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November 9, 2017 | Local, Aerospace

Airbus eyes Canadian military deal, further cooperation with Bombardier

OTTAWA/MONTREAL (Reuters) - Airbus SE (AIR.PA) could cooperate further with Bombardier Inc (BBDb.TO) beyond a recent venture in the CSeries jets, if its fighter jet is permitted to compete in a Canadian military procurement, and its partners agree, an executive said on Wednesday.

Canada said last year it will launch an open competition to replace its aging fleet of fighter jets and a request for proposal for the open competition is expected in 2019.

Dirk Hoke, chief executive of Airbus Defense and Space, said the Eurofighter Typhoon fighter jet could be an option for further collaboration with Bombardier, although he did not specify further.

“We will definitely also look at additional potential further cooperation with Bombardier beyond just the CSeries,” Hoke told Reuters on the sidelines of an Ottawa aerospace conference, adding that he was “very optimistic and positive about us entering this competition.”

Airbus last month agreed to take a majority stake in Bombardier's CSeries jets program, bolstering the Canadian plane's sales and giving it a possible way out of a damaging trade dispute with Boeing Co (BA.N) and U.S. regulators.

The CSeries trade dispute has muddied a potential interim military contract between Boeing and Canada for 18 Super Hornet fighter jets, creating new opportunities for rivals like Airbus, Dassault Aviation SA (AVMD.PA) and Lockheed Martin(LMT.N).

Boeing and Canada had initially discussed purchasing the fighters as a stop-gap measure while the country prepared an open five-year competition to replace its aging fleet of 77 Boeing CF-18 fighter jets. Canada has halted talks with Boeing because of the dispute.

Hoke said Airbus is not considering jumping into the interim bid for fighter jets and is waiting to see the specifics from the Canadian government on the open competition.

“Right now, we have a very positive feeling about it but of course we have to see ... what (are) the specifications that have been finally defined and confirmed.”

In 2016, Canada selected Airbus C295W aircraft for its fixed-wing search and rescue program, estimated at C$3 billion ($2.36 billion).

Boeing has accused Bombardier of receiving illegal subsidies and dumping the CSeries at “absurdly low” prices in the U.S. market to win a key April 2016 order from Delta Air Lines Inc (DAL.N). The U.S. Commerce Department has notched up proposed trade duties on U.S. sales of CSeries jets at nearly 300 percent, in a case that will be decided next year at the International Trade Commission.

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  • Major upgrades incoming for Canada’s fleet of CF-188 Hornets

