Canada returns to Lockheed Martin for F-35s

Outside the Lockheed Martin Corporation in Fort Worth, Texas, plane replicas stand. Image Credit: Tom Pennington/Getty

Politico Report: The government intends to spend up to C$19 billion to purchase warplanes for the Royal Canadian Air Force.

Canada is seeking a deal with Lockheed Martin to buy 88 F-35 fighter jets, reversing Prime Minister Justin Trudeau's pledge in 2015 to find another source for next-generation fighter jets.

The federal government officially confirmed that it will spend up to C$19 billion on warplanes to upgrade the outdated CF-18 fleet of the Royal Canadian Air Force.

"[The planes] will assist to our global relationships, both here on the North American continent and in terms of our... NATO capacities," Defense Minister Anita Anand said in an interview with reporters in Ottawa.

Following a competition that limited the field to the F-35 and the Swedish Saab Gripen-E, the Trudeau government made its decision. The purchase of fighter jets is the RCAF's biggest major expenditure in more than 30 years, according to Canada.

Canada's long-awaited fighter jet announcement comes as Prime Minister Justin Trudeau prepares to increase military budgets in his annual budget. In response to Russia's invasion of Ukraine, the prime minister recently indicated that his budget, expected in April and maybe as soon as next week, will raise defense investments.

According to NATO, Canada spent 1.39 percent of its GDP on defense in 2021, considerably below the alliance's 2-percent goal. The Canadian government has been chastised at home and abroad for not spending enough on defense, including by allies such as the United States.

The relationship between Canada and Lockheed Martin isn't set in stone. The government will initiate final discussions with the American company, with the first F-35 aircraft arriving in Canada by 2025.

The government hopes to sign a contract in 2022, according to Simon Page, assistant deputy minister for defense at the procurement department, though any deal will likely take at least seven months.

Trudeau's Liberals ruled out the F-35 as an option only a few years ago.

Trudeau promised in 2015 that if elected, he would cancel an agreement reached by his Conservative predecessors to buy F-35 fighter jets. Trudeau also stated at the time that he would not purchase the Lockheed planes and that he intended to start a new procurement process to locate a less expensive option.

In 2010, the Conservative administration negotiated a contentious sole contract with Lockheed Martin to purchase F-35 fighter jets.

Filomena Tassi, the Minister of Procurement, told reporters on Monday that she will always favor a competitive procedure.

"It motivates the bidders to come forward with their best potential bid, no matter what procurement you're looking at," Tassi said, noting that the companies were given plenty of time to make compelling pitches.

The revised method was introduced by Trudeau's Liberals in 2016.

Tassi was questioned on Monday if the fact that the fighter aircraft purchase took more than a decade to reach the same conclusion indicates that the issue was politicized.

"I would actually argue the opposite," Tassi said, adding that she didn't find out which manufacturer had been chosen until Monday morning. "We've made it obvious that in this process, competition was critical."

Canada just eliminated Boeing's F/A-18 Block III Super Hornet from its list of possible fighters, leaving only the F-35 and the Gripen-E.

Canada purchased 18 second-hand F-18 fighter jets from Australia a few years ago as a temporary solution.

At 4 Wing Cold Lake in Alberta and 3 Wing Bagotville in Quebec, the government has been preparing operating sites for future fighter aircraft.