The Canadian aerospace sector is experiencing a significant revival, buoyed by a monumental order from Airbus SE for 150 A220 jets, a deal valued at an impressive US$19 billion. Announced in May at a lively press event in Mirabel, Quebec, the order has been hailed as the largest in history for a Canadian-made commercial aircraft, surpassing prior records held by Bombardier Inc. This burgeoning demand signals a robust recovery for the industry, laying a foundation for future growth and job creation.
A Milestone Order
The excitement surrounding the Airbus announcement was palpable, with Prime Minister Mark Carney and key executives from both Airbus and AirAsia participating in the celebrations. The Prime Minister’s personal involvement in discussions with AirAsia’s CEO Tony Fernandes marked a notable shift in Canadian governmental support for domestic manufacturing, akin to practices in the United States and France. This proactive approach has underscored the strong global demand for Canadian-made products, even amidst ongoing international trade tensions.
Airbus executives heralded this deal as a pivotal moment for Canada’s aerospace landscape, projecting thousands of high-skilled jobs and reaffirming the nation’s manufacturing prowess. The event served not only as a celebration but as a clear indication that the sector is moving beyond the constraints imposed by the COVID-19 pandemic, with an optimistic outlook for the coming years.
Growth and Opportunities Amid Challenges
Executives across the aerospace industry, including Bombardier and de Havilland, are currently grappling with record backlogs and positioning themselves to capitalise on anticipated increases in defence spending. As demand for aircraft continues to surge, the industry is aiming to overcome supply chain disruptions and labour shortages. Bombardier CEO Éric Martel expressed optimism, noting that despite geopolitical tensions, demand has remained steady, citing a “golden moment” for the sector.
In the last five years, Canada’s aerospace manufacturers have significantly increased revenues, with a reported 76 per cent rise to $45.7 billion. Exports in the field have also seen impressive growth, with shipments climbing to $28.2 billion in 2025, up 54 per cent since 2021. This upward trend is largely driven by increased exports to Europe and Asia, positioning Canada as a leader in the global aerospace market.
Strategic Developments Across the Sector
The growth narrative extends beyond large manufacturers; smaller parts suppliers are also expanding rapidly. Companies like Héroux-Devtek and Groupe Meloche are pursuing acquisitions to enhance their capabilities and compete more effectively in the global market. After a tumultuous period during the pandemic, these firms are now focusing on scaling operations and solidifying partnerships with larger aerospace players.
De Havilland Canada is taking significant steps to enhance its infrastructure with a new 1,500-acre campus near Calgary, which will include an assembly plant and training facilities. This investment illustrates the company’s long-term commitment to expanding its footprint in the Canadian aerospace sector, with ambitious plans for new aircraft production and potential collaborations in defence contracts.
Workforce Challenges and Future Prospects
Despite the optimistic outlook, the industry faces pressing challenges, particularly in workforce development. With an estimated need for 65,000 new aerospace workers within the next decade, the sector is at risk of falling short if training initiatives do not increase. The Quebec government has recently announced measures to bolster the training of aerospace workers, recognising the critical importance of skilled labour in sustaining growth.
Moreover, the ongoing struggle to balance labour supply with increasing demand has led to concerns about production capacity. As senior workers retire, companies are finding it increasingly difficult to recruit and train new skilled employees. Partnerships between educational institutions and aerospace companies have been established to address this gap, but many believe more robust policies and funding are necessary to ensure a steady supply of talent.
Why it Matters
The resurgence of the Canadian aerospace industry is not just a win for manufacturers but a significant opportunity for the entire economy. As the sector expands, it promises to create thousands of well-paying jobs and stimulate economic growth. However, for Canada to maintain its competitive edge, it must invest in talent development and strategic planning. Establishing a comprehensive national aerospace policy is essential to navigate future challenges and enhance the country’s standing as a global aerospace leader. With the right support, Canada has the potential to emerge from the shadows of the pandemic as a formidable force in the international aerospace arena.
