BAE Systems Share Price Fell 3.72% on Trilateral Fighter Jet Treaty

The BAE Systems plc (LON: BA) share price fell 3.72% despite news of its involvement in the three-nation treaty between Japan, the UK and Italy. The company is one of the defence contractors involved in developing the advanced fighter jet. 

As reported earlier this month, this pact arrived a year after initiating the first significant defence industry cooperation among the three nations. This collaboration merged the individual next-generation fighter jet projects of London and Tokyo.

The treaty requires ratification by the parliaments of the involved countries and aims to have the fighter jet operational by 2035. The collaborative development stage is set to commence in 2025.

The Global Combat Air Programme (GCAP) will have its joint governmental headquarters and industry office in the United Kingdom. The initial chief executive of the government unit will be appointed from Japan, while the inaugural head of the industry entity will be an Italian, as per the announcement.

British Defense Minister Grant Shapps emphasised the project's complexity, stating, “No single nation can achieve this level of expertise alone. We combine our skills, equipment, design, and production capabilities.”

During a trilateral meeting in Tokyo earlier today, Shapps, alongside Japanese Defense Minister Minoru Kihara and Italian Defense Minister Guido Crosetto, highlighted the contemporary security challenges. 

Kihara underscored the importance of maintaining air superiority in today's complex security landscape. Although he did not specify who would lead the company, he assured that the selection would focus on finding “the best person for the job.”

The British government has disclosed that the cutting-edge supersonic stealth jet will have a radar system capable of processing data 10,000 times more efficiently than current technologies.

BAE also recently secured a contract worth $8.8 billion to manage and operate the Holston Army Ammunition Plant in Tennessee, as the U.S. Department of Defense (DoD) announced on Tuesday.

The contract spans a decade, beginning on January 1, 2024, and concluding on December 31, 2033. The scope of work includes producing explosives and overseeing the Holston Army Ammunition Plant operations.

BAE Systems share price. 

The BAE Systems share price fell 3.72% to trade at 1028.00p from Wednesday’s closing price of 1067.75p.