Canada has finalized a $5.9 billion agreement with Boeing for the acquisition of P-8 Poseidon multi-mission aircraft, to replace Canada’s aging fleet of Aurora military surveillance planes, according to the Canadian Defence Ministry.
The deal, part of a larger C$10.4 billion ($7.7 billion) Canadian Multi-Mission Aircraft (CMMA) project, includes plans for Canada to purchase up to 16 Boeing aircraft and was signed despite calls from business jet maker Bombardier for an open competition, Reuters reported.
By signing the deal, Canada became the fifth NATO nation to select the P-8 as its multi-mission aircraft, joining eight defense partners and all FIVE EYES allies, the intelligence alliance including the United States, United Kingdom, Australia, and New Zealand.
Canada will initially acquire 14 planes, with an option for an additional two P-8s in the future, and the first delivery scheduled for 2026, Defence Minister Bill Blair said. Minister All aircraft are expected to be delivered by fall 2027 with full operational capability anticipated by 2033.
“This is a very important day for the Royal Canadian Air Force and for Boeing. The P-8 offers unmatched capabilities and is the most affordable solution for acquisition and life-cycle sustainment costs. There’s no doubt the P-8 will protect Canada’s oceans and its borders for future generations,” Boeing Canada MD Charles Sullivan said.
The P-8A is set to replace Canada’s longstanding CP-140 Aurora maritime patrol aircraft, which has been in service for more than 40 years. Canada got a go-ahead to buy the aircraft in June.
Economic benefits of the deal
The deal will also benefit the Canadian economy as a whole, with Boeing noting that it “will generate benefits of nearly 3,000 jobs and $358 million annually in economic output to Canada.”
The agreement is poised to benefit the wider Canadian economy and generate nearly 3,000 jobs and contribute approximately $358 million each year to Canada’s economic output, according to a 2023 independent study by Ottawa-based Doyletech Corporation.
“The P-8 will bolster Canada’s defense capability and readiness, and we look forward to delivering this capability to the Royal Canadian Air Force. Together with our Canadian partners, we will deliver a strong industrial and technological benefit package that guarantees continued prosperity to Canada’s aerospace and defense industry,” Heidi Grant, President of Business Development for Boeing Defense, Space & Security, said.
Quick facts
- Boeing will provide up to 16 P-8 Poseidon aircraft to Canada, with deliveries starting in 2026.
- Canada will become the fifth NATO member to fly the P-8, enhancing its defense capability.
- Canada initially acquires 14 planes with the potential for an additional 2 P-8s later
- Deliveries of the aircraft are expected to be completed by fall 2027
- Full operational readiness of the fleet anticipated by 2033
- P-8A replaces the CP-140 Aurora, in service for over 40 years.
- The P-8, derived from Boeing’s passenger designs, has almost 200 units delivered.
- In a decade of service, the P-8 has accrued over 560,000 flight hours.