German Air Show Faces Iran War Impact and Fighter Project Collapse in Berlin
By Joanna Plucinska and Christina Amann
BERLIN, June 10 (Reuters) - Germany's ILA air show opened on Wednesday under the twin shadows of the Iran war and the collapse this week of a flagship Franco-German fighter jet project, clouding what is meant to be one of Europe's premier aerospace showcases.
The Berlin event, which dates back to 1909, puts a large slice of Europe's defence industry on display as companies pitch new technology to governments and military buyers.
It also highlights the push by European manufacturers to narrow the gap with U.S. rivals and persuade governments to back them as the region ramps up defence spending.
Yet the build-up to the show was dominated by the scrapping of the Franco-German Future Combat Air System (FCAS), long billed as Europe's most ambitious defence project but ultimately undone by industrial rivalry. Its demise has underscored the difficulty Europe faces in building military capacity at scale.
The decision comes as Western officials warn of a growing threat from Russia and the U.S. presses Europe to re-arm more quickly.
RESHAPING ALLIANCES
Airbus, which represented Germany and Spain in FCAS, is increasingly looking to Sweden's Saab as a preferred partner, as companies jostle to reshape industrial alliances, three people familiar with the matter told Reuters.
The Iran war has added to the sense of unease, exposing strains in transatlantic ties and even raising questions about NATO's future, while also hitting airlines as flights are cancelled and jet fuel costs rise.
Chancellor Friedrich Merz, who has openly questioned whether a manned sixth-generation fighter jet still makes sense for Germany's air force, is due to address the show on Wednesday.
MTU Aero Engines Head of Programmes Ottmar Pfaender said decisions on how to proceed must be taken in the coming weeks, adding the engine maker was open to working with other companies.
Stephanie Lingemann, a senior executive at defence startup Helsing, said technologies such as software-driven defence systems and autonomy in warfare could now be folded into whatever follows FCAS.
"There's always a chance in these kinds of endings," she said.
WALKING TO THE VENUE
The air show is also a platform for Emirates President Tim Clark to press the German government for landing rights in Berlin, with one of the Gulf airline's A380 jets on display.
The opening day was disrupted by protesters who blocked roads to the venue while chanting slogans including "Free Palestine".
A Reuters witness said dozens of police were deployed, with buses unable to reach the site and hundreds of visitors forced to walk in, some complaining about the disruption.
Running from June 10 to 14, the ILA show will host more than 750 exhibitors from 37 countries.
Coinciding with its opening, Germany's cabinet approved a new 15-year aviation strategy aimed at cutting costs and boosting research to tackle rising expenses and intensifying foreign competition.
(Additional reporting by Maria Rugamer. Writing by Matthias Williams. Editing by Thomas Seythal and Mark Potter)
