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
GE Aerospace and Magellan Sign F414 MRO MOU for Canada
GE Aerospace and Magellan Aerospace signed an MOU at Farnborough to establish a Canadian F414 engine MRO center if Canada selects the Gripen E.
GE Aerospace and Magellan Aerospace Corporation signed a Memorandum of Understanding (MOU) on July 22, 2026, at the Farnborough International Airshow to establish a Canadian MRO center for the F414-GE-39E engine. The agreement is entirely contingent on the Government of Canada selecting the Saab JAS 39 Gripen E for its future fighter fleet.
Announced in a GE Aerospace press release, the proposed MRO work would take place at Magellan’s facility in Mississauga, Ontario. The partnership aims to position Magellan as Canada’s domestic center of excellence for F414 engine sustainment, guaranteeing sovereign support capabilities for the Royal Canadian Air Force (RCAF) if the Gripen E is acquired.
Industrial offsets and the Gripen E campaign
The MOU represents a calculated component of a broader industrial offset campaign by Saab AB and its suppliers to secure a portion of Canada’s fighter procurement contract. The Canadian government is currently reviewing its fighter jet strategy. While Ottawa previously committed to purchasing a fleet of 88 Lockheed Martin F-35A Lightning II Military-Aircraft, the government is evaluating a potential mixed fleet that could include domestically built Gripen E fighters.
To strengthen the Gripen’s bid, Saab has been securing agreements with Canadian aerospace firms to promise domestic job creation and technology transfer. This engine sustainment agreement follows a similar MOU signed on July 17, 2026, between Saab and Canadian aviation training firm CAE Inc. to cooperate on advanced fighter pilot Training.
Engine sustainment and domestic capabilities
The F414 engine family has accumulated more than 5 million flight hours globally. The new agreement builds on a 60-year working relationship between GE Aerospace and Magellan Aerospace Corporation.
Paul Ferraro, Vice President of Defense Engines & Services at GE Aerospace, stated that the agreement spans both military and commercial engines and will ensure the RCAF has in-country access to sustainment services to maintain F414 readiness.
Haydn Martin, Vice President of Business Development, Marketing, and Contracts at Magellan Aerospace Corporation, emphasized the operational benefits of the proposed partnership.
“Should the Saab JAS 39 Gripen E aircraft be selected, Magellan Aerospace will be ready to provide world-class engine maintenance, repair and overhaul services that enhance operational readiness for the Royal Canadian Air Force while maintaining highly skilled Canadian jobs, developing advanced technical expertise, and strengthening Canada’s long-term defence industrial capacity,” Martin said.
AirPro News analysis
We view this MOU as a clear signal that the competition for Canada’s fighter fleet remains highly active despite the initial F-35A selection. By lining up domestic heavyweights like Magellan and CAE, Saab is directly addressing Ottawa’s stringent Industrial and Technological Benefits (ITB) policy requirements. If the Government of Canada opts for a mixed fleet, establishing sovereign MRO capabilities for the F414 engine will be a critical factor in mitigating supply chain risks and ensuring RCAF operational independence. Until a formal procurement decision is finalized, these agreements remain strategic positioning rather than guaranteed Contracts.
Sources: GE Aerospace
Photo Credit: GE Aerospace
Defense & Military
CBP AMO Orders 10 Airbus H125 Helicopters for Fleet Expansion
CBP Air and Marine Operations contracts for 10 Airbus H125 helicopters, expanding a 30-year fleet of over 100 rotary-wing aircraft.
U.S. Customs and Border Protection Air and Marine Operations (CBP AMO) has finalized a contract to acquire 10 additional Airbus H125 helicopters, expanding a fleet modernization effort that relies heavily on the single-engine platform for border security and law enforcement missions.
In a press release issued on July 7, 2026, Airbus confirmed the agreement, which reinforces a three-decade relationship between the federal agency and the aerospace manufacturer. The new helicopters will be assembled at the Airbus Helicopters production facility in Columbus, Mississippi.
Expanding the airborne law enforcement fleet
The latest acquisition builds upon a previous order placed in August 2020, when CBP AMO contracted for 16 H125 helicopters to upgrade its aging rotary-wing assets. The agency currently operates a total fleet of more than 240 aircraft, which includes over 100 helicopters from the Airbus H120 and H125 families delivered over the past 30 years.
The H125, formerly known as the Eurocopter AS350, is utilized by CBP AMO for a variety of demanding flight profiles, including border surveillance, suspect pursuit, and general public safety operations across the United States.
