertoft said.

Sara Eklöf, Senior Vice President of Governmental Solutions for Defence and Space at GKN Aerospace, highlighted the technical complexity of the platform. Eklöf stated that the agreement expands the supplier’s role in supporting the long-term development of the propulsion system for what she described as one of the world’s most advanced fighter aircraft systems.

The RM16 powerplant and GKN’s maintenance history

The Saab JAS 39 Gripen is a light single-engine multirole fighter. The older Gripen C/D variants are powered by the RM12 engine, for which GKN Aerospace serves as the original equipment manufacturer (OEM) and holds the military type certificate.

The newer Gripen E/F variants utilize the RM16 engine. The RM16 is a derivative of the General Electric F414 aero-engine, the same powerplant used in the Boeing F/A-18E/F Super Hornet.

In 2020, the Swedish Defence Materiel Administration (FMV) selected GKN Aerospace to provide product support, maintenance, repair, and overhaul (MRO) services for the RM16 engine. This initial selection was designed to utilize synergies between the existing RM12 infrastructure and the new RM16 platforms. The October 8 agreement builds upon this foundation, formalizing GKN Aerospace’s expanded role in the lifecycle of the newer engine variant.

Export campaigns and international production

While the agreement focuses heavily on domestic industrial capacity, Saab emphasized that deepening the collaboration with GKN Aerospace strengthens the platform’s competitive offering in the global market. Saab, which employs approximately 29,000 people, is actively pursuing international export campaigns for the Gripen E/F.

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The engine support agreement follows a major milestone for the aircraft’s international production footprint. On October 6, 2026, the first Saab JAS 39 Gripen E manufactured outside of Sweden completed its maiden flight. The aircraft departed from Embraer‘s Gavião Peixoto aerodrome in São Paulo State, Brazil.

This flight marked a key step in Saab’s technology transfer program with Embraer and the Brazilian Air Force (FAB). The aircraft is the first of 15 scheduled to be produced in Brazil under the current technology transfer program.

AirPro News analysis

We view this agreement as a necessary step for Sweden to insulate its defense supply chain against geopolitical volatility. By localizing RM16 engine support with GKN Aerospace, Saab and the Swedish Government are reducing reliance on external maintenance networks for a critical national defense asset. Guaranteeing robust, localized lifecycle support for the propulsion system also provides Saab with a stronger value proposition when pitching the Gripen E/F to prospective export customers who demand sovereign maintenance capabilities.

The first Saab Gripen E fighter aircraft assembled outside of Sweden completed its maiden flight on October 6, 2026, at Embraer’s industrial complex in Gavião Peixoto, Brazil.

The successful flight validates a decade-long technology transfer program between Saab AB and Embraer S.A., establishing the only active supersonic fighter production line in South America. Embraer announced the milestone in a press release on October 7, 2026, marking a critical step toward delivering the locally produced aircraft to the Brazilian Air Force (FAB).

Validating the technology transfer program

The maiden flight took place at 10:21 local time, piloted by Saab Chief Test Pilot Jakob Högberg. The event serves as the primary physical validation of the industrial partnership between the Swedish aerospace company and its Brazilian counterpart. Under the agreement, Embraer engineers and technicians received extensive training at Saab’s facilities in Linköping, Sweden, before returning to establish the parallel production line in São Paulo state.

Bosco da Costa Junior, President & CEO of Embraer Defense & Security, described the flight as a historic milestone for the country’s aerospace sector that confirms the success of the long-term strategy combining FAB’s vision, Saab’s technological expertise, and Embraer’s industrial capabilities.

“More than an achievement for the Gripen Program, this milestone demonstrates that the competencies developed over the years have become real and proven industrial capabilities in Brazil, strengthening our Defense Industrial Base and our ability to participate in highly complex global defense programs.”

Marcus Wandt, Head of Saab’s Business Area Aeronautics, noted that the maiden flight proves the Brazilian production line has reached a new level of maturity, establishing a solid foundation for the fighter’s future development in the region.

Building South America’s supersonic production base

The Brazilian Gripen Program, known as FX-2, originated with a 2014 contract in which the Brazilian government ordered 36 aircraft. The order comprises 28 single-seat Gripen E models and eight two-seat Gripen F models. The Brazilian Air Forces designates the aircraft as the F-39E and F-39F.

While the initial aircraft were manufactured entirely in Sweden, the contract mandated a comprehensive technology transfer to build long-term national competencies in Brazil. Embraer inaugurated the Gripen E final assembly line at Gavião Peixoto on May 9, 2023. The facility officially unveiled the first locally assembled airframe on March 25, 2026. Of the 36 aircraft in the initial order, 15 are planned for production at the Brazilian facility.

