Airbus seen winning $3B deal for search and rescue planes

The Liberal government will announce the winner of a multi-billion dollar program for new search and rescue aircraft on Thursday, even as industry sources say aerospace giant Airbus has won the deal.

The announcement was planned for Winnipeg on Thursday but, at the last minute, was changed to the Canadian Forces base at Trenton, Ont., sources say. The Airbus C-295 was selected over the C-27J built by the Italian firm, Leonardo.

The $3-billion project is divided into a contract for the acquisition of the aircraft and another contract for 20 years of in-service support.

Airbus has teamed with Provincial Aerospace, which will handle in-service support for the planes. The aircraft are also equipped with Pratt and Whitney Canada engines. CAE of Montreal will provide the training and simulators for the aircrew.

Airbus has promised to build a new training facility in Comox, B.C. for air crews.

Sources say the aircraft from both competitors were compliant in the bidding process but that Airbus edged Leonardo on price. Both firms had also promised a full package of industrial benefits for Canadian firms.

The Brazilian aerospace firm Embraer submitted a bid for its KC-390 aircraft but the plane only made its maiden flight in 2015 and is not yet in full production. Delegates pass a model of the Airbus C295 fixed wing search and rescue aircraft at a 2015 trade show.