Deterrence means to have defensive and offensive capabilities, emphasizes Dr. Michael Schöllhorn, President of the German Aerospace Industries Association (BDLI).

Mr. Schöllhorn, what are the main themes of the ILA 26, and what is its underlying overall concept?

This year, we expect 650 exhibitors from 35 countries who will showcase the future of civil and military aerospace. Competitiveness, technology, and sovereignty are the main focuses. The overall concept is based on straightforward logic. In a world of systemic rivalry, technological superiority and the strength of the industry are prerequisites for our freedom of action in Europe.

How is the heightened security policy situation affecting the development and strategic approach of the aerospace industry?

Those of us in Europe must regain a credible deterrent capability and prepare for the possibility of once again facing adversaries who use state-of-the-art technology, ranging from unmanned systems to hypersonic missiles. Deterrence means that an adversary knows we have the defensive capabilities to protect ourselves and the offensive capabilities to counter them.

How can we achieve this?

First and foremost, we achieve this through technological excellence. We have the industrial requirements; now we must move quickly to make them available. If we want to have a credible deterrent capability by 2029, then every month counts. This means we need the courage for “spiral development.” A fully functional, adaptable solution that is 80 percent complete today is more valuable than a “perfect” system that will be ready in ten years. At the same time, we must look beyond 2029 and consistently work on ongoing development and technological maturation. This is the only way we can continue providing cutting-edge technology over the next decade.

And secondly?

The second issue is about numbers, materiel readiness, and endurance. We must be able to support and modernize systems across the entire technological spectrum, including both hardware and software. This includes making supply chains more resilient, down to the critical components and raw materials. We also need new contract models for strategic stockpiling of materiel so that our armed forces can rely on healthy inventory for the long haul.

The German Bundeswehr is the largest single exhibitor. In light of the growing threat situation, how is cooperation between the industry and the German armed forces developing?

Close cooperation between industry and the Bundeswehr is a proven success model with decades behind it. We know how to maintain systems over the long term, improving them as they are used. Now, we must adapt this model to the requirements of national and alliance defense in the 21st century. This is necessary because the pace of innovation is accelerating – in hardware and, above all, in software. This is why industry and the troops must work more closely together. User feedback must be incorporated more quickly and systematically into development, updates, and retrofitting. As an industry, we can use this feedback to adapt systems consistently and equip the Bundeswehr so that it can fulfill its mission. To accomplish this, we need suitable innovation spaces where we can collaborate on testing and experimentation, such as the new Bundeswehr innovation center in Erding.

What is the impact of the ongoing development of the Eurofighter program?

The Eurofighter is the backbone of the German Air Force, a position it will maintain for many years to come. With tranche 5 and the long-term evolution (LTE) development package, we are in the process of making the aircraft fit for the future. The goal is to develop a Eurofighter with network capability that can coordinate with unmanned systems.

The effectiveness of the Air Force will be determined by the interaction of manned and unmanned systems. While drones will not replace manned fighters, they will massively multiply their effectiveness. This is precisely why the Eurofighter is more than just a weapons system to us. It is a carrier of capabilities and technology, and the bridge to sixth-generation systems when it comes to networking and software-defined defense. In a sense, it is the mediator between generations of technology.

Which other military programs are particularly important to you?

Credible deterrence requires three things: a dense network of air defense, air supremacy, and the ability to operate freely in space. These are the basic requirements. A robust and powerful package of defensive and offensive capabilities is crucial. Defensive capabilities alone are not enough. We need both a “spear” and a “shield” to deter attacks and, if necessary, to quickly resolve conflicts in our favor.

What does that mean, exactly?

Specifically, it means having a multi-layered air defense system that can protect against drones and ballistic missiles, as well as longrange deep strike capabilities that can effectively engage enemy targets in the hinterland. Traditional platforms, such as manned combat aircraft, combat helicopters, and transport aircraft, will remain central to achieving air supremacy. The decisive difference is that they will be more closely networked in the future. Networking is the key. Without seamless integration of all platforms – from the A400M to the combat helicopter – even a huge volume of materiel will be ineffective. Space is also becoming increasingly important for the Bundeswehr.

How well are we positioned in this area, in both the civilian and military sectors?

Space is the “first domain” of every modern conflict. Without sovereignty in space, we are blind and deaf on the ground. Here, we still have a lot of catching up to do, especially in the military sector. Currently, the Bundeswehr only operates a few of its own satellites, most of which are outdated. Future demand will be in the mid three-digit range. This has been recognized, and the issue is being addressed with determination.

And how is Germany positioned?

In terms of technology, very good. We are at the forefront in the fields of Earth observation, radar technology, and navigation. However, sovereignty also requires secure access to space. We need our own flexible launch capabilities, that is, more of our own launch vehicles and a consolidation of the European space industry. In order to remain competitive against global giants while fostering a vital ecosystem for start-ups and small and medium-sized enterprises, we need a “European space champion.”

How would you rate the Federal Government’s space security strategy?

We expressly appreciate this initiative. A defensible and resilient space security architecture is essential for deploying modern weapon systems across all dimensions. Now, the ambitious plans must be translated into concrete programs. Our industry requires planning security for the substantial investments it takes to reflect technological diversity and meet tight deadlines. The state must act as a strategic pacemaker and shaper.

What prerequisites and framework conditions does the German aerospace industry need to be successful in the long term?

Our order situation is of course also a reflection of the tense security situation. At the same time, like much of industry, we as a sector are feeling the burden of excessive bureaucracy and high energy prices. The industry is under clear political pressure to ramp up production. This also means that we are proactively stockpiling critical, essential raw materials in case of an emergency. We accept this expectation, but we need the appropriate framework conditions, such as contract models that compensate for a production or raw material capacity reserve.

Our procurement system has shown that it can act flexibly, such as by recognizing foreign certifications from other NATO countries, so time is not lost through re-approval procedures. This makes it difficult to understand why we, as a domestic industry, often have to undergo years of complex national approval processes. This is especially true when procurement of foreign systems is fast-tracked, while domestic innovations are slowed down by lengthy political coordination processes. A level playing field would send an important signal, especially regarding speed. Second, we need genuine industrial capacity planning and then ordering to match, including planned surge capacity to replace failed systems. As I mentioned, we need the option for spiral development without penalties in the award process. At the same time, we see that the Bundeswehr, as a customer, demands and promotes competition. For example, parallel development is permitted in the early phases to select the right system for the troops later. This is an important step forward.

In the long term, how can defense capability and economic value creation in Germany be aligned?

Overall, we need an industrial policy that is confident, committed, and comprehensive and that consistently expands defense and resilience, key factors in attracting business and creating value. Accordingly, we should not forget that according to the Kiel Institute for the World Economy (Moritz Schularick), every euro invested in domestic industry generates a fiscal multiplier of up to 1.6. Security is therefore also an investment in our future prosperity. In particular, we in the aerospace industry are positioned internationally and are dual-use by nature, meaning we combine civilian innovation with security capabilities, which are necessary for us to assert ourselves in an increasingly uncertain international situation.

What are you personally most looking forward to at the ILA in Berlin next June?

I am looking forward to seeing on the static display just how far we have come with our innovative programs, such as unmanned aerial systems, and how tangible the results are becoming – we don’t wait, we act. Most of all, though, I’m looking forward to exchanging ideas with our customers and users among the troops. Hearing that our systems make a difference in daily use is what really drives us. The ILA 2026 will demonstrate: Europe is ready to set an industrial pace for security.

Mr. Schöllhorn, thank you very much for the interesting conversation!

Defence Technology Review: Air Power