We could close Canadian companies. This is the "punitive measure" feared by Lockheed Martin should the Canadian government not buy the F-35 in favor of Boeing's Super Hornet.
A move, that of Lockheed, which would wipe out the billions of dollars worth of work for Canadian companies involved in the production of the F-35. "This is not a threat - says Steve Over, Director of the International Business of the F-35 at the Canadian Broadcasting Corporation - but we will have no choice. If Canada exits the F-35 program, we will invest in the workforce of the nations that will buy the aircraft ".
The Canadian government would be buying three Super Hornet squadrons as an interim solution to replace the current CF-18 fleet. A political solution that "saves" the current government on the final decision regarding the F-35 affair. In a nutshell, if Canada were to buy the F-35 it would do so only after the 2020, for a decision that would still be up to the next government. The current prime minister of the liberal party Justin Trudeau, had promised during last year's election campaign that his government would never purchase the Joint Strike Fighter. Canadian Defense Minister Harjit Sajjan said that Canada will have to decide immediately considering the commitments with NORAD and NATO. For years, the Canadian government has been looking for a platform that can replace CF-18 fighters. To ensure a safe and effective transition to the new weapon system, Canada has extended the operational life of the entire CF-18 fleet to the 2025.
Canada was interested in the A-version of the F-35 which currently costs 108 million dollars. The F-35 was one of the biggest political concerns for the conservative government. The liberal government had originally signed up for the JSF's research and development program, but conservatives have significantly expanded Canada's role and committed the government to buying the plane in advance. But to address the disputes over the real cost of the F-35, the government tried to hide the true final price of the aircraft. The Canadian National Defense Department originally claimed that the JSF program would have cost 14,7 billion dollars altogether. Digit then denied. The estimate for the adoption of the F-35 platform (for 65 fighter), was 29 billion dollars.
The exit of Canada, or at least the freezing of the acquisition for at least ten years, will result in an increase of one million dollars in the final price of each plane. The estimated price increase is 0,7% for all partner countries. The development program, which will end in 2017, will not be delayed. Lockheed has already confirmed that it will honor existing contracts, but once concluded it will transfer the work to the companies of the countries involved in the acquisition. If this happens, international partners will also be forced to absorb Canada's share (2,1%) for the costs of livelihood and modernization. According to contracts, Canada remains a partner of the JSF program, but there is no clause that could force Ottawa to purchase the F-35. In reality, this is a procedure that should be the same for all partner countries, none of which (although at a high level for the development of the platform) are obliged to buy the fifth-generation tactical fighter.
Lockheed Martin's move could have repercussions for the aeronautical giant. In the first place, any attempt to cut Canadian companies from the F-35 program should be assessed with absolute caution, if possible legal action is taken. Secondly, Canada could in turn include the American company in the blacklist, deciding to block any future acquisition by Lockheed Martin (like that twenty-billion-dollar contract for the Frigate Replacement Program). Thirdly, finally, Lockheed should find, in the short term, companies capable of producing F-35 systems with the same quality and price as those built in Canada. Lockheed Martin, however, points out that "Canada's involvement in the F-35 program is based on the declared commitment to purchase 65 aircraft".
(photo: LM)
