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The Wednesday Report
Canada's Aerospace and Defence Weekly
Volume 7, Number 48, December 1, 1993


As we go to press yet another set of peace talks assembles in Geneva in pursuit of a resolution to the Bosnia crisis. And meanwhile, war rages all around the U.N. Protection Force in Yugoslavia. Enough is enough. If the warring factions in the former Yugoslavia do not stop fighting before the end of winter, perhaps even of their own volition despite the U.N. and the EC, then the U.N. must pull out of the region. That would leave either NATO or the European Community (or more likely both) to resolve the crisis and to make certain the conflict does not spread to engulf nearby states in an ethnic geo-political war spreading like a grass fire through southern Europe and into the Middle East -- or worse. The United Nations has failed at a task it should never have undertaken (the EC and NATO should have been on the job from the outset) chiefly because it applied its traditional peacekeeping elixir to a region where there was no peace and where the players had no ambition for a peaceful course. Canada should not be supporting the United Nations in the former Yugoslavia for much longer. It has been a regretful fiasco.

Micheal J. O'Brien


When Paul Manson speaks, industry listens. He is the presiding chairman of the prestigious Aerospace Industries Association of Canada (AIAC) which represents some 150 companies employing some 60,000 persons and producing roughly $9 billion in annual sales.
Aerospace is "a strategic national industry at the leading edge of the move towards economic recovery in Canada today," said General (retired) Paul Manson, a former Chief of the Defence Staff. His remarks opened the AIAC's 32nd Annual General Meeting on Monday in Ottawa.
"To fulfill this role," believes Manson, "the aerospace industry must work in partnership with government like never before to resolve their common challenges and prepare for the 21st century."
This theme was echoed by senior officials from four federal departments who presented an overview of the direction the federal government is moving in its support for the industry.
Given the pressures of fiscal restraint, government must target its assistance to industry more carefully than ever, said Harry Swain, Deputy Minister, Industry Canada. Suggesting there will be less reliance on subsidies in the future, Swain stated that one of the most valuable roles government can play for industry is as a broker of information on such topics as markets and technology.
Swain praised the aerospace sector for its commitment to R&D and its use of modern technology, two areas in which other firms generally lag behind their trading partners. Matching and surpassing international competition in science and technology is critical to achieving the vigorous economic recovery and increasing employment, Swain said, calling the aerospace industry "not only a spearhead of progress but a potential beacon of inspiration for Canadian industry".
Focusing on the defence sub-sector, Robert Fowler, Deputy Minister of National Defence, indicated the climate of restraint will persist and will be the most significant factor shaping the relationship between government and the industry.
Although a review of defence policy will not be completed until late next year, Fowler projected the industry can anticipate a trend towards purchasing multi-purpose equipment, perhaps leaning to already-proven technology. There is little chance the government will initiate any megaprojects in the aerospace sector or in any other area in the foreseeable future, he said.

Fowler stated that opportunities, although more modest, will still exist for the aerospace sector, citing the need to modernize and extend the life of existing equipment and the potential business for companies providing repair, overhaul and maintenance services.
Brian Schumacher, Assistant Deputy Minister for International Business Development, Foreign Affairs and International Trade Canada, outlined the department's recent activities to help Canadian business "trade smarter" and develop international business, referring to a coordinated "Team Canada" approach among government departments and industry. Schumacher said Canada's aerospace industry "is better positioned than many of its competitors to succeed in the post-Cold War market", since it has already converted much of its military production to non-military applications. The military share of Canadian aerospace production has dropped from approximately 70 percent to less than 30 percent over the past 30 years.
Speaking on federal government procurement, Ranald Quail, Deputy Minister of Public Works and Government Services Canada, said the government is taking steps to achieve increased efficiency for itself and suppliers by reducing the paperwork burden and overhead costs of contract administration. Quail, who also serves as president of the Canadian Commercial Corporation (CCC), an agency that facilitates government-to-government international sales, cited the recent sales of helicopters to Thailand through the CCC as an example of how government can support the aerospace industry.


The following units will be awarded battle honours for having served in the Gulf and Kuwait as part of the multinational military effort in the Persian Gulf in 1991 in support of U.N. Security Council resolutions: HMCS Athabaskan, HMCS Protecteur, HMCS Terra Nova, 423 Helicopter Anti-Submarine Squadron and 439 Tactical Fighter Squadron. In addition, 416 Tactical Fighter Squadron and 437 Transport Squadron will be awarded an honorary distinction for significantly reinforcing the deployed tactical fighter force which fought in the theatre. The Governor General authorized the creation of the new battle honour in Ottawa on November 10.


