Stock Markets July 7, 2026 07:42 AM

NATO Chooses Saab GlobalEye to Replace AWACS in Multi-Billion Dollar Program

Alliance picks Swedish-built surveillance jets over a U.S. rival, with potential deliveries from 2030 and negotiations now under way

By Sofia Navarro
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NATO has announced plans to acquire up to 10 Saab GlobalEye surveillance aircraft in a program valued at roughly $4.5 billion to replace aging E-3 AWACS early warning planes. The alliance selected the Swedish GlobalEye over Boeing’s competing E-7 Wedgetail, saying the business-jet based system will strengthen detection capabilities against modern threats while entering formal talks with Saab on pricing and delivery timelines.

NATO Chooses Saab GlobalEye to Replace AWACS in Multi-Billion Dollar Program
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Key Points

  • NATO has provisionally selected Saab’s GlobalEye to replace E-3 AWACS early warning aircraft, with a procurement plan valued at about $4.5 billion for up to 10 planes.
  • Saab said it could begin delivering aircraft from 2030 if a contract is signed soon; the company estimated each plane would cost roughly $400 million to $450 million, though final pricing is not yet agreed.
  • The choice favours a business-jet based system mounted on Bombardier Global 6500 airframes and was presented as a transatlantic programme involving European and Canadian industries with key contributions from U.S. suppliers.

NATO has unveiled a plan to procure up to 10 Saab GlobalEye surveillance aircraft in a purchase program valued at about $4.5 billion to replace its older Airborne Warning and Control System (AWACS) fleet. The selection favors the Swedish GlobalEye over a U.S. alternative offered by Boeing.

Secretary-General Mark Rutte outlined the rationale for switching from the Cold War-era AWACS platforms, which are widely recognised for their large rotating radomes, to a newer concept built around smaller business jets. He said the GlobalEye architecture is intended to better address contemporary threats, such as massed drone attacks, and to preserve NATO’s surveillance and early warning capability well into the future.

"This will ensure we keep NATO’s... surveillance and early warning capability strong and credible for decades to come," Rutte said at a NATO summit event.

Rutte also emphasised the international nature of the GlobalEye programme, noting the aircraft are mounted on Bombardier Global 6500 business jets and that the programme involves European and Canadian industry partners along with significant contributions from U.S. suppliers. He framed the project as a transatlantic effort rather than a single-nation procurement.

The NATO announcement comes amid ongoing political pressure from U.S. leaders for allied countries to increase defence spending and to prioritise purchases of American-made equipment. That context has included repeated criticism by the U.S. president of European reliance on America for security and calls for more defence procurement from U.S. manufacturers.

The Saab GlobalEye competes directly with Boeing’s E-7 Wedgetail, an early warning and command-and-control aircraft derived from the 737 airframe and designed to perform oversight and battle-management functions.

NATO characterised the GlobalEye as a "mission-proven" system but did not provide further detail on that assessment in the announcement. With the provisional selection now public, formal negotiations between NATO and Saab have begun.

Saab's chief executive, Micael Johansson, said the programme could be valued at up to $4.5 billion and told reporters that, if a contract were signed soon, Saab could begin delivering aircraft in 2030. He said the final contract price had not yet been settled but estimated a per-aircraft range of roughly $400 million to $450 million.

The ultimate number of aircraft NATO will procure remained unclear in public statements, in part because planners were still debating whether to order a pricier variant equipped for mid-air refuelling. A person familiar with the discussions indicated the initial batch of GlobalEye aircraft would not be delivered with aerial refuelling capability, but that capability was expected to be integrated in a later upgrade.

By contrast, the current E-3 AWACS fleet in NATO service can be refuelled in flight, a feature that has been useful during missions close to Ukraine. NATO did not say whether the initial GlobalEye configuration would alter operational patterns or deployment ranges in the near term.


Program status

  • NATO has announced a provisional selection of Saab’s GlobalEye to replace E-3 AWACS aircraft.
  • Formal negotiations between NATO and Saab are now under way; deliveries were described as possible from 2030 if a deal is concluded soon.
  • Saab CEO Micael Johansson estimated a total programme value of up to $4.5 billion and a per-aircraft price in the $400 million to $450 million range, subject to final agreement.

Context

The decision highlights a shift toward smaller business-jet based airborne surveillance platforms and reflects trade-offs between baseline cost, capability options such as aerial refuelling, and industrial participation by multiple NATO-member countries.

Risks

  • Uncertainty over final configuration and quantity - Planners are still debating whether to procure a version with mid-air refuelling capability, which would affect unit cost and operational range; this impacts defence procurement budgets and aerospace contractors.
  • Delivery timeline and contract finalisation - Saab said deliveries could start in 2030 if a deal is signed soon, but final pricing and contract terms remain unresolved, creating timing and financial risk for both NATO planning and Saab's production scheduling.
  • Interoperability and capability gap - Initial GlobalEye deliveries are not expected to include aerial refuelling, a capability the existing AWACS fleet has and which has proven useful in operations near Ukraine; this could affect mission endurance and logistics planning for military operations.

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