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By RICHARD SHIMOOKA If the government is serious in its desire to sustain the aerospace, and defence aerospace industry, it must do so through a well-reasoned and resourced strategy. Of all sectors, aerospace has been among the hardest hit in the global economy to date. This not only includes airlines, but manufacturers and maintainers—with decreased orders and reductions in maintenance, repair, and overhaul work due to reductions in service, which has knock-on effects for the rest of the economy. Aerospace is arguably among the most vibrant industrial sectors in the Canadian economy—with high levels of R&D spending and export revenues. Until recently, Canada was a top-five civil aerospace producer internationally, though its position has slid in the past several years. https://www.hilltimes.com/2020/12/30/the-decline-of-canadas-defence-aviation-industry/277088

By Lee BerthiaumeThe Canadian Press OTTAWA - The federal Liberal government has tapped a sailor to steer the Canadian Armed Forces, appointing Royal Canadian Navy commander Vice-Admiral Art McDonald as the next chief of the defence staff. Prime Minister Justin Trudeau announced McDonald's appointment during one of his regular COVID-19 updates on Wednesday, ending months of speculation about who would succeed Gen. Jonathan Vance as Canada's top military commander. “In his new role as chief, Vice-Admiral McDonald will oversee the work of the Canadian Armed Forces, including on vaccine rollout through Operation Vector,” Trudeau said in reference to the military's role distributing COVID-19 vaccines across Canada. “I know that Vice-Admiral McDonald's leadership and expertise will be invaluable as the armed forces continue to work around the clock to keep Canadians safe.” A former frigate captain who oversaw part of Canada's humanitarian response to the devastating earthquake in Haiti in 2010 before commanding the country's Pacific fleet, McDonald will be the first naval officer to serve as the permanent defence chief since 1993. A change of command ceremony is planned for the week of Jan. 11, when McDonald will formally take over from Vance. Wednesday's announcement followed months of speculation around who would succeed Vance, who first announced in July that he was planning to retire after more than five years at the helm. Much of the speculation had revolved around whether Trudeau would appoint Canada's first-ever female chief of the defence staff by tapping Lt.-Gen. Christine Whitecross for the job. https://www.thestar.com/politics/2020/12/23/news-alert-navy-commander-mcdonald-named-new-chief-of-defence-staff.html

Murray Brewster · CBC News No matter which way they are going to be sliced, the numbers will be jaw-dropping. The Parliamentary Budget Officer (PBO) is set, early in 2021, to deliver an assessment of the Royal Canadian Navy's long-anticipated frigate replacement program, a review that will give the public perhaps the clearest view yet of the kind of investment taxpayers will be asked to make in the future fleet. A respected former senior defence official, writing in the military magazine Esprit de Corps this fall, took a stab at running the numbers and they are eye-watering, especially in a post-pandemic world. Alan Williams estimated that when construction and lifetime operating and maintenance expenses are included the new fleet of 15 warships could cost between $213 billion and $219 billion. Circulating within the defence community for weeks, his scathing assessment has apparently caught the attention of the House of Commons government operations and estimates committee, which has requested a copy of the research. Between Williams' biting criticism, the budget officer's anticipated take and a planned auditor general review of the national shipbuilding program, the ground is set in 2021 for a major political battle over defence spending, the likes of which haven't been seen in almost a decade. Back to the future The last time that kind of watchdog firepower was assembled, the former Conservative government's plan to buy the F-35 was blown back to the drawing board, where the fighter jet replacement program remained for years. Back then, the fight was all over numbers and transparency and whether former prime minister Stephen Harper's government was levelling with taxpayers, and just as importantly, whether bureaucrats had done enough homework to justify their choice of the stealth fighter. https://www.cbc.ca/news/politics/navy-frigates-cost-1.5851912

