Exclusive: Airbus and Boeing indicate they could withdraw from the race for Canadian fighter jets – sources

OTTAWA (Reuters) – Airbus SE and Boeing Co may withdraw from a call for tenders to provide Canada with new fighter jets, saying the competition was falsely turned to Lockheed Martin Corp, two informed sources said on Monday. situation.

The three companies competing with the Lockheed Martin F-35 have already complained about the way the competition is organized and have expressed concern that some specifications clearly favor the US company, industry sources said in recent weeks.

Next week, the government must issue the so-called call for proposals – the final list of requirements – for the 88 new planes it's willing to buy. The contract is worth C $ 15 billion ($ 11.5 billion) to C $ 19 billion. The planes are to be delivered between 8:25 pm and the early 2030s.

Boeing and Airbus have officially written to Ottawa expressing their concerns about the current requirements, said two sources close to the case who refused to be identified given the sensitivity of the situation. The fourth bidder is Swedish Saab AB.

Pat Finn, the top procurement official at the Ministry of Defense, confirmed that one of the four companies had sent an official letter but gave no details. The last RFP is expected by July 17 and changes are still under review, he said.

"We continue to engage all four," he said during a phone interview. "We had some comments (such as)" If changes are not made to such a place, we would frankly consider not bidding. "

"We are looking at them very seriously. I can not say that we will make all the changes, but as far as we know, we continue to have four candidates in the race. "

Airbus declined to comment. Boeing has not responded to a request for comment.

For almost 10 years, Canada has been trying in vain to purchase spare parts for its aging F-18 fighter aircraft. In May, Ottawa changed the rules to allow Lockheed Martin to submit an offer, prompting Boeing to make the unusual decision to publicly announce that he was surprised.

"Anyone who is not Lockheed Martin has expressed a very strong point of view," said one source. "We were pretty clear with the government to say that it was not a request for proposals that lent our participation."

At least one company has expressed dissatisfaction that the requirements insist on the ability to conduct targeted strikes abroad, an F-35 force, the sources said.

Prime Minister Justin Trudeau's government insists that competition is not rigged. Finn said the Ministry of Defense had also changed the requirements at the request of Boeing, Airbus and Saab.

Canada is part of the international consortium that developed the F-35. The former Conservative government had announced in 2010 that it would buy 65 jets, but then rescinded the decision, causing delays of several years.

Trudeau came to power in 2015 vowing not to buy the F-35 because it was too expensive, but Ottawa has since relaxed its lineup.