Home » Ukraine/fighter jets: wings for defence company stocks 

Ukraine/fighter jets: wings for defence company stocks 

by admin

Volodymyr Zelenskyy’s tour of European capitals could bring Ukraine closer to acquiring fighter jets. It will provide wings to freedom and be a profitable updraft for defense companies. They are already benefiting from Ukraine-related orders: Gripen fighter maker Saab Accelerate Friday Sales Guidance.

The Ukrainian presidential campaign to win the jet faces a series of obstacles.He is still building the necessary Western consensus. America has said no To the transfer of the widely used F-16, manufactured by Lockheed Martin.British-built Eurofighter Typhoon thinking of sending Developed by BAE in a consortium, it may require approval from Italy, Spain and Germany.

The operational challenges are numerous, from the training required, to the logistics required to operate and maintain the fleet, to the local terrain. The Typhoon was not designed to operate from short or rough runways like in Ukraine, according to think tank Royal United Service Institute.

These difficulties may be insurmountable. The political red line regarding the provision of increasingly sophisticated equipment to Ukraine is subject to change. It may also be possible to operate spacecraft in less-than-optimal conditions, or to send planes that are better suited for their purpose. Saab’s Gripen his jets, especially his 80 older jets owned by Sweden, the Czech Republic and Hungary, are touted as cheap and agile options.

It is not yet clear whether Zelensky’s plea will succeed. If so, it will give further impetus to the European rearmament supercycle. But not all aircraft sent to Ukraine need to be replaced with newer models. Some may be older planes already slated for retirement. In addition, jet aircraft are long-lead products that take several years from order receipt to delivery.

The exercise will still contribute to the modernization of the European fighter fleet. This is a long term project. Agency his partner Sashtusa estimates that European air forces will need to acquire up to 350 fighter jets over the next decade, in addition to existing orders. Expected costs are up to €50 billion. Zelensky’s wings will accelerate this process.

Lex recommends the FT’s due diligence newsletter. This is a curated briefing on the world of mergers and acquisitions.click here sign up

Related Posts

Leave a Comment