Quebec aerospace industry expects benefits from Boeing jet deal
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 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...