Defense & Military
Canada Considers Reducing F-35 Order in Favor of Saab Gripen Jets
Canada may reduce its F-35 fighter jet order to 30 and acquire 60 Saab Gripen jets, enhancing domestic aerospace and reducing U.S. dependence.
This article summarizes reporting by La Presse.
Canada’s defense procurement strategy is undergoing a historic realignment. Following the recent selection of Saab’s GlobalEye surveillance aircraft, Prime Minister Mark Carney’s government is reportedly preparing to overhaul its fighter jet modernization plan. According to a May 30, 2026, analysis published by the French-language daily La Presse, Ottawa is strongly considering a pivot toward a mixed fleet approach, significantly reducing its reliance on U.S.-made stealth fighters in favor of Swedish alternatives.
The proposed shift would see Canada scale back its planned acquisition of 88 Lockheed Martin F-35s to approximately 30 aircraft. To fill the resulting capability gap, the government is weighing the purchase of around 60 Saab Gripen E/F fighters. This potential procurement pivot represents a major geopolitical and industrial maneuver aimed at insulating Canada’s defense supply chains from U.S. political pressure while simultaneously revitalizing domestic aerospace manufacturing.
This development arrives against a backdrop of increasingly strained bilateral relations between Ottawa and Washington. With U.S. President Donald Trump imposing new tariffs on Canadian imports and making inflammatory remarks regarding Canadian sovereignty, PM Carney has publicly pledged to diversify the nation’s defense partnerships. The potential Gripen acquisition aligns closely with Carney’s February 2026 defense industrial strategy, which targets nearly C$500 billion in defense-related investments over the next decade and prioritizes domestic technology transfers.
The GlobalEye Precedent
Speculation regarding the Gripen fighter jets directly follows a landmark procurement decision announced just days prior. On May 27, 2026, at the CANSEC defense trade show in Ottawa, PM Carney confirmed that Canada had selected Saab for its Airborne Early Warning and Control (AEW&C) program.
According to industry reports, Canada is currently negotiating the purchase of up to six Saab GlobalEye aircraft in a deal valued at over C$5 billion. In making this selection, Ottawa explicitly bypassed established American options, including Boeing’s E-7 Wedgetail and L3Harris’s Aeris system.
The GlobalEye agreement sets a clear precedent for domestic industrial benefits. The system integrates Saab’s advanced radar technology onto the Bombardier Global 6500 business jet, which is manufactured in Toronto. As part of the agreement, Saab has committed to building at least one-third of its projected global fleet of GlobalEyes in Canada, a move expected to create over 3,000 local jobs.
Pivoting to a Mixed Fighter Fleet
Reducing the F-35 Order
In January 2023, the previous Canadian government finalized a C$19 billion agreement to purchase 88 F-35A fighters. However, to date, Canada has only signed binding contracts for the first 16 jets. In March 2025, PM Carney ordered a formal review of the F-35 acquisition to evaluate its overall value and the strategic implications of long-term reliance on U.S. supply chains.
According to the reporting by La Presse, the government is now looking to cap the F-35 order to retain core fifth-generation stealth capabilities necessary for specific NORAD and NATO operations, while utilizing the Gripen for the bulk of its fleet requirements.
“Ottawa is reportedly considering capping the F-35 order at 30 aircraft… and acquiring 60 Saab Gripen E/F fighters for the remainder.”
The Gripen’s Domestic Appeal
Saab has reportedly proposed a highly lucrative industrial package to secure the fighter contract. If selected, the Gripen jets would be assembled and maintained within Canada. Furthermore, Saab has suggested that Canadian facilities could manufacture Gripens not only for the Royal Canadian Air Force but also to supply the Ukrainian Air Force.
The economic impact of such a deal would be substantial. Industry estimates suggest the Gripen agreement could create up to 9,000 new jobs in Canada and consolidate the domestic aerospace supply chain, particularly within Quebec. Operationally, proponents of the Gripen emphasize its lower operating costs, higher availability rates, and its ability to operate from austere, short runways, a critical requirement for Canada’s remote Arctic bases.
Geopolitical Risks and Logistical Hurdles
While the economic benefits of the Gripen are clear, defense analysts warn that reneging on the 88-jet F-35 contract carries significant risks. Experts note that such a move will likely anger the U.S. government and Lockheed Martin. There is a high probability that Lockheed Martin could launch a massive lawsuit to recover lost funds, drawing parallels to the billion-dollar penalties Canada faced when it canceled the EH101 helicopter contract in the 1990s.
