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News Release From National Defence February 14, 2018, Brussels, Belgium — National Defence / Canadian Armed Forces The Government is committed to both the security and safety of Canadians and the protection of their rights and freedoms. Canada is playing a strong and constructive role in the world by making concrete contributions to international peace and security – including at the North Atlantic Treaty Organization (NATO). NATO is a cornerstone of Canada's international security policy and today the Government announced its intention to rejoin to the Alliance's Airborne Warning and Control System (AWACS) program. Programs such as AWACS, and the joint intelligence, surveillance, and reconnaissance it provides, are increasingly relevant in today's security environment. In response to the challenges posed by that environment, NATO has significantly increased the use of its AWACS operations, including in areas like Central and Eastern Europe where Canada is leading a multinational NATO battlegroup based in Latvia. Canada decided to withdraw from the AWACS program in 2011 following the Department of National Defence's 2010 Strategic Review. Quotes “NATO is a cornerstone of Canada's international security policy, and is one of our most important multilateral relationships. In that spirit, Canada has decided to rejoin NATO's Airborne Warning and Control System. AWACS is a key NATO capability that we will support by contributing to its operations and support budget. We have committed to keeping Canada engaged in the world, and continuing to commit ourselves to NATO and its missions are important steps toward that goal.” Harjit S. Sajjan, Defence Minister Quick Facts The Airborne Warning and Control System (AWACS) was established in 1978 and consists of a fleet of NATO-owned aircraft giving the Alliance abilities to conduct long-range aerial surveillance, and to command and control forces from the air. Part of Canada's commitment to NATO, as outlined in Strong, Secure, Engaged, includes: Leading and/or contributing forces to NATO and coalition efforts to deter and defeat potential adversaries, including terrorists, to support global stability; Leading and/or contributing to international peace operations and stabilization missions with the United Nations, NATO, and other multilateral partners. The NATO Airborne Warning and Control System has sixteen E-3A aircraft. These modified Boeing 707s are easily identifiable from the distinctive radar dome mounted on the fuselage. The E-3A usually operates at an altitude of around 10 km. From this altitude a single E-3A can constantly monitor the airspace within a radius of more than 400 km and can exchange information – via digital data links – with ground-based, sea-based and airborne commanders. By using pulse Doppler radar, an E-3A flying within NATO airspace can distinguish between targets and ground reflections and is therefore able to give early warning of low- or high-flying aircraft operating over the territory of a potential aggressor. Contacts Byrne Furlong Press Secretary Office of the Minister of National Defence Phone: 613-996-3100 Email: byrne.furlong@forces.gc.ca Media Relations Department of National Defence Phone: 613-996-2353 Email: mlo-blm@forces.gc.ca https://www.canada.ca/en/department-national-defence/news/2018/02/canada_rejoins_natoairbornewarningandcontrolsystemprogram.html

Le niveau de classification « confidentiel défense » sera supprimé d'ici à fin 2019. LE MONDE | 30.01.2018 à 16h17 • Mis à jour le 31.01.2018 à 11h15 | Par Nathalie Guibert Le « secret-défense » occupe une place centrale dans la démocratie française : 400 000 personnes habilitées dans l'appareil d'Etat en 2017, 4 000 officiers de sécurité dans les entreprises et les administrations, 5 millions de documents classifiés et un accès parcimonieux imposé aux archives historiques. Il va être réformé d'ici à fin 2019, a annoncé le secrétariat général pour la défense et la sécurité nationale (SGDSN) mardi 30 janvier, en dévoilant ces chiffres. Cet organe dépendant du premier ministre publie son deuxième rapport sur le sujet en espérant en faire « la pédagogie auprès du Parlement et de l'opinion ». Une concertation interministérielle est en cours pour satisfaire deux priorités : « Faciliter les échanges de données avec les pays alliés en alignant les niveaux de classification » et « améliorer la protection de l'information classifiée dématérialisée face à la menace cyber ». Les grands alliés de la France, les Etats-Unis et le Royaume-Uni en tête, ont des classifications équivalentes et la réforme aura pour but de faciliter les échanges de renseignement bilatéraux, mais aussi dans l'OTAN et au sein de l'Union européenne (UE), qui ont édicté des cadres communs. De trois à deux niveaux de classification Paris a signé 41 accords généraux de sécurité avec des Etats étrangers, rappelle le SGDSN. Dans le cadre des exportations d'armement, le volet protection du secret est majeur : il a fait l'objet d'un