Austria has yet to sign a single industrial-offset contract linked to its purchase of 12 Leonardo M-346FA aircraft from Italy, despite continuing discussions between Austrian companies and Leonardo. The approximately €1.5 billion government-to-government package includes training, logistics and technical support, with deliveries of the two-seat, twin-engine aircraft scheduled to begin in 2028.
Italy and Leonardo committed to generating about €400 million in business for Austrian companies through a 15-year industrial-cooperation programme. Its proposed scope covers aviation technology, supplier industries, digitalisation, materials research, simulation and sensor technology. The figure represents a procurement objective rather than business already awarded or investments already made.
Austrian industry representatives describe the negotiations as difficult and say they have not yet produced satisfactory results. The detailed terms of the cooperation agreement have not been published, and no beneficiary companies, project values or delivery milestones have been identified.
The Austrian government presented the industrial package as a way to strengthen technological sovereignty, stabilise supply chains and support jobs. Industry circles have also cautioned that the 15-year term could result in numerous small projects with limited value for technological development or international competitiveness. Parliamentary consideration of demands for the full audit report on the procurement was postponed on 22 October.