The Brazilian Air Force already operates the type. The Gripen E entered operational service with the First Air Defense Group (1st GDA) at Anápolis Air Base on December 19, 2022. Prior to this new locally built delivery, the 1st GDA operated 10 Gripen E fighters manufactured in Sweden. Following the completion of its flight-test campaign, this newly flown aircraft will be transferred to Goiás State to join the active fleet.

Expanding the Saab and Embraer partnership

The maiden flight in Brazil follows closely behind another major program milestone. On August 28, 2026, the two-seat Gripen F variant completed its own maiden flight in Linköping. Brazil serves as the launch customer for the F model, which was developed jointly by Saab and Embraer engineers.

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The industrial footprint at Gavião Peixoto may expand beyond the initial 15 airframes. In July 2026, Embraer and Saab signed a Heads of Agreement to deepen their cooperation. The agreement contemplates the potential production of 20 additional Gripen aircraft in Latin America, allowing the Swedish manufacturer to offer regional assembly and technology transfer as part of future export packages.

AirPro News analysis

We assess that the successful local production of the Gripen E fundamentally shifts Embraer’s position in the global defense market. By proving its ability to assemble a modern supersonic fighter, the Brazilian manufacturer not only secures its domestic defense industrial base but also creates a viable second export hub for Saab. This dual-production strategy could prove critical if Saab secures further orders in Latin America, allowing the Swedish manufacturer to offer regional assembly and technology transfer as part of future export packages.

For Embraer, the Gripen production line complements its success with the C-390 Millennium transport aircraft. Operating a live fighter production line elevates the company’s technical credentials when bidding for complex international defense contracts, proving that its engineering workforce can absorb and execute highly classified, third-party intellectual property at scale.

BAE Systems has secured a contract from Lockheed Martin to manufacture the AN/ASQ-239 electronic warfare suite for Lots 20 through 22 of the F-35 Lightning II program, sustaining production of the fighter’s critical electromagnetic defense capabilities.

The agreement, announced in an October 6, 2026 press release, ensures both new-build aircraft and retrofitted jets will receive the advanced systems required to detect, jam, and counter threats in contested airspace. Neither BAE Systems nor Lockheed Martin disclosed the financial value of the Lots 20-22 order.

Sustaining the F-35’s electromagnetic defenses

The AN/ASQ-239 is the built-in electronic warfare (EW) suite for the F-35 Lightning II. The system provides 360-degree situational awareness, radar warning, targeting support, and self-protection capabilities. It is designed to detect and geolocate electronic emitters, allowing the aircraft to evade, engage, counter, or jam threats.

Amber Dolan, Vice President of F-35 Solutions at BAE Systems, stated that the company has continuously evolved its EW hardware and software to maintain a decisive battlespace advantage for operators.

“We’re laser-focused on scaling production and delivering software-based capabilities to meet the rapid pace of conflict,” Dolan said.

Manufacturing for the Lots 20-22 contract will take place at BAE Systems facilities in Austin, Texas, and the New Hampshire cities of Manchester, Merrimack, and Nashua.

The Block 4 modernization context

The F-35 program is currently undergoing a major modernization effort known as Block 4, which relies heavily on upgraded electronic warfare capabilities and new processors under the Technology Refresh 3 (TR-3) initiative.

The EW upgrade has been described as the centerpiece of the Block 4 improvements, designed to outpace emerging threats and provide more powerful signal processing. On December 15, 2021, BAE Systems received a $493 million contract to upgrade the F-35’s EW system specifically for the Block 4 modernization program.

The F-35 serves as the primary fifth-generation fighter for the US Air Force, Navy, and Marine Corps, alongside numerous allied nations. The EW suite is critical for the aircraft’s survivability in contested environments against modern integrated air defense systems, enemy fighters, and missiles.

BAE Systems’ footprint in the program

BAE Systems has supplied the EW suite for every F-35 built, delivering over 1,500 units to date.

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The British multinational defense, security, and aerospace company employs over 110,000 people globally and operates across air, land, sea, space, and cyber domains. Its US subsidiary, BAE Systems, Inc., is headquartered in Falls Church, Virginia.

AirPro News analysis

We view the continuation of the AN/ASQ-239 production through Lots 20-22 as a critical stabilizing factor for the broader F-35 supply chain. While the financial terms of this specific lot order remain undisclosed, the electronic warfare suite represents the core of the aircraft’s survivability and lethality upgrades under the Block 4 framework. As global threat environments become increasingly contested by advanced integrated air defense systems, the ability of BAE Systems to scale production across its Texas and New Hampshire facilities will be a key metric in meeting the operational demands of the Air Forces and its international partners.