The project, called the Global Combat Air Programme (GCAP), is a follow-up to the original 2022 agreement. The GCAP fighter is expected to replace the Eurofighter (which is scheduled to retire in 2040) and Japan's F-2.

The new company will be headquartered in the UK, with shares split evenly between the UK (BAE Systems), Italy (Leonardo), and Japan (Aircraft Industrial Enhancement), each holding 33.3%. The company's first CEO will be an Italian.

“Strengthening peacekeeping always comes with costs, and cooperation between governments and companies is essential. The GCAP project is a prime example,” said Roberto Cingolani, CEO of Leonardo, at the signing ceremony.

Participating countries said in November they were discussing inviting other countries to join the project. According to the Italian foreign minister, the program could be extended to Saudi Arabia.

BAE CEO Herman Claesen said the joint venture is expected to be established by mid-2025 and is open to new partners, but the final decision will rest with the governments of the three founding countries.

The GCAP project will share the cost of tens of billions of dollars among countries, while seeking orders from international markets to ensure production. The stealth fighter in the project is expected to coordinate operations with drones, with the first model expected to be launched in 2035.

Some experts say the timeline is ambitious, but Claesen insists: “That’s the official target and we’re on track.”

Meanwhile, France, Germany and Spain are developing their own next-generation fighter project, raising questions about whether Europe can sustain two decades-long programs.

The company's formation also quells concerns that the Labour government, elected in July, could cut or scrap GCAP after it conducts a defence review in 2025.

Cao Phong (according to Straitstimes, Reuters)