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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.

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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

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Redwire Secures $15M US Army Order for Stalker UAS Training Systems

Redwire wins a $15M follow-on contract to supply Stalker uncrewed aerial systems for US Army training at Fort Huachuca, enhancing 15-series MOS capabilities.

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This article is based on an official press release from Redwire Corporation.

Redwire Corporation (NYSE: RDW) has secured a $15 million follow-on order from the United States Army Aviation Center of Excellence (AVCOE) to provide its Stalker uncrewed aerial systems (UAS). According to an official press release from the company, the systems are slated for deployment to Fort Huachuca, Arizona, where they will support advanced individual training programs.

The newly ordered drones will be utilized by the 2nd Battalion, 13th Aviation Regiment. Their primary mission is to facilitate the training of the Army’s evolving 15-series Military Occupational Specialty (MOS), a modernized role that merges the responsibilities of drone operators and maintainers. This specialized training focuses heavily on reconnaissance, surveillance, and target acquisition (RSTA) operations conducted alongside ground forces.

This latest procurement marks the third order Redwire has received from the 1st Aviation Brigade in the past eight months. Based on company announcements and industry research, this brings the total recent order value from the brigade to $24.8 million, underscoring the military’s growing reliance on Redwire’s tactical platforms for next-generation warfighter preparation.

Training the Modern Warfighter

The 15-Series MOS Evolution

The US Army is actively modernizing its approach to unmanned systems, shifting toward highly trained specialists who can both operate and maintain complex aerial assets in the field. The 15-series MOS Tactical Unmanned Aircraft System (TUAS) Specialists represent this shift. By utilizing the Stalker UAS at Fort Huachuca, the Army aims to provide these soldiers with hands-on experience using equipment that mirrors what they will encounter in active operational theaters.

Redwire notes that its Stalker training programs are built upon operational lessons learned from hundreds of thousands of flight hours across six continents. The curriculum is designed to prepare soldiers for real-world mission variables.

“Our Stalker is purpose built to meet multiple mission needs, and will significantly bolster the U.S. Army’s ability to detect, identify, and track threats across a wide range of operational theaters,” stated Steve Adlich, President of Redwire Defense Tech, in the company’s press release.

Adlich further emphasized the strategic importance of the training pipeline, noting that Redwire understands the criticality of the “train the trainer” methodology through individualized instruction to support the evolving needs of the modern battlefield.

Technical Capabilities of the Stalker UAS

Endurance and Modularity

The Army’s continued investment in the Stalker platform is driven by the system’s specific technical capabilities. The Stalker is a Group 2 Vertical Take-Off and Landing (VTOL) aircraft designed with a Modular Open Systems Approach (MOSA). According to technical specifications provided in recent industry reports, this MOSA architecture allows operators to rapidly swap payloads and integrate technical upgrades directly in the field, reducing “vendor lock” and improving interoperability with other military networks.

Power and endurance are critical factors for RSTA missions. The Stalker features a highly adaptable power system. It can operate on a main battery for nearly six hours of continuous flight. For extended missions, operators can quickly switch the system in the field to a propane solid-oxide fuel cell, which extends its flight operations to over 17 hours.

Stealth and Network Integration

In addition to its endurance, the Stalker boasts a communications range of up to 160 kilometers. The drone is engineered with a silent acoustic profile, allowing it to drop low over target areas and persist undetected for extended periods. Despite these robust capabilities, the entire system maintains an extremely small logistics footprint; it can be fully assembled in minutes and fits entirely inside a single SUV.

Recent field tests have also proven the system’s digital resilience. During the US Army’s Ivy Sting IV exercise at Fort Carson in March 2026, the Stalker UAS successfully demonstrated its ability to integrate seamlessly into the Army’s Next Generation Command and Control (NGC2) tactical network. It functioned as a native node, delivering real-time location data and full-motion video, validating its readiness for data-heavy, encrypted combat networks.

Redwire’s Expanding Defense Footprint

Recent Contract Wins

The $15 million Army order is part of a broader string of high-value defense contracts for Redwire. In April 2026, the company secured a $20 million contract to supply the US Navy and Marine Corps with the Stalker Block 30 variant. This specific version features Advanced Navigation technology designed to operate in highly contested, GPS-denied environments and areas with heavy electronic warfare (EW), capabilities directly informed by modern conflict zones.

Furthermore, just one day prior to the Army announcement, on May 19, 2026, Redwire announced a high eight-figure, multi-year contract to deliver its next-generation Penguin Mk3 tactical UAS to an undisclosed NATO ally. These consecutive announcements highlight the company’s rapid expansion as a global defense supplier.

