OTTAWA, Jan 9 (Reuters) – Canada finalized a deal to purchase 88 F-35 fighter jets from U.S. protection firm Lockheed Martin Corp (LMT.N) on Monday in a C$19 billion ($14.2 billion) venture to switch its getting older fleet of fighter plane.
Canada expects the primary F-35s to be delivered in 2026 and for the fleet to be absolutely operational between 2032 and 2034, Protection Minister Anita Anand advised a information convention.
The F-35 “is essentially the most superior fighter in the marketplace and it’s the proper plane for our nation,” Anand advised reporters, including the acquisition and upkeep might contribute over C$425 million yearly to the Canadian financial system and shut to three,300 jobs yearly. Anand mentioned it was the most important funding within the Royal Canadian Air Power in 30 years.
The F-35 fighter announcement coincides with Prime Minister Justin Trudeau’s journey to Mexico on Monday for the North American leaders’ summit the place he’ll meet U.S. President Joe Biden.
Ottawa has been attempting for greater than a decade to switch its fleet of Boeing Co (BA.N) CF-18 fighters, a few of that are greater than 40 years outdated. A change in governments, rule adjustments for the plane procurement course of, in addition to challenges from the COVID-19 pandemic triggered delays.
The Trudeau authorities, which was initially towards shopping for F-35s because of prices, held a aggressive course of to pick the planes the place Lockheed beat out Sweden’s SAAB (SAABb.ST) and Boeing.
“It is a very vital piece for the Canadian army to have – a fighter airplane made within the twenty first century,” mentioned Stephen Saideman, a professor of worldwide relations at Ottawa’s Carleton College and an protection knowledgeable.
The “lengthy, very politicized wrestle” to buy the jets doesn’t bode nicely for future procurement because the nation seeks to scale up its arctic defenses, and as North American Treaty Group allies push Canada to extend its army spending, Saideman mentioned.
The venture consists of price of infrastructure set-up, weapons and different associated bills, along with the value of planes.
Nevertheless, officers mentioned the full price over the lifecycle of the airplane – with new jets now estimated to final till 2070 – is estimated to be C$70 billion.
Canada is a part of a consortium that helped develop Lockheed Martin’s F-35 and Ottawa can pay the identical quantity for the plane as the opposite individuals, together with the USA.
($1 = 1.3404 Canadian {dollars})
Reporting by Ismail Shakil and Steve Scherer in Ottawa; Enhancing by Grant McCool and Josie Kao
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