Government considering a deal with commercial airlines seeking financial assistance, sources say Daniel Leblanc · CBC News · Posted: Dec 22, 2020 4:00 AM ET | Last Updated: 9 hours ago The federal government is exploring the possibility of replacing its aging fleet of transportation planes as part of a planned bailout of the country's battered airline industry, federal sources said. While plans to replace the Canadian Armed Forces' five CC-150 Polaris aircraft have been in the works for years, government officials said they have started to look at whether any deal can be found among commercial airlines that are currently looking for financial relief from Ottawa. The airline industry has been one of the hardest hit by the COVID-19 pandemic and is facing a liquidity crisis, having been forced to cut back on a number of regular routes amid a sharp decline in demand. Sources, whom CBC News agreed not to identify in order to discuss confidential elements of the procurement process and talks with the airline industry, said Air Canada is seen as a potential supplier for the fleet, which is used to transport cargo, troops and dignitaries such as the prime minister. Still, the sources said discussions are preliminary. Last week, all potential suppliers were invited to signify their interest in the contract as part of an "invitation to qualify" published on a federal website. "It is not a new project," a defence official said. "The reason why [the Canadian Armed Forces] are looking at this now is really because of the fact there have been significant changes in the global aircraft market this year. They are looking at options to see what suppliers might have available, because order books are looking different than they were a year ago." Another official confirmed the government sees a possible window to inject liquidity into the airline industry at the same time as it seeks to replace its fleet of gas guzzling transport aircraft. "When the government decided a few weeks ago to help the airline sector, there was a situation where it became possible to address two issues at once, namely helping the airline industry at the same time as replacing an aging and polluting fleet," the official said. Proceed with caution Still, aviation expert John Gradek cautioned that a company like Air Canada would much prefer to hold on to its most recent aircraft and sell the older ones to the government. "Would you want to trade old for old?" he asked. Gradek added there are thousands of aircraft parked around the world, and manufacturers, facing a decreased demand, might be willing to offer a deal to the Canadian government. He pointed to Air Transat as a potential Canadian-based supplier facing financial difficulties and surplus capacity. "The airline market is soft; it's a buyer's market," he said. Air Canada declined to comment on the matter. New aircraft needed The five Polaris aircraft were built by Airbus and sold to Wardair in the late 1980s, before being resold to the Canadian Armed Forces in the early 1990s. They are used to transport cargo and troops on military and humanitarian missions, as well as VIPs, including the prime minister, the governor general and foreign dignitaries. Two of them are equipped for air-to-air refuelling and can each help four CF-18s to cross the Atlantic. One of the two Polaris CC-150s that can be used for VIP transport suffered serious damage last year when a motor struck a tow tractor in a hangar and its nose crashed into a wall. The repairs to the aircraft are ongoing. The aircraft designed for VIP use are far from luxurious and fall well below the standard of most aircraft used to transport G7 leaders, both in terms of comfort and communications equipment. THE BIG SPEND As passengers pushed for refunds, Air Canada got more than $400 million for wage subsidy The invitation for suppliers to qualify to provide strategic tanker transport aircraft was published on Dec. 17. The Canadian Armed Forces are once again looking to acquire five aircraft for this new fleet, which will be expected to offer air-to-air refuelling capabilities for the new fleet of fighter jets. Gradek said that once the Polaris CC-150 are replaced, they will likely be headed for the scrapyard. "There is no market for these airplanes," he said. https://www.cbc.ca/news/politics/ottawa-second-hand-market-planes-1.5850140

OTTAWA - Le gouvernement fédéral a annoncé lundi avoir fait l'acquisition d'un système d'aéronef télépiloté au coût de 36,2 millions $ afin de protéger les eaux canadiennes et de surveiller la pollution. Le nouvel appareil est un Hermes 900 StarLiner, est fabriqué par le constructeur aéronautique israélien Elbit Systems. Selon le site web de l'entreprise, l'engin a une envergure de 17 mètres et une masse maximale au décollage de 1'600 kg. Il contribuera à la mise en oeuvre du Programme national de surveillance aérienne de Transports Canada, a indiqué Services publics et Approvisionnement Canada, dans un communiqué. L'engin servira notamment à détecter les déversements de pétrole, à étudier les habitats de glace et d'eau et à surveiller ce qui se passe sur les eaux de l'Arctique canadien. Le programme vise aussi à contribuer aux opérations de recherche et de sauvetage, aux activités humanitaires et à la lutte contre la pêche illégale. «Cet achat jouera un rôle essentiel dans les efforts du gouvernement visant à vérifier le potentiel pratique de la technologie des drones et à l'intégrer en toute sécurité dans l'espace aérien», est-il également noté dans le communiqué. L'aéronef pourra être commandé depuis un endroit éloigné. Il est doté de capacités d'autopilotage, dont le décollage et l'atterrissage automatiques. Son rayon d'action est de plus de 1400 milles marins. Elbit Systems est une entreprise spécialisée dans les technologies de défense. Elle a obtenu le contrat à la suite d'un «processus d'approvisionnement concurrentiel, ouvert et transparent», insiste Ottawa. Il devrait être livré d'ici deux ans. https://www.lesoleil.com/actualite/ottawa-achete-un-avion-sans-pilote-a-36-millions-video-6335da93961d2bf3d3e6a7f8e5bb34fe

