Austria has yet to sign a single concrete industrial-offset order several months after agreeing to buy 12 Leonardo M-346FA aircraft from Italy. Leonardo committed to generating about €400 million in business for Austrian companies, but industry representatives report that discussions have so far produced no satisfactory results. The aircraft are due to enter Austrian service from 2028, initially at Zeltweg.
The intergovernmental procurement agreement, finalised at the end of November 2025, is worth about €1.5 billion and includes the two-seat, twin-engine aircraft, training, logistics and technical support. The industrial-cooperation programme is intended to cover aerospace engineering, supplier industries, digitalisation, materials technology, simulation and sensor research over 15 years.
The Austrian government presented the arrangement as a means of strengthening technological sovereignty, stabilising supply chains and protecting jobs. However, the €400 million figure is a target for future cooperation, not the value of contracts already awarded. Talks between Austrian companies and Leonardo are continuing, while potential suppliers must first complete Leonardo’s registration process before competing for tenders.
The Austrian Federal Economic Chamber and the Austrian Research Promotion Agency are involved in implementing the programme. An industry event reportedly focused mainly on supplier registration rather than specific contracts or investments, raising concerns that the long implementation period could produce numerous small projects without significant or lasting benefits for Austrian companies.