Furthermore, operating a mixed fleet presents distinct logistical challenges. Maintaining two separate logistical, training, and maintenance pipelines for the F-35 and the Gripen could increase long-term sustainment costs, complicating the operational readiness of the Royal Canadian Air Force.
AirPro News analysis
We note that the timing of this potential procurement shift is highly strategic. According to defense media and La Presse, the Canadian government has practically finalized its decision but is delaying the official announcement until after the U.S. midterm elections in November 2026. This calculated diplomatic maneuver is clearly designed to avoid escalating trade tensions with the Trump administration during a volatile election cycle. Ultimately, Ottawa is attempting to balance the objective superiority of the F-35’s sensor fusion and stealth capabilities against the sovereign control and economic windfalls offered by the Gripen. How Canada navigates the anticipated U.S. backlash will define its aerospace and defense posture for decades to come.
Frequently Asked Questions
Why is Canada considering reducing its F-35 order?
The Canadian government is seeking to reduce its reliance on U.S. defense supply chains amid strained bilateral relations. By capping the F-35 order at 30 jets and purchasing 60 Saab Gripens, Canada aims to boost domestic aerospace manufacturing, create local jobs, and gain greater sovereign control over aircraft maintenance and intellectual property.
What is the GlobalEye aircraft?
The GlobalEye is an Airborne Early Warning and Control (AEW&C) aircraft developed by Swedish defense firm Saab. Canada recently selected it over U.S. alternatives in a C$5 billion deal. The system mounts Saab radar technology onto Toronto-built Bombardier Global 6500 business jets.
When will the Canadian government announce its final fighter jet decision?
According to recent reporting, the official announcement regarding the F-35 reduction and the Gripen acquisition is expected to be delayed until after the U.S. midterm elections in November 2026 to avoid escalating trade disputes.
Sources
Sources: La Presse
Photo Credit: Saab
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
Defense & Military
EU Funds SHARP Project for Next-Gen Military Helicopter Engine
The EU allocated €25M to the SHARP consortium, 25 partners from 12 countries developing Europe’s next military helicopter engine by 2040.
The European Commission has allocated approximately €25 million through the European Defence Fund to back a multinational consortium developing the propulsion architecture for Europe’s next generation of military helicopters.
Announced on June 11, 2026, at the ILA Berlin airshow, the Sovereign High-performance Architecture for Rotorcraft Propulsion (SHARP) project brings together 25 partners from 12 European countries. According to a joint press release from Safran Helicopter Engines, MTU Aero Engines, and Avio Aero, the initiative will establish the technological foundation for the European Next Generation Helicopter Engine (ENGHE), which is targeted to enter service in 2040.
Addressing an aging military rotorcraft fleet
The SHARP initiative aligns with broader European defense goals to replace a rapidly aging fleet of military aircraft under the Next Generation Rotorcraft Capability (NGRC) and European Next Generation Rotorcraft Technologies (ENGRT) programs. The current European inventory includes approximately 1,800 transport helicopters and 600 combat helicopters, which currently average 20 years of age. By the 2040s, many of these aircraft will have been in service for over 50 years.
“In light of a continuously aging European fleet of military helicopters the need is obvious: From 2040 onwards, a large proportion of these rotorcraft will have to be replaced,” said Dr. Ottmar Pfänder, Chief Program Officer at MTU Aero Engines. “We joined forces across the continent to underline the importance of this technology program. It will further reinforce European sovereignty and strengthen the European supply chain.”
The funding will be used to develop scalable technological building blocks that can be adapted to various weight classes and mission profiles required by future European armed forces.
Collaborative framework and European sovereignty
The SHARP project builds upon the foundation of the EUropean Military Rotorcraft Engine Alliance (EURA), a 50/50 joint venture established in July 2024 between Safran Helicopter Engines and MTU Aero Engines specifically to develop the ENGHE. The consortium has now expanded to include Avio Aero, broadening the industrial base tasked with designing the new powerplant.
Safran Helicopter Engines CEO Cédric Goubet stated that the funding demonstrates Europe’s commitment to self-reliance and technological sovereignty for future military platforms, thanking the European Union and participating nations for their confidence in the consortium’s capabilities.
