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CF-18 uncertainty impacting Canadian industry

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posted on Mar, 22 2016 @ 09:01 PM
Canadian aerospace companies are feeling the uncertainty of the CF-18 replacement program. According to Magellan Aerospace, the Canadian partners in the F-35 program are facing a very real possibility of major revenue loss. For Magellan alone, revenue potential is nearly $1.5B over the program. They produce tail structures and skins, and are expected to produce 1,000 shipsets.

According to Scott McCrady, Magellan's F-35 program director, the 27 companies currently involved will lose out on revenue, and more importantly, a migration of work on the aircraft out of Canada. Currently 27 companies do work on various structures on the aircraft. To continue to receive work, and to be able to bid on later work, Canada has to remain a partner in the program. The F-35 could still be offered, depending on what they decide the requirements are to replace the CF-18, but if not, then the approaching block buy, that will see more than 450 aircraft being purchased from FY19-21 could see work moved out of Canada.

Canadian industry is missing out on strategic opportunities on the F-35 Joint Strike Fighter because of the new Ottawa government’s election promise to hold a competition for its next fighter, says Magellan Aerospace, a major Canadian supplier to the program.
Canada has paid its share of the F-35 system development and demonstration bill and continues to participate in the program with the same status, says Jeff Babione, Lockheed Martin F-35 program general manager. But if Ottawa ultimately decides against the F-35, Canadian suppliers will lose the right to bid for future work.

“Canadian companies can only bid because it is part of the consortium. You have to be in to stay in,” says Don Boitson, vice president of North America operations for Magellan. The Ontario-headquartered company produces horizontal tails for the F-35, the lift-fan vane box and transition duct for the vertical-lift F-35B and other components.

posted on Mar, 22 2016 @ 10:34 PM
a reply to: Zaphod58

All part of our illustrious child leader's plan to degrade, defund, and debase Canada's military economy and capabilities.

Jihadi (Koombyahh) Justin, Cozy Them With Coats and Hugs, Hanging on the Coat Tails of Dad Pierre Elliot Trudeau, is right on track to bankrupt Canada. Not to mention destroy Canada with his inherited multiculturalism and free spending philosophy. 29 Billion deficit announced in today's 2016 budget with some very questionable allocations.

I tried to warn everyone I knew before the election that although Harper wasn't a great choice he would have been preferable to Trudeau.

Blue Wolf

posted on Mar, 23 2016 @ 11:42 AM
Canada after all, remains a third world country.......
The USA has screwed with Canadian internal politics since FOREVER..........

posted on Mar, 23 2016 @ 11:46 AM
a reply to: bandersnatch

Lockheed is doing what just about any company would do. If you're not buying it, why should you benefit from it?

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