The Return of Export Credit? How the EU is Fighting for Fighter Jet Market Share in South Asia Quwa Premium

On 09 December, the Bangladesh Air Pressure (BAF) and Leonardo S.p.A signed a letter-of-intent (LoI) outlining a possible buy of Eurofighter Storm multirole fighters.

The LoI marks a major step ahead within the BAF’s efforts to modernize its fighter fleet, which dates again to 2017, when it issued a young for 12 new twin-engine multirole fight plane (MRCA).

Earlier than the LoI, the Bangladeshi authorities had signalled that it additionally approached China for brand spanking new fighters, such because the J-10CE, however the BAF is evidently trying in direction of the Storm. Certainly, as Dhaka apparently approached China, the BAF’s decision-makers have been in Italy evaluating their lead Western possibility.

The precise variety of plane ordered, their configuration, and different parts (e.g., offsets) will doubtless be finalized by follow-up negotiations. Nonetheless, the BAF requires 20 new fighter plane; thus, Dhaka may pursue a two-tranche program with Leonardo.

It’s unclear whether or not the BAF would pursue a second fighter sort to enrich the Storm or undertake a single platform-based drive construction (according to most trendy air defences). 

Given the inherently excessive value of fighter procurement, particularly for high-tech, high-performance plane just like the Storm, consolidating on a single platform and constructing a system-of-systems round it could be the cheaper possibility. 

The Storm is a part of the BAF’s broader modernization effort, which may even embody buying trendy surface-to-air missiles (SAMs) and long-range radars. 

Reviews point out that Turkiye’s Roketsan and Aselsan are partaking the BAF for its new built-in air defence system (IADS) necessities. 

If finalized, SAM techniques such because the Roketsan HISAR and SIPER collection would equip Bangladesh with a contemporary air defence stack tailor-made to neutralize high-speed missile threats, corresponding to India’s BrahMos (in distinction, Pakistan’s IADS posture has struggled with such threats).

Bangladesh’s present political management was amenable to procuring Chinese language platforms, however the Storm doubtless resulted from the BAF’s longstanding desire for a Western platform. In 2024, for instance, the French authorities reportedly entered into talks with Dhaka relating to a possible Rafale sale.

One may solely speculate on the “why” behind the BAF’s resolution, however in the end, one robust side is probably going a shift within the European Union’s (EU) coverage in direction of its defence trade.