pany announced yesterday the details of its plans to build 2,000 single-engine airplanes annually. That's two thousand. The move will breathe new life into North America's depressed general aviation industry and generate more than $300 million in annual revenues for Textron.

Cessna's extensive advertising and marketing efforts, driven by the weight of its $9.7 billion parent, is expected to revitalize the market across the board within the general aviation sector and consequently grow overall demand for product and services.

"The decision to re-enter the single-engine business is great news for Textron and Cessna," said James Hardymon, Textron's chairman and chief executive officer. "This move is consistent with our strategy of achieving revenue growth by introducing new products in our market-leading businesses."

Spiralling product liability costs drove the small aircraft giant out of the single-engine aircraft market in 1986; the company once dominated the single-engine business with more than 50 percent market share. Unreasonable product liability has devastated the industry for the past 15 years, forcing manufacturers to sharply curtail production or leave the business altogether. Single-engine aircraft production fell from an all-time industry high of more than 13,000 units in 1977 to just 444 in 1994, a drop of 96 percent.

Last fall, the U.S. Congress passed the General Aviation Revitalization Act (GARA) to resurrect general aviation. The bill imposes an 18-year limit on manufacturers' liability, relieving the industry of undue responsibility for two-thirds of all general aviation aircraft flying today.

"Research shows the demand for new single-engine airplanes greatly exceeds the current supply," said Russ Meyer, Cessna's chairman and chief executive officer. "The average single-engine airplane today is 29 years-old. There's a tremendous need to replace existing units and satisfy the demand of people who want to learn how to fly.

"Our re-entry into the single-engine business symbolizes Textron's growth strategy of investing in businesses we know and where we're the market leader, " said Meyer. "It's a perfect fit with our plans to build on our U.S. base and increase our presence internationally.

Canada's Aerospace & Defence Weekly

Volume 9, Number 10 March 15, 1995

`Bravo Zulu' To The Cape Roger

After all the heat we took from Europeans for bashing a few baby seals on their noggins, here's the whole lot condemning us for being intolerant of their baby-Turbot snatchers. Who needs friends like that? (The EU prefers `snatching' over `bashing'?)

Can't fault the Grits for their handling of this one. Very impressive. Almost makes you want to jump up and cheer. (For the Turbot?) We can all feign righteous indignation on either side so long as it's remembered that: 1) the Spanish have been the fisheries rogues forever, 2) Canada is no saint either, and 3) it won't matter who was at fault when all the fish are gone.

But what's this rhetorical EU nonsense about Canadians being "pirates" using "gun boat diplomacy"? In traditional Pierre Trudeau-style, Chrétien's government favoured DFO people (your basic `game warden' of the seas) instead of using naval intervention. Hunters and fishermen know to keep an eye out for the old game warden. So what if some Spaniards were busted? They'll get a fair hearing in the most defendant-friendly judicial system on earth. (But fellas, if you can't pay the fine, don't do the crime.)

Wake Up, General Aviation

For general aviation (GAV) this could be the greatest news since WW II. Cessna is getting back into the light aircraft business.

The Textron-owned Cessna Aircraft Com

Publisher and Editor In Chief: Micheal John O'Brien

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Frederick J. Harris

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Jim Henderson (Toronto)

Mike Martin (Ottawa)

Patrick McManus (Halifax)

William Kane (Washington DC)

John Reed (London, England)

Moshe Karem (Jerusalem, Israel)

The Wednesday Report is published weekly by

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in any manner whatsoever, is strictly forbidden.

"We're the market leader in light business jets, and this strategy will allow us to regain our leadership in affordable single-engine aircraft," Meyer added. "It's a great growth opportunity."

Cessna will reintroduce four updated versions of models that have proven their popularity over the years: the 172, 182, 206 and the T206. Each model will feature technological and operational enhancements such as new engines, new navigational systems and new interiors.

The first single-engine aircraft will roll off assembly lines at a new facility in Independence, Kansas in the fall of 1996. The plant will serve a range of functions, including assembly, painting, flight testing, delivery and marketing.

Cessna says its market research indicates strong demand for single-engine aircraft. A survey of U.S. owners of single-engine aircraft, airplane dealerships and flight schools, combined with predicted demand from international and U.S. government sources, projects an unmet market for approximately 2,300 new single-engine units per year. In addition, a U.S. Federal Aviation Administration (FAA) forecast made prior to GARA and Cessna's market re-entry cites an annual shortfall of approximately 2,500 aircraft.

