De Havilland Canada Secures Up to $2.5B in Federal Financing to Double Canadair 515 Waterbomber Capacity

De Havilland Aircraft of Canada Limited, operating as De Havilland Canada, has reached an agreement with the federal government and Export Development Canada (EDC) for up to $2.5 billion in financing to double production capacity for its Canadair 515 waterbomber. The Calgary-based manufacturer announced the deal on Friday, Oct. 30, saying the funds will let it expand manufacturing operations and hire additional workers. It expects to make additional aircraft production slots available starting in 2030.

A federal government backgrounder says the financing will be delivered through EDC to support increased manufacturing capacity and strengthen Canadian aerospace supply chains. The company says the money will support additional capacity at its facilities in Calgary and Victoria, along with operations in Toronto, Kitchener and Fort Erie, Ont. It projects thousands of jobs across Canada, including at suppliers from Newfoundland to British Columbia, and plans to work with suppliers to speed delivery of components.

The agreement does not establish a national firefighting fleet or announce a federal purchase of waterbombers. It follows a summer campaign by the company for a federally supported national fleet. A July Pollara survey released by the company found 89 per cent of respondents supported federal investment in waterbombers. The debate gained urgency during an Okanagan wildfire season: the Bald Range wildfire, discovered Aug. 7 near Summerland, damaged or destroyed an estimated 150 structures, and 7,093 properties were affected by evacuation orders or alerts.

In an Oct. 18 interview with The Canadian Press, vice-president of corporate affairs Neil Sweeney said a government order for 50 additional waterbombers would underpin a second production line at the company's planned complex east of Calgary. At that time the company reported 38 aircraft on order, with production slots committed through 2034. De Havilland Field, the roughly 1,500-acre complex in Wheatland County, is expected to open its first building in spring 2028 and, per Alberta's major projects registry, support about 3,000 permanent jobs.

The Canadair 515 (DHC-515) is an amphibious firefighting aircraft that scoops water from lakes and drops it on wildfires, succeeding the Canadair CL-415. In March the company reported building 22 aircraft for six European countries, including France, Spain and Italy. Alberta announced a $400-million purchase of five aircraft in February, with the first due in spring 2031, and Manitoba and Ontario have also ordered the type. The financing is expected to close in the first quarter of 2027.

Specialised firefighting aircraft are a capacity-constrained market. With 38 aircraft on order and slots committed through 2034, the binding limit is how many airframes a single manufacturer can build, not how many buyers want one. Financing aimed at plant and supplier capacity addresses that limit directly, but it does so before any new order exists, so the risk of building ahead of demand sits with the manufacturer and its lenders.

Demand for the type is also fragmented. Alberta, Manitoba and Ontario have ordered separately, and six European countries are being supplied under a different programme. A single national buyer would change how production lines are planned and how long they run, which is why the company's own argument ties a second line to an order of 50 aircraft. Until such an order is placed, added capacity and added slots are an offer to the market, not a response to a signed backlog.

The next milestone is the expected close of the financing in the first quarter of 2027, when its structure and the allocation across the Calgary, Victoria and Ontario sites may become visible. Spring 2028 marks the planned opening of the first building at De Havilland Field, and 2030 is when the additional slots are due to become available to buyers.