Canada's exclusion from the AUKUS security pact reveals a failing national defence policy

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  March 15, 2019 | Local, Aerospace

  DRAKKAR and Avianor partner to fuel growth of Quebec aerospace cluster

  DRAKKAR, a world-class company specialized in operational outsourcing within sectors including aerospace, and Avianor, a complete commercial aviation cabin integration specialist and MRO organization, have finalized a partnership agreement which will enable Avianor to accelerate its growth strategy. With the help of Ernst & Young Orenda Corporate Finance, Avianor strongly believes the strategic and Canadian-based company DRAKKAR is the best partner to secure the future of Avianor. Following this transaction, effective as of Feb. 28, 2019, the Avianor board of directors now consists of Earl Diamond, CEO of Avianor; Sylvain Savard, president and founder of Avianor; along with two new members from DRAKKAR, Denis Deschamps, president and CEO of Drakkar & Partners; and Benoit Hudon, president and CEO of the company's manufacturing business unit. Over the past 24 years, Avianor has become a leader in the aviation industry by distinguishing itself through innovative problem solving, maintaining a skilled workforce and a flexible corporate culture. Although Avianor will remain an independent operation, DRAKKAR will now provide Avianor with strategic, tactical, financial, operational, business development and training support to help the company accelerate and achieve its consolidation and growth plan while meeting customers' satisfaction. Part of this plan also includes the renovation of a new and additional facility with over 100,000 square feet of hangars and offices with airside access at Montreal-Mirabel International Airport (YMX). “This new partnership reinforces the global positioning of our business as a high-caliber outsourcing team with the ability to optimize operations while keeping in mind productivity, efficiency and quality,” said Deschamps and Hudon. “With over 25 years of experience and expertise in outsourcing, this is a major turning point for our manufacturing business unit as it opens the door to the convergence and deployment of its global service offer. “DRAKKAR Manufacturing fits perfectly with our vision of creating our own innovative manufacturing ecosystem in one of our leading sectors, working collaboratively with our employees, partners, customers and suppliers as well as our own infrastructure,” added Deschamps and Hudon. “For us, this association with DRAKKAR reflects our determination and willingness to meet the needs of our existing and future clients and shows our concrete commitment to perpetuate Avianor activities over the long term and secure hundreds of jobs here in Quebec at the Mirabel Airport,” said Savard and Diamond. “With a current workforce of over 2,500 people and a solid experience in operations management, DRAKKAR will help us achieve the operational efficiency required of a large enterprise while ensuring personalized service is provided to all our clients.” “It is a proud moment for Aéro Montreal to see these companies conclude a partnership agreement with the objective of uniting their forces and combining their complementary expertise to create a strong added value within the industry,” said Suzanne M. Benoit, president of Aéro Montreal. “In addition to fostering economic growth and job creation across Canada, this type of partnership contributes to an even stronger, more competitive and prosperous Quebec aerospace industry. “It is a common and shared priority to ensure the visibility and influence of the companies that make up our industrial cluster, and in order to do so, we must effectively offer the OEMs more integrated solutions.” https://www.skiesmag.com/press-releases/drakkar-and-avianor-partner-to-fuel-growth-of-quebec-aerospace-cluster

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  May 6, 2020 | Local, Aerospace

  Canada invests another US$70M in F-35 development despite no commitment to buy

  OTTAWA — The federal government has made another multimillion-dollar investment into the development of the F-35 stealth fighter jet, even as it weighs a new extension to the $19-billion competition to replace Canada's aging CF-18s. Canada made the annual F-35 payment to the U.S. military last week, spending US$70.1 million to remain one of nine partner countries in the fighter-jet project. Each partner is required to cover a portion of the plane's multibillion-dollar development costs to stay at the table. Staying in the program has advantages, as partners get a discount when purchasing the jets and compete for billions of dollars in contracts associated with building and maintaining them. The F-35 is being built by U.S. defence giant Lockheed Martin. While the new payment brings Canada's total investment in the F-35 to US$541.3 million since 1997, the government says Canadian companies have also secured US$1.8 billion in work related to the stealth fighter. “This participation provides Canadian industry with contract opportunities that are only available to program participants,” Defence Department spokesman Daniel Le Bouthillier said in an email. “Our membership will also allow us preferential pricing and sequencing in the build schedule should the F-35 aircraft be successful in the current future fighter capability program.” Canada actually started to shoulder more of the development costs last year. That is because the Liberal government increased the number of new fighter jets that Canada plans to buy to 88 from 65, even though it has not committed to buying the F-35. News of the payment comes as the federal procurement department confirmed it was considering another extension to the $19-billion competition to replace Canada's CF-18s. The F-35 is one of three planes in running along with Boeing's Super Hornet and the Saab Gripen. The extension was recently requested by one of the three fighter-jet makers. Public Services and Procurement Canada did not confirm which company asked for the extension, but Boeing had previously left the door open to a request because of the COVID-19 pandemic. “We can confirm that we are currently evaluating a request from industry to extend the deadline for preliminary proposals,” Public Services and Procurement Canada spokeswoman Michele LaRose said in an emailed statement. “We remain committed to providing members of the Royal Canadian Air Force with the fighter aircraft they need to do their jobs, and ensuring the best possible value for Canadians.” The three companies were originally supposed to submit their bids at the end of March, but that was pushed back to June 30 following a request by Saab. Despite the pandemic, the federal procurement department insisted last month that it still expected companies to meet that deadline. This report by The Canadian Press was first published May 6, 2020. https://nationalpost.com/pmn/news-pmn/canada-news-pmn/canada-invests-another-us70m-in-f-35-development-despite-no-commitment-to-buy

