Airbus has proposed splitting Europe’s future fighter jet project into two separate aircraft.
The suggestion comes amid a dispute with Dassault Aviation over leadership of the €100bn Future Combat Air System (FCAS).
The FCAS programme, launched in 2017, includes a next-generation fighter, autonomous drones and a combat communications cloud.
Airbus represents Germany and Spain, while Dassault leads France’s interests.
Tensions have stalled progress on the fighter component.
Chief executive Guillaume Faury said a deadlock should not derail Europe’s broader defence ambitions.
He said Airbus would support a two-fighter solution if governments request it.
German chancellor Friedrich Merz recently said the proposed jet may not meet Germany’s needs.
Germany does not require a nuclear-capable aircraft, unlike France.
Berlin, Paris and Madrid must soon decide whether to proceed or scale back the fighter element.
Meanwhile, Airbus reported a 23% rise in annual profit to €5.2bn.
However, supply chain issues have hit production of its A320 jets.
Engine shortages from Pratt & Whitney have forced the company to lower output expectations.
