The Swedish manufacturer Saab is eyeing a “second chance” to export its Gripen-E fighter jets to Canada, three years after suffering a shocking defeat at the hands of Lockheed Martin.
The Lockheed Martin F-35 and the Saab Gripen E were the two finalists in Canada’s Future Fighter Capability Project (FFCP), aimed at replacing the aging CF-18 in the Royal Canadian Air Force (RCAF). In 2022, the Canadian government announced the selection of the F-35, dealing a massive blow to Saab.
However, since Canadian Prime Minister Mark Carney put the purchase of 88 F-35A jets under review in March 2025 amid sustained tensions with the United States, Saab appears to be making fresh overtures to promote its Gripen-E fighters to Ottawa.
Late last month, Saab CEO Micael Johansson said the company wants to increase the multirole supersonic jet’s production capacity outside Sweden to ramp up production and meet demand from Ukraine, which is expected to acquire more than 100 Gripen-E fighters. Micael said the company was considering Canada as its third production site, after Sweden and Brazil.
In a latest development, Canadian aerospace giant Bombardier confirmed that it has been in talks with Saab AB of Sweden to build the Saab Gripen fighter in Canada. “We confirm discussions with Saab about the Gripen,” Mark Masluch, Bombardier’s senior director of communications, told Canadian publication The Globe and Mail. “Bombardier is open to providing local expertise if the government of Canada decides to go this route.”
Additionally, an unidentified senior Canadian government source told the publication that a “JV [is] being worked out between Saab and Bombardier,” referring to a potential joint venture between the two companies.
On its part, Saab confirmed the discussions with Bombardier but did not mention the Gripen. “We are continuing discussions with Bombardier for a range of opportunities in Canada … to do manufacturing and further our scope of work with Bombardier,” said Simon Carroll, the President of Saab Canada.
It is worth noting that Gripen’s production in Canada will create thousands of jobs and stimulate the local economy.
Notably, a page on the official SAAB website that was last updated in 2022, when the firm lost the Canadian fighter jet contract to the F-35, states: “The Gripen program will create 6,000 new jobs across Canada, maintained over the course of 40 years. These are direct jobs, relevant to the program and related investments. They also come with the added benefit of intellectual property transfer from Saab, helping to build additional capabilities in Canada’s aerospace industry.” “Gripen will be built, maintained, and upgraded in Canada together with our Canadian partners following a contract award,” it further adds.
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The local production or assembly of the Gripen in Canada would allow Bombardier to supply the Gripen-E fighters to Ukraine and other buyers of the aircraft, as well as to the Royal Canadian Air Force (RCAF). However, there is currently no information on whether Saab has initiated direct talks with the Canadian government regarding the export of its aircraft.
Gripen Comeback In Canada?
In 2022, as Canada accelerated efforts to acquire a new potent fighter under its Future Fighter Capability Project (FFCP), Saab was upbeat with optimism and was banking on its extensive ‘Gripen for Canada’ campaign that had been running since 2020.
Speaking to reporters in February 2022, Saab CEO Micael Johansson said, “We have a clear answer from the Canadians that we have passed certain requirements for affordability, capability, and security when it comes to having our system working interoperably within the Two Eyes, Five Eyes, and NORAD context. We are now waiting for the next steps from them.”
However, shocked by the selection of Lockheed Martin’s F-35, Saab attributed the Canadian pivot to the American fighter jet as ‘unfair play. “The process was not transparent. The requirements were tailored to exclude competition. We delivered the best value—Canada chose politics over merit,” said Saab Canada President, Simon Carroll.
In January 2023, Canada signed a CAD19 billion (US$14.2 billion) deal with Lockheed Martin to acquire 88 F-35 fighter jets. Meanwhile, Saab was left with a string of losses in its kitty, as the F-35 swept several fighter contracts across Europe.
However, as soon as Donald Trump took over as the US President, cracks started to appear in the alliance. In March 2025, the Canadian Prime Minister, Mark Carney, put the F-35A purchase under review after Trump imposed unprecedented tariffs on Canada and called on the country to become the 51st state of the US.
There were also concerns that, in the event of political fallout, the Trump administration could weaponize its control over the F-35 by blocking access to spare parts and software upgrades.
At the time, Carney signalled that the country would look for alternatives in Europe. This triggered speculations that the other finalist in its fighter contract, Saab Gripen-E, could be considered for acquisition.
Interestingly, the Canadian Minister of Industry, Mélanie Joly, said in an interview that the government was weighing the potential for a reduced F-35 fleet and the inclusion of the Saab Gripen E into the RCAF. The announcement, according to reports, was aimed at securing a more favourable deal from Lockheed Martin, including enhanced industrial participation and direct benefits for Canadian companies.
“It will be up to the prime minister to decide. But in the meantime, it is certainly my goal to be able to get more out of the F-35 contract from Lockheed Martin, and to continue discussions with Saab,” Joly said.
As it stands, Canada will likely acquire the 16 F-35As that have been paid for and announce its decision on the rest of the deal later.
Gripen Vs F-35, Again
The Gripen offers advanced capabilities at a fraction of the cost of the F-35, making it an attractive option for nations looking to modernize their air forces without breaking the bank. This offers many NATO countries, particularly those with limited military budgets, a chance to attain air superiority without incurring significant costs.
The Gripen’s reduced life-cycle costs, including effective maintenance, guarantee long-term sustainability, which is essential for nations seeking to update their fleets while conserving resources. Meanwhile, the cost of the F-35 has ballooned significantly since the deal was signed, going from CAD 19 billion in 2023 to CAD 27.7 billion.
In contrast to the F-35, which has been criticized for relying too heavily on American control systems, the Gripen offers greater operational independence. This is crucial for nations that value strategic independence, such as Canada. However, the one sticking point is that the Gripen is powered by an American General Electric engine, which means the purchase could be vetoed by the US.
Notably, military officials, lawmakers, and analysts have flagged the perils of operating a mixed fighter jet fleet composed of the 16 F-35 that have already been paid for, and an unknown number of new Gripen-E fighter jets. Experts claim that a mixed fleet would create operational and logistical challenges as the RCAF is currently preparing training programs and infrastructure for the incoming F-35s.
The new commander of the Royal Canadian Air Force, Lt.-Gen. Jamie Speiser-Blanchet was earlier asked whether she agreed with the idea of a mixed-fighter fleet. However, she sidestepped the question by saying that the Royal Canadian Air Force (RCAF) would have to anyway oversee two fleets throughout the F-35’s introduction because the current CF-18s are anticipated to remain in service until the early 2030s.
However, Speiser-Blanchet acknowledged that running two different fleets would be more expensive and difficult. “It would duplicate a certain amount of infrastructure and training.”
Additionally, the RCAF boss also noted that, “Both China and Russia have fifth-generation fighter aircraft and fifth-generation missiles that are able to go at much greater speeds and with much more that are holding Western allies at risk at this moment in time.” Thus, indicating an inclination towards the F-35.
There has been speculation that Canada will remain committed to the F-35. Canada’s secretary of state for defense procurement, Stephen Fuhr, said in an interview last month that the nation wasn’t attempting to abandon the F-35.
“I don’t think that’s the direction we’re heading,” Fuhr said in an interview with CBC last month. “But there’ll be a decision, and we’ll make it when we’re ready.”
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