Canadian firms line up for potential GCAP, Gripen work

MILAN — Canadian companies announced plans this week to team up with European partners on a pair of continental defense programs — assuming Ottawa moves forward with either of them. 

Montreal-based aerospace manufacturer Bombardier signed a Memorandum of Understanding today with Britain’s BAE Systems “to collaborate toward next-generation combat air programs,” the two companies said in a press release. While not spelling it out in the release, the phrase “next-generation combat air” is a clear reference to Canada’s potential tie-up with the British-Japanese-Italian Global Combat Air Programme (GCAP).

While the announcement offered few details on what this initial partnership will entail, it said the parties aimed to identify which technological sectors and capabilities made the most sense for them to cooperate on.

“This MoU marks an important step in exploring how Bombardier’s aerospace expertise, advanced manufacturing capabilities and defense integration experience could contribute to the development of next-generation air combat capabilities,” the company said in its press release.

In July, Canada’s government announced it was joining GCAP as an observer. At the time, the Italian Ministry of Defense told Breaking Defense that, at that stage, being an observer did not entail that Canada had an industrial role in GCAP, adding that it was infeasible then “to predict the timing, modalities, or conditions of any potential expansion” of the country’s new participation.

Since then, there has been little new information about Ottawa’s role in the sixth-generation fighter. But Canadian industry is certainly optimistic about getting involved in what could become a major global fighter aircraft.

On the sidelines of the Farnborough International Airshow over the summer, Pascal Grenier, the president of Defense and Security at Canada’s leading flight simulation and training company CAE, said that he hoped that Ottawa’s observer status within GCAP could pave the way for new opportunities for the Canadian aerospace industry. 

Saab Sweetens The Pot

Meanwhile, Tuesday brought an announcement from Swedish firm Saab, which revealed three major Canadian industrial partners it will bring on board should Ottawa move forward with acquiring the Gripen fighter.

“Saab confirms its intention to collaborate with several of Canada’s major international aerospace firms in a first step to establish a broad, national ecosystem that will build, deliver and support the Gripen E should the Canadian government proceed with a Gripen acquisition,” the Swedish company said.

The Saab proposal envisions producing and finally assembling the Gripen in Canada. It signed an agreement with Halifax-based IMP to oversee a new Canadian final assembly line and electrical production; another one with Magellan Aerospace to locally produce aerostructures and composite structures; and a final agreement with CAE to deliver pilot and technician training as well as mission systems engineering.  

Canada’s planned purchase of 72 additional F-35s from Lockheed Martin — after confirming an initial order for 16 aircraft — has been under review since March 2025. This has left open the possibility of a mixed fleet, which could include Saab-made Gripen jets, a move the company has lobbied hard for in Canada.

In July, Canadian Defense Minister David McGuinty told reporters that the decision status had not moved and would remain under consideration “until we take the time to get it right for Canadians.”