AirPro News analysis

Redwire’s expanding defense portfolio is generating significant market momentum. The company is successfully capitalizing on the defense industry’s urgent shift toward advanced, expeditionary unmanned systems that can survive in contested electronic environments. Financial data as of May 20, 2026, reflects this operational success: Redwire’s stock has seen a 175% gain over the past six months, supported by a 34% revenue growth over the trailing twelve months. By securing contracts across the Army, Navy, Marine Corps, and NATO allies within a tight timeframe, Redwire is positioning itself not just as an equipment vendor, but as a foundational partner in the US and allied military’s tactical network architecture.

Frequently Asked Questions

What is the Redwire Stalker UAS?

The Stalker is a Group 2 Vertical Take-Off and Landing (VTOL) uncrewed aerial system designed for reconnaissance, surveillance, and target acquisition. It features a modular design, a silent acoustic profile, and an adaptable power system.

Why is the US Army buying the Stalker UAS?

The US Army Aviation Center of Excellence is purchasing the Stalker systems to support advanced individual training for its 15-series MOS soldiers at Fort Huachuca. The UAV provide hands-on experience for specialists who will operate and maintain tactical unmanned aircraft in the field.

How long can the Stalker UAS fly?

The Stalker can fly for nearly six hours on its main battery. When equipped with a propane solid-oxide fuel cell, its flight endurance is extended to over 17 hours.


Sources:
Redwire Corporation Press Release

Photo Credit: Redwire Corporation

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Embraer and Hellenic Aerospace Industry Partner on C-390 MRO in Greece

Embraer and Greece’s HAI sign MoU to develop domestic MRO capabilities for the C-390 Millennium, supporting Hellenic Air Force modernization.

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This article is based on an official press release from Embraer, supplemented by industry research reports.

Introduction to the Strategic Partnership

On May 22, 2026, Brazilian aerospace manufacturer Embraer and Greece’s state-owned Hellenic Aerospace Industry (HAI) officially signed a Memorandum of Understanding (MoU). According to a company press release, this agreement establishes a framework to develop in-country Maintenance, Repair, and Overhaul (MRO) capabilities specifically for the C-390 Millennium military transport aircraft.

This strategic partnership arrives at a critical juncture for the Hellenic Air Force (HAF), which is actively seeking to modernize its aging tactical airlift fleet. By laying the groundwork for domestic sustainment, the agreement aims to ensure operational autonomy for Greece while injecting long-term industrial value into its domestic aerospace sector.

The MoU was signed by Fabio Caparica, Vice President of Contracts at Embraer Defense & Security, and Alexandros Diakopoulos, Executive Chairman of Hellenic Aerospace Industry, marking a significant step in Greece’s defense procurement strategy.

Addressing Greece’s Airlift Capability Gap

The Aging Tactical Fleet

The Hellenic Air Force is currently navigating a critical airlift capability gap. Based on industry research reports, Greece’s primary tactical transport fleet relies heavily on legacy Lockheed C-130 Hercules aircraft that originally entered service in the 1970s. These aging airframes have suffered from structural fatigue, resulting in notably low availability rates in recent years.

While Greece also operates Leonardo C-27J Spartan transports, defense analysts note that a heavier, more capable medium transport aircraft is urgently required. The HAF needs modernized assets to effectively execute island resupply, medical evacuation, force deployment, and broader NATO support missions.

The Path to the C-390 Millennium

Embraer has been actively positioning the C-390 Millennium as the solution to Greece’s airlift challenges. The manufacturer previously showcased the aircraft to the HAF during evaluations at Elefsina Air Base in 2023. The C-390 is a medium-size, twin-engine, jet-powered military transport aircraft capable of carrying up to 26 tons of payload. It is designed for rapid reconfiguration to support multi-mission profiles, including troop transport, airdrop operations, firefighting, and aerial refueling.

Building Domestic Industrial Value

Official Perspectives on the MoU

The agreement between Embraer and HAI is designed to provide substantial domestic industrial offsets for Greece. In the official press release, leadership from both organizations emphasized the long-term benefits of the partnership.

“Signing this MoU with Embraer means more to us than a business agreement. It reflects our conviction that HAI can and should be the natural choice for world-class aerospace companies seeking a reliable partner in Europe. Developing C-390 maintenance and support capabilities in Greece does not only serve the operational needs of the Hellenic Air Force, it also builds an industrial foundation of lasting, long-term value for our country.”
, Alexandros Diakopoulos, Executive Chairman of HAI

Embraer representatives echoed this sentiment, highlighting the goal of establishing a sustainable support network within the region.

