1 mars 2019 | Local, Aérospatial
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.
5 décembre 2024 | Local, Terrestre
First of all, good afternoon friends. May I also extend a warm welcome to all of you who have travelled here to Halifax.
8 mai 2019 | Local, Aérospatial
David Pugliese, Ottawa Citizen The defence and aerospace industry is abuzz about the letters the U.S. government sent to Canada over the upcoming competition to acquire a new fleet of fighter jets to replace the RCAF's CF-18s. In short, the Trump administration has given an ultimatum to Prime Minister Justin Trudeau and his government. If Canada insists that industrial and technological benefits must come from the outlay of $19 billion for a new fighter jet fleet then Lockheed Martin's F-35 stealth jet is out of the race. Full stop. The U.S. argument is that because Canada is a partner in the F-35 program it cannot ask Lockheed Martin to meet specific industrial benefits for a Canadian competition if the F-35 is selected. Under the F-35 agreement, partner nations are prohibited from imposing requirements for industrial benefits as the work is determined on the best value basis. In other words, Canadian firms compete and if they are good enough they get work on the F-35 program. Over the last 12 years, Canadian firms have earned $1.3 billion U.S. for their work on building F-35 parts. The U.S. had boldly stated it cannot offer the F-35 for the Canadian competition if there are requirements to meet for set industrial benefits. But that ultimatum could seriously backfire on the Trump administration. Trudeau and the Liberal government has never been keen on the F-35 (Trudeau campaigned against purchasing the jet). There have also been a number of negative headlines over the last year outlining the increasing maintenance costs for the F-35s, not a good selling point for the jet. The U.S. ultimatum may have just given Trudeau a way out of his F-35 dilemma, particularly if the prime minister can say that it was it was the Americans themselves who decided not to enter the F-35 in the Canadian competition. Trudeau will also be able to point to the other firms ready and keen to chase the $19 billion contract. Airbus, a major player in Canada's aerospace industry, says it is open to producing its Eurofighter Typhoon in Canada with the corresponding jobs that will create. Boeing, which has a significant presence in Canada, will offer the Super Hornet. Saab has also hinted about building its Gripen fighter in Canada if it were to receive the jet contract. To be sure, if the U.S. withdraws the F-35 from the competition, retired Canadian military officers and the defence analysts working for think-tanks closely aligned with the Department of National Defence be featured in news reports about how the Royal Canadian Air Force will be severely hindered without the F-35. Some Canadian firms involved in the F-35 program may complain publicly about lost work on the F-35 program but companies tend not criticize governments for fear they won't receive federal contracts or funding in the future. There will be talk about how U.S.-Canada defence relations will be hurt but then critics will counter that U.S. President Donald Trump used national security provisions to hammer Canada in ongoing trade disputes. And let's face it. Defence issues are rarely a factor in federal elections or in domestic politics. The Trump administration, which is not the most popular among Canadians, may have just given Trudeau a political gift. https://nationalpost.com/news/national/defence-watch/trump-may-have-given-trudeau-the-excuse-he-needs-to-ditch-the-f-35/wcm/08b1313f-81eb-4adc-9ebf-b54ffc19c2c7
14 décembre 2022 | Local, Aérospatial
The proposal to buy between eight and 12 P-8 Poseidon aircraft from Boeing in the U.S. is being examined, according to industry and defence sources. But whether it moves forward to cabinet still has to be decided.