FARNBOROUGH, England, July 21 (Reuters): Britain's new government secured an early defence win on Tuesday as Canada joined the delayed GCAP fighter jet programme, part of a wider push by European allies to reduce their reliance on U.S. weapons and military technology.
The move coincides with the Farnborough Airshow, the aerospace and defence industry's premier gathering, with wars in Ukraine and the Middle East driving demand for tools from combat drones and interceptor missiles to AI-enabled military software.
The airshow coincides with new Prime Minister Andy Burnham's first days in office. He named John Healey, who favours hiking the UK defence budget, as finance minister, while giving Health Minister Wes Streeting the defence brief.
The appointments boosted British defence and aerospace stocks on Tuesday, as markets bet companies would benefit from the new government's willingness to make Britain more war-ready.
"I'm looking forward to working with him in his new capacity," Rolls-Royce (RR.L) CEO Tufan Erginbilgic told reporters at the show on Tuesday, referring to Healey. "He understands Rolls-Royce and our agenda and how much we contribute to the country."
The new government's first announcement with foreign partners came on the Global Combat Air Programme, the stealth fighter being jointly developed by Britain, Italy and Japan. Canada joined as an observer, marking the first expansion beyond the founding members.
BAE Systems (BAES.L), Boeing (BA.N) and Saab (SAABb.ST) also signed a deal to advance a partnership to offer Britain a new fast-jet pilot training aircraft based on Boeing's T-7 system, as it looks for a replacement for the ageing Hawk fleet.

Photo from Reuters




