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Bombardier and BAE Systems team up on future combat air capabilities

Nate Gregory
Published Oct 28, 2026
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Summary:
  • Bombardier Inc. and BAE Systems Plc have signed a memorandum of understanding, according to a statement Wednesday.
  • The memorandum sets out plans to work together on R&D, integrating complex systems, supplier networks, and additional fields.
  • BAE is involved in the Global Combat Air Programme, and Canada joined as an observer this summer.

What the memorandum covers

Bombardier, the Canadian business jet maker, and UK defense firm BAE Systems have agreed to work together on capabilities for future combat air programs. A statement Wednesday said the companies signed an MOU that spans R&D, the integration of systems, work across the supply base, and other joint efforts.

How it ties into current defense programs

BAE plays a role in the Global Combat Air Programme, under which the UK, Italy, and Japan are co-developing a next-generation fighter aircraft. This summer, Canada entered the program as an observer, a context that informs any prospective Bombardier-BAE work.

The GlobalEye angle

Defense spending has risen lately, lifting the outlook for Bombardier's defense unit. The company already supplies Global 6500 jets to Sweden's Saab AB for the GlobalEye surveillance aircraft, with Saab modifying the planes and installing the military systems. According to The Globe and Mail, Bombardier is close to reaching an agreement with Saab to produce GlobalEye aircraft in Canada under license, and the Canadian government plans to acquire six GlobalEyes.

Collaborations in complex industries often reshape competitive landscapes for thoughtful long term investors. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.

What this means for your portfolio

If Bombardier deepens defense work through this memorandum while moving toward GlobalEye production in Canada, watch for contract milestones and production commitments as the clearer catalysts for revenue and backlog. Supplier activity and timelines across these programs could shift with each new agreement.

Learning how new tools and partnerships influence markets helps investors stay confidently prepared. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.

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