Bart Reijnen, Head of the North America Region for Airbus Helicopters, stated that the expansion “underscores the long-standing collaboration” between the manufacturer and the federal agency. He added that the selection highlights the trust placed in the H125 to execute critical public safety missions under demanding conditions, with Airbus committing to provide comprehensive services to maintain mission readiness.
Virtual reality integration for pilot training
As CBP AMO increases its H125 inventory, the agency is simultaneously overhauling how it trains the personnel who fly them. In November 2025, CBP became the first federal law enforcement agency and the first branch of the U.S. Department of Homeland Security (DHS) to integrate virtual reality into its aerial training program.
According to reporting by FLYING Magazine, the agency awarded a contract to adopt an FAA-qualified Airbus H125 virtual reality flight simulator developed by Loft Dynamics. The simulator is being installed at the CBP AMO training center in Oklahoma City, where it will be used to train the agency’s roster of more than 600 pilots.
AirPro News analysis
We view CBP AMO’s continued investment in the H125 platform as a clear indicator of the agency’s preference for fleet commonality. Operating a standardized fleet of over 100 H125-family helicopters significantly reduces maintenance overhead, streamlines supply chains, and simplifies pilot transition training. Furthermore, Airbus’s strategy of assembling these aircraft in Columbus, Mississippi, likely plays a crucial role in navigating federal procurement requirements, ensuring that the European manufacturer remains highly competitive for U.S. government contracts. The parallel investment in Loft Dynamics’ VR simulators suggests the agency is preparing for a sustained, long-term operational lifespan for the H125 fleet.
Sources: Airbus
Photo Credit: Airbus
Defense & Military
Bombardier Defense Signs 10-Year Support Deal With Sweden
Bombardier Defense and FMV finalized a 10-year support agreement for Sweden’s two Global 6500 TP 106 military transport aircraft.
Bombardier Defense and the Swedish Defence Materiel Administration (FMV) finalized a 10-year Services Support Agreement on July 22, 2026, securing long-term maintenance and operational readiness for Sweden’s newly acquired fleet of two Global 6500 transport aircraft.
Announced during the Farnborough International Airshow in a company press release, the agreement enrolls the Swedish Armed Forces (SWEAF) in Bombardier’s Smart Services Defense program. The comprehensive support package covers parts, labor, and engineering expertise for the aircraft, which are designated as the TP 106 in Swedish military service and replace the nation’s aging Gulfstream IV and Gulfstream G550 head-of-state transport fleet.
Fleet modernization and delivery timeline
The targeted acquisition deal for the two aircraft was valued at SEK 1.1 billion ($113 million) and formalized in May 2025, according to reporting by Aviation International News. The rapid procurement was enabled by utilizing existing airframes previously operated in Bombardier’s demonstration fleet, which were subsequently modified to meet Swedish Military-Aircraft requirements.
The formal handover of the aircraft took place on June 1, 2026, at the Uppland Wing F 16, as reported by Nordic Defence Sector. The aircraft will be operated by the 75th Swedish Civil Aviation Squadron at Skaraborg’s F7 Air Fleet, based at Stockholm Arlanda Airports (ARN), primarily conducting VIP and head-of-state transport missions.
Smart Services Defense and operational commonality
The 10-year agreement provides comprehensive cost coverage and logistical support for the new fleet. Bombardier stated the program includes landing gear and auxiliary power unit maintenance, ground support equipment, technical assistance, and access to mobile response teams.
Paul Sislian, Bombardier’s Executive Vice President of Aircraft Sales and Aftermarket Services, noted the program provides seamless original equipment OEMs support for the Swedish military.
“Through our Smart Services Defense program, the Swedish Armed Forces will benefit from seamless OEM support, enhanced readiness and predictable lifestyle costs, giving them the confidence to stay focused on the mission while we support their aircraft every step of the way,” Sislian said.
The selection of the Global 6500 platform offers strategic maintenance and operational commonality with Sweden’s incoming airborne early warning and control (AEW&C) fleet. The Swedish Armed Forces are procuring the Saab GlobalEye, designated the S 106, which is also built upon the Bombardier Global aircraft family architecture.
AirPro News analysis
The 10-year support agreement underscores a growing trend among defense ministries to rely on commercial OEMs for turnkey lifecycle support rather than developing bespoke military maintenance pipelines for commercial derivative aircraft. By aligning the TP 106 VIP transport fleet with the underlying platform of the S 106 GlobalEye, the Swedish Armed Forces are establishing a unified logistical footprint. We view this procurement Strategy as a highly efficient approach to fleet modernization, reducing training burdens for maintenance personnel and ensuring higher dispatch reliability through Bombardier’s established global civilian support network.
Sources: Bombardier
Photo Credit: Bombardier
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