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(Bloomberg) — The head of the US Federal Aviation Administration said he expects Canada’s aviation regulator to move forward with approvals for Gulfstream jets after President Donald Trump threatened tariffs and other retaliatory actions against the country.
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“I think we’ve resolved the issues with Canada,” FAA Administrator Bryan Bedford told reporters Tuesday following a lawmaker briefing in Washington about air traffic control modernization. He said his understanding is that Transport Canada will announce certifications of the Gulfstream aircraft this week.
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Transport Canada didn’t immediately return a request for comment.
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Trump wrote in a social media post last month that Canada had “wrongfully, illegally, and steadfastly refused to certify the Gulfstream 500, 600, 700, and 800 Jets.” In response, he said the US would decertify “Bombardier Global Expresses, and all Aircraft made in Canada, until such time as Gulfstream, a Great American Company, is fully certified.”
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He also threatened to levy a 50% tariff against Canada on any aircraft sold in the US.
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Air Traffic Update
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Bedford also provided an update on the FAA’s work to overhaul the aging US air traffic control system — an effort that gained traction after a midair collision near Washington last year and telecommunications outages at a facility that guides flights in and out of Newark Liberty International Airport.
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As of January, the FAA has replaced 40% of outdated copper wires in its telecommunications system with new fiber optic lines. The agency has also installed electronic flight strips in 13 towers, upgrading from older paper strips.
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Congress has provided the FAA with $12.5 billion for the modernization project, but Bedford and Transportation Secretary Sean Duffy have said they need an additional $20 billion.
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The FAA announced in December that it awarded Peraton Inc. — a national security and technology company owned by private equity firm Veritas Capital — a contract to manage the overhaul. The total contract is worth $1.5 billion, according to SAM.gov.
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Bedford said it was supposed to be more, but Trump negotiated a $200 million reduction in Peraton’s fee.
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—With assistance from Mathieu Dion.
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(Updates with comments from Bedford about air traffic modernization from sixth paragraph.)
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English (US)