Canada Awards $1.5B in Long-Term Support Contracts for CC-330 Husky Fleet
Event summary
- Canada awarded three long-term support contracts for the CC-330 Husky fleet, totaling $1.5B.
- L3Harris MAS Inc. received two contracts worth $735M and $366M for maintenance and materiel support.
- Airbus Defence and Space S.A. received a $374M contract for original manufacturer support services.
- Contracts aim to ensure fleet operational readiness and contribute to Canada's NATO 2% defence spending target.
- Expected to create and maintain 720 jobs and contribute $90M annually to Canada's GDP.
The big picture
The contracts align with Canada's Defence Industrial Strategy, aiming to strengthen domestic industrial growth and ensure the aerospace and defence sectors can sustain key military capabilities. This move is part of a broader effort to modernize the Canadian Armed Forces and meet NATO's defence spending targets. The investments also reflect a strategic focus on building a resilient defence supply chain and creating high-value jobs in the aerospace sector.
What we're watching
- Execution Risk
- Whether L3Harris and Airbus can deliver on the long-term maintenance and support commitments without delays or cost overruns.
- Industrial Policy
- How the Industrial and Technological Benefits Policy will drive economic value and innovation in Canada's aerospace sector.
- Strategic Capabilities
- The pace at which the CC-330 Husky fleet will enhance the Royal Canadian Air Force's operational readiness and strategic capabilities.