The Canadian Surface Combatant project is moored in layers of unnecessary secrecy. Information that has trickled out has been fragmented and contradictory. This suggests anything but smooth sailing. Author of the article: Editorial Board Perhaps, one day, Canada will have 15 splendid new warships, outfitted with cutting-edge technology, that boost our naval security, create thousands of high-quality jobs and offer myriad industrial benefits. But meanwhile, the project to build the Canadian Surface Combatant vessels remains moored in layers of unnecessary secrecy. The information journalists and the Parliamentary Budget Officer have gleaned to-date has been fragmented and contradictory. This suggests anything but smooth sailing. For one thing, there is the issue of cost. The plan to construct the warships has navigated its way through federal governments since the 1990s, but won't start until 2023. It has been delayed time and again; project requirements have changed; and most significantly, the price estimate has soared. Let's start there. The original $14-billion estimate for these ships is now around $70 billion, according to experts. And, as explained by the Citizen's David Pugliese, officials have done everything possible to keep these swelling costs under wraps. While MPs focus on scandals such as the WE Charity debacle (which involved just under $1 billion in grants), there's been little serious parliamentary scrutiny of the spiralling costs of our new-age warships. Next came allegations of bid-rigging (strenuously denied by the government) from some potential contractors, after the procurement rules were changed. In one legal filing, a company noted the parameters of the CSC project has been altered 88 times during the process. Third, while politicians and bureaucrats have argued there will be thousands of high-paying jobs and other industrial benefits, insiders are more dubious. There are no consequences to contractors who don't meet job targets. What is truly scandalous about the shipbuilding affair, however, is the blind insistence on secrecy from all levels of government. Canadian taxpayers will be on the hook for $70 billion (and perhaps more, by the time the first ship sails). Yet journalists from this news organization and others have seen straightforward questions go unanswered; have been threatened with lawsuits; or have had access-to-information queries (that's the law designed to get answers out of government) stalled for years. The Parliamentary Budget Officer has been refused information that was nonetheless shared by government with lobbyists and potential contractors. Project defenders may deride those who raise problems. Yet with so much secrecy, it is impossible for a thinking voter to feel full confidence that the government is competently steering one of its most important files: the nation's defence. Such stonewalling reeks of confusion or incompetence. It's unacceptable in a liberal democracy, and must change. https://ottawacitizen.com/opinion/editorial-choppy-waters-for-canadas-warship-program

A spokeswoman says DND is “confident that we have competitively selected the best design to meet Canada's needs.” David Pugliese • Ottawa Citizen Dec 16, 2020 • Last Updated 1 day ago • 6 minute read Canadian equipment that taxpayers spent hundreds of millions of dollars to develop isn't being used on the country's new $70-billion fleet of warships because the consortium that won the bid selected its own affiliated companies and their foreign systems. A number of Canadian firms repeatedly tried to warn ministers and deputy ministers at the Department of National Defence, Public Services and Procurement Canada as well as Innovation, Science and Economic Development Canada that they would be shut out of the Canadian Surface Combatant project, according to federal government documents obtained by this newspaper. Those concerns were ignored. Instead, Canada left it up to the winning consortium, in this case, the U.S.