The federal government will officially punish Boeing Co. for its commercial dispute against Bombardier Inc. of Canada, replacing the planned order of 18 new Boeing aircraft with the purchase of up to 30 second-hand combat aircraft from the Australian army, the sources.
Government and industry sources said that the Australian agreement will be announced next week, and that the Royal Canadian Air Force needs between 28 and 30 used fighter aircraft F / A-18 to meet its international commitments.
Minister of Defense Harjit Sajjan said that Canada can not fulfill all its obligations with the North American Aerospace Defense Command (NORAD) and the North Atlantic Treaty Organization (NATO) with its current fleet of CF-18, arguing that new combat aircraft are needed before the entire fleet is replaced in the next decade.
"We are going to fill that temporary capacity gap," he told reporters on Tuesday. "I hope to make the announcement at the appropriate time."
The government's decision to buy Australian fighter jets will increase tensions with Boeing, which has repeatedly warned that billions of dollars in commercial activities in Canada are at stake in the ongoing dispute.
In September, Boeing International President Marc Allen told The Globe and Mail that the federal government should not forget that Boeing makes $ 4 billion a year in Canada, with 560 suppliers and a global impact of 17,000 jobs . .
"If Canada expelled Boeing, I think it will be deeply unfortunate for both of us, it would be a deeply unfortunate result," he said. "It has to be a two-way street, there has to be a mutually beneficial relationship so that it is one that grows, one that both parties are happy and excited."
In addition, industry sources said it remains an open question if Ottawa will save money by buying second-hand Australian aircraft that are almost as old as Canadian CF-18s.
The US Department of Defense UU He said in September that the contract for the Super Hornets could be worth up to $ 6.4-billion.
Sources said that to offer the same capabilities as 18 new Boeing Super Hornets, which were the federal government's first choice, the RCAF will need at least 10 additional second-hand combat aircraft.
A Canadian delegation traveled to Australia in August to inspect the used plane. At that time, Prime Minister Justin Trudeau and his top ministers said Ottawa would not do business with Boeing as long as he maintained a dispute with Bombardier.
Boeing filed a commercial complaint against Bombardier last April, alleging that the Canadian aircraft manufacturer used unfair government subsidies to close an important contract for 75 CS 100 aircraft with Delta Air Lines with "absurdly low" sales prices.
Commerce aligned with Boeing on rulings in September and October and imposed preliminary import tariffs for a total of 300 percent on series C aircraft. The legal process continues with the final resolutions expected by the US International Trade Commission. United at the beginning of next year.
Bombardier denies having made a mistake and says that Boeing can not prove that he was harmed by the actions of the Canadian company because he did not offer Delta any aircraft of its own.
Canada, Great Britain and Quebec, which provided support to Bombardier to launch the C Series to the market, say that their investments comply with international standards.
"Boeing is underestimating what they are addressing, not just the company but the countries." They point out, Bombardier CEO Alain Bellemare said at an investor conference in Boston last month. "Unfortunately, I think they are taking advantage of a context [political] that favors them"
In October, Trudeau said he warned US President Donald Trump that the trade dispute was blocking "any acquisition Boeing military. " It has been the standard line in Ottawa for months that Boeing, not having acted as a reliable or valuable partner, has been effectively excluded from any new federal contract.