SECRETARY-GENERAL SEES CUT-BACKS FIRST HAND
Willy Claes was in Ottawa last week to see first hand the kind of serious
trimming the Canadian Forces will endure over the next three years. He
didn't have much to say after his talks with the federal government ministers.
on a mission to muster support for NATO, but Canada is on a mission
to shut down as much of its military as possible without endangering its
ability to be a player in the international peacekeeping game. Over the
next three years the Canadian Forces will be reduced to 60,000 regular
forces with a much smaller command structure of some 70 general officers
and 245 Colonels. The reduction in senior officers will amount to an attrition
of about 75 with incumbent staff and infrastructure cuts eliminating a
linear level of NDHQ staffing.
certainly mean further reductions in the number of senior officers
as we streamline the Canadian Forces as a whole, making it leaner, more
efficient and more focused on keeping our operational capabilities more
relevant," said Defence Minister David Collenette last Thursday.
MEETING SET FOR END OF MAY
of NATO Foreign Ministers will be held in Noordwijk, the Netherlands,
on Tuesday, 30 May 1995, followed by a North Atlantic Co-operation Council
meeting on Wednesday, 31 May 1995.
AEROSPACE 1994 YEAR END RESULTS
Limited's 1994 revenues
increased 8.5 percent over 1993 levels, to $571.8 million. Earnings increased
by $7.2 million.
1994 revenues of $571.8 million, representing an increase of 8.5 percent
over 1993 levels of $527.2 million. Net income, at $7.84 million ($0.53
per share), is up from 1993's $0.60 million ($0.04 per share). The company's
debt, net of cash, was reduced significantly from $43.4 million at the
end of 1993 to $14.3 million at the end of 1994. Revenues in the fourth
quarter totalled $181.3 million compared to $153.5 million in 1993, while
fourth quarter 1994 earnings were $6.2 million ($0.42 per share) compared
to a loss of $6.7 million ($0.48 per share) in the corresponding 1993 period.
board of directors has declared a dividend on the common shares of
$0.06 cents, payable 3 April 1995 to shareholders of record as of 20 March
Spar's business segments were profitable in 1994, says the firm's annual
report. All units showed marked revenue growth, except Space Systems, which
is in the final stages of the major MSAT and RADARSAT programmes. Spar's
communications sector showed the most significant revenue growth at 45
percent, although operating income was down due to the considerable expense
associated with the acceleration of ComStream's high volume multimedia
business and the amalgamation of three separate communications segment
units -- ComStream, ComTel and Spar Communications Group -- into one: ComStream.
With its increased volumes, ComStream's administrative, research and development
and marketing costs all were sharply higher than 1993, consequently initial
margins were relatively low. By the end of 1994 margins were improving
as a result of cost containment, allowing ComStream to contribute significantly
to a strong fourth quarter.
our space business returned to a more solid, if smaller, footing, aviation
and defence continued to prosper, informatics positioned itself for improved
profitability, and our communications business made substantial improvements
to earnings performance. With all of our businesses now profitable, we
are well positioned for moving forward to increased profitability in 1995,"
said John MacNaughton, President and Chief Executive Officer.
of strategic contracts were won by Spar Aerospace Limited business
units in 1994, including those for a ComStream joint venture in Beijing
with an electronics import/export company owned by the China Ministry of
Radio, Film and Television; an agreement to upgrade the crash position
locators for the U.S. Navy's maritime patrol aircraft and supply deployable
flight incident recorder systems for its fleet of F/A-18s; a three-year
Department of National Defence contract to provide aircraft flight simulator
and mission procedural trainer maintenance at six Canadian Forces Bases;
and a terrestrial application of the Canadarm space arm technology in the
clean-up of nuclear sites. As well, PRIOR joined forces with Raytheon of
the U.S. to bid on a transoceanic air traffic control system for the U.S.
Federal Aviation Authority for the cities of Oakland, New York and Anchorage.
2500 people at locations in Canada, the United States, Mexico, Indonesia,
The People's Republic of China, Thailand and the United Kingdom.
