Swedish fighter jet maker Saab has struck a deal to work with Canadian company CAE on a domestic training, flight simulation and support program if Ottawa decides to buy its Gripen jets.
In a media statement, the two companies pitched the agreement as a way to ensure critical operational and mission systems information would stay in Canada and under Canadian control.
“In addition, the partnership would provide Canada with the capability to independently support future mission system enhancements and upgrades, strengthening Canada’s operational sovereignty and long-term sustainment capacity,” the statement said.
Canada signed an agreement in 2022 to buy its new fighter jets from Lockheed Martin.
The $19-billion agreement would see Ottawa procure up to 88 F-35 jets from the U.S. firm.
An initial $7-billion purchase order for 16 fighters has been locked in and Canada is expected to receive the first planes in the U.S. later this year.
Saab came second in the competition to replace the current CF-18 jets.
Prime Minister Mark Carney’s government launched a review of the fighter jet program in March 2025 after U.S. President Donald Trump returned to office and began his trade war.
Saab has since launched a charm offensive, meeting regularly with federal officials in an attempt to convince the Canadian government to buy some of its Gripen E fighters and form a mixed fleet.
In May, Saab deputy CEO Andres Carp said Canada could become a production and export site for the Gripen if it decides to buy the jets. The company is planning to build up to 20 jets for Ukraine’s air force.
It has said that a Canadian production hub could create as many as 10,000 jobs, though experts say there’s no information available about how the company arrived at that figure.
The Liberals have not said when their review will be complete or when they will make a decision about the future of the fighter jet program.
CAE also signed an agreement with Lockheed Martin back in 2013 to make flight simulators for the F-35. At the time, the agreement was conditional on Canada choosing the stealth fighter for its new fleet.
Ottawa has now made CAE a strategic partner in the design and development of its fighter pilot training program for the F-35s.
This report by The Canadian Press was first published July 17, 2026.
By Sarah Ritchie | Copyright 2026, The Canadian Press. All rights reserved.