Premier slams potential fighter jet purchase

Hey there, time traveller!
This article was published 22/11/2016 (3602 days ago), so information in it may no longer be current.

Premier Brian Pallister blasted a federal government plan Tuesday to consider acquiring 18 new Boeing-made Super Hornet fighter jets, saying it would have “a severe negative impact” on Manitoba.

Pallister was reacting to a report the Liberal government will “explore the acquisition” of the Hornets on an interim basis until it can decide on a permanent replacement for the country’s aging fleet of fighter planes.

The move would deal a blow to the local aerospace industry, the premier said, naming Magellan as one of the local companies impacted.

“I’m very concerned in respect of the actions that have been taken by the federal government today,” he told reporters. “It will have a severe negative impact on the province of Manitoba.”

Pallister said the federal move is a departure from previous public commitments by Ottawa to Manitoba’s aerospace industry.

“Through additional research and dialogue we will be pursuing a course of action on this, but we’re not impressed or happy with the announcement this morning,” he said.

The Winnipeg division of Magellan Aerospace is the largest Canadian structural supplier to Lockheed Martin’s F-35 Joint Strike Fighter. It has invested tens of millions of dollars in a production facility specifically to produce horizontal tail assemblies for the conventional take-off and landing variant of the F-35.

Earlier this month it received a two-year extension on its contract with BAE Aerospace, the major supplier to Lockheed Martin, that will mean about $70 million in revenue for Magellan. The company had anticipated producing about 1,000 horizontal tail assemblies over the lifetime of production of the F-35, generating about $2 billion in revenue.

Magellan has about 150 people employed in the F-35 work and company officials have said that number could triple if it remains in the supply chain and as production ramps up. 

But Scott McCrady Magellan’s corporate F-35 program director and the chairman of the Canadian JSF Industrial Group has said in the past that future work will become uncertain were the Canadian government to decide not to buy the F-35.

Tuesday afternoon, he said, “Honestly, we are still figuring it out. But we have a very good relationship with our customer. There are contracts in place and we expect them to be honored and expect to honour our commitments but we do not really know what is coming.”

An official who works in the aerospace industry in Manitoba who spoke on condition his name not be used, said, “Eventually Lockheed Martin and BAE are going to say if the Canadian government makes the choice not to go with F-35 they will pull out work from Magellan… not tomorrow, not for a number of years perhaps, but eventually they would. That would have have impact.”

But Winnipeg could also potentially benefit from the purchase of Boeing-made Super Hornets. Boeing has its largest Canadian presence in Winnipeg, with about 1,500 employees — out of a total of 2,000 in Canada — making about 600 different parts for the entire line of Boeing commercial jets.

Boeing also has a good track record of generating industrial regional benefits in Canada. It is in the middle of $2.9 billion worth of spending in Canada after the country’s recent purchase of five Boeing C-17 Globemasters.

Pallister planned to hold discussions Tuesday with local aerospace officials. He said he also intends to meet with local unions who will be affected by the federal announcement.

“There were real plans in place here for expansion and job opportunities in Manitoba that I think all of us were very excited about,” the premier said.

“I’m concerned also about the nature of how this purchase was done. I think the federal government has left itself open to criticisms in respect of the lack of transparency and openness and in respect the lack of intelligent use of the market and available options,” he said.

Pallister said he would be making his views known to Ottawa.

“We’ll have more to say in the next few hours,” he said Tuesday afternoon.

— with files from the Canadian Press

larry.kusch@freepress.mb.ca

martin.cash@freepress.mb.ca