Industry Minister Mélanie Joly set two major defense companies in opposition on Tuesday regarding Canada’s fighter aircraft fleet. She expressed concerns that the $27 billion deal for 88 F-35 jets from the U.S. lacks sufficient job opportunities for Canadian workers and falls short of public expectations.
In a notable statement, Joly revealed ongoing discussions with Swedish defense firm Saab, highlighting their commitment to generating thousands of aerospace manufacturing positions by producing their Gripen E fighter jet in Canada.
“We believe that military procurement can yield more,” Joly stated to the press. “Hence, we are exploring the Gripen option.” Saab has proposed creating 10,000 jobs, and Joly emphasized the need to assess the feasibility of these claims alongside evaluating Lockheed Martin’s potential contributions.
The situation unfolded amidst Sweden’s intensive efforts, including a recent delegation visit to Ottawa involving the country’s royal family, business leaders, and high-ranking political figures, including the defense minister.
In 2023, Canada entered into a contract with Lockheed Martin, the world’s leading defense contractor, to acquire F-35 stealth fighters as replacements for the aging CF-18 jets of the air force. This agreement, resulting from a competitive process where Saab’s Gripen E secured the second position, will see the initial batch of 16 fighters delivered between 2026 and 2030.
Following trade tensions under the administration of former U.S. President Donald Trump, Prime Minister Mark Carney initiated a review of the F-35 purchase last winter, which is ongoing despite initial promises for a September completion.
The standard approach in defense procurement involves the winning bidder investing in the Canadian economy, either directly through fighter program subcontracts and manufacturing or through other investments within the country. However, the Lockheed Martin deal operates differently as Canada has historically paid to participate in a pool of countries eligible for work related to the entire fleet.
Lockheed Martin projects that the F-35 program could bring over $15.5 billion in industrial value to Canada from 2007 to 2058. Opposition Conservatives, staunch supporters of the F-35, have criticized the government for jeopardizing existing Canadian contracts and jobs by initiating the review process.
During a recent House of Commons committee meeting, defense critic James Bezan emphasized the current jobs associated with the F-35 program across Canada and raised concerns about potential job losses if the government alters its course.
As decisions loom regarding the F-35 program and the existing fighter jet orders, debates continue on potential benefits of diversifying the fleet. While some advocate for building Gripens domestically, others explore the cost-saving potential of a mixed fleet strategy.
Lt.-Gen. Jamie Speiser-Blanchet, the new head of the RCAF, advocates strongly for the F-35 program, citing the need for a fifth-generation fighter jet like the F-35 to counter potential threats from major countries such as China and Russia.