Investment
Government Announces $11.2 Billion Investment in RCAF Aircrew Training
The government will be pouring $11.2 billion over the next 25 years into modernizing the Royal Canadian Air Force’s (RCAF) aircrew training.
The $11.2 billion investment is in the form of a contract with SkyAlyne Canada Limited Partnership for the Future Aircrew Training (FAcT) Program.
“Today’s investments demonstrate that when we work collaboratively with Canadian industry partners, we can provide our troops with the tools that they need to do their jobs – and support good jobs right across Canada. With these projects, and through our renewed vision for defence, Our North, Strong and Free, we are committed to building an even stronger relationship with industry, founded on transparency and trust,” said Bill Blair, Minister of National Defence, who made the announcement during the Canadian Association of Defence and Security Industries (CADSI) annual defence industry trade show, CANSEC, in late May.
Contract Details
The investment is being hailed as the “largest recapitalization” of the RCAF since the Second World War.
Under this contract, the RCAF will receive 70 training aircraft, according to the Department of National Defence (DND). These aircraft will be split into five fleets:
- Grob G120TP,
- Pilatus PC-21,
- Beechcraft King Air 260,
- Airbus Helicopters H-135, and
- De Havilland Dash 8-400.
The contract not only provides for vehicles but also will include instruction, simulator and flight training and other on-site supports for future RCAF Pilots, Air Combat Systems Officers, and Airborne Electronic Sensor Operators.
“Nothing is more important than our people. We must modernize our training systems as we are modernizing our front-line equipment and weapons systems. The Future Aircrew Training program will do that by incorporating the latest training concepts and technologies and adapting to emerging trends to ensure Royal Canadian Air Force personnel can operate and win in highly contested and increasingly complex theatres of operation,” said LGen. Eric Kenny, Commander RCAF.
Training will begin in spring 2029 and will take place at RCAF Wings in Saskatchewan and Manitoba, according to DND.
The investment is part of a larger effort to modernize the RCAF and the Canadian Armed Forces at large. Since 2022, the government has planned to procure or upgrade 140 new aircraft, such as F-35 fighters and P-8A Poseidon.
FAcT Program
The FAcT program contract replaces training services currently provided through in-house delivery by the RCAF and two additional contracts with CAE Military Aviation Training and Allied Wings.
The military says the program will deliver training services essential for members to graduate to Operational Training Units. The program will use sites currently already in use. For example, aircrew training for pilots, air combat system officers, and airborne electronic sensor operators will be conducted at 15 Wing Moose Jaw, Saskatchewan, Portage la Prairie, Manitoba, and 402 Squadron, at 17 Wing Winnipeg, Manitoba.
The program is also expected to create or sustain 3, 400 jobs and contribute $405 million into Canada’s economy over the next 25 years.
Canadian Army Investment
During the CANSEC trade show, Minister Blair also announced an investment of $2.58 billion to acquire and maintain a new fleet of logistics vehicles for the Canadian Army. The contract was awarded to General Dynamics Land Systems-Canada alongside Marshall Canada.
The project will help provide the Canadian Army with over 1,000 light trucks and approximately 500 heavy trucks. The contract also provides for equipment such as armoured protection kits, modules, containers, and trailers.
According to DND, the new fleet will allow the CAF to “transport larger loads of personnel, equipment, and supplies while also providing increased mobility and protection for CAF members.”
The vehicles are expected to be delivered in 2027 and will replace the vehicles that have been in use since the early 1980s and 1990s.
“These major contracts underscore Canada’s commitment to fortifying our national defence while simultaneously bolstering our industrial landscape. These programs showcase our dedication to equipping our Armed Forces with cutting-edge capabilities while propelling the growth of our defence sector. Through the Industrial and Technological Benefits Policy, we ensure that these investments not only strengthen our defence capabilities but also nurture the leadership of Canadian supply chains, fostering job creation and economic prosperity for years to come,” said François-Philippe Champagne, Minister of Innovation, Science and Industry.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
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