Airbus SE is setting its sights on enhancing its defence operations within Canada, as the European aerospace leader aims to strengthen its ties with the Canadian government amid a pivotal moment for the nation’s military sovereignty. Guillaume Faury, Airbus’s Chief Executive Officer, recently engaged with senior Canadian lawmakers in Ottawa to gain insights into the government’s defence industrial strategy and to explore collaborative opportunities that could benefit both parties.
A Turning Point for Canadian Defence
Faury emphasised that Canada is at a critical juncture regarding its military independence, necessitating alliances with nations that share similar values and objectives. “It seems to me that it is very legitimate for Canada and Airbus to have things to do together and to write a long-term roadmap,” he expressed during a media interaction in Montreal. He believes that Airbus could serve as a valuable partner in this endeavour, building on its established presence in Canada.
Opportunities in Helicopter Manufacturing
One of the most immediate prospects for Airbus lies in helicopter production. The company manufactures a diverse array of helicopters for over 140 military forces globally, including models for attack, reconnaissance, and utility purposes. Faury outlined additional opportunities in transport aircraft, tankers, and space technology. Notably, Airbus, alongside Leonardo and Thales, has initiated a joint venture aimed at competing with Elon Musk’s Starlink by merging their satellite and space operations.
As Canada increases its defence spending, the government is prioritising the bolstering of domestic industries to enhance its military capabilities. Prime Minister Mark Carney has made it clear that reliance on the United States for protection is no longer a viable strategy.
Significant Investment in Defence
The Canadian government’s budget for the fiscal year 2025-26 marks a historic commitment, with defence expenditures reaching 2 per cent of the country’s gross domestic product for the first time in nearly 35 years. This represents a significant shift in policy as Canada allocates over $63 billion annually to modernise and strengthen its Armed Forces. According to a recent NATO report, this expenditure has surged more than 65 per cent since 2014.
“The threats we face are numerous and growing – ranging from incursions into our Arctic to attacks targeting our cyberspace,” Carney stated in a recent speech in Halifax. “The world has changed, and Canada must change with it.” This recalibration of defence priorities underscores the urgency for Canada to enhance its military capabilities.
Airbus’s Commitment to Canadian Operations
Canada holds a crucial position for Airbus, being the company’s largest operational base outside the European Union, employing approximately 5,000 individuals, predominantly in Quebec. The Mirabel facility, located about 50 km northwest of Montreal, is responsible for manufacturing the A220 single-aisle jetliner, a programme Airbus acquired from Bombardier Inc. in 2018. Additionally, Airbus produces helicopters in Fort Erie, Ontario, which are utilised for various applications, including firefighting and offshore energy operations.
The defence sector is a significant revenue stream for Airbus, contributing about 18 per cent to its total annual revenue of €73.4 billion (approximately $118 billion) in 2025. However, this division has faced substantial challenges, including financial setbacks in satellite operations and supply chain disruptions. To address these issues, Airbus is exploring strategies to enhance operational scale.
In 2023, the Canadian government awarded Airbus a contract valued at $3.6 billion for a fleet of nine aircraft designated for military midair refuelling, medical evacuations, and strategic transport. The agreement includes the procurement of four new Airbus A330 tanker transport planes and five used A330 jets, with the first delivery anticipated in 2027. Complementing this, Ottawa has also allocated contracts worth $1.5 billion for the long-term maintenance of these aircraft, known as CC-330 Husky, with L3Harris MAS Inc. securing the majority of the maintenance work while Airbus will contribute $375 million for engineering support.
Why it Matters
The evolving landscape of Canadian defence policy marks a significant shift in the nation’s approach to military sovereignty and international partnerships. As Canada invests heavily in modernising its Armed Forces, the collaboration with Airbus not only enhances the country’s defence capabilities but also strengthens the domestic aerospace industry. This partnership signals a broader commitment to self-reliance in national security, positioning Canada as a key player in global defence initiatives amid increasing geopolitical tensions.
