Dassault Aviation and Airbus Defence and Space both deepened ties with Portuguese industry within three days, positioning the Rafale and the Eurofighter Typhoon for Portugal’s eventual F-16 replacement, even though Lisbon has yet to open a formal procurement process.
On September 23, 2026, Dassault, acting for Rafale partners Thales and Safran, signed a memorandum of understanding (MoU) with AED Cluster Portugal, the national aerospace and defense industry association, at the French Embassy in Lisbon.
According to Dassault, the agreement follows the official submission of a Rafale bid to the Portuguese government and air force in July 2026.
Two days later, Airbus and AED Cluster presented a white paper describing the industrial package Airbus would implement if Portugal bought the Typhoon. The joint release says the package would span 40 years and bring manufacturing, software development, cybersecurity and maintenance, repair and overhaul (MRO) work to Portuguese companies.
Airbus says it would double its procurement from Portuguese suppliers after a purchase, without giving a baseline.
Four fighters now courting Portuguese industry
The two European bids join the Lockheed Martin F-35A and the Saab Gripen E. All four manufacturers now have agreements with AED Cluster.
Lockheed Martin signed its MoU on June 3, 2025, to identify Portuguese F-35 suppliers. Airbus followed in October 2025 and Saab in December 2025.
In March 2026, Saab pitched Gripen production work for Embraer-controlled OGMA.
The F-35 remains in contention despite Defense Minister Nuno Melo questioning a US purchase in March 2025. In February 2026, the US ambassador to Portugal urged Lisbon to buy the jet.
Portugal has yet to open the F-16 replacement
The Portuguese Air Force flies 28 F-16AM/BM jets from Monte Real Air Base, some more than three decades old.
On July 31, 2026, while visiting Portuguese F-16s deployed to Estonia for NATO air policing, Melo said the jets would “necessarily have to be replaced in the near future.”
Once the process opens, he said, a technical evaluation and comparative study would weigh the geopolitical context before the government decides.
Cartaxo Alves told Lusa on September 19, 2026, that the program will be included in Portugal’s new Military Programming Law, a 12-year investment plan due in parliament before the end of 2026. The law is expected to allocate funding for the replacement program but not determine which aircraft Portugal will buy.