Defense & Military
Lockheed Martin Details F-35 Economic Impact in Canada Amid Review
Lockheed Martin outlines $15.5B CAD economic value and 150,000 jobs supported by the F-35 program in Canada amid a federal procurement review.
This article is based on an official press release from Lockheed Martin.
Lockheed Martin Defends F-35 Economic Impact Amidst Federal Review
On January 15, 2026, Lockheed Martin released a comprehensive feature article titled “Powering Canada’s Aerospace Future: The F-35 Industrial Impact.” The release comes at a pivotal moment for Canadian defense policy, arriving shortly after Prime Minister Mark Carney ordered a formal review of the nation’s F-35 procurement program.
According to the company’s statement, the F-35 program is positioned not merely as a defense acquisition but as a critical driver of the Canadian economy. Lockheed Martin argues that the program is deeply integrated into the national supply chain, citing nearly three decades of industrial partnership that began with Canada’s initial investment in the Joint Strike Fighter (JSF) program in 1997.
The release appears to serve as a direct industry counter-narrative to renewed competition from Swedish manufacturer Saab, which has recently pitched its Gripen E fighter as a “made-in-Canada” alternative with domestic manufacturing guarantees.
Projected Economic Value and Job Creation
In its report, Lockheed Martin outlines significant financial benefits tied to the continued procurement of the F-35 Lightning II. The company projects that the program will generate over $15.5 billion CAD in economic value for Canada, covering production and sustainment activities through the year 2058.
A central pillar of their argument is employment. The manufacturers states:
The program supports 150,000 jobs over the lifetime of the program.
Lockheed Martin, “Powering Canada’s Aerospace Future”
It is important to note that industry figures regarding long-term job creation often refer to cumulative person-years rather than simultaneous permanent positions. However, the scale of the claim highlights the manufacturer’s intent to showcase the F-35 as a major industrial engine.
Supply Chain Integration
Lockheed Martin emphasizes that Canadian industry is already executing high-value work for the global fleet, not just for the jets Canada intends to buy. According to the release, $3.3 billion USD in contracts have already been awarded to Canadian companies. Furthermore, the company notes that approximately $3.2 million CAD worth of Canadian-manufactured components are currently installed on every F-35 aircraft flying worldwide.
Key Canadian Industry Partners
The “Industrial Impact” report highlights the involvement of over 110 Canadian companies that have contributed to the supply-chain. These partnerships span across the country, involving complex manufacturing and high-tech avionics.
Key players identified in the supply chain include:
- Magellan Aerospace (Winnipeg, MB / Toronto, ON): Responsible for manufacturing horizontal tail assemblies and engine lift system parts.
- Héroux-Devtek (Montreal, QC / Kitchener, ON): Produces landing gear uplock assemblies.
- Avcorp Industries (Delta, BC): The sole-source supplier for the F-35C outboard wing assembly.
- CMC Electronics (Montreal, QC): Supplies advanced avionics, including optical transceivers.
- L3Harris MAS (Mirabel, QC): Selected as a strategic partner for air vehicle depot maintenance.
Lockheed Martin’s data suggests that disrupting the procurement could impact these existing contracts, as Canadian participation in the global supply chain is often contingent on partner status within the JSF program.
Strategic Context: The Carney Review
This industry push coincides with a shifting political landscape. Following his election in 2025, Prime Minister Mark Carney initiated a review of the F-35 deal, originally finalized in 2023 for 88 jets at a cost of $19 billion CAD. The review was prompted by changing trade dynamics with the United States and a desire to evaluate options that might offer stronger domestic industrial guarantees.
Concurrently, Saab has intensified its lobbying efforts, proposing a production hub in Canada for its Gripen E fighter. Saab claims their proposal would create 12,600 jobs linked to a specific purchase of 72 Gripens and 6 GlobalEye surveillance aircraft.
AirPro News Analysis
The Battle Between Sovereignty and Integration
The release of this report by Lockheed Martin underscores the fundamental tension in Canada’s defense procurement strategy: the choice between sovereign manufacturing and global integration.
Saab’s pitch relies on the concept of “sovereignty”, the ability to build and maintain aircraft entirely within Canadian borders, independent of foreign supply chains. In contrast, Lockheed Martin is leveraging the argument of “integration.” By highlighting that Canadian parts are on all 1,270+ F-35s delivered globally, they are arguing that Canada’s aerospace sector is better served by being a small but essential cog in a massive allied machine rather than the sole builder of a smaller fleet.
The risk for the Carney government lies in the “sunk cost” of industrial participation. If Canada were to withdraw from the F-35 program, the 110+ companies currently bidding on U.S. and global contracts could lose their eligibility, potentially endangering the high-tech manufacturing base that has developed over the last 30 years.
Frequently Asked Questions
- When did Canada join the F-35 program?
