Airbus SE is exploring the possibility of manufacturing helicopters in Canada for worldwide export, contingent on securing upcoming government contracts. This move aligns with Canada's historic increase in defence spending and its push to expand domestic manufacturing jobs.
Airbus's Growing Ambitions in Canada
The European aerospace giant already employs over 5,000 people in Canada, its largest footprint outside Europe, with operations in Ontario and Quebec. Olivier Michalon, executive vice-president of global business for Airbus Helicopters, stated that the company is expanding its ambitions as Prime Minister Mark Carney's government seeks closer ties with Europe.
"Clearly, if Airbus helicopters are selected for any of the big upcoming campaigns and there is an industrial project tied to this contract, it's an opportunity to export what would be manufactured here to the worldwide market," Michalon said in Ottawa. "We're selling helicopters to 170 countries around the world, and not everything has to come necessarily from our main plants in France or in Germany."
Defence Industrial Strategy
Carney's government has launched a sweeping defence industrial strategy to spend more of its growing military budget at home and reduce reliance on U.S. suppliers. As part of this shift, it demands stronger job and investment commitments from foreign firms when purchasing their equipment.
Airbus briefed reporters ahead of the CANSEC defence-industry exhibition in Canada's capital, which drew up to 20,000 delegates, including defence ministers from Germany and Poland. The company is eyeing three major helicopter projects: for the Canadian Armed Forces, the Canadian Coast Guard, and the Royal Canadian Mounted Police.
Potential for Domestic Value and Exports
Michalon noted that Airbus has been in discussions with government officials about helicopter needs and how to generate more domestic value, and potentially exports, from Canada. He emphasized that Airbus is "province-agnostic" about where it would build helicopters, pointing to a success story with Spain, which was "in the same position as Canada" two decades ago and has since become one of Airbus's strongest regions.
"We've done it. We know how to do it," Michalon added.
Canada's Europe Pivot
Canada was long a NATO spending laggard but recently reached the target of directing two per cent of gross domestic product to defence and aims to hit five per cent by 2035. This pivot occurs as the U.S. pulls back from the alliance and imposes tariffs on Canada. Jean-Brice Dumont, head of air power at Airbus Defense and Space, noted that the shift is being felt "from the other side of the ocean," highlighting Canada's entry into the European Union's €150 billion Security Action for Europe (SAFE) fund, which gives Canadian firms access to EU-financed defence procurements.
