Since the last Communiqué (January 2010), the 21st Winter Olympic Games have come and gone without significant airspace incidents.

Olympic designated airspace went live on January 29, 2010 at 0001hrs with full airspace
control measures becoming mandatory to operate within the controlled or restricted
airspace. To date there has been in excess of 60,000 aircraft movements throughout the
lower mainland with only a few minor incursions into the airspace with absolutely no
outright breaches.

This success is directly attributable to the unprecedented outreach which was done with
industry and local operators throughout British Columbia. It is because of the
cooperation of the local and provincial operators that the Integrated Security Unit met
with its planning partners to discuss the reduction of airspace restrictions during the
Paralympic Games considering scaling from medium to low security measures.

As a result of reviewing the Olympic Aviation Security Plan, the V2010 Integrated
Security Unit airspace restrictions will be adjusted as of midnight March 12, 2010,
shortly after the Opening Ceremonies for the Paralympic Games. Air space restrictions
above Paralympic venues will continue. Operators will still need to consult their
NOTAMs regarding operations within these zones until the closing of the Paralympic
Athletes’ Village on March 24, 2010. However, the rest of the Olympic designated
airspace will be free from restrictions.

The aviation planning team would like to thank each and every one of you and your
respective organizations for your part in keeping the Olympic skies safe during this once
in a lifetime Canadian event!

Any inquiries regarding this communiqué can be directed to:
Sgt. Cam Kowalski at cam.kowalski@rcmp-grc.gc.ca.

For Immediate Release     

Calgary, AB, February 16, 2010:  In advance of Transport Canada certification, the first new-production DHC-6 Series 400 Twin Otter has taken its initial flight from Viking’s final assembly facility in Calgary, Alberta.

Aircraft, manufacturers serial number (MSN) 845, Canadian registration C-FMJO is the first new production Twin Otter since de Havilland Canada ended production in 1988 with the delivery of MSN 844.  Sold to launch customer Zimex Aviation of Switzerland, MSN 845 is equipped with Honeywell’s Apex IFR digital flight deck, including FDR & CVR and configured with a commuter interior, the aircraft is to be used throughout North Africa servicing the oil and gas industry.

Steve Stackhouse, Manager of Flight Operations, along with Viking President and CEO David Curtis, piloted the aircraft on the initial flight, commenting, “the aircraft performed exactly as expected, it felt very stable, fast, and even with my thousands of hours on type, this new Series 400 Twin Otter brought a smile to my face.”

“This is a significant milestone, not only for Viking and our entire team, but also for our many customers,” commented David Curtis.  “Flying the first new Twin Otter in 22 years is the culmination of many months of hard work and determination by our staff and supply chain partners.”

The first production aircraft has been registered C-FMJO in honour of Michael J. Orr, a former member of Viking’s Board of Directors.  Mike was a keen supporter of the plan to re-start Twin Otter production and sadly passed away on October 10^th, 2006.  In keeping with Viking tradition of naming aircraft, “Mikey” has been fondly added to the nose of MSN 845. Several of Mike’s family were in attendance to witness the first flight.

Viking announced the production re-launch of a modernized Twin Otter in March of 2007 with the introduction of the DHC-6 Series 400 model, which features over 400 modifications and improvements centered around a completely modernized flight deck and added safety systems while retaining the legacy aircraft’s famous robust airframe design.  Most notable of these changes is the incorporation the fully integrated Honeywell Primus Apex digital avionics suite, and Pratt & Whitney PT6A-34 turbines engines to support the aircraft’s unsurpassed capability in specialized operating environments.

With Canadian certification imminent, Viking expects first customer deliveries to start shortly.

Manufacturing activities have continued through 400 Series development, with the first ten serial numbered aircraft at various stages of final assembly, and production gearing up to reach a steady build rate of one and a half aircraft every four weeks.

Viking celebrating 40 years in business provides OEM support for the worldwide fleet of de Havilland heritage line of aircraft (DHC-1 through DHC-7). Viking is part of Westerkirk Capital Inc., a Canadian private investment firm with substantial holdings in the hospitality, aviation and real estate sectors.

# # #

Information:               Robert Mauracher

                                 Vice President, Business Development

                                 Phone: 800-663-8444

                                 Email: rob.mauracher@vikingair.com

Media Contact:          Angela Murray

                                 Marketing & Business Development

                                 Phone: (250) 656-7227

                                 Email: angie.murray@vikingair.com

The AIABC Board has made this change to streamline and expand services to members, while at the same time reduce costs. The Board members will be working closely with SSU to manage the transition.

SSU manages the time-consuming operational tasks, allowing association directors to focus their energy on core issues, strategy and policy development.  Their staff team works closely with directors, committees and members to ensure results that accomplish the mission, goals and objectives of the association.  SSU takes great pride in the success they’ve helped to create for their clients, and the enduring relationships that have been forged as a result.

AIABC is a non-profit industry association of BC-based companies working together to promote and develop one of the fastest growing high-tech industries in Canada. Begun in 1984, the association is mandated to develop trade, business opportunities and human resources in the BC aerospace industry.

Effective immediately, the new office details are as follows:
Aerospace Industry Association of BC
102 – 211 Columbia Street
Vancouver, BC V6A 2R5
Tel: 604-638-1477
Fax: 604-681-4545
Email: info@aiabc.com
Web: www.aiabc.com

Paul Kalil, Chair
President, Avcorp Industries Inc.

BRENT JANG

Transportation Reporter–Globe and Mail

A group of lenders is taking majority control of a company that repairs planes for Air Canada and other carriers, converting debt into equity in a deal that casts aside two U.S.-based private equity firms.

