Canada’s fighter jet transition project is facing significant cost increases and delays
Report 2—Delivering Canada’s Future Fighter Jet Capability
Report metadata
- Tabling date:
- Audited entities:
- Defence Construction Canada
- National Defence
- Public Services and Procurement Canada
- Report type
- Auditor General reports
At a glance
As part of the Future Fighter Capability Project, the federal government finalized an arrangement in December 2022 to buy 88 F‑35A fighter aircraft from the United States to replace Canada’s aging CF‑18 Hornet fleet. The project’s prime objective is to maintain a strong fighter‑jet capability through and after the transition to bolster Canada’s ability to defend itself and fulfill its international defence commitments.
Though still in its early stages, we found that overall cost estimates for the Future Fighter Capability Project have increased significantly since the government finalized the arrangement. In 2022, National Defence projected that the costs would be $19.0 billion. By 2024, issues like foreign exchange fluctuations and rising facilities costs increased the estimate to $27.7 billion, almost 50% more than originally anticipated. That projection does not include other elements needed for Full Operational Capability, such as essential infrastructure upgrades and advanced weapons. These would add at least $5.5 billion to the total cost.
We also found that the Future Fighter Capability Project was facing delays in building key infrastructure to support the aircraft, which National Defence refers to as CF‑35As. Construction of 2 new fighter squadron facilities to support operations was expected to be completed only in 2031, more than 3 years behind schedule. Costs to develop an interim operations solution to support the new jets will further increase infrastructure expenses.
The project is facing other significant risks that could jeopardize the timely introduction of the CF‑35A jets. In 2018, when we last audited Canada’s fighter force, we found that one of National Defence’s biggest obstacles was a shortage of qualified pilots. Six years later, that was still the case. In addition, we found National Defence had not fully developed its plans to coordinate and manage this large, multi‑party project, and its progress in implementing those plans was slow.
Why we did this audit
- The Canadian fighter aircraft fleet’s most important role is the defence of Canadian and North American airspace, and the current fleet of CF‑18 Hornets is reaching the end of its service life.
- As the primary Canadian aircraft assigned to NORAD, Canada’s fighter aircraft are on continuous alert to respond to potential aerial threats to the safety of North America.
- Major National Defence acquisition projects need to be well defined and managed because they cost billions of dollars
Highlights of our recommendations
- National Defence should take immediate action to complete all plans and schedules for the project to bring the CF‑35A aircraft into service and implement them in a timely manner.
- National Defence should review on at least an annual basis the Future Fighter Capability Project cost estimates and adjust them as needed to have timely and accurate information for decision making.
- When reporting publicly on the estimated cost of bringing the CF‑35A aircraft into service, National Defence should include all needed elements required for achieving Full Operational Capability.
Key facts and findings
- The CF‑35A arrangement includes the acquisition of aircraft and associated equipment, weapons, infrastructure, information technology, training, and software support, with Full Operational Capability targeted for 2033–34. New fighter squadron facilities are being built in Cold Lake, Alberta, and Bagotville, Quebec.
- Before the announcement to acquire the jets, National Defence spent about $1 billion to participate as a partner in the 8‑nation Joint Strike Fighter Program, which includes the United States, Canada, Australia, Denmark, Italy, the Netherlands, Norway, and the United Kingdom. The Joint Strike Fighter Production, Sustainment and Follow-on Development Memorandum of Understanding is a framework arrangement among the 8 nations that sets how they will collaborate and potentially acquire the F‑35.
- As of 31 March 2025, National Defence had committed $935 million to the United States government to produce the first 4 jets and the delivery of long‑lead items necessary to enable the future production for another 8 aircraft, of which $197 million had already been paid. In addition, National Defence had spent a further $516 million on the project including $270 million for infrastructure design and site preparation.
- The Joint Strike Fighter Program Office had conducted initial readiness assessments of Canada’s plans, such as facilities design reviews. The assessments discovered significant issues including insufficient departmental engineering personnel to service support equipment for both the CF‑18 Hornet and CF‑35A during the transition.
- National Defence’s approach to managing risks related to the Future Fighter Capability Project had weaknesses, lacking proactive measures to minimize the impact of potential threats, and the project did not have robust contingency plans.
Exhibit highlights
Planned CF-35A fighter aircraft delivery schedule
Text version
This timeline breaks down the total number of 88 CF-35A fighter aircraft by how many are scheduled to be delivered between 2026 and 2032.
From 2026 to 2027, 8 aircraft are scheduled to be delivered.
From 2028 to 2032, 80 aircraft are scheduled to be delivered.
In 2026 and 2027, the fighter aircraft are to be sent to Luke Air Force Base in Arizona. In 2028 to 2032, they are to be sent to Canada.
Source: Based on information from National Defence
Future Fighter Capability Project implementation timeline
Text version
This timeline shows the following phases and milestones:
2022: Arrangement finalized
2023 to 2026: Phase 1—Immediate actions: Workforce, plans, processes, and agreements are established leading to beginning pilot training for the CF‑35As in the United States.
Mid 2026: First aircraft at Luke Air Force Base in Arizona
2026 to 2029: Phase 2—Buildup: Interim infrastructure, maintenance, and other supports are set up to prepare for the first CF‑35As to arrive in Canada.
Late 2028: First aircraft in Canada
2029 to 2030: Phase 3—Road to Initial Operational Capability: CF‑35As are ready to conduct North American Aerospace Defense Command (NORAD) operations at 1 main operating base with 1 tactical fighter squadron, an air force unit of several fighter aircraft.
2030: Initial Operational Capability
2030 to 2032: Phase 4—Road to Enhanced Operational Capability: Three more tactical fighter squadrons are brought into service, progressively taking over more operational commitments from the retiring CF‑18 fighter aircraft fleet.
2032 to 2033: Phase 5—Road to Full Operational Capability: All CF‑35As are delivered. All operational commitments are fully transferred to the CF‑35A fleet. All the required workforce, training facilities and courses, infrastructure, weapons, sensors, maintenance, and logistics support elements are in place. An operational training squadron is brought into service.
2033: Full Operational Capability
Source: Based on information from National Defence
Air force fighter bases across Canada
Text version
This map shows the following:
Main operating bases—Where Royal Canadian Air Force (RCAF) fighters are stationed and conduct day‑to‑day operations and training. Locations: Cold Lake, Alberta, and Bagotville, Quebec
Other fighter locations—Where RCAF can deploy fighter aircraft. Locations: Inuvik and Yellowknife, Northwest Territories; Iqaluit, Nunavut; Comox, British Columbia; Winnipeg, Manitoba; Trenton, Ontario; Goose Bay, Newfoundland and Labrador; and Greenwood, Nova Scotia.
Source: Based on information from National Defence
The Future Fighter Capability Project cost estimates increased by 46% from 2022 to 2024
Text version
This stacked bar chart shows the estimated acquisition costs by category in 2022 and 2024:
2022: Total $19.0 billion
Aircraft: $10.0 billion
Contingency: $2.0 billion
Infrastructure: $1.3 billion
Weapons: $1.6 billion
Other: $4.0 billion
2024: Total $27.7 billion
Aircraft: $12.2 billion
Contingency: $6.2 billion
Infrastructure: $2.5 billion
Weapons: $2.5 billion
Other: $4.3 billion
Note: The dollar figures are rounded.
Source: Based on data from National Defence