Calgary-based aerospace company awarded $211M CF-18 fighter jet contract

Aerospace and defence company, Arcfield Canada Corp., which is headquartered in Calgary, is being awarded a contract up to $211M by the Department of National Defence (DND) to support Canada’s fleet of CF-18 fighter jets.

The company is hosting a ceremony Thursday at its location in northeast Calgary, which will include Calgary-Skyview MP George Chahal, Calgary mayor Jyoti Gondek, members of the military and some business partners.

Arcfield has worked with Canada’s Armed Forces and the Royal Canadian Air Force (RCAF) for more than 30 years, serving as the contractor for the CF-18 Avionics Optimized Weapon System Support program, providing in-service support, logistics, and repairs to the fight jets.

“Through this contract, Arcfield Canada will continue to help sustain Canada’s fleet of CF-18 fighters,” the Government of Canada said in a news release.

“In particular, Arcfield Canada will continue to support the CF-18 fleet’s Avionics weapons systems, supply parts as needed, and provide end-to-end supply chain services.”

The project will support skilled jobs in Calgary and economic development for Alberta and Canada, according to the government.

"What this means is that Calgary is a centre that has a lot going on. There are people that don't know, we are in the aerospace sector," Gondek said.

"The aerospace industry for us is one of those key sectors that we are focused on," said Brad Parry, Calgary Economic Development president and CEO.

"We see the opportunity for us to build that ecosystem to become that hub from a global perspective."

The contract will create or sustain 370 high-skilled jobs annually for the Canadian industry and partners, and input $41 million each year into Canada’s GDP over a 10-year period.

“This major investment in Calgary’s Arcfield Canada will support Canada’s world-class defence and aviation industry, sustain good jobs for Albertans and Canadians, and ultimately, ensure that our Royal Canadian Air Force’s fighter fleet can meet its operational commitments,” Canada’s Minister of Defence Bill Blair said in a news release.

The funding will help keep Canada’s F-18 fighter fleet operational until their replacements, F-35 jets, are fully operational, as expected in 2032.

The contract is for an initial five-year period, with five subsequent one-year options.

“By investing in a trusted Calgary company, our government is supporting good, skilled jobs for Albertans, and ensuring that the women and men of the Royal Canadian Air Force will have the tools that they need to do their jobs,” Calgary Skyview MP George Chahal said in a news release.

The air force currently has 89 operational CF-18 jets in its fleet.

"We're very, very happy. There was never any doubt in my mind really that we were going to win because we have been doing this for so long," said Jacques Comtois, Arcfield Canada vice-president.

"The future, because 10 years is a fairly short period of time in our business, where we start to look further than that, and that's why we are very active now to be ready for the F-35," Comtois said.

A CF-18 fighter jet is seen flying in this undated file image. (Source: Royal Canadian Air Force)

Canadians worried about defence

The announcement comes as a new public opinion survey reveals more Canadians are concerned about the state of Canada’s military.

Data from the Angus Reid Institute shows 29 per cent of Canadians said that Canada’s military preparedness and the country’s presence on the world stage is the top political priority, up 12 per cent from 2015.

In addition, more than half of respondents (53 per cent) believe Canada should increase its spending level to two per cent of GDP or beyond, 30 per cent would maintain the current level which is 1.38 per cent of GDP, and 16 per cent want to see it decreased.

The non-profit’s analysis shows that former President Donald Trump’s recent threats, that if re-elected his government would no longer defend NATO allies that he believes are underspending on defence, is also playing a factor in Canadians' sentiments on national defence.

“Overall, support for spending two per cent of GDP on defence rises from 53 to 65 per cent when Trump’s hypothetical is considered,” Angus Reid said in the post.

The Angus Reid Institute conducted an online survey from Feb. 28 to 29, among a representative randomized sample of 2,427 Canadian adults. The data carries a margin of error of +/- two percentage points.