Crucial to the future growth of the single-engine market will be flight training programmes, which increase pilot ranks and uphold safety standards. Cessna and several industry organizations plan to aggressively market flight training. More than 360 Cessna Pilot Centres (CPCs), authorized flight schools that provide comprehensive schooling and marketing support, will play a key role in increasing student starts. CPCs are located in 49 U.S. states and throughout Canada.

GARA helped restore a vital industry. Business and commerce account for more than 70 percent of all general aviation flights, which provide a reliable source of transportation, sometimes the only source, for thousands of North American communities. From 1965 to 1982, the United States produced 95 percent of the world's general aviation aircraft. Today, U.S. firms' percentage of the worldwide general aviation fleet has dropped to 77 percent. It's expected that at least 30 percent of Cessna's annual revenues will originate overseas.

Canada's fleet of general aviation aircraft is the second largest in the world. During the halcyon days of general aviation in Canada in the 1970s, the industry boomed across the country and spawned hundreds of fixed base operators and a host of aftermarket companies, not to mention indigenous designs like the Zenith line. Since the mid-1980s the GAV industry in Canada died a slow and painful death while the GAV fleet aged to antiquity.

Micheal John O'Brien

HMCS PRESERVER BACK TO THE ADRIATIC

HMCS Preserver (AOR 510) is returning to the Adriatic under the command of Commander John Keenliside to provide support for the NATO vessels taking part in OPERATION SHARP GUARD, the blockade of former Yugoslavia. Having just completed EX STRONG RESOLVE in Norwegian waters the fleet replenishment ship with three CH-134 Sea King helicopters from 423 Maritime Helicopter Squadron is steaming directly to the Adriatic and is not expected to return to her home port, Halifax, until June 1995. Preserver performed the same function in OP SHARP GUARD from January to June 1994.

413 SQN SAR TECHS JUMP TO RESCUE NORTH OF SEPT-ILES

Two Search and Rescue Technicians from 413 Transport and Rescue Squadron, Master Corporal Barry Doyle and Master Corporal Maurice Robert parachuted from a CC-130 Hercules on Sunday night (12 March, 1995) to a crash site on a frozen lake 100 kilometres northeast of Sept-Iles, PQ. The crashed DC-3 had been located around 7:00 PM after the interception of a Mayday message some two hours earlier. It was not possible to establish clear communications between the crashed aircraft and the rescue Hercules so the two SAR Techs, fearing that there may have been injuries parachuted into the site. As it turned out the three occupants of the downed aircraft were not hurt and later that night the whole group was picked up by a Labrador helicopter and taken to Sept-Iles.

DASH 8 SERIES 200 RECEIVES TYPE APPROVAL

Transport Canada has granted type approval for de Havilland's newest Dash 8 model, the 37-passenger Series 200 aircraft. Certification by the United States Federal Aviation Administration (FAA) is expected to follow shortly.

The Series 200 now joins the popular Dash 8 Series 100 and Dash 8 Series 300 in the de Havilland

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Dash 8 family of turboprop airliners. All models of the Dash 8 have accumulated 418 orders in total to more than 60 customers in 24 countries.

The aircraft is powered by two Pratt & Whitney Canada PW123D engines flat-rated to 2,150 shp up to 45 degrees C at sea level giving the Series 200 the ability to take off from high elevation airports under hot climatic conditions without payload reductions.

Firm commitments for Dash 8 Series 200 aircraft have already come from customers in three countries. In September 1994, National Jet Systems purchased three Dash 8 Series 200 aircraft for use on a coastwatch contract programme for the Australian Customs Service. Shortly afterwards, BPX Columbia became the first company to purchase a Dash 8 Series 200 to operate in a scheduled corporate shuttle role. It will carry oil exploration personnel between its base in Bogota and its oilfields in El Yopal. In January, New Delhi-based Archana Airways purchased two of the aircraft type for use in the northern tourist areas of India.

ATLANTIS WINS CF CAPPS CONTRACT

Atlantis Aerospace Corporation has been awarded a major Public Works and Government Services Canada (PW&GSC) contract for the supply of five Canadian Automated Pilot Selection Systems (CAPSS) for the Canadian Forces.

"Atlantis built the prototype device in 1983 and it was used by the Canadian Forces Personnel Applied Research Unit (CFPARU) to develop and validate prediction algorithms which could be utilized to determine pilot candidate suitability. Now that this has been achieved the Canadian Forces has ordered five advanced technology production units and will utilize them to screen all new pilot candidates", according to Christopher Lehman, Manager of Marketing and Sales for Atlantis.

