This $6.1 Billion Fighter Jet Deal Puts BAE, Leonardo and Japan on a 2035 Clock

This $6.1 Billion Fighter Jet Deal Puts BAE, Leonardo and Japan on a 2035 Clock

July 9, 2026

LONDON, July 9, 2026, 15:03 BST

  • Edgewing has secured an 18-month £4.6 billion contract for the UK-Italy-Japan GCAP fighter programme.
  • The award follows a UK defence plan that earmarks £8.6 billion for GCAP over four years.
  • The next risk is execution: cost, schedule and any push to bring in more partners.

Britain, Italy and Japan have moved their next-generation fighter jet programme into a harder engineering phase, awarding Edgewing a £4.6 billion, or about $6.1 billion, contract to advance the Global Combat Air Programme, known as GCAP. The award gives the BAE Systems, Leonardo and Japanese industry-backed venture fresh money to push detailed design work toward a planned 2035 service date.

The timing matters. The contract landed after months of doubt over Britain’s funding share and just after the UK’s Defence Investment Plan committed £8.6 billion to GCAP over four years, easing a funding gap that had forced a shorter bridge contract earlier this year.

GCAP is meant to produce a sixth-generation combat aircraft — shorthand for a new class of fighter built around stealth, sensors, data links, artificial intelligence and the ability to operate with uncrewed systems. The UK government says the jet is targeted to enter service from 2035 and will sit alongside Typhoon, F-35 and autonomous aircraft in the future Royal Air Force.

Luke Pollard, Britain’s minister for defence readiness and industry, called the signing a “major step forward towards delivery.” The Ministry of Defence said the contract will help define key requirements and support testing before the programme moves deeper into development. Gov

Edgewing said the 18-month award will complete the advanced concept and assessment phase — the work that fixes core design choices before full development — and fund joint detailed design. Masami Oka, chief executive of the GCAP Agency, said the “future of GCAP has never been more assured,” while Edgewing Chief Executive Marco Zoff said the venture creates a “single engineering prime” for the three-nation effort. EDGEWING

The venture brings together Britain’s BAE Systems, Italy’s Leonardo and Japan Aircraft Industrial Enhancement Co., with each holding a one-third stake. The company is headquartered in Britain and is intended to remain design authority for the aircraft over its life.

Japan’s Ministry of Defense said the July 3 contract runs through the end of 2027 and should help solidify the programme’s base and accelerate development. That gives the three governments a near-term schedule marker, not just a political statement.

BAE is also working on a piloted supersonic demonstrator in Britain to test technologies needed for the future fighter. The company says manufacturing and assembly of the main structure are under way, with engine, ejection-seat and simulated flight-control work also supporting the programme.

The competitive backdrop has shifted. Reuters reported that the award followed the collapse of a rival Franco-German fighter effort, while Leonardo CEO Lorenzo Mariani said Germany would “certainly be a particularly valid partner” for GCAP, though any expansion would be a government decision. Reuters

For BAE, Leonardo and Mitsubishi Heavy Industries-linked Japanese partners, the contract secures more work but not the final aircraft. It also keeps alive the larger commercial argument for GCAP: share the cost of a very expensive fighter, protect national aerospace skills and later seek export orders where politics allow.

But the risks are still large. Fighter programmes are prone to cost growth, national workshare disputes and shifting military requirements, and Britain’s wider defence plan still leaves part of its additional funding to be settled at a later budget. The Commons Library said £4.7 billion of the UK plan’s extra £15 billion had yet to be confirmed at Budget 2026.

The next test is less ceremonial: whether Edgewing can turn three governments, three industrial bases and a 2035 target into a design that stays funded, exportable and on time.

Mateusz Brzeziński

Mateusz Brzeziński is a financial and technology journalist at Bez-kabli.pl, covering stocks, artificial intelligence, semiconductors and global market developments. He graduated from the Prague University of Economics and Business in the Czech Republic and previously worked in financial analysis before moving into business journalism. His reporting focuses on the companies, technologies and market trends shaping the global economy.

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