Lockheed Martin Close To Winning Canada's $19 Billion Fighter Jet Contract
Date
3/29/2022 10:09:23 AM
(MENAFN- Baystreet.ca)
Lockheed Martin Close To Winning Canada's $19 Billion Fighter Jet Contract
Canada's Department of National Defence has selected Lockheed Martin (LMT) as the“preferred bidder” to supply the country with 88 new stealth fighter jets.
The move demonstrates that the federal government, which is under pressure to boost defense spending following Russia's invasion of Ukraine, is close to deciding on a procurement that has dragged out for more than a decade.
Ottawa has been trying unsuccessfully for more than a decade to replace its aging CF-18 fighter jets. The former Conservative administration said in 2010 that it would buy 65 F-35 stealth fighter jets but later scrapped the decision, triggering years of delays and internal reviews.
The current federal government of Prime Minister Justin Trudeau will now only hold detailed talks with Lockheed Martin on the purchase. Ottawa says it hopes to award the contract this year and take first deliveries by 2025.
The current contract is worth up to $19 billion.
Defense sources had long bet on the U.S. company, given Canada belongs to the consortium that developed its F-35 fighter jet and the fact the plane is the military's first choice.
Prime Minister Trudeau said in 2015 that his government would not buy the F-35 because the program is too expensive but has since changed his position.
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