COVID-19's Impact On Key U.S. And European Aircraft Programs
June 26, 2020
FVL
Outlook: Negative High risk cost elements within FARA and FLRAA programs likely to be re-examined. Increased focus on through life costs may adjust acquisition strategy, particularly in relation to FLRAA.
A400M
Outlook: Negative High cost of platform is likely to deter export sales thereby limiting scope for future production. Attempts may be made to slow deliveries and renegotiate existing contracts with European customers
F-35
Outlook: Stable Program likely to be protected in order to sustain A&D supply chain which is already under pressure. Some cuts to long term orders expected (Italy, UK) and global structure of supply chain may be reviewed.
Eurofighter
Outlook: Stable German order key to long term future of program. Pressure mounting to accelerate that purchase. Enhancements may be accelerated to improve export attractiveness but acquisition costs likely to limit exports.
Tempest/FCAS
Outlook: Positive Future combat aircraft project will become focus of efforts to sustain European A&D sector. Budgetary pressures likely to lead to greater cooperation and possible merging of the two projects.
Skyborg/Loyal Wingman
Outlook: Positive Need to generate additional squadrons and ‘combat mass’ likely to lead to increased focus on unmanned systems. Through life cost advantages likely to be key to enabling force structure adjustments.
Over the next four years, there will be a prioritization of funding for domestic programs and strategic re-assessment of key programs and force structure in the military aircraft markets. Here's what might happen to some of the key US and European aircraft programs.
