Games provide boost for aviation sector

BERTRAND MAROTTE

For Sylvain Savard, president of airplane maintenance and refurbishment specialist Avianor Inc., the Winter Games helped provide a welcome boost to his company through difficult times in the aerospace industry.

Air Canada, a major client, added three planes to its fleet to handle the increase in traffic during the Vancouver Olympic Games and needed significant refurbishment work done, a godsend for Avianor, based in Mirabel, north of Montreal.

"It's been very difficult in the aerospace sector," says Mr. Savard. But the uplift from the Games is only a short-lived phenomenon. For most of the players in Canada's aerospace industry, centred in Montreal, signs of a full-blown recovery are scarce.

The best that can be said at this point is that the turmoil from the global recession that rocked the commercial airline sector, and sent business-jet sales plummeting, has subsided.

The industry views 2010 as a year of stabilization but not one of quick recovery.

"It's clear that 2010 is going to be difficult," said Claude Lajeunesse, president of the Aerospace Industries Association of Canada.

Count on another 12 to 18 months before aerospace manufacturers and suppliers are back to pre-recession strength, he said.

The Montreal area is home to more than 200 small and medium-sized components suppliers as well as giants Bombardier Inc., Bell Helicopter Textron Canada Ltd., engine maker Pratt & Whitney Canada Corp. and flight-simulator manufacturer CAE Inc.

The slowdown rippled through the region's aerospace cluster, resulting in major cutbacks and the layoffs of thousands of workers as the order books shrank and companies retrenched.

Now, as the turnaround takes hold, recovery may happen more quickly on the military side because of government stimulus spending.

Mr. Lajeunesse said the aerospace sector is anxiously awaiting the details on new spending in Ottawa's military procurement program under the Canada First defence policy.

"We want to ensure there is the maximum in terms of benefits from this," he said.

Also keenly anticipated is federal government research-and-development funding of "green plane" projects that lead to the commercialization of environmentally friendly products such as quieter engines and lighter space-age composites, he said.

Jacques Saada, chief executive officer of the Association québécoise de l'aérospatiale, adds that on the civil side, the industry is poised for a strong rebound thanks to promising new markets in such emerging industrial economies as China and India, where the explosion of a middle class will fire up demand for airline travel.

"The worst is over. I think there is an extraordinary future, especially in these new markets," said Mr. Saada, whose lobby group represents the province's small- and medium-sized aerospace manufacturers.

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At a glance

62

Percentage of the Canadian aerospace production that is based in greater Montreal.

241

Number of aerospace companies based in the greater Montreal area.

40,000

Number of workers employed by aerospace companies in the greater Montreal area.

Major aerospace firms

established in Quebec

Bombardier Aerospace

Pratt & Whitney Canada

CAE

Bell Helicopter Textron

Aveos (Air Canada )

Rolls-Royce Canada

L3 Communications

Héroux-Devtek

Esterline/CMC Electronics

GE Canada Aviation

MDA Space

Messier-Dowty

Mecachrome

Source: Ministry of Economic Development, Innovation and Exports, 2008