Prime Minister Mark Carney made a personal appearance at CANSEC in Ottawa on May 27 to announce that the federal government has selected Saab of Sweden as its preferred supplier for the Airborne Early Warning and Control (AEWC) program, opening the door to formal discussions on a deal that could bring advanced multi-domain surveillance to the Royal Canadian Air Force.

The initiative is being led by the Defence Investment Agency under the Honourable Stephen Fuhr, Secretary of State (Defence Procurement). The selection does not constitute a procurement commitment. What it does is move Canada into a negotiation lane with a supplier and a platform.

Saab's proposed solution is the GlobalEye, built on the Canadian-manufactured Bombardier Global 6500 aircraft. That's a meaningful detail. The airframe is made in Canada, which positions GlobalEye as something more than a foreign import. The government says the arrangement is expected to support domestic production, highly skilled jobs, technology transfer, and partnerships with Canadian industry.

The AEWC capability would give the RCAF advanced airborne command, control, and surveillance tools to detect, track, and respond to threats at long range, including in the Arctic. For a country trying to demonstrate renewed seriousness about NORAD modernisation and Arctic sovereignty, that framing is deliberate.

The same day Ottawa named Saab its preferred supplier, Saab announced it had signed a teaming agreement with CAE to pursue the Canadian program together.

The agreement builds on a Global Cooperation Agreement between Saab and CAE announced in November 2025, and is intended to deepen their collaboration and broaden the scope of cooperation across training and simulation.

Through the partnership, Saab aims to integrate CAE's expertise in training to deliver fully integrated and scalable training and simulation solutions for the Canadian Armed Forces. CAE, headquartered in Montreal, brings decades of defence simulation and training experience and an existing footprint inside the Canadian defence establishment.

Saab President and CEO Micael Johansson said GlobalEye delivers long-range detection and advanced situational awareness across air, maritime, and land domains, and described the Canadian program as a stepping stone for future opportunities.

CAE CEO Matt Bromberg called the agreement a reflection of the two companies' shared commitment to delivering innovative, integrated solutions that strengthen Canada's defence priorities.

The government has been deliberate in framing AEWC as an industrial opportunity, not just a capability purchase. The project is expected to generate long-term economic opportunities through Canada-based missionization work, technology integration, workforce development, and potential participation in global defence supply chains.

DIA CEO Doug Guzman said the initiative would help build the sovereign industrial capacity and technological expertise needed to support Canada's security and economic resilience over the long term.

That language tracks with Canada's Defence Industrial Strategy and the BUILD-PARTNER-BUY framework, which prioritises domestic industrial benefit alongside operational capability.

The Defence Investment Agency will lead further engagement with Saab in the coming weeks to explore commercial, technical, and economic considerations. No timeline for a contract has been announced.

With a preferred supplier now named and an industrial team taking shape, the program moves from concept into the hard work of negotiation.

At its core, the investment is about visibility—ensuring Canada can see, understand, and respond to activity in an increasingly contested orbital environment.

By 2028, MDA Space will establish three remotely operated telescope sites across Alberta, Manitoba, and New Brunswick. These installations will provide persistent, reliable surveillance of objects in orbit, forming a critical component of Canada’s evolving space surveillance architecture.

The ground-based optical systems will operate in tandem with existing space-based sensors, creating a more resilient and comprehensive capability for monitoring space activity. This layered approach enhances Canada’s ability to detect, track, and characterize objects in orbit—whether they are satellites, debris, or potential threats.

Lieutenant-General Jamie Speiser-Blanchet, Commander of the Royal Canadian Air Force, emphasized the operational significance of the capability:

“The delivery of the ground-based optical capability represents a significant advancement in Canada’s ability to monitor and safeguard the space domain. These advanced telescopes will provide persistent, reliable, ground-based surveillance and will operate in tandem with our space-based sensors under Surveillance of Space 2. Space-based systems are vital to the daily lives of Canadians and to the success of joint missions with our allies. Enhancing our space awareness directly strengthens our commitments to NORAD and to our partners as we continue to ensure the security of Canadians.”

