The ITPS currently trains pilots on the Aero Vodochody L-39 and is working with over ten air forces to provide advanced jet training, the school CEO said.
Prime Minister Giorgia Meloni wants to refocus the bloc's help on lowering the cost of living for Italians, as energy costs have soared amid the Iran war.
The deal marks a shift from Boeing to Airbus for the Italian Air Force, which flies four Boeing 767-based tanker aircraft which entered service from 2011.
“Today we have other priorities. I have the priority of energy costs and the priority of responding to the needs of citizens," said the prime minister.
The announcement marks a change for Italy, which has been a loyal ally to Israel for years and has been viewed by Trump as a trusted partner in Europe.
Use of the Sigonella air base for the U.S.-Israeli war against Iran falls outside of the scope of agreements, requiring parliamentary approval in Rome.