    June 19, 2020 | Local, Aerospace

    Major upgrades incoming for Canada’s fleet of CF-188 Hornets

    You can pick your own term. Generation 4.2? Gen 4.3? However you choose to define the upgraded Royal Canadian Air Force (RCAF) CF-188 Hornet, the fighter jet will have “operational parity” in a complex operating environment until the early 2030s. “It's not Gen 4, but it's not a true Gen 4.5 like the (F/A-18E/F) Super Hornet. It will be somewhere between there,” said BGen Todd Balfe, a CF-188 pilot and special advisor to the Fighter Capability Office. “The term we use is, it brings us to operational parity against current threats. That is an implicit statement recognizing we don't have operational parity right now. And that supports our [objective] of bridging towards the future fighter.” Under a program known as the Hornet Extension Project (HEP), the Air Force will upgrade its entire fleet of 94 aircraft to meet international aviation regulations and ensure interoperability with the United States and other allies, including NATO. It will also enhance the combat capability of 36 jets to operate globally against current threats. The program addresses what the RCAF is calling quantitative and qualitative capability gaps. The delivery and upgrade of 18 operational Australian F/A-18A Hornets, which will expand the current fleet of 76 to 94, gives the Air Force the necessary quantity to meet concurrent NORAD and NATO obligations. Upgrading the sensors, weapons, countermeasures and mission support of approximately two squadrons worth of fighters will resolve the qualitative concern. Previously two distinct projects to comply with changing civil aviation regulations and allied capabilities and to modernize combat capability, HEP will be completed in two phases. The first phase, set to begin shortly on all 94 Hornets, will include automatic dependent surveillance-broadcast (ADS-B) to replace the current transponder, Honeywell GPS/INS systems, Collins Aerospace AN/ARC-210 RT-2036 (Gen 6) radios, airborne Joint Tactical Radios, upgrades to the Lockheed Martin sniper targeting pod, enhanced mission computers and data transfer units, and software updates for the Advanced Distributed Combat Training System (ADCTS) for networked flight simulation exercises. “It will allow the aircraft to operate in civil airspace out to 2032, but more importantly ... to interoperate with allies,” said Balfe. “Our NATO allies and our U.S. allies are upgrading the interoperability standards on all their fleets of aircraft.” The second phase, to be completed on the 36 Hornets with the most remaining operational life, will follow shortly after. Though select weapons and sensor systems were upgraded prior to Operation Impact over Iraq and Syria in 2014 and 2015, the CF-188 has not had a major overhaul of its combat capability for almost 15 years, Balfe acknowledged. The most significant enhancement will be to the sensing capability, in particular the radar. The Air Force will replace the AN/APG-73 mechanically scanned radar, a multimode airborne radar system developed in the 1980s by Hughes Aircraft, now Raytheon, with a vastly improved APG-79(V)4 Active Electronically Scanned Array (AESA) radar, now standard on so-called fifth generation fighters and many allied upgraded fourth generation aircraft. “An AESA radar gives you much greater detection, less probability of being detected, and more capability to track and identify airborne and even surface targets,” said Balfe. “It is a scaled down version of the radar that is in the Super Hornet.” The Fighter Capability Office looked across allied F-18 operators for examples and “quickly landed upon the U.S. Marine Corps,” which operates a C variant of the Hornet, he said. “They have embarked upon a very similar upgrade path ... so much of the engineering effort has already been done. We will partner with the Marine Corps and put that in our aircraft.” The Hornets will also receive a new F/A-18A Wide Band RADOME to “be able to accommodate the full capability of the AESA radar,” he added. The new weapons package will include the Sidewinder AIM-9X Block II air-to-air short-range missile, the AIM-120D advanced medium range air-to-air missile, and the AGM-154 Joint Standoff Weapon (JSOW), an air-to-surface glide bomb with an unclassified published range of at least 100 kilometres “All the weapons are currently integrated on Marine Corps F-18s” and are used by select NATO allies, noted Balfe. “They are a significant increase in capability and