/ 6 July 2006

Boeing nears multibillion-dollar Canada deal

United States aerospace giant Boeing is well placed to win a multibillion-dollar deal to provide strategic transport aircraft and helicopters to Canada, officials said on Wednesday.

The Canadian government last week announced plans to purchase 16 helicopters for Can$4,7-billion ($4,2-billion), and 21 military transport planes for Can$8,3-billion ($7,4-billion), including maintenance costs.

”For the medium- and heavy-lifting helicopters, preliminary industry research indicates that the Boeing CH-47 Chinook helicopter is likely the only known aircraft currently capable of delivering a suitable off-the-shelf aircraft in a timely manner,” the Public Works and Government Services Canada said.

The plane purchases include four jumbo transport craft and 17 smaller planes with more limited operating ranges.

”Similarly, for the strategic aircraft requirement, preliminary industry research also indicates that the Boeing C-17 Globemaster is likely the only aircraft capable of meeting the government’s urgent requirement in a timely matter,” the report said.

It said both contracts would remain open for other bidders in the short-term, but that Boeing remained the frontrunner in the deal.

Canada will also set up a different mechanism for choosing a contract to replace an aging fleet of Hercules C130 planes with 17 new craft.

Canadian media reports said that Lockheed Martin and its C130J jets were best placed for that deal, although Europe’s Airbus also entertained a chance.

Last week, the Canadian government announced a military purchase spending plan of Can$17,1-billion ($15,3-billion) to reinforce its armed forces with aircraft, ships and trucks. – Sapa