Free fighter jets – to a good home
When we invested $6.5 million in Top Aces last year, part of our security package involved taking a charge over several French/German Alpha Jet fighter jets. 1984 vintage. As they’d been purchased from a USA broker, the U.S. State Department and Dept. of Homeland Security required us to register as an “arms dealer” before we could take security on the tails and Top Aces could import them to Canada. (Makes you wonder if your name pops up on a special list when you cross the border, doesn’t it? Adnan Khashoggi, Lord of War)
This came to mind today when I read the NYT piece about Pakistan receiving free F-16s. It seems that the U.S. DOD gives away used military equipment to friendly nations at an annual military flea market.
The story also suggested that Canada and Australia had benefited from the program; although I did read that we paid $2 billion to the U.K. gov’t to buy those Upholder Class diesel subs. Maybe we should’ve held out for a free used U.S. Los Angeles class nuke attack sub…but I digress.
What Top Aces is doing for the Canadian military will be the norm ten years from now. Rather than spend $30k an hour to have CF-18s fly from Alberta to New Brunswick to train Forward Air Controllers on their way to Afganistan, DND awarded Top Aces a three year $93 million contract to provide equipment, pilots and training support for the 3 branches. Train CF-18 pilots in ECM, ship gunners in surface to air warfare, and ground troops in close air support.
As military establishments spend the next ten years doing more than they’ve been asked to do during the prior 10, this type of private sector role is going to become much more prevalant. In this regard, Canada is at the leading edge. And Top Aces has already opened shop at a mothballed air base in Upstate New York to begin plying their unique offering to the world’s largest consumer of defence equipment.
Watch these guys.
MRM
I trust you sampled the merchandise before investing…
The truth is that we didn’t. We knew that the planes existed (FAA confirmed that), and that the fellows we were backing had serious CF-18 flying time with the Royal Canadian Air Force.
When the planes were first acquired they had to go through an ejector seat refit. Excuse #1.
Then they were in Florida on revenue generating missions with CDN Air Force client.
Then they were in San Diego with CDN Navy client.
Then they were in Cold Lake with CDN Air Force client.
Then they were in N.B. with CDN Army client.
Whenever we threatened to use our “right of inspection” to get one, the one available to “inspect” was always in Montreal being serviced by Execaire. “Sure, come up and see it. But the engine is probably apart right now.”
Joining the Board of Directors didn’t help.
When I was on the staff of a former Assoc. Minister of National Defence we visited CFB Lahr, then home to a wing of CF-18s. I was offered a ride in a CF-18, but turned it down. Didn’t want the Vancouver papers to hear about a staff joyride at the Minister’s expense. Your primary job was to not get the Minister in hot water. That was the right decision.
But this time it rankled just a bit. 🙂
MRM