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Airbus, UK Defense Ministry withdraw from race to provide fighter jets to Canada

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Airbus, UK Defense Ministry withdraw from race to provide fighter jets to Canada

The U.K.'s Ministry of Defense and Airbus SE withdrew from a competition to potentially provide fighter planes to Canada, citing significant security requirements and a rule revision that eased the scale of economic benefits that needed to be delivered to Canadian businesses.

Airbus' defense unit said the security requirements from North American Aerospace Defense Command will result in high costs for platforms whose manufacturers and repair chains are located outside the U.S and Canada.

The company also noted that Canada's recent revision of industrial technological benefits obligations does not value the proposed binding commitments by Airbus and the U.K. Defense Ministry.

The Canadian government dropped a requirement in May for bidders to invest 100% of the deal value in Canada, paving the way for Lockheed Martin Corp. to stay in the race, Reuters reported. Airbus was ready to deliver economic benefits worth the deal value to Canadian businesses.