Super Hornets would cost Canada over $6B, U.S. says

It will cost Canada more than $6 billion to buy 18 American-made Super Hornet fighter jets should it decide to proceed with the purchase, the U.S. government announced Tuesday, even as a trade dispute that threatens the deal remains unresolved.

The Liberal government’s plan to buy the planes, intended as a stopgap measure until the purchase of a replacement fleet for Canada’s aging CF-18s, was thrown into question when the jet’s manufacturer, Boeing, filed a trade complaint against Bombardier over the Quebec company’s civilian passenger jets.

It is unclear whether the Super Hornet purchase will ever be completed, as Boeing has ignored Canadian government demands to drop the complaint that could see the Trump administration enforce tariffs on Bombardier aircraft being sold in the U.S.

On Tuesday, the U.S. State Department outlined for the first time the extent of the proposed deal and its cost to Canadian taxpayers.

The estimated price tag for the Super Hornet package is US$5.23 billion — or nearly $6.4 billion according to current exchange rates — according to a notice issued by the State Department. The notice of a potential sale is required by U.S. law and does not mean the sale has been concluded, the statement added.

That price goes well beyond the aircraft themselves, which are estimated to cost around US$77 million each; rather, it includes advanced targeting systems, spare parts, initial training, some maintenance, and almost 170 missiles.

Prime Minister Justin Trudeau will meet with British Prime Minister Theresa May next week to discuss the trade dispute with Boeing. May asked U.S. President Donald Trump last week to intervene in the situation, as the British government is concerned about the impact on jobs at Bombardier’s plant in Belfast, Northern Ireland.

In April, while on its way to wrapping up the Super Hornet deal, Boeing complained to the U.S. government that Bombardier was receiving government subsidies that allowed it to sell its C-Series civilian passenger aircraft at below-market prices. The U.S. Commerce Department and International Trade Commission then launched an investigation, which is ongoing.

That prompted the Liberals to start backing away from the Super Hornet deal, although federal officials acknowledged they were still talking with the U.S. government over acquiring fighter aircraft. “It is not the behaviour of a trusted partner,” Sajjan said of Boeing in a May speech to defence industry executives unprecedented in its criticisms of the company.

Marc Allen, Boeing’s president of international business, said the company took its action to ensure a level playing field in the industry. He said Boeing believes that global trade only works if everyone plays by the same rules. That wasn’t the case for Bombardier, he argued.