Saturday 31 August 2019

Airbus pulls out of fighter-jet competition following complaints

Neil Bates @flicker.com

Airbus pulls out of fighter-jet competition following complaints | The Star

Airbus is the second company to pull its fighter jet from the competition after Dassault withdrew its Rafale last November.


OTTAWA—Canada’s multibillion-dollar effort to buy new fighter jets has taken another surprise turn with European aerospace giant Airbus announcing it has withdrawn from the high-stakes competition.

Airbus Defence and Space, in partnership with the British government, was one of four companies expected to bid on the $19-billion contract to build 88 new fighter jets. They’re to replace the Royal Canadian Air Force’s aging CF-18s.

But in a statement Friday, Airbus said it had notified the Canadian government of its decision to withdraw its Eurofighter Typhoon for two reasons — both of which it had raised before the competition was formally launched in July.

The first relates to a requirement that bidders show how they plan to ensure their planes can integrate with the top-secret Canada-U.S. intelligence network known as “Two Eyes,” which is used to co-ordinate the defence of North America.

Meeting the requirement continues to place “too significant of a cost” on non-U.S. aircraft, said Airbus, which would have been required to show how it planned to integrate the Typhoon into the Two-Eyes system without knowing the system’s full technical details.

The second factor was the government’s decision to change a long-standing policy that requires bidders on military contracts to legally commit to invest as much money in Canadian products and operations as they get out of contracts they win.

With the new process, bidders can instead establish “industrial targets,” lay out a plan for achieving those targets and sign non-binding agreements promising to make all efforts to achieve them. Such bids do suffer penalties when the bids are scored but are no longer rejected outright.

That change followed U.S. complaints the previous policy violated an agreement Canada signed in 2006 to become one of nine partner countries in developing the F-35. The agreement says companies in partner countries will compete for work.


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