Government of Canada investing in aviation in Northern Ontario to strengthen regional defence sector
Press Release
February 20, 2026 – Thunder Bay, ON – Federal Economic Development Agency for Northern Ontario – FedNor
Canada’s defence industry plays a key role in keeping Canadians safe while also creating jobs and strengthening the economy.
The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for FedNor, and Member of Parliament for Thunder Bay—Superior North, today announced a FedNor investment of $1,503,787 in support of aviation in Thunder Bay and Northwestern Ontario.
FedNor funds supported Levaero Aviation Inc.’s Hangar 97 project. The Hangar 97 project included an expansion of their maintenance and refurbishment department associated with the disassembly and reassembly exterior and interior components of aircraft. Specifically, FedNor’s support enabled Levaero Aviation to construct an over 500 square meter building to accommodate new equipment and additional staff associated with refurbishment processes. This investment not only strengthened and expanded products and services in the aviation industry in Thunder Bay, it enhanced local capacity for the sector.
Today’s announcement helps to expand infrastructure central to regional industries and services, and builds on the Government’s commitment to growing the aviation industry in Northern Ontario, which is critical to the domestic defence industry. The Buy Canada plan for supplying the military is a $6.6-billion initiative to prioritize building military equipment at home, hike the share of defence contracts awarded to Canadian firms, and add up to 125,000 new jobs over the next decade. Supporting these types supply and service businesses in the aviation sector is a critical step toward fostering a home-grown approach reflected in the Buy Canadian plan. The plan also supports the Government of Canada’s commitment to increase defence spending to 2% of GDP, or approximately $63 billion, in 2025-26, and to 5% of GDP by 2035.
Quotes
“Canada was built by Canadians, and our defence industry is no different. By supporting domestic efforts to grow our armed forces through the Buy Canada plan for supplying the military, we are investing in Canada and in Northern Ontario. This will create real opportunities for businesses and workers, here at home. When we empower Canadian industries to thrive, we contribute to a safer future for all generations.”
The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for FedNor, and Member of Parliament for Thunder Bay—Superior North
“Investments in aviation in Northwestern Ontario will help strengthen the region by growing the links that keep our communities and industries connected. Our region is home to proud Canadians, and the good jobs and economic growth that defence industry expansion will bring to Northern Ontario will help to reinforce our sovereignty while continuing to improve quality of living for everyone.”
Marcus Powlowski, Member of Parliament for Thunder Bay—Rainy River
“FedNor’s support has allowed us to increase productivity and to add to our staff while expanding the local capacity of the aviation industry. Levaero is always working to meet the ever-growing demands of our customers and the global marketplace. We are proud of the nearly three decades of service we have provided the region, and we thank FedNor for their partnership.”
Robert Arnone, President & CEO, Levaero Aviation Inc.
Quick facts
The funding announced today is provided through FedNor’s Regional Economic Growth Through Innovation Fund (REGI), which supports the growth of Northern Ontario businesses, their expansion into new markets, and their adoption of new technologies and processes.
The Canadian defence industry is comprised of nearly 600 businesses that contributed over $9.6B in GDP, while supporting more than 80,000 jobs across the country. These companies include large Canadian-owned firms, Canada-based subsidiaries of large multinational companies, and many small and medium-sized businesses in Canada that employ highly skilled workers in high-quality jobs.