Airbus SE is poised to enhance its defence presence in Canada as the company’s CEO, Guillaume Faury, engages with senior government officials to align with Ottawa’s evolving military strategy. With Canada embarking on a significant shift in its defence posture, Airbus aims to leverage its existing operations in the country to establish a lasting partnership that addresses the nation’s security needs.
A Pivotal Moment for Canada’s Defence
During his recent visit to Ottawa, Faury expressed his belief that Canada stands at a crucial juncture regarding its military sovereignty. He emphasized the necessity for Canada to forge cooperative agreements with allies sharing similar values. “Canada is now at a turning point moment in its military sovereignty,” Faury noted during a media briefing in Montreal. “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.”
Faury’s remarks reflect Canada’s strategic direction under Prime Minister Mark Carney’s government, which is boosting defence spending to strengthen domestic capabilities amid global uncertainties. This increased investment is seen as essential for reducing reliance on external powers, particularly the United States.
Expanding Opportunities in Defence Manufacturing
Airbus is keenly aware of the opportunities within the Canadian military landscape, particularly in helicopter manufacturing. The company is renowned for producing various helicopter models used by over 140 armed forces worldwide, and Faury highlighted the potential for collaboration in this area. “There are also opportunities in transport planes, tankers and space equipment,” he added, indicating a broad scope for partnership.
Last year, Airbus, in collaboration with Leonardo and Thales, announced a new joint venture aimed at competing in the satellite and space sector, a move that aligns well with Canada’s interests in technology and defence.
Significant Defence Investments on the Horizon
The Canadian government’s defence budget for the fiscal year 2025-26 marks a historic commitment, allocating 2% of the country’s gross domestic product to military expenditures for the first time in approximately 35 years. This shift is partly driven by increasing threats, from Arctic incursions to cyberattacks, as outlined by Prime Minister Carney in a recent speech in Halifax. “We know that the world has changed, and that Canada must change with it,” he asserted.
Currently, Canada spends over $63 billion annually to modernise its Armed Forces, a figure that has surged by more than 65% since 2014. This investment is crucial not only for upgrading military capabilities but also for fostering a robust domestic defence industry.
Airbus’s Growing Footprint in Canada
Airbus has established a significant operational footprint in Canada, employing around 5,000 individuals, primarily in Quebec. The company’s manufacturing hub is located in Mirabel, approximately 50 kilometres northwest of Montreal, where it produces the A220 single-aisle jetliner. Additionally, Airbus manufactures helicopters in Fort Erie, Ontario, which are deployed in various sectors, including firefighting and offshore energy operations.
The company’s defence sector represents approximately 18% of its annual revenue, which was reported at €73.4 billion (approximately $118 billion) for 2025. Despite facing challenges such as satellite losses and supply chain disruptions, Airbus is actively seeking to scale its operations to mitigate these issues.
Earlier this year, the Canadian government awarded a landmark $3.6 billion contract to Airbus for the provision of nine aircraft intended for military use, which will include both new and used A330 tanker transport planes. The first delivery is anticipated in 2027, marking a significant step in modernising Canada’s air capabilities.
Why it Matters
The evolving defence landscape in Canada presents a critical opportunity for Airbus to solidify its partnership with the Canadian government. By aligning its manufacturing capabilities with the nation’s strategic objectives, Airbus not only positions itself as a key player in the defence sector but also contributes to strengthening Canada’s military sovereignty. As geopolitical tensions continue to rise, the importance of such collaborations cannot be overstated, reflecting a broader shift towards enhanced national security and economic resilience.