Potential Delay in Delivery of Canada's F-35 Fighter Jets May Incur Additional Expenses

Potential Delay in Delivery of Canada's F-35 Fighter Jets May Incur Additional Expenses

28 Dec, 2023

Potential Delay in Delivery of Canada's F-35 Fighter Jets May Incur Additional Expenses

 

Amid ongoing technical challenges, a high-ranking U.S. military official has cautioned that the delivery of F-35 aircraft to Canada and other allied nations might face delays.

The potential delay in F-35 deliveries could lead to additional expenses for Canadian taxpayers, ranging from $400 million to $700 million, depending on the extent of the setback.

US Air Force Lt. Gen. Michael Schmidt, the F-35 program executive officer, expressed significant concerns regarding the development of the latest F-35 version, Block 4, indicating potential difficulties that might even result in halting aircraft production. Canada, among other nations, has ordered this aircraft variant.

Acknowledging these concerns, the Canadian Forces and National Defence highlighted ongoing challenges in software and hardware production, testing, and certification. While the initial delivery of F-35s to Canada in 2026 is currently on schedule, the department remains vigilant about potential delays and will continue monitoring the situation.

Parliamentary Budget Officer Yves Giroux cautioned that any delay in delivery could significantly impact costs for Canadian taxpayers, with a year's delay potentially increasing expenses by $400 million and a two-year delay by $700 million.

Manufacturer Lockheed Martin has communicated that various Block 4 components are in different stages of development, with incremental deliveries anticipated.

Despite concerns, Canadian government officials, including former Defence Minister Anita Anand, expressed confidence in Lockheed Martin's ability to meet delivery deadlines.

The recent announcement of Canada's purchase of 88 F-35s for $19 billion marked the conclusion of a prolonged procurement process. This decision overturned previous hesitations due to rising costs and technical issues associated with the stealth jet.

While praised by defense industry affiliates, social justice and peace groups oppose the substantial spending on jets, advocating for alternative allocations in healthcare, education, and housing.

Partnering in the F-35 program, Canada has contributed over $600 million USD towards the aircraft's development, with Canadian firms securing contracts worth over $3 billion for F-35 parts based on competitive merit.

 

 


Related News

Merchant Expands into Canada Through Strategic Partnership with SPM Financial

20 Nov, 2024

Merchant, a global company that provides growth capital, management resources,…
Read More
Small Rural B.C. Businesses Hit by Shipping Costs Amid Strike

18 Nov, 2024

Small and rural businesses in British Columbia are facing significant…
Read More
Australia Today Not Banned, Blocked by Meta Over Business Strategy

12 Nov, 2024

Australian news outlet The Australia Today has not been banned…
Read More
EDC and FPT Partner to Strengthen Strategic Cooperation Between Canada and Vietnam

06 Nov, 2024

Export Development Canada (EDC) and FPT Corporation, a global technology…
Read More
Top Five Business Trends to Watch in Canada This Week

04 Nov, 2024

Top Five Business Trends to Watch in Canada This Week…
Read More
Five Key Trends to Watch in Canadian Business Next Week

28 Oct, 2024

In the upcoming week, keep an eye on significant developments…
Read More

© 2024 Business International News. All rights reserved | Powered by Cred Matters.