long travail pour aboutir à un accord gouvernemental particulier entre la France et l'industriel Naval Group (ex-DCNS) dans le cadre de la vente de sous-marins à l'Australie. Les autorités de Canberra s'étaient vivement inquiétées après des fuites de données sur le précédent contrat de vente de navires à l'Inde. l s'agit également de simplifier les procédures, afin « d'éviter une inflation inutile de données classifiées », assure le secrétaire général, Louis Gautier, alors que chercheurs, juges d'instruction et associations de défense des droits de l'homme critiquent aujourd'hui les excès du secret-défense. Des trois niveaux de classification – « confidentiel défense », « secret défense » et « très secret défense » – seul les deux derniers subsisteront. Dans les faits, la grande majorité des informations, classées « confidentiel défense » seront intégrées au niveau supérieur « secret défense » (10 % des documents aujourd'hui). Au sein du « très secret », une classification spéciale « X secret » sera apposée sur les informations les plus sensibles, accessibles à des groupes très restreints de personnes (moins d'une dizaine) et bénéficiant de réseaux de transmission particuliers. Entrent dans la classification la plus haute la plupart des documents opérationnels (opérations militaires, de chiffrement, cyber-opérations), ainsi que les données de recherche présentant un risque de prolifération pour des armes de destruction massive et les informations de la dissuasion nucléaire. Faciliter l'accès aux archives historiques Ainsi, « une note informant le président de la République du mode d'action et du pays responsable d'une attaque informatique contre une entreprise, qui pouvait relever du “confidentiel” sera à l'avenir “secret défense” ; le planning de sortie des sous-marins nucléaires sera classé “très secret” ; et les plans de renouvellement des armes nucléaires sera “X secret” », illustre un spécialiste du SGDSN. Le gouvernement « réfléchit » par ailleurs à un moyen de faciliter l'accès aux archives historiques, avec un système d'ouverture semi-automatisé lorsque les dates de prescription (50 ans ou 100 ans selon les cas) sont atteintes. La mandature de François Hollande a été marquée par un « effort de déclassification », assure encore le SGDSN, avec 3 672 documents déclassifiés par le ministère de l'intérieur, 2 569 par celui des armées, et 38 par celui de l'agriculture pour l'année 2016. Le SGDSN cite la promesse d'ouvrir les archives de l'Elysée sur le génocide du Rwanda. Mais cet engagement de 2015 n'a pas été suivi d'effets, avait dénoncé dans Le Monde en août 2017 un collectif d'historiens et d'avocats. Le président de la République Emmanuel Macron a pour sa part promis en novembre 2017 lors de sa visite au Burkina Faso de déclassifier la part française des archives relatives à l'ancien président Thomas Sankara, assassiné lors d'un putsch dans ce pays en 1987. Une dizaine de procédures sont en cours devant la justice pénale pour compromission du secret-défense, dont deux concernent des officiers du ministère des armées. http://www.lemonde.fr/politique/article/2018/01/30/la-france-va-adapter-son-secret-defense-pour-mieux-echanger-avec-ses-allies_5249279_823448.html

DAVID LJUNGGREN OTTAWA REUTERS UPDATED FEBRUARY 15, 2018 Boeing Co, locked in a trade dispute with the Canadian government, has applied to stay in the race to supply Canada with 88 new fighter jets, three well-placed sources said on Thursday. Companies had until Feb. 9 to express an interest in taking part in a competition for planes worth between $15-billion and $19-billion. Ottawa will release its specifications next year, at which point firms can bid. Boeing did let Canada know it was interested, said the sources, who requested anonymity because they were not authorized to speak to the media. The decision does not mean the firm will necessarily put forward its F-18 Super Hornet. Boeing did not immediately respond to a request for comment. The U.S. aerospace company infuriated the Canadian government last year by launching a trade challenge against planemaker Bombardier Inc, accusing it of dumping airliners in the American market. Although a U.S. trade commission dismissed the complaint on Jan. 26, Boeing can still appeal the decision or launch another complaint against the Canadian firm. Well-informed sources said last week Ottawa has made clear to Boeing that its chances of winning the 88-jet deal would be harmed if it pursued the Bombardier case. Defense experts say Lockheed Martin Corp's new F-35 stealth fighter is likely the front runner. Dassault Aviation SA and Airbus SE also are expected to compete, but with planes that first flew in the 1990s. Ottawa says bids will be evaluated in part on the basis of "past and recent economic behavior of potential bidders leading up to the procurement." That test is months away from being finalized, meaning Boeing has no idea whether Ottawa would be satisfied if it did drop the challenge, the sources said. https://www.theglobeandmail.com/news/national/boeing-still-in-race-to-supply-canada-with-fighter-jets-sources/article37993487/

