The $753 million jet order creates Canadian aerospace jobs and tests its new defence buyer
Bombardier just landed one of the first major deals under Ottawa’s new Defence Investment Agency: a six-jet Global 6500 order worth about $753m that lifted the company’s stock as much as 4.5 percent in Toronto, according to Bloomberg.
The Royal Canadian Air Force is acquiring six Global 6500 aircraft from Bombardier Inc. to replace the remaining CC-144 Challenger fleet, in a multi‑role deal valued at about $753m, BNN Bloomberg reports.
Canada’s department of procurement described the jets as being for “worldwide utility flights and support missions such as aeromedical evacuations, disaster relief, humanitarian aid and national security operations,” as per Bloomberg.
Bombardier values the order at about US$400m based on the aircraft’s list price, with the contract also covering training, maintenance and military modifications.
CBC News reported that the federal government’s $753m figure includes production, training for aircrew and maintenance personnel, and any required military modifications.
BNN Bloomberg says Ottawa expects the first executive-style Global 6500 to arrive in summer 2027 and to be flying by the end of that year.
CBC News reported that the fleet will not reach full operational capability until the end of 2027.
The jets will be built and maintained in Canada.
The government said the work will create hundreds of direct and indirect jobs in engineering, assembly and maintenance, and involve participation by more than 60 companies.
It added that the project will support Canada’s aerospace industry by advancing research and development and strengthening the domestic supply chain.
CBC News also reported that the contract with Bombardier includes an option for four additional jets if the government decides they are needed.
The aircraft will be used to ferry government officials and foreign dignitaries, and to support evacuations, disaster relief, security and humanitarian missions.
Bloomberg noted that Bombardier’s share price climbed as much as 4.5 percent after the announcement, trading at $221.58 in Toronto mid-afternoon.
Canada’s federal budget in November pledged $82bn over five years for the military to replace aging weaponry, raise soldiers’ pay and support businesses in the defence and security sector.
The Bombardier deal is described as one of the first purchases under a new defence investment agency led by former Royal Bank of Canada executive Doug Guzman.
BNN Bloomberg reported that the airlift capability procurement is among the first files handled by the government’s new Defence Investment Agency, which manages large military purchases.
CBC News said the jets are among the first purchases under the Liberal government’s new Defence Investment Agency, which was announced in October.
The agency is tasked with consolidating procurement processes, cutting duplicative approvals and red tape, and providing the defence industry with greater clarity and certainty on government plans.
Bloomberg added wider context around Bombardier’s defence positioning, noting that the company is in talks with Sweden’s Saab AB about building Gripen fighter jets in Canada.
The firms already work together on GlobalEye early warning surveillance aircraft, which are assembled in Canada before being shipped to Sweden for installation of radar and sensors.
Bloomberg also pointed out that in 2023 the Canadian government agreed with Boeing Co. to order Poseidon military surveillance aircraft despite a competing Bombardier proposal built on a militarized version of the Global 6500 developed with General Dynamics Corp.
