Defence minister calls out Boeing
Aerospace firm not acting as ‘trusted partner’
Defence Minister Harjit Sajjan suggested Wednesday that Boeing, the U.S. aerospace firm from whom the government is considering purchasing billions of dollars worth of fighter jets, can no longer be considered a trusted partner. And though he stopped short of cancelling the Liberal government’s plan to purchase 18 Super Hornet fighters from Boeing, Sajjan said the company has damaged its relationship with Canada.
Boeing has complained to the U.S. government that Canadian aerospace firm Bombardier is receiving subsidies, allowing it to sell its C-Series aircraft at belowmarket prices.
Boeing convinced the U.S. Commerce Department and International Trade Commission to launch an investigation into Bombardier.
“It is not the behaviour of a trusted partner,” Sajjan told industry representatives Wednesday at the CANSEC defence trade show in Ottawa. He called on Boeing to withdraw its complaint, saying Canada requires “trusted industry partners.”.
Foreign Affairs Minister Chrystia Freeland also recently chastened Boeing for its actions. But industry representatives consider Sajjan’s dressing down of the company in such a high-profile forum unprecedented.
The Liberals are now reviewing the Super Hornet jet proposal and whether they should continue with it.
“We are continuing our discussions with the U.S. government and we continue to do that,” Sajjan said. Canada, however, is no longer talking to Boeing officials.
Canada has not yet signed the deal to acquire the Super Hornets. It was expected to do so by the end of this year or early next. If it proceeds, the Super Hornet purchase is expected to cost between $5 billion and $7 billion.
It is now unclear when the deal might proceed, or if it will be scuttled if Boeing does not withdraw its complaint against Bombardier.
Other aerospace firms are in the wings ready to offer Canada new aircraft, including Lockheed Martin with its F-35 fighter jet.
Sajjan said Canada has had a good relationship with Boeing over the decades but is now reviewing all procurement with that company.
On Wednesday the Boeing team used the defence industry trade show to highlight the company’s long-term commitment to Canada.
And later in the day, the firm issued a response to Sajjan’s criticism.
“We heard Minister’s Sajjan’s comments at CANSEC,” Boeing spokesman Scott Day noted in an email.
“Per the Minister’s request to withdraw the petition, this is a commercial matter that Boeing is seeking to address through the normal course for resolving such issues.”