Defence Minister Bill Graham has announced Ottawa's plans to proceed with the purchase of $4.6 billion worth of transport aircraft for the Canadian military.

"The government is moving forward with the process to purchase new tactical lift aircraft to replace significant parts of our aging Hercules aircraft fleet," Graham said on Tuesday.

Chief of the Defence Staff General Rick Hillier welcomed the announcement, saying the aging fleet was on the brink of becoming defunct.

"Our Hercules fleet right now is rapidly going downhill. We know that three years and a little bit more than that, the fleet starts to become completely inoperational and we will have to stop supporting operations or else not be able to start them," Hillier said.

Some of the military's current Hercules transport aircraft -- mid-range planes used to ferry troops, supplies and equipment -- are more than 40 years old.

Despite industry protests to the contrary, Graham and Public Works Minister Scott Brison insist the project to buy 16 replacements for the military's fleet of Hercules aircraft will be quick and transparent.

"The procurement process for this will be competitive, fair and transparent. It also will be faster, simpler and more efficient than previous acquisitions," Graham said.

Brison outlined the two-step procurement process, saying a fairness monitor would be appointed to oversee the procedure.

"First, there will be a solicitation of interest and qualification that will be posted publicly for at least 30 days," Brison said.

"The second stage will be for suppliers who meet the mandatory criteria to submit a formal proposal."

The Canadian aerospace industry has accused Ottawa of ignoring economic and regional development, saying that the government's performance-based requirements give the advantage to foreign contracts.

Some manufacturers have also said they fear Ottawa has already set its sights on the Lockheed Martin Hercules C-130-J.

Earlier in the month, the federal government delayed the purchase of military aircraft until after the next election.

At the time, Graham said an election would "inevitably delay the capacity of the government to make major procurements."

"We don't make major procurements during elections," he said.

However, The Canadian Press reported that observers said the purchase was delayed because it would have triggered a political fallout over buying foreign products ahead of a looming election.

In 1993, Kim Campbell's Progressive Conservatives were reduced to two seats in Parliament after a campaign during which the Liberals, led by Jean Chretien, criticized a Tory plan to replace the military's 42-year-old Sea Kings.

"If you get procurement policy mixed up in an election process, it can set the process back rather than further it," Graham said earlier.