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: Quote) 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: Quote) 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: Quote), 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