The deal costs more than $10 billion in total, including US$5.9 billion for the jets themselves, and the planes are expected to be delivered in 2026 and 2027.

Defence Minister Bill Blair, Procurement Minister Jean−Yves Duclos and Industry Minister François−Philippe Champagne held a press conference this afternoon to make the announcement.

Officials say Boeing’s reconnaissance plane is the only available aircraft that will meet Royal Canadian Air Force needs before the Auroras reach their retirement age in 2030.

Officials said in a media briefing today that the fleet will give Canada new capabilities in the Arctic to hunt submarines, and that allies including Norway are already flying the planes in the far North.

The officials from the Defence Department, Air Force and Procurement Department were providing the information on the condition they not be named.

The decision to go with a sole−source contract has closed the door on Quebec−based jet maker Bombardier, which had been pushing for an open bid.

A typical procurement process with an open bid would take around three to four years to complete before the planes could be purchased, officials said Thursday.

Bombardier CEO Éric Martel has argued that its plane, which is currently a prototype and slated to roll off the line in the early 2030s, would offer a cheaper and more high−tech alternative that’s made in Canada.

Officials said Boeing has also signed an agreement to provide business activities and investments in Canada equal to the value of its portion of the contract, which is $5.4 billion.

Canada’s agreement with the United States government allows it to buy up to 16 planes, though officials said the plan is to first buy 14 to meet the air force’s needs.

The new fleet will be based in Nova Scotia at Canadian Forces Base Greenwood and in B.C. at CFB Comox. The planes have a range of more than 7,000 kilometres and can be refuelled in the air using the new CC−130 Husky fleet.

This report by The Canadian Press was first published Nov. 30, 2023.

Companies in this story: (TSX:BBD.B)

The Canadian Press