Bombardier deal links military airlift upgrade to Canadian aerospace jobs and long-term spend
Ottawa is committing $753m to six new Bombardier Global 6500 jets, an early test of Canada’s new Defence Investment Agency and a notable signal on long-term defence and aerospace spending that markets and asset owners will track.
According to Bloomberg, the Royal Canadian Air Force ordered six Global 6500 aircraft from Bombardier Inc. in a deal valued at about $753m for multi‑role missions, with the contract covering training, maintenance and military modifications.
Bombardier pegs about $400m of that value to the aircraft themselves, with the rest tied to services and upgrades.
BNN Bloomberg reports that the jets will replace the Royal Canadian Air Force’s remaining CC‑144 Challenger aircraft, which currently move VIPs such as the prime minister and Governor General.
CBC News says the new aircraft will also handle evacuations, disaster relief, security and humanitarian missions, expanding their role beyond executive transport.
The contract includes an option for Ottawa to buy four additional jets if it needs more capacity.
The $753m package covers production, training for aircrew and maintenance personnel, and any required military modifications.
Reports that Bombardier will build and maintain the jets in Canada, with more than 60 companies participating.
The federal statement cited by CBC News says the project will create hundreds of direct and indirect jobs in engineering, assembly and maintenance, and support Canada’s aerospace industry by advancing research and development and strengthening the domestic supply chain.
BNN Bloomberg says Ottawa expects the first Global 6500 to be delivered by summer 2027 and to be in service by the end of that year.
CBC News similarly reports that the fleet will not reach full operational capability until late 2027.
Bloomberg reports that Bombardier’s share price rose as much as 4.5 percent in Toronto after the announcement, trading at $221.58 in the afternoon session.
Canada’s latest federal budget pledged $82bn over five years for the military to replace aging weaponry, raise soldiers’ pay and support defence and security businesses, placing the Global 6500 order inside a larger, multi‑year capital programme.
BNN Bloomberg reports that this airlift procurement is among the first files handled by the new Defence Investment Agency, which now oversees large military purchases.
According to CBC News, the DIA aims to streamline defence procurement by cutting duplicative approvals and red tape while giving industry more clarity on Ottawa’s plans.
Bloomberg adds that the agency, led by former Royal Bank of Canada executive Doug Guzman, is also leading a planned multibillion‑dollar Arctic satellite system with Canadian firms Telesat Corp. and MDA Space Ltd.
Bombardier remains active across defence and government markets, including talks with Sweden’s Saab AB about building Gripen fighter jets in Canada and ongoing collaboration on GlobalEye surveillance aircraft, which are assembled in Canada before radar and sensors are installed in Sweden.
The political baggage around government jets has not disappeared, but it now sits in the background of a much larger industrial and defence‑spending story.
BNN Bloomberg reports that use of the CC‑144 Challenger series has long been politically charged, with opposition parties describing their use by government members as wasteful.
CBC News points out that this new order follows earlier decisions to retire and then add Challenger aircraft, and highlights the rising cost of chartering private aircraft when government options fall short of mission needs.
