Quebec aerospace industry expects benefits from Boeing jet deal

Wed Nov 23, 2016 5:19pm EST
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By Allison Lampert

MONTREAL (Reuters) - Aerospace companies in the Canadian province of Quebec will likely benefit from in-service support contracts linked to a federal government purchase of 18 Boeing Co BA.N Super Hornets, an industry group said on Wednesday.

On Tuesday, Canada's Liberal government said it would initiate talks with Boeing to soon acquire Super Hornets as a stop-gap measure while preparing an open, five-year competition to replace its aging fleet of fighter jets.

While the terms of a Super Hornet deal are not yet clear, the purchase could generate new in-service support contracts for industry in Canada's aerospace hub of Quebec, where CF-18s are now maintained, said Suzanne Benoit, director general of Aero-Montreal.

"Quebec is well positioned for all aspects of services support and other specialized areas related to this type of aircraft," Benoit said in a statement.

Boeing has said it is committed to giving Canadian companies contracts as a result of the deal.

One aerospace analyst suggested Montreal-headquartered CAE Inc CAE.TO would likely benefit as it could partner with Boeing to deliver training.

Simulator-manufacturer CAE works with L-3 MAS, a Quebec-based division of L-3 Communications Holdings Inc LLL.N, to provide in-service support for the aging CF-18s.

CAE spokeswoman Pascale Alpha said in an email the company wants to provide support for both the existing CF-18 fleet, and future Super Hornets aircraft.   Continued...

Boeing facilities are seen in Los Angeles, California, U.S. April 22, 2016. REUTERS/Lucy Nicholson/File Photo