Canada is looking for an alternative to replace part of its outstanding F-35 order with American manufacturer Lockheed Martin. European competitors are waiting in line.
Recent statements from Saab CEO Micael Johansson confirm that the Swedish defence company is in going talks with Canada. The discussions cover a potential order for the JAS-39 Gripen E. This development follows Canada’s earlier decision in June 2023 to obtain 88 F-35 fighter jets from Lockheed Martin, a deal valued at nineteen billion Canadian dollars (USD 13,6 billion). An additional aspect of that agreement stipulated that the aircraft’s maintenance would take place in the United States.
However, the growing tensions in the trade relationship between the United States and Canada appear to be undermining support for the F-35 deal. Last month, the Canadian government announced a re-evaluation of its outstanding F-35 order. At the time, Canadian Defence Minister Blair indicated that discussions were already underway with European competitors, without specifying the names of the companies involved.
Saab
Saab now appears to be among those being consulted. The Swedish company was also in contention when Canada was considering the replacement of its aging F-18 Hornet fleet. As potential successors, the F-35, Eurofighter Typhoon, Saab Gripen E, Dassault Rafale, and F-18 Super Hornet were named as potential successors In 2017. Four years later, the Gripen E and the F-35 remained the primary candidates, after which Canada signed a contract in 2023 for the acquisition of 88 F-35s. However, Saab’s offer remained sound, as it met all the specified evaluation criteria.
If Saab’s original offer is still current, it includes the delivery of 88 Gripen E aircraft. Production and maintenance facilities would be established in Canada as well as the provision of various associated support systems. Given that the contract with Lockheed Martin obligates Canada to purchase sixteen F-35s, options for a mixed fleet of fighter jets are currently being explored. Minister Blair noted that adding a European aircraft could contribute to a more diverse fleet.
Blow
A significant cancellation of the F-35 order would be a considerable blow to Lockheed Martin. In such a scenario, the United States might attempt to block an order for a competing aircraft. Unlike earlier Gripen variants, the modern Gripen E is equipped with an American General Electric F414 engine. The US could therefore refuse export of this engine in an effort to steer Canada back towards the F-35. A similar situation recently arose in Colombia, which placed an order with Saab. Rumour had it that the US tried to block this deal in favor of the F-16.
Portugal
Furthermore, a European nation, Portugal, was also on the verge of ordering the F-35. It walked away however, due to current tensions with the United States. Like Canada, Portugal is in discussions with the Swedish aircraft manufacturer regarding the potential purchase of Gripen E aircraft as an alternative to the F-35. However, unlike Canada, Portugal is seeking a replacement for its aging F-16 fleet.