Canadian Defence Department receives approval to spend $7B on 16 F-35s
The Treasury Board approval covers an initial set of 16 F-35s, manufactured by Lockheed Martin, as well as spare parts, weapons and various startup costs associated with obtaining new jets.
The Department of National Defence recently received quiet approval to spend $7 billion on 16 F-35 fighter jets and related gear.
Two defence sources, who spoke on the condition of anonymity to discuss matters not yet made public, said a funding request sent to the Treasury Board got the green light earlier this month.
The Canadian Press also viewed a document summarizing this request to Treasury Board, which is the department that controls the federal purse strings, and independently verified its accuracy.
The funding approval came after months of negotiations with the U.S. government and Lockheed Martin after the F-35 beat out Sweden’s Saab Gripen in a competition earlier this year.
While the federal government has said it plans to buy 88 new fighter jets to replace its aging CF-18s between 2026 and 2032, the sources said Canada will be purchasing F-35s in blocks over the next few years.
Canada needed to make an initial order by the end of the calendar year to ensure its planned delivery schedule remains on track, they added.
The Treasury Board approval covers an initial set of 16 F-35s, manufactured by Lockheed Martin, as well as spare parts, weapons and various startup costs associated with obtaining new jets, such as building new facilities.
The Liberal government was expected to make an announcement two weeks ago, according to sources, but now the news is not expected to be formally announced before January.
Procurement Minister Helena Jaczek’s office declined to comment specifically on the Treasury Board approval on Tuesday, referring instead to the overall decision to buy 88 fighter jets.
“As outlined in Canada’s defence policy Strong, Secure, Engaged, Canada will be acquiring 88 advanced fighter aircraft,” spokesman Olivier Pilon wrote in an email.
“We look forward to providing an update on this important project shortly.”
Lockheed Martin declined to comment. So did the U.S. Defense Department’s F-35 office, which is responsible for the stealth fighter program. They instead referred questions to the Canadian government.
News of the funding decision caught Saab unawares on Dec. 20.
“Given that Saab remains eligible for selection in the formal procurement process, we are surprised by today’s media report,” Saab Canada spokeswoman Sierra Fullerton said in a statement.
“Saab is committed to the offer we made to the government of Canada, which was significantly less than the $19 billion budgeted for the full 88 aircraft requested.”
Canada’s decade-long search for a new fighter jet to replace its aging CF-18s came full circle in March when the Liberal government announced negotiations with U.S. defence giant Lockheed Martin to purchase the F-35.
Officials at the time anticipated talks would take about seven months and result in a final contract by the end of the year.
Yet the Liberal government also emphasized at the time that the negotiations did not mean a deal for the F-35 was done, with the government retaining the option to talk with Saab about its Gripen fighter should discussions with Lockheed Martin stall.
The government had initially anticipated spending $19 billion on Canada’s next fighter jet fleet, but it was not evident at the time what would — and would not — be included. Defence Minister Anita Anand said in March that the cost would be “further refined.”