Aveos Fleet Performance Inc., formerly named Air Canada Technical Services, had been facing a cash crunch. The Montreal-based company owed at least $715-million to a loan consortium last year, including Lehman Brothers Inc. and Woodbridge Investments Inc., according to an audit of Aveos conducted by KPMG.

Aveos said yesterday that its debt will be chopped to $75-million from $800-million as part of the recapitalization plan with 11 lenders.

Certain lenders will provide $75-million in working capital in the arrangement set to close by the end of the first quarter, when Air Canada will acquire a minority interest in Aveos and the lenders become majority shareholders.

“We have recapitalized the company without having to go through bankruptcy protection,” Aveos chief executive officer Chahram Bolouri said in an interview.

“We’ve positioned Aveos to be in good shape.”

ACE Aviation Holdings Inc., which owns 27 per cent of Air Canada, recently held a 28.4-per-cent stake in Aveos, having unloaded 70 per cent of the repair firm for $723-million at the height of the leveraged buyout boom in 2007.

ACE previously wrote off its investment, as did two buyout specialists - New York-based Kohlberg Kravis Roberts & Co. and Sageview Capital LLC of Greenwich, Conn., founded by two former KKR partners.

Their investment crumbled during the credit crisis, ensuing recession and the downturn in the market for aircraft repairs, maintenance and overhaul.

Union leaders have warned of layoffs at Aveos because of the industry slowdown, but Mr. Bolouri said the prospects are looking bright because of the debt reduction and new working capital.

“This lays a solid foundation for long-term growth,” he said.

Air Canada is the largest customer for Aveos, which has maintenance sites in Montreal, Winnipeg and Vancouver.

• collaborative initiatives to reduce GHG emissions and fuel costs,
• the completion of preparations for the 2010 Olympics,
• the implementation of multilateration at NAV CANADA,
• aeronautical information services initiatives, and
• the impact of the wildfire season on operations in BC.
   

I hope you enjoy this issue of “Direct Route” and find the content to be informative.
 
I welcome your feedback on stories in this edition, and any suggested story ideas for future editions. To ensure we are covering those topics and issues you want to hear about most, send your comments to directroute@navcanada.ca.  
 
Sincerely,
 
John Crichton
President and CEO

    “Today’s signing by Canada of a comprehensive air transport agreement
with the 27 Member States of the European Union marks an important
development in increasing access to Canada’s second largest trading partner,”
said Duncan Dee, Executive Vice President and Chief Operating Officer. “This
new agreement opens up a realm of new commercial opportunities for Air Canada
throughout the EU. It allows Air Canada to further develop Canada as a
gateway to the world by capitalizing on travel demand between Canada, the
U.S., Latin America and Europe.

    “Air Canada has long been an advocate of an enhanced aviation agreement
between Canada and Europe; we applaud the governments of Canada and the EU
for concluding this agreement that achieves balanced benefits for both
parties.”

http://www.metrovancouver.org/planning/development/LRSPreview/LRSPDocs/DraftRGSNovember2009.PDF

Regional airlines and flight schools that will be shut down or rerouted by the 2010 Winter Games in Vancouver say the federal government should pay them $3 million in compensation for lost business.  

Pat Kennedy, the chief operating officer of the Pacific Flying Club at Boundary Bay Airport, said air traffic security restrictions during the 2010 Winter Games will virtually shut down the flight school for two months.

“We understand the need for air security during the Olympic Games and have worked with Transport Canada and the Integrated Security Unit,” said Kennedy.   “However, at the 11th hour we are faced with rules that will cut our business by 70 per cent.”

John McKenna, the president of the Air Transport Association of Canada, said he demanded the government pay compensation for fixed costs like rent and staff salaries during a meeting on Parliament Hill on Thursday with Transport Minister John Baird.

‘They are serious measures that say you can’t do business for eight weeks,’?John McKenna, president, Air Transport Association of Canada.  “We don’t expect the government to pay for our lost revenues, but there is a recession, and we think it only fair they compensate for fixed costs such as rent during this period,” said McKenna in a statement issued after the meeting.

McKenna did not specify the number of operations affected by the Games but said he believes the situation of flight schools and other air transportation businesses is different from those impacted by ground-level security closures.

“If the street is closed, it doesn’t mean people can’t reach your store. They just have to park and walk,” he said. “There are consequences for those people also, but they’re not being shut down for the whole period.

“We’re in the airline industry, the air transport business. These measures aren’t an inconvenience that you have to walk farther. They are serious measures that say you can’t do business for eight weeks.”

There are precedents for compensation, McKenna said, noting that the federal government provided similar compensation during the 9/11 crisis and the G8 meeting in Kananaskis Alberta.

Security clearances limited
Earlier this year, Transport Canada announced all air passengers coming into the Vancouver area during the Games would have to go through security clearance first.

But many B.C. airports, such as those in Trail, Powell River and Bella Bella, don’t currently screen departing passengers, and there are no plans to upgrade security at those rural airports.

That means flights will be redirected to airports that do have security screening, such as Abbotsford airport, east of Vancouver in the Fraser Valley, or Comox airport, on Vancouver Island. Passengers will have to clear security there before flying on to Vancouver.

Such a procedure will add hours to flight durations and cost thousands of dollars, according to Pacific Coastal Airlines vice-president Spencer Smith. Floatplane operations such as Harbour Air have already announced plans to cancel some of their flights in February.

Saltspring Air said it will have to transport its Vancouver-bound passengers 48 kilometres out of their way during the Olympics, up the coast of Vancouver Island,  for security screening in Nanaimo, before flying east to the mainland.

During the Games, Canadian and U.S. fighter planes will be used to create a kind of security umbrella over the Games, that will possibly include an escort for planes flying in and out of local airports.