By Alejandro López 8 February 2018 Defence spending will double by 2024, Defence Minister María Dolores de Cospedal has told Spain's parliamentary Defence Committee. The defence budget will increase from 0.8 percent of GDP (€8.7 billion) to 1.53 percent (€18.47 billion). To limit popular opposition to war and anger against increased military expenditure, while austerity has decimated public services and made life more precarious for millions of workers and youth, Cospedal refused to publish the letter addressed to NATO outlining the increase, as she had initially promised. She claimed that part of the content was classified as secret. Secrecy also surrounds the real level of current military spending. According to the pacifist organisation Centre Delàs d'Estudis per la Pau, there is a whole swathe of military related expenditure that is excluded from the defence budget. If social security, pensions and insurance for the military, missions abroad, state aid for military research and development at private companies, the budget of the militarised Civil Guards and NATO fees were included, then the true figure would stand at around €18.8 billion. By 2024, it will really be “the implausible figure of €28 billion a year,” the Centre declared. Spain's increase in military expenditure is in response to the agreement made at last May's NATO summit, under intense pressure from the Trump administration, for all NATO members to increase defence spending by 2024 to 2 percent of GDP. Cospedal admitted that the increase to 1.53 percent fell short of NATO's objective, but insisted it would “facilitate the achievement of that horizon in future years” and was in line with targets set by other European countries. An idea of the scale of the upgrade and renewal of the military can be gathered from the list of new equipment that will be purchased. Included are 348 new Piranha 5 armoured infantry vehicles, which are designed for close combat situations, five F-110 frigates, four S-80 submarines, three Multi Role Tanker Transport refuelling aircraft, 23 NH-90 helicopters, a Reaper unmanned aerial vehicle (UAV) and a new training aircraft. In addition, the army will acquire a new Command and Control System and the renovation of its barracks, 17 Chinook helicopters will be modernized, and Spain will contribute funds towards the replacement for the F-18 fighter jet. Cospedal confirmed that the military spending in Spain's participation in 17 military missions around the globe last year was €835 million, 8.2 percent more than the previous year. Spain will participate in the European Union's (EU) Permanent Structured Cooperation (PESCO) on security and defence and will head the Command and Control System for EU Missions and Operations. PESCO was agreed last November by 23 of the EU's 28 member states “to jointly develop defence capabilities and make them available for EU military operations.” Spain's commitment to PESCO reflects the attempt by the ruling elite in Spain and in Europe to defend their economic and military positions vis-a-vis actual and potential competitors, in a situation threatened by Brexit and the Trump administration's “America First” policy. The Spanish government is attempting to straddle the contradictions of supporting both the German-led PESCO and the US-led NATO, two militarist projects that are incompatible in the long term. This was reflected in a resolution proposed by the government to be debated in an upcoming parliamentary session, which calls for improvements to EU-US relations in the sphere of defence, while concluding that “Europeans must assume more than ever before the responsibility of our own security.” The growth of Spanish militarism, as elsewhere globally, is the response of the ruling class to rising inequality, the deepening economic crisis and the growing conflicts between the major powers. Its aim, as recently expressed in the new US National Security Strategy, is the conquest of new spheres of influence, markets and raw materials—above all in conflict with Russia and China—and to deflect social tensions outwards. The main obstacle for the Spanish ruling class is the population's traditional hostility towards the military. This was recently revealed in the attempt to open a debate to re-impose conscription, following the example of France under President Emmanuel Macron. All the main dailies published articles and opinion pieces bemoaning the population's hostility to such a measure. The pro-militarist senior researcher for the Real Instituto Elcano, Félix Arteaga, complained to El Mundo, “Raising it [conscription] here would be political suicide, first because there is no military need to justify it, and second, because the concept of obligation is not liked by Spanish society. There is no mentality or culture of national identity and, of course, no one believes that you should lose your life for the defence of the country.” The ability of Spain's ruling elite to pursue