The production units will consist of refurbished General Aviation Trainers (GAT's) interfaced to new CAPSS hardware and software. This will include new digital computers, digital video and sound synthesizer systems, and a display system for out-of-window flight path simulation and cues from the evaluation courseware. Also included in the programme is a sophisticated Data Analysis Centre (DAC) which will be used to reduce and process all data derived from the CAPSS candidate sessions.

Atlantis is pleased to have been selected for this critical programme," says Lehman, "because it dovetails very well with our other airline and military pilot training initiatives, many of which emphasize the smart use of technology to both save training costs and remove the subjectivity from pilot training and evaluation."

BOMBARDIER RELEASES UNAUDITED RESULTS FOR 1994

Bombardier Inc. has released its unaudited financial results for the year ended January 31, 1995. According to the Quebec-based transportation giant's annual report, net income reached $241.9 million, $1.45 per share, as against a net income of $175.6 million, or $1.12 per share, for the preceding year. Consolidated revenues totalled $5.9 billion, compared with $4.8 billion for the year ended January 31, 1994.

During the fourth quarter of 1994-1995, net income stood at $77.1 million, or $0.46 per share, as against $57.7 million, or $0.37 per share, for the same quarter last year. Consolidated revenues for the quarter totalled $2.3 billion, compared with $1.5 billion for the quarter ended January 31, 1994.

Commenting on the year's results, Chairman and Chief Executive Officer Laurent Beaudoin noted that "the Corporation has increased its net income by 38% thanks to a better performance in all segment of activities. Consolidated revenues increased by 23% over last year; this growth was due mainly to higher revenues in the aerospace and motorized consumer products segments."

"Moreover," added Beaudoin, "Bombardier is well positioned to pursue its growth during the present fiscal year." The Company will publish its detailed financial results for the year ended January 31, 1995 in a press release to be issued on or about April 18.

Bombardier entered into an agreement on February 24 to acquire all of the shares of the transportation equipment manufacturer Waggonfabrik Talbot KG, of Aachen, Germany. The transaction is expected to be completed at the end of this month. The Talbot company has 1,250 employees and annual sales of about $300 million.

CANADA's INTERNATIONAL AIR POLICY

Transport Minister Doug Young announced at the end of last week the allocation of slots at Chicago's O'Hare and New York's LaGuardia airports that were negotiated in the Canada/U.S. air bilateral agreement.

He also released criteria for second carrier designations thereby completing the government's International Air Policy made public on December 20, 1994.

Under the new Canada/U.S. air bilateral signed on February 24th, Canada successfully negotiated

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free access to 24 new daily slots at Chicago's O'Hare and New York's LaGuardia airports. The government allocated the slots as follows: Canadian Airlines International was given six slots at O'Hare and ten slots at LaGuardia, while Air Canada was allocated four slots at O'Hare and four slots at LaGuardia.

In keeping with the direction outlined in December's International Air Policy, these slots are allocated on a "use-it-or-lose-it" basis. "I want to ensure that these slots are used effectively," said Young. "Canadian travellers and businesses will benefit greatly from the new and expanded access to two of the largest U.S. markets."

The two airlines can begin transborder service immediately upon completion of arrangements with U.S. authorities. The "open skies" agreement also enables Canadian carriers to acquire additional slots under established "buy/sell" rules at each American slot-controlled airport.

The criteria for second carrier designations on international routes is that only in country markets with at least 300,000 scheduled passengers per year will second designations be made.

Second carrier designations under this policy will take effect before the end of 1995, subject to the results of bilateral air negotiations. Air Canada will be allowed to fly to Hong Kong and Canadian Airlines International will have full access to Germany — the only two destinations immediately affected.

"Designation of second carriers on international routes will be much more predictable and transparent, thereby assisting airlines, airports and financial institutions in developing long term plans," added Young.

Young has also announced that based on an analysis of service proposals received from Canadian carriers, the government has designated Canadian Airlines International as the carrier to serve Malaysia, Vietnam and the Philippines, effective immediately.

"Air policy in Canada has now been revamped, to the benefit of our domestic carriers as well as to Canadian travellers," said Young.

"The users of Canada's aviation system now have more say in the way that it works. Over the last year, we have begun the implementation of the National Airports Policy, and the commercialization of our Air Navigation System is underway. We have established clear rules and a new playing field for our carriers in Canada-U.S. air travel, as well as internationally.

SECOND CARRIER DESIGNATION POLICY

Clear rules will govern the allocation of second designation opportunities. Assessment of applications for second designation for scheduled passenger services by a Canadian carrier, large or small, will be guided by market thresholds, as follows:

1) In country markets with at least 300,000 one-way origin/destination passengers per year travelling by scheduled air service, second designations will be made.

