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The Government of Canada has awarded a contract to Lockheed Martin Corporation for the acquisition of the Canadian Forces new tactical lift aircraft.

Tactical airlift is the lifeline of the Canadian Forces, providing reliable aircraft to quickly and safely carry passengers, heavy equipment and supplies over long distances in support of operations, or in response to crises, such as natural disasters.

The purchase contract for 17 C-130J Hercules aircraft is valued at approximately $1.4 billion U.S., with an additional amount to be added in 2009 for 20 years of in-service support.

Under the contract, Lockheed Martin Corp. is required to invest in the Canadian economy, dollar for dollar, what the Government of Canada spends in procuring and maintaining the aircraft over the life of the contract.

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The Honourable Michael M Fortier, Minister of Public Works and Government Services Canada, along with the Honourable Peter Gordon MacKay, Minister of National Defence, today announced that the government has awarded a contract to Lockheed Martin Corporation for the acquisition of the Canadian Forces new tactical lift aircraft.

“Canada has long been in dire need of renewed tactical airlift capabilities,” said Minister Fortier. “The government is now delivering on commitments it has made to ensure the Canadian Forces are properly equipped with aircraft necessary to support its operations.”

Read the full announcement here.