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Advanced combat aircraft project faces hurdle over costly GE engines

June 24, 2026By ePlane AI

Advanced Medium Combat Aircraft

GE F414 Engine

Engine Procurement

Advanced Combat Aircraft Project Faces Hurdle Over Costly GE Engines

Rising Engine Costs Challenge AMCA Development

The Defence Research and Development Organisation (DRDO) is encountering a significant obstacle in its Advanced Medium Combat Aircraft (AMCA) project due to the escalating costs of General Electric (GE) engines. As the agency progresses with the design and development of this next-generation fighter, the unexpectedly high price quoted by GE for the F414 engines has compelled DRDO to explore more affordable and adaptable alternatives.

While the technical discussions between GE and Hindustan Aeronautics Limited (HAL) regarding a joint venture to manufacture the F414 engine in India have concluded, commercial negotiations remain ongoing and are expected to extend over several months. This partnership aims to cover a comprehensive range of activities including procurement, technology transfer, licensed manufacturing, maintenance, repair and overhaul (MRO), spares, warranties, and delivery schedules. The F414 engines produced under this collaboration are intended to power both the Tejas Mark 2 and the initial variant of the AMCA. A more advanced AMCA variant is planned to utilize a higher-thrust engine currently being co-developed by Safran and HAL.

However, the immediate challenge lies in the cost of the F414 engines for the AMCA’s prototype phase. Initial estimates placed the price at approximately Rs 70–80 crore per engine, but the revised figure is reportedly nearly three times higher. Given the AMCA’s twin-engine configuration, the engine cost alone could escalate to $380–400 million (Rs 3,500–3,800 crore) per aircraft. This substantial increase raises serious concerns about the programme’s overall affordability and its impact on development timelines.

Exploring Alternative Engine Options Amid Global Trends

In response to these cost pressures, DRDO is actively seeking alternative engine suppliers. Globally, engine manufacturers are adapting to the evolving demands of next-generation combat aircraft by pursuing innovative partnerships and technologies. MTU Aero Engines, for instance, is advocating for collaborative ventures tailored to the emerging collaborative combat aircraft (CCA) market, emphasizing rapid and cost-effective market entry with scalable solutions. Rolls-Royce has secured funding from the US Air Force for its Orpheus autonomous fighter engine project, signaling a strategic shift toward alternative propulsion technologies.

Meanwhile, GE Aerospace continues to advance its engine technology, having completed initial ground tests of a hybrid CT7 demonstrator aimed at improving efficiency in future engines. However, these developments do not alleviate the immediate financial challenges posed by the current F414 engine pricing.

Progress and Partnerships in AMCA Prototype Development

The AMCA project remains a cornerstone of India’s future air combat capabilities. Recently, the Ministry of Defence invited three shortlisted consortiums to submit formal commercial and technical bids for manufacturing five prototypes of the aircraft. The contenders include Tata Advanced Systems Ltd (TASL); a consortium led by Larsen & Toubro (L&T) alongside Bharat Electronics Ltd (BEL) and Dynamatic Technologies Ltd; and another consortium comprising Bharat Forge, the public sector undertaking BEML, and Data Patterns.

The selected partner will collaborate closely with the Aeronautical Development Agency (ADA) under DRDO to build five flying prototypes and one structural test aircraft. Although a limited number of F414 engines from GE were initially sought for the design and development phase, the steep cost escalation has intensified efforts to identify viable alternatives. This search underscores the challenges India faces as it advances its flagship fighter programme amid evolving technological and economic constraints.

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Etihad and Swissport Extend Global Partnership

Etihad and Swissport Expand Global Partnership Etihad Airways and Swissport have formalized an agreement to extend their global partnership, increasing the number of airports where Swissport provides services to the UAE carrier from 30 to 40. This expansion will see Swissport deliver ground handling and cargo services at ten additional airports across Africa, Europe, North America, the Middle East, and Asia, broadening its operational footprint for Etihad. Enhancing Services and Innovation The partnership also includes plans to explore airport hospitality through Swissport’s Aspire lounge brand, which currently operates 110 lounges worldwide. Both companies have emphasized that technology and innovation will be central to their collaboration. They intend to focus on automation, artificial intelligence, and data-driven solutions, including the deployment of autonomous ground vehicles, to improve operational efficiency, service delivery, and the overall passenger experience. Challenges and Market Dynamics Despite the promising expansion, the partnership faces potential challenges related to aircraft availability. Etihad’s CEO, Antonoaldo Neves, recently identified limited aircraft as a significant medium-term constraint for the airline’s growth, particularly in key markets such as Africa and China. This limitation could slow the pace at which Etihad expands its network and, consequently, the rollout of Swissport’s services at new destinations. Market dynamics are also evolving as Swissport strengthens its position in the ground handling sector, notably in Saudi Arabia, following Flynas’s recent acquisition of an equity stake in the company. This development is expected to intensify competition among ground handling providers, especially in regions where Etihad and Swissport are expanding their cooperation. Industry analysts anticipate that rival firms may respond by enhancing their own partnerships and seeking to increase their market share in these strategic markets. The new agreement establishes a framework for Etihad and Swissport to add further airports and services as the airline’s network grows. It also emphasizes the development of workforce capabilities to support the partnership. Both companies have described the collaboration as flexible, designed to accommodate future expansion and adapt to evolving industry challenges and opportunities.

