232808
235224

Canada  

Clock ticking on Hornets

The Trudeau government has until the end of the year to decide on an offer for Super Hornet fighter jets, which remain on the table despite recent escalations in the bitter feud with aerospace giant Boeing.

The U.S. government delivered a formal offer to sell the Boeing-made planes to Canada last month, after the Liberals said they were urgently needed to address a shortage of CF-18s.

But sources tell The Canadian Press that the offer for 18 Super Hornets and associated weapons and equipment, at an estimated cost of more than $6 billion, is only good until the end of the year.

The government can ask for an extension, but there is no guarantee it will be granted.

And while the U.S. could end up making a new offer if the current one expires, there is a risk that the price will go up or the planes will have to be delivered later than the government wants.

The Liberals say they are still considering whether to buy Super Hornets despite Boeing's trade dispute with Canadian rival Bombardier.

"This allows us to make sure that we have various options," Defence Minister Harjit Sajjan said on Tuesday, after Bombardier announced plans to sell a majority stake in its CSeries program to European rival Airbus.

"We are committed to making sure the Canadian Armed Forces has all the tools necessary."

Canada has in fact been given longer to decide on the Super Hornets than is normal for countries that want to buy military equipment from the U.S. Formal offers are usually only good for 60 days before they expire.

But the extra time likely isn't enough to know how Boeing's trade dispute with Bombardier will turn out given that the case is expected to drag out at the U.S. International Trade Commission until next spring.



More Canada News