its military ambitions is to a large extent due to the role of the pseudo-left Podemos, which has been virtually silent on these developments or has openly endorsed them. Last month Podemos covered up for increased Spanish intervention in Mali, where an EU “Training Mission” still continues five years after jihadist groups overran the north of the country in 2012, prompting a wave of refugees. Thousands attempted to cross the Mediterranean to Europe, and many drowned. On January 24, Cospedal appeared before the Defence Commission to get belated authorisation for approving Spain's taking over control of the mission and sending in more troops on January 9. She warned the commission that increased involvement in the EU intervention was “fundamental” and that North Africa was “a strategic place” for Spain. Juan Antonio Delgado, the Podemos spokesperson for military affairs, complained that Cospedal had “broken the law” by sending in the troops before parliamentary approval. He revealed, “I was in Mali three months ago and I learned that Spain would take over the operation,” before asking Cospedal, “In that time has there not been time to ask for authorization?” The obvious question is why Delgado himself did not pursue the issue... and when it came to the vote [on authorisation] at the commission he merely abstained. Even more explicit was Podemos General Secretary Pablo Iglesias, who attacked Cospedal from the right over the death of a pilot killed in a jet crash last October. He told her, “Patriotism is defending the rights of the professionals of our Armed Forces. It is shameful that in this country some who fill their mouths talking about our homeland do not respect the rights of workers who are here to protect us all and whose lives cannot be endangered.” Such statements prove Podemos is a pro-war party, offering itself as a reliable political platform for Spanish militarism. Since its foundation, Podemos has created branches in the army and made an explicit effort to articulate its main demands. Former Chief of the Defence Staff Julio Rodríguez Fernández has stood as a Podemos candidate in recent parliamentary elections and is the general secretary of Podemos in the municipality of Madrid, where he will be the party's main candidate in next year's elections. https://www.wsws.org/en/articles/2018/02/08/spai-f08.html

Airbus has revealed that it is exploring the introduction of military derivatives of the A320neo family. Speaking at the Singapore air show, Fernando Alonso, head of military aircraft at Airbus Defence & Space, said that the new platform could undertake missions such as VIP transport, intelligence, surveillance and reconnaissance and maritime patrol. "We have the knowledge of converting the A330 into the A330 MRTT [multirole tanker transport], and have a more efficient process." Alonso says that the efficiency of new-generation engines will enable a more capable military derivative. Any future conversion will require between "six to eight months" to complete, he says. Airbus is in talks with a number of operators, including the armed forces of Asia-Pacific nations such as Indonesia, Malaysia, New Zealand, the Philippines, alongside European stalwarts France, Germany and the Netherlands. The airframer is also working to add new capabilities to its existing military platforms: the A400M, A330 MRTT and C295. It will allow A400M operators to drop up to 60 paratroopers from both sides of the aircraft simultaneously, while the A330 MRTT is expected to be ready to conduct automatic air-to-air refuelling "in less than three years". Airbus is also exploring the possibility of allowing the remodelled widebody to take on ISR missions. Airbus is still proceeding with an "armed version" of the C295 medium transport, with the derivative in the engineering, development and testing phase. Flight tests will begin in late 2018. "There are big opportunities for us in Asia-Pacific: big fleets are here, budgets are here. We are able to fulfill needs in a more agile way," says Alonso. https://www.flightglobal.com/news/articles/singapore-airbus-explores-a320neo-military-derivati-445670/

OCEAN2020, a European Defence Fund initiative, will boost technological research in the naval domain also by the integration of unmanned platforms in surveillance and interdiction missions Leonardo is a leader in systems integration and will lead a team of 42 partner companies including Saab, Safran, PGZ and MBDA, research bodies such as NATO CMRE and the defence ministries of five countries The first operational demonstration will take place in 2019 in the Mediterranean Sea. The demo will involve Leonardo's ‘Hero' and ‘Solo' unmanned helicopters, naval vessels and systems from a number of partners, including Italian Navy's vessels equipped with Leonardo's systems Leonardo was awarded the most important project related to the first European Defence Found's initiative, OCEAN2020, to boost Europe's defence capabilities, issued by the European Union under the ‘Preparatory Action on Defence