Back to news

March 5, 2019 | Local, Aerospace

Budget Officer’s analysis of used Australian F-18 deal to be released Thursday

DAVID PUGLIESE, OTTAWA CITIZEN

The Parliamentary Budget Officer will release his report Thursday on the federal government's purchase of used Australian F-18 fighter jets for the Canadian Forces.

Yves Giroux's report will be a fiscal analysis of the government's acquisition of the 25 aircraft.

Eighteen of the Australian F-18 aircraft will eventually be flying for the Canadian Forces, while another seven will be used for testing and spare parts.

The Royal Canadian Air Force are using the jets as interim fighters to boost the capability of the current fleet of CF-18s until a new generation aircraft can be bought.

The Royal Canadian Air Force recently received its first two used Australian fighter jets at 4 Wing Cold Lake in Alberta. The first two aircraft were F/A-18A models, which means they are single seat aircraft. The aircraft were flown to Cold Lake, Alberta, from Nellis, Nevada, where they were participating in Exercise RED FLAG. The aircraft will be employed at 3 Wing Bagotville and 4 Wing Cold Lake, according to the RCAF.

Deliveries of the Australian jets will continue at regular intervals for the next three years, and aircraft will be integrated into the CF-18 fleet as modifications are completed, according to the RCAF. The final aircraft are expected to arrive by the end of 2021.

A second group of planes are expected to arrive later this year.

Canada is paying Australia $90 million for the aircraft. The federal government originally estimated the purchase of the Australian jets would cost around $500 million, but the Department of National Defence's procurement chief, Pat Finn, said that price reflected every aspect of the associated deal, not just the cost of purchasing the jets. Canada is also acquiring extra spare parts, the Australian jets will have to be outfitted with specific Canadian equipment and software and testing will be needed.

The $500-million project estimate also included $50 million in contingency funds to cover any problems and another $35 million for the salaries of all civilian and military personnel involved over the life of the project. An additional $30 million will be spent on new infrastructure over the years needed to accommodate the aircraft.

Those costs add up to $360 million, Finn said. But DND also plans to upgrade its existing fleet of CF-18s with new communications gear and equipment required to meet regulations to operate in civilian airspace, improvements which the Australian jets will also eventually receive at a cost of around $110 million, an amount that brought the original estimate to nearly $500 million.

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 aircraft can 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.

https://ottawacitizen.com/news/national/defence-watch/budget-officers-analysis-of-used-australian-f-18-deal-to-be-released-thursday

On the same subject

  • Canada directs military to take more ‘assertive’ stance in cyberspace - National | Globalnews.ca

    May 13, 2022 | Local, C4ISR, Security

    Canada directs military to take more ‘assertive’ stance in cyberspace - National | Globalnews.ca

    The Department of National Defence’s 'cyber playbook,' obtained by Global News, calls for 'hardened' defences – but also for 'capacity to respond' to hostile nation states.

  • Canada under the gun as NATO allies to present defence spending plans by June

    March 30, 2022 | Local, Aerospace, Naval, Land, C4ISR, Security

    Canada under the gun as NATO allies to present defence spending plans by June

    BRUSSELS - Canada faces fresh pressure to increase its defence spending as the head of the NATO military allia...

  • CSC Celebrates First Visualization Suite Opening in Ottawa

    November 30, 2020 | Local, Naval

    CSC Celebrates First Visualization Suite Opening in Ottawa

    November 27, 2020 | BAE Systems BAE Systems was proud to open the first Visualization Suite for the Canadian Surface Combatant (CSC) officially on 26 November at its offices in Ottawa. BAE Systems were honoured to mark the occasion with Minister of National Defence Harjit Sajjan, and Commander of the Royal Canadian Navy Vice Admiral Art McDonald in attendance for a tour of the suite. The visualization technology will transform the way warships are designed, built and delivered for the Royal Canadian Navy. Using the technology to create a virtual prototype and “Digital Twin” enables a deep understanding of the vessel and the experience of those serving on board before manufacturing begins. The technology allows a fully detailed view of the ship's design from any angle or area with the ability to inspect and examine equipment and systems quickly and easily, a key benefit in maturing and ensuring design, and in supporting the program's prime contractor, Irving Shipbuilding, as it plans for build. Our engineers are able to mature design across countries and time zones, working together with our partners and customer to create the right ship for Canada. The Canadian Surface Combatant is being designed to meet Canada's unique needs and will deliver immense economic benefits in Canada from across the program team. Our visualisation technology promotes efficiency, quality and safety in the CSC program for the Royal Canadian Navy and the Government of Canada. The CSC team, includes BAE Systems as ship designer, Lockheed Martin Canada leading the design team and Irving Shipbuilding as prime contractor who will build the CSC at their Halifax Shipyard. Over 10,000 people are employed in Canada collectively across all the partner companies supporting the design of the Canadian Surface Combatant, with thousands more in long-term, high-value job creation. Across our three Global Combat Ship programs in Canada, the UK and Australia, 3D visualization suites pioneered by BAE Systems in the UK for the Type 26 program are transforming how ships are designed. http://milaero.iconnect007.com/index.php/article/125431/csc-celebrates-first-visualization-suite-opening-in-ottawa/125434/?skin=milaero

All news