Canada’s industry minister says she will press American aircraft manufacturer Lockheed Martin to expand its Canadian workforce as part of any deal for new fighter aircraft.
In an interview with Bloomberg News published on 5 January, Melanie Joly said Ottawa is seeking additional economic commitments from Lockheed as the government of Prime Minister Mark Carney considers whether or not to move forward with the purchase of additional F-35A stealth jets.
Around 30 Canadian firms are suppliers to Lockheed’s global F-35 assembly operations, according to the Royal Canadian Air Force (RCAF). Canadian broadcaster CBC says those companies employ some 2,000 workers domestically.
Joly says she would like to see that footprint expand as part of any procurement decision from Ottawa.
“I think… they can definitely do more research and development in the country, and we should be able to have access to much more [intellectual property] control,” Joly tells Bloomberg.
A meeting between Joly and executives from Lockheed is planned for later this month.
Lockheed did not comment on any upcoming plans to meet with Joly, but says more than 110 Canadian companies have contributed to the F-35 supply chain over the lifetime of the programme, with each aircraft containing C$3.2M ($2.3 million) of components made in Canada.
“That’s before Canada receives its first aircraft,” Lockheed notes.
There are currently 1,270 F-35s in service globally, with plans for a total worldwide fleet of 3,600 aircraft spanning 20 countries.
“We expect to produce over C$15.5 billion in industrial value for Canada,” Lockheed says of the F-35 programme.
The company notes that figure includes both aircraft production and sustainment spanning from 2007 to 2058, including Ottawa’s original commitment for 88 jets.
“They have potential to grow as Canada further defines sovereign sustainment requirements,” Lockheed notes of the economic contribution figures.
Canada committed to fielding 88 conventional take-off and landing F-35As under a 2023 deal to replace the country’s ageing fleet of legacy model Boeing F/A-18A Hornets.
However, a trade war launched by US President Donald Trump and veiled threats toward Canadian sovereignty sparked a backlash to the F-35 acquisition among the governing Liberal Party and many ordinary Canadians.
While Ottawa has obligated funds for the first 16 aircraft of its F-35 order, the remaining balance is now up for grabs.
Lockheed rival Saab, whose Gripen E/F was soundly bested by the F-35A according to government evaluations published by the CBC, has jumped back into re-opened competition.
The Swedish airframer has floated the possibility of building a new assembly line in Canada to support additional Gripen production for the RCAF and prospective operators such as Ukraine.
Saab has also offered to locate assembly of its GlobalEye airborne early warning and control aircraft in Canada, should Ottawa commit to a purchase. The GlobalEye platform is based on the Global 6000/6500 business jet, already manufactured in Ontario by Canadian airframer Bombardier.
In a December interview with FlightGlobal at the annual ASD conference in Brussels, Saab chief executive Micael Johansson said Canadian officials have sought greater detail about the industrial package the company is able to offer as part of a Gripen sale.
“They are asking lots of questions about how would we be able to create sovereign capability in their domain,” Johansson said.
Specific areas of inquiry include the location and number of jobs, collaboration with domestic firms and the transfer of technical data related to aircraft design and production.
“Which we are prepared to do,” Johansson noted of that last item.
Saab has also said that a combined deal for Gripen fighters and GlobalEye aircraft could see more than 12,000 jobs created in Canada.
Acknowledging that the Gripen E placed second to the F-35A in the RCAF’s competitive evaluation, Johansson notes the Swedish jet still achieved passing marks in crucial assessments such as the ability to perform missions required of Canadian air crews under the joint US-Canada North American Aerospace Defense Command.
“There was no sort of reason why the Gripen fighter system wouldn’t be applicable in that context,” Johannson says.
It is perhaps the existence of a suitable alternative that is emboldening Ottawa to push Lockheed to sweeten its offer.
“We have a very interesting offer from Saab, and it is our duty to look at it very seriously,” Joly told Bloomberg.
After promising a review of the F-35 acquisition would be released before September 2025, the Carney government now declines to say when that report will be completed.
At the Halifax International Security Forum in November, defence minister David McGuinty brushed off questions about when Ottawa would issue a decision.
“The review of the F-35 acquisition project continues,” he said. “It’s going to take the time that it’s going to take. We’re going to get this right.”
In November, a dozen retired senior Canadian military officers signed a letter to Carney urging the government not to reduce the planned buy of F-35As.
During an October parliamentary hearing, sitting officials including the current RCAF commander and deputy defence minister stressed the dire need to modernise Canada’s aged and obsolete fighter force.
Shortly after assuming command in August, air force chief Lieutenant-General Jamie Speiser-Blanchet told FlightGlobal that she was committed to turning the RCAF into a fifth-generation air force.
Story updated to include comment from Lockheed Martin.
