The decision by Prime Minister Mark Carney’s government to move forward with the selection of Saab’s GlobalEye as the future AEW&C platform for the Royal Canadian Air Force has once again fueled speculation about the future of Canada’s F-35 program. While Ottawa has not officially announced any changes to its contract with Lockheed Martin for 88 F-35As, a series of media reports, statements by Saab executives, and recent political developments have fueled claims that Sweden’s Gripen E is regaining momentum as an alternative.
These speculations did not emerge in a vacuum. For more than a year, the Canadian government has kept the F-35 acquisition under political review amid deteriorating relations with Washington, trade disputes driven by the Trump administration, and growing pressure to reduce strategic dependence on U.S. suppliers.
The announcement made during CANSEC 2026 marked a turning point. Canada confirmed that Saab is the preferred supplier for its future Airborne Early Warning and Control (AEW&C) program based on the GlobalEye platform. According to Prime Minister Carney, the decision reflects both operational and industrial considerations, as the system is expected to strengthen Arctic surveillance while increasing Canadian industrial participation in aircraft production and sustainment.
- Has Canada canceled its F-35 contract?
No. There is no official confirmation of any cancellation. The contract for 88 F-35As remains in force, although it continues to be subject to political review.
- Why are reports of a Gripen selection gaining traction?
Because the selection of Saab’s GlobalEye, Saab’s proposals for local production, and the government’s stated intention to reduce dependence on U.S. suppliers have all reinforced interest in the Gripen and its industrial package.
- What advantages does the Gripen offer according to Saab and government sources?
Local production and technology transfer opportunities in Canada, lower operating costs, and greater technological sovereignty over maintenance and upgrades.
- Would operating both the F-35 and Gripen be viable?
It is considered unlikely due to the substantial logistics and sustainment costs associated with maintaining two different fighter fleets.
- What impact could a Gripen production line in Canada have?
It could generate work on dozens of aircraft over the next fifteen years, integrate Canada into European defense supply chains, and support exports and military assistance initiatives involving countries such as Ukraine.
Canada Begins Formal Negotiations with Saab Over GlobalEye AEW&C System
The program includes the acquisition of six GlobalEye aircraft and could open the door to manufacturing aircraft in Canada not only for the Royal Canadian Air Force but also for future international customers, potentially generating industrial work associated with dozens of aircraft over the next fifteen years.
Although the Canadian government has done nothing to encourage speculation that the selection of the Swedish AEW&C system is linked to a renewed evaluation of the Gripen, several Canadian media outlets argue that the two issues are closely connected.
Is the Gripen Back?
The newspaper La Presse reported that sources close to government discussions believe a decision regarding Canada’s future fighter fleet has effectively been made and that interest in the Gripen option is growing within government circles. According to the publication, the appeal lies not only in the aircraft itself but also in the associated industrial proposals, including local production, technology transfer, and participation in future export programs.
That industrial component appears to have become one of Saab’s strongest arguments.
During CANSEC 2026, Saab Executive Vice President Anders Carp stated in remarks reported by The Canadian Press and later cited by CTV News that Canada could become a production and export hub for the Gripen should Ottawa select the Swedish proposal. He even suggested that some aircraft destined for Ukraine could eventually be manufactured in Canada.
The comments came only days after Sweden and Ukraine announced an agreement covering the acquisition of up to 20 Gripen Es, complemented by the future transfer of 16 Gripen C/D units from the Swedish Air Force. Saab argues that a Canadian production line could become part of that broader European industrial effort, giving Ottawa a role within a supply chain directly linked to military support for Ukraine.
Sweden and Ukraine agree on the purchase of up to 20 Gripen E/F fighters and the donation of 16 Gripen C/Ds
Saab’s narrative also aligns with Carney’s broader political strategy. According to The Guardian, the Canadian government is seeking to gradually reconfigure its defense supply chains in order to reduce dependence on U.S. suppliers and strengthen ties with European partners. The selection of GlobalEye over American alternatives such as the Boeing E-7 Wedgetail and the L3Harris Aeris X has been interpreted by several analysts as a concrete signal in that direction.
The F-35 Remains the Main Obstacle to Any Change of Course
Canada has already signed a contract for 88 F-35As and committed funding for the first aircraft. In addition, Canadian industry has participated for years in the global Joint Strike Fighter industrial structure through numerous domestic companies integrated into the F-35 supply chain.
There is also a strictly operational dimension. The F-35 continues to offer low-observable capabilities, sensor fusion, and integration within multidomain combat architectures that would be difficult for any advanced fourth-generation platform to replicate, including sophisticated designs such as the Gripen E.
However, the challenges surrounding the program have also become more visible. As highlighted in a previous report, projected acquisition and sustainment costs for Canada’s F-35 fleet continue to rise, while official audits have warned of delays and challenges that could affect the fleet’s entry into service. That context has strengthened the arguments of those advocating for a solution offering greater industrial autonomy and lower operating costs.
Another factor influencing the debate is the concept of technological sovereignty. Saab has long argued that Canada would enjoy significantly greater access to the maintenance, modernization, and future evolution of the Gripen platform, reducing dependence on external approvals for certain capabilities and upgrades. That argument carries particular political weight at a time when Ottawa is seeking to reduce its vulnerability to potential tensions with Washington.
For now, there is no official confirmation that Canada intends to cancel its F-35 contract or that the Gripen has been selected. It also remains unlikely that Ottawa would operate a mixed fleet of F-35s and Gripens given the associated logistics and sustainment costs.
Nevertheless, Saab’s recent success with the GlobalEye program, the ongoing review of the F-35 acquisition, promises of local production, and new industrial opportunities linked to Ukraine have once again turned the Gripen into a central player in one of NATO’s most closely watched fighter acquisition programs.
What until recently appeared to be a competition decisively won by the F-35 is once again showing signs of uncertainty. This time, however, the debate extends far beyond the technical capabilities of either aircraft. It touches on industrial sovereignty, strategic autonomy, and the role Canada seeks to play within the evolving architecture of Western defense.