Fri, 04 Dec 2020

OTTAWA, Canada - Five major aerospace companies in Canada and Boeing have inked an agreement which will see a multi-decade, multi-billion dollar investment by the world's biggest planemaker in the Canadian economy.

Centered around the partnership is the development of the Block III Super Hornet.

Through five new agreements, Boeing and its Canadian aerospace partners say they will deliver $61 billion and nearly 250,000 jobs to the Canadian economy.

"Canada is one of Boeing's most enduring partners and has continuously demonstrated that they have a robust and capable industry supporting both our commercial and defence businesses," Charles "Duff" Sullivan, Boeing Canada managing director said Tuesday. "The large scale and scope of these Canadian projects reinforces Boeing's commitment to Canada and gives us an opportunity to build on our motto of promises made, promises kept."

According to new data and projections from economists at Ottawa-based Doyletech Corp., the total economic benefits to Canada and its workforce for the acquisition of the F/A-18 Block III Super Hornet will last for at least 40 years and benefit all regions. A Super Hornet selection for the Future Fighter Capability Project (FFCP) is also expected to deliver hundreds of thousands of high paying jobs critical to the country's economic recovery.

"At a time when Canada is working toward recovery efforts coming out of the pandemic, a Super Hornet selection would provide exactly the boost that we need," Rick Clayton, economist at Doyletech Corp said Tuesday. "Boeing and its Super Hornet industry partners have a long track record of delivering economic growth to Canada, which gave us the confidence that our data and detailed projections are extremely accurate."

Tuesday's announcement includes partnerships with five of Canada's largest aerospace companies outlining how they would benefit from a Block III Super Hornet selection in the FFCP:

  • CAE (Montreal, Quebec): Boeing and CAE's Memorandum of Understanding (MOU) outlines the implementation of a comprehensive training solution for the Block III Super Hornet based in Canada and under full control of the Royal Canadian Air Force (RCAF). This includes full mission simulators and part task training devices for pilot training and maintenance technician training, courseware, as well as Contractor Logistics Support, Training Support Services, and Facilities Services to support RCAF training.
  • L3Harris Technologies (Mirabel, Quebec): The extensive MOU includes a wide range of sustainment services, including depot and base maintenance, engineering and publications support for the Canadian Super Hornet fleet; potential for other Super Hornet depot work; and maintenance scope for Canada's CH-147 Chinook fleet.
  • Peraton Canada (Calgary, Alberta): Boeing and Peraton currently work closely together on CF-18 upgrades. This work will expand to include a full range of Super Hornet avionic repair and overhaul work in Canada.
  • Raytheon Canada Limited (Calgary, Alberta): Boeing and Raytheon Canada's MOU outlines the implementation of large-scale supply chain and warehousing services at Cold Lake and Bagotville to support the new Super Hornet fleet, as well as potential depot avionics radar support.
  • GE Canada Aviation (Mississauga, Ontario): In cooperation with its parent organization, GE Canada will continue to provide both onsite maintenance, repair and overhaul support services for the F414 engines used on the Super Hornet, as well as technical services and engineering within Canada in support of RCAF operations and aircraft engine sustainment.

Boeing and its partners say they have delivered on billions of dollars in industrial and technological benefits obligations dating back more than 25 years. The work started with the sale of the F/A-18s in the mid-1980s and progressed through more recent obligations including acquisition of and sustainment work on the C-17 Globemaster and the CH-47F Chinooks to meet Canada's domestic and international missions. In 2019 Boeing's direct spending rose to $2.3 billion, a 15% increase in four years. When the indirect and induced effects are calculated, this amount more than doubles to $5.3 billion, with 20,700 jobs, according to Doyletech.

Boeing's long-standing partnership with Canada dates back to 1919, when Bill Boeing made the first international airmail delivery from Vancouver to Seattle. Today, Canada is among Boeing's largest international supply bases, with more than 500 major suppliers spanning every region of the country. With nearly 1,500 employees, Boeing Canada supplies composite parts for all current Boeing commercial airplane models and supports Canadian airlines and the Canadian Armed Forces with products and services.

Boeing is the world's largest aerospace company and provider of commercial airplanes, defense, space and security systems, and global services. Among the U.S.'s top exporters, the company says it has commercial and government customers in more than 150 countries.

(All figures quoted in this story are Canadian dollars).

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