The federal government is looking at expanding the military’s fighter fleet beyond its original plan for 88 jets, according to industry and government sources.
Negotiations are underway for the Canadian Armed Forces (CAF) to acquire a larger mixed fleet of American-made Lockheed Martin F-35s and Saab Gripen-E fighters built in Canada, the sources said.
Sources said the recently announced plan to buy the Swedish firm’s GlobalEye surveillance aircraft was a “first step” in negotiations to partner on the Gripen project. But some in the military have strong reservations with the deal, as Ottawa remains adamant that military spending needs to boost Canada’s tariff-battered industrial sector.
According to various sources, the federal government would still be looking at a fleet of 72 to 88 F-35s, even if it moves forward with the Gripen.
Several sources said Ottawa is exploring a purchase of 72 Gripens, which would create up to 9,000 jobs and be the largest defence industrial project in Canada.
Saab is continuing to refine its business plan to build Gripen fighters in Canada, notably by using the supply chain that will be put in place for the GlobalEye production, sources said.
“There could easily be a fleet of 140 aircraft,” says a source with knowledge of discussions between Saab and Ottawa.
CBC News granted confidentiality to several sources directly involved in the file to allow them to provide details on private discussions.
The federal government is in discussions to acquire Gripen-E fighter jets, which it wants to be manufactured in Canada. (TT News Agency/Henrik Montgomery/Reuters)
Discussions surrounding the Gripen are taking place in the context of a review of the F-35 purchase launched by Prime Minister Mark Carney in March 2025, in response to diplomatic and trade tensions with the Trump administration.
There is an overall sense in Ottawa that the decision on the fighter jets is firmly in the hands of Carney, who could use the fate of the F-35 program as part of negotiations over the renewal of the Canada-U.S.-Mexico Agreement (CUSMA).
Under an agreement announced in 2023, Ottawa already has a firm order for 16 F-35s, and has since started to pay for 14 additional aircraft.
The CAF is refusing to say how many CF-18s are currently at its disposal, except that there are fewer than 88. In the 1980s, Canada had a fleet of 138 CF-18s.
Military objections
There are parallels between the possible acquisition of Gripen fighter jets and the government’s move to acquire the GlobalEye Airborne Early Warning and Control (AEW&C) aircraft.
In both cases, a major selling point is the domestic production of aircraft that would be used by the CAF as well as allied countries.
Still, sources said the plan to buy the GlobalEye — to monitor the Arctic for missiles, drone attacks or enemy incursions — has been met with opposition within the Canadian military.
A government source said there has been “some resistance” within the Royal Canadian Air Force (RCAF) to the project, while industry sources say the military does not view the GlobalEye as the best available radar plane.
Other contenders were two American aircraft: the Boeing E-7 Wedgetail and the L3Harris Aeris X.
WATCH | Canada to purchase GlobalEye surveillance planes:
Canada negotiating to purchase Saab’s GlobalEye radar planes, Carney says
Speaking at the annual arms trade show CANSEC in Ottawa, Prime Minister Mark Carney announced Canada is entering negotiations with Saab to buy its GlobalEye airborne early warning aircraft. Carney said the Swedish radar planes ‘will be a key resource for Canadian Armed Forces to detect and deter threats across the Arctic.’
The military’s requirements for the AEW&C project have not been made public.
But a former deputy commander of the RCAF, who is now a lobbyist at CFN Consultants, said the military has been seeking an early warning aircraft that has a 360-degree radar capability, remains fully operational during sharp banking turns and can be refuelled in flight.
“The current version of GlobalEye in operational use has none of these capabilities,” retired major-general Colin Keiver said in a recent post on LinkedIn.
At CFN Consultants, Keiver has been working with companies such as Lockheed Martin and L3 Technologies Canada, which are in competition with Saab.
In a recent interview, Saab deputy CEO Anders Carp said the company is well aware of the Canadian military’s expectations and that the company is ready to meet them.
Overall, the GlobalEye’s sensors offer 360-degree coverage, but the main radar on top of the fuselage offers coverage in the 300-degree range, he said.
“We do have a program in place where we can place in a forward-looking and an aft-looking radar, should that be something that the customer demands,” said Carp. “And the same will go for air-to-air refuelling.”
The lesson of 2023
A Liberal source said one has to go back a few years to fully understand the government’s interest in Swedish military aircraft such as the GlobalEye and the Gripen.
In 2023, the Liberal government, then led by Justin Trudeau, offered an untendered contract to Boeing for the purchase of 16 P-8A Poseidon maritime surveillance aircraft.
At the time, Montreal-based Bombardier unsuccessfully called for a competition, wanting to make a bid to build this type of aircraft.
The controversy over the project was seen as a “lesson” for the Carney Liberals, who promised during the last federal election campaign to buy “Canadian-made” early warning aircraft, said the Liberal source.
A few months later, Industry Minister Mélanie Joly launched discussions with Saab executives at the Paris Air Show in Le Bourget, France, to purchase GlobalEye aircraft, which use the Bombardier Global 6500 jets as its main platform, as well as Gripen-E fighters.
WATCH | More about the F-35 deal:
Ottawa quietly puts down money for 14 more F-35 fighter jets
The federal government has discreetly made payments to the U.S. to potentially purchase more F-35 fighter jets than the 16 it has already ordered. CBC News has learned Ottawa has purchased components for another 14 planes.
Further discussions were held during a trip by Joly last August to Saab’s facilities in Sweden, before gaining additional momentum during a Swedish royal visit to Canada in November.
Government sources say Canada wants to achieve three objectives with its major military acquisition projects: meet the needs of the CAF, diversify its geopolitical alliances and “defend the industrial sector.”
Having reached NATO’s target of two per cent of GDP for defence spending, Canada now aims to reach four per cent of GDP by the end of the decade.
“We are moving from a regulatory approach that checks boxes to one that builds our defence industrial base with speed and scale,” Carney said as he announced the GlobalEye project last month.
Canada’s interest comes at a perfect time for Saab, which lacks manufacturing capacity in Sweden to meet demand for its military aircraft.
“I was here two years ago, and we couldn’t really see that Canada would move so fast,” said Carp. “We’re extremely proud that we’re part of this journey. And we’re also humble because we’re starting something now that will last for 30, 40, 50 or more years.”
Industry sources say there is a possibility that the North Atlantic Treaty Organization (NATO) will officially announce that it has chosen GlobalEye as its future long-range detection device in early July, which they say would have made finding a European industrial partner easier — had Canada not already acted.
Similarly, sources indicate that Canada will have to commit to acquiring Gripen-E aircraft if it wants Saab to establish a factory in the country to build aircraft not just for the Armed Forces, but also for Ukraine.
