CANADA

Replacement of CF-18: Ottawa adds "economic impact" requirement

As it prepares to bid for the aging fleet of CF-18 fighter jets, the Trudeau government serves as an unequivocal warning to foreign companies such as Boeing who are trying to stumble Canadian companies.

From now on, the Canadian government will take into account the impact that foreign companies have on the country's economy in evaluating their bids. And if they cause harm, "they will find themselves in a very disadvantage compared to other bidders," said Minister of Public Services and Supply Carla Qualtrough on Tuesday.

The move is aimed directly at Boeing, which successfully persuaded the US authorities to impose a countervailing duty of almost 300 percent on the sale of 75 Bombardier C Series aircraft to Delta. Boeing has been arguing for several months that Bombardier has benefited from illegal subsidies from the Quebec government and the federal government to sell aircraft at a derisory price in the US market.

Minister Qualtrough, accompanied by Defense Minister Harjit Sajjan, Innovation Minister Navdeep Bains, Transport Minister Marc Garneau, and Canadian Armed Forces Chief of Staff General Jonathan Vance also confirmed that Canada will not purchase 18 Boeing's brand-new Super Hornet fighter aircraft, valued at $ 6.4 billion, to fill the capacity gap that the Army is facing.

"We need reliable partners," Defense Minister Harjit Sajjan said.

Instead, the Trudeau government plans to purchase 18 used Hornets from Australia and spare parts needed to extend their life to 2025, by which time Canada should begin taking over the new aircraft. hunt.

These fighter planes from Australia were manufactured during the same period as the CF-18s of the Canadian Armed Forces and are essentially the same aircraft. According to senior officials, used fighter jets are expected to cost $ 500 million.

The Trudeau government plans to formally launch the tender to acquire 88 new fighter jets in 2019. The contract is expected to be awarded in 2022 and the first aircraft delivery is expected in 2025.

"I want to be clear: this is an open and transparent process and no business is excluded," said Minister Qualtrough.

This means that the Trudeau government is no longer ruling out the option of buying F-35s from the US company Lockheed Martin, contrary to what the Liberals promised during the last election campaign.

It also means that Boeing, who could have had a head start on this $ 19 billion contract if the Trudeau government had not ruled out the purchase of 18 Super Hornets to fill the capacity gap, could also be on the ranks. But if the trade dispute between the powerful US multinational and the Canadian government regarding the sale of Bombardier aircraft to the US market, Boeing could lose points in the evaluation of its bid.

In a statement, the Machinists Union expressed its satisfaction with Ottawa's decision to purchase 18 used fighter jets from Australia, especially since L-3 Communication is servicing these aircraft. in Mirabel.

"Our members at L-3 Comm have the expertise to handle the maintenance, repairs and modifications to the CF-18s that the Canadian government has just acquired," said the representative of the Machinists' Union. , Stéphane Paré. "The expertise, rigor and professionalism of these aerospace workers have already allowed Canada to extend the life of its CF-18s from 2003 to 2025. It is therefore logical that the maintenance of these devices come back to us and that's good news for us. "