Minister of National Defence Welcomes Auditor General’s Report on Canada’s Future Fighter Jet Capability

The Canadian government promises to continue modernizing the Royal Canadian Air Force (RCAF) fleet, confirmed the Minister of National Defence in a statement following the tabling of the Auditor General of Canada’s report.

The report, tabled earlier this month, focused on the fighter force and touched on recommendations surrounding the Future Fighter Capability Project (FFCP).

“I welcome the AG’s report on the administration of the fighter project,” said DND Minister David McGuinty. “It lays out the tireless efforts by the Royal Canadian Air Force (RCAF) and the Government of Canada to implement the fighter capability on time.”

The FFCP, which includes 88 new fighter jets and supporting infrastructure, is described as a generational investment in national defence.

“This project will provide Canada with an invaluable air defence capability that will continue to support the RCAF well into the future,” McGuinty said. “The FFCP represents the greatest investment in the RCAF since the Second World War.”

Investing in a capable fleet

The minister reaffirmed that the Government of Canada remains focused on delivering a modern and effective fleet for the RCAF. Referencing defence policies from 2017 and 2024, McGuinty highlighted the project’s alignment with long-term strategic goals.

“The aim is to provide the RCAF with a fighter fleet that will be capable, lethal, survivable, upgradeable, resilient, and interoperable with our allies’ and partners’ fleets. This will enable Canada to continue to meet its North American Aerospace Defense (NORAD) and North Atlantic Treaty Organization (NATO) commitments,” he added.

Following-Up on Auditor General’s Recommendations

The minister detailed a series of steps being taken in response to the 30-page Auditor General’s recommendations, signalling a proactive approach to project oversight.

“We have put in place an approved and updated risk management plan… ensuring there are appropriate mitigation strategies in place,” McGuinty stated. He added that the government will also “update and refine a master implementation plan” and “review the FFCP cost estimates on an annual basis.”

The defence minister also emphasized efforts to improve transparency. “We will communicate on milestones achieved on discrete projects in order to be transparent in public reporting.”

Increased costs acknowledged

McGuinty acknowledged the rising costs of the Future Fighter Capability Project (FFCP), noting that initial estimates have been surpassed due to external economic pressures.

“When the government finalized the arrangement to acquire the CF‑35As, the estimated costs were $19 billion. The audit found that this figure was based on outdated information. By 2024, the estimated costs had increased to $27.7 billion—almost 50% more—and did not include other elements needed to achieve full operational capability, such as essential infrastructure upgrades and advanced weapons. These would add at least another $5.5 billion to the total cost,” noted the Auditor General’s report.

The Defence Minister’s statement noted, “The increased cost to the FFCP is the result of external economic conditions driven by the COVID-19 pandemic, including global supply chain disruptions, workforce shortages, and increased inflation and foreign exchange rates,” he explained. “This increase included additional contingency funding to enable our ability to better mitigate potential economic risks and uncertainty in the future.”

Despite the higher costs, the minister emphasized that efforts are underway to ensure responsible spending. “We will continue to work closely with our partners to actively manage costs throughout the duration of this project to ensure that the best value is being provided to Canadians.”

Looking to the future

The minister emphasized the critical role of fighter aircraft in safeguarding Canadian sovereignty and contributing to global security efforts.

“Canada needs fighter aircraft to protect the sovereignty of Canadian airspace and ensure the safety and security of Canadians,” he said. “Abroad, fighter aircraft are a critical contribution to NATO operations or other Coalition operations, where they operate to deter aggression or conducting air campaigns.”

McGuinty concluded his statement by confirming the federal government is reviewing the broader military procurement framework to improve efficiency and support domestic industry.

“This effort will clarify mechanisms to facilitate the timely delivery of military equipment,” he said, “and look at how best to leverage existing programs to strategically invest in the domestic capacity building.”

“I will ensure that the AG’s recommendations are fully integrated and that the best value continues to be provided to Canadians,” McGuinty affirmed.

[READ THE AUDITOR GENERAL’S REPORT HERE]

Read the full statement below.

June 10, 2025 – Ottawa, Ontario – National Defence / Canadian Armed Forces

Following the tabling of the Auditor General of Canada’s (AG) report on Canada’s fighter force, the Minister of National Defence, The Honourable David McGuinty, issued the following statement:

“I welcome the AG’s report on the administration of the fighter project. It lays out the tireless efforts by the Royal Canadian Air Force (RCAF) and the Government of Canada to implement the fighter capability on time.

“As articulated in Canada’s 2017 defence policy, Strong, Secure, Engaged, and reaffirmed in our 2024 defence policy update, Our North, Strong and Free, the Government of Canada is investing in a modern fleet of fighter jets to support RCAF operations now and into the future.

“The aim is to provide the RCAF with a fighter fleet that will be capable, lethal, survivable, upgradeable, resilient, and interoperable with our allies’ and partners’ fleets. This will enable Canada to continue to meet its North American Aerospace Defense (NORAD) and North Atlantic Treaty Organization (NATO) commitments, and execute any other missions assigned to Canada.

“The Government of Canada takes these findings seriously, and is taking several steps to address the AG’s recommendations:

We have put in place an approved and updated risk management plan to formally and regularly identify all known Future Fighter Capability Project (FFCP) risks ensuring there are appropriate mitigation strategies in place.

We will update and refine a master implementation plan to manage project activities in accordance with the Integrated Master Schedule. As with all major projects, the plans for the FFCP are evergreen, and will continue to be monitored and updated when required.

We will review the FFCP cost estimates on an annual basis, or more frequently should significant issues be identified.

Additionally, we will communicate on milestones achieved on discrete projects in order to be transparent in public reporting.

“The Future Fighter Capability Project value— which includes the costs for 88 fighter aircraft, associated equipment, sustainment set-up and services, training and information services, as well as construction of Fighter Squadron Facilities—has increased since initial estimates.

“The increased cost to the FFCP is the result of external economic conditions driven by the COVID-19 pandemic, including global supply chain disruptions, workforce shortages, and increased inflation and foreign exchange rates. In combination with increased global tensions and related impacts on the availability and demand for materials, we would not have been able to deliver the full scope of this project under our previous budget. This increase included additional contingency funding to enable our ability to better mitigate potential economic risks and uncertainty in the future.

“We will continue to work closely with our partners to actively manage costs throughout the duration of this project to ensure that the best value is being provided to Canadians. The FFCP represents the greatest investment in the RCAF since the Second World War. This project will provide Canada with an invaluable air defence capability that will continue to support the RCAF well into the future.

“It is critical to note that Canada needs fighter aircraft to protect the sovereignty of Canadian airspace and ensure the safety and security of Canadians. Through the NORAD alliance, the RCAF makes substantial contributions to continental defence, generating the vital capabilities required to detect, deter, and defeat threats to Canada and, by extension, North America. Abroad, fighter aircraft are a critical contribution to NATO operations or other Coalition operations, where they operate to deter aggression or conducting air campaigns.

“Additionally, I would like to highlight that the Government of Canada is currently reviewing the defence procurement system, including examining internal processes used by the Department of National Defence to define requirements and approve projects, and looking at the broader set of rules, regulations, and policies that govern military procurement. This effort will clarify mechanisms to facilitate the timely delivery of military equipment and look at how best to leverage existing programs to strategically invest in the domestic capacity building.

“I will ensure that the AG’s recommendations are fully integrated and that the best value continues to be provided to Canadians.”