August 7, 2024 | Local, Aerospace

Canada’s P-8A Poseidon aircraft procurement bringing investment and economic growth to British Columbia

News release

August 7, 2024 – Richmond, British Columbia – National Defence / Canadian Armed Forces

Today, the Honourable Bill Blair, Minister of National Defence, welcomed Boeing’s $61 million investment in the British Columbian aerospace sector. This investment is part of the Industrial and Technological Benefits (ITBs) included in Canada’s decision to procure up to 16 P-8A Poseidon aircraft from the United States Government and Boeing through the Canadian Multi-Mission Aircraft (CMMA) project.

Canada’s investment to procure up to 16 P-8A aircraft for the Royal Canadian Air Force (RCAF), as announced by Minister Blair in November 2023, will support over 3,000 jobs and add approximately $358 million to Canada's economy, every year for the next 10 years.

As part of its requirements to invest in Canada as the supplier of the P-8A fleet, today, Boeing announced $61 million in investments in British Columbia’s aerospace sector.

Boeing will invest $48 million to build research and development capacity within Boeing’s Vancouver facility. This investment will help ensure Canada’s aerospace industry remains at the forefront of technological advancements. In particular, Boeing’s investment is geared towards data analytics technologies to enhance program management, aircraft sustainability and performance. Through the usage of complex modelling and machine learning techniques, Boeing Vancouver will develop program management tools for the sustainment of aircraft fleets, enabling its Vancouver workforce to contribute to delivering higher aircraft performance and lower sustainment costs.
Boeing will also invest $13 million into Indigenous-owned COTA Aviation, based in Parksville, B.C. This investment will establish a hands-on aerospace manufacturing training facility geared towards increasing the representation and participation of Indigenous peoples in aerospace and defence. The program will train 10 workers per year and will help develop a workforce that is capable of filling needed manufacturing positions. Workers will be trained to operate modern and advanced manufacturing equipment, including robotic automation. COTA will also assist Indigenous learners in work placement at the end of the program. These initiatives will contribute to job creation and skills development in British Columbia.

Minister Blair noted that these investments are yet another demonstration of how investment in the Canadian Armed Forces supports economic growth and skill development in Canada’s defence and aerospace sectors.

Through the Canadian Multi-Mission Aircraft (CMMA) project, Canada is acquiring a new fleet of aircraft that is ready to meet Canada’s security needs, and interoperable with allies and key partners. The P-8A will replace Canada’s current maritime patrol aircraft, the CP-140 Aurora, which has been in service for more than 40 years.

The P-8A will provide Canada an advanced multi-mission platform to conduct maritime and overland surveillance in defence of Canada and to support our allies. This procurement will allow Canada to seamlessly transition to a replacement capability, thereby ensuring that Canada can continue to meet its domestic needs and international obligations.

Quotes

“Our incoming fleet of up to 16 P-8A Poseidon aircraft will provide our aviators with the tools that they need to protect our sovereignty – and at the same time, it is creating economic growth and good jobs for Canadians. As our government invests more in defence, we are ensuring that these investments deliver real value for the Canadian Armed Forces, the Canadian economy, and Canadian workers. I thank Boeing for its work to deliver this new fleet of aircraft to Canada – and I welcome its major investments in British Columbia’s aerospace sector.”

The Honourable Bill Blair, Minister of National Defence

“The aerospace sector is a cornerstone of our economy and supports well-paid jobs for Canadian workers. Major defence procurement projects allow us to not only strengthen the operational capabilities of our armed forces, but also ensure that companies in the Canadian supply chain can get significant economic benefits. This multi-million dollar investment further consolidates our aerospace industry’s position as a global leader of innovation and technology, and supports Canadian businesses, including Indigenous-owned businesses.”

