Swedish defence giant SAAB has offered 72 Gripen E/F fighter jets and 6 GlobalEye surveillance aircraft to the Canadian Armed Forces, which would generate thousands of jobs in the country.
Reiterating its offer, Saab informed the Canadian Armed Forces last week that it could deliver on its promise to create 12,600 jobs locally if Ottawa buys 72 Gripen jets and six GlobalEye surveillance aircraft.
In November 2025, Saab CEO Micael Johansson stated the company was tying up with Canadian aerospace manufacturer Bombardier to pave the way for license production of Gripen-E/F fighter jets. At the time, the CEO promised to create 10,000 jobs, but did not specify how many aircraft would be produced to achieve that goal.
The push for export is part of the ‘Gripen for Canada’ campaign that was resuscitated after the Canadian Prime Minister Mark Carney put the purchase of 88 Lockheed Martin F-35A jets under review in March last year.
Interestingly, the number quoted by Saab is the same as the RCAF would need for its 88-strong combat jet inventory, after deducting the 16 F-35s that Canada already paid for.
For now, Canada is set to welcome the 16 F-35A jets as it evaluates whether to proceed with the full purchase or acquire other aircraft.
At the same time, officials and experts in Canada are currently studying the proposals for both aircraft, i.e., the F-35 and the Gripen, to assess the defence and economic feasibility of procuring them, the CBC report stated, citing information from anonymous government and industry sources.
To make the offer more enticing for the Royal Canadian Air Force (RCAF), the Swedish manufacturer has expanded it by adding the GlobalEye aircraft, presenting it as a package deal that will help Ottawa diversify its arms purchases and create more jobs that will boost its economy at a time when the country is facing economic headwinds linked to the United States and its policy decisions.
It must be recalled that the F-35 purchase was put on hold due to frictions with the Trump administration, including unprecedented tariffs imposed on Ottawa, and repeated insinuations that Canada could become the 51st state of the United States.
Amid tensions with Washington, the Carney government indicated it could move to other suppliers to avoid over-reliance on the US. There were also apprehensions that Washington could leverage its control over F-35 software upgrades to cripple the RCAF’s jets during a potential standoff.
Earlier, Prime Minister Carney embarked on a trip described as a “historic” visit to China, and declared that his country was forging a “new strategic partnership” with Beijing, ending years of frosty ties.
Separately, the Canadian government sided with its NATO partners, saying that Trump cannot decide the ownership of Greenland.
“The future of Greenland is a decision for Greenland and for the Kingdom of Denmark,” he told reporters while reiterating his support for Danish sovereignty over the strategic Arctic island that Trump has threatened to capture.
“We are NATO partners with Denmark, and so our full partnership stands,” Carney said, breaking the silence on the escalating rhetoric. ”Our obligations on Article 5, Article 2 of NATO stand, and we stand full-square behind those.”
In addition, recent reports indicate that Canada is actively pushing back against Trump’s imposition of tariffs on several European allies for deploying troops to Greenland in support of Danish sovereignty. Ottawa is reportedly considering sending a small contingent of military personnel to Greenland to participate in the drills with NATO partners.
Notably, Canada’s former ambassador to the United Nations, Bob Rae, recently said in an interview that Trump’s military operation against Venezuela and open threats asserting ownership over Greenland represent an existential threat to Ottawa.
“Canadians would be mistaken in thinking they’re not ‘on the menu, ‘ too,” Bob stated, adding that “the American government doesn’t take Canada’s sovereignty seriously.”
Whether the sustained tensions between the two neighbours will work in Saab’s favour remains to be seen.
F-35 Vs Gripen Contest Grows
Saab is engaged in an aggressive effort to woo Canadian decision-makers, including launching local production and pushing the GlobalEye, which is built on the Canadian-made Bombardier Global 6000/6500 business jet and could be relatively easier to integrate into the RCAF than other aircraft with a completely different design.
The Saab CEO has significantly expanded outreach to Canada over the past year, travelling to the country and lobbying officials.
In fact, Saab has a strong backing from the entire Swedish state machinery. The Swedish King Carl XVI Gustaf and Queen Silvia led a business and political delegation to Canada last year, including Sweden’s deputy prime minister, Ebba Busch, defence minister, Pål Jonson, and over 60 industry members.
Separately, the SAAB Canada unit is on overdrive.
“Saab remains ready to support the government of Canada with sovereign, cutting-edge solutions for the Canadian Armed Forces that will grow domestic industry,” Simon Carroll, president of Saab Canada, said recently. Meanwhile, a targeted social media campaign pushing the aircraft as the best alternative is also purportedly in full swing.
Previous reports have suggested that the political and military leadership in Canada still favours the F-35 despite the worsening ties with Washington.
Canadian veterans and military experts have warned that a mixed fleet would create operational and logistical challenges as the RCAF is currently preparing training programs and infrastructure for the 16 incoming F-35s.
Several of them believe the country needs a stealth aircraft to counter modern threats. “Both China and Russia have fifth-generation fighter aircraft and fifth-generation missiles that can go at much greater speeds and with much more that are holding Western allies at risk at this moment in time,” said the new commander of the Royal Canadian Air Force (RCAF), Lt.-Gen. Jamie Speiser-Blanchet, indicating an obvious inclination.
A report leaked late last year may have further solidified the trust in the F-35.
In a 2021 evaluation conducted by Canada’s Department of National Defence, the F-35 received a 95% rating for military capabilities. The Gripen-E finished with a score of 33%, scoring 19.8 points out of 60, according to data obtained by Radio-Canada. The competition centred on how well each fighter jet could defend North America and how likely it was to succeed in various missions against modern military forces.
Meanwhile, last year, American officials warned that if Ottawa decided to pull out of the F-35 deal, it may have “serious consequences” for joint air defence operations, highlighting that completing the purchase would aid interoperability between the two states.
NORAD’s mission, which includes aerospace warning, control, and the defence of North American airspace, depends on an integrated network of radar, satellites, and fighter aircraft on both sides of the border. When platforms use similar technologies and data linkages, pilots and ground controllers can more easily exchange targeting information and react more quickly to intrusions or unknown encounters. The F-35’s advanced networking and data fusion capabilities are very helpful in this regard.
Losing this may be too high a cost for Canada at this point.
However, winds of change seem to be flowing, with officials now growing increasingly worried about Washington’s erratic behaviour.
“The government is interested in all major projects that can not only protect Canada’s security and sovereignty, but also create jobs across the country,” Industry Minister Mélanie Joly told CBC News after Saab put a number to its offer. ”We certainly can’t control President Trump, but … we can control our defence investments, who we award contracts to, and how we are ultimately able to create jobs in Canada. So we’re going to focus on that.”
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