According to a leaked internal document from the Department of National Defence (DND), the anticipated lifetime cost of purchasing, owning, and operating Canada’s CH-148 Cyclone helicopters has risen to over $14.87 billion. The document, obtained by CBC News, indicates that most of this expense, approximately $10 billion, is attributed to sustaining the aircraft. It’s important to note that the CH-148 Cyclone is a unique maritime helicopter with no counterparts in other nations.
The revised cost estimate comprises the expenses associated with acquiring the helicopters, estimated at $3.7 billion, and sustaining and operating them until the late 2030s, estimated at $11.17 billion. The DND had previously sought an additional $111 million to augment the program’s budget in late 2021, a request that was eventually approved.
One aspect contributing to the increased cost is an existing in-service support contract with the manufacturer, estimated at $5.8 billion. However, the briefing document’s $10 billion figure for sustainment surpasses this amount. It is speculated that the disparity could be attributed to support required beyond 2038, considering Canada’s tendency to operate its aircraft well beyond their intended lifespans.
The DND has attributed recent cost escalations to “inflationary pressures” and maintains that it is not overpaying for spare parts. The Cyclone program has encountered delays, with the air force yet to receive the final two helicopters out of the original order of 28. The second-to-last helicopter is expected at the end of the following month, while the final aircraft is anticipated in 2025.
One concern highlighted in the briefing document is the federal government’s payment of $41.8 million for a radar warning system, which was originally included in the contract’s cost. Due to U.S. government technology transfer restrictions, Sikorsky, the manufacturer, was unable to provide the equipment. Instead, it had to be purchased separately from Lockheed Martin, which now owns Sikorsky.
The document also cited the need for additional funds to rectify flight software issues, modify frigate flight decks, and acquire more shipboard lights and filters for pilots wearing night vision gear. Retired colonel Larry McWha, an aviation expert, expressed surprise at these expenses and emphasized that such costs should have been part of the original contract.
While the briefing report placed much of the blame on Sikorsky for the program’s delays, experts have questioned whether the Canadian government bears any responsibility for the challenges encountered. Sikorsky responded, stating its commitment to finishing the remaining aircraft and ensuring the fleet meets Canada’s requirements.
The leaked document’s comprehensive assessment reveals the challenges and uncertainties associated with the CH-148 Cyclone program and its significant financial implications.