Latest news with #CF-18
Yahoo
a day ago
- Business
- Yahoo
Lockheed's F-35 jets to cost Canada 50% more than planned, Auditor General says
-- Canada's purchase of 88 Lockheed Martin (NYSE:LMT) F-35 fighter jets will cost approximately C$27.7 billion ($20.2 billion), nearly 50% more than initially estimated, according to a government audit released Tuesday. Canadian Auditor General Karen Hogan's report, tabled in the House of Commons, revealed significant cost increases and potential risks that could delay the introduction of the new fleet, which is intended to replace Canada's aging CF-18 fighter jets. The governments of Canada and the United States finalized an arrangement in December 2022 to acquire the multi-role CF-35A fighter jets along with associated equipment, weapons, and services as part of the Future Fighter Capability Project. When the government finalized the arrangement, the estimated costs were C$19 billion. The audit found this figure was based on outdated information. By 2024, costs had jumped to C$27.7 billion and did not include other elements needed to achieve full operational capability. Essential infrastructure upgrades and advanced weapons would add at least another C$5.5 billion to the total cost, according to the report. The audit also identified that construction of two new fighter squadron facilities to accommodate the CF-35As was more than three years behind schedule. Costs for an interim solution to support the new jets will further increase infrastructure expenses. Another major concern highlighted in the report is a potential shortage of qualified pilots to fly the advanced aircraft. This personnel issue was previously identified in a 2018 report from the Auditor General and remains unresolved more than six years later. "Maintaining a strong fighter-jet capability contributes to the safety and security of Canadians," Hogan said. "This is a large, multi-year project that requires active and ongoing management of risks and costs to ensure that the CF-35 fleet can be brought into service on time." The project's primary objective is to maintain Canada's fighter-jet capability for national defense and to fulfill international defense commitments, such as the 2% of GDP requirement for NATO countries, which Canada currently lags behind, prompting Prime Minister Mark Carney to announce a significant boost in defense spending Monday. Related articles Lockheed's F-35 jets to cost Canada 50% more than planned, Auditor General says 2 key questions to consider as U.S.-China trade talks continue in London Canada to hit NATO defense target early, Carney says
Yahoo
a day ago
- Business
- Yahoo
Cost of Canada's new US-made fighter jet fleet set to rise, watchdog says
OTTAWA (Reuters) -Canada's planned purchase of 88 Lockheed Martin F-35 fighters will cost at least 45% more than initially estimated and the project is also threatened by a pilot shortage, the country's top watchdog reported on Tuesday. Canada, seeking to replace its antiquated fleet of CF-18 jets, announced the C$19-billion ($13.89 billion) deal in January 2023. But Auditor General Karen Hogan said the final bill would be at least C$27.7 billion and could go as high as C$33.2 billion, citing factors such as foreign-exchange fluctuations and rising facilities costs. The report is another blow to a 15-year, trouble-plagued attempt by successive administrations to replace the CF-18 jets, some of which have been flying for more than 40 years. Hogan, who reports to parliament, said the Defence Ministry approach "had weaknesses, lack(ed) proactive measures to minimize the impact of potential threats, and the project did not have robust contingency plans." A shortage of pilots that the Auditor General's Office identified in 2018 is still a significant risk, she said. The construction of special facilities for the jets is three years behind schedule. Prime Minister Mark Carney ordered a review in March of the contract, in part because he said Canada relied too much on the United States for security. Delivery of the jets is scheduled to occur between 2026 and 2032. In response, Defence Minister David McGuinty said Ottawa had put in place a plan to identify all potential risks associated with the deal. "We will continue to work closely with our partners to actively manage costs throughout the duration of this project," he said in a statement. Canada announced plans to buy the U.S.-made F-35 in 2010 but a switch in governments, rule changes for aircraft procurement, as well as challenges from the pandemic triggered major delays. ($1 = 1.3680 Canadian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Calgary Herald
a day ago
- Business
- Calgary Herald
Canada's F-35 purchase plagued by cost increases and delays: AG report
