Aviation in Canada is a key driver of economic growth, connecting Canadians and goods across the country and with the rest of the world. The Government of Canada is making strategic investments that enable this vital industry to develop and adopt clean technologies, leading to lower emissions and supporting the competitiveness of small- and medium-sized firms.
Today, the Honourable Terry Duguid, Minister of Sport and Minister responsible for Prairies Economic Development Canada (PrairiesCan), announced federal investments totaling $180 million for the Calgary Airport Authority to construct, fit out and equip a new 150,000 square foot aircraft engine maintenance and test facility at the Calgary International Airport (YYC). This facility will allow for the onshoring of maintenance and testing of engines used in the commercial aviation sector while also facilitating a transition to lower emission engines and sustainable aviation fuels.
These investments include $172 million in financing from the Canada Infrastructure Bank (CIB) and $8 million in non-repayable contributions from PrairiesCan through the Community Economic Development and Diversification (CEDD) program. They are part of a multi-partner collaboration that includes the Province of Alberta, the City of Calgary, Calgary Economic Development, YYC Calgary International Airport, and Lufthansa Technik to advance a regional vision for a western aviation hub. The project builds on western Canada's established strengths in engine testing and aviation technologies.
A facility unique to Canada
The new facility will be unique to Canada in its capacity to accommodate the next generation of narrow body, lower emission jet engines, which will help position Canadian airlines to meet Canada's commitment to net-zero emissions. In addition to better environmental outcomes, the facility will provide engine maintenance and repair services to help airlines improve cost competitiveness and reduce downtime.
The project will support approximately 160 permanent full-time jobs that are expected to be created by Lufthansa Technik at the facility by 2030 and up to 170 temporary construction jobs related to the development of the facility. Over 30 small- and medium-sized businesses operating in the aviation supply chain, such as those providing avionics maintenance and component manufacturing, will also benefit. The facility is expected to break ground in mid-2025 and be completed in 2027. The facility will serve all airlines, with WestJet as a cornerstone client for Lufthansa Technik.
Building on recent investments in aerospace and aviation
Today's investments build on recent PrairiesCan support for Alberta's aerospace and aviation industry. This includes over $4.3 million announced in November 2024 for manufacturing and commercializing new technologies, connecting small- and medium-sized firms with procurement opportunities, and creating new career paths for underrepresented groups. In October 2023, PrairiesCan announced $3 million to double Mount Royal University's pilot and flight training capacity to meet industry needs. And in June 2023, PrairiesCan also announced $4 million to establish an Aerospace Innovation Hub at the University of Calgary, as well as Canada's first remotely piloted aviation training centre for heavy-lift drones training, maintenance, and certification at the Southern Alberta Institute of Technology (SAIT).
In line with the priorities of the Government of Canada's Framework to Build a Green Prairie Economy, these investments are about collaborating more closely on local priorities and building on local strengths to seize opportunities for a prosperous and sustainable Prairie economy.
