The U.S. State Department said Tuesday that it has approved the possible sale of $540 million US worth of sustainment services and related equipment to Canada, in support of this country’s C-17 military cargo plane fleet.
The principal contractor will be Boeing, based in Arlington, Va. The State Department said in a news release that the potential transaction would be beneficial to Canada — and also to the United States — “by helping to improve the military capability of a NATO ally.”
It further said that “the proposed sale will improve Canada’s capability to meet current and future threats by ensuring the operational readiness of the Royal Canadian Air Force.”
“Its C-17 aircraft fleet provides strategic airlift capabilities that directly support U.S. and coalition operations around the world. Canada already operates C-17 aircraft and will have no difficulty absorbing these articles and services into its armed forces,” the State Department said.
U.S. approval of a foreign military sale is a multi-step process. Congress was notified of the possible transaction via Tuesday’s announcement from the State Department.
Canada has a fleet of five C-17 Globemaster III aircraft, which are based out of 8 Wing Trenton in eastern Ontario. The oldest of the planes entered service in 2007. The newest of the five aircraft was delivered in 2015. The sustainment contract is necessary to keep the aging fleet operational.
Canada’s C-17s are used for a variety of purposes, including to transport troops and military equipment, as well as to deliver humanitarian aid.
Australia, India, Kuwait, Qatar, the United Arab Emirates and the U.S. are among the list of countries that operate C-17 Globemaster IIIs, according to Boeing’s website.
A Royal Canadian Air Force service member stands at the end of a C-17’s ramp at Canadian Forces Base 8 Wing Trenton in Trenton, Ont., in August 2025. (Spencer Colby/The Canadian Press)