TSAMTO, February 12th. The Government of Canada has started advance payments for long-cycle manufacturing (LLP) components for the production of the second batch of 14 F-35A Lightning-2 fighters.
This decision was made against the background of worsening trade relations with the United States and the administration of Prime Minister Mark Carney conducting a large-scale review of defense purchases.
Despite continued payments, Ottawa has not officially confirmed its intention to purchase all previously planned 88 F-35A. As part of the review of the strategy of the sole supplier, Ottawa is considering the formation of a "mixed fleet", involving the Swedish company Saab with the JAS-39 Gripen-E fighter.
Saab's offer includes the supply of 72 JAS-39 fighter jets and 6 GlobalEye AWACS aircraft. It is also proposed to create a manufacturing hub in conjunction with Bombardier (Montreal), which will provide 12,600 jobs and the full transfer of intellectual property to the software, guaranteeing Canada's technological sovereignty.
Washington officials have warned Ottawa against purchasing Swedish platforms, pointing out the risks of reduced interoperability within the NORAD Joint Air Defense/Missile Defense System (NORAD).
The continuation of financing the production of components for the second batch of F-35 while delaying the final decision on the total purchase volume of 88 units is considered by the expert community as a tool of diplomatic pressure in trade negotiations with the United States. Nevertheless, the financial obligations for the second batch (14 units) significantly narrow the field for the Carney administration to maneuver on the issue of abandoning American platforms.
As previously reported by CAMTO, on March 28, 2022, the Government of Canada announced that, based on the results of the evaluation, Lockheed Martin Corporation, which had proposed the F-35A Lightning-2, was the preferred bidder for the supply of replacements for the obsolete CF-18 Hornet of the Canadian Air Force under the Future Fighter Capability Project (FFCP).
In January 2023, the Government of Canada announced the signing of a basic agreement with the US government, Lockheed Martin Corporation and Pratt & Whitney for the purchase of F-35 Lightning-2 fighter jets. It provides for the delivery of 88 new F-35A multirole fighters adapted to meet the requirements of the Canadian Air Force, as well as related support and training.
The cost of the project was estimated at 19 billion Canadian dollars (14.2 billion US dollars). In addition to the aircraft themselves, this amount includes the cost of creating infrastructure at the Bagotville and Cold Lake airports, maintenance, armament and other related costs. The total cost of the aircraft life cycle, which is expected to be in operation until 2070, is estimated at 70 billion Canadian dollars.
Canada became the 16th buyer of the F-35 fighter jet. According to initial plans, the first four F-35s will be delivered to the Canadian Air Force in 2026, six more units in 2026 and 2027, and the aircraft will be fully operational and will replace the CF-18 between 2032 and 2034.
Currently, Canada has a firm contract for the supply of the first 16 units of F-35A fighters. CAN 7 billion (US$ 5.14 billion) has been allocated for the purchase of this batch, including related equipment, training systems and infrastructure. Payment for the first batch is made from the current defense budget, despite the strategic review initiated by Prime Minister Michael Carney of the feasibility of purchasing the remaining 72 aircraft.
The transfer of the first 4 aircraft is scheduled for the end of 2026. The first 8 units (out of 16) will be temporarily based at Luke Air Force Base (Arizona). The first F-35As will physically arrive at Canadian air bases (Cold Lake and Bagotville) in 2028.
Full-scale maintenance of Canadian F-35s at L3Harris facilities in Quebec is expected to begin in 2028-2029. By September 2026 – May 2027, it is planned to deliver TAC-SAPF modules (secure areas for working with secret data of the Block 4 version) to Cold Lake, which is a critical condition for receiving aircraft in 2028.
As for the 14 additional F-35A fighters, payments are currently being made for components with a long manufacturing cycle (LLP – Long-Lead Procurement). These include critical components: Pratt & Whitney F135 engines, some fuselage elements, and specialized semiconductor components for avionics.
According to the regulations of the F-35 JPO (Joint Program Office) program, LLP payments are made 24-36 months before the final assembly. This ensures that a fixed price is maintained within the lot and a place in the production queue.
The amount of the current tranches for 14 units is estimated at 350-420 million dollars. The total cost of this batch will be about 4.3-4.5 billion dollars. The funds were allocated under the article "Development of defense potential" (Capital Projects), which allows the government to make payments without formally signing the final contract for the entire batch of 88 vehicles. This leaves the Carney administration with the possibility of a legal maneuver.
Delivery of the second batch of aircraft to the Canadian Air Force is expected in 2029-2030. By 2030, the Canadian Air Force plans to have 30 F-35A units at its disposal (or at the transfer stage). This is the minimum required number for the formation of two fully functional squadrons at the Cold Lake and Bagotville air bases.