Article content OTTAWA — Canada's plan to replace its aging CF-18 fighter jets with American-made F-35s is now expected to cost $27.7 billion — nearly 50 per cent more than the original estimate in 2022 — plus another $5.5 billion to achieve full operation capacity. Article content Those are some of the findings made by Auditor General Karen Hogan, who tabled a report in the House of Commons on Tuesday. Her audit focused on whether the Department of National Defence (DND) would deliver the country's fighter capability on time and on budget. Article content Article content Article content On top of the ballooning costs of the F-35s, Hogan found that the entire project in facing significant risks that could jeopardize the timely introduction of the new fleet. Article content Article content Seven years after former prime minister Justin Trudeau vowed to never buy F-35s, his government finalized an arrangement with former U.S. President Joe Biden's administration in December 2022 to buy 88 of these fighter jets by 2032. Article content The F-35s are expected to replace the outdated CF-18 Hornet fighter jets currently in use which will be gradually withdrawn from service between 2025 and 2032. Article content Amid tensions with U.S. President Donald Trump, former defence minister Bill Blair said a few months ago in an interview with CBC that the government is considering potential alternatives to the F-35 fighter jets. Article content In 2022, the government said the estimated costs for the F-35 contract were $19 billion. Hogan's report found that DND's estimates were based on 'outdated data' and had instead been gathered during the competitive process for acquiring the F-35s in 2019. Article content Article content 'We found that the department was not using the annual 2022 estimates produced by the Joint Strike Fighter Program Office that were more up to date than 2019, which were showing that costs of the aircraft had already increased substantially,' read the report. Article content It also adds that DND was only 50 per cent confident in its 2022 estimate, meaning that the department expected the cost to either be greater or stay the same in equal measure. Article content According to the auditor general's report, DND's most recent estimates show that the cost of the program has increased 46 per cent, or $8.7 billion, between 2022 and 2024, for a total of $27.7 billion. The increase is due to global factors, including rising inflation. Article content However, the report noted that the amount did not include other elements 'needed to achieve full operation capability,' such as infrastructure upgrades or advanced weapons which would add at least another $5.5 billion to the total cost of the F-35 program.
Edmonton Journal
a day ago
- Business
- Edmonton Journal
Canada's F-35 purchase plagued by cost increases and delays: AG report
Article content OTTAWA — Canada's plan to replace its aging CF-18 fighter jets with American-made F-35s is now expected to cost $27.7 billion — nearly 50 per cent more than the original estimate in 2022 — plus another $5.5 billion to achieve full operation capacity. Those are some of the findings made by Auditor General Karen Hogan, who tabled a report in the House of Commons on Tuesday. Her audit focused on whether the Department of National Defence (DND) would deliver the country's fighter capability on time and on budget.
Ottawa Citizen
a day ago
- Business
- Ottawa Citizen
Canada's F-35 purchase plagued by cost increases and delays: AG report
OTTAWA — Canada's plan to replace its aging CF-18 fighter jets with American-made F-35s is now expected to cost $27.7 billion — nearly 50 per cent more than the original estimate in 2022 — plus another $5.5 billion to achieve full operation capacity. Article content Those are some of the findings made by Auditor General Karen Hogan, who tabled a report in the House of Commons on Tuesday. Her audit focused on whether the Department of National Defence (DND) would deliver the country's fighter capability on time and on budget. Article content Article content Article content On top of the ballooning costs of the F-35s, Hogan found that the entire project in facing significant risks that could jeopardize the timely introduction of the new fleet. Article content Article content Seven years after former prime minister Justin Trudeau vowed to never buy F-35s, his government finalized an arrangement with former U.S. President Joe Biden's administration in December 2022 to buy 88 of these fighter jets by 2032. Article content The F-35s are expected to replace the outdated CF-18 Hornet fighter jets currently in use which will be gradually withdrawn from service between 2025 and 2032. Article content Amid tensions with U.S. President Donald Trump, former defence minister Bill Blair said a few months ago in an interview with CBC that the government is considering potential alternatives to the F-35 fighter jets. Article content In 2022, the government said the estimated costs for the F-35 contract were $19 billion. Hogan's report found that DND's estimates were based on 'outdated data' and had instead been gathered during the competitive process for acquiring the F-35s in 2019. Article content Article content 'We found that the department was not using the annual 2022 estimates produced by the Joint Strike Fighter Program Office that were more up to date than 2019, which were showing that costs of the aircraft had already increased substantially,' read the report. Article content It also adds that DND was only 50 per cent confident in its 2022 estimate, meaning that the department expected the cost to either be greater or stay the same in equal measure. Article content According to the auditor general's report, DND's most recent estimates show that the cost of the program has increased 46 per cent, or $8.7 billion, between 2022 and 2024, for a total of $27.7 billion. The increase is due to global factors, including rising inflation. Article content However, the report noted that the amount did not include other elements 'needed to achieve full operation capability,' such as infrastructure upgrades or advanced weapons which would add at least another $5.5 billion to the total cost of the F-35 program.
