🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Boeing and Bombardier Vie for Canada's Multi-Mission Aircraft Contract

EditorNikhilesh Pawar
Published 28-11-2023, 12:26 am
© Reuters.

As Canada seeks to replace its aging CP-140 Aurora fleet, the aerospace industry is abuzz with speculation over whether Boeing (NYSE:BA) or Bombardier (OTC:BDRBF) will secure the lucrative contract. The debate hinges on the merits of Boeing's P-8A Poseidon, which Ottawa acknowledges fulfills all requirements for the Canadian Multi-Mission Aircraft initiative, and Bombardier's proposed technology-forward aircraft, developed in partnership with General Dynamics (NYSE:GD).

The CEO of Heroux-Devtek, a company within Boeing's established Canadian supply chain that includes 81 suppliers, has praised Poseidon for its operational readiness. Meanwhile, Bombardier has been actively lobbying for open competition, emphasizing the economic benefits of its aircraft, as outlined in a PwC report it commissioned. The report suggests that Bombardier's contract could boost Canada's GDP by $2.8 billion and create over 22,650 jobs.

Boeing counters with a study forecasting nearly $10 billion in economic activity stemming from its contract. Despite Boeing’s recent production challenges, industry experts and companies like KF Aerospace support Poseidon for its proven performance in allied operations. StandardAero is optimistic about the potential maintenance of Poseidon engines, indicating a vote of confidence in Boeing’s capability to overcome past issues.

Political leaders, including Ontario's Doug Ford (NYSE:F) and Quebec's Francois Legault, have called for fairness in the bidding process. An analysis from McGill University highlights the urgency of the situation, pointing to the CP-140's looming 2030 retirement deadline and the anticipated maintenance challenges.

As the competition intensifies, both aerospace giants are showcasing their strengths to win over Canadian decision-makers. The outcome of this bidding war will not only shape Canada's military capabilities but also have significant economic implications for the country's aerospace industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.