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Austria has finalized a $1.7 billion deal with Italy’s Leonardo to purchase 12 M-346FA light combat and trainer jets, a move officials say is central to modernizing the air force and rebuilding the country’s long-lost jet-training capability.

The deal covers aircraft, weapons, simulators, training, and sustainment, with deliveries set to begin in 2028. The Defense Ministry announced the deal, saying that the new fleet “returns full training sovereignty” to Austria and ensures future pilots can complete the entire training pipeline at home.

Austria lost its indigenous training capacity in 2020 after retiring the Saab 105 fleet, forcing the country to rely on foreign partners for pilot training.

Officials said the current reliance on Italy and Germany for advanced jet training was no longer sustainable, citing both cost pressures and long-term planning constraints. By reestablishing domestic training, the government says the air force will gain greater control over scheduling, curriculum design, and operational readiness.

Two-Fleet Structure with Eurofighters

The Defense Ministry emphasized that the M-346FA acquisition does not replace Austria’s Eurofighter Typhoon fleet, which will continue to conduct air policing and high-intensity missions.

The M-346FA will operate as a complementary platform under a two-fleet structure: Eurofighters for air defense duties, and M-346FAs for training, light combat roles, and support operations.

Officials said the arrangement will reduce the burden on Eurofighters, which have often been used for training flights due to the absence of a jet trainer. Defense planners said this was costly and inefficient, noting that the M-346FA offers a far cheaper per-hour operating cost.

Cost and Industrial Cooperation

The $1.7 billion package places the unit cost of each M-346FA at roughly $92.8 million when all associated training, equipment, weapons, and sustainment services are included. The deal is among the largest defense procurements in recent Austrian history.

Vienna also signed a parallel industrial cooperation agreement with Italy valued at approximately $464 million. The cooperation plan includes Austrian participation in simulation technologies, aerospace components, digital systems, sensor development, and materials manufacturing. Austrian officials said this would “strengthen local industry, enable new research projects and secure domestic jobs.”

Leonardo welcomed the cooperation framework, saying it would deepen defense-industrial ties between the two countries and open opportunities for Austrian firms within the broader European aerospace supply chain.

Austria evaluated several alternatives before settling on the M-346FA. Defense planners said the decision was based on the aircraft’s dual-role capability, its compatibility with NATO air-training standards, and its ability to bridge the gap between basic training aircraft and high-performance fighters such as the Eurofighter Typhoon.

The officials also emphasized operational cost efficiency. The M-346FA consumes significantly less fuel and requires less intensive maintenance than front-line fighters, making it suitable for routine training and support operations. The Ministry described it as “a gain both as an operational platform and as a training aircraft.”

Aircraft Features and Capabilities

The M-346FA is the combat-capable variant of the M-346 advanced jet trainer and is equipped with upgraded avionics, a modern tactical data link, radar, and enhanced electronic warfare systems.

The aircraft can carry over 2,000 kg of weapons across seven hardpoints, including precision-guided bombs, air-to-air missiles, rockets, and reconnaissance pods.

Powered by two Honeywell F124-GA-200 turbofan engines, the aircraft has a maximum speed of around 575 knots (approximately 662 mph), a range of about 1,200 nautical miles, and a service ceiling of 45,000 feet.

The platform is designed to train pilots destined for 4th- and 5th-generation fighters while also performing close air support, counterinsurgency, tactical reconnaissance, maritime support, and interception of slow-moving aircraft.

Austrian officials said these features make the jet suitable for both peacetime and crisis-response roles, including border surveillance, limited combat missions, and support to civil authorities.

Deliveries of the aircraft are planned to begin in 2028, with Linz-Hörsching Air Base designated as the home of the new fleet. The base previously hosted Austria’s trainer aircraft and will undergo upgrades to accommodate simulators, maintenance facilities, and expanded training infrastructure.

The Defense Ministry said preparations at Linz-Horsching would include new hangars, digital training classrooms, weapons storage sites, and expanded maintenance areas. Officials said these investments would “modernize and future-proof” the air base for the coming decades.

Replacing the Saab 105

The Saab 105 entered Austrian service in the 1970s and was retired after nearly five decades of operations. Its grounding in 2020 created an immediate capability gap. Since then, Austrian pilots have relied entirely on foreign training programs, which the Ministry said created scheduling conflicts, delays, and increased costs.

The M-346FA is intended to fill this gap comprehensively, enabling Austria to produce new fighter pilots without external dependencies. Officials said the aircraft’s advanced simulation ecosystem will allow large parts of the training syllabus to be conducted on the ground, reducing flight hours and extending aircraft lifespan.

The acquisition marks a major step in Austria’s gradual modernization of its armed forces as the government works to address long-standing capability shortfalls across the military. Defence officials said the M-346FA fleet will serve for decades and form the backbone of Austria’s pilot training and light-combat operations.

The Ministry added that the deal strengthens cooperation with Italy and supports Austria’s broader goal of improving readiness, interoperability and air-defense resilience. With deliveries set to begin in 2028, the government said planning and base preparations will accelerate over the next three years.