Research' programme. The competitive selection was conducted by the European Defence Agency and will be contracted in the coming weeks. The OCEAN2020 team, which will be led by Leonardo, comprises 42 partners from 15 European countries. These include the Ministries of Defence of Italy, Greece, Spain, Portugal and Lithuania, with additional support from the Ministries of Defence of Sweden, France, the United Kingdom and Estonia and the Netherlands. European industrial partners include Indra, Safran, Saab, MBDA, PGZ/CTM, Hensoldt, Intracom-IDE, Fincantieri and QinetiQ. A number of research centres include Fraunhofer, TNO, CMRE (NATO) and IAI. “We are extremely pleased with this result, the OCEAN2020 initiative has a high level of strategic and technological-operational value” said Alessandro Profumo, CEO of Leonardo. “It is the leading technological research project dedicated to the very topical issue of maritime surveillance, which is of interest across Europe and to the Mediterranean region in particular. This success has been made possible thanks to the strong collaboration between all 42 team partners which we have the honour to lead.” OCEAN2020 is the first example of a cross-European military research programme to-date. The Leonardo-led bid required a thorough analysis of operational requirements and a technologically-innovative yet operationally-realistic proposal. The research project also will see the integration of unmanned platforms in surveillance and interdiction missions. The success in winning the tender both highlights, and will enhance, Leonardo's strength in naval products and integrated systems. The company's expertise in the domain includes command and control systems, unmanned aircraft, sensors, helicopters for naval applications, communications and weapon systems, on the surface and underwater. OCEAN2020 will see unmanned platforms of different type (fixed wing, rotary wing, surface and underwater) integrated with naval units' command and control centres, allowing for data exchange via satellite, with command and control centres on land. The joint and cooperative use of both manned and unmanned vehicles will also be demonstrated as part of the project. Leonardo would like to thank the Italian Navy which, as a key OCEAN2020 partner, has and will continue to make important contributions to the project. This includes the development of operational scenarios and making available naval assets and helicopters, which will take part in demonstrations. In addition to complex simulation work, OCEAN2020 project will involve two live demonstrations of maritime surveillance and interdiction operations, conducted by European fleets using unmanned aircraft, surface vessels and underwater systems. The first demo, scheduled to take place in the Mediterranean Sea in 2019, will be coordinated by the Italian Navy and will see Leonardo's ‘Hero' and ‘Solo' unmanned helicopters operate from Italian naval units alongside other European partners. The second demonstration, which will take place in 2020 in the Baltic Sea, will be coordinated by the Swedish Navy. The data collected by various systems during these two demos will be processed and sent to a prototype European command and control centre in Brussels. http://www.leonardocompany.com/en/-/ocean-2020

BRUSSELS (AP) — The United States is warning the European Union not to use its deepened military cooperation as an excuse to protect Europe's defense industry, saying such practices could undermine NATO. The U.S. ambassador to NATO, Kay Bailey Hutchison, said Tuesday that "we do not want this (cooperation) to be a protectionist vehicle for EU." She said Washington is "going to watch carefully because if that becomes the case then it could splinter the strong security alliance that we have." EU leaders — 22 of whose nations are also members of the U.S.-led NATO alliance — agreed last year to jointly develop or purchase military equipment like drones. Washington is concerned the bidding process might exclude U.S. firms. http://www.businessinsider.com/ap-us-warns-eu-against-defense-market-protectionism-2018-2

Richmond, BC - MDA, a Maxar Technologies company (formerly MacDonald, Dettwiler and Associates Ltd.), (NYSE: MAXR; TSX: MAXR), announced today that it has signed a contract with an unnamed international customer. MDA will provide turnkey, unmanned aircraft system (UAS) surveillance services. The contract includes options for additional years. MDA's UAS service will use a fleet of Schiebel CAMCOPTER® S-100 rotary-wing unmanned aircraft to provide surveillance information. MDA will be responsible for all aspects of the service including acquisition of all the systems and required infrastructure, training, airworthiness, logistics, supply chain, maintenance and all flight operations. The S-100 aircraft is a vertical takeoff and landing UAS, which does not require a prepared area or supporting launch or recovery equipment. It operates day and night and is a very capable platform for a wide range of different surveillance