How Leonardo warms up for the other 24 Eurofighters for the Air Force
The government has forwarded to the House and Senate commissions the request for a parliamentary opinion on the draft ministerial decree approving the multi-year A/R program no. SMD 1/2024, relating to the acquisition of 24 Eurofighter Typhoon aircraft. The repercussions for Leonardo, prime contractor
New Eurofighter Typhoons for the Italian Air Force.
Last week the government forwarded to the House and Senate commissions the request for a parliamentary opinion on the draft ministerial decree approving the multi-year A/R program no. SMD 1/2024, relating to the acquisition of 24 F-2000 aircraft (and the technical logistics support of the entire fleet (176).
The ministerial decree which started the legislative process on 4 July, as explained by Equita reported by Radiocor , provides for investments of 8 billion to be spread over 30 years for the purchase of 24 Eurofighters for the Air Force, including technical and logistical support.
Four countries participate in the Eurofighter program: Italy, Germany, Spain and the United Kingdom. It is managed on an industrial level by the Eurofighter Consortium in which Leonardo (with 21%), Airbus Group and Bae Systems participate.
And in this scheme Leonardo is "prime contractor and would have a significant share of this order" say the experts of the Milanese SIM. The business plan , presented by the company, includes the contribution of orders from the Eurofighter, "but it has never been quantified" and in any case the news is positive because "it improves the visibility of order collection".
The government's new investments in the defense sector are pushing the Leonardo stock to Piazza Affari, without forgetting the future industrial synergies with the Germans Rheinmetall.
All the details.
THE ACQUISITION OF A NEW 24 EUROFIGHTER FOR ITALY BEGINS
Italy is planning to buy 24 new Eurofighter jets under the scheme presented late last week by the Italian government. The relevant parliamentary committees are expected to provide their opinion on the purchase program by mid-August, paving the way for final approval. No further details are available at the moment.
Last month, Germany also announced it would purchase 20 more Eurofighters. Chancellor Scholz had indicated that the order to the consortium involving Airbus, Bae Systems and Leonardo will arrive before the next German elections scheduled for the second part of 2025.
RID'S COMMENT
Returning to the Italian program, "Presumably these should be aircraft – which will progressively replace the TYPHOON Tranche 1 in service – to the NG (Next Generation) standard, characterized mainly by a new LAD (Large Area Display), a newly developed mission computer generation, high-performance AESA radar CAPTOR-E Mk2, renewed electronic self-protection system and ability to control/manage so-called gregarious drones", observes Pietro Batacchi, director of Rid .
“Beyond the configuration of the aircraft, which we will discover later, this is an order of strategic importance which allows us to enhance the capabilities of the AM, to act as a bridge towards the gcap (Global Combat Air Programme) and to maintain adequate volumes for the Leonardo Velivoli factory in Caselle” concludes the director of Rid .
THE ROLE OF THE EX FINMECCANICA GROUP
In our country, the project has its strategic, productive and technological center of gravity in the Leonardo sites in Turin.
With a share of 21%, which reaches 36% also considering the responsibilities for the construction of the airframe, avionics and on-board electronics, Leonardo participates in the Eurofighter program in the definition, development and production of the aircraft. The Italian defense group supplies more than 60% of the electronic systems on board the aircraft.
Furthermore, Leonardo plays a particularly important role in the evolution of the Eurofighter thanks also to the new AESA (Active Electronically Scanned Array) radar.
THE EFFECTS FOR LEONARDO FROM THE EUROFIGHTER PROGRAM
Finally, Banca Akros also agrees on the relevance of the news for the former Finmeccanica group.
“Leonardo is the prime contractor for the new Eurofighter fighters of the Air Force” and even if “the news has circulated several times in recent months, now there is an official step from the Italian government” noted the experts at Banca Akros . From this point of view “it seems that the process will be rapid” and “we wonder if the Air Force will be able to enter into a contract as early as this summer”. Summing up, Leonardo "is aiming for new orders for 19.5 billion euros in 2024" and "we consider the news potentially very positive for the stock, which continues to trade at a strong discount compared to peers". The broker thus confirms "the confident Buy rating on the stock".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/come-si-scalda-leonardo-per-gli-altri-24-eurofighter-per-laeronautica-militare/ on Tue, 09 Jul 2024 09:09:29 +0000.