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  7 avril 2020 | Local, Aérospatial

  Teal Group publications on the Civil and Defense Aviation Markets

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  24 septembre 2018 | Local, Aérospatial

  U.S. approves Canada's purchase of used Australian fighter jets

  DAVID PUGLIESE, OTTAWA CITIZEN The sign-off from the Americans for the 25-jet purchase was needed because the aircraft were built in the U.S. with U.S. technology. The U.S. government has approved Canada's purchase of used F-18 fighter jets from Australia, paving the way for the deal to be completed by the end of the year. The sign-off from the Americans was needed because the aircraft were built in the U.S. with U.S. technology. Dan Le Bouthillier of the Department of National Defence said Friday negotiations with Australia over the sale of the 25 used fighter jets is on-going. “Should all negotiations and approvals move forward as planned, aircraft would start arriving in Canada in 2019, and the project remains on track to achieve this milestone,” he said. “The delivery plan, including mode of delivery, will be finalized once negotiations are complete and the aircraft being purchased are selected.” In June, Postmedia reported that Canada had boosted the number of used Australian fighter jets it is purchasing to 25 from 18 but that the deal still hinged on approval from the U.S. government. Although U.S.-Canada relations have hit a slump, with President Donald Trump vowing to punish Canadians because of ongoing trade disputes, DND officials hope the situation won't affect approvals for the fighter jet sale to proceed. The Liberal government originally announced it would buy 18 used Australian F-18 jets to augment the Royal Canadian Air Force's CF-18s until new aircraft can be purchased in the coming years. But it has added seven more used Australian F-18 aircraft to the deal. Those extra aircraft will be stripped down for parts or used for testing. The exact cost of purchasing the 25 aircraft, along with weapons and other equipment, is not yet known, Procurement Minister Carla Qualtrough pointed out earlier this year. The Liberal government has set aside up to $500 million for the project. Earlier this year, Pat Finn, the Department of National Defence's assistant deputy minister of materiel, said the government has received what's called a letter of cost proposal on the impending sale. “The Australians have now gone to the U.S. State Department for the transfer under ITAR,” Finn explained to MPs on the Commons defence committee at the time. Finn indicated the DND wants to have the deal in place by the end of this year. “The idea of firming this up in the fall of 2018 was for the start of delivery of the two first aircraft to be next summer, and then quickly beyond it,” he added. The federal government has confirmed the Australian aircraft will be operating alongside the RCAF's other CF-18s at Bagotville, Que., and Cold Lake, Alta. “The aircraft will be employed at 3 Wing Bagotville and 4 Wing Cold Lake,” a government official noted. “DND is currently reviewing infrastructure requirements to accommodate the additional aircraft. Any modifications are expected to be minimal as the supplemental jets are of similar age and design to the CF-18.” The Liberal government had planned to buy 18 new Super Hornet fighter jets from U.S. aerospace giant Boeing. But last year 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 Trump administration brought in 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 Super Hornets. That project would have cost more than US$5 billion. https://theprovince.com/news/politics/u-s-approves-canadas-purchase-of-used-australia-fighter-jets-deal-to-be-completed-by-end-of-year/wcm/f39380f7-98e9-45a2-8a7b-525c3eda6901

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  25 juin 2019 | Local, Naval

  Cost of 15 new Canadian warships rises to $70 billion: PBO report

  By Christian Paas-Lang Canada's 15 new warships will cost almost $70 billion over the next quarter-century, according to Parliament's budget watchdog, and the cost could change further depending on the final design of the ships and when they actually get built. The estimate, released in a report by the parliamentary budget office Friday, is up substantially from a Canadian government estimate in 2017 that pegged the price of the project at between $56 billion and $60 billion. The 2017 estimate was itself a revision of the project's original $26-billion price tag. Also in 2017, the PBO estimated the total cost of the ships to be $61.8 billion, but its report released Friday updates that to reflect the design of the ships — frigates known as “Type 26” — which wasn't known at the time. It also accounts for delays in the project. The Canadian government will now pay out $69.8 billion over 26 years, the PBO estimates. In a statement released shortly after the PBO report, the Department of National Defence said it remained “confident” in its 2017 estimate, and that the “vast majority” of the difference between the estimates came from the PBO's choice to include taxes in its projections. Taking away taxes brings the two estimates to within 10 per cent of each other, the DND said. But the department conceded that any small difference means hundreds of millions of dollars in costs for taxpayers. The PBO report says the difference in the estimates is due to a later start date for construction and a heavier ship design. The report assumes ships will start being built by the 2023-2024 fiscal year, three years later than its 2017 projection. As the timeline extends into the future, costs increase due to inflation. The PBO originally projected a displacement, or weight, of 5,400 tonnes for each ship but the Type 26 design is a heftier 6,790 tonnes per ship, an increase of more than 25 per cent. The report also includes an analysis of what effect further significant delays would have on the project. For a one-year delay, the PBO estimates, an extra $2.2 billion will be added to the project cost, and a two-year delay would cost the government $4.5 billion. In an interview Friday, the top bureaucrat in charge of procurement at the DND expressed skepticism that the heavier ships will result in as much increased cost as the PBO suggests, but he did say the potential for delays was something he is “watching more carefully.” “The labour piece is always where uncertainty can remain,” said Pat Finn, the department's associate deputy minister for material, noting labour can make up around 40 per cent of the cost of a ship. Finn said the DND is in the “same place” as the PBO on the cost of “slippage” — delays in the project — but that he is confident the structure of the National Shipbuilding Strategy will mean the project could benefit from a skilled workforce and ongoing expertise. The purchase of additional Arctic patrol ships, announced last month, means there will not be a lapse in efficiency at Irving's Halifax shipyard, which is building the warships, Finn said. He set a goal for start of construction earlier than the PBO assumes in its report. “We would say between mid-2022 and mid-2023, we're in-contract and cutting steel,” Finn said. Potential delays would certainly increase costs, and it would be “absolutely no shock if there was additional delays,” said Dave Perry, a procurement expert with the Canadian Global Affairs Institute. “To this point in time, the government has not been able to meet any of the timelines that have been put forward publicly,” he added. Still, the closer you get to construction, Perry said, the less uncertainty there should be about costs and the potential for further delay. The last thing that might change the final cost of the ships is the specifics of what components are chosen to fill out the design — which radar equipment, for example, Perry said. The DND is deciding on those components as it reconciles the requirements of the ships with costs. “You could potentially get a few-percentage-point swing” in price in either direction based on those choices, said Perry. “But if you're talking about several tens of billions of dollars, a few-percentage-points swing is real money.” https://globalnews.ca/news/5418997/canada-warships-cost/