Aerospace firms push back against Bombardier, tout upsides of a Boeing military deal

By The Canadian Press on November 24, 2023.

MONTREAL – Canadian aerospace companies are pushing back against the idea that a Bombardier Inc. contract win to replace aging military patrol planes would be best for the sector, saying that a deal between Ottawa and front-runner Boeing Co. could be at least as lucrative.

Bombardier has been demanding the federal government allow for open competition on the successor to the Royal Canadian Air Force’s half-century-old CP-140 Aurora aircraft.

The Montreal-based business jet maker argues that its surveillance planes will, once they start rolling off the line early next decade, offer a cheaper and more high-tech product that will be manufactured in Canada.

So far the government has not said whether it will go with a sole-source contract or an open bid, but its procurement department has stated that Boeing’s off-the-shelf P-8A Poseidon is the only reconnaissance aircraft currently available that meets the military’s needs.

Martin Brassard, CEO of Quebec-based landing gear maker Héroux-Devtek, points to Boeing’s massive production capacity, which would generate business for parts providers and maintenance and repair operations across Canada, where 81 suppliers for the Poseidon are already based.

A Boeing-commissioned study by Ottawa-based Doyletech found that a Boeing contract would generate nearly $10 billion in domestic economic activity over a decade and directly support more than 230 Canadian business, while Bombardier has said a deal would add $2.8 billion to the country’s gross domestic product.

This report by The Canadian Press was first published Nov. 24, 2023.

Companies in this story: (TSX:BBD.B)

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