The federal industry minister is putting pressure on U.S.-based Lockheed Martin to provide more economic benefits in Canada if the government is to proceed with its planned purchase of 88 F-35 fighter jets.

Otherwise, Industry Minister Mélanie Joly said in a French-language interview on Radio-Canada’s Les coulisses du pouvoir , Ottawa could move forward with a smaller fleet of F-35s and the acquisition of a second fleet of Gripen-E fighter jets manufactured by Sweden’s Saab. That company has offered to assemble Gripens in Canada.

Joly made the comments as Prime Minister Mark Carney says he is still mulling the fate of the $27.7-billion fighter jet contract.

The minister said she sees two possible avenues for the F-35 review, which began in March, shortly after Carney took office and

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