Bombardier CEO Shows Concern Over Boeing Securing Canada's Defense Contract

Author: Vandana Singh | December 22, 2022 10:15am

Bombardier Inc’s (OTC:BDRBF) Chief Executive Eric Martel raised his concerns over Canada’s potential plan to buy reconnaissance jets directly from Boeing Co (NYSE:BA) instead of considering the homegrown aerospace industry.
“As President and CEO of Bombardier, I want to publicly share my concern that Canada, which is facing an important choice about the airborne surveillance of its vast borders, may be considering awarding a sole-source contract directly to Boeing,” Reuters reported.
Martel’s comments come after a recent media report that Canada was considering the proposal to buy between eight and 12 units of P-8 Poseidon aircraft from Boeing.
Martel pushed for Bombardier’s jets, saying the Canadian planemaker’s Global 6500 aircraft “will be the right-sized solution and respond to Canada’s needs.”
Earlier this year, Boeing announced that it would take part in any competition to replace the Royal Canadian Air Force’s existing and aging fleet of CP-140 Aurora aircraft. The program is expected to cost more than $5 billion.
Price Action: BA shares are down 1.07% at $193.90 during the premarket session on the last check Thursday.