Questions Loom for Used F-18 Fleet with Budget Officer Report

By: David Pugliese, The Ottawa Citizen 

The Defence department’s procurement chief says the Royal Canadian Air Force might not need the seven used Australian F-18 aircraft being purchased for parts afterall.

The first used Australian F-18 arrives at CFB Cold Lake earlier this month. It appears that not all 25 procured used jets will even be used. Australia has even asked for some of the engines be returned as a result of a shortage. 

Canada is buying 25 used F-18s from Australia, with 18 of those to be flown and seven to be either stripped down for parts or used for testing. The aircraft to be flown will augment the existing RCAF CF-18 fleet until a new generation fighter jet can be purchased.

But Pat Finn, the Department of National Defence’s Assistant Deputy Minister for Materiel, said there may be no need for the seven F-18s. “The seven, whether or not we actually take them at this point, we’re still looking at that,” Finn recently told the Commons defence committee. “What we’re actually finding is the number of spares that they’ve been able to provide to us is more than adequate. Rather than take aircraft apart and go through that cost, we’re taking the spares. We may not, in fact, at this point look at any of the seven.”

It is unclear whether there will be a reduction in the cost of the purchase or the overall project cost if the seven airframes are not acquired.

The DND also clarified what is happening with the engines on the Australian F-18s. Rumours have been circulating in the retired military community that the engines are being stripped out of the planes and given back to Australia.

“Only the engines from the first two Australian F-18s (four engines total) are being returned to Australia, at their request,” explained DND spokesman Dan Le Bouthillier. “Australia needs those engines to meet their own operational requirements.”

In order to take advantage of an advanced delivery date for the first two Australian aircraft, Canada agreed to return those aircraft’s engines to Australia, but the plan is to get an equivalent number of engines back at a later date, he added.

“Canada has sufficient engines in reserve to support this plan and this will have no impact on operations,” Le Bouthillier stated. “We therefore found this to be a reasonable request, and agreed to it.”According to the Parliamentary Budget Officer’s recent report provides more details about the used Australian F-18s that Canada is purchasing. Eighteen of the 25 will eventually be flying, while the other seven will be used for spare parts and testing.

Here are details taken from the PBO report:

According to PBO calculations, the Canadian fleet is both slightly older and has experienced more usage than the Australian fleet. The average Canadian F-18 had accrued over 6,000 flying hours by the end of the 2017-2018 fiscal year. These calculations are supported by media reports indicating that by 2014, the CF-18s had accumulated over 5,700 flying hours on average, with over a third of the fleet already having flown over 6,000.

Canada’s Department of National Defence has stated that the aircraft being purchased from Australia’s F-18 fleet are very similar to those currently in operation within the RCAF.
The fleet arrival profile consists of 2 aircraft in 2018-2019, 2 aircraft in 2019-2020, 8 aircraft in 2020-2021, and 6 aircraft in 2021-2022;
The aircraft will enter service approximately 6 months after being received;
The aircraft will each accumulate about 160 flying hours per year, in accordance with the recent experience of the Canadian CF-18 fleet;
Each Australian F/A-18 has accumulated an average of 6000 flying hours over the course of its operational history with the Royal Australian Air Force;.

Canada Finalizes Deal for 25 Australian F-18s; RCAF will fly used jets Summer 2019

By: David Pugliese, The National Post 

Canada has finalized a deal to buy 25 used fighter jets from Australia, the first of which are expected to be operating by this summer, says the top procurement official at the Department of National Defence.

Royal Australian Air Force F-18 Hornet pilots wave to the crowd as they taxi down the runway after performing during the Australian International Airshow at the Avalon Airfield near Lara southwest of Melbourne on February 24, 2015.PAUL CROCK/AFP/Getty Images

“The first two aircraft will be here this spring,” Pat Finn, assistant deputy minister for materiel at DND, told Postmedia in an interview. “I would say it could be by the summer the first couple are on the flight line and painted with the maple leaf.”

A second group of planes would arrive later this year. Eighteen of the Australian F-18 aircraft will eventually be flying for the Canadian Forces, while another seven will be used for testing and spare parts.

Canada is paying Australia $90 million for the aircraft. The federal government originally estimated the purchase of the Australian jets would cost around $500 million, but Finn said that price reflected every aspect of the associated deal, not just the cost of purchasing the jets. Canada is also acquiring extra spare parts, the Australian jets will have to be outfitted with specific Canadian equipment and software and testing will be needed.

The $500-million project estimate also included $50 million in contingency funds to cover any problems and another $35 million for the salaries of all civilian and military personnel involved over the life of the project. An additional $30 million will be spent on new infrastructure needed to accommodate the aircraft.

