The Government of Canada and Saab have entered into a non-binding term sheet agreement to establish the foundation for negotiations toward the potential acquisition of six GlobalEye aircraft. Announced on September 25, 2026, this step marks concrete progress in securing Airborne Early Warning and Control (AEWC) capabilities for the Royal Canadian Air Force (RCAF).

Strategic Defence and Industrial Goals

The agreement follows the Prime Minister's May 27, 2026 announcement identifying Saab as the preferred supplier. While not a contract, the term sheet outlines the scope for detailed discussions on a Canadian configuration, including industrial participation and schedules. This initiative aligns with Canada’s Defence Industrial Strategy (DIS) and the new "Build-Partner-Buy" framework, which prioritizes proven, off-the-shelf solutions from trusted allies.

The GlobalEye platform is designed to provide advanced airborne surveillance, command, and control capabilities. It will enable the RCAF to detect, track, and prioritize long-range threats, including aircraft, missiles, and drones. Operating as an airborne command center, the system aims to enhance situational awareness and strengthen contributions to NORAD modernization and continental defence, particularly in the Arctic.

Industrial Benefits and Supply Chain

A key objective is establishing Canada as a centre for future missionization and support activities. The GlobalEye is built on the Bombardier Global 6500, a Canadian-manufactured platform. This collaboration seeks to leverage domestic production strengths while creating skilled jobs and enabling Canadian supply chain participation.

What the Numbers Show

The source discloses a specific quantity of six aircraft but provides no total contract value or unit cost figures. Consequently, financial impact cannot be quantified from this announcement alone. The data highlights a strategic dependency on the Bombardier Global 6500 platform, linking defence procurement directly to existing Canadian aerospace manufacturing capabilities rather than a wholly new foreign supply chain.

Stakeholder Perspectives

Stephen Fuhr, Secretary of State (Defence Procurement), stated that the approach must defend Canadians while strengthening the economy and growing industrial capacity. David J. McGuinty, Minister of National Defence, described the agreement as a tangible step forward in equipping the RCAF with modern capabilities through early industry engagement.

Lieutenant-General Jamie Speiser-Blanchet, Commander of the RCAF, emphasized that AEWC is a key enabler of integration across the modernized force, connecting platforms, sensors, and decision-makers to improve operational speed and confidence.

The Government of Canada introduced Bill C-39, the Building Canada Strong Act, on Sept. 21, 2026, to mandate that federal reviews and decisions for infrastructure projects be completed within one year of a comprehensive application. The legislation aims to provide greater speed and certainty for investors while maintaining environmental standards and Indigenous rights.

The proposed act focuses on three primary pillars: accelerating project approvals, strengthening trade corridors, and modernizing the federal labor framework. By establishing clearer processes for proponents and Indigenous groups, the government intends to unlock private capital and enhance energy security.

Key Provisions of Bill C-39

The legislation includes specific measures to streamline operations across multiple sectors:

• Project Acceleration: Federal reviews will be capped at one year. This replaces previous timelines with a standardized process designed to give investors certainty.
• Trade Corridors: Canada will designate strategic trade corridors and establish a transportation project office to coordinate permitting. Port governance will be modernized to reduce administrative burdens.
• Labor Protections: Changes to the Canada Labour Code will strengthen collective bargaining. The government plans to hire 100 new health and safety officers, increasing inspection capacity by approximately 70%, and 26 new staff at the Canada Industrial Relations Board.

Investment Context

The introduction of Bill C-39 follows significant recent investment activity. Since September 2025, 27 nation-building initiatives have been referred to the Major Projects Office. These projects represent $200 billion in investments and aim to create a path to $500 billion in future private sector investment.

Over five years, government capital investments and incentives totaling about $280 billion are expected to enable more than $1 trillion in total investment from public, private, and institutional partners. Budget 2025 allocated $5 billion to the Trade Diversification Corridors Fund and $1 billion to the Arctic Infrastructure Fund to support these efforts.

What the Numbers Show

The scale of the government's financial commitment is substantial relative to the targeted private leverage. With $280 billion in public incentives aiming to unlock $1 trillion in total investment, the policy relies on a multiplier effect of approximately 3.6x. This structure indicates that the success of the Building Canada Strong Act depends heavily on the ability of private partners to deploy capital alongside public funding, rather than on public spending alone. The concentration of $200 billion in just 27 projects highlights a high-value, low-volume approach to nation-building.

Regulatory and Engagement Background

The measures were informed by cross-country engagement involving over 26,000 responses and 78 sessions with workers, unions, employers, Indigenous Peoples, and industry partners. The legislation builds on Bill C-5, the One Canadian Economy Act, which established a framework for projects of national interest. A parallel Cabinet Directive has been issued to enforce the one-year review timeline immediately, aligning decisions with economic growth, Indigenous reconciliation, and environmental protection priorities.