NATO goes aircraft shopping at Turkey summit
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Illustration: Sarah Grillo/Axios
The latest NATO summit, held in Turkey this month, may be most remembered not for politicking and posturing, but for sideline dealmaking.
The big picture: The Ankara get-together concluded with more than $50 billion in new procurements on the books, according to the alliance's readout, as well as a handful of agreements to expand weapons production across borders.
- "One thing is clear: The money is there, and much more is coming. But this cash must be put to work," NATO boss Mark Rutte said at a defense-industrial-base forum that coincided with the summit.
- "It needs to purchase capabilities. It needs to actually deter and defend," he said. "Larger factories. New production lines. More capacity."
Zoom in: Here are some of the biggest deals and pacts announced:
Denmark, Finland, Germany and Norway will buy up to five MQ-4C Tritons, providing a boost to NATO intelligence collection.
- Northrop Grumman makes the massive drone, which can fly around the clock at altitudes greater than 50,000 feet. The alliance has in the past operated the company's RQ-4D Phoenix out of Italy.
A coalition of 11 allies, including Belgium, Canada, Lithuania and the Netherlands, plans to purchase up to 10 of Saab's GlobalEye aircraft for airborne warning and control.
- The estimated $4.5 billion deal could be seen as snubbing Boeing and its E-7 Wedgetail.
And yet another group of countries, Croatia, France and Spain among them, committed to a pooled Airbus A400M fleet, which can be used for troop and cargo transport as well as medical evacuation.
- Airlift capacity often goes underappreciated.
Lockheed Martin and Rheinmetall, backed by the U.S. and German governments, inked an agreement to co-produce the Army Tactical Missile System on European soil.
- It's a first — and pairs "proven U.S. technology with European manufacturing strength," according to Dennis Goege, a Lockheed executive.
RTX is considering additional suppliers in Europe for its Advanced Medium-Range Air-to-Air Missile, a move it said will improve supply chains and help satisfy air-defense demands.
- This comes months after the Dutch hinted at AMRAAM production in the Netherlands.
Between the lines: It's not often the public gets such a clear accounting of spending.
What we're watching: Who will actually meet their 5% NATO pledge, by when, and what it takes to convince voters the investments are, indeed, the right move.
The bottom line: "This is what teamwork looks like," Rutte said.
- "We need a transatlantic defense industrial revolution," he added. "The hum of machinery must become a roar. That sounds dramatic, but it can be done."
Go deeper: Business groups pledge improved NATO industrial output
