Canadian Jet Training Firm Capitalizes on European Defense Spending Surge
As European nations rapidly escalate their defense budgets in response to shifting global security dynamics, a Canadian company is experiencing unprecedented demand for its specialized military training services. Top Aces Inc., headquartered near Montreal, has positioned itself as a critical player in preparing air forces for modern combat scenarios.
Playing the Enemy Role in Realistic Training Exercises
The company operates a unique business model that involves acquiring legacy fighter aircraft and upgrading them with advanced systems to serve as realistic adversaries during training exercises. Top Aces pilots, many with extensive military backgrounds, typically assume the role of enemy forces during these simulations.
"We have very experienced pilots with the latest tactics," explained co-founder Paul Bouchard, a former CF-18 pilot with the Royal Canadian Air Force. "So Top Gun 1, the guys with the black helmets and the red star, the bad guys — well, that's the role we play."
This outsourcing approach allows defense departments to benefit from highly realistic training while minimizing wear and tear on their own operational fighter jets. The company's services are utilized across the United States, Europe, and Canada.
Major Contracts and Exponential Growth
Top Aces recently announced a significant 10-year contract with the German military valued at €420 million, marking the company's largest-ever agreement with a foreign nation. This follows a pattern of substantial growth for the Canadian firm.
Between 2021 and 2025, Top Aces more than doubled its flight hours while revenue increased more than threefold. The company's largest contract remains a $749 million agreement with the Canadian government signed in 2017, which is scheduled for renewal in 2029.
"The European business is really where right now we're experiencing a lot of growth," noted Bouchard, specifically mentioning NATO countries operating Lockheed Martin F-35 jets, including the Netherlands, Belgium, and Denmark.
Geopolitical Factors Driving Demand
The increased demand for Top Aces' services coincides with significant geopolitical shifts and defense spending increases across Europe. NATO countries committed last year to raising defense spending to five percent of gross domestic product by 2035, up from the previous two percent target.
"The world's become a more dangerous place in the last 10 years," Bouchard observed. "The Russians and Chinese have more and more advanced aircraft, and so to train effectively, air forces need to train against very capable aircraft from a flying performance and from a systems perspective."
This heightened security environment has created favorable conditions for defense contractors, with the Bloomberg Europe Defense Select Price Return Index surging approximately 80 percent over the past twelve months.
Future Expansion and Strategic Considerations
Top Aces, which currently operates a fleet of over 140 aircraft, is actively exploring expansion opportunities. The company is considering growing its fleet through a combination of cash reserves and debt financing to meet increasing market demand.
"It's an organic growth-based strategy, and it's really to just provide capacity to the market as demand materializes," Bouchard explained regarding the company's expansion plans.
Additionally, Top Aces is evaluating potential diversification into drone training services, recognizing evolving military technologies and training requirements. The company's success comes as Canada reevaluates its own defense procurement, having committed to purchasing 16 F-35 fighter jets while reviewing the remainder of an 88-jet order amid ongoing tensions with the United States.
As global security concerns continue to reshape defense priorities, Top Aces appears well-positioned to maintain its growth trajectory by providing essential training services to military forces adapting to increasingly complex aerial combat environments.