2) In country markets with origin/destination traffic less than 300,000, second designations will not be made.

Designations under the new policy will take effect before the end of 1995, subject to the results of bilateral air negotiations. The freeze on second carrier designations announced in December 1994 will remain in effect until then. The government says it reserves the right to impose service limitations on designated carriers.

Applications for designation in markets already served by two carriers will not be considered until markets have grown significantly beyond their current passenger level. The only exception will be the United States which is by far Canada's largest international market. Under the recently signed "open skies" agreement, any Canadian carrier will be permitted to serve any route to the United States.

Designation applications for the purpose of all-cargo operations are to be considered on their merits.

In order to facilitate this policy, Canada will negotiate second designation rights in markets as they mature, whenever practical, and will seek agreement on the necessary capacity and frequency of service to give effect to such rights.

Markets which currently meet the 300,000 passenger threshold, thereby enabling second carrier designation are the United Kingdom, France, Germany, Hong Kong and Japan.

BOEING/McDONNELL DOUGLAS AEROSPACE PLANE

A design concept for a new reusable launch vehicle capable of low-cost orbital operations with airline operability is the goal of a contract which McDonnell Douglas and the Boeing Co. have been selected to negotiate with the National Aeronautical and Space Administration (NASA).

NASA announced this week that under such a contract it would share costs with a McDonnell Douglas-Boeing team for a 15-month effort to develop the concept for an X-33 launch vehicle. The contract would be one of three awarded by NASA to aerospace industry teams to come up with design concepts.

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The X-33 programme, led by NASA, is a cooperative U.S. industry-government effort to develop an advanced launch technology demonstrator. The objective of the first of three phases is to define the concept and design for a reusable launch vehicle that could evolve into an affordable, reliable space transportation system to meet the civil, commercial and military space launch requirements.

"McDonnell Douglas and Boeing believe that the development of an affordable, reliable space transportation system is key to meeting NASA's objectives," said Paul Klevatt, X-33 programme manager for McDonnell Douglas Aerospace in Huntington Beach. "This shared goal has enabled our team to meld our extensive capabilities quickly."

"Our work together has proven that each company's experiences and successes in aircraft development and manufacturing and in space programmes provide great resources for the team to draw from," said Livingston Holder, programme manager, Reusable Launch Vehicle Programmes for Boeing Defence & Space Group in Seattle.

During phase one the team will select the design using a "clean sheet of paper" approach which considers several promising technological approaches. An important phase one element will be a business plan that outlines the financing of development and manufacturing costs as well as a plan for evolving profitable commercial launch operations.

NASA plans to select a single contractor or contractor team from among the three competitors for a phase two effort running from 1996 to 1999, during which an X-33 vehicle technology demonstrator is to be built and test flown. Phase three would begin in 1999 and signal the beginning of full-scale production of a reusable launch vehicle.

ARIANESPACE FLIGHT 71 RESCHEDULED

During the launch countdown rehearsal (RCL) on March 6th, in Kourou, French Guiana, engineers detected a small leak in the helium line on the third stage of the launcher. Arianespace has therefore decided to postpone the Flight 71 launch by a few days to allow the time needed to repair, and perform the associated checks and tests. Flight 71 is now scheduled for the night of Monday, March 20, 23:03 to 23:53 UTC.

ARIANESPACE FLIGHT 72

After the European Space Agency's ERS-2 satellite was taken out of storage, preparation teams carried out a number of tests to check all systems. Further preparation will include the integration of the solar array on the platform and the filling of the attitude control system with hydrazine.

Launcher preparation should begin on March 10 and the third stage will be erected on the 17th. The launch is scheduled for the second week of April.

C-17 EARNS NAA ACCOLADES

The McDonnell Douglas C-17 was honoured by the National Aeronautic Association (NAA) Monday for achieving one of the "Ten Most Memorable Record Flights" of 1994. The NAA annual awards ceremony was held at the National Air and Space Museum in Washington, D.C.

"In a stunning demonstration of the airplane's performance capabilities, a McDonnell Douglas C-17, piloted by Andre Gerner and crew, lifted off in less than 1,500 feet and carried 22 tons to altitude. This record for `Greatest Mass Carried to 2,000 meters' was set on June 3," stated the NAA of the C-17's selection from more than 160 NAA-certified world records last year.