-controlled Lockheed Martin Canada and BAE of the United Kingdom to determine the equipment that would make up key components of the proposed 15-fleet Canadian Surface Combatant, or CSC fleet. By selecting the consortium's Type 26 warship design for the CSC, the Royal Canadian Navy automatically agreed to what Lockheed Martin had determined was the best equipment for it to use. In the last week, this newspaper has chronicled multiple issues with the CSC project, the most expensive military procurement in Canada's history. This newspaper reviewed thousands of pages of documents, obtained through sources and through the access to information law, to reveal how the CSC's budget has spiralled upward and upward and how government officials previously tried to block the cost of the project from becoming public. In an email, DND defended its choice that shut out inclusion on the CSC of Canadian-made propulsion systems, sonar and communication systems, as well as radar. The Canadian-based firms that build those systems employ hundreds of people in the high-tech sector. “By selecting the design, Canada has selected the associated equipment,” said DND spokeswoman Jessica Lamirande. She noted DND is “confident that we have competitively selected the best design to meet Canada's needs.” As a result, a radar built by Lockheed Martin in the U.S., which hasn't yet been certified for naval operations, will be installed on the CSC. Passed over was a state-of-the art naval radar developed with the help of Thales Canada in Nepean. Canadian taxpayers contributed $54 million to the development of that radar, which is now being used on German, Danish and Dutch warships. Also shut out of the CSC competition is SHINCOM, a naval communications system built by DRS Technologies of Ottawa and considered one of the top such systems in the world. SHINCOM is in service on other Royal Canadian Navy vessels as well as 150 warships of allied navies around the world, including Australia, the U.S., Japan, New Zealand and South Korea. It was originally developed for Canada's Halifax-class frigates and taxpayers have poured millions of dollars into its development. Also left on the sidelines was General Dynamic Mission Systems of Ottawa, Canada's top developer of anti-submarine warfare and sonar equipment. The firm has its systems on aircraft or warships of militaries in Canada, Japan, South Korea, Portugal and various South American nations. Top government officials and politicians were repeatedly warned key Canadian firms would be shut out of the CSC project. Steve Zuber, vice president of DRS Technologies, wrote on Aug. 31, 2016 to alert innovation minister Navdeep Bains that the way the CSC procurement was designed would work against Canadian firms. “The CSC procurement approach may actually disadvantage Canadian companies,” Zuber warned. “The current evaluation approach puts our world-class Canadian solutions at serious risk of not being selected for Canada.” At the heart of the matter was a procurement system that penalized bidders if they deviated too much from their original ship designs to accommodate Canadian equipment. In addition, no competitions were held for key components of the new warships, such as sonar, radar or communications systems. General Dynamics Missions Systems Canada also tried to warn government officials in November 2019 that the lack of competition shut out high-tech Canadian systems developed over the years with both private and tax dollars. Company vice president David Ibbetson told navy commander Vice Adm. Art McDonald, DND deputy minister Jody Thomas, PSPC deputy minister Bill Matthews and ISED deputy minister Simon Kennedy about the lack of competition on the CSC anti-submarine warfare systems. That resulted in a “largely foreign solution with only limited Canadian content,” he noted. The documents also show bureaucrats at ISED countering such concerns by pointing out that the CSC program will include equipment from other firms such as L-3 and CAE in Quebec and MDA in B.C. Lockheed Martin has also committed to invest in priority areas such as cybersecurity, clean technology and the marine sector, innovation minister Bains was told. But the federal government has declined to release other documents requested through access to information law about specifics of the industrial benefits and job creation plan linked to the CSC. There is concern by some in the country's defence industry that the Liberal government has put at risk existing Canadian high-tech jobs, developed and established in part by federal contracts and development money, in exchange for the promise by foreign companies to create new jobs in the future linked to the CSC. In addition, in November 2019, the Lockheed Martin Canada executive responsible for delivering on the industrial commitments admitted the system had major problems. Walt Nolan said the policy the Canadian government developed has prompted defence firms to significantly overcommit on the jobs and industry benefits they claim they can deliver on the CSC. But Lockheed Martin has significant support from the leadership of the Royal Canadian Navy, including Vice Adm. McDonald. In