Spar Aerospace Limited recently announced the appointment of Deborah Allan as Director, Public Affairs effective October 18. Allan is responsible for providing advice and counsel on public affairs matters, developing the communications objectives for the company, and coordinating all public information activities across the corporation. She brings over 17 years of public relations experience to her new position, including several years with Northern Telecom Canada Limited and C-I-L Inc. (now ICI Canada). Most recently, she was Vice President & Senior Counsellor, Cohn & Wolfe.


Anthony Caputo has been appointed vice president and general manager of Spar Aerospace Limited's Aviation Services Division located on Tranmere Drive in Mississauga, Ontario. After joining Spar's Technical Services Group in 1982, he advanced through the ranks of the division to the position of General Manager, which he has held since 1991. As an officer of the company, Caputo assumes added responsibility for the executive management of the corporation as a whole. He remains responsible for the global strategic direction and commercial development of the division's business and the cultivation of new markets in North America and around the world.


Burnaby, British Columbia-based MPR Teltech Ltd. recently completed a technology development project with New Delhi-based Himachal Futuristic Communications Ltd. (HFCL) that will bring telecommunications services to a number of rural villages in India. Based on MPR Teltech's technology, HFCL has been awarded a $45 million contract from the Indian government to manufacture digital microwave systems.
MPR Teltech's contract called for the development of a 2 GHz digital radio system from product design to documentation and commercial manufacturing release within one year. The project involved 18 design engineers from MPR Teltech and eight design engineers from HFCL working together in Burnaby. The HFCL engineers returned to India with the prototype radio in July, where they will lead the manufacturing team.
MPR Teltech is currently working on the next-generation digital radio for HFCL and has signed a memorandum of understanding with the company for a $2 million contract to develop a prototype 7 GHz digital radio system.


Canada's final two naval observers in Cambodia returned home November 17 after serving four months with the United Nations Transitional Authority in Cambodia (UNTAC). Lieutenant-Commander Douglas Drysdale of Maritime Forces Atlantic Headquarters and naval Lieutenant Colin McKeown of HMCS Gatineau completed the return of 30 naval observers who had been patrolling the Gulf of Thailand and major inland waterways in Cambodia.
The return of the two officers marks the end of a Canadian naval contribution which began in 1991 and involved looking for incidents of banditry and the illegal transport of arms. The Canadians also established a registry system for all commercial-sized Cambodian boats and conducted both staff and support functions.


HMCS Preserver, HMCS Gatineau and two Sea King helicopters from 423 Squadron returned to Halifax, Nova Scotia last Tuesday following an eight-week deployment of which the last five weeks were spent enforcing a U.N. embargo of Haiti. Preserver will now prepare for deployment to the Adriatic Sea in February where it will assist in the enforcement of U.N. sanctions against the former Yugoslavia. Gatineau will be available for taskings closer to home such as fisheries patrols or counter-drug operations.
A Canadian task group consisting of HMCS Preserver, HMCS Gatineau, HMCS Fraser and three Sea King helicopters from 423 Squadron sailed from Halifax on September 28 to conduct training exercises off Puerto Rico. On October 15, the task group was ordered to proceed to Haitian waters and was in place by the time the U.N. interception operation began on October 18.
Once ships from countries including Britain, France, the Netherlands and Argentina arrived in theatre to join the U.S. and Canadian ships, the naval forces deployed exceeded the level necessary to effectively enforce the sanctions against Haiti. Canada therefore reduced its contribution to one ship. HMCS Fraser and its Sea King helicopter will remain assigned to the operation, returning to Halifax on December 23 after being relieved off Haiti by HMCS Provider from Esquimalt, British Columbia.


Representatives from Cathay Pacific Airways have signed the in-plant acceptance for the first Boeing 747-400 full flight simulator manufactured for the airline by CAE Electronics Ltd. of Montreal. This is the first of three full flight simulators that CAE is manufacturing for Cathay Pacific. Installation of the simulator at the airline's training centre at Hong Kong International Airport will begin in early 1994. The simulator is expected to be ready for training in early spring 1994.
The new Boeing 747-400 simulator features a CAE-developed integrated debrief facility which integrates audio, video and graphics data recorded during a Line Oriented Flight Training (LOFT) session. LOFT is used to simulate an airline's route flying and procedures.
CAE's advanced ground handling model was also integrated in the simulator which provides a more realistic feeling of motion during certain aspects of simulated flight including taxiing, takeoff and landing. This is the first CAE Boeing 747-400 simulator to have this feature.


