Industry Minister Mélanie Joly sparked a competition between two major defense companies on Tuesday regarding Canada’s fighter fleet future. Joly expressed concerns that the $27 billion deal to purchase 88 F-35 jets from the U.S. lacked sufficient job opportunities for Canadian workers and fell short of public expectations.
In a significant move, Joly revealed that the Canadian government was in discussions with Swedish defense firm Saab, which proposed creating thousands of aerospace manufacturing jobs in Canada through its Gripen E fighter jet assembly project. Joly emphasized the potential for leveraging military procurement to secure more benefits for Canada, citing Saab’s pledge of 10,000 new jobs.
While evaluating Saab’s proposal, Joly mentioned ongoing considerations about the capabilities of Lockheed Martin, the American manufacturer of the F-35. The minister highlighted the importance of maximizing job creation and economic benefits for Canada in the decision-making process.
The recent visit of Sweden’s royal family, business leaders, and political representatives to Ottawa underscored the growing interest in Saab’s offer. In 2023, Canada had struck a deal with Lockheed Martin to procure F-35 stealth fighters as replacements for the aging CF-18 jets. However, amid a trade conflict initiated by former U.S. President Donald Trump, Prime Minister Mark Carney initiated a review of the F-35 purchase, delaying the decision process.
Unlike traditional defense procurement agreements, the Lockheed Martin deal involves Canada investing in a multinational pool for work opportunities related to the entire F-35 fleet. The company estimated that Canada could gain industrial value exceeding $15.5 billion over five decades through its involvement in the F-35 program.
While the opposition Conservative party favored the F-35, they criticized the government for potentially jeopardizing existing Canadian contracts and jobs by revisiting the decision. Concerns were raised about the impact on Canadian job opportunities in cities like Richmond, Winnipeg, and Montreal linked to the F-35 production.
As discussions continue, the government faces the challenge of balancing economic benefits and job creation with national security priorities. The debate also includes considerations about potential cost savings and operational efficiencies that a mixed fleet approach could offer. Lt.-Gen. Jamie Speiser-Blanchet and other defense officials emphasized the need for a fifth-generation fighter like the F-35 to address evolving threats from major global powers.