Sepehran Airlines B737 Returns to Mashhad After Tyre and Engine Issues

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Etihad Deploys Widebody Fleet to Meet Strong Demand

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Korean Air Finalizes $36.2 Billion Deal with Boeing

Korean Air Finalizes $36.2 Billion Aircraft Order with Boeing Korean Air has confirmed a landmark agreement to acquire 103 aircraft from Boeing, representing a $36.2 billion deal at list prices. The order encompasses a diverse mix of wide-body passenger jets, freighters, and single-aisle planes, reflecting the airline’s strategic intent to expand and modernize its fleet amid intensifying competition within the global aviation sector. Strengthening a Longstanding Partnership Amid Industry Challenges Originally announced in 2025, this transaction further solidifies the enduring relationship between Korean Air and Boeing. However, the airline faces significant challenges as it proceeds with this major investment. Rising fuel prices and ongoing disruptions to flight routes—particularly those linked to conflicts in the Middle East—pose risks to operational costs and scheduling. These factors may constrain Korean Air’s ability to fully leverage its expanded fleet in the short term. Market analysts and investors are closely scrutinizing the financial ramifications of such a substantial order. Some have voiced concerns regarding the timing and scale of the commitment, especially given the current headwinds facing the aviation industry. Korean Air’s move is also expected to influence competitive dynamics in the region. Rivals such as Vietnam Airlines may consider placing similar large-scale orders to preserve their market share, while other carriers might explore partnerships with alternative manufacturers like Airbus or Embraer, potentially reshaping the competitive landscape. Implications for Sustainability and Industry Evolution The agreement arrives at a critical juncture as the aviation industry faces mounting pressure to meet sustainability and decarbonization targets. With global efforts aimed at reducing carbon emissions by 2050, large-scale fleet renewals such as Korean Air’s are likely to intensify discussions around the adoption of new technologies and the future trajectory of commercial aviation. Despite the prevailing challenges, Korean Air’s significant investment underscores its confidence in long-term growth prospects and its commitment to maintaining a competitive position in the international market.

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Korean Air Finalizes Order for 103 Boeing Jets and Engines

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Embraer E195-E2 Features Distinctive Engine Placement Among Regional Jets

Embraer E195-E2 Features Distinctive Engine Placement Among Regional Jets Innovative Engineering for Larger Engines The Embraer E195-E2 distinguishes itself in the regional jet market through its innovative engine placement, necessitated by the integration of two Pratt & Whitney PW1900G geared turbofan engines. These engines feature a 73-inch (190 cm) fan diameter and a bypass ratio of 12:1, significantly larger than the General Electric CF34-10E engines used on the first-generation E195, which had 52-inch (132 cm) fans and a bypass ratio of 5.4:1. The adoption of such large engines presented a considerable engineering challenge, particularly given the aircraft’s low ground clearance. To accommodate the larger powerplants, Embraer undertook a comprehensive redesign of the wing, landing gear, and gear retraction system. The wing was reshaped with an upward bend inboard, creating a gull-wing configuration that raised the engine pylons. The landing gear was extended by 20 inches (51 cm) compared to the original E195, ensuring sufficient clearance during takeoff and landing. Rather than employing a single wing design across the E2 family, Embraer developed three bespoke wings, with the E195-E2’s wing boasting one of the highest aspect ratios in its class. Its wingspan measures 115 feet (35.1 meters), only marginally shorter than the larger Airbus A320neo, and features raked wingtips to enhance aerodynamic efficiency. Efficiency and Performance Gains The decision to equip the E195-E2 with larger fans was deliberate and central to Embraer’s performance objectives. Luis Carlos Affonso, Embraer’s Senior Vice President of Engineering, emphasized that the engines are “extremely large for the size of the aircraft.” Larger fans move greater volumes of air at lower velocities, which improves fuel efficiency and reduces noise. The PW1900G’s bypass ratio of 12:1—more than double that of the previous generation—contributes to a 25% reduction in fuel consumption per seat and delivers the lowest noise signature among narrowbody jets currently in production. Integrating these engines beneath a low-fuselage aircraft required more than technical innovation. The original E195’s landing gear and wing configuration provided adequate clearance for the smaller CF34 engines, but the new 73-inch fans would have been perilously close to the runway during critical phases such as takeoff rotation. Embraer’s redesign addressed these concerns, ensuring both safe ground clearance and optimal aerodynamic performance. Market Challenges and Commercial Prospects Despite the engineering advancements embodied in the E195-E2, Embraer faces significant challenges in a highly competitive regional jet market. Established manufacturers such as Airbus, Boeing, and China’s COMAC continue to vie aggressively for market share. Airbus executives have acknowledged the intensity of this competition, and industry responses to Embraer’s expanded E-Jet program have been mixed. While some airlines have shown interest in the new model, others remain cautious, carefully evaluating the aircraft’s advantages against competitive pricing and technological innovations offered by rivals. Moreover, Embraer must navigate the financial risks inherent in developing a larger single-aisle aircraft within an already saturated market. The company’s ability to balance its engineering innovations with economic realities will be critical as it seeks to expand its footprint and secure orders for the E195-E2. The distinctive engine placement of the Embraer E195-E2 underscores the manufacturer’s engineering capabilities, yet its commercial success will ultimately depend on how effectively Embraer contends with the pressures of a fiercely contested regional jet sector.

What Passengers Can Expect on Boeing’s New 777X Jet

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How Ethiopian Airlines Became Africa’s Leading Carrier Amid Gulf Competition

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Joby Aviation Extends Autonomous Flight Capabilities with Cross-Country Tour

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