Photo/Illutration The projected next-generation fighter jet to be used by the Air Self-Defense Force (Provided by the Defense Ministry)

Government officials are concerned they will lose out on playing a leadership role in developing the next-generation fighter jet for the Air Self-Defense Force.

Japan reached an agreement in December with Britain and Italy to jointly develop a new fighter jet.

The three companies involved in the endeavor--Mitsubishi Heavy Industries Ltd., Britain’s BAE Systems Plc and Leonardo SpA of Italy--will establish a joint venture for the development of the aircraft to replace the F-2, according to sources.

The head office of the new company will be in Britain, mainly because the corporate tax rate there is low. British companies also have a proven record of developing and exporting fighter jets.

But with the head office in Britain, Japan will not likely play a leadership role in the joint development project. That had been considered a key factor when government officials were considering which nation to work with in the joint development project.

Originally, the United States had been the leading candidate because of its long history of being an ally to Japan. Some officials had suggested partnering with Britain, however, would make it easier for Japan to play a leadership role.

That optimism now appears to have been premature.

Developing a fighter jet is a massive undertaking, with costs normally running into the trillions of yen. Government officials had hoped the competitiveness of the domestic defense industry would have been strengthened if a leadership role was obtained in the joint development.

The joint-venture proposal emerged during discussions in Britain in January among officials from the three nations, according to government sources.

Having a new company in charge of development was considered preferable to an arrangement bringing together the personnel and technology from the three nations.

Defense Ministry officials are now moving to permanently base officials in Britain to work on the joint development of the aircraft. 

(This article was written by Nobuhiko Tajima and Ryo Aibara.)