Canada to Open Negotiations with Lockheed Martin For F-35 Jets Purchase

The Canadian government has selected Lockheed Martin, manufacturer of the F-35 fighter jet, as its preferred bidder in a $19-billion fighter jet procurement project effectively shutting the door on Sweden's Saab, maker of the Gripen jet.

Canadian newspaper The Globe and The Mail reported quoting anonymous sources that announcement on the selection of Lockheed Martin is expected shortly. This means that Canada will start negotiating with Lockheed Martin on a contract for the combat aircraft.

If negotiations are successful, Canada could start taking delivery of new fighters as early as 2025, the source said. Should negotiations fail, Canada would turn to the second-place bidder: Sweden’s Saab AB which makes the Gripen fighter.

Canada will likely seek offsets, industrial participation and other incentives in exchange for awarding a contract to the preferred bidder.

Saab has earlier blamed "political influence" when Finland selected the F-35 in place of the Gripen and was expecting ‘impartial’ Canada to buy Gripen Fighter Jet.

While the Canadian government had previously resisted American hardsell to buy the F-35, which it found expensive compared to the Gripen, the war in Ukraine may have underscored the need to buy an advanced jet that will keep it ahead of the technology curve for years to come.