Many claims have been made about the actual cost to Canada for the small tranche of F-35 aircraft the Conservative government has agreed to buy. The opposition claimed that there were potentially huge savings from having a competition instead of ordering F-35’s. This may or may not be true, especially as the Department of National Defence still hasn’t made a clear statement about what role the new aircraft will be expected to fill (that is, we’re told the F-35 is the answer, but the question still hasn’t been specified).
Back when we bought the F-18, for example, one of the stated criteria was that the plane we bought had to have two engines, due to the potential risk of engine failure in the far north (where airfields are very few and very far apart). This ruled out the F-16, a single-engine plane. This time around, we’re buying a single-engine plane, but the reasons have not been spelled out. It may well be that the F-35 really is everything we need, but it does feel like we’re buying it because we were part of the original “team” during the early design phases.
Combat aircraft are not cheap, and the currently available crop show that well:
Despite the high expense all the electronic gear, the F-18G is not the most expensive combat aircraft out there. The F-22 costs $355 million each. The low budget F-18E costs $94 million each, while the F-18G goes for $105 million. The F-35 costs over $130 million (and growing). Even unmanned aircraft are pricy, with the Global Hawk costing $182 million each (with high end sensors). Older fighters, like the F-16, cost $60 million, and an F-15E goes for about $100 million. The price of the export EA-18G hasn’t been set yet, but it will probably be under $100 million.
These prices constantly fluctuate because of the need to incorporate a share of the development cost for each aircraft built. While most development expense occurs before mass production begins, there is sometimes considerable additional development expense, or major refurbishment, later in the lifetime of an aircraft. Many modern warplanes cost more than most warships, and have the same high maintenance (periodic refurbishment and development of new components) expenses.
Update: There’s another Strategy Page article of interest, this one talking about the decline of Canadian air power:
When the Canadian government decided to send some warplanes to assist in establishing the no-fly zone over Libya, they found out that sending six of their CF-18 fighters would amount to 20 percent of flyable Canadian fighters. That was a bit shocking to most Canadians. But not to those who run the Canadian Air Force, as they know quite well that the CF-18 is on the way out. For example, late last year, Canada awarded $700 million in contracts to two commercial firms (Harris and L3) to provide maintenance for its F-18 fleet of jet fighters over the next nine years. This type of contract is increasingly popular, as they provide a cheaper way to provide all the more complex maintenance, other than what the ground crews do on a daily basis. This involves major overhauls, management of spare parts and upgrades of equipment. This includes the airframe, engines and electronics. Canada expects to retire its remaining 79 CF-18s by 2020, and replace them with 65 F-35s. Meanwhile, only about 30 CF-18s are flyable, because so many aircraft are undergoing upgrades and extended maintenance.
[. . .] Canada plans to replace its CF-18s with the new 65 F-35s. The trend towards fewer, but more capable and expensive aircraft is a common one. Half a century ago, Canada had a fleet of nearly 600 fighters, including license built U.S. F-86s, and what would eventually amount to over 600 CF-100 fighters, the only Canadian designed fighter to enter mass production. The CF-100s were gradually retired over the next three decades. The last ones left service as the CF-18 entered service. But in between, Canada built, under license, several other U.S. fighter designs. Canada had become a major aircraft manufacturer during World War II (over 16,000 aircraft produced), and that provided the foundation for an aircraft industry that remains a major supplier of commercial aircraft to this day.