Airbus has suggested splitting Europe’s future fighter project into two separate aircraft to break a long-running deadlock.
The €100bn Future Combat Air System involves Germany, France and Spain.
The dispute centres on who leads development of the next-generation jet.
Airbus’s defence arm represents Germany and Spain, while Dassault Aviation leads the French side.
Airbus chief Guillaume Faury said a two-fighter model could protect the wider programme.
Germany recently questioned whether the planned aircraft meets its military needs.
Berlin does not require a nuclear-capable fighter, unlike France.
The disagreement has put the project at a critical stage.
Governments must soon decide whether to continue with the jet or focus on other elements.
These include drones and a combat data network, which are progressing.
Airbus reported a 23% rise in annual profit to €5.2bn.
However, supply shortages from Pratt & Whitney forced it to cut production targets for the A320.
The slowdown helped rival Boeing increase deliveries.
Despite the tensions, Airbus says the European fighter programme remains strategically important.
