Back to news

June 18, 2024 | Local, Naval

Foreign & Defence

On the same subject

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

    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/

  • ANALYSIS | There's a price to pay for being unready for war. Will Canada have to pay it again? | CBC News

    July 21, 2024 | Local, Land, Security

    ANALYSIS | There's a price to pay for being unready for war. Will Canada have to pay it again? | CBC News

    Canada's pattern, said outgoing chief of the defence staff Gen. Wayne Eyre, is to go into every war unprepared and underequipped. That pattern has killed Canadian soldiers in the past. Can it be turned around?

  • Top Aces secures $100 million in financing for international expansion

    November 27, 2019 | Local, Aerospace

    Top Aces secures $100 million in financing for international expansion

    Top Aces Inc., a world leader in airborne training, announced that it will receive a new investment in share capital from Clairvest Group Inc., its lead shareholder, the Caisse de dépôt et placement du Québec (CDPQ) and its other existing investors. This financing will support Dorval, Que.-based Top Aces' international expansion, allowing it to acquire new aircraft to enhance and diversify its service. “This investment provides major support for the growth of our airborne training services, particularly in rapidly-expanding international markets,” said Paul Bouchard, president and chief executive officer of Top Aces. “By joining our existing investment partners, CDPQ further solidifies a strong and long-term shareholding base that will enable Top Aces to take on new challenges in new countries.” “Top Aces is a Quebec company recognized for the quality of its services and its unparalleled safety record within the air training sector,” said Charles Émond, executive vice-president, Québec, Private Equity and Strategic Planning, at CDPQ. “With this investment, Top Aces will pursue international growth and consolidate its leadership position within its industry.” https://www.skiesmag.com/press-releases/top-aces-secures-100-million-in-financing-for-international-expansion

All news