Norway's Kongsberg wins record $1.5 bln defence order from Poland | Reuters

On the same subject

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  July 31, 2020 | Local, Aerospace

  Companies highlight jobs, economic spinoffs as fighter-jet competition closes

  OTTAWA — Fighter-jet makers are leading with promises of jobs and other economic spinoffs as they make their final pitches for why Canada should buy their planes to replace the military's aging CF-18 fleet. Friday marks the deadline for U.S. aerospace companies Lockheed Martin and Boeing, as well as Swedish firm Saab, to submit their bids in the current fighter-jet competition, which will see Canada spend up to $19 billion on 88 new planes. The closing of the competition marks a major milestone in Canada's decade-long effort to buy new fighter jets for the Royal Canadian Air Force, which has been plagued by government mismanagement and political controversy. While the combat capability of each of the three competing planes — Lockheed Martin's F-35, Boeing's Super Hornet and Saab's Gripen — will be the main focus as the government evaluates each bid, there will also be a lot of focus on the economic benefits of buying each plane. To that end, Lockheed Martin commissioned a report in February that found up to 4,200 jobs will be created or sustained each year if Canada buys its F-35 stealth fighter, which the company equated to more than 150,000 new jobs over the life of the plane. The analysis provided to The Canadian Press, which was compiled by Toronto-based OMX, also predicted the Canadian economy will see roughly $15 billion in additional activity between now and 2058 if the F-35 is selected to succeed the CF-18 as Canada's primary fighter jet. That is in addition to the $2 billion in economic benefits that Canada has already received since 2007 as one of nine partner countries in the development of the F-35, which lets Canadian companies compete for work associated with the stealth fighter. Canada has contributed US$541 million since 1997 to be a partner in the F-35 program. "Lockheed Martin has prepared a comprehensive proposal," the company said in a statement on Thursday. "The F-35 is the most capable, best-value fighter to strengthen defence, enhance ally partnerships and contribute to economic growth in Canada with significant, long-term industrial opportunities." Lockheed Martin isn't the first to toot its own horn on the potential economic benefits of its fighter. Boeing last month released its own commissioned report showing its existing operations in Canada created $5.3 billion in economic spinoffs last year and supported 20,000 jobs. Boeing says the numbers will go up if the Super Hornet wins, though it has not revealed its exact estimates. The emphasis on jobs and money — rather than combat capability — comes as Canada's economy has been battered by the COVID-19 pandemic, forcing the federal government to spend tens of billions in financial support for Canadians. Defence analyst David Perry of the Canadian Global Affairs Institute said it makes sense for companies to highlight the potential economic benefits of their bids. He said it helps to make the cost more palatable to the public and is also important in determining the winner. "In any competition like this, you're always looking for any potential partial point that you can get," Perry said. "Companies, if they're going to invest this significant time and significant amount of money preparing a bid like this, then they don't leave anything to chance. You make sure you try to wring every single last partial point you can get out of your proposal." This report by The Canadian Press was first published July 30, 2020. Lee Berthiaume, The Canadian Press

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  October 22, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security, Other Defence

  Canada jumps closer to military-spending target thanks to COVID-19's economic damage

  The Canadian Press OTTAWA — Canada has taken a big leap closer to meeting its promise to the NATO military alliance to spend a larger share of its economy on defence thanks to an unexpected assist from COVID-19. New NATO figures released Wednesday show that largely thanks to the pandemic, Canada is poised to spend the equivalent of more of its gross domestic product on defence this year than at any point in the past decade. That is because the alliance expects the Liberal government to hold Canadian defence spending steady even as COVID-19 batters the country's economic output. Yet defence analyst David Perry of the Canadian Global Affairs Institute says the results are unlikely to appease the United States, as Canada continues to fall far short of its promise to NATO to spend two per cent of GDP on defence. "I think they'll be pleased to see positive momentum," Perry said of the U.S., "but it doesn't resolve their concern about where we are." All NATO members, including Canada, agreed in 2014 to work toward spending the equivalent of two per cent of their GDP — a standard measurement of a country's economic output — on defence within the next decade. The promise followed complaints from the U.S. about burden-sharing among allies and broader concerns about new threats from Russia and China as the two countries increased their own military spending. NATO and the U.S. have repeatedly criticized Canada for not meeting the target, with President Donald Trump in December calling Canada "slightly delinquent" during a meeting with Prime Minister Justin Trudeau. His predecessor, Barack Obama, also called out Canada over its defence spending during an address to Parliament in 2016. The U.S. spends more than any other NATO member on defence, both in terms of raw cash and as a share of GDP. NATO Secretary-General Jens Stoltenberg on Wednesday said the continued importance of increasing military spending would be discussed when defence ministers from across the alliance meet this week. The NATO figures show that Canada is poised to spend 1.45 per cent of its GDP on the military this year. That is not only a big jump from the 1.29 per cent last year, but the largest share of the economy in a decade. It also exceeds the government's original plan, laid out in the Liberals' defence policy in 2017, to spend 1.4 per cent of GDP on the military by 2024-25. That is when NATO members were supposed to hit the two-per-cent target. Yet the figures show the expected increase isn't the result of a new infusion of cash for the Canadian Armed Forces this year as spending is expected to hit $30 billion, up just over $1 billion from 2019. Rather, NATO predicts Canadian GDP will shrink by about eight per cent this year as COVID-19 continues to ravage the economy. The fact Canadian defence spending is expected to remain largely steady despite the pandemic is noteworthy, particularly as there have been fears in some corners about cuts to help keep the federal deficit under control. The NATO report instead appears to lend further credence to recent assertions from Defence Minister Harjit Sajjan, Defence Department deputy minister Jody Thomas and others that the Liberals are not readying the axe. Canada also remained 21st out of 29 NATO members in terms of the share of GDP spent on the military as other allies also got a surprise boost from the economic damage wrought by COVID-19. At the same time, Perry said the government has yet to lay out a timetable for when it plans to meet the two per cent target. Military spending is instead expected to start falling after 2024-25, according to the Liberal defence plan. Despite having agreed to the target during the NATO leaders' summit in Wales in 2014, successive Canadian governments have repeatedly described the NATO target as "aspirational." This report by The Canadian Press was first published Oct. 21, 2020. https://www.kamloopsthisweek.com/news/canada-jumps-closer-to-military-spending-target-thanks-to-covid-19-s-economic-damage-1.24224303

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  January 27, 2024 | Local, Aerospace

  Estimated life-cycle cost of military's Cyclone choppers rises to $15.9B | CBC News

  The Department of National Defence (DND) has revised its estimate of the lifetime cost of owning and operating the air force’s CH-148 Cyclones to $15.9 billion — slightly more than a billion dollars higher than its previous estimate.