ComStream of San Diego, California, a Spar Aerospace company, has signed a letter of intent to supply AT&T Network Systems of Morristown, New Jersey with its new modem for the transmission of compressed digital television signals. Digital compression can transmit up to 10 times more programmes than current analog cable TV transmission systems. The modem is based on ComStream's 64 QAM transmission technology.
AT&T Network Systems plans to offer its digital compression technology as part of its end-to-end Digital Compression Programme Delivery System -- including equipment used by programme providers down to the set-top box in homes -- to help speed delivery of entertainment and multimedia services to consumers.


Norway has placed a $650 million (francs) order with Aerospatiale for 424 Eryx anti-tank systems (firing units and night sights), 7,200 missile rounds, and associated equipment and facilities. Under the contract, Eryx subassemblies will be produced in Norway at Raufoss (warhead) and at NFT (missile wings). Norway is now the third customer of the Eryx weapon system after France and Canada.
Developed and produced by Aerospatiale, Eryx is the only short-range anti-tank missile intended for infantry units. It is lightweight, compact and fit for use by one individual from an enclosed space against all types of targets on all types of terrain, including urban areas.


On Friday, Atlantis Aerospace Corporation (Brampton, Ontario), IVEX Corporation (Norcross, Georgia) and SEOS Displays Ltd. (West Sussex, England) will be showcasing to the media the latest developments in flight training simulation technology at Atlantis' facility in Brampton. The event will feature a presentation by Ed Boothe who recently retired as manager of the FAA National Simulator Evaluation Programme in Atlanta, Georgia. It will also include a demonstration of an A320 flight training device integrated with a three-channel visual system.


Calgary's Pelorus Navigation Systems Inc. has announced the launch of its LAD-9300, a fully-compliant Local Area Differential (LAD) Global Navigational Satellite system for Special Category I precision approach landings at Calgary International Airport. The Pelorus system uses differential Global Positioning System (GPS) technology to provide aircraft with corrections to raw GPS to enable safe, accurate and reliable use of satellite signals for all-weather precision approaches. It also employs integrity monitoring technology designed by ARINC of Annapolis, Maryland which enables the system to warn a pilot when there is something wrong with the satellite signal.
"The benefits of GPS are truly overwhelming," says Ed Fitzhenry, Pelorus' CEO. "Not only does our differential GPS provide the necessary accuracy improvement, integrity and reliability, but it is orders of magnitude more affordable than conventional technology. For example, our system at Calgary will cost about 1/20 of what it would cost to provide comparable coverage with conventional MLS or ILS."


Rockwell International announced in the middle of last week that it may cut between 660 and 990 jobs at its Los Angeles-based Rocketdyne operations over the next year due to reduced funding for space programmes. Rockwell plans to make the cuts to its 6,800-member work force at Rocketdyne through retirements, quits, transfers, layoffs and terminations.
A spokeswoman said officials at Rocketdyne, which produces engines for space shuttles and Atlas and Delta commercial rockets, have planned for job cuts of 10 percent to 15 percent during the current fiscal year, which ends next September 30, due to projections of expected funding levels. She added that about 117 of those jobs have been cut since October 1 or are in the process of being eliminated.
There have been similar reductions at every major aerospace company in southern California over the last three years. Northrop, Hughes Aircraft, General Dynamics, McDonnell Douglas and Lockheed have all cut thousands of jobs as defence spending dried up.


Martin Marietta Corporation has been selected by the government of India's Aeronautical Development Establishment (ADE) to supply the integrated flight control system for that nation's Light Combat Aircraft (LCA). Under the contract, Martin Marietta Control Systems of Johnson City, N.Y. and ADE will design, develop and test the system and supply the hardware, software and test equipment. The Light Combat Aircraft system will consist of a flight control computer, air data sensor, rate and acceleration sensors and actuators.
Martin Marietta and the Indian agency will integrate the flight controls with control surface actuators to be supplied by subcontractor Moog, Inc. of East Aurora, New York.
India's Light Combat Aircraft will be an indigenous, lightweight, advanced-technology aircraft with multi-role capability. Production of the aircraft is expected to begin later this decade, with a total of 200 to be built.
Martin Marietta flight controls systems are in production or development for a number of military aircraft, including the U.S. F/A-18, B-2, V-22 and C-17 and Sweden's JAS 39.


