P-8A Poseidon aircraft

A U.S. Navy P-8A Poseidon aircraft assigned to Patrol Squadron 30 flies above the aircraft carrier USS Harry S. Truman (CVN 75), not pictured, in the Atlantic Ocean, Oct. 16, 2012. The P-8A replaced the P-3C Orion aircraft as the Navy’s standard maritime patrol aircraft. (U.S. photo by Mass Communication Specialist 2nd Class Mike DiMestico)

WASHINGTON — Canada has finalized an agreement to procure up to 16 Boeing-made P-8 Poseidon maritime patrol aircraft, the government announced today.

The deal, worth $5.9 billion USD, will cover 14 P-8A aircraft while leaving an option to purchase two more. Notably, the Canadian announcement cites an “estimated investment in this project” of $10.4 billion CAD, which is $7.7 billion USD. The gap between the price of the planes themselves and the overall project is likely tied to infrastructure investments which will be needed to host the new planes.

The new planes will replace Ottawa’s aging CP-140 Aurora fleet, in service for more than four decades and expected to retire by 2030. The first P-8A is expected in 2026, with all aircraft delivered “as early as fall 2027” and full operational capability online by 2033. The planes will be based at 4 Wing Greenwood, Nova Scotia and and 19 Wing Comox, British Columbia.

“After significant engagement and thorough analysis, we are confident that the P-8A delivers the best anti-submarine and intelligence, surveillance, and reconnaissance (ISR) capabilities for our country,” a statement from the Canadian Department of National Defence said. “The aircraft will operate seamlessly with allies. This platform is a proven capability that is operated by all our Five Eyes allies—the United States, the United Kingdom, Australia, and New Zealand—as well as other defence partners.”

The selection of the P-8 was not a surprise. Canadian officials had previously declared the P-8 the “only currently available aircraft” that can meet its military needs. But the quantity and dollar totals, as well as the timing of a finalized agreement, had not been clear until today. According to the CBC, Boeing’s draft offer was set to expire today.

According to the government release, Boeing will be making “targeted investments in Canadian industry” and incorporate Canadian firms into its global supply chain. The announcement claims the “potential” to create over 3,000 jobs and “contribute at least $358 million annually to Canada’s gross domestic product over a ten-year period.”

For Boeing, it’s a nice win in Canada after it lost out on the opportunity to replace Canada’s CF-18 fighters and a recent tanker aircraft competition. It also comes a week after Germany announced it is buying an addition three P-8s, translated locally as the P-8A Seefernaufklärer, bringing Berlin’s total to eight.

“The P-8 will bolster Canada’s defense capability and readiness, and we look forward to delivering this capability to the Royal Canadian Air Force,” Heidi Grant, president of Business Development for Boeing Defense, Space & Security said in a company statement. “Together with our Canadian partners, we will deliver a strong industrial and technological benefit package that guarantees continued prosperity to Canada’s aerospace and defense industry.”