{"id":807638,"date":"2026-07-17T10:27:12","date_gmt":"2026-07-17T10:27:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/807638\/"},"modified":"2026-07-17T10:27:12","modified_gmt":"2026-07-17T10:27:12","slug":"in-a-struggling-economy-canadas-aerospace-industry-is-flying-high","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/807638\/","title":{"rendered":"In a struggling economy, Canada\u2019s aerospace industry is flying high"},"content":{"rendered":"

When Airbus SE EADSY<\/a> announced its latest order for the Canadian-built A220 jet at a news conference in Mirabel, Que., this past May \u2013 a fun-loving affair attended by a beaming Prime Minister Mark Carney and cheerful employees carrying heart-shaped signs \u2013 the list of superlatives ran long.<\/p>\n

VIPs queued up to speak in an aircraft hangar bathed in blue light and proclaimed it the single biggest order to date for the airliner: A sale of 150 jets to low-cost carrier AirAsia worth US$19-billion at list prices. <\/p>\n

It was also the biggest order in history for a Canadian-made commercial airplane, eclipsing Bombardier Inc.\u2019s BBD-B-T<\/a> regional jet sales over the years, as well as all other deals.<\/p>\n

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Quebec Premier Christine Fr\u00e9chette, Prime Minister Mark Carney and Airbus Canada CEO Guillaume Chevasson look on as AirAsia CEO Tony Fernandes and Airbus Commercial Aircraft CEO Lars Wagner sign a landmark order for 150 Canadian-built A220 aircraft in May.Graham Hughes\/The Canadian Press<\/p>\n

Airbus executives called it a clear win that would anchor thousands of high-skilled jobs. Political leaders said it was proof the world\u2019s appetite for goods manufactured in Canada remains strong at a time of international trade strife and global unrest. <\/p>\n

And for the first time anyone could remember, the Prime Minister of Canada was involved in cementing the sale. Mr. Carney met personally with AirAsia chief executive Tony Fernandes to press the case for the Quebec jet, doing the kind of promotion that government leaders in the U.S. and France routinely take on but Canadians have generally shied away from.<\/p>\n

The merriment in Mirabel, when all was said and done, was maybe the most visible symbol yet of a new era for Canadian aerospace manufacturing<\/a> and maintenance. <\/p>\n

The plunge in global air travel during the COVID-19 crisis that forced planes to the ground, paralyzed production and sent lenders into a tizzy seems now to be a distant memory. In its place is a rebound in demand that shows no sign of slowing. <\/p>\n

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Bombardier CEO Eric Martel has said this is a ‘golden moment’ for the aviation industry in Canada.Ryan Remiorz\/The Canadian Press<\/p>\n

Executives at Airbus, Bombardier and other players are now dealing with record backlogs for their civil aircraft and positioning themselves for a wave of defence spending that could deliver sizeable increases in revenue and profit. <\/p>\n

If their goods remain tariff-free, if they can work through lingering supply chain and labour problems, and if Ottawa can back the industry with a more formal strategy beyond what\u2019s already been announced, business leaders say it could truly be a multi-year boom.<\/p>\n

\u201cI think it\u2019s a golden moment,\u201d Bombardier chief executive \u00c9ric Martel said in an interview. \u201cI was concerned when the geopolitical issues started, with first Ukraine and Russia and then now with Iran. But you know what? I haven\u2019t seen things slow down.\u201d <\/p>\n

Everywhere, there is evidence of growth. <\/p>\n

Airbus has doubled its workforce in Canada since 2016 and now employs more than 5,300 people in the country, its largest presence outside of Europe. Bombardier and de Havilland Inc. just broke ground on new manufacturing facilities in Montreal and Calgary respectively to bolster output. And parts suppliers such as H\u00e9roux-Devtek Inc. HRX-T<\/a> and Groupe Meloche inc. are in full-on acquisition mode as they try to bulk up their capabilities. <\/p>\n

\u201cI believe we\u2019re in a very positive dynamic, one capable of propelling Canada and its aerospace sector toward major momentum for an entire generation,\u201d said Catherine Guillemart, vice-president of public affairs for Airbus Canada. <\/p>\n

The data underpins the confidence. Over the last five years to the end of 2025, Canada\u2019s aerospace manufacturers and providers of maintenance, repair and overhaul, or MRO, boosted their collective revenues by 76 per cent to $45.7-billion, according to newly published figures from the federal government and the Aerospace Industries Association of Canada. Revenues rose about 7 per cent last year over the year before, the numbers show. <\/p>\n