“SHARP marks an important milestone in the journey toward Europe’s next-generation rotorcraft engine and reinforces the value of collaboration in developing sovereign, high-performance propulsion technologies,” said Riccardo Procacci, CEO of Avio Aero. “We are proud to partner with EURA on this initiative, contributing within a fully European framework while leveraging Avio Aero’s well-established expertise and know-how.”
EURA CEO Wolfgang Gärtner confirmed that the joint venture is prepared to coordinate the multinational team to provide modern technologies to European forces.
AirPro News analysis
The €25 million European Defence Fund grant represents a critical early step in aligning Europe’s fragmented defense aerospace sector behind a single rotorcraft propulsion program. By formalizing the SHARP consortium now, the European Union is actively working to prevent the development of competing, incompatible national engine programs that have historically complicated European defense procurement and increased long-term maintenance costs. We view the inclusion of Avio Aero alongside the EURA joint venture as a strong indicator that the ENGHE program is successfully consolidating the continent’s primary propulsion manufacturers ahead of the 2040 target.
Sources: Safran Group
Photo Credit: Safran Group
Defense & Military
Boeing MQ-25A Stingray Aboard USS Nimitz at FLEETEX 250
Boeing’s MQ-25A T1 demonstrator appeared on USS Nimitz during FLEETEX 250, weeks after Navy LRIP approval.
The Boeing Company’s MQ-25A Stingray T1 demonstrator drone appeared aboard the USS Nimitz (CVN 68) in the Atlantic Ocean on June 25, 2026, sporting special commemorative markings for the United States’ 250th anniversary. The uncrewed aircraft was photographed alongside Boeing F/A-18E Super Hornets and a Grumman C-2A Greyhound during a multinational group sail event.
The deployment provides a visual representation of the United States Navy’s future carrier air wing as the MQ-25 program transitions into its next production phase. Boeing Defense and the Navy publicly released imagery of the static display on June 29, 2026.
FLEETEX 250 and commemorative display
The T1 prototype was painted in a plain gray livery and featured “250” and “Boeing Backs America” markings. In a statement released on the social media platform X, Boeing Defense noted that the display was intended to honor the nation’s semiquincentennial and offer a glimpse of future carrier operations.
The USS Nimitz hosted the drone during Fleet Exercise (FLEETEX) 250. A Navy spokesperson told TWZ that the exercise involved 25 other warships and aircraft from 13 partner and allied nations conducting structured training events at sea. The spokesperson confirmed the presence of the Boeing-owned T1 prototype on the flight deck.
Aviation analysts at The Aviationist observed that the drone lacked the Cobham Aerial Refueling Store (ARS) pod, which is typically mounted under the left wing for refueling operations. The T1 demonstrator has never taken off from or landed on an aircraft carrier and was transported aboard the USS Nimitz for the exercise. It remains unconfirmed whether the uncrewed aircraft actively participated in any operational drills or if its presence was strictly for static display and photo opportunities.
Program milestones and carrier transitions
The appearance of the T1 demonstrator follows several recent advancements for the MQ-25 program. The Boeing-owned prototype originally flew on September 19, 2019, and previously conducted flight deck handling and remote control system demonstrations aboard the USS George H.W. Bush in December 2021.
On April 25, 2026, the first production-representative MQ-25 completed its maiden flight from Boeing’s facility at MidAmerica Airport in Illinois. The following month, the Navy officially approved the uncrewed tanker program’s transition into Low-Rate Initial Production (LRIP).
The FLEETEX 250 exercise also marked a significant operational transition for the Navy’s legacy aircraft. On June 25, 2026, the Grumman C-2A Greyhound made its final catapult launch and arrested landing from a carrier aboard the USS Nimitz. The C-2A is anticipated to be fully retired later in the year.
AirPro News analysis
The static display aboard the USS Nimitz offers a stark visual contrast between the Navy’s past and its immediate future. Placing the MQ-25A Stingray next to the retiring C-2A Greyhound highlights the physical footprint required to integrate advanced uncrewed assets into the carrier air wing. While the T1 demonstrator’s presence was largely ceremonial for the 250th anniversary, the recent approval for Low-Rate Initial Production indicates that the logistical and operational challenges of deploying uncrewed tankers at sea are moving from theoretical testing to active fleet integration. We expect the focus to shift rapidly toward deck handling and maintenance procedures for the production-representative models in the coming months.
Sources: Boeing Defense
Photo Credit: Boeing
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