Gold rush atmosphere at Berlin's military air trade show

Will it one day be possible for climate-neutral planes to fly without leaving contrails? What does the rover that will be used to drill a two-meter-deep hole in Phobos, one of moons that orbits planet Mars, look like? These are just two of the questions being explored at the ILA in the German capital, one of the biggest air shows in Europe.

There is little evidence of the current crisis facing civil aviation because of the Iran war , and little talk about the worldwide complaints about high oil prices and fuel shortages , rising ticket prices and cancelled flights. At the opening, Michael Schöllhorn, CEO of Airbus Defense and Space and president of the German aerospace industry association (BDLI), spoke of "a record-breaking ILA."

In 2024, 600 exhibitors from 31 countries attended the trade show, whereas this year there are more than 750 exhibitors from 37 countries. "All the halls have been fully booked since November, and 300 political delegations from around the world are in Berlin," Schöllhorn said.

Defense industry is the main focus

The main focus is on the defense industry, which is booming as conflicts continue to proliferate around the world. In addition to the German military, the Bundeswehr, which is the largest exhibitor, there are major names present.

These include aircraft manufacturer Airbus and German defense giant Rheinmetall to Hensoldt, which specializes in highly complex sensor systems and radar technology, as well as the European defense conglomerate MBDA, whose most sought-after products include complex guided missile systems.Unmanned systems in the spotlight

Unmanned systems, particularly unmanned aerial vehicles (UAVs) or drones ,  are in the spotlight at the ILA this year. What began as a toy for tech enthusiasts has become a multi-billion industry.

A Bundeswehr soldier demonstrates the Black Hornet 4 in a "drone cage," a net-like structure stretched across several beams. The nano-UAV is used for military reconnaissance, and can detect heat sources and provide the operator with sharp images. The drone is so small that it is barely visible, and after the demonstration, it disappears into a box that a drone pilot can carry on a strap around their neck.

A larger drone presented by the German-Ukrainian joint venture Quantum Frontline Industries (QFI) is already ready for use on the front. It can fly up to 20 kilometers (12.5 miles) and carry up to four kilograms (8.8 pounds). Operators demonstrate how it can drop explosives. The Munich-based Quantum Systems, which was founded in 2015, has played an important role in supporting the Ukrainian army.

Most of the companies presenting drone technology and AI applications at the trade show are relatively new but already successful. Helsing and Stark Defense, for example, are two start-ups that have secured major contracts with the Bundeswehr. They both make disposable combat drones, also known as loitering munitions. In Berlin, they are also presenting other autonomous unmanned systems expected to play an increasing role in future conflicts and wars.

The German army is the biggest exhibitor at the trade show Image: Sabine Kinkartz/DW

Germany's defense budget to hit €108 billion in 2026

There is a gold rush atmosphere in Berlin, not least because Germany's defense budget has been boosted to €108 billion ($125 billion) this year. Even companies from other sectors are trying to get a slice of the pie.

For example, Heidelberger Druck, a precision mechanical engineering company that makes printing presses but has now entered the drone defense system market through a joint venture. "We're looking for a second source of revenue because the traditional printing press business is subject to economic fluctuations," one of the company managers, Matthias Rössling, told DW. "We need something to keep growing. And that's where the defense market comes in, which in many cases is still untapped."

There is also a crowd at the Diehl Defense display, which is showcasing a new version of its Iris T, a short-range infrared homing air-to-air missile, which is used by the Bundeswehr and other militaries. "We've got plenty of orders for the next few years," said chief program officer Harald Buscheck, adding that the company planned to invest some €1.5 billion into new facilities, buildings and equipment.

He said that there had been a lot of interest from potential new clients on top of the 10 countries that the company already works with. "Of course, the Iran war is having an impact. We've already received calls to begin talks."

Given the current global situation, military air defense to protect territory, civilians and critical infrastructure, has once again gained significance.

Chancellor Merz says aerospace industry is a 'key strategic sector'

German Chancellor Friedrich Merz (CDU) also seemed impressed at the opening with the strong performance of German companies in the aviation industry, an exception amid an economic crisis . According to the Ge…