The exports picture is equally positive. Manufacturers building in Canada shipped $28.2-billion worth of aerospace equipment in 2025, according to the data, up 54 per cent since 2021 and up about 10 per cent from 2024 to 2025. An increased share of exports to Europe and Asia was the main driver of the growth, according to the published figures. <\/p>\n

Canada now ranks in the global top five for manufacturing non-military flight simulators, engines, and aircraft. About 94,200 people work directly in the domestic aerospace industry, with the main hub for manufacturing in Quebec and MRO activities dominated by Ontario and Western and Northern Canada. <\/p>\n

At the Bombardier production facility in Dorval, Que., construction is underway to build a new $100-million plant next to its existing facilities to relieve some of the production pressure.<\/p>\n

Graham Hughes\/The Globe and Mail<\/p>\n

At Bombardier in Montreal, Mr. Martel is unashamedly bullish about the future. In the company\u2019s latest quarter, it booked orders for an average of 3.6 new jets for every plane it delivered. The number of individuals who can afford to fly privately continues to grow at a pace of 6 per cent per year, he says \u2013 a key reason why private jet fleet operators such as NetJets and Vistajet are snapping up planes. <\/p>\n

Bombardier is so busy it\u2019s running out of manufacturing space. After launching a new component-making facility in California last year and opening a US$400-million factory at Toronto Pearson International Airport in 2024 for its Global jet family, the company is now spending $100-million to build a plant next to existing facilities in Montreal to relieve some of the production pressure. <\/p>\n

On a recent visit to the Montreal site, the space crunch was clear. Global 5500 and 6500 jets were positioned on an angle so more could be squeezed into the hangar. The company has also eliminated some offices to make room for work previously done on the plant floor that\u2019s now needed to park aircraft. <\/p>\n

\u201cI\u2019ve never worked with so much backlog,\u201d Mr. Martel said. \u201cI\u2019ve got three, four years [of orders to fill] ahead of me, easily.\u201d <\/p>\n

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A Bombardier technician works on the wing of a Challenger aircraft. In the company\u2019s latest quarter, Bombardier booked orders for an average of 3.6 new jets for every plane it delivered.Graham Hughes\/The Globe and Mail<\/p>\n

It is a highly dynamic and transformative period for aerospace, engine-maker Pratt & Whitney Canada\u2019s new president, Satheeshkumar Kumarasingam, said in an emailed response to questions. \u201cDemand is strong across both commercial and defence, and the industry is moving from recovery into a new phase of growth, modernization, and technology. The companies that will lead the next aerospace cycle are investing in technology, talent, and industrial capacity.\u201d <\/p>\n

Across the country in Alberta, there\u2019s no better example of that than de Havilland Canada\u2019s new Field project. The aircraft maker, known for its iconic yellow water bombers and other rugged bush and regional aircraft, is building a new aerospace base 30 minutes east of Calgary that it calls one of the most significant investments in Canadian aerospace infrastructure in decades. <\/p>\n

The 1,500-acre site is expected to host a new aircraft assembly plant, runway, parts manufacturing and distribution centres, and an MRO facility. An employee training space, administration buildings and a plane museum are also planned. The company has said it will do final assembly for the DHC-515 firefighter aircraft at the field, as well as the DHC-6 Twin Otter and the Dash 8-400 turboprop \u2013 both of which it is striving to bring back into production after assessing customer needs. <\/p>\n

Its ambitions don\u2019t stop there. The company has also been talking to Sweden\u2019s Saab AB about building the Gripen fighter jet under contract should Ottawa choose to buy those jets for its Armed Forces, says Neil Sweeney, who leads de Havilland\u2019s communications and government relations. Aerospace isn\u2019t just the domain of Quebec and Ontario, he says. <\/p>\n

\u201cWe\u2019re in this for the long haul,\u201d Mr. Sweeney said, adding the privately held company has doubled its employee count to more than 3,000 over the past three years, most of them located in Canada, and expects to double it again over the next five. \u201cThis is a company that is deeply committed to the country and we\u2019ve got all kinds of opportunities to grow.\u201d<\/p>\n

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Mr. Sweeney says de Havilland has doubled its employee count over the past three years, and, having broken ground on the new facility site, he expects to see continued growth in the years to come.Todd Korol\/The Globe and Mail<\/p>\n

Canadian parts and system suppliers are also thinking big. And they\u2019re trying to scale up to boost their production power and deepen their relationships with larger customers, which are desperate to increase the stability and resilience of their supply chains. <\/p>\n