Pratt & Whitney's (P&W) RL10 rocket engine passed through the 30th anniversary of its first flight last Friday. "For three decades the RL10 set the standard for highly successful upperstage performance," claimed Joseph P. Zimonis, vice president of Space Propulsion Operations for P&W's Government Engines & Space Propulsion (GESP) unit.
Two of these engines powered the Centaur stage of the Atlas Centaur-2 launch vehicle on this date in 1963. That flight established the first use of liquid hydrogen as an operational rocket propellant.
To date, 198 RL10s have helped launch an array of the nation's most sophisticated communications satellites and unmanned spacecraft to explore the outer reaches of the solar system. The RL10's scientific mission credits include: deployment of several astronomical observatories and Surveyor lunar soft landers; the flyby of Mars by Mariner 6, 7 and 9; the orbit of the Helios A and B solar probes around the Sun; the Mars landings of Viking I and Viking II; and the flyby of Jupiter, Saturn, Uranus and Neptune by Voyagers I and II.
The engine has undergone seven model changes since the basic design was first tested in 1958. Over this period, it has experienced significant improvement in specific impulse, thrust and thrust-to-weight ratio and operability with no significant change in size or weight. "It's a real tribute to the original design and the RL10 development team," added Zimonis. The latest RL10 model for satellite launches, the RL10A-4, is scheduled for its second flight next month. The A-4, providing 25 percent more power than its predecessor, can launch heavier payloads with the General Dynamics Atlas IIA and IIAS vehicles.
The special purpose model, the RL10A-5, recently powered the McDonnell Douglas Delta Clipper (DC-X) vehicle, performing a series of hover tests at White Sands Missile Range, N.M. These tests were to gain technology for a new generation of single-stage-to-orbit, fully reusable vehicles. A future RL10 engine programme includes a single 35,000-pound thrust engine upgrade for the Centaur upper-stage vehicle. The RL10 was designed and developed by P&W for NASA and is manufactured at the company's GESP facility in West Palm Beach, Florida.


Robert Webb is the new Canadian Consul and Trade Commissioner and Director of the Defence Production Office at Wright-Patterson Air Force Base (WP AFB) in Ohio. The Department of External Affairs and International Trade operates a Defence Production Office at the Wright-Patterson base to facilitate the initiation and continuance of joint U.S./Canadian defence and dual use projects. The projects typically involve a combination of Canadian and U.S. companies, with or without government financing, to contract for defence development (R&D) projects with the U.S. Air Force and Defence Production Office projects.
According to Webb, these shared development contracts (in a world of budget reductions) are a popular concept -- designed to reduce costs to both parties -- restricted only by the funding available and occasionally by the restrictions applying to work outside the national boundary.
Webb was preceded by Al Lyons who was posted to WP AFB in 1992, and by the well known Archie Campbell who held the post for most of the 1980s. Robert Webb can be contacted at Wright-Patterson via: Director, Defence Production, MCLDDP, Room 148, Building 11A, Area B, Wright-Patterson Air Force Base, Ohio, 45433-6503, U.S.A., telephone: (513) 255-4537; fax: (513) 255-1821.


For the quarter ended October 31, consolidated revenues of Bombardier Inc. remained at the same level as last year at $1.1 billion. Net income was $39.5 million or $0.25 per share compared with $28.3 million or $0.18 per share for the same period last year.
For the nine months ended October 31, consolidated revenues reached $3.2 billion compared with $3.0 billion at October 31, 1992. Net income amounted to $117.9 million or $0.75 per share as against a net income of $90.7 million or $0.58 per share for the same nine-month period in 1992.
Commenting on the quarterly results, Bombardier chairman and chief executive officer Laurent Beaudoin indicated that "in spite of a slowdown in the rate of delivery of components in the aerospace sector, the corporation maintained the level of consolidated revenues for the third quarter". He added that "the increase in net income is due mainly to the good performance of the Motorized Consumer Products Group whose watercraft sales rose significantly".


