Saab Lines Up CAE for Pilot Training if Canada Opts to Order Gripen Jet Fighters

By Robb M. Stewart

CAE has positioned itself to provide training in Canada for pilots of Saab's Gripen jet fighters, which the Swedish company is pitching to Ottawa as an alternative to Lockheed Martin's F-35s.

The companies said Friday they have signed a memorandum of understanding to deliver advanced fighter-pilot training and systems engineering, and to support Canada's capabilities, if the federal government chooses to add the Gripen E to the Royal Canadian Air Force's fleet.

Saab said CAE under the proposed arrangement would play a central role in establishing and operating a Canadian-based training ecosystem for Gripen pilots and technicians. The role of the Canadian company would also include development of Canadian-specific simulator capabilities and the delivery of live aircraft and technical training by Canadian personnel.

Saab is again seeking to sell the Gripen to Canada after Prime Minister Mark Carney's government last year said it was reviewing a 2023 deal to buy up to 88 of the U.S. jets.

Relations between Canada and the U.S. have been tense since President Trump took office and Washington adopted protectionist trade policies. Carney has pledged to continue lifting Canada's defense spending, focusing on awarding contracts to domestic firms, while also strengthening security ties with European partners.

Canada has become the first non-European country to join Europe's defense procurement pact, and Canadian officials in May entered into talks with Saab to acquire surveillance aircraft to help detect and deter threats in the Arctic that are based on an underlying platform supplied by Montreal-based Bombardier.

CAE and Saab said they would explore opportunities to support mission-systems development and sustainment in Canada, combining Saab's platform expertise with CAE's training, simulation and operational-support offerings. The proposed agreement includes collaboration on research and development on next-generation capabilities, they said.

"Saab's approach has always been to build real capability in the countries where we operate," Saab Chief Executive Micael Johansson said.

Saab shares rose 9.7% in Stockholm to 567 Swedish krona, while its American depositary receipts gained 11% to $29.43 in New York. CAE was about flat at 34.69 Canadian dollars.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

July 17, 2026 12:10 ET (16:10 GMT)