Longueuil, Que.-based H\u00e9roux-Devtek, a maker of landing gear for Boeing airliners and U.S. Navy fighter jets, sold itself last year to American private equity firm Platinum Equity Advisors LLC in a transaction worth $1.35-billion. One of the chief reasons for the deal was that it wanted to do major acquisitions but the value that public markets attributed to the company made that difficult, according to Gilles Labb\u00e9, H\u00e9roux-Devtek\u2019s executive chairman.<\/p>\n

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An Air France Boeing 777 airplane lands at the Charles-de-Gaulle airport. In 2013, Quebec-based manufacturer H\u00e9roux-Devtek signed a long-term contract with Boeing to supply complete landing gear systems for the 777 and 777X programs.Christian Hartmann\/Reuters<\/p>\n

In the roughly 17 months since the deal\u2019s close, H\u00e9roux has bid seriously on at least four takeover opportunities but they haven\u2019t yielded agreements, said Martin Brassard, the company\u2019s chief executive. The price buyers are willing to pay at the moment is \u201ccrazy\u201d but the manufacturer continues the hunt, he said.<\/p>\n

Groupe Meloche, a maker of aircraft structure components and engine parts for Bombardier and Pratt & Whitney, among others, is also in pursuit of takeover targets. The Beauharnois, Que.-based company struck a deal in May to take over France\u2019s Groupe Rossi A\u00e9ro, expanding into Europe in a transaction that will give it critical scale and bring it closer to Airbus\u2019s main base in the French city of Toulouse.<\/p>\n

Meloche\u2019s financial health is now a far cry from where it was at the start of the decade, when it was clobbered by a double whammy of the lengthy grounding of Boeing\u2019s 737 Max fleet as well as the outbreak of the COVID-19 pandemic. Global regulators ordered the Boeing jets to the ground following two fatal crashes linked to the aircraft\u2019s flight stabilization software. <\/p>\n

The company, a Boeing engine part supplier, lost about half its revenue within weeks in early 2020, prompting its main lender to dispatch a special accounts officer to its headquarters to verify that it had a good plan to work through the crisis. <\/p>\n

\u201cWe were losing money for almost three years,\u201d said CEO Hugue Meloche, whose father started the company now controlled by private-equity firm Novacap. \u201cThis was probably the worst industry to be in during COVID but right now it\u2019s probably the best. The pendulum is coming back.\u201d <\/p>\n

Bombardier technicians work on components of Challenger aircraft at the company’s Dorval facility. Manufacturing delays and parts shortages, coupled with a high volume of new orders, has contributed to the record-breaking production backlog.<\/p>\n

Graham Hughes\/The Globe and Mail<\/p>\n

What could spoil the party? Plenty, starting with the possibility that Canada\u2019s aerospace industry could get caught up in the same trade war that has battered other sectors such as steel and forestry. <\/p>\n

For decades, global aerospace has operated in a largely tariff-free environment under bilateral and multilateral trade policies originating from a 1979 World Trade Organization agreement on civil aircraft. There have been major disputes between countries during that time but the system has survived. Today, it\u2019s a heavily integrated manufacturing ecosystem with cross-border transfers of everything from planes to seats and spare parts. <\/p>\n

Now, however, the U.S. Department of Commerce has wrapped up a Section 232 investigation into imports of commercial aircraft, engines and related parts and determined they present a national security threat. <\/p>\n

\u201cDecades of foreign government market interventions have unfairly eroded our producers\u2019 global market share,\u201d and affected the ability of American companies to meet economic and national defence demands, a White House fact sheet published July 9 reads. <\/p>\n

President Donald Trump isn\u2019t imposing import duties on aerospace products right away, though. Instead, he\u2019s ordered administration officials to negotiate with trading partners on possible adjustments. The President \u201cmay also take other actions he deems necessary,\u201d including if the pacts negotiated are not entered into within 180 days or are \u201cineffective,\u201d according to the White House fact sheet. <\/p>\n

For now, Canadian aerospace exports remain tariff-free under the Trump administration\u2019s exemption for goods stamped as compliant under the United States-Mexico-Canada Agreement. <\/p>\n

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A worker stands beneath the fuselage of a Bombardier Challenger 650 aircraft on the production line. Bombardier has thousands of suppliers in the U.S., which has long been a major net exporter of aircraft and parts.Graham Hughes\/The Globe and Mail<\/p>\n