The National Aviation Museum in Ottawa has acquired a Fairey Firefly FR I, a World War II-era naval fighter/reconnaissance aircraft. Two Firefly FR Is were dismantled by National Aviation Museum staff and Canadian Forces personnel and brought back to Canada in a Hercules aircraft. The Firefly FR Is were given to Canada in exchange for medical supplies and future aid and expertise for Eritrean museums. The other airplane is at the Shearwater Aviation Museum in Nova Scotia.
Recovered from the desert at an airbase near Asmara, Eritrea (formerly part of Ethiopia), the two Fireflies now in Canada originally belonged to the Royal Canadian Navy (RCN) until they were sold to Ethiopia in 1954. The Fairey Firefly was one of the first two types used in the establishment of the Royal Canadian Naval Air Arm in 1946 and operated from carriers HMCS Warrior and Magnificent. After 1951, the Firefly was retired from the RCN and all the serviceable aircraft went overseas to various countries.


Los Angeles-based Northrop Corporation said Monday that it anticipates better than previously planned cash flows in 1994 and expects to be able to post positive net cash by the end of that year. In a luncheon briefing Kent Kresa, Northrop chairman, president and chief executive officer, told financial analysts that despite a projected 15 percent sales drop in 1994 from 1993 levels, Northrop expects steadily improving cash flows for the next several years. The company previously announced that 1993 sales are expected to total about $5.2 billion.
Northrop's sales should decline next year, Kresa said, principally due to reduced B-2 revenues as well as fewer 747 deliveries to Boeing. Although Northrop declines to predict earnings as a matter of policy, Kresa noted that the company does not expect a corresponding reduction in earnings in 1994. Revenues in 1994 will include increased sales on the F/A-18 E/F programme and relatively stable sales in the electronics business segment.
Absent any major new programmes or changes to the current B-2 programme, Northrop projects annual sales of $3 billion to $4 billion after scheduled B-2 production ends toward the end of the decade. Over this time period, Kresa noted, Northrop expects to generate well over $1 billion in excess cash net of deferred taxes.


On Monday the European Community launched a $5.1 million project to help former Soviet Union countries convert arms weapon factories into civilian goods manufacturers. The 30-month project, which will be implemented by British Aerospace and the French consulting company Softrade Intergroupe, will cover the areas of St. Petersburg and Samar in Russia, Kharkov in the Ukraine, and Minsk in Belarus. The programme aims to improve awareness of cost-control methods, quality assurance, accounting, marketing services, distribution networks and after-sale service in order to transform industrial capabilities from the production of weapons to civilian goods and, in so doing, maintain employment and technical capability levels. Currently the defence industry in the former Soviet Union employs 12 million people. In Russia, for example, armaments account for half the national output.


The United Nations Security Council on Monday unanimously approved a six-month renewal (until May 31, 1994) of the Disengagement Observer Force (UNDOF), a U.N. force which keeps peace between Syria and Israel. UNDOF for the past 19 years has served as a buffer between the Syrian and Israeli armies on the Golan Heights. The 1,115-member UNDOF, comprising contingents from Austria, Canada, Finland and Poland, was established to monitor a troop disengagement agreement that followed the 1973 Arab-Israeli war.


Nepean, Ontario-based EMCON Ltd. recently announced that its quality programme has been recognized under QMI's registration programme to system level ISO 9002-1987. EMCON is a Canadian-owned engineering and manufacturing operation specializing in emission security and TEMPEST data processing equipment. Since 1985, EMCON has been supplying NATO governments with data products, communication systems and printers that meet government standards for processing classified information.


Two Canadian soldiers were killed and one was injured in an accident in Bosnia on Monday when the Cougar armoured vehicle they were operating went out of control and crashed into a ditch in winter weather. Dead are Master Corporal Stephane Langevin, 28, of Lachute, Quebec, and Corporal David Galvin, also 28, of Eastman, Quebec. Corporal Dominique Masse, 24, of Contrecoeur, Quebec, broke his arm in the accident. The soldiers were serving with the 12th Regiment Blinde from Valcartier, Quebec.


A Canadian tourist traveling in southern California has spilled the beans for Air Canada. The traveler's photographs of a newly-painted Air Canada jetliner have circulated in the media causing somewhat of a stir. The flag carrying airline will soon abandon its red on white colour scheme for a more dazzling orange, blue and white. Air Canada is expected to make an anouncement today.

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