OTTAWA — The federal government says it will pay Lockheed Martin $1.5 billion through an updated contract to maintain and upgrade the Royal Canadian Air Force’s Hercules transport aircraft.

The Hercules aircraft provide logistics support to military operations within Canada and overseas, including disaster relief, by transporting passengers, supplies and equipment long distances.

Lockheed already had a contract to maintain the CC‑130J aircraft dating back more than a decade, and this will extend the partnership.

The new agreement consists of two contract amendments — one that extends in-service support for the fleet through to June 2029 and another that deals with fleet upgrades.

Canada ordered 17 of the CC‑130J aircraft from Lockheed in 2007 to replace its old Hercules E-models.

The Liberal government has yet to reach a decision on its order of F-35 fighter jets from Lockheed, which has been the subject of a political review for more than a year now.

This report by The Canadian Press was first published May 15, 2026.