Leonardo is strengthening its expansion in Asia with a contract to supply combat aircraft to Indonesia. Jakarta’s Ministry of Defence has signed an agreement with the Italian aerospace, defense and security group for 12 M-346F – Block 20 light multirole combat aircraft, in a deal worth around one billion euros. “The agreement also includes development of local capabilities for support, maintenance and training,” said CEO and managing director Lorenzo Mariani, who also noted the signing of a letter of intent for a potential supply of AW149 naval helicopters to the Indonesian navy. The announcement was made at the Farnborough International Airshow.
On the European front, Mariani welcomed recent changes in the UK government and the strategic defence review announced by new Defence Secretary Wes Streeting, calling it central to the group’s prospects: “It contains crucial elements for Leonardo, particularly regarding the GCAP and autonomy-related technologies.” He confirmed that the company will officially participate in the UK competition for the Loyal Wingman loyal-wingman drones and reiterated full confidence in the UK’s commitment to a sixth-generation fighter, while acknowledging past uncertainty over timing for the New Medium Helicopter (NMH) programme. The NMH programme will ensure continuity for the Yeovil plant in the short to medium term, with a long-term goal of turning the site into a centre of excellence for autonomous aircraft. Mariani also emphasized the importance of British export support, citing the example of Eurofighter talks in Turkey.
In the advanced unmanned aircraft sector, LBA Systems — the 50/50 joint venture between Leonardo and Turkish company Baykar — was declared fully operational. Mariani commented on prospects related to Ukraine and praised the exceptional expertise the Ukrainian industry has developed in the drone sector: “The knowledge the Ukrainian industry has gained during the conflict is truly remarkable, having been exposed to unique threats and operational experience. There are no specific targets or official agreements to announce today, but I strongly believe a successful partnership between Leonardo and Baykar should also include cooperation with the Ukrainian industry.”
Returning to the order book announced at Farnborough, the helicopter portfolio was boosted by a significant Middle East order from The Helicopter Company, based in Saudi Arabia, which has ordered eleven AW139s under a framework agreement that allows for up to 130 aircraft. “We are going through a complex but opportunity-rich phase,” Mariani concluded, noting that the group’s multi-domain approach effectively addresses new defence needs. “The results achieved confirm the solidity of our chosen path. The priority for the future is to accelerate by increasing production capacity to build the momentum needed to support growth in the coming years.” (by Alessandro Allocca)