The Honourable Jean-Yves Duclos, Minister of Public Services and Procurement

“Boeing’s significant investments in British Columbia under the Industrial and Technological Benefits (ITB) Policy underscore our government’s commitment to advancing Canadian innovation and economic prosperity. By supporting COTA Aviation’s Indigenous skills training and bolstering Boeing Vancouver’s capabilities in data analytics, Boeing is enhancing aerospace capabilities while fostering sustainable growth and creating high-value career opportunities. Through our ITB Policy, we are dedicated to ensuring Canada remains a global leader in aerospace excellence”

The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry

“Headquartered in Richmond’s technology and innovation hub, Boeing Vancouver has greatly contributed to our economy and provided well-paying jobs to workers and families in British Columbia. The investments announced today by Boeing will further grow our regional economy and support generational work across our community. I am encouraged by Boeing’s continued commitment to tech advancements in ensuring that Richmond remains a hub of innovation.”

Parm Bains, Member of Parliament for Steveston—Richmond East

"This collaboration is a testament to Canada's strength in the aviation industry and reflects Boeing's unwavering commitment to the country where we have consistently driven innovation for over a century. It’s wonderful to forge greater partnerships and growth in the province of British Columbia where our journey began back in 1919 symbolizing our enduring dedication to shaping the future of aerospace in Canada."

Al Meinzinger, President of Boeing Canada.

Quick facts

Canada has finalized a government-to-government agreement with the United States (US) Government under the Foreign Military Sales program for the acquisition of up to 16 P-8A Poseidon aircraft for the Royal Canadian Air Force (RCAF). Fourteen multi-mission aircraft are being procured, with options for up to an additional two.
The P-8A will replace Canada’s current maritime patrol aircraft, the CP-140 Aurora. The CP-140 Aurora fleet was originally procured in 1980 and is currently scheduled to retire from service in 2030. At that point, it will have been in service for almost 50 years and is already facing significant obsolescence challenges. Procuring a new fleet is required to continue protecting Canadian sovereignty along our three coastlines.
After significant engagement and thorough analysis, the Government of Canada is confident that the P-8A delivers the best anti-submarine and intelligence, surveillance, and reconnaissance (ISR) capabilities for our country. The aircraft will operate seamlessly with allies. This platform is a proven capability that is operated by all our Five Eyes allies—the United States, the United Kingdom, Australia, and New Zealand—as well as other defence partners.
The estimated investment for this project is $10.4 billion CAD; it includes up to $5.9 billion USD for the P-8A, associated equipment, simulators, training devices and sustainment set-up. The balance will cover additional investments in infrastructure and weapons.
The first P-8A is expected to be delivered in 2026, and with an average of two aircraft delivered every three months, all of the aircraft could be delivered as early as fall 2028. We anticipate full operational capability by 2033.
The P-8A aircraft will be based at 14 Wing Greenwood, N.S. and 19 Wing Comox, B.C.
Canada’s Industrial and Technological Benefits (ITB) Policy, including the Value Proposition, applies to the CMMA project. This requires that Boeing provide business activities and make investments to the Canadian economy equal to the value of its activities related to the Foreign Military Sale.
As part of this project, Boeing will provide meaningful business activities and make targeted investments in Canadian industry to support the growth of our aerospace and defence sector. To that end, Boeing has plans to integrate Canadian companies in global supply chains, develop clean technologies and support the development of skills and training in Canada.
This year, Canadians are celebrating the 100th anniversary of the Royal Canadian Air Force. As we mark this anniversary, the Government is making the largest investment in the Royal Canadian Air Force since the Second World War. In the past two years, the Government has signed deals to acquire approximately 200 new aircraft for the RCAF – including new fleets of F-35 fighter jets, P-8A Poseidon multi-mission aircraft, Remotely Piloted Aircraft, Strategic Tanker and Transport Aircraft, training aircraft and more.

Associated links

https://www.canada.ca/en/department-national-defence/news/2024/08/canadas-p-8a-poseidon-aircraft-procurement-bringing-investment-and-economic-growth-to-british-columbia.html

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