Airbus is exploring closer defence cooperation with Swedish aerospace and defence company Saab following the collapse of the Franco-German Future Combat Air System (FCAS) programme, according to sources familiar with the matter.

The discussions come as Europe reassesses its long-term military aviation ambitions amid growing security challenges and rising defence spending across the continent.

Airbus and Saab hold partnership talks

Sources said Airbus and Saab have been holding extensive talks for at least six months on potential partnership models, supported in part by increasingly close defence ties between Germany and Sweden.

Saab, the manufacturer of the Gripen fighter jet, is considered one of several options being evaluated by Airbus as it seeks new avenues for future combat aircraft development. The company is also reported to be maintaining contacts with partners involved in the Global Combat Air Programme (GCAP), a next-generation fighter initiative led by Britain, Italy and Japan.

A Saab spokesperson said any major cooperation would require political approval but stressed that the company remains open to partnerships across the defence sector. Airbus declined to comment on the discussions.

FCAS collapse reshapes European defence plans

The talks gained added significance after the formal breakdown of the FCAS programme, a project launched by France, Germany and Spain to develop a next-generation combat aircraft and related systems. Long-running disagreements between Airbus and France's Dassault Aviation over industrial leadership and work-sharing arrangements ultimately undermined the programme.

Speaking at the Berlin Air Show, Airbus Defence and Space Chief Executive Michael Schoellhorn confirmed that Saab was among the potential partners under consideration, while emphasizing that other options remain available.

"The German Air Force first needs to define more clearly what capabilities it will require in the future," Schoellhorn said.

Meanwhile, Italian defence group Leonardo said it would be open to Germany and Airbus joining the GCAP programme. Leonardo Chief Executive Lorenzo Mariani described Germany as a potentially valuable partner for the multinational project.

Analysts warn of challenges ahead

Defence analysts view the collapse of FCAS after nearly a decade of development as a significant setback for European defence cooperation. The outcome has reignited debate over whether future combat aircraft programmes should be pursued through broad multinational partnerships or more flexible industrial alliances.

Douglas Barrie, a senior fellow for military aerospace at the International Institute for Strategic Studies (IISS), said the developments highlighted the difficulty of aligning military, political and industrial priorities within large-scale defence projects.

Sweden previously pursued an independent path in developing the Gripen fighter jet, while France developed the Rafale and a consortium of European states produced the Eurofighter Typhoon. Stockholm has yet to announce its long-term strategy for participation in a next-generation combat aircraft programme.

Existing cooperation could pave the way

Industry sources say Sweden possesses both the technological capabilities and political willingness to deepen cooperation with Airbus should the necessary decisions be taken. Airbus and Saab are already cooperating in the field of unmanned systems, a partnership that industry observers say could provide a foundation for broader defence collaboration in the future. Contacts between the two sides have accelerated in recent months, with discussions initially focused on unmanned technologies potentially expanding into wider aerospace and defence projects.

Analysts caution, however, that Germany will face significant challenges regardless of the path it chooses, citing differing operational requirements, tight development schedules and the high costs associated with next-generation fighter programmes.(ILKHA)