Canada to buy used Australian jets, not Boeing planes
The announcement shoots down a deal Canada had considered to buy 18 new Super Hornets from Boeing, but killed the idea because the American aerospace giant filed a challenge to Canadian aircraft manufacturer Bombardier.
The challenge was backed by the U.S. government when it slapped a 300 percent duty on any Bombardier-made passenger jets sold in the American market.
That situation caused the Canadian government to say Boeing was “no longer a trusted partner” – the canceled deal was worth about CAN$19 billion.
There was no price tag announced for the Australian deal which will see the used jets begin arriving in 2019 as a stop-gap measure until Canada launches a competition to replace its fleet of aging jets with 88 new aircraft.
That new purchase will be worth between CAN$20 billion and $26 billion and a contract is expected to be awarded in 2022.
But the government also announced a new wrinkle in the contract -- a clause that says any companies that bid will now be assessed on their economic effect on Canada. ■