“This strategic agreement with Hellenic Aerospace Industry paves the way for future discussions on expanding in-country maintenance expertise, supporting enhanced MRO capabilities and autonomy for the Hellenic Air Force (HAF). We are committed to strengthening this partnership by sharing our services and support expertise to help develop local capabilities and establish a solid foundation for long-term, sustainable cooperation.”
, Fabio Caparica, VP of Contracts at Embraer Defense & Security

Furthermore, Douglas Lobo, VP of Customer Support & Aftermarket Sales for Embraer Services & Support, noted in the release that the agreement will enable Embraer to strengthen its presence in Greece and reinforce its long-standing relationship with the nation.

European Expansion and Diplomatic Momentum

NATO Interoperability and Procurement Pathways

The C-390 Millennium is gaining significant traction across Europe, with existing orders from NATO members including Portugal, Hungary, and the Czech Republic. This growing user base ensures strong interoperability and a robust European support network.

Recent diplomatic movements suggest Greece is moving closer to a formal acquisition. Earlier in May 2026, Greek Defense Minister Nikos Dendias visited Lisbon, Portugal, where he publicly confirmed ongoing discussions regarding the potential acquisition of the C-390. According to defense research reports, Portugal holds 10 purchase options for the aircraft that can be reassigned to other NATO members, potentially offering Athens a streamlined procurement pathway. Greek defense media reports indicate that Athens may initially seek to acquire at least three C-390 aircraft, with room for future fleet expansion.

AirPro News analysis

At AirPro News, we view this Memorandum of Understanding as a highly significant indicator of Greece’s procurement intentions. In the global defense industry, establishing a formal MRO framework with a state-owned entity like HAI is rarely executed without a high degree of confidence that an aircraft acquisition is imminent. This MoU serves as the strongest signal yet that Athens is finalizing its decision to purchase the C-390 Millennium.

Furthermore, this move perfectly aligns with Embraer’s aggressive expansion strategy within the European and NATO defense markets. By proactively partnering with local defense contractors, Embraer makes its procurement bids highly attractive to European governments that mandate domestic industrial offsets and technology transfers as a strict condition for foreign military purchases.

Frequently Asked Questions (FAQ)

What is the C-390 Millennium?

The C-390 Millennium is a medium-size, twin-engine, jet-powered military transport aircraft manufactured by Brazilian aerospace company Embraer. It features a 26-ton payload capacity and can perform various missions, including cargo transport, medical evacuation, search and rescue, and aerial refueling.

Why is Greece partnering with Embraer for MRO?

Greece is partnering with Embraer to develop in-country Maintenance, Repair, and Overhaul (MRO) capabilities through the state-owned Hellenic Aerospace Industry (HAI). This ensures that if the Hellenic Air Force acquires the C-390, the maintenance will be handled domestically, providing operational autonomy and boosting the local aerospace economy.

Sources

Photo Credit: Embraer

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Defense & Military

Italy Procures Six Airbus A330 MRTT Tankers in €1.39B Deal

Italy finalizes €1.39 billion contract to acquire six Airbus A330 MRTT tankers, increasing aerial refueling capacity and enhancing NATO alignment.

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This article summarizes reporting by Euronews.

In a significant shift for European aerospace and defense, the Italian Air Force (Aeronautica Militare) has officially finalized a contract to procure six Airbus A330 Multi Role Tanker Transport (MRTT) aircraft. According to reporting by Euronews, this acquisition marks a definitive pivot away from United States-manufactured platforms, aligning Rome more closely with its European neighbors and NATO allies.

The agreement, valued at approximately €1.39 billion ($1.6 billion), was signed on April 16, 2026, and made public in mid-May through the European Union’s Tenders Electronic Daily (TED) platform. This procurement will replace Italy’s aging fleet of four Boeing KC-767A tankers, which have been in service since 2011, and represents a 50 percent increase in the nation’s aerial refueling capacity.

For the defense sector, this development is widely viewed as a major industrial victory for Airbus and a corresponding setback for Boeing. It underscores a growing trend of European militaries prioritizing equipment commonality, industrial autonomy, and proven platform reliability over legacy transatlantic defense ties.

The Airbus A330 MRTT Procurement Details

The €1.39 billion contract awarded to Airbus Defence and Space is comprehensive. According to the TED contract award notice, the deal includes not only the delivery of the six aircraft but also 10 years of integrated logistic support (ILS) and maintenance. This long-term support structure is designed to ensure high operational readiness rates for the Italian Air Force over the next decade.

Aviation industry reports and defense analysts note that Italy will acquire the standard A330-200-based MRTT. Rather than utilizing the newly announced A330-800neo-based MRTT+ airframes, the Italian procurement will reportedly rely on secondhand commercial airframes that will be heavily modified and converted for military use by Airbus.

