Canada has ended its plan to purchase 18 Boeing Super Hornet fighters. Instead, it will purchase from the government of Australia the same number of used F-18 fighters.
Canadian Prime Minister Justin Trudeau previously had warned that his government would stop buying from Boeing if the aircraft maker did not drop its complaint against Bombardier a plane maker based in Canada.
Canada warned again Tuesday that Boeing would have little to no chance of landing a new deal for 88 more fighter jets.
The Canadian government said on Tuesday as well that it was assessing companies’ impact on the economy of Canada prior to buying the other 88 fighter jets that are needed to replace the aging F-18s it currently has.
Bidders who are responsible for hurting the economic interest of Canada will have a disadvantage in comparison to the bidders who do not engage in such detrimental behavior, said Carla Qualtrough the Procurement Minister.
A spokesperson for Boeing said that the minister’s statement had been directed toward Boeing and that Boeing is respectful of the decisions by the government of Canada to purchase planes from Australia.
The Boeing spokesperson added that the company would be reviewing requirements for its new fleet while emphasizing the long-term presence Boeing has in Canada.
Boeing has claimed that the New Bombardier C Series passenger planes are given subsidies that allow it to have an international advantage.
Canada has held talks with Boeing to buy the Super Hornet Fighter Jets in an attempt add new fighter jets to its aging fleet of F-18s.
However, officials have said the jets from Australia will cost far less than the new Super Hornets. They could also be place in action a full two years sooner. Qualtrough in an official statement said that Canada planned to pursue the offer for F-18 aircraft in Australia and would let the offer from the government of the U.S. for Super Hornets expire.
The Canadian Armed Forces Defense staff chief Jonathan Vance said that Canada could not meet its international and domestic obligations if it did not get supplemental capability prior to the new fighter fleet being in place and the jets from Australian will work well.
Canada will start receiving the deliveries of jets from Australia in 2018. The deal’s value was estimated to be $388 million.