The Political Economy of Military Aircraft, the Case of Europe

Josselin Droff, Jade Guiberteau, Camille Laville, Julien Malizard and Laure Noël

Defence and Peace Economics, 2024, vol. 35, issue 4, 464-503

Abstract: This article measures and discusses the continuities and changes in the procurement process in Europe by examining the influence of national preferences in terms of sovereignty, industrial issues, and strategic needs on procurement strategies. We focus on the aerospace defense industry and study four aircraft markets (fighter aircraft, transport aircraft, helicopters, and UAVs) in 30 European countries during the post-Cold War era. Our results reveal significant heterogeneity in terms of strategies. They suggest that European countries lack coordination in their aircraft procurement strategies; if a country has sufficient industrial capacity, it will seek to maximize national industrial benefits in its procurement choices, to the detriment of its European partners; conversely, if a country has no industrial capacity, transatlantic suppliers would be preferable to European ones. Members of the former USSR and Warsaw Pact have phased out old Soviet-era aircraft at different rates, depending on the market, with European suppliers benefiting more from this process than American ones. Overall, our study provides a comprehensive and nuanced perspective on the defense aircraft industry in Europe that can inform policymakers and stakeholders in this sector.

Date: 2024
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DOI: 10.1080/10242694.2023.2271816

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