Austria has finalised a roughly €1.5 billion ($1.75 billion) deal that will lead to its air force fielding a dozen Leonardo M-346FA trainer and light combat aircraft from later this decade.

Detailed on 29 November, the order is the result of a government-to-government pact between Austria and Italy announced in December 2024.

Vienna says the twin-engined jets are being acquired at a unit cost of approximately €80 million, with its contract also covering the provision of armaments, ground-based training equipment and maintenance services.

Aircraft deliveries are due to commence in 2028, with the assets to be flown from the Austrian air force’s Linz-Hoersching air base. The service has lacked an advanced jet trainer capability since the retirement of its last Saab 105s in 2020.

Austria’s defence ministry notes than in addition to delivering a new in-country training capability, the combat-capable M-346FA also offers a lower-cost alternative to operating its 15-strong fleet of Eurofighter interceptors. It views the Italian-built type as a complementary system, capable of performing “lower-intensity missions”.

Defence minister Klaudia Tanner notes: “At the same time, industrial partnerships worth €400 million have been agreed upon, ensuring that a substantial amount of added value flows back to Austria.”

According to the defence ministry, that industrial participation package is to include projects in “aerospace engineering, the supplier industry, digitalisation, and research fields such as materials technology, simulation, and sensor technology”.