AND IAI TO GO AFTER U.S. T-38 UPDATE PROGRAMME
Douglas and Israel Aircraft Industries have signed a Memorandum Of
Understanding (MoU) to pursue the U.S. Air Force T-38 Avionics Upgrade
MoU, the two companies will team together in the competition to modify
the U.S. Air Force's T-38 training aircraft and provide new ground-based
training devices. MD will serve as prime contractor, with the LAHAV division
of IAI as the major subcontractor.
is a gold-level supplier in the McDonnell Douglas Preferred Supplier
Certification programme, one of only six companies to achieve this highest
level of supplier performance. The T-38 Upgrade Programme calls for modifying
425 aircraft and procuring 16 new aircrew training devices. A request for
proposals is expected in September, with a contract award in January 1996.
in aircraft modifications, including a recent avionics upgrade to F-5
aircraft, will be coupled with McDonnell Douglas' experience in the design,
manufacture and support of fighter and training aircraft. In addition,
the team will employ McDonnell Douglas Training Systems (MDTS) to provide
the T-38 ground-based training system. MDTS provides military aircraft
integrated training systems and is the U.S. government's prime integrator
for the U.S. Air Force T-1A tanker transport training system, the U.S.
Navy T-45 training system and the U.S. Air Force C-17 aircrew training
U.S. WINS CRUISE MISSILE GUIDANCE CONTRACT
Guidance & Control Systems division of Woodland Hills, California
has been awarded a contract initially valued at more than $30 million to
continue production of guidance units for the U.S. Navy's Tomahawk cruise
missile and concurrently develop a successor system.
options could take the new work through the year 2005, with a potential
value to Litton in excess of $200 million," said Darwin D. Beckel, Litton
division president. "Litton has been the sole supplier of these Tomahawk
guidance units since the programme started in 1976."
work is subcontracted through Tomahawk prime contractor Hughes Missile
Systems Co., Tucson, Arizona. Development of the new guidance unit will
be accomplished at the Litton division's headquarters in Woodland Hills,
with production on both systems to be carried out at the division's manufacturing
facility in Salt Lake City.
3,500 guidance sets have been built by Litton for Tomahawk missiles
for submarines and surface combatants from destroyers to battleships. The
subsonic, terrain-skimming missiles, with ranges up to 1,500 miles, were
widely employed in the 1991 Gulf War.
units provide the inertial navigation information to guide the missiles
from launch to pre-programmed targets. The guidance systems also exchange
and process information to and from the missiles' terrain correlation mapping
units. These "look down" radar systems match pre-selected terrain-following
flight paths to the actual terrain below, helping to guide the missiles
around known defensive weapon sites to their targets.
and integration of Litton's new Tomahawk guidance system is completed,
the company will continue to produce its combat-proven, self-contained,
electromechanical guidance units called LN-35, or Reference Measurement
Unit and Computer.
new system being adapted for the Tomahawk combines the latest high accuracy
laser gyro sensors and a precise global satellite signal receiver in
a single unit that can provide continuous position accuracy to within a
few yards. The new unit, under 30 pounds, is less than half the weight
and size of the current system, and requires less than half the power.
LN-100G, Litton's new embedded Global Positioning System/inertial navigation
unit also has been selected for the U.S. Navy's F/A-18, EA-6B and T-45A
aircraft, as well as the Defence Department's Tier II and Tier III unmanned
aerial vehicle programme.
is a product line derivative of Litton's LN-100 Zero-Lock laser gyro
inertial navigation system that will be aboard the U.S. Air Force's new
F-22 fighter, Multi-Service Launch System, the U.S. Army's RAH-66 Comanche
helicopter and Lockheed Corp.'s commercial space launch vehicle. The LN-100
also is being supplied for a variety of international programmes.
