Boeing wants a bigger slice of Europe's surging defense spending

Business Insider

a day ago

Boeing expects to significantly expand its operations in Europe as defense and geopolitical tensions take center stage at this week's Paris Air Show.
Tuesday's media briefing, Boeing 's first of the event, focused on its partnerships with European firms and growing defense opportunities on the continent.
"We're expecting a very, very significant expansion in the next 10 years, and that is not just across our services business, but across additional programs," said Turbo Sjogren, senior vice-president for government services.
With the war in Ukraine continuing, and the US becoming increasingly isolationist under President Donald Trump, European governments are increasing their defense spending.
"There is a real threat, and a growing threat on the continent," said Tim Flood, an executive at Boeing's defense, space, and security division.
He said Boeing expected several countries to increase their defense spending pledges at next week's NATO summit.
"There is a growing need for industrial self-reliance and a growing push for European autonomy, which is driving the way European countries are going to procure," Flood said.
Defense won't be affected by Trump's tariffs as much as commercial aviation, given the structure of the contracts.
However, rising tensions around the world have still prompted more European countries to seek more control over their defense programs.
"The aerospace supply chain is global. Nobody can do it themselves. Maybe the Chinese can try, but certainly the rest of us, we're going to have to work together," Sjogren said.
He said programs developed in the US and Europe would continue to rely on components made on both sides of the Atlantic.
"These are great companies that provide great service, and they do some things better than we do," Sjogren added. "Why would we try and do work where we've got a local partner who can do it better than us?"
Geopolitics overshadowed the first day of the Paris Air Show, as organizers closed off the stands of four Israeli defense companies.
The Israeli defense ministry said in a statement that the French government ordered offensive weapons to be removed from the displays.
Meanwhile, many attendees from the Middle East have pulled out of the air show, including the CEO of Qatar Airways.
"The number of engagements we were expecting to have, particularly with a number of Middle Eastern countries, has dropped off sharply," Sjogren said.