Many executives and legal experts say chances are low that the aerospace industry will be the subject of any drastic changes, in part because the U.S. is a major net exporter of aircraft and parts. America\u2019s aerospace and defence sector has maintained a positive trade surplus for more than 70 years \u2013 the only manufacturing industry in the country with a positive trade balance, according to the U.S. Aerospace Industries Association.<\/p>\n

Any change would rip through the supply chain, with potential negative effects both in the U.S. and internationally. Bombardier, for example, has 2,800 suppliers in the U.S. and warns that any new American duties would probably cause more pain south of the border than in Canada in terms of jobs and layoffs. <\/p>\n

Others point out that there are no major voices on the U.S. side calling for greater protectionism in aerospace, unlike in other sectors such as steel. \u201cThere\u2019s not really a constituency pushing\u201d for change, said Jonathan Epstein, a trade lawyer with Holland & Knight in Washington, D.C. In fact, there has been intense lobbying for the status quo, including from GE Aerospace CEO Larry Culp, according to U.S. media reports. <\/p>\n

Supply chain disorder could also kill the buzz. The issue was a major one during the pandemic as lockdowns shut down factories and consumer spending shifted, and it continues to generate headaches. Manufacturers describe an environment now where just as one problem gets resolved, more seem to pop up unexpectedly due to war and other reasons.<\/p>\n

Water is sprayed on a damaged, overheated chemical tank at GKN Aerospace, a manufacturer of components for commercial and military aircraft, in Garden Grove, Calif., in May. Fears of a potential chemical leak or explosion triggered the evacuation of thousands from the neighbouring residential area, delaying the company’s production schedule and compromising supply to its customers.<\/p>\n

Ethan Swope\/The Associated Press; Apu Gomes\/Getty Images<\/p>\n

Take GKN Aerospace. In May, the maker of advanced windows and canopies for commercial and military aircraft such as the Boeing 737 and the Lockheed Martin F-35 fighter jet, stopped a factory in the Los Angeles suburb of Garden Grove after an overheating tank containing chemicals triggered fears of an explosion. About 50,000 nearby residents were forced to evacuate as a precautionary measure. And supply to customers was compromised for days, if not weeks.<\/p>\n

\u201cThe problems we\u2019re working on now, they weren\u2019t on the radar two months ago,\u201d Mr. Martel said of Bombardier, adding late parts are affecting the sequencing of production lines. \u201cWe can still deliver our planes, but it\u2019s a bit chaotic.\u201d<\/p>\n

While not as headline-grabbing as trade or supply struggles, labour remains the No. 1 issue for many manufacturers, says M\u00e9lanie Lussier, head of A\u00e9ro Montr\u00e9al, Quebec\u2019s main industry trade group. <\/p>\n

Quebec\u2019s aerospace sector alone currently employs 43,000 people. She estimates 65,000 people will be needed within 10 years, not counting the workers required to fulfill contracts that will be awarded in defence. <\/p>\n

\u201cThis will be the major thing impeding growth,\u201d Ms. Lussier said. <\/p>\n

Premier Christine Fr\u00e9chette\u2019s government announced several initiatives this past week to boost the number of aerospace workers being trained in the province, including an expansion of the National School of Aerotechnics. <\/p>\n

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Quebec Premier Christine Fr\u00e9chette greets an Airbus employee during a tour of their Mirabel production facility in May. The Quebec government recently announced initiatives to boost the number of aerospace workers being trained in the province to meet the estimated 65,000 people that will be needed within 10 years.Graham Hughes\/The Canadian Press<\/p>\n

The problem cuts across the country. At KF Aerospace in Kelowna, B.C., Canada\u2019s largest commercial maintenance, repair and overhaul provider, CEO Tracy Medve says finding the right balance of skilled labour has been an issue for years. <\/p>\n

The company partnered with Mohawk College on a new training centre for aviation technology in Hamilton and it\u2019s doing the same in the Okanagan. But that still might not be enough to offset a looming wave of retirements. <\/p>\n

\u201cThe senior skilled people are going out the other end a little faster than you can bring people in through school and apprenticeship time,\u201d Ms. Medve said. <\/p>\n

Still, she said she\u2019s optimistic about the future. The company also trains Canadian Air Force pilots, modifies aircraft, and offers passenger charters and cargo flight operations as well as leasing. It opened an office in Ottawa in April \u2013 an effort to deepen its relationship with national decision-makers. <\/p>\n