July, McDonald took to Twitter to promote the company and its SPY-7 radar, noting that such a system is critical to a warship's survival and how it performs on missions. “For these reasons, the Royal Canadian Navy is delighted that Canada's Combat Ship Team under Lockheed Martin Canada leadership will fit the SPY-7 in CSC,” wrote McDonald, in retweeting the company's press release about the radar. But McDonald's enthusiastic corporate plug left out some critical information, namely that the SPY-7 radar had never been installed on an actual warship. Less than a month before McDonald's tweet, Japan's government, which had been hoping to use SPY-7 radar for a land-based missile defence system, suspended the project. Japan cited technical issues and cost for the decision and is now trying to figure out what to do with the systems it has already paid for. Japan's military has suggested using the SPY-7 on new frigates but some of the country's lawmakers are trying to scuttle that plan. They are worried that Japan will pay significant development costs to get the radar ready for maritime use and since the U.S. Navy will use a completely different system there will be problems operating with a key ally. While the SPY-7 radar issue has been debated in Japan's legislature, Canadian politicians have been silent. Lockheed's rival, Raytheon, the firm which will provide the SPY-6 radar for the U.S. Navy, has made several presentations to the Liberal government. It tried to convince politicians and bureaucrats the Lockheed Martin system could become a money pit that would potentially put Canadian sailors at risk. Switching to SPY-6 would save Canada tens of millions of dollars as the U.S. Navy would finance future research into modernizing the radar to deal with new threats, federal officials were told. In addition, Raytheon pointed out that unlike the SPY-7, the testing of its radar, which included intercepts of targets, was completed in 2019. The U.S. Navy intends to install the system on 50 of its warships. But cabinet ministers and federal bureaucrats dismissed Raytheon's overtures as an attempt to reverse the CSC procurement process that had already been completed. Neither Lockheed Martin nor the DND could provide a date on when the SPY-7 will be ready for naval operations and certified for use on the CSC. But they noted the company is supposed to deliver the first radar system in 2025. “Once fully integrated into the CSC design, the SPY-7 will provide Canada the capabilities it needs to meet the operational and interoperability requirements of the Royal Canadian Navy well past the middle of this century,” added DND spokeswoman Lamirande. Responses from DND and Lockheed Martin to questions posed by this newspaper for this story were answered in nearly identical fashion. Canadian taxpayers will finance the development and testing of any of the radar requirements for the CSC. The cost of that, however, is not known at this point. https://ottawacitizen.com/news/national/defence-watch/top-of-the-line-canadian-made-naval-equipment-shut-out-of-70-billion-warship-program

Naval News December 2020 Navy Forces Maritime Defense Industry POSTED ON WEDNESDAY, 16 DECEMBER 2020 15:05 BAE Systems has been awarded a contract by Fleetway Inc. to deliver a range of digital solutions for on-shore support of Royal Canadian Navy (RCN) vessels. This contract will see the deployment and integration of BAE Systems' Integrated Data Environment (IDE) to enable effective and efficient shore-side support to Halifax-Class frigates. Fleetway will benefit from access to a range of BAE Systems digital capabilities, including its expertise in configuration management, obsolescence management, and digital twinning. The IDE will allow Fleetway engineers and their enterprise partners to collaborate easily and gain access to engineering life cycle management data, as well as to share, withdraw, edit and re-publish data necessary for supporting the vessels. It will also facilitate a clearer understanding of the complex network of interdependencies between ship systems and components. This will help decrease support time and cost and enable Fleetway to maximise fleet availability. “As the prime contractor providing in-service support to the Halifax Class frigates, Fleetway is well known for its outstanding naval engineering and design services,” commented John Newton, Managing Director Fleetway. “To meet the challenges of the next phase in the life of these incredible Canadian-built warships, we have partnered with a world-best to assure excellence in the delivery of our services to the Royal Canadian Navy. Our combined intellect and efforts, especially the adoption of advanced digital tools informed by decades of learning on these complex ships will facilitate agile, smart and efficient solutions to the toughest engineering and maintenance challenges while keeping the fleet available for operations.” “This contract is testament