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  July 20, 2020 | Local, Aerospace, Naval, Land, C4ISR, Security

  Why it is time for smart protectionism

  Put simply, Canadian governments have a responsibility to practise smart protectionism where the risks to Canadians' personal security and national security are high. Free trade is good economics. Protectionism is bad. Global supply chains are efficient. Favouring domestic goods, services and industries is inefficient. Canada has long adhered to these orthodoxies. And most of the time it makes sense to do so. However, through the COVID-19 pandemic, both the public and private sectors have seen weaknesses associated with heavy or total reliance on foreign sources and global supply chains for essential goods, notably personal protective equipment (PPE). As of June 2, for example, the Government of Canada had ordered close to 122 million N95 masks from international suppliers, yet 12 million had been received and 9.8 million of those failed Canadian standards. We are learning the hard way that foreign sources cannot necessarily supply the products we need in the time, quantity or quality required during a national or global emergency. China, as the dominant global producer of many of these PPE supplies, has become the focal point for an emerging debate around domestic control over certain goods, technologies, and services. A recent report from the Henry Jackson Society in the U.K., for example, has argued the “Five Eyes”—the U.S., U.K., Canada, Australia and New Zealand—are far too reliant on Chinese sources for all kinds of strategically important goods, and that this is a threat to the national security of those countries. The Canadian Security Intelligence Service, too, has warned that Canadian companies that produce certain critical technologies are vulnerable to foreign takeovers by entities with agendas hostile to Canada's interests. This is not just an issue with China, though. In Canada, we like to believe that in national or global crises we can rely on the U.S. or other allies for help. Canada, in other words, would be at or near the front of the line with allies. The COVID-19 pandemic, and the behavior of the U.S. and European countries, suggests this is naive. Italy, a founding EU member, requested and was denied face masks from the EU's stockpile at the peak of their COVID-19 outbreak. In April, a presidential executive order gave the U.S. Federal Emergency Management Agency the power to “allocate to domestic use” several types of PPE that would otherwise be exported. U.S. produced masks bound for Germany, a close American ally, were reportedly diverted back while in transit. Ultimately, Canada was exempt from the U.S. order, but this episode should tell us that global emergencies can lead to “home front comes first” attitudes, even among our closest allies. Fundamentally, the issue comes down to one of efficiency versus necessity. Sometimes, in some areas of the economy, security of supply is more important than efficiency. While this thinking is new to most companies and governments in Canada, it is not new to Canadian companies working in defence and national security. The Canadian defence industry has long highlighted the need for focused sovereign production and control in key national security capabilities—in part to ensure security of supply—as our allies in the U.S., Europe and elsewhere have been doing for generations. The argument has fallen largely on deaf ears. There seems to be a greater aversion in Canada to any kind of protectionism than among our more pragmatic allies. There is also a belief that Canada can always rely on obtaining critical supplies from the U.S., owing to both our close trading relationship and bi-lateral defence agreements dating from the 1950s that purport to establish an integrated North American defence industrial base. Canada puts too much faith in these beliefs, to our peril. While we can still hold free trade and integrated global supply chains as the goal, we also need to recognize that this view of the economy does not always serve our national interests. Put simply, Canadian governments have a responsibility to practise smart protectionism where the risks to Canadians' personal security and national security are high. Christyn Cianfarani is president and CEO of the Canadian Association of Defence and Security Industries (CADSI). The Hill Times https://www.hilltimes.com/wp-content/uploads/2020/07/072020_ht.pdf