Canada SLASHES F-35 Order by Two Thirds – Replaces 60 American Jets With Swedish Gripens

OTTAWA — Canada is dramatically scaling back its planned purchase of American F-35 fighter jets, replacing roughly two-thirds of the order with Swedish Gripen aircraft to be assembled domestically in Montreal.

The decision marks a significant shift in Canada’s defense procurement strategy and reflects broader efforts to diversify away from sole reliance on United States equipment.

Order Reduction Confirmed

Under the original 2023 agreement, Canada committed to acquiring 88 F-35A Lightning II stealth fighters from Lockheed Martin. However, only the first 16 aircraft were covered by a binding production contract. The remaining 72 jets were subject to future decisions.

The government is now moving toward a mixed fleet consisting of approximately 30 F-35s and 60 Gripen fighters, according to reports citing defense officials.

Gripen Offer Proves Attractive

Saab of Sweden has proposed building the Gripen E aircraft in Canada with full technology transfer, sovereign maintenance capabilities and domestic final assembly. The offer includes the creation of a Canadian research and development center for future upgrades.

The Gripen is significantly cheaper to operate than the F-35, with estimated flight-hour costs between $7,000 and $10,000 compared to $30,000-$40,000 for the American jet. It is also designed for dispersed operations from short, austere runways, making it particularly suitable for Canada’s Arctic requirements.

Broader Defense Pivot

The fighter jet decision fits into a clear pattern of diversification. Canada recently selected Saab’s GlobalEye surveillance aircraft over Boeing’s Wedgetail. It is also advancing negotiations with Germany and Norway for Type 212CD submarines under a potential shared fleet arrangement.

These moves come amid ongoing trade tensions with the United States and a strategic emphasis on greater defense sovereignty.

Sovereignty and Control

A key advantage of the Gripen is full Canadian control over software upgrades and maintenance, eliminating concerns about potential foreign “kill switches” in the supply chain. Saab’s proposal includes extensive job creation, with estimates ranging from 6,000 to 12,600 positions over the program’s life.

Arctic Operational Needs

The Gripen’s design aligns with Canada’s security priorities in the rapidly changing Arctic environment. Its electronic warfare systems were developed to counter advanced air defense networks, and its ability to operate from road bases with minimal support infrastructure offers operational flexibility the F-35 cannot match in remote northern conditions.

Economic and Industrial Benefits

Domestic assembly in Montreal would transform the procurement from a simple purchase into a long-term industrial partnership. Saab has highlighted the potential for Canada to become a manufacturing hub, including possible future production for Ukraine.

The mixed fleet approach allows Canada to retain advanced stealth capabilities through the F-35 while gaining cost efficiency and sovereignty through the Gripen.

Political and Timing Considerations

The official announcement is expected after the U.S. midterm elections to avoid unnecessary diplomatic friction. However, defense officials indicate the core decision has already been made, with timing focused on managing bilateral relations.

Lockheed Martin’s Response

Lockheed Martin has emphasized the F-35’s stealth advantages and its role in supporting approximately 4,500 Canadian jobs through global supply chain participation. The company projects $15.5 billion in industrial benefits through 2058.

Nevertheless, the shift represents a notable setback for American defense exports to a longtime ally.

Strategic Implications

The move underscores Canada’s determination to pursue greater strategic autonomy. By reducing dependence on any single supplier, Ottawa aims to strengthen its defense posture while maintaining interoperability with NATO partners.

The Gripen’s selection also opens doors to deeper collaboration with European defense industries.

Future Fleet Composition

The final fleet mix of roughly 30 F-35s and 60 Gripens would provide a balanced capability set. The F-35s would deliver high-end stealth and network-centric warfare advantages, while the Gripens offer affordable, maintainable platforms optimized for northern operations.

Broader Context

This decision follows years of debate over Canada’s fighter replacement program. The original sole-source selection of the F-35 faced criticism over cost, sovereignty and industrial benefits.

The current approach attempts to address those concerns through competition and domestic production.

Industry Reaction

Canadian aerospace companies have welcomed the potential for local assembly and technology transfer. The plan could position Canada as a more significant player in global defense manufacturing.

Challenges Ahead

Significant work remains on contract negotiations, industrial agreements and regulatory approvals. Budget considerations and integration into the existing Royal Canadian Air Force structure will also require careful management.

A Defining Shift

Canada’s pivot on fighter jets represents more than a procurement decision. It signals a broader reassessment of defense relationships in an era of shifting global alliances and supply chain vulnerabilities.

The country is choosing a mixed fleet that balances capability, cost and control.

Looking Forward

If implemented, the plan would reshape Canada’s air force for decades and strengthen its defense industrial base. The first Canadian-assembled Gripens could roll off Montreal production lines by the early 2030s.

The decision highlights how traditional alliances are evolving as nations seek greater strategic flexibility in an uncertain security environment.