The Canadian Armed Forces would be required to procure 72 Gripen fighter jets and six GlobalEye surveillance aircraft from Swedish manufacturer Saab to fulfill its commitment of generating 12,600 jobs in Canada, as per CBC News sources. Saab’s proposals for both aircraft are presently under examination by defense and economic experts in Ottawa.
Saab had previously indicated the potential to generate around 10,000 jobs in Canada, but the specific number of aircraft orders needed to achieve this figure had not been disclosed publicly yet. The Swedish company’s initiatives have garnered significant interest from the Canadian government, aiming to diversify the country’s military equipment sources and bolster the industrial sector impacted by U.S. President Donald Trump’s tariffs.
Industry Minister Mélanie Joly emphasized the government’s interest in projects that enhance Canada’s security, sovereignty, and job creation nationwide. Saab affirmed that the commitment of creating 12,600 jobs is directly tied to the sale of Gripen and GlobalEye aircraft to Canada, as stated by Simon Carroll, president of Saab Canada.
The potential purchase of a Gripen fleet could affect Canada’s existing plan to procure 88 American F-35 aircraft, ordered in 2022 with an estimated cost exceeding $27 billion. While the F-35 purchase has been under review since earlier this year, a final decision on whether Canada will adjust its order size remains pending.
Saab intends to establish production facilities in Ontario and Quebec, along with a cross-country supplier network, to create over 10,000 direct and indirect jobs in Canada. The GlobalEye aircraft’s production, in collaboration with Bombardier, involves fitting surveillance systems and radars onto Bombardier’s Global 6500 jets, forming the airborne early warning and control (AEWAC) system in Canada.
With Canada’s defense spending projected to rise by $82 billion over the next five years, the government aims to maximize the economic impact of these investments. The appointment of a new deputy minister at the Department of National Defence signals a shift in the military’s strategic approach, emphasizing a holistic evaluation of procurement decisions.
While Saab’s proposals have gained traction in Canada, concerns exist regarding the integration of Swedish Gripens into NORAD’s defense systems and the potential challenges of managing multiple fighter fleets simultaneously. The ongoing discussions between the Canadian government and Lockheed Martin, the manufacturer of the F-35, highlight the complexities involved in balancing military needs with economic considerations.
The public perception and political affiliations play a significant role in Canadians’ preferences for fighter jets, with varying levels of support for different aircraft models across political parties. As the debate between the Gripen and F-35 continues, Canada faces critical decisions in aligning its military procurement strategy with evolving alliances and budgetary constraints.
The 2021 competition between the F-35 and Gripen culminated in Canada’s selection of the F-35 based on technical capabilities, cost-effectiveness, and economic benefits. Data from the competition underscored the F-35’s superiority in various military missions, influencing the government’s decision-making process.