Australia’s growing defence industry, BAE Systems Australia has inked a decade-long Head Agreement with Boeing Defence Australia to deliver the Vehicle Management System (VMS) for the MQ-28 Ghost Bat—an uncrewed combat aircraft under joint development by Boeing and the Australian Department of Defence.
Announced on April 10, the deal signals a deeper integration of BAE Systems into one of Australia’s most ambitious aerospace projects. Alongside the VMS, BAE Systems will also contribute elements of the Ground Control Station and the Independent Flight Termination System—both critical for safe and autonomous operation of the aircraft.
“BAE Systems is proud to be a strategic partner on this innovative sovereign program,” said Kisa Christensen, Director of Red Ochre Autonomy and Sensors at BAE Systems Australia. “We are excited to be at the forefront of future autonomous air capability to ensure Australia and its allies can generate the force required to continually meet their operational needs well into the future.”
The agreement not only cements BAE Systems’ role in shaping Australia’s unmanned aerial combat capabilities but also represents a broader trend toward deeper collaboration between key defence primes to ensure technological sovereignty in increasingly contested environments.
The Ghost Bat, previously known as the Loyal Wingman, is a first-of-its-kind program aimed at producing a highly capable, artificial intelligence-driven uncrewed aircraft that can operate in conjunction with manned platforms. The aircraft’s design and operation hinge on enabling manned-unmanned teaming (MUM-T), a concept gaining traction globally as air forces seek to increase operational flexibility without escalating personnel risk.
Developed as a modular, cost-effective, and stealth-capable system, the Ghost Bat has a range of over 3,700 kilometers and is capable of teaming with a variety of Royal Australian Air Force (RAAF) platforms, including the E-7A Wedgetail and F-35A Joint Strike Fighter. It can perform a broad array of missions—ranging from surveillance and reconnaissance to electronic warfare and potentially even kinetic strike—depending on the payload and sensor configuration.
According to Boeing, the program recently marked its 100th successful test flight, signaling the maturity of its flight performance and autonomous capabilities. Testing is expected to conclude by late 2025, with operational demonstrations involving live teaming exercises alongside crewed assets to follow soon after.
“This is not just a drone,” noted one defence analyst. “It’s a disruptive capability that can reshape the way air forces think about force projection, survivability, and cost-efficiency.”
In 2023, the Australian government announced a substantial A$399 million (USD $260 million) funding package aimed at accelerating the Ghost Bat’s development. This investment covered the production of three next-generation Block 2 aircraft, which will feature enhanced sensors, improved autonomy, and more advanced systems integration.
Government officials have framed the funding as part of a larger effort to ensure Australia can independently develop and sustain leading-edge airpower capabilities.
“This investment supports Australia’s long-term defence needs,” said then-Minister for Defence Richard Marles. “It allows us to build sovereign industrial capabilities, reduce reliance on foreign suppliers, and keep pace with the accelerating demands of modern warfare.”
The Ghost Bat is the first combat aircraft designed and manufactured in Australia in more than five decades. The program is seen as a model for future defence-industrial collaboration, with the government keen to promote high-tech job growth, export potential, and local innovation.
BAE Systems’ inclusion in the program marks a significant step in the maturation of the aircraft’s autonomous systems. The Vehicle Management System acts as the core flight control architecture—essentially the brain that keeps the aircraft flying safely and executing commands. This includes everything from navigation and flight stability to handling emergency scenarios in remote environments.
Their work on the Ground Control Station will provide mission operators with intuitive, real-time control interfaces—another cornerstone in enabling effective human-machine teaming. The Independent Flight Termination System, meanwhile, is a safety mechanism that ensures an unresponsive or malfunctioning aircraft can be safely brought down or shut off, protecting civilian populations and other assets.
Christensen highlighted that BAE’s technology aligns with the core tenets of responsible and ethical AI implementation. “As we explore increasing levels of autonomy, it’s crucial that our systems remain accountable, legally compliant, and human-overseen,” she said.
The implications of the MQ-28 Ghost Bat extend well beyond Australian borders. As traditional airpower costs soar and pilot training pipelines struggle to keep pace with demand, countries are increasingly eyeing uncrewed systems as a force multiplier.
With the MQ-28 being positioned as a scalable, modular platform, Boeing has made clear that export markets are a critical part of the program’s long-term viability. The aircraft has already attracted interest from the United States, the United Kingdom, and several NATO-aligned nations. The U.S. Air Force, in particular, is exploring ways to integrate similar loyal wingman-style aircraft into its Next Generation Air Dominance (NGAD) strategy.
In Australia, construction of a dedicated manufacturing hub in Toowoomba, Queensland, is already underway. This facility will not only scale up production of the Block 2 Ghost Bats but could eventually serve as a regional export base.
“This is just the beginning,” said a Boeing spokesperson. “The Ghost Bat gives us a blueprint for how to do uncrewed combat aircraft right—fast, cost-effectively, and in partnership with local ecosystems.”
The rise of autonomous systems in defence comes with complex questions. The Ghost Bat program is being closely watched not only for its tactical advantages but also for how it navigates legal, ethical, and policy dimensions.
The Department of Defence has emphasized that all development complies with international humanitarian law and ethical standards. The system is designed to retain a “human-in-the-loop” approach, especially in mission-critical tasks involving weapons or high-stakes decision-making.
Nevertheless, the ongoing evolution of AI-enabled warfare means that programs like the Ghost Bat will remain subject to scrutiny—from both advocates and critics of autonomous weaponry.
“There’s no doubt this is the future of airpower,” said Dr. Kate Fensom, a defence policy expert at the University of New South Wales. “But how we regulate, control, and integrate these technologies will define how responsible that future looks.”
The MQ-28 Ghost Bat represents more than just a leap in drone capability—it’s a statement of strategic intent. With BAE Systems now embedded in the heart of the program, the aircraft is inching closer to becoming an operational reality. For Australia, this is not just about developing a cutting-edge platform—it’s about proving that sovereign defence innovation can compete on the world stage.
