March 1, 2019 | Local, Aerospace

Budget officer says used Australian fighter jets will cost Canada over $1 billion — far more than DND claimed

DAVID PUGLIESE, OTTAWA CITIZEN

The purchase of used Australian jets to boost Canada's current fleet of fighter planes could cost taxpayers more than $1 billion, a figure 22-per-cent higher than the Department of National Defence is claiming, according to a new report from parliament's financial watchdog.

Parliamentary Budget Officer Yves Giroux examined the cost of buying and upgrading 18 used Australian F-18s and flying them to 2032. His report, released Wednesday, puts the final price tag at between $1.09 billion and $1.15 billion — considerably more than the $895.5 million estimate from DND.

“We considered the entire life-cycle cost, from project management up until the very end of the disposal phase,” Giroux said in an interview with Postmedia. “We didn't look at whether it was a good deal.”

The PBO's costing included weapons, upgrades needed for the aircraft, annual maintenance fees and the fuel that would be needed over the years of flying the aircraft.

We didn't look at whether it was a good deal

The Royal Canadian Air Force is using the jets as interim fighters to boost the capability of the current fleet of CF-18s until the purchase of a new generation of aircraft. The RCAF will fly 18 of the Australian jets and use the other seven for parts and testing.

The RCAF received its first two used Australian fighter jets at 4 Wing Cold Lake in Alta. on Feb. 16. Deliveries of the jets will continue at regular intervals for the next three years, and the aircraft will be integrated into the CF-18 fleet as modifications are completed, according to the RCAF. The last aircraft are expected to arrive by the end of 2021 and fly until 2032.

Giroux said his office used the same figures that DND had but did its own analysis of those cost estimates. “There's no fundamental reason why we should come up with a different number,” he said. “My only sense is that they voluntary budgeted optimistic numbers. The reason why I don't know for sure.”

In a statement Wednesday, DND said its cost figures are close to those determined by the Parliamentary Budget Officer. The statement also added that the PBO figures for upgrades of the interim fighter fleet include estimates for CF-18 combat upgrades which the department is still trying to determine. “While we are confident that our methodology is sound, we will continue to work with the PBO, the Auditor General of Canada, and other outside entities as part of our commitment to responsible use of taxpayer dollars,” the statement noted.

The Liberal government had planned to buy 18 new Super Hornet fighter jets from U.S. aerospace giant Boeing to augment the Royal Canadian Air Force's CF-18s until new modern aircraft could be purchased in the coming years.

But in 2017 Boeing complained to the U.S. Commerce Department that Canadian subsidies for Quebec-based Bombardier allowed it to sell its C-series civilian passenger aircraft in the U.S. at cut-rate prices. As a result, the administration of U.S. President Donald Trump enacted a tariff of almost 300 per cent against the Bombardier aircraft sold in the U.S. In retaliation, Canada cancelled the deal to buy the 18 Super Hornets, which would have cost more than US $5 billion.

Instead of buying the new Super Hornets, the Liberals decided to acquire the used Australian jets.

In November 2018 the Auditor General's office issued a report noting that the purchase of the extra aircraft would not fix the fundamental weaknesses with the CF-18 fleet which is the aircraft's declining combat capability and a shortage of pilots and maintenance personnel.

“The Australian F/A-18s will need modifications and upgrades to allow them to fly until 2032,” the report said. “These modifications will bring the F/A-18s to the same level as the CF-18s but will not improve the CF-18's combat capability.”

“In our opinion, purchasing interim aircraft does not bring National Defence closer to consistently meeting the new operational requirement introduced in 2016,” the report added.

The Canadian Forces says it is bringing in new initiatives to boost the numbers of pilots and maintenance staff.

https://montrealgazette.com/news/canada/budget-officer-says-used-australian-fighter-jets-will-cost-canada-over-1-billion-far-more-than-dnd-claimed/

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October 11, 2018 | Local, Aerospace

Governments of Canada and Manitoba strengthen the aerospace industry
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Composites Innovation Centre: $1.6 million to administer and deliver the Manitoba Aerospace Fund aimed at supporting product commercialization, process innovation, and business development activities of small- and medium-sized enterprises in the Manitoba aerospace sector. These projects will lead to the creation of high quality jobs, introduce new product design capabilities and manufacturing technologies, facilitate the introduction of innovative composite manufacturing technologies, and expand engine testing capabilities. Quick facts Manufacturing is the largest industrial sector in Winnipeg. Manitoba is home to the third largest aerospace hub in Canada, employing more than 4,600 people. This investment will create approximately 70 jobs and grow the regional economy through expanded global sales. Quotes "Our Government's investment in the Canadian aerospace industry builds on our ambitious plan to turn Canada'seconomic strengths into global successes. These projects support a key economic cluster in Manitoba and across Western Canada that will continue to create the good middle-class jobs of tomorrow." - The Honourable Navdeep Bains, Minister of Innovation, Science, and Economic Development and Minister responsible for Western Economic Diversification Canada "Manitoba's aerospace sector is globally-competitive and a significant part of our provincial economy. We continue to support the sector's development of a cutting-edge workforce and are pleased to have identified these projects as priorities in building the next generation of advanced manufacturing expertise here in Manitoba." - Scott Johnston, MLA for St. James, on behalf of Manitoba Growth, Enterprise and Trade Minister Blaine Pedersen "We are pleased to be supported by Western Economic Diversification Canada in launching a collaborative technology development project that brings together industry, research and academic partners. We are also pleased to support the Manitoba Aerospace Fund's goal of increasing industrial competitiveness and our aerospace sector's economic footprint. Our focus with these funds is to collaboratively develop capabilities to position Manitoba, and Canada, as a leader in the aerospace industry." - Doug McCartney, President and CEO, Composites Innovation Centre "Magellan is both pleased and appreciative to continue the partnership with Western Economic Diversification Canada to invest in strengthening the advanced manufacturing environment in Winnipeg. This partnership with WD Canada announced today will contribute directly to the technologies and training required to deliver the specialized manufactured goods for the next generation of aerospace products." - Dan Pashniak, General Manager, Magellan Aerospace, Winnipeg "WestCaRD welcomes the Government of Canada's financial support for advanced aircraft engine test, research and development in Winnipeg. New and continuing high value employment opportunities are generated directly through developmental test operations, as well as indirectly through the advanced research and development needed to design, maintain and operate new generations of evermore efficient, safe, and environmentally improved aircraft. This investment in the future puts a spotlight on Manitoba, highlighting the economic strength of its aerospace sector, and is a shining example of the government and industry working together to ensure Canada's, and Manitoba's long-term economic health and well-being." - Bob Hastings, Chief Executive Officer, WestCaRD SOURCE Western Economic Diversification Canada https://www.newswire.ca/news-releases/governments-of-canada-and-manitoba-strengthen-the-aerospace-industry-696615221.html
July 14, 2020 | Local, Aerospace

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November 12, 2020 | Local, Naval

State Dept. Approves Possible SM-2 Block IIC Missile Sale to Canada
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