Canadian aerospace companies are pushing back against the idea that Bombardier securing a contract to replace aging military patrol planes would be the best solution for the sector, saying a deal between Ottawa and leader Boeing could prove at least as lucrative.
Bombardier has asked the federal government to allow open competition for the successor to the Royal Canadian Air Force’s 14 half-century-old CP-140 Aurora jets.
The Montreal business jet maker has argued that its surveillance planes, when they begin rolling off assembly lines early next decade, will offer a cheaper, higher-tech product that will be built in Canada.
So far, the government has not clarified whether it will opt for a sole-source contract or an open tender. But its procurement department said Boeing’s P-8A Poseidon was “the only aircraft currently available that meets all ACMM (Canadian Multi-Mission Aircraft) operational requirements,” including anti-submarine warfare. -navy, intelligence gathering and surveillance.
PHOTO JON NAZCA, REUTERS ARCHIVES
A Boeing P-8 Poseidon of the United States Air Force
Martin Brassard, CEO of Quebec landing gear manufacturer Héroux-Devtek, points to Boeing’s enormous production capacity, which would generate business for parts suppliers and maintenance and repair companies across Canada. Eighty-one Poseidon suppliers are already established in our country.
“I am not criticizing Bombardier’s solution, because I am not familiar with it. What I do know is that they don’t have a solution ready. And it is ready,” explained Mr. Brassard, adding that obtaining a contract could open other doors for Canadian companies at Boeing.
“I think with all the programs the U.S. government is doing, it’s thousands of planes. »
Mr. Brassard stressed the importance of a rapid and reliable acquisition process, recalling past delays in the selection of military aircraft – for the CF-18 Hornet in the 1970s and, more recently, for the F-35 stealth fighter jet, whose competition process lasted more than seven years before it was chosen in 2022.
“I don’t want history to repeat itself with the CP-140, with all the political debates that Bombardier is currently having. It should not be a political decision, but a decision [du ministère de la Défense] “, he said.
“Unjustified emergency”
The premiers of Ontario, Doug Ford, and Quebec, François Legault, echoed Bombardier’s calls this month for an open call for tenders, renewing their request from the summer to “put everyone on an equal footing” by launching a call for tenders.
Company spokesman Mark Masluch warned of the “unwarranted urgency” of finding replacements for planes that don’t have a clear retirement date, calling the idea “disingenuous.”
John Gradek, who teaches aviation management at McGill University, agrees that the Auroras “are not going to crash in mid-flight,” but he believes that weather is still an element to take into account. He adds that the Poseidons should be delivered as early as 2026, around five years before Bombardier’s aircraft.
[Les avions] will start to be very expensive to maintain, and sometimes even impossible to maintain because the parts are now no longer available.
John Gradek, teacher at McGill University
“The question is what form it will have and whether it will be able to accomplish the missions,” added Professor Gradek. Is this the technology we need? »
Bombardier said a deal would add $2.8 billion to the country’s gross domestic product, citing a PwC report commissioned by the company. The potential multibillion-dollar contract would provide 22,650 direct jobs — nearly 11,000 in Ontario, 6,550 in Quebec and nearly 4,200 in Atlantic Canada — according to the report.
A study commissioned by Boeing and conducted by Doyletech, an Ottawa-based company, found that a contract with Boeing would generate nearly $10 billion in domestic economic activity over a decade and directly support more than 230 Canadian businesses.
Boeing advantage?
Tracy Medve, CEO of KF Aerospace, which repairs and overhauls aircraft in British Columbia and Ontario, has worked on Boeing’s Poseidons for decades.
“KF and other Canadian companies will benefit from it,” she assured, specifying that the plane could be delivered as early as 2026.
I personally think this is the right choice for Canada because it is a proven Boeing platform and because the P-8 has seen service in many other areas.
Tracy Medve, CEO of KF Aerospace
Having Canada’s allies use the P-8 Poseidon could make it easier for the Canadian military and domestic suppliers already familiar with the product.
“If your plane is down, you want to be able to go to your allies and say, ‘By the way, do you have this part?’ », Explained Lorenzo Marandola, president of the Quebec company M1 Composites Technology, which specializes in aircraft maintenance.
“This is extremely important in terms of maintenance and mission operability. »
The other members of the Five Eyes intelligence alliance – the US, UK, Australia and New Zealand – as well as India, Germany, Norway and South Korea all use the P-8 or plan to do so.
Problems on the horizon?
In recent years, Boeing has faced production and quality problems on its commercial planes, particularly the 737 Max, 787 Dreamliner and 777. Questions remain about its ability to make the Poseidons on time.
For his part, Peter Wheatley, vice-president of StandardAero, which maintains and repairs jet engines, judges that the risk is “incredibly low”. “Opting for the P-8 would be a very good choice for Canadian industry and companies like mine. »
For the company founded in Winnipeg in 1937, a 10-year contract would fill its coffers with 600 million, estimates the manager.
The company, which also has facilities in Prince Edward Island and Langley, British Columbia, has already worked on 111 US Navy Poseidons as well as 15 US Army P-8 aircraft. Australian air. “We would love to have the chance to do those in Canada, too. »