In Surprising Move, Canada Rules Boeing Out of Finalists to Build New Fighter Planes

Public Services and Procurement Canada released a statement Wednesday announcing the final two candidates for new fighter jets for the country which did not include Boeing's Super Hornet, a move that surprised many, according to The Associated Press.

In the search to replace the CF-18 Hornet from American manufacturer McDonnell Douglas currently used by the Canadian military, the government agency reportedly informed Boeing last week their $19 billion contract proposal did not meet their requirements.

The two remaining competitors are Lockheed Martin's F-35 stealth fighter and Saab's Gripen from Sweden.

The statement didn't give an official reason for what was missing from Boeing's offer, but the close relationship between Canada and the U.S. led many to believe that the two American jets, the F-35 and Boeing's Super Hornet, would be the only real competition.

The countries share intelligence and use fighter jets to defend North American air space together frequently, something several European manufacturers saw as a disadvantage going into the search.

Airbus and Dassault, headquartered in the Netherlands and France, respectively, both backed out of the competition before it even began, citing the excessive requirements to ensure their aircraft could meet Canada's stated intelligence-sharing requirements which they believed favored American manufacturers.

The requirements include the aircraft being able to integrate with the "Two Eyes" top-secret intelligence network used by the Canada-U.S. intelligence militaries and intelligence agencies

Following the decision, Boeing released a statement expressing it was "disappointed and deeply concerned" about why their aircraft was not chosen as a finalist.

For more reporting from The Associated Press, see below.

Boeing, Canada, Super Hornet Fighter Jet
The Boeing F/A-18 Super Hornet, a twin-engine, supersonic, all weather multi-role fighter takes part in a flying display at the Farnborough Airshow, south west of London, on July 12, 2016. The Super Hornet was excluded... Adrian Dennis/AFP via Getty Images

Prime Minister Justin Trudeau's Liberal government refused to comment publicly last week, and there was uncertainty around whether the U.S. aerospace giant had been dropped from the competition to provide Canada with 88 new fighter jets.

While the statement did not say why Boeing's offer did not make the cut, the fact that one of the two U.S. companies competing for the contract failed to make the final shortlist represents a major turn of events.

"We are working with the U.S. and Canadian governments to better understand the decision and looking for the earliest date to request a debrief to then determine our path forward,″ Boeing's statement said.

In particular, both Airbus and Dassault had complained about what they saw as onerous requirements associated with adapting their aircraft — the Eurofighter and Rafale, respectively — to meet Canada's intelligence-sharing requirements.

Sweden is not a member of NATO or NORAD, the joint Canadian-American defense command responsible for protecting the continent from foreign threats.

That had prompted questions about the Gripen's compatibility with U.S. aircraft.

Both Lockheed Martin and Saab said Wednesday that they looked forward to working with the government during the final stretch of the competition.

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