\u201cI think we\u2019re in a good, solid place right now to see some stability now for the next short while,\u201d Ms. Medve said. \u201cIn addition to the general demand that we have for aerospace in this country, I think there\u2019s also a movement towards Canadian carriers doing more maintenance work in Canada. And that hasn\u2019t always been the case.\u201d <\/p>\n

Canadian-built Lancaster bombers are assembled at Victory Aircraft Ltd. in Malton, Ont., for use by Allied forces in WWII. Since mobilizing to contribute to the war effort, the federal government has been a commercial partner with the aerospace sector in one way or another.<\/p>\n

The Globe and Mail; John Boyd\/The Globe and Mail<\/p>\n

Canada\u2019s position as an aerospace power stretches back to the Second World War, when this country made planes for the Allied effort far from the reach of German bombers. Ever since, the Canadian government has been a commercial partner with the sector in one way or another. <\/p>\n

Aerospace companies have provided high-skilled, high-paying jobs, and successive governments going back decades have tried to hold on to the expertise in aerospace design and manufacturing through a series of funding programs. Much of that money has gone to Bombardier, eliciting widespread criticism at times from pundits who argue the manufacturer has squandered much of what it had through mismanagement and over-ambition.<\/p>\n

Today, however, Airbus wouldn\u2019t have the footprint it does in Canada without Bombardier, which continues to cut a new path as a $31-billion maker of private jets. And many voices are arguing this country needs much more ambition, not less, if we want to avoid slipping into middle-power mediocrity. <\/p>\n

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Labour remains the top issue for many manufacturers in the aerospace industry, as senior skilled workers move towards retirement and the number of new aerospace workers enrolled in training programs remains lower than needed to meet future demand.Graham Hughes\/The Globe and Mail<\/p>\n

As aerospace manufacturers and countries around the world jostle to develop the next generation of cleaner aircraft and cutting-edge technology, Ottawa\u2019s role in developing Canadian aerospace and helping sell its products is as crucial as ever, said Mehran Ebrahimi, an aerospace specialist at the University of Quebec at Montreal. And it needs to do more, he said. <\/p>\n

When you look at what the Americans and Europeans are spending, sometimes via defence programs that cross-pollinate commercial aircraft development projects, the sums invested run in the $20-billion and $30-billion range per year, Mr. Ebrahmi said. \u201cIt\u2019s not with one billion, two billion here and there that we\u2019re going to move the needle,\u201d he said. \u201cWe\u2019re a long way from what\u2019s needed.\u201d <\/p>\n

Plotting a course to follow is also important. Many industry leaders are still calling for a specific national aerospace policy and vision, something that goes beyond the designation as a \u201ckey sovereign capability\u201d in the federal government\u2019s recently released Defence Industrial Strategy.<\/p>\n

Such a policy would help focus political leadership, they say, and maintain coherence even across changes in government. It would also set priorities for action. <\/p>\n

\u201cCanada is one of the very few countries in the world that can design, build, certify, export and sustain aircraft and aerospace systems\u201d from nose to tail, said Mike Mueller, president of the Aerospace Industries Association of Canada. \u201cWe can do even better. We\u2019re seeing it on the defence side, which is great. But we also need to see it on the civil side.\u201d<\/p>\n

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A Canadian flag hangs on a Bombardier aircraft at the company’s Mississauga, Ont., facility. Many industry leaders are calling for a specific national aerospace policy and vision that goes beyond the what is laid out in the government\u2019s new Defence Industrial Strategy.Sammy Kogan\/The Canadian Press<\/p>\n

Stable support for research and development, advanced manufacturing and talent development will be critical for Canada to remain a global aerospace leader, said Pratt & Whitney\u2019s Mr. Kumarasingam. Sustained long-term investment is needed, he said, echoing comments from other executives.<\/p>\n

\u201cCanada was a true aerospace powerhouse and we kind of lost that partnership between the federal government and the industry,\u201d de Havilland\u2019s Mr. Sweeney said, adding the first thing Ottawa could do is back its champions by buying their products. His company has pitched the idea of a national waterbomber fleet, for example. Canada doesn\u2019t have to look past its own borders to buy surveillance and transport aircraft, either. <\/p>\n

\u201cI do think that there\u2019s a renaissance that can happen in the country if we choose to grab it.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"When Airbus SE EADSY announced its latest order for the Canadian-built A220 jet at a news conference in…\n","protected":false},"author":2,"featured_media":807639,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[1397,49,48,44],"class_list":["post-807638","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-appwebview","tag-ca","tag-canada","tag-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/807638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=807638"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/807638\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/807639"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=807638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=807638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=807638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}