Royal Canadian Air Force CF-188 Hornet jets from 4 Wing Cold Lake, Alberta are refuelled by a KC-135 Stratotanker assigned to the 340th Expeditionary Air Refueling Squadron on October 30, 2014, over Iraq during the first combat mission in the area of operations, supporting Operation Inherent Resolve. U.S. Air Force Photo by Staff Sgt. Perry Aston

Those costs add up to $360 million, Finn said. But DND also plans to upgrade its existing fleet of CF-18s with new communications gear and equipment required to meet regulations to operate in civilian airspace, improvements which the Australian jets will also eventually receive at a cost of around $110 million, an amount that brought the original estimate to nearly $500 million.

The Liberal government had planned to buy 18 new Super Hornet fighter jets from U.S. aerospace giant Boeing to augment the Royal Canadian Air Force’s CF-18s until new aircraft can be purchased in the coming years.

But in 2017 Boeing complained to the U.S. Commerce Department that Canadian subsidies for Quebec-based Bombardier allowed it to sell its C-series civilian passenger aircraft in the U.S. at cut-rate prices. As a result, the administration of U.S. President Donald Trump enacted a tariff of almost 300 per cent against the Bombardier aircraft sold in the U.S. In retaliation, Canada cancelled the deal to buy the 18 Super Hornets, which would have cost more than US$5 billion.

Instead of buying the new Super Hornets, the Liberals decided to acquire the used Australian jets.

Defence Minister Harjit Sajjan has said the extra jets are needed to deal with a “capability gap,” as Canada does not have enough fighters to handle its commitments to NATO as well as protecting North America.

But Conservative MPs say the capability gap doesn’t exist and was concocted by the government to delay a larger project to buy new jets, a competition that might end up selecting the F-35 stealth fighter that during the 2015 election campaign the Liberals vowed never to purchase.

In the fall of 2016, then-Royal Canadian Air Force commander Lt.-Gen. Mike Hood told senators that the Liberal government brought in a policy change which required the RCAF to be able to meet both its NATO and North American air defence commitments at the same time. That, in turn, created the capability gap, he said. Hood said he was not told about the reasons for the policy change.

In November 2018 Auditor General Michael Ferguson issued a report noting that the purchase of the extra aircraft would not fix the fundamental weaknesses with the CF-18 fleet which is the aircraft’s declining combat capability and a shortage of pilots and maintenance personnel.

“The Australian F/A-18s will need modifications and upgrades to allow them to fly until 2032,” the report said. “These modifications will bring the F/A-18s to the same level as the CF-18s but will not improve the CF-18’s combat capability.”

“In our opinion, purchasing interim aircraft does not bring National Defence closer to consistently meeting the new operational requirement introduced in 2016,” Ferguson’s report added.

The Canadian Forces says it is bringing in new initiatives to boost the numbers of pilots and maintenance staff.

Liberals Press Ahead with Second-Hand F-18s Amid Questions Over Who Will Fly Them

The Canadian Press - The Kingston Whig-Standard 

The Trudeau government pressed ahead with its plan to buy second-hand fighter jets from Australia on Tuesday despite withering fire from the federal auditor general, who warned that the military might not have anybody to fly them.

A pilot prepares for take off in a CF-188 Hornet aircraft at Mihail Kogalniceanu Air Base in Romania during Operation REASSURANCE on Sept. 27. Last week, the auditor general released a report highlighting the pilot shortage faced by the Canadian Air Force and continued problems with procuring new fighter jets. CPL. DOMINIC DUCHESNE-BEAULIEU/POSTMEDIA

Six years after blowing up the Harper government’s plan to buy new F-35s without a competition, auditor general Michael Ferguson targeted the Liberals’ own attempts to buy jets. He first picked apart the government’s aborted plan to purchase “interim” Super Hornets to bolster Canada’s aging CF-18 fleet, and then its current plan to buy used Australian fighters.

The government says those extra fighters are needed to address a shortage of CF-18s until a state-of-the-art replacement can be purchased and delivered — a lengthy process that will run through 2032, at which point the CF-18s will be 50 years old.

But the auditor general’s office arrived at a very different conclusion: The military doesn’t need more planes because it doesn’t even have the pilots and mechanics to operate what it already has. What it really needs, the office found, is more people.

“The shortage of personnel in relation to technicians means that they don’t have enough technicians to prepare and maintain the planes,” Casey Thomas, the principal auditor on the fighter jets study, told reporters on Tuesday.

“And they have 64 per cent of the pilots that they need, so they don’t have enough pilots to fly the planes . . . What National Defence actually needed was to increase its personnel.”

The auditor general’s report also flagged concerns that the government’s plan to sink $3 billion into the current CF-18s and additional Australian fighters to keep them flying to 2032 won’t be enough, as the money won’t actually improve the aircrafts’ combat systems.

Without more money, which some analysts have suggested could mean hundreds of millions if not billions of dollars more, Canada’s fighter-jet fleet will become even more obsolete, to the point where the plans might not be any use at home or overseas.

