Eurofighter fleet to get high-tech overhaul in €1.2 billion German contract

Germany is poised to award Saab and Northrop Grumman a €1.2 billion ($1.41 billion) contract to upgrade its Eurofighter fleet with advanced missile and sensor capabilities, the sources familiar with the matter confirmed.

The deal will equip the aircraft with Saab’s Arexis sensor system and Northrop Grumman’s AGM-88E anti-radar missiles, enhancing the fighters’ ability to detect and neutralize ground-based air defence systems, Bloomberg reports.

This procurement is part of a broader defence modernization effort led by German Defence Minister Boris Pistorius, who is seeking parliamentary approval for more than 80 defence contracts by the end of 2025. The package includes plans for 20 additional Eurofighter jets and thousands of new tanks and armored vehicles.

The Eurofighter upgrade contract also signals a potential deepening of defence collaboration between Germany and Sweden. Officials see this as a stepping stone toward joint development of a next-generation fighter jet, intended to replace the Eurofighter fleet by the 2040s. This move comes amid frustrations with the ongoing Future Combat Air System (FCAS) program—a trilateral effort involving Germany, France, and Spain—due to slow progress and disagreements over French manufacturer Dassault Aviation’s demand for a controlling role.

Bloomberg reported earlier this month that Germany’s defence ministry and coalition lawmakers are considering options to proceed without France if Dassault’s demands persist. Potential new partners under consideration include Sweden and the UK, reflecting Berlin’s concerns over political instability in Paris and stalled negotiations.

The upgrade contract names several key industry players, including German drone startup Helsing, Britain’s BAE Systems, Franco-German aerospace giant Airbus, and Italy’s Leonardo. The German defence ministry declined to comment on the pending deal.

German parliamentary approval is expected in the first half of October. The contract and broader defence cooperation will be a key topic in talks between German Defence Minister Boris Pistorius and Swedish Defence Minister Pål Jonson in Berlin this week, where discussions will also focus on joint military procurement and security collaboration.

The Eurofighter enhancements follow increased NATO activity in the Baltic region, where German Eurofighters intercepted a Russian military surveillance aircraft last weekend. Saab’s shares in Stockholm surged following news of the contract, underscoring market confidence in the deal’s significance for European defence modernization.

By Vafa Guliyeva