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.

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.

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