Ottawa, October 15, 2025 – The Europe Today: Canada’s federal Industry Minister Mélanie Joly has urged U.S.-based Lockheed Martin to deliver additional economic benefits if Ottawa is to proceed with its planned $27.7-billion purchase of 88 F-35 fighter jets.
In a French-language interview with Radio-Canada’s Les coulisses du pouvoir, Joly stated that without improved economic returns, the government could consider reducing the number of F-35s and supplementing Canada’s air force with Gripen-E fighter jets from Sweden’s Saab, which has offered to assemble the aircraft domestically.
Prime Minister Mark Carney has yet to finalize the contract’s future. Joly outlined two possible paths for the ongoing F-35 review, initiated in March amid a U.S.-Canada tariff dispute: securing further economic concessions from Lockheed Martin to maintain the full contract or procuring a smaller fleet of F-35s alongside Saab’s Gripens.
“Canada is contractually committed to at least 16 of the planned 88 jets. The decision ultimately rests with the prime minister, but it is my goal to maximize the benefits of this contract for Canadian industry and continue discussions with Saab,” Joly said.
While a mixed fleet could present operational challenges, Joly expressed confidence in the Canadian Armed Forces’ ability to manage it, noting that “all G7 countries have a mixed fleet.” She highlighted three priorities for Canada’s defense expansion: enhancing military capabilities, strengthening international alliances, and creating jobs in the national defense-industrial sector.
During recent parliamentary committee hearings, senior defense officials endorsed the F-35 program. Deputy Minister Stefanie Beck emphasized the strategic necessity of fifth-generation fighter jets, citing comparable capabilities in adversaries such as China and Russia. Lt.-Gen. Jamie Speiser-Blanchet, commander of the Royal Canadian Air Force, stressed the urgency of transitioning to a modern fighter fleet to mitigate threats from advanced missiles and aircraft.
Saab Canada countered that its Gripen-E jets offer rapid technological upgrades, with spokesperson Sierra Fullerton noting, “Gripen E’s technology and capabilities can be enhanced almost daily, making it a competitive alternative to generational classifications of fighter aircraft.”
Analysts have expressed caution regarding Ottawa’s leverage in negotiations. David Perry, President of the Canadian Global Affairs Institute, said Lockheed Martin could easily secure alternative buyers, while Philippe Lagassé of Carleton University noted the risks of reopening contracts with the U.S., particularly amid evolving economic and security relations.
For the time being, the Canadian Armed Forces continue preparations for the arrival of the Lockheed Martin jets. Beck confirmed that infrastructure, pilot training, and operational readiness are moving forward under the existing contract arrangements.