The importance of space-based systems extends far beyond military operations. Everyday activities—from banking and communications to navigation, agriculture, and weather forecasting—depend on secure and reliable satellite infrastructure. Recognizing this, the Government of Canada is positioning space as a cornerstone of both national security and economic resilience.

The Honourable David J. McGuinty, Minister of National Defence, highlighted the broader implications of the project:

“Canada’s security and prosperity depend on our ability to understand and protect the space domain. The Surveillance of Space 2 project represents a major step forward in strengthening our sovereignty, modernizing our space capabilities, and safeguarding critical satellite infrastructure that Canadians rely on every day.”

Beyond its strategic value, the contract is expected to deliver tangible economic benefits. The project will create or support close to 80 jobs annually and contribute approximately $9 million to Canada’s GDP each year over the next six years. It also reinforces Canada’s position within a rapidly expanding global space economy, projected to reach approximately $2 trillion by 2040. With Canada’s space sector already contributing an estimated $3.4 billion to GDP, investments like SofS 2 are designed to ensure Canadian companies remain competitive on the world stage.

The Honourable Jill McKnight, Minister of Veterans Affairs and Associate Minister of National Defence, pointed to the regional and industrial impact:

“Projects like Surveillance of Space 2 demonstrate how Canadian expertise, right here in British Columbia, pushes the boundaries of what we will achieve in space and defence. Supported by the Defence Investment Agency and guided by Canada’s Defence Industrial Strategy, this investment will both create highly skilled jobs in the region and will modernize Canada’s space capabilities for the challenges of tomorrow.”

The Surveillance of Space 2 contract also reflects a shift in how Canada delivers defence capabilities. By leveraging streamlined processes and existing approval authorities, the DIA was able to move the procurement forward more quickly than under traditional models. This approach is central to the government’s broader effort to modernize defence procurement—reducing delays, centralizing expertise, and accelerating the delivery of mission-critical equipment to the Canadian Armed Forces.

The Honourable Stephen Fuhr underscored the dual focus on capability and industrial growth:

“Canada’s security depends on the space-based systems that enable everything from communications and navigation to weather forecasting and emergency response. Today’s contract award to MDA Space will deliver the capabilities the Canadian Armed Forces need while growing Canada’s world-class space sector and creating good-paying jobs. With the Defence Investment Agency and our Defence Industrial Strategy, we are streamlining procurements and building the sovereign capabilities that will ensure Canada remains a leader in this crucial domain.”

Canada’s investment in space surveillance is not occurring in isolation. The capabilities delivered through SofS 2 will contribute directly to key international partnerships, including the North American Aerospace Defense Command (NORAD) and Multinational Force – Operation Olympic Defender. These alliances rely on shared data and coordinated awareness of the space domain to ensure collective security. By enhancing its own capabilities, Canada strengthens its role as a trusted partner in these networks.

Mike Greenley, Chief Executive Officer of MDA Space, reflected on the broader operational context:

“As space becomes more contested, congested and competitive, persistent surveillance and space domain awareness provide the Canadian Armed Forces and trusted allies with a better understanding of what is happening in a complex environment they can’t otherwise see. With decades of proven expertise providing defence and security, MDA Space is honoured to once again be selected as a trusted mission partner to Canada and to the Department of National Defence .”

The Surveillance of Space 2 project sits within a larger transformation of Canada’s defence ecosystem. Through the Defence Industrial Strategy and the establishment of the Defence Investment Agency, the government is aligning long-term defence spending with domestic industrial capability.

The goal is clear: build sovereign capabilities, strengthen supply chains, create high-value jobs, and ensure the Canadian Armed Forces are equipped to meet emerging threats.

As space becomes an increasingly contested and indispensable domain, Canada’s latest investment signals a long-term commitment—not only to protecting what lies above, but to securing the prosperity and safety that depend on it.