payloads to meet a broad set of mission requirements. MDA's UAS service will equip the S-100 fleet with L3 WESCAM MX-10 EO/IR payloads. The MX-10 is a high-performance, multi-sensor multi-spectral imaging system for tactical surveillance missions. It carries multiple sensors including both high-definition day modes and night infrared modes. The MX-10 is currently operational for twelve nations worldwide on the S-100 including Naval Shipborne customers leading to a low risk, proven solution. Mike Greenley, group president of MDA said, “MDA is a global leader and trusted partner in UAS surveillance services in challenging, complex and hostile environments. This program is a key plank in our growth strategy, offering UAS services in many different environments, and for a diverse set of missions.” About MDA MDA is an internationally recognized leader in space robotics, satellite antennas and subsystems, surveillance and intelligence systems, defence and maritime systems, and geospatial radar imagery. MDA's extensive space expertise and heritage translates into mission-critical defence and commercial applications that include multi-platform command, control and surveillance systems, aeronautical information systems, land administration systems and terrestrial robotics. MDA is also a leading supplier of actionable mission-critical information and insights derived from multiple data sources. Founded in 1969, MDA is recognized as one of Canada's most successful technology ventures with locations in Richmond, Ottawa, Brampton, Montreal and Halifax. MDA is Maxar Technologies company (TSX: MAXR; NYSE: MAXR). For more information, visit www.mdacorporation.com. About Maxar Corporate Maxar Technologies (formerly MacDonald, Dettwiler and Associates) is a leading global provider of advanced space technology solutions for commercial and government markets including satellites, Earth imagery, geospatial data and analytics. As a trusted partner, Maxar Technologies provides unmatched end-to-end advanced systems capabilities and integrated solutions expertise to help our customers anticipate and address their most complex mission critical challenges with confidence. With more than 6,500 employees in over 21 locations, the Maxar Technologies portfolio of commercial space brands includes: SSL, MDA, DigitalGlobe, and Radiant Solutions. Every day millions of people rely on Maxar Technologies to communicate, share information and data, and deliver insights that empower a better world. Maxar trades on the Toronto Stock Exchange and New York Stock Exchange as MAXR. For more information visit www.maxar.com. About Schiebel Founded in 1951, the Vienna-based Schiebel Group focuses on the development, testing and production of state-of-the-art mine detection equipment and the revolutionary CAMCOPTER® S-100 Unmanned Air System (UAS). Schiebel has built an international reputation for producing quality defense and humanitarian products, which are backed by exceptional after-sales service and support. Since 2010, Schiebel's composite division supplies high-tech customers with products of supreme carbon fiber technology – all quality-controlled to meet ISO 9001 standards. With headquarters in Vienna (Austria), Schiebel now maintains production facilities in Wiener Neustadt (Austria) and Abu Dhabi (UAE), as well as offices in Washington DC (USA) and Phnom Penh (Cambodia). Forward-Looking Statements This release contains forward-looking statements and information, which reflect the current view of Maxar Technologies Ltd. (the “Company”) with respect to future events and financial performance. The forward-looking statements in this regard include statements regarding the award of a contract with an unnamed customer. Any such forward-looking statements are based on the Company's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. The factors and assumptions underlying the forward-looking statements in this release include relevant contracts not being terminated. Any such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from current expectations. The Company cautions readers that should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. The risks that could cause actual results to differ from current expectations include, but are not necessarily limited to: changes in certain priorities, mandates, funding levels, contracts and regulations; satellite failure; failure of third parties and subcontractors; and failure to anticipate changes in technology, technical standards and offerings or compliance with the requisite standards, or failure to maintain technological advances and offer new products to retain customers and market position. For additional information with respect to certain of these risks or factors, plus additional risks or factors, reference should be made to the Company's continuous disclosure materials filed from time to time with Canadian and U.S. securities regulatory authorities, which are available online under the Company's SEDAR profile at www.sedar.com, under the Company's EDGAR profile at www.sec.gov, or on the Company's website at www.maxar.com. For more information, please contact: Wendy Keyzer MDA Media Contact MDA Telephone: 1-604-231-2743 E-mail: wendy@mdacorporation.com Marissa Poratto MDA Investor Relations Telephone: 1-604-331-2044 E-mail: mporatto@maxar.com https://mdacorporation.com/news/pr/pr2018020901.html

