ROME — The tri-nation industrial consortium behind the GCAP fighter program is set to get its next major contract before the Farnborough airshow this month, after the U.K. came up with essential funding on the day that cash flow for the jet was due to run out.
Sources close to the program told Defense News the next contract was made possible by the U.K.’s timely commitment of £8.6 billion ($11.4 billion) over four years to the U.K.-Italy-Japan jet program in its its long-awaited Defence Investment Plan (DIP), which was published on Tuesday.
The cash means the three nations can now hand a contract before the biennial U.K. airshow near London to Edgewing, the industrial consortium representing firms from the three nations, said the source, who spoke on condition of anonymity.
Originally due last year, the U.K. DIP was delayed as generals and politicians battled over defense funds. With little sign of the row abating, the U.K.’s partners on the sixth generation GCAP grew increasingly anxious over delays in the program, which is due to put a plane in the air by 2035.
In April the partners signed a stopgap contract to keep work going for three months to give the U.K. time to find long-term cash.
The joint program office created by the three nations announced the signing of a £686 million development contract with Edgewing, which teams local champions BAE Systems, Leonardo, and Japan Aircraft Industrial Enhancement Co. Ltd. (JAIEC).
On Tuesday, three months on, the DIP was unveiled by outgoing UK prime minister Keir Starmer, saving blushes in London.
“The money for the GCAP in the DIP is slightly more than the £6bn we expected,” said Francis Tusa, the editor of UK site Defence Analysis.
Getting the cash was not however certain, he added.
“The Italians were irritated by the U.K. delay and the Japanese even more so. I was told that the Japanese prime minister threatened to pull out of a planned visit to the U.K. before the G7 in June and go and see the French instead,” he said.
During the U.K. visit by the Japanese, Prime Minister Starmer signed a commitment to find the funds, Tusa said.
It is believed that Andy Burnham, who is likely to become Britain’s next prime minister, will seek to stand by the GCAP commitments.
After Edgewing is handed a contract to continue work on GCAP, it is expected to hand its own contracts to tri-nation consortia managing the electronics and propulsion on the jet.
Tusa said the way forward for the jet was not entirely risk-free.
“The British defense ministry wanted £28 billion for the DIP and has received £15 billion, of which £4.7 billion still needs to be found in this year’s budget. Additionally the ministry has to come up with £10.7 billion in savings. The GCAP money announced now by the U.K. will get the Italians and the Japanese off its back for now, but there are still details to be worked out,” he said.
Tom Kington is the Italy correspondent for Defense News.
