European aerospace giant Airbus is pulling out of the high-stakes competition to build Canada’s next fighter jet.
Airbus was one of four companies that had been expected to bid on the $19-billion contract to build 88 new fighter jets that will replace the Royal Canadian Air Force’s aging CF-18s.
But the company told the government today that it will not enter its Eurofighter Typhoon plane in the competition.
Airbus had previously complained about a change the government made to the process that benefits rival Lockheed Martin’s F-35, loosening a long-standing requirement that companies promise to re-invest in Canada.
Airbus was also concerned about the way the government was handling a requirement that jet-makers prove their planes could plug safely into the U.S. military’s highest-security intelligence systems.
WATCH: Airbus to scrap A380 ‘superjumbo’ after Emirates reduce orders
Airbus is the second company to pull its fighter from the competition after Dassault withdrew its Rafale earlier this year, leaving only the F-35, fellow U.S. competitor Boeing’s Super Hornet and Sweden’s Saab Gripen.