survivability for our pilots.” Given the age of the Hornets, which were designed in the 1970s and produced in the 1980s, there would be limited value in modifying the airframe or enhancing the electronic warfare system to further increase survivability — the RCAF is anticipating about seven years of service life once the upgrades are completed in 2025. But the Air Force will add new expendable chaff and flare, the ADM-141C Improved Tactical Air-Launched Decoys, and an Automatic Ground Collision Avoidance System (Auto GCAS). “The system was not technically feasible before,” said Balfe. “It is now. The Marine Corps has found a solution.” Lastly, the RCAF will expand mission support and security with a new Joint Mission Planning System (JMPS) and security upgrades to portable, temporary secure facilities to conduct simulated weapons training and mission planning for pilots. “These new weapons come with a higher level of security,” he said, noting that the CF-188 operates at secret or below while newer fighters require top secret level classification. Though the enhanced combat capability might not match that of a true Gen 4.5 or greater aircraft, it will serve as a “transition activity” to the future fighter, which remains “on track,” said MGen Michel Lalumiere, chief of Fighter Capability. The government still expects to award a contract in 2022 for 88 advanced fighter jets to replace the current Hornet fleet, despite twice adjusting the request for proposals deadline, now set for July 31, and the challenges of coordinating paperwork and other activity among the Fighter Capability Office, the Air Force, other government departments and the three contending companies while working remotely during the coronavirus pandemic. Balfe suggested the combat systems introduced during HEP Phase 2, many of the which will be the same or similar on the future fighter, “will enable us to begin the transition of our people, our mindset, our procedures and our way of thinking for the capabilities that are going to come with the future fighter. We think HEP is a great bridge toward that path.” While data from the various sensors will still be “fused” by the pilot rather than an onboard computer, systems in CF-188, the enhanced sensing and data transfer will mean a clearer operating picture among RCAF pilots that can be shared to a degree with allies. “It will bring our pilots into a different level,” he said. One key approval milestone was reached on June 16 when the U.S. State Department approved the possible military sale to Canada of the AESA radar along with technical and logistics support, the RADOME, radios, data transfer units, the various missiles and tactical guidance units, the ADCTS, Auto GCAS, JMPS and other systems for an estimated US$862.3 million, according to the Defense Security Cooperation Agency. The combined HEP program is estimated to cost about $1.3 billion. The Air Force is anticipating an initial operating capability of six Hornets through both Phase 1 and 2 in 2023. Full operational capability of the entire 94 aircraft is expected in 2025. “We are doing this very rapidly,” noted Balfe. That timeline includes the introduction of 18 Australian flyable aircraft as well as delivery of a spares package and up to seven more F/A-18A jets for parts by 2022. So far, five have been delivered and two have completed testing and evaluation after undergoing a conversion program that includes Canadian operational flight program software, cockpit configuration, a naval aircrew common ejection seat, night vision imaging systems, external lighting on the tail, changes to the landing gear and installation of the Lockheed Martin sniper targeting pod. “The allocation (of the Australian aircraft) will be based upon squadron needs and aircraft fatigue,' said Balfe. “One of the benefits besides helping close that quantitative capability gap, they give us a bigger pool of aircraft over which to distribute the stress and strain of [fighter operations]. They also allow us to have aircraft out of service while they are going through various phases of upgrades under HEP.” Enhanced combat systems may put the CF-188 on a par with current threats for the next decade, but they don't negate the need for a more modern fighter, Balfe observed. “We have a limited window where the upgraded CF-188 will have operational parity. Past that window, roughly 2032, it will most likely not have operational parity any longer.” https://www.skiesmag.com/news/major-upgrades-canada-fleet-cf-188-hornets

