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By Andrea Shalal
WASHINGTON, Oct 20 (Reuters) - The election of Canada'sLiberal leader Justin Trudeau as prime minister spells bad newsfor Lockheed Martin Corp's F-35 advanced fighter jetprogram because last month Trudeau said he would not buy theplane if elected, U.S. industry and government sources said onTuesday.
Trudeau's election perhaps offers hope to Boeing Co,whose F/A-18E/F fighter jets are nearing the end of productionand the company could be considered as a supplier of a newfighter jet.
Industry executives and government officials said therewould be difficulty ahead for the F-35 program.
"Trudeau hasn't left himself any outs. His statements werevery categorical," said one source, who is familiar with thesituation but was not authorized to speak publicly.
Trudeau opposes the F-35 purchases and said money saved byswitching to another plane could help fund needed Navy projects.Last month he said that, if elected, his party would launch anopen and transparent competition to replace Canada's aging CF-18fighter jets with more affordable aircraft.
For now, Canada remains one of the nine partner countriesthat funded development of the F-35 fighter jet. Canada pledgedto invest $150 million in the program's development when itsigned up in February 2002.
Those funds will not be reimbursed if Canada exits theprogram, and many Canadian companies that now supply parts toLockheed could see those orders disappear, said one sourcefamiliar with the program.
The Pentagon's F-35 program and Boeing had no immediatecomment.
Lockheed said only that it had not been notified by theCanadian government of any change in its status as a partner inthe F-35 program.
"They are a valued partner and we will continue to supportthem through their decision process to replace their ageingCF-18 fleet," said Lockheed spokeswoman Alison Orne.
The loss of 65 F-35 orders would cut Lockheed's futurerevenues by well over $6 billion, and would also affect enginemaker Pratt & Whitney, a unit of United Technologies Corp, and other suppliers such as Northrop Grumman Corp and Britain's BAE Systems Plc.
Canada's ruling Conservatives announced plans in 2010 to buy65 F-35 jets, but scrapped those plans in 2012 after a probefound officials had played down the costs and risks of the deal.
A subsequent review found that Lockheed's F-35 scored wellon various tests, but Boeing Co's F/A-18E/F Super Hornetwas almost as capable and cheaper. (Reporting by Andrea Shalal; editing by Grant McCool)