GE Aerospace and Magellan sign MOU for Gripen E engine MRO in Canada

Key Points

• GE Aerospace and Magellan Aerospace signed an MOU on July 22, 2026, to establish F414 engine maintenance capability in Canada for the Gripen E fighter.
• The agreement is contingent on whether Canada selects the Saab Gripen E as part of its still-unresolved Royal Canadian Air Force fighter fleet decision.

GE Aerospace and Magellan Aerospace Corporation announced Wednesday they have signed a memorandum of understanding to establish maintenance, repair and overhaul (MRO) capabilities in Canada for the F414-GE-39E engine that powers the Saab JAS 39 Gripen E fighter. The companies explicitly tied the agreement to whether the Canadian government actually decides to buy the Gripen for the Royal Canadian Air Force.

Condition Matters Amid Delayed Fighter Decision

That condition matters because Canada’s fighter fleet decision has been dragging on for well over a year. Prime Minister Mark Carney ordered a formal review of the country’s planned purchase of 88 Lockheed Martin F-35A jets back in March 2025—a deal originally worth roughly C$19 billion signed in early 2023—citing concerns about over-reliance on American defense suppliers as trade tensions between Ottawa and Washington escalated under President Trump.

The review was supposed to wrap up by September 2025. It hasn’t. Reporting throughout 2026 has pointed toward Canada settling on some version of a mixed fleet, with figures floated ranging from roughly 30 F-35As paired with 60 Gripen Es to a larger three-tier force that could include upwards of 140 aircraft—combining F-35s for stealth missions, Gripen Es for everyday air defense, and Saab’s GlobalEye surveillance planes. No final decision has been announced, and reports suggest Ottawa may not make one until after the U.S. midterm elections in November 2026, a delay aimed at avoiding further friction with Washington while the choice plays out.

Saab’s Industrial Benefits Pitch

Saab’s pitch to Canada has leaned heavily on industrial benefits rather than pure performance, offering:

• Full local manufacturing
• Complete technology transfer
• Source code access for the jet’s mission systems
• Independent Canadian control over upgrades and maintenance

The company has framed this approach as building genuine sovereign capability rather than simply buying another country’s hardware off the shelf. That framing aligns directly with Carney’s own Defense Industrial Strategy, unveiled in February 2026, which calls for nearly C$500 billion in defense investment over the next decade and explicitly favors a "build, partner, buy" approach that prioritizes keeping as much of that money and expertise inside Canada as possible.

Not every internal assessment has favored Saab’s aircraft on capability grounds. Data that surfaced from Canada’s evaluation process showed the F-35 scoring dramatically higher than the Gripen across major operational categories. The Royal Canadian Air Force has reportedly remained unconvinced the Gripen fully meets its requirements, meaning the industrial argument is doing real work to keep the Swedish jet in contention despite that gap.

Details of the Engine Deal

The engine deal itself builds on a relationship GE Aerospace and Magellan describe as spanning six decades across both military and commercial programs. Under the agreement:

• GE Aerospace would train Magellan’s workforce
• GE Aerospace would license Magellan as Canada’s domestic center of excellence for F414 engine sustainment
• MRO work would take place at Magellan’s facility in Mississauga, Ontario

This would give Canada in-country access to keep its Gripen fleet’s engines running rather than shipping them elsewhere for major service work—a capability that matters operationally, since an aircraft grounded waiting on overseas engine repairs is an aircraft that can’t fly training missions or respond to an actual crisis.

Statements from Company Leaders

Paul Ferraro, Vice President of Defense Engines & Services at GE Aerospace, framed the agreement as an extension of that long-running partnership:

"Today’s MOU signing builds on a six-decade relationship between GE Aerospace and Magellan that spans both military and commercial engines and will ensure the Royal Canadian Air Force has access to engine sustainment services in country to ensure readiness of the F414 engines."

Haydn Martin, Magellan’s Vice President of Business Development, Marketing, and Contracts, tied the deal directly to Canada’s broader push for domestic defense capability:

"This MOU reflects our shared intent to build enduring sovereign aerospace capabilities in Canada."

"Should the Saab JAS 39 Gripen E aircraft be selected, Magellan Aerospace will be ready to provide world-class engine maintenance, repair and overhaul services that enhance operational readiness for the Royal Canadian Air Force while maintaining highly skilled Canadian jobs, developing advanced technical expertise, and strengthening Canada’s long-term defence industrial capabilities."