- Canada joined the Joint Strike Fighter (JSF) program as a partner in 1997, with an initial investment of $10 million USD.
- How many jobs does Lockheed Martin claim the program supports?
- Lockheed Martin claims the program supports 150,000 jobs over its lifetime (through 2058). This figure is generally understood in the industry to represent cumulative person-years.
- What is the status of the F-35 procurement?
- While an agreement to purchase 88 jets was finalized in 2023, the Carney government ordered a review of the program in late 2025/early 2026.
Sources
Photo Credit: Lockheed Martin
Defense & Military
Embraer Signs Long-Term KC-390 Support Deal With Brazil
Embraer and the Brazilian Air Force signed a lifecycle support agreement for the KC-390 Millennium fleet on June 18, 2026.
Embraer and the Brazilian Air Force signed a comprehensive long-term logistics support agreement on June 18, 2026, designed to maximize the operational availability and mission readiness of the military’s KC-390 Millennium fleet.
Announced in a press release from the manufacturer’s São José dos Campos headquarters, the contract provides full lifecycle support for current and future KC-390 aircraft operated by the Brazilian Air Force (FAB). The agreement encompasses maintenance, logistical sustainment, component repair and overhaul, spare parts supply, engineering services, and technical publications. The financial value of the contract was not disclosed.
Enhancing fleet readiness for the launch customer
The Brazilian Air Force serves as the launch customer for the KC-390 program. According to Air Data News, the FAB has a total order book of 19 aircraft. The first production unit was delivered to the military branch on September 4, 2019.
Lieutenant-Brigadier Valter Malta, General Support Commander for the FAB, stated in the release that the agreement reinforces the military’s commitment to fleet availability and operational efficiency.
“Through this contract, we will provide the maintenance and logistical sustainment required to support the KC-390 Millennium, which is a strategic asset for the country’s mobility, defense, and rapid response capabilities,” Malta said.
Carlos Naufel, President and CEO of Embraer Services & Support, noted the contract extends a decades-long relationship between the manufacturer and the FAB. Naufel stated the goal is to support the military’s ability to perform at the highest standards using world-class solutions.
Production ramp-up and international momentum
The support agreement coincides with a broader push by Embraer to increase production of the KC-390 Millennium to meet growing international demand. Breaking Defense reported that Embraer executives briefed reporters on June 10, 2026, outlining plans to build six aircraft in 2026 and reach an annual production rate of 10 aircraft by the end of the decade.
Marcio Monteiro, Chief Marketing Officer of Embraer’s defense division, told Breaking Defense that the company is in “ramping up mode” to meet current commitments and anticipate future orders. Embraer estimates a total addressable market of 450 aircraft for the KC-390 over the next two decades.
International interest in the platform has accelerated in recent months. Air Data News reported that Greece formally submitted a defense procurement package to its parliament in June 2026 for three KC-390s. Embraer is also preparing to deliver the first aircraft to the Czech Air Force in the coming weeks, with a second scheduled for 2027. Additional deliveries are slated for Uzbekistan and South Korea in 2026.
AirPro News analysis
Securing a comprehensive, long-term sustainment contract with the launch customer is a critical step for Embraer as it markets the KC-390 Millennium globally. Prospective international buyers closely monitor the operational availability and logistical support network of the home country’s fleet when evaluating military aircraft transport acquisitions. By formalizing this lifecycle support structure with the Brazilian Air-Forces, we view Embraer as establishing a baseline sustainment model that can be pitched to European and Asian air forces currently evaluating alternatives to legacy tactical airlifters.
Sources: Embraer
Photo Credit: Embraer
Defense & Military
Shield AI Wins U.S. Air Force CCA Autonomy Contract
The U.S. Air Force awarded Shield AI a production contract to integrate Hivemind software into its Collaborative Combat Aircraft program.
On June 17, 2026, the U.S. Air-Forces awarded defense technology company Shield AI a production contract to integrate its Hivemind mission autonomy software into the Collaborative Combat Aircraft (CCA) program. The award advances the military branch’s strategy to decouple software development from airframe manufacturing, enabling rapid capability updates across multiple uncrewed platforms.
In a press release issued on June 17, 2026, Shield AI confirmed the contract will utilize the government-owned Autonomy Government Reference Architecture (A-GRA). This framework allows the Air Force to evaluate and integrate mission autonomy as a standalone capability, preserving vendor competition and reducing the integration risks traditionally associated with tied hardware and software procurement.
Advancing the Collaborative Combat Aircraft fleet
The CCA program is a core component of the Air Force’s Next-Generation Air Dominance (NGAD) family of systems. These uncrewed aircraft are designed to fly alongside fifth- and sixth-generation fighter jets, augmenting the crewed fleet with additional offensive strike and intelligence-gathering capabilities.
