BAE Systems and Bombardier have pledged to collaborate on future combat air capabilities for Canada, augmenting the country’s efforts to bolster its sovereign defense industry. The companies signed a memorandum of understanding on October 28 on the eve of Ottawa’s 2026 Canadian Aerospace Summit, but did not specify the exact programs to be covered by the collaboration.
According to UK-based BAE, areas of focus may include aircraft and mission-system design; systems integration; digital engineering and digital thread technologies; advanced manufacturing; and long-term product support, sustainment, and security. Its Canadian partner said the work will “develop complementary industry and technology capabilities that may support future combat air programs.”
The partners will now expand on the framework agreement by determining what Bombardier called “practical areas of cooperation" for "future opportunities.” The company said these will help deliver the strategic aims of Canada’s newly-formed Defence Industrial Strategy, launched in February and backed by C$1.8 billion over the next five years. According to Canadian prime minister Mark Carney, this strategy will “prioritize manufacturing and strategic partnerships with Canadian firms,” which he said will help raise the share of defense acquisitions awarded to Canadian companies to 70%.
Strengthening Canadian Defense
In July 2026, Canada joined the Global Combat Air Programme (GCAP) as the venture’s first ‘observer nation,’ alongside founding partners Italy, Japan, and the UK. GCAP is looking to develop a future crewed fighter as part of a wider ‘systems of systems’ approach, with the UK’s involvement led by BAE Systems. At the time, the government in Ottawa announced its participation would offer it “enhanced insight into GCAP and an opportunity to deepen its understanding of the program’s governance, capabilities and industrial framework,” as well as offering wider partnership opportunities.
Bombardier has also been actively enhancing its defense-related activity in Canada since its Bombardier Defense business unit was formed in 2022. In August, the Montreal-headquartered OEM announced it was searching for a location in Canada to perform modification work for its special-mission Global 6500 business jet portfolio. Should Canada formalise its intention to procure Saab’s GlobalEye, the Swedish company has already committed to establishing a production line for the Airborne Early Warning & Control (AEW&C) aircraft in Canada.
Meanwhile, uncertainty over the final makeup of Canada’s future fighter jet fleet has once again placed Saab's Gripen E in contention. Earlier this week, Saab announced that Nova Scotia-based IMP Aerospace & Defence would be responsible for establishing an in-country assembly line should Canada select the Gripen.
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