Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

AIRSHOW-Canada talks to bidders to map out fighter jet competition

Published 2016-07-08, 07:02 p/m
© Reuters.  AIRSHOW-Canada talks to bidders to map out fighter jet competition
BA
-
AIR
-
LMT
-
AM
-
SAABBs
-

(Adds comments from 2nd Canadian official, clarifies Dassault
did not take part in call)
By Tim Hepher and Andrea Shalal
RAF FAIRFORD, England, July 8 (Reuters) - Canada talked to
potential bidders on Thursday to map out next steps in a
protracted effort to replace an aging fleet of CF-18 fighter
jets built by Boeing (NYSE:BA) BA.N , industry and government officials
said on Friday.
Defence ministry spokesman Evan Koronewski said Ottawa
would assess its options over the summer, in part to determine
if Canada needed to purchase all 65 jets it initially planned.
Representatives of Boeing, Eurofighter AIR.PA , Lockheed
Martin LMT.N and Saab SAABb.ST took part in a conference
call with Canadian agencies on Thursday, a second government
spokesman said.
France's Dassault AVMD.PA did not take part but expressed
interest in meeting with Canadian officials next week at the
Farnborough International Airshow outside London, he said.
Koronewski said the government would consider issues such as
cost, delivery times, readiness, interoperability with North
American Aerospace Defense Command and economic benefits.
Boeing wants Canada to buy its F/A-18E/F Super Hornet, which
is nearing the end of production, instead of the Lockheed F-35
fighter that was backed by the previous Conservative government.
Canada paid to help develop the F-35, and many Canadian
firms produce parts for the plane, but those orders could
disappear if Ottawa opts for a rival, since countries that order
jets are entitled to industrial participation in the program.
Canada's ruling Liberals government vowed during the 2015
election campaign to ban the F-35 from a new competition, though
officials have since softened their stance. Lockheed has said it
could shift nearly $1 billion in orders from Canadian firms if
Ottawa quit the program.
Lockheed, which is showcasing the F-35 at two British air
shows this month, welcomed Thursday's call.
"We believe this is a positive first step to an open
competition and Lockheed Martin (NYSE:LMT) remains confident that the F-35
is the best and most affordable solution," said Lockheed
spokesman Joe LaMarca.
Lockheed says it believes the plane could win in an open
competition given its stealthy characteristics and a drop in
costs since bids were initially submitted.
Lockheed officials say the F-35 will cost around $85
million, including an engine, in 2019.
Boeing argues its Super Hornets would cost less, and is also
offering Canadian firms work on its commercial jets if Ottawa
decides to buy the F/A-18E/F.
"Boeing stands ready to support the government of Canada's
consultation process," said a spokeswoman.
Boeing has over the past five years awarded Canadian
companies $6 billion in direct contracts, the spokesman added.

(Editing by Elaine Hardcastle and Cynthia Osterman)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.