  • Defence procurement won't be so easy to cut in a time of COVID-19

    May 25, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

    Defence procurement won't be so easy to cut in a time of COVID-19

    As governments around the world reassess national security, Ottawa could find it harder to delay plans for new ships, helicopters and fighter jets. Jeffrey F. Collins May 22, 2020 A few months into the COVID-19 pandemic, the first signs of impact on Canada's defence procurement plans are showing. The government has been following an ambitious multi-decade blueprint, starting in 2010, to kick-start the domestic shipbuilding sector, but some yards have had to scale back their workforces under public health orders. What this means for the National Shipbuilding Strategy and its more than $85 billion (by my calculations) in ongoing and planned construction of large ships is as yet unclear. The $19-billion Future Fighter Capability project, designed to replace the four-decade-old CF-18 fighter with 88 new jets, could also be affected. Government officials were adamant until early May that the June submission deadline for bids remained unchanged — before granting a 30-day extension. But with industry and public sector workers largely stuck at home, it is difficult to see how even the new July deadline can be met. In earlier times of economic strain, Ottawa found defence spending an easy target for cuts. This time could be different, as governments around the world reassess what national security means and how best to achieve it. Heading into 2020, things were still looking up for the capital spending plans of the Department of National Defence (DND) and the Canadian Armed Forces (CAF). The Trudeau government's 2017 Strong, Secure, Engaged (SSE) defence policy had allocated $108 billion in capital expenditures over a 20-year timeframe, 2017-37. Then came the pandemic. There were more than a million job losses in March alone, and as of early May, the Parliamentary Budget Office was predicting a $1-trillion debt by 2021. Given the rapid drop in both domestic and global consumer demand, the price collapse in the country's key commodity, oil, and the accompanying decline in the Canadian dollar, the country is now in a recession for an unknown period. If past is prologue and the virus persists without a vaccine for the foreseeable future, the likelihood of the government delaying or cancelling projects or trimming its orders for ships and planes is growing. When faced with economic pains in the past, federal governments scaled back procurement plans. The staggering debt and deficit in the late 1980s and 1990s led the Brian Mulroney government to drop its ambitious bid to acquire up to a dozen nuclear submarines in 1989, a mere two years after announcing the project in the 1987 defence White Paper. In 1993 the Jean Chrétien government infamously scrapped the contract to replace the 1960s-vintage Sea King helicopter (at a cost of $478 million in penalties). The following year's defence White Paper outlined $15 billion in delays, reductions and cancellations to the DND's procurement budget; this was in addition to large-scale base closures and 20 percent reductions in both CAF regular force personnel and the overall defence budget. The ostensibly pro-military Stephen Harper Conservatives announced 20-year funding plans, as ambitious as the SSE, in the 2008 Canada First Defence Strategy but deviated from them in the aftermath of the 2008-09 global recession. With a goal of returning to balanced budgets after $47 billion in stimulus spending, the Harper government delayed or cut over $32 billion in planned procurement spending and laid off 400 personnel from DND's procurement branch. Among the casualties was the army's $2.1-billion close-combat vehicle. There are several reasons why this pattern has repeated itself, but two stand out. First, defence is a tempting target for any government belt-tightening drive, typically accounting for a large share of discretionary federal spending. With most federal money going to individual citizens (employment insurance, pensions, tax benefits) and provinces (health and social transfers), there simply is little fiscal room left outside of defence. To remove money from these politically popular programs is to risk voter resentment and the ire of provincial governments. In short, when past federal governments confronted a choice between cutting tanks and cutting transfers, they cut the tanks. Second, Canada's geostrategic position has helped. Sitting securely atop North America in alliance with the world's pre-eminent superpower has meant, in the words of a defence minister under Pierre Trudeau, Donald Macdonald, that “there is no obvious level for defence expenditures” in Canada. Meeting the terms of our alliances with the United States and NATO means that Canada has to do its part in securing the northern half of the continent and contributing to military operations overseas, but generally in peacetime Ottawa has a lot of leeway in deciding what to spend on defence, even if allies growl and complain. Yet it is this same geostrategic position that may lessen the impact of any cuts related to COVID-19. Unlike the Mulroney and Chrétien governments, who made their decisions amid the end of Cold War tensions, or the Harper government, which was withdrawing from the combat mission in Afghanistan, this government must make its choices in an international security environment that is becoming more volatile. The spread of the virus has amplified trade and military tensions between the world's two superpowers and weakened bonds among European Union member states as they fight to secure personal protective equipment and stop the contagion at their borders. Governments worldwide are now unabashedly protectionist in their efforts to prevent the export of medical equipment and vital materials. As supply chains fray, pressures mount for each country to have a “sovereign” industrial capability, including in defence. In fact, the Trump administration has turned to the 1950 Defense Production Act to direct meatpacking plants to remain open or to restrict the export of health products (three million face masks bound for Canada were held up, then released). The pandemic is intensifying the Trump administration's skepticism of alliances and international institutions; in late March, there was even discussion of stationing US troops near the Canadian border (the plan was eventually abandoned). Smaller powers like Canada that have traditionally relied on American security guarantees will have to maintain their defence spending, or even increase it, as they try to strengthen old alliances and create new ones. As Timothy Choi, a naval expert at the University of Calgary, has told me, an irony of the pandemic is that it may see the National Shipbuilding Strategy become a “major destination for stimulus spending in times of recession.” Either way, by the time the pandemic subsides, Canadians may yet find out that there is indeed an “obvious level” to defence spending. This article is part of the The Coronavirus Pandemic: Canada's Response special feature. Photo: The Halifax-class navy frigate HMCS Fredericton in the waters of Istanbul Strait, Turkey. Shutterstock.com, by Arkeonaval. https://policyoptions.irpp.org/magazines/may-2020/defence-procurement-wont-be-so-easy-to-cut-in-a-time-of-covid-19/

  • Canada’s CAE buys L3Harris military training unit, with eyes on US programs

    March 3, 2021 | Local, Aerospace

    Canada’s CAE buys L3Harris military training unit, with eyes on US programs

    CAE defense head Dan Gelston tells Defense News why the $1.05 billion deal positions the company to go after future fighter and bomber programs.

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