Saab has signed a non-binding term-sheet agreement with the Canadian Defence Investment Agency (DIA), establishing the scope and foundation for detailed negotiations regarding the acquisition of Saab's GlobalEye Airborne Early Warning and Control (AEW&C) solution for the Royal Canadian Air Force (RCAF).
The agreement marks an important milestone following Canada's announcement on 27 May 2026, identifying Saab as the preferred supplier for the nation’s future AEW&C capability. While the agreement does not constitute a contract or commitment to procure aircraft, it reflects the progress made through close collaboration between Saab, the DIA and the RCAF and provides the framework for upcoming negotiations.
"The term-sheet agreement reflects the strong collaboration between Saab and Canada and establishes a clear framework for the next phase of our engagement. With a well-defined scope in place, we are well positioned to continue discussions and demonstrate how Saab's proven and highly capable AEW&C solution can meet Canada's requirements," says Micael Johansson, President and CEO of Saab.
Under the proposed programme, Canada intends to acquire six GlobalEye aircraft, including associated systems, training and support. The discussions will focus on a system configuration reflecting Canada’s operational requirements, as well as industrial participation, capability development and programme execution.
Saab is committed to supporting Canada's defence and security objectives, strengthening interoperability with allies and delivering proven capabilities that meet evolving operational requirements.
GlobalEye is an advanced AEW&C solution with an array of active and passive sensors that provide long-range detection and identification of incoming threats across the domains. By providing real-time information to military commanders, GlobalEye enhances situational awareness and enables the early detection of potential threats.
Noah Note: Not a contract, and not binding, but still an important step in the current acquisition process. The Term Sheet in itself might seem a bit mundane, of course we don't and likely won't have access to the exact terms initially agreed upon, but it is importsnt when trying to define an aquisition that is inherently complex in nature.
Saab has intent to bring Globaleye production up to six systems a year by 2030, up from some previous four aircraft figures. The current facility in Linköping consists of two seperate hangers with the capacity to work on around eight aircraft at a time in various stages, good, but not enough to deliver on that commitment.
So for the company, another line is needed. While that could be done at Linköping if needed, the company also has a desire to diversify it's supply chain and add resilience to the production line by establishing a second, dedicated facility for production and integration.
Under the current concept as explained to me, Canada would be responsible for the conversion and integration of the 6500 airframes. Often forgotten, but once a 6500 gets to Linköping it is almost immediately torn up for conversion. That conversion work is where a lot of the Industrial package is tied unto, from manufacturing the composite materials to the skilled technicians carrying out the conversion.
The actual Erieye radar, along with additional sensors, would still be shipped in from abroad, at least for now. The demand for another line separate of Gothenburg isn't really there, and with a priciple focus on Erieye, Canada isnt looking at utilizing Saab's ecosystem to setup a domestic radar capacity, at least as far as I know.
If it is in there, I have not heard it. There is also the issue of establishing both the supply chain and manufacturing capacity for a GaN-based radar system. While we certainly are looking at building up (as we should) our donestic Semiconductor and Photonics capacity, we are fsr from being in the place kf being capable of manufacturing such systems.
I would love to see it. I would. It would also require the Federal Government to likely step uo and desicate the appropriate, billions in funding to make the supply chain viable as well as spend the several years it would take to build uo that capacity. While they could if they wanted, no one is stopping them, it isn't something for the near or medium-term.
Though if you were to do it? Now would be the time to get the ball rolling. The other sensors that are advertised with Globaleye, like the Leonardo Seaspray 7500E, are obviously outside Saab's scope at current. You can't offer someone elses product. As such for now, the principle induatrial focus will not be on radars and such. Saab has tied in though R&D opportunities and dedicated investments into areas like AI, emerging technologies, and radar systems (to make note seperately of manufacturing) into their offerings.
We're already seeing parts of that with agreements with both CAE and Cohere, both of which are built not just off of supporting Canadian Globaleye, but supporting our international partners as well. All in all, Saab estimates that a domestic Globaleye line will support upwards of 4000+ jobs both dorect and indirect over the next fifteen years.
That is seperate from ongoing discussions around Gripen as well. I also wanna make note that Saab had previously said they were discussing between six and eight Globaleye with us. I guess they couldn't sell onnthe two others. The final deal is still expected to be signed by the end of the year, I suspect we will get there.
Key to watch now is both timelines and what a final, Canadian configuration is agreed upon. Also to make note on if that final configuration is ehat we get right away, or a final, developmental endgoal. That itself will be very key when discussing timelines and potential risks involved. Right now? We don't know exactly what that is looking like.
That also isn't fully on Saab either, but a much more complex developmental.track that includes Bombardier, specifically when it comes to in-flight refueling. I also suspect that the proposed X-band system Watcheye uses, where we replace the Seaspray radar and add on a rear radar to provide 360⁰ coverage will also be an area the RCAF fights on, and looks to a replacement down the line.
No matter what, this is an importsnt milestone and deserves recognition as such.