MAKES MAIDEN PACIFIC CROSSING
Air Force C-17 Globemaster III transport conducted its first trans-Pacific
operational mission last weekend, making its inaugural visit to Japan on
based at Charleston AFB in South Carolina, carried cargo on its trip
to and from Yokota Air Base, Japan, making en route stopovers at Travis
Air Force Base, California, and Elmendorf Air Force Base, Alaska. The C-17
is part of the first operational C-17 squadron, part of the 437th Airlift
Wing, based at Charleston Air Force Base. The 17th Airlift Squadron was
declared ready for worldwide operations on Jan. 17.
crew, commanded by Lieutenant-Colonel Larry Kudelka, departed from
Charleston Air Force Base last Thursday (March 2) and arrived in Japan
on Saturday, March 4, after its two en route stopovers. Returning, the
C-17 left Japan on Sunday and arrived back at Charleston Air Force Base
on Monday, March 6.
have conducted operational missions to Europe, the Arabian Peninsula, Panama
and Cuba. The second C-17 squadron, the 14th Airlift Squadron of the 437th
Airlift Wing, received its first C-17 on Feb. 17. To date, McDonnell Douglas
has delivered 14 operational C-17s to the 437th Airlift Wing.
TROOPS WITHDRAWN FROM FAILED SOMALIA MISSION
With the help
of Italian and U.S. troops, the United Nations successfully pulled the
last of its peacekeepers (Pakistani and Bangladeshi troops) out of Somalia
last week. Shortly before midnight (UTC) last Friday, the last of the U.S.
Marines left Mogadishu. The withdrawal was not without incident although
clashes with Somali militiamen were only light. The withdrawal was done
after a two-year U.N. effort failed to restore the peace in Somalia.
WINS $2.4 MILLION CONTRACT
Inc. of Saskatoon, Saskatchewan,
a wholly-owned subsidiary of CALIAN Technology Ltd., has been awarded a
contract by Inmarsat (International Mobile Satellite Organization) of approximately
$2.4 M U.S. to supply additional Satellite Spectrum Monitoring System equipment.
SED will provide six remote monitoring stations to be located throughout
the world, and a central control system located in London, England. The
SED system will form part of the overall system used to monitor the communications
traffic on Inmarsat's mew third generation satellites. It replaces the
existing monitoring system which SED provided under a 1991 contract.
position in the burgeoning mobile satellite communications marketplace
been achieved through long-term relationships with industry leaders like
Inmarsat," said CALIAN President and CEO Larry O'Brien. "We are pleased
to play a continuing role as Inmarsat prepares to unveil its new generation
is an international organization comprising 76 member countries that
operates a global satellite system offering communication services for
commercial, and distress and safety applications at sea, in the air, and
on land. Inmarsat will launch its new generation of satellites in 1995-96.
The new series of Inmarsat satellites will use spot beams for providing
communications to the mobile terminals. In order to monitor the traffic
in the spot beams it is necessary to locate a measurement system within
contract will bring the total configuration to eight remote monitoring
stations integrated into Land Earth Stations of the Inmarsat network,
and eight transportable terminals," said Mark Noete, SED's in-orbit test
(IOT) systems manager. "The data from the stations will be routed back
to Inmarsat's network control centre."
related news, SED completed commissioning of the third generation in-orbit
test (IOT) system for Inmarsat in Beijing. The IOT systems will be used
to perform in-orbit testing of Inmarsat's third generation satellites scheduled
for launch in 1995-96.
Technology Ltd. of Kanata, Ontario and its wholly owned subsidiary
SED Systems Inc., design, manufacture and integrate electronic systems
with applications in the satellite communication, space and defence markets,
and provide related technical outsourcing services.
OF NEW 777 VARIANT RELEASED
engineers have released design information for the next version of
the Boeing 777. Called the B-Market model, the newest design supplements
the Boeing 777 with a new set of mission capabilities.
version is a continuation of the market-driven approach to shape the
777 family," said Larry Magruder, Boeing Commercial Airplane Group 777
Division B-Market airplane programme manager. "The B-Market 777 provides
value by providing increased range while retaining maximum commonality
between the two models to provide unsurpassed economy and comfort in this
to Jeff Peace, chief engineer for 777 derivatives, finishing one quarter
of the design for the longer-range 777 is much more than an engineering
milestone. "To us, total airplane design now includes parts, plans and
tools. We design not only the airplane hardware, but concurrently develop
plans to fabricate parts and complex tools for assembly. With today's improved
practices, we don't consider the design complete -- or in this case, 25
percent complete -- until we complete all these aspects.
participation, design/build teams, open communication and digital design
are all factors that have spelled success for the 777s currently in flight
test," Peace said. "All of these factors have been instrumental in reaching
this milestone sooner than we planned."