to our pedigree in naval ship support and the value that our digital solutions and expertise have been shown to deliver,” added Darren Nice, Head of Digital Services at BAE Systems Maritime Services. “As organisations and armed forces around the world continue to digitise their operations, we will continue to develop a range of first-class integrated, through-life, digital solutions that help organisations deliver operational excellence and maximum availability.” BAE Systems brings a strong pedigree of maritime and information management expertise to this partnership. The Company has recently delivered a number of sophisticated information and data management and digital support solutions for other navies around the world. This is the latest in a series of contracts awarded to BAE Systems for work with the Royal Canadian Navy. In February 2019, BAE Systems' Type 26 Global Combat Ship was chosen as the design for the Canadian Surface Combatant (CSC), Canada's 15 new multi-purpose frigates. BAE Systems also supports and repairs Canada's Victoria-class submarines and BAE Systems recently hosted the Royal Canadian Navy's Halifax-class frigate, HMCS Toronto, at Portsmouth Naval Base, where it performed a number of repairs. This Halifax-class project further underscores the trust placed in BAE Systems to deliver technological innovation to the Canadian Armed Forces. https://navyrecognition.com/index.php/news/defence-news/2020/december/9427-bae-systems-secures-fleetway-contract-to-provide-digital-support-to-royal-canadian-navy.html

By Garrett Reim14 December 2020 Saab is offering to open two new aerospace centres as part of its Gripen E proposal for Canada's Future Fighter Capability Project. The aerospace facilities, the Gripen Centre and the Aerospace Research & Development Centre, would be based in the greater Montreal region, the company announced at Aero Montreal's International Aerospace Innovation Forum 2020 on 14 December. Mission system software and hardware development, as well as integration, for the proposed Royal Canadian Air Force (RCAF) Gripen E would be done at the Gripen Centre. The Aerospace Research & Development Centre would focus on a variety of aerospace technologies, including automation, artificial intelligence and “greening” technologies. That work may or may not be directly related to the Gripen E. Rather, the research and development would focus on next-generation aerospace technologies more generally. Saab is also in talks with undisclosed local universities about partnerships related to the aerospace centres, it says. Saab has only about 50 people working in Canada currently, across various businesses such as maritime traffic management and army training and simulation work. However, between the two aerospace centres, the company anticipates at least 3,000 people being directly employed. The RCAF is looking to buy 88 advanced fighters to replace its fleet of Boeing CF-18 Hornets. Canada's Department of National Defence estimates acquisition of the aircraft, related equipment and entry into service will cost C$15-19 billion ($11.8-14.9 billion). A contract is scheduled to be awarded in 2022 after evaluation by the RCAF. The air force wants the first jets received as soon as 2025. The new fleet is expected to fly beyond 2060. In addition to Saab, the RCAF received bids in July from Boeing, which is offering its F/A-18E/F Super Hornet, and Lockheed Martin, which is offering F-35 Lightning II stealth fighters. Canada is also part of the F-35 Joint Strike Fighter programme, spending more than $500 million on the effort since 1997, an investment that has allowed Canadian companies to secure C$1.8 billion in contracts from the project. However, Ottawa has not yet committed to buying F-35s, hence the acquisition competition. Politicians objected to F-35s in part due to the high cost of early examples of the stealth fighter. The cost of the F-35A has fallen to $77.9 million per unit, though operating costs remains high, at $35,000 hourly. Lockheed has promised to lower that figure to $25,000 hourly by 2025. For its part, Saab has proposed that Canada's IMP Aerospace & Defence would handle in-country production of the Gripen E, and provide support over the lifetime of the fleet. The company says initial aircraft would be produced in Sweden to meet Ottawa's goal of first fighter delivery in 2025. It is still evaluating how many aircraft could be made in Canada, but says it aims to “maximise” the number. The rest of the Saab Gripen for Canada team would include CAE, which is to provide training and mission systems; Peraton Canada, which is to supply avionic and test equipment, as well as component maintenance, repair and overhaul, and material management; and GE Aviation, which is set to provide and sustain the fighters' turbine engines. https://www.flightglobal.com/fixed-wing/saab-offers-two-aerospace-centres-in-gripen-e-proposal-for-canadas-future-fighter/141602.article