Stealth fighter program a potential opportunity for Bombardier as defence business grows, CEO says

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeNewsTransportationAirlinesStealth fighter program a potential opportunity for Bombardier as defence business grows, CEO saysCanada granted observer status to international jet development project You can save this article by registering for free here. Or sign-in if you have an account.Bombardier CEO Éric Martel speaks at a conference earlier this year. Photo by Allen McInnis/PostmediaCanada’s new status as an observer to an international stealth fighter development program could present an opportunity for Bombardier Inc. to learn, contribute expertise and ultimately enter a new segment of the defence business, the aerospace company’s chief executive said this week.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Account“New technologies are being developed, and it’s of interest for us to … see if we can have a role in the future,” Éric Martel, whose Montreal-based company primarily builds and services business jets but has been expanding into defence, said on a conference call Thursday.“Bombardier could have an interest in … providing engineering resources and support to the program, and learning from this, and then after, if ever opportunities arise that are of interest, we could definitely get into this sphere.”Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againOn July 21, Canada was given observer status in the Global Combat Air Programme, whose participants include Italy, Japan and the United Kingdom. The GCAP program was launched in 2022 and aims to build a sixth-generation supersonic stealth fighter by 2035 to replace defence aircraft such as the Eurofighter Typhoon and Japan’s Mitsubishi F-2.In a joint statement, the four countries said Canada will be given enhanced insight and an opportunity to deepen its understanding of the program’s capabilities and industrial framework, as well as the related security requirements and wider partnering opportunities.“For Italy, Japan and the U.K., Canada’s involvement will also support greater alignment of strategic priorities and deepen mutual understanding of future combat air ambitions, thereby strengthening global security,” the statement said.Martel told analysts on the conference call that momentum is building in Bombardier’s defence business, with strong and sustained customer interest around the world and a growing pipeline.“The relationships we have built in key regions over many years continue to create opportunities across both our business aviation and defense activities,” he said.Bombardier was given an international lift earlier this month when NATO announced plans to acquire up to 10 GlobalEye early warning surveillance systems from Saab AB. The GlobalEye is built on a Bombardier 6500 executive jet augmented by Saab radar and sensors.In a further sign of the momentum in the company’s defence division, Martel said he dispatched a team this earlier this week to scout Canadian locations for a facility that would mirror the defence operations the company has established in the United States. Bombardier Defense is headquartered in Wichita, Kansas, a site that includes a special-mission aircraft modifications and maintenance facility and an expert flight test centre.“It’s all about having the people and the talent available, so we’re looking at establishing ourselves somewhere in Canada, a mirror operation of what we do,” Martel said.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.The Canadian government has held talks with Saab about potentially acquiring some of the company’s Gripen fighter jets, with the condition that they would be built in Canada, but Martel said that remains a hypothetical for now. Still, Bombardier could benefit if that happens, he said.“It makes a lot of sense. We build the plane, we know the plane more than anybody else,” Martel said.“Saab has been a long-time partner. If they would need help, I think we would be helping.”He said that Bombardier is not the only company in Canada that could help build Gripen jets, but it is unique in its ability to handle large-scale assembly.“If there is part of that assembly, you know, a major structure that we’re the only one capable of doing in the country, and they want to be in the country, we could definitely support them,” he said.Bombardier’s revenue grew to $2.15 billion in the second quarter, up six per cent from a year earlier, as the company delivered 32 aircraft. Adjusted earnings (before interest, taxes, depreciation and amortization grew to $325 million, up nine per cent from a year earlier.“Having reached the midpoint of 2026, business aviation has performed strongly, with most industry metrics remaining positive and indicating future growth,” the company said in its financial report. “Despite challenging global conditions, market optimism in the outlook of the business aviation industry remained resilient in the second quarter.”Bombardier reduced debt by $1.1 billion through debt redemptions in the first half of the year, while refinancing transactions extended debt maturities so no long-term debt is maturing until November 2030. Available liquidity of approximately $1.9 billion will, among other things, allow for continued investments in services and defence, the company said.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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