Yet only a few hours after the auditor general’s report was released, Defence Minister Harjit Sajjan announced that the Liberals had signed a contract to buy the 18 second-hand jets from Australia. Officials have pegged the cost at around $500 million.

Sajjan also said he had directed officials to look at options for upgrading the combat systems on the CF-18s and Australian fighters, which he acknowledged would mean investing more money into aging fighter jets.

Missing from the announcement: Any new funding or other initiative to increase recruiting and retention of pilots and technicians.

Instead, Sajjan said the government and military have already introduced several initiatives through the Liberals’ defence policy last year, such as giving tax breaks to military personnel deployed on overseas missions, to give them reasons to stay.

At the same time, the minister sidestepped questions about recruitment, saying the military can’t reduce its standards for new pilots. He noted that commercial airlines are also facing a significant pilot crunch.

Air-force commanders have previously said the current training system, which can only produce 115 new pilots each year, a fraction of whom are fighter pilots, is not fast enough to replace all those who move on to commercial opportunities.

The subtext to much of the auditor general’s report on Tuesday was the question of how Canada ended up in a position where the military will be flying fighter jets until they are 50 years old.

The Liberals were urged early in their tenure to launch an immediate competition to replace the CF-18s. Instead they spent two years working to buy those stopgap Super Hornets before a trade dispute with the company that makes them, Boeing, saw the government move on to the used Australian jets.

The Trudeau government insists that it was doing its due diligence, but critics — including numerous retired air force and defence officials — have accused it of trying to bend procurement rules to avoid buying the F-35.

Yet even before the Liberals took the reins, the Harper government was having a hard time making any progress on buying new fighter jets. The Tories championed the F-35 before resetting the entire process in 2012.

That move was prompted by Ferguson’s first report, which accused defence officials of misleading parliamentarians about the stealth fighter’s costs and various technical issues. National Defence later pegged the full lifetime cost of the fighters at $46 billion.

“Lot of people had a hand in this,” said defence analyst David Perry of the Canadian Global Affairs Institute, adding that the worst part is there is no easy or obvious solution to what has become a very troubling situation for Canada and its military.

“I think our fighter force is in trouble.”

RCAF Ups Used-Aussie F-18 Purchase to 25

By: David Pugliese, Defence Watch 

Canada has boosted the number of used Australian fighter jets it is purchasing to 25 but the deal to acquire those aircraft still hinges on approval from the U.S. government.

A Royal Canadian Air Force CF-188 Hornet departs Marine Corps Air Station Miramar, California to conduct a mission as part of Exercise PUMA STRIKE 16-B on November 16, 2016. Photo: Cpl Manuela Berger, 4 Wing Imaging CK01-2016-1124-014

The Liberal government originally announced it would buy 18 used Australian F-18 jets to augment the Royal Canadian Air Force’s CF-18s until new aircraft can be purchased in the coming years.

But it has added seven more used Australian F-18 aircraft to the deal, the Department of National Defence has confirmed.

Those extra aircraft will be stripped down for parts, Dan Blouin, a spokesman for the DND, said Friday.

It is not known yet if the seven aircraft will be flown to Canada or shipped, he added.

The exact cost of purchasing the 25 aircraft, along with weapons and other equipment is not yet known as negotiations are still underway on the deal, Procurement Minister Carla Qualtrough recently told journalists. The Liberal government has set aside up to $500 million for the project.

An Australian Senate hearing was recently told that Canada was presented with a cost proposal from the Australian government last year. “They accepted our offer in December, but they have also put in a further request for some seven aircraft for system testing, training and spares,” Australian Air Vice Marshal Cath Roberts told the hearing.

The U.S. government is examining the deal and will have to give its approval to Australia before that country can sell the F-18s to Canada.

Approval is needed because the F-18s were built in the U.S. with American technology.

Canada is hoping for the U.S. approval sometime in the summer.

Although U.S.-Canada relations have hit a slump, with American President Donald Trump vowing to punish Canadians because of ongoing economic disputes, the DND does not expect that situation to affect approval for the fighter jet deal to proceed.

Pat Finn, the Department of National Defence’s assistant deputy minister of materiel, has said he expects that a deal will be in place by the end of the year with deliveries of the Australian planes to begin in the summer of 2019. The Liberal government originally planned for the arrival of the first used aircraft in January 2019.

The Liberal government had originally planned to buy 18 new Super Hornet fighter jets from U.S. aerospace giant Boeing.

But last year Boeing complained to the U.S. Commerce Department that Canadian subsidies for Quebec-based Bombardier allowed it to sell its C-series civilian passenger aircraft in the U.S. at cut-rate prices. As a result, the Trump administration brought in a tariff of almost 300 per cent against the Bombardier aircraft sold in the U.S.

In retaliation, Canada cancelled the deal to buy the 18 Super Hornets. That project would have cost more than US$5 billion.