31 mai 2019 | Local, Aérospatial

Boeing surprised Canada changed rules of jet competition to allow Lockheed Martin bid

David Ljunggren

OTTAWA (Reuters) - Boeing Co is surprised Canada softened the rules of a competition for new fighters to allow Lockheed Martin Corp to submit a bid, but is still confident it has a chance, a top executive said on Wednesday.

Following a U.S. complaint, Ottawa this month said it planned to drop a clause stipulating that bidders in the multibillion dollar race to supply 88 jets must offer a legally binding guarantee to give Canadian businesses 100% of the value of the deal in economic benefits.

The original clause would have excluded Lockheed Martin's F-35 fighter, the plane the Canadian air force wants. The contract is worth between C$15 billion and C$19 billion ($11.1 billion to $14.1 billion).

“I was surprised by the recommended change ... why would you deviate from a policy that's been so successful to accommodate a competitor?” said Jim Barnes, the Boeing official in charge of trying to sell the company's F-18 Super Hornet jet to Canada.

The change in the rules around economic benefits was the latest wrinkle in a decade-long troubled-plagued effort to replace Canada's CF-18 jets, some of which are 40 years old.

The final list of requirements for the new fleet of jets is due to be issued in July.

“Right now we feel like we can put a very compelling offer on the table even with this change,” Barnes told reporters on the margins of a defense and security conference in Ottawa.

Innovation Minister Navdeep Bains - in overall charge of the benefits aspect of procurement - said in response to Barnes's comment that Ottawa would ensure the competition was fair.

Compelling bidders to offer watertight guarantees of economic benefits contradicts rules of the consortium that developed the F-35, a group to which Canada belongs.

Boeing is offering a binding commitment and Barnes said the firm would stress to Canadian officials the potential economic disadvantages of entertaining a non-binding bid.

An official from Sweden's Saab AB, another contender, told reporters that Canadians could lose out by ignoring contenders that had made firm investment commitments.

“I am concerned that the ability to respond to a non-binding environment may not necessarily give Canadians the best value at the end of the day,” said Patrick Palmer, head of sales and marketing for Saab Canada.

Airbus SE, the fourth firm in the race, declined to comment.

Reporting by David Ljunggren; Editing by Susan Thomas

https://www.reuters.com/article/us-canada-fighterjets/boeing-surprised-canada-changed-rules-of-jet-competition-to-allow-lockheed-martin-bid-idUSKCN1SZ2AA

Sur le même sujet

  • The Pros and Cons of Replacing Canada’s Aging Submarine Fleet

    22 juillet 2021 | Local, Naval

    The Pros and Cons of Replacing Canada’s Aging Submarine Fleet

    The Royal Canadian Navy is actively considering how to replace its aging submarine fleet in what promises to ...

