Bombardier, UK's BAE explore partnership for future combat aircraft programs

Oct 28 (Reuters) - Canadian business jet maker Bombardier said on Wednesday it had signed a strategic agreement with BAE Systems to explore opportunities to develop industrial and technology capabilities for future combat air programmes.

Under the memorandum of understanding, the companies will assess opportunities in research and development, systems integration, workforce and supply-chain development, industrialisation and lifecycle support as Canada deepens its involvement in next-generation combat air initiatives.

The agreement underscores Bombardier's push to expand its defence aerospace business.

CEO Éric Martel said earlier this year the company saw growing opportunities for its defence unit, which converts business jets into special-mission aircraft, as Canada and Europe boost military spending and seek to diversify away from US defence firms amid geopolitical tensions.

Bombardier's agreement with BAE comes months after Canada joined the Global Combat Air Programme, or GCAP, as an observer.

Britain, Italy and Japan launched GCAP in 2022 to develop a next-generation stealth fighter by 2035. The programme is led by Britain's BAE Systems, Japan's Mitsubishi Heavy Industries and Italy's Leonardo.

The Financial Times reported last week that Airbus executives were set to meet BAE Systems counterparts to discuss the European planemaker's potential participation in GCAP, citing people familiar with the matter.

(Reporting by Nandan Mandayam and Aatreyee Dasgupta in Bengaluru; Editing by Shilpi Majumdar)