In setting this short-takeoff-and-landing (STOL) record the C-17 took off in 1,369 feet with cargo weighing 44,083 pounds, flew to an altitude of 6,562 feet, and landed in a distance of 1,356 feet. The C-17 set 21 other payload-to-altitude and time-to-climb-with-payload world records during its flight test programme.

To date, McDonnell Douglas has delivered 19 C-17s to the U.S. Air Force, the last six ahead of schedule. The 437th Airlift Wing at Charleston Air Force Base, South Carolina, is flying 14 of the versatile airlifters and declared its first 12-aircraft squadron of C-17s ready for operations on Jan. 17.

LAWSON NAMED PRESIDENT OF BOMBARDIER BUSINESS AIRCRAFT DIVISION

Robert Brown, president, Bombardier Aerospace Group - North America, has appointed John Lawson as president of the Bombardier Business Aircraft Division, effective immediately. This appointment follows the resignation submitted by former president Bryan Moss on March 9.

Lawson, 56, was former vice-president, marketing and international sales, for the Bombardier Business Aircraft Division, since 1989. Following his appointment Lawson named Keith Garner, 47, as executive vice-president for the division. Garner was formerly vice-president, North American sales, since 1988. Both men are

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well known throughout the industry and together they have some 40 years experience in programme management, marketing, sales and customer support.

Lawson said, "I am pleased with the opportunity to lead this dynamic organization with Keith Garner. Bombardier has the strongest marketing and sales force in the business jet industry.

"The company is well positioned with superior products, the widest range of business aircraft and the highest level of product support and continues to enhance its products and customer service through innovative programmes and strategic development," he added.

CAE GETS 777 SIMULATOR ORDER FROM JAPANESE CARRIER

CAE Electronics has been selected by Japan Air System to design and manufacture a full Flight Simulator, a CAE Maxvue visual system and an Auto Flight FMS Trainer for the Boeing 777-200 aircraft. The value of the contract was not disclosed.

The full flight simulator, which is the seventh CAE will build for the Boeing 777 aircraft, will feature CAE's latest technological developments including a 5 channel 210 degree field of view MAXVUE visual system.

The Auto Flight FMS Trainer will be used to provide initial and recurrent training of JAS flight crews for its Boeing 777 fleet. The Boeing 777 full Flight Simulator and MAXVUE visual system will be delivered in early 1997 to the JAS Training Centre at the Haneda Airport in Japan. The Boeing 777 Auto Flight FMS Trainer will be delivered in mid 1996.

CALENDAR

April 9-11 — The Aerospace Industries Association of Canada's (AIAC) Thirty-Third Semi-Annual General Meeting will be held at the Westin Hotel in Ottawa. The theme of the event is "Canadian Aerospace: Reality in a New World". Speakers will include Diane Francis, Editor, Financial Post; Finance Minister Paul Martin; Wolfgang Demisch of BT Securities Corporation, New York; and Karel Ledeboer of the International Air Transport Association. For additional information contact the AIAC in Ottawa at (613) 232-4297.

May 30-31 — The COPWIN '95 seminar will be held at the National Arts Centre in Ottawa sponsored by the Canadian Defence Preparedness Association (CDPA). The objective of COPWIN '95 is to promote earlier industrial involvement in the capital acquisition process. The Department of National Defence's long-term equipment acquisition and R&D plans will be discussed, including all new projects over $500,000. The focus on the requirements will be through the 15 year planning cycle, reflecting the impact of the '94 defence white paper and the February '95 Budget. In support of DND's `Cooperation with Industry', CDPA is pleased to welcome members and non-members alike to participate in COPWIN '95. Contact the Canadian Defence Preparedness Association, 500 - 100 Gloucester Street, Ottawa ON K2P 0A4, or telephone (613) 235-5337; fax, (613) 235-0784.

August 9-13 — Airshow Canada's 1995 international aviation & aerospace tradeshow will be held at Abbotsford in British Columbia. The event incorporates the 1995 CBAA (Canadian Business Aircraft Association) trade show and aircraft display. For further information contact Airshow Canada at P.O. Box 6, Abbotsford, BC, Canada, V2S 4N9. Telephone: 604-852-4600. Telefax: 604-852-3704.

April 17-18, 1996 — AFCEA has announced Technet Canada '96, presented by AFCEA Canada (Armed Forces Communication and Electronics Association), to be held at the Ottawa Congress Centre. The event will provide opportunities for exhibitors from within the information community to showcase their products and services in the fields of communications, electronics and intelligence. To book show space, call AFCEA's `show office' at 613-594-8788 or fax 613-236-4351.

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