OTTAWA (Reuters) – Canada has formally excluded Boeing Co from a multi-billion-dollar contract to supply 88 new fighter jets, the federal government said on Wednesday, but did not give a direct explanation.
The move means that only Lockheed Martin Corp and Sweden’s Saab AB are left in the race. Ottawa says it intends to make a decision next year on a contract that could be worth up to C$19 billion ($14.8 billion).
Reuters reported the decision to bar Boeing’s F-18 Super Hornet on Nov. 25, citing a defense source. The formal announcement came from the federal procurement ministry and did not mention Boeing by name.
Defense analysts had been certain Ottawa would exclude Saab’s Gripen plane. Unlike Canada, Sweden is not a member of NATO or NORAD, the North American defense organization.
Canada belongs to the consortium that developed Lockheed Martin’s F-35 jet, which defense sources say is the preferred choice of the air force.
The procurement ministry said it could now either decide which bidder offered the best plane or offer Lockheed Martin and Saab a chance to improve their proposals.
($1 = 1.2825 Canadian dollars)
(Reporting by David Ljunggren; Editing by Nick Zieminski and Leslie Adler)