  • DRAKKAR and Avianor partner to fuel growth of Quebec aerospace cluster

    15 mars 2019 | Local, Aérospatial

    DRAKKAR and Avianor partner to fuel growth of Quebec aerospace cluster

    DRAKKAR, a world-class company specialized in operational outsourcing within sectors including aerospace, and Avianor, a complete commercial aviation cabin integration specialist and MRO organization, have finalized a partnership agreement which will enable Avianor to accelerate its growth strategy. With the help of Ernst & Young Orenda Corporate Finance, Avianor strongly believes the strategic and Canadian-based company DRAKKAR is the best partner to secure the future of Avianor. Following this transaction, effective as of Feb. 28, 2019, the Avianor board of directors now consists of Earl Diamond, CEO of Avianor; Sylvain Savard, president and founder of Avianor; along with two new members from DRAKKAR, Denis Deschamps, president and CEO of Drakkar & Partners; and Benoit Hudon, president and CEO of the company's manufacturing business unit. Over the past 24 years, Avianor has become a leader in the aviation industry by distinguishing itself through innovative problem solving, maintaining a skilled workforce and a flexible corporate culture. Although Avianor will remain an independent operation, DRAKKAR will now provide Avianor with strategic, tactical, financial, operational, business development and training support to help the company accelerate and achieve its consolidation and growth plan while meeting customers' satisfaction. Part of this plan also includes the renovation of a new and additional facility with over 100,000 square feet of hangars and offices with airside access at Montreal-Mirabel International Airport (YMX). “This new partnership reinforces the global positioning of our business as a high-caliber outsourcing team with the ability to optimize operations while keeping in mind productivity, efficiency and quality,” said Deschamps and Hudon. “With over 25 years of experience and expertise in outsourcing, this is a major turning point for our manufacturing business unit as it opens the door to the convergence and deployment of its global service offer. “DRAKKAR Manufacturing fits perfectly with our vision of creating our own innovative manufacturing ecosystem in one of our leading sectors, working collaboratively with our employees, partners, customers and suppliers as well as our own infrastructure,” added Deschamps and Hudon. “For us, this association with DRAKKAR reflects our determination and willingness to meet the needs of our existing and future clients and shows our concrete commitment to perpetuate Avianor activities over the long term and secure hundreds of jobs here in Quebec at the Mirabel Airport,” said Savard and Diamond. “With a current workforce of over 2,500 people and a solid experience in operations management, DRAKKAR will help us achieve the operational efficiency required of a large enterprise while ensuring personalized service is provided to all our clients.” “It is a proud moment for Aéro Montreal to see these companies conclude a partnership agreement with the objective of uniting their forces and combining their complementary expertise to create a strong added value within the industry,” said Suzanne M. Benoit, president of Aéro Montreal. “In addition to fostering economic growth and job creation across Canada, this type of partnership contributes to an even stronger, more competitive and prosperous Quebec aerospace industry. “It is a common and shared priority to ensure the visibility and influence of the companies that make up our industrial cluster, and in order to do so, we must effectively offer the OEMs more integrated solutions.” https://www.skiesmag.com/press-releases/drakkar-and-avianor-partner-to-fuel-growth-of-quebec-aerospace-cluster

  • Magellan Awarded CDN $140 Million Contract Extension with Airbus

    7 novembre 2018 | Local, Aérospatial

    Magellan Awarded CDN $140 Million Contract Extension with Airbus

    Toronto, Ontario – 5 November 2018 -- Magellan Aerospace Corporation (“Magellan”) announced today, that they have secured a six year agreement with Airbus for a contract extension for the manufacture of A350 XWB centre wing box and keel beam detail parts. It is estimated that revenue generated from this work package will exceed CDN $140 million dollars over the term of the contract. The package consists of a number of large structural, machined components, and will be manufactured by Magellan in the United Kingdom and supplied to the Airbus assembly facility in Nantes, France. Mr Haydn Martin, Magellan's Vice President, New Business Development said, “This contract extension has been achieved through a combination of demonstrated operational excellence and market competitive pricing. As a strategic partner to the Airbus Group, Magellan continues to align our technology investments and manufacturing best practices to meet their current and future requirements. About Magellan Aerospace Corporation Magellan Aerospace Corporation is a global aerospace company that provides complex assemblies and systems solutions to aircraft and engine manufacturers, and defense and space agencies worldwide. Magellan designs and manufactures aeroengine and aerostructure assemblies and components for aerospace markets, advanced proprietary products for military and space markets, and provides engine and component repair and overhaul services worldwide. Magellan is a public company whose shares trade on the Toronto Stock Exchange (TSX: MAL), with operating units throughout North America, Europe, and India. Forward Looking Statements Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. When used herein, words such as "expect", "anticipate", "estimate", "may", "will", "should", "intend", "believe", and similar expressions, are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the Corporation in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Corporation believes are appropriate in the circumstances. Many factors could cause the Corporation's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including those described in the "Risk Factors" section of the Corporation's Annual Information Form (copies of which filings may be obtained at www.sedar.com). These factors should be considered carefully, and readers should not place undue reliance on the Corporation's forward-looking statements. The Corporation has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For information: Laura Podaima Director, Corporate Communications Magellan Aerospace Ph. 204 788 2831 laura.podaima@magellan.aero http://magellan.aero/investors/press-releases/

Toutes les nouvelles