Senior defence official says Canada will take used Aussie FA-18s as they become available It will be 2022 before the Royal Canadian Air Force receives all of the used Australian fighter jets the Liberal government intends to purchase, says senior defence official. The plan was rolled out with much fanfare at the end of last year because the air force has faced — in the words of Defence Minister Harjit Sajjan — an "urgent capability gap" and is not able to meet its NATO and Norad commitments at the same time. Pat Finn, who is in charge of the materiale branch of National Defence, told CBC News in a recent interview a final agreement is still months away. He is confident, however, everything will come together. Delivery is "staggered over three years," Finn said. The Trudeau government announced in December it would buy 18 used Australian "classic" FA-18s as an interim measure to bolster the air force until the entire Canadian fleet of CF-18s is replaced, beginning in the mid-2020s. It had wanted to buy brand new Boeing Super Hornets, the newer, bigger, more advanced version of the FA-18 and CF-18. The plan was scuttled when the manufacturer, Chicago-based Boeing, filed a trade complaint against Canadian aerospace giant Bombardier. No price tag for the Australian deal was released at the time of the formal announcement, which was made by Sajjan and Public Works Minister Carla Qualtrough. Ongoing discussions Finn said those details are still being worked out. The Liberal government said in December the first used fighters, which were purchased by Australia around the same Canada bought its CF-18s, would arrive by January 2019. Finn said the delivery schedule is being finalized, but he anticipates receiving the first two warplanes by the summer of that year. Another one would follow by the end of the year, but much depends on the Royal Australian Air Force and how quickly it retires the fighters and the age of what's being offered. "They, of course, release aircraft as they get aircraft," Finn said. "We do not necessarily want the oldest aircraft, so we would like to have an ongoing discussion." He said there is some flexibility and if "summer '19 turns into" something a few months later because they can get a better jet, then it's something that can be negotiated. The Australian government is in the process of seeking permission to sell the planes because they were originally manufactured in the U.S. Once the Australian warplanes arrive in Canada, they will need to be given life-extension modifications that will bring them up to the standard of the CF-18s, which have been modified to continuing flying until 2025. It stands in stark contrast to the urgency with which the Liberals initially painted the shortage of fighter aircraft. "In 2025, the CF-18s will not be able to fly, and it is important that we move very quickly in filling this capability gap." said Sajjan in June 2016. Finn said the air force is managing the capability gap by making more CF-18s available for operations on a daily basis. "We're basically working right now to increase the availability of our current airplanes," he said. Experts say that would mean pouring more than expected into the maintenance budget in order to keep fighters on the flight line. Urgent purchase? One defence analyst said the government has a strange definition of urgent. "Nothing about the handling of this file lines up with the identification of it as an urgent need, either the interim or the permanent purchase," said Dave Perry, an expert in procurement at the Canadian Global Affairs Institute. He said he believes it will present a political headache for the Liberals come the next election. "The fact that this government may, at best, have a couple of second-hand aircraft before the next election after having identified an urgent need to acquire new fighter aircraft is just incredible," he said. When the Australian deal was announced, the government also laid out a timeline for the full replacement of the CF-18s, which were purchased in the 1980s, but extensively modified and upgraded in the early 2000s. Public Works recently held a consultation day with defence contractors, but Perry says no one seems to understand why it will take until the early 2020s to launch the competition. When the former Conservative government was struggling over whether to buy the F-35 stealth fighter, it conducted extensive research on the alternatives and possible types of warplanes Canada would need. That research, which conceivable could move things along faster, was largely discarded by the Liberals and is gathering dust on a shelf, Perry says. http://www.cbc.ca/news/politics/aussie-fighter-jets-1.4530875