777 will fly 8,350 miles (7,250 nautical miles or 13,400 km) with a
maximum takeoff weight of 632,500 pounds (286,900 kg). In a typical three-class
configuration, it would carry 305 passengers. By contrast, the initial
777 can fly 5,300 miles (4,600 nautical miles or 8, 500 km) with a maximum
takeoff weight of 535,000 pounds (242,680 kg).
model will have the same physical dimensions as the initial A-Market
777. But the B-Market model increases engine-thrust ratings from 77,000
pounds to 90,000 pounds and carries up to 13,700 gallons (51, 860 liters)
would serve such city pairs as London-Los Angeles, San Francisco-Tokyo,
Tokyo-Sydney, Chicago-Seoul and Bahrain-New York.
has orders for 45 B-Market 777s from Euralair of France, British Airways,
Lauda Air of Austria, International Lease Finance Corporation, Continental
Airlines, Emirates, Gulf Air and Korean Air Lines.
SCARES TRAWLERS AWAY -- FOR NOW
or another, this activity will be stopped."
Fisheries Minister Brian Tobin speaking early this week on the subject
of Spanish and Portuguese fishing trawlers scooping more than the appropriate
European share of the turbot catch. Canada's legal argument is that the
Northwest Atlantic Fisheries Organization (NAFO) agreement disallows their
fishing on the nose and tail of the Grand Banks.
of Fisheries and Oceans (DFO) vessels and one Coast Guard vessel were
patrolling the region at press time, late Tuesday afternoon. Officially,
Canadian Forces assets were not involved in the matter although significant
resources were quite apparently in a high state of readiness.
deadline The Wednesday Report learned that the Spanish government had dispatched
a warship to the region of the stand-off, meanwhile, the offending fishing
vessels had vacated the contested region while 'negotiations were under
CHIEF PADDY O'DONNELL RETIRES
P.J. (Paddy) O'Donnell, Vice Chief of the Defence Staff, is retiring
from the Canadian Forces after a 36-year career. He has enjoyed a distinguished
career, beginning as a radio officer with Transport Command and culminating
as the Forces' second-in-command.
Lieutenant-General O'Donnell's retirement, Defence Minister David Collenette
said, "Lieutenant-General O'Donnell has served Canada with distinction
during his career. As Vice Chief of the Defence Staff, he was instrumental
in guiding the Canadian Forces through the 1994 defence review and ensuring
the Canadian Forces remained combat-capable."
about his own feelings on retiring, O'Donnell said, "I have enjoyed
my career and I leave with positive memories and a great deal of satisfaction.
I feel confident that the defence of Canada remains in capable and caring
to brigadier-general in August 1987, he was posted in Yellowknife,
NWT, as the commander of Northern Region. In August 1989, he served as
commander Maritime Air Group in Halifax, a position held until July 1990,
when he was promoted Major-General and appointed Deputy Commander of Air
Command in Winnipeg.
was promoted to his current rank in July 1992 and was appointed Assistant
Deputy Minister (Personnel) in August 1992. In February 1993, he was appointed
Vice Chief of the Defence Staff at National Defence Headquarters.
will begin his retirement in the coming summer having reached the compulsory
retirement age. Vice-Admiral Larry Murray, commander of Maritime Command,
will take over the position of Vice Chief of the Defence Staff.
TO CONDUCT SAREX WITH U.S. AND RUSSIAN FORCES
Arctic Search and Rescue (SAR) exercise, dubbed SAREX '95, will get
under way from CFB Cold Lake, Alberta on March 19 and will run through
March 24. The exercise will test the alerting systems of all three nations
and exercise their ability to deploy, coordinate and assist each other
during SAR operations in the Arctic. The simulated crisis will include
an air disaster involving a downed commercial airliner in a remote region
of the Arctic.
AND SOUTH AMERICA 'S DEFENCE MINISTERS COULD MEET MID-YEAR
of Defence William Perry has proposed a meeting of Western Hemisphere
defence ministers for July 24 to 26 in Williamsburg, Virginia. Topics for
the proposed summit include regional security and counter-narcotics issues
and Perry is also suggesting the group map out plans for conducting future
joint military operations.
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.