SAAB and CAE have announced a proposed domestic training, flight-simulation and support arrangement that would take effect if the federal government decides to purchase Gripen E fighters, a move aimed at keeping key operational know‑how in Canada.
What the partnership would do
The two companies say the plan is intended to ensure that mission systems information remains in Canada and that Ottawa would be able to independently support future updates and sustainment work. The proposal is presented as an alternative to relying solely on foreign providers for training and long‑term maintenance.
"In addition, the partnership would provide Canada with the capability to independently support future mission system enhancements and upgrades, strengthening Canada’s operational sovereignty and long‑term sustainment capacity," the companies said in a joint statement.
The announcement comes against the backdrop of a broader procurement file. Ottawa signed a $19‑billion agreement in 2022 to buy up to 88 F‑35 jets from Lockheed Martin, with an initial $7‑billion purchase order covering 16 aircraft. That program is under federal review, launched in March 2025.
Implications for Ottawa and the defence sector
- Saab finished second in the original competition to replace CF‑18s and has been lobbying federal officials to consider a mixed fleet.
- CAE, headquartered in Montreal, already has experience building simulators and has past ties to Lockheed Martin for F‑35 simulation work.
- Saab has suggested a Canadian production role for Gripen could create substantial employment, though the company’s job estimates have not been independently verified.
For Ottawa, the proposal foregrounds two policy choices: whether to proceed with the F‑35 fleet as planned, or to adopt a mixed approach that would add Gripen aircraft alongside F‑35s. A mixed fleet could complicate logistics and training but might broaden domestic industrial participation if Canadian companies take on production, simulation and sustainment roles.
| Item | Figure |
|---|---|
| Planned maximum F‑35s | 88 |
| Initial F‑35 purchase order | $7‑billion (16 aircraft) |
| Contract value signed in 2022 | $19‑billion |
Officials in Ottawa have not given a timeline for concluding the review. In the meantime, Saab’s outreach and the CAE arrangement are part of a broader industry effort to make the economic and sovereignty case for alternative or complementary suppliers.
Any decision to adopt Gripen aircraft, or to pursue a mixed‑fleet model, would require federal evaluation of operational compatibility, lifecycle costs and industrial benefits. For residents and workers in the national capital region, outcomes could influence local contractors, simulation and maintenance jobs, and long‑term defence spending priorities.
As the review proceeds, federal announcements will be closely watched for details on how Ottawa intends to balance operational requirements with domestic industrial participation.