Fleet Expansion and Technical Capabilities

The transition from Boeing to Airbus will provide the Italian Air Force with substantial upgrades in both capacity and operational flexibility. By expanding the fleet from four to six aircraft, Italy significantly enhances its ability to project air power and support extended combat air patrols across critical regions such as the Mediterranean, the Baltics, and the Red Sea.

Based on specifications provided by Airbus Defence and Space, the A330 MRTT offers distinct performance advantages over its competitors. The aircraft boasts approximately 15 percent more fuel capacity than the Boeing KC-46A, with a maximum fuel load of roughly 111 tonnes. Furthermore, it can carry a substantially greater cargo payload of up to 45 tonnes, or accommodate approximately 300 troops.

The platform’s multi-role designation is a critical factor in its selection. Beyond its primary air-to-air refueling mission, which is fully compatible with Italy’s fleet of F-35s, Eurofighters, and Tornados, the A330 MRTT can be rapidly reconfigured. According to Airbus corporate data, the aircraft features a range of up to 16,000 kilometers (8,700 nautical miles) and an endurance exceeding 18 hours. It can also be outfitted for strategic VIP transport or Medical Evacuation (MEDEVAC) missions, capable of carrying up to 40 stretchers alongside dedicated medical personnel.

A Major Setback for Boeing’s Defense Division

Italy’s finalized contract with Airbus represents the culmination of a turbulent procurement saga that initially favored American aerospace giant Boeing. In 2021, Rome announced intentions to upgrade its existing KC-767A fleet and purchase two additional airframes. By 2022, this strategy evolved into a planned acquisition of six new Boeing KC-46A Pegasus tankers.

However, in the summer of 2024, the Italian Ministry of Defense abruptly suspended the €1.1 billion KC-46A procurement program. Defense publications reported that the cancellation was driven by mounting frustrations over the KC-46A’s technical flaws, delivery delays and escalating costs.

“changed and unforeseen needs”

, Official reasoning cited by Italian authorities for the 2024 cancellation, according to defense analysts.

The KC-46A Pegasus program has been historically plagued by engineering challenges, most notably with its Remote Vision System (RVS) and refueling boom nozzle. These technical issues previously forced the United States Air Force to restrict certain refueling profiles, severely impacting the platform’s international marketability and ultimately leading Italy to launch the new European tender that Airbus won.

Strategic Implications for NATO and Europe

While fighter jets frequently dominate defense headlines, aerial refueling tankers are the critical enablers of modern air power. They dictate the operational reach and endurance of combat aircraft. Consequently, Italy’s choice of tanker carries profound strategic weight.

According to Euronews reporting, this purchase aligns Italy with a rapidly expanding European tanker ecosystem. The A330 MRTT is already in active service with the air forces of France, Spain, and the United Kingdom. Furthermore, the aircraft serves as the backbone of NATO’s Multinational MRTT Fleet (MMF), which provides pooled aerial refueling capabilities for Belgium, Denmark, Germany, the Netherlands, and Sweden.

AirPro News analysis

We observe that Italy’s €1.39 billion investment in the Airbus A330 MRTT is as much a geopolitical statement as it is a technical procurement. By abandoning the Boeing KC-46A in favor of a European alternative, Rome is actively reinforcing the continent’s defense industrial base. This move heavily boosts NATO standardization and interoperability, ensuring that Italian tankers can seamlessly service allied aircraft using shared maintenance and logistical networks across Europe.

Furthermore, this contract cements Airbus’s near-total dominance in the international tanker market. With Italy becoming the 19th nation to operate the A330 MRTT, the platform has now accumulated over 90 orders globally. Based on industry estimates, Airbus currently holds more than 90 percent of the aerial refueling market share outside the United States. We anticipate that Boeing will face continued difficulties in exporting the KC-46A as European nations increasingly prioritize shared, proven platforms that guarantee industrial autonomy from Washington.

Frequently Asked Questions

What is the value of Italy’s new tanker contract?

According to the European Union’s Tenders Electronic Daily (TED) platform, the contract awarded to Airbus is valued at approximately €1.39 billion ($1.6 billion) and includes six aircraft alongside 10 years of integrated logistic support.

Why did Italy cancel its previous order with Boeing?

Italy suspended its planned €1.1 billion purchase of six Boeing KC-46A tankers in 2024 due to “changed and unforeseen needs.” Defense analysts attribute this to the KC-46A’s ongoing technical issues, specifically regarding its Remote Vision System, as well as delivery delays and rising costs.

How does the Airbus A330 MRTT compare to the Boeing KC-46A?

Airbus data indicates the A330 MRTT offers roughly 15 percent more fuel capacity (111 tonnes) and a significantly larger cargo payload (up to 45 tonnes or 300 troops) compared to the KC-46A. It also boasts a range of 16,000 kilometers.

Sources: Euronews

Photo Credit: Airbus

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