Canada considers Gripen E fighter as option amid ongoing talks over F-35 contract and industrial benefits comes with it.
The Royal Thai Air Force has confirmed its selection of Saab’s Gripen E/F as its new multi-role fighter aircraft. This marks a significant development in Thailand’s defence modernisation efforts.
Canada is pressuring Lockheed Martin for greater economic returns before finalising a $27.7 billion contract for 88 F-35 fighter jets, according to CBC. Minister of Industry Mélanie Joly has raised the prospect of reducing the F-35 fleet and introducing Saab’s Gripen E aircraft if better terms are not secured.
Canada is intensifying pressure on Lockheed Martin to deliver more domestic economic benefits before moving forward with a $27.7 billion purchase of 88 F-35 fighter jets. Industry Minister Mélanie Joly said the government may opt for a reduced fleet and add Swedish-made Gripen E aircraft if further concessions are not secured.
In an interview with Les coulisses du pouvoir, Joly said Saab has offered to assemble the Gripens in Canada, providing additional industrial value. “It will be up to the prime minister to decide. But in the meantime, it is certainly my goal to be able to get more out of the F-35 contract from Lockheed Martin, and to continue discussions with Saab,” she said.
Prime Minister Mark Carney is reviewing the contract, a process that began in March amid rising trade tensions between Canada and the U.S. Joly said Ottawa is considering two options: securing improved economic terms to maintain the full F-35 order or reducing the fleet size and incorporating Gripens.
Canada is contractually committed to purchasing at least 16 F-35s, but a mixed fleet is now on the table despite its operational complexity. “All G7 countries have a mixed fleet,” Joly noted, downplaying concerns over logistical challenges.
Joly outlined three federal priorities as defence spending increases: boosting military capabilities, building geopolitical alliances, and creating jobs in Canada’s defence sector. “You can be sure that at the decision-making table, the cabinet table, that’s what concerns me: ensuring that Canadian taxpayers’ money can be used wisely to reduce our dependence on the United States and also create jobs in Canada,” she said.
Despite the ongoing review, National Defence officials are moving ahead with preparations for the F-35s. “We are full steam ahead, full steam ahead focused on making sure we’ve got the infrastructure, the pilots, the training in place for the arrival of those F-35s,” said Deputy Minister Stefanie Beck during a recent parliamentary committee appearance.
Beck and Royal Canadian Air Force Commander Lt.-Gen. Jamie Speiser-Blanchet emphasised the necessity of fifth-generation aircraft to counter threats from adversaries like China and Russia. “The importance cannot be overstated of having a fifth-generation aircraft because that’s what our adversaries have,” Beck said. Speiser-Blanchet added, “Both China and Russia have fifth-generation fighter aircraft and fifth-generation missiles that are able to go at much greater speeds and with much more lethality that are holding Western allies at risk.”
Meanwhile, Saab argues its Gripen E offers superior adaptability through continuous upgrades. “Fourth, fifth, even sixth generation are common phrases used to describe the capability of fighter jets, and their definitions are often debated. At Saab, we stopped talking about ‘generations’ years ago, because Gripen E’s technology, and therefore capabilities, can be enhanced almost daily,” said Saab Canada spokesperson Sierra Fullerton.
The 2023 decision to purchase the F-35s followed a competitive process comparing economic offset offers from Lockheed Martin and Saab. However, some experts question Canada’s leverage at this stage. “I have difficulty seeing how anyone can propose, after signing a contract, to reopen the contract to add other elements. I’m not saying it’s impossible, but it seems unlikely to me,” said Philippe Lagassé of Carleton University.
David Perry of the Canadian Global Affairs Institute said Lockheed Martin could easily find new buyers and suggested Ottawa may need to offer a larger deal—possibly linked to participation in U.S.-led missile defence initiatives—to gain attention. He noted that “something bigger on the table” could make revised terms “potentially attractive to President [Donald] Trump.”
While discussions continue, Canada’s immediate focus remains on preparing for the incoming F-35s. Beck confirmed, “What we have as direction is to continue with the contract … with the arrangements that we have in place until we hear otherwise.”
© 2025, GDC. © GDC and www.globaldefensecorp.com. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to www.globaldefensecorp.com with appropriate and specific direction to the original content.
