Austria finalizes $1.7B M-346FA jet deal with Leonardo
Austria’s Ministry of Defense has finalized the long-anticipated purchase of 12 M-346FA light combat and trainer aircraft from Italy’s Leonardo.
According to the Austrian government, the aircraft will be based in Linz-Hörsching starting in 2028, replacing the Saab 105 fleet retired in 2020. Each M-346FA unit is priced at approximately €80 million ($93 million), with the complete procurement package—including weapons, simulators, training, and maintenance—totaling around €1.5 billion ($1.7 billion).
In a statement, Defense Minister Klaudia Tanner said the acquisition provides dual value: “The M-346 is a gain both as an operational platform and as a training aircraft. The government-to-government approach guarantees transparency, and the procurement is a central component of the Build-Up Plan 2032+.”
The deal completes a strategic initiative long on hold: a two-fleet structure for Austrian air defense. Under this model, Eurofighter Typhoons will continue to perform high-intensity airspace control, while the M-346FA will assume roles in training and lower-intensity operations. Until now, Austria lacked the second component, limiting its training and operational flexibility.
With the M-346FA’s entry into service, Austria regains the ability to train pilots domestically. Since the retirement of the Saab 105, Austrian Air Force cadets have undergone flight training abroad—primarily in Germany and Italy. The return of full-spectrum flight instruction to Austria is expected to reduce long-term costs and enhance operational independence.
Parallel to the acquisition, Austria signed an industrial agreement with Italy projected to generate €400 million ($464 million) in domestic industrial value. The deal includes collaboration in aerospace engineering, digital systems, materials technology, and sensor development, with work distributed across the Austrian aviation supply chain and R&D institutions.
Economics Minister Wolfgang Hattmannsdorfer emphasized the economic impact: “This cooperation returns an investment volume of around €400 million to Austria. It strengthens industry, enables new research projects, and secures jobs.”
Officials said the agreement adheres to both national security interests and European Union procurement regulations. Participating Austrian firms will be selected based on their ability to offer the best technical solutions within that framework.
The government’s stated goal is to maximize the return of taxpayer investment through domestic value creation, boost technological sovereignty, and maintain a robust industrial base within the country.
Austria’s security and defense sector includes around 150 companies, employs over 11,000 personnel directly, and supports an additional 20,000 jobs in supplier industries. The industry generates approximately €3.3 billion ($3.8 billion) annually, with a research investment rate of 7.5 percent.
Recent modernization programs, including barracks upgrades and armored vehicle acquisitions, have demonstrated the government’s commitment to sourcing domestically whenever feasible. For example, more than 90 percent of construction contracts and over 70 percent of the value in the recent Pandur procurement remained within Austria.
