Canada Signs Term Sheet With Saab for Six GlobalEye Aircraft

Saab and the Canadian Defence Investment Agency (DIA) signed a non-binding term sheet on September 25, 2026, establishing the framework for Canada’s potential acquisition of six GlobalEye Airborne Early Warning and Control (AEW&C) aircraft.

Announced via official statements from both the manufacturers and the Canadian government, the agreement advances Canada’s ongoing effort to modernize its continental defense and Arctic surveillance capabilities. The signing follows a May 27, 2026, announcement by Prime Minister Mark Carney designating Saab as the preferred supplier for the Royal Canadian Air Force (RCAF) AEW&C program.

Modernizing North American defense

The RCAF intends to utilize the GlobalEye fleet to fulfill its commitments to the North American Aerospace Defense Command (NORAD) and enhance domain awareness over Canada’s northern approaches. The AEW&C platform provides long-range detection and tracking of airborne, maritime, and surface targets, replacing legacy systems with modern sensor fusion capabilities.

“An Airborne Early Warning and Control capability will significantly strengthen Canada’s ability to detect, track, and respond to threats to our territory and approaches,” stated Lieutenant-General Jamie Speiser-Blanchet, Commander of the RCAF. “Beyond the capability itself, AEWC is about building the future Air and Space Force that Canada requires in an increasingly complex security environment.”

The procurement falls under Canada’s broader initiative to rebuild its military infrastructure and tighten security integration with European and North American allies.

Domestic industrial strategy

A central component of the procurement negotiations involves the aircraft’s underlying platform. The Saab GlobalEye is built upon the Bombardier Global 6500, an ultra-long-range business jet manufactured in Montreal, Canada. The Canadian government plans to leverage this domestic production line to secure long-term economic benefits and establish a local center for future missionization and support work.

The acquisition aligns with Canada’s Defence Industrial Strategy, which prioritizes purchasing proven systems from allied nations while mandating domestic industrial participation. Canadian Defense Minister David McGuinty described the term sheet as a tangible step toward equipping the RCAF with modern operational capabilities required for future deployments.

AirPro News analysis

While the term sheet represents concrete progress, we note a distinct difference in messaging between the negotiating parties. The Canadian government’s official communications heavily emphasize the domestic production of the Bombardier Global 6500 and the intent to perform missionization work within Canada. Conversely, Saab’s official statements remain circumspect, referring only broadly to “industrial participation” as a subject for the upcoming detailed negotiations. Because the current agreement is non-binding, the final distribution of manufacturing, systems integration, and maintenance workshare remains a critical hurdle before a finalized contract can be signed for the six airframes.

Sources: Saab