According to reporting by DefenseScoop, the Air Force plans to field a minimum of 150 CCA systems by the end of the decade. The Increment 1 airframe production Contracts were awarded to General Atomics Aeronautical Systems and Anduril Industries four months ahead of schedule.
Software-first approach to mission autonomy
Alongside the airframe awards, the Air Force issued mission autonomy Software production options to Shield AI, Anduril, and Collins Aerospace. The military branch has been integrating and testing mission autonomy packages on CCA prototypes since February 12, 2026.
“Mission autonomy is a foundational capability for future airpower. The Air Force’s approach enables faster innovation, rapid capability deployment, and greater operational advantage for the warfighter,” said Christian Gutierrez, Senior Vice President of Hivemind at Shield AI.
Col. Timothy Helfrich, Program Acquisition Executive for Fighters and Advanced Aircraft for the U.S. Air Force, described the program as the next evolution of air power. Speaking to DefenseScoop, he noted that the CCA initiative represents the military’s first instance of taking human-machine teaming into the aviation world to such an extent and driving it operationally.
Future milestones and vendor selection
The Air Force is expected to select a primary mission autonomy software provider for CCA Increment 1 in 2027. This decision will follow extensive evaluation of the software packages provided by the competing vendors.
The A-GRA architecture ensures that whichever software is selected can be integrated into the YFQ-42A built by General Atomics and the YFQ-44A built by Anduril without requiring structural modifications to the aircraft.
AirPro News analysis
We view the Air Force’s strict adherence to the Autonomy Government Reference Architecture as a fundamental shift in defense aviation procurement. By forcing a hard boundary between the physical aircraft and the cognitive software that flies it, the military is actively avoiding the vendor lock-in that has historically plagued major acquisition programs. The decision to award software production options to three distinct companies, including traditional defense contractors like Collins Aerospace alongside newer entrants like Shield AI and Anduril, indicates a deliberate strategy to maintain competitive pressure through the 2027 down-select. If successful, this decoupled procurement model could become the standard for future uncrewed aviation programs.
Sources: Shield AI
Photo Credit: Shield AI
Defense & Military
Daher Expands Rafale Aerostructure Role for Dassault Aviation
Daher takes on Rafale canards, vertical tail plane, and forward fuselage assembly as Dassault targets four aircraft per month by 2028-29.
Daher Group has expanded its manufacturing responsibilities within the Dassault Rafale fighter program, taking on the production of critical composite and metallic aerostructures to support Dassault Aviation as it accelerates aircraft output.
In a press release issued on June 16, 2026, during the Eurosatory defense and security show in Paris, Daher detailed its growing portfolio of flight safety-critical components for the multirole fighter. The strategic industrial transfer is designed to alleviate production bottlenecks as Dassault works through a backlog of more than 220 aircraft for French and export customers.
Strategic industrial transfers support production targets
Dassault Aviation is currently executing a significant production ramp-up. According to recent reporting by Aviation Week, the manufacturer plans to deliver 28 Rafale aircraft in 2026, an increase from 26 deliveries in 2025. The company ultimately targets a production rate of four aircraft per month by 2028 or 2029.
To facilitate this volume, Dassault transferred the manufacturing of the Rafale’s canards and vertical tail plane from its own facility in Biarritz, France, to Daher.
“Daher’s work on the Rafale demonstrates our ability to industrialize and assemble critical components in highly demanding environments, while supporting the program’s production ramp-up,” said Alain-Jory Barthe, CEO of Daher Industry. “Our adherence to delivery schedules and the quality of our production are recognized by Dassault Aviation, with whom we’ve built a long-term relationship of trust based on a shared industrial DNA as family-owned companies.”
Critical aerostructure manufacturing and assembly
Daher’s expanded work package encompasses both composite manufacturing and complex metallic assembly. The company confirmed that the thermoset composite canards have already passed their qualification milestones. The vertical tail plane is currently entering its final validation phase.
In addition to the flight control surfaces, Daher is responsible for assembling the C1-C7 forward fuselage section. Located immediately aft of the nose, this section incorporates the structural support for the aircraft’s in-flight refueling probe. The assembly process involves integrating approximately 800 elementary parts, which are primarily metallic and sheet metal components.
The Tier 1 supplier also produces equipped T34 panels and the radio access hatch specifically designed for the two-seat variant of the Rafale.
AirPro News analysis
We view Dassault’s delegation of major structural assemblies to Daher as a textbook supply chain optimization strategy for an original equipment manufacturer facing a steep production curve. By offloading the canards and vertical tail plane, Dassault frees up floor space and specialized labor at its Biarritz plant for other critical path items. Daher is well-positioned to absorb this work. With 14,500 employees globally and reported 2025 revenues of €1.9 billion, the company has the industrial scale required to meet defense-standard quality requirements while maintaining the strict delivery schedules necessary for Dassault to reach a rate of four aircraft per month.
Sources: Daher
Photo Credit: Daher
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