Updated 27 July 2021
The Globe and Mail reported on Saturday that labour negotiations at De Havilland had broken down over the issue of preserving union jobs in the Greater Toronto Area (GTA). Bombardier, the owner of the storied Dash-8 turbo-prop plane used by many regional carriers, sold the production facility in June 2019 to Longview Aviation Capital Corp. for $300-million.
The issue
The owner announced earlier this year that it was not committed to the GTA (Downsview) facility after the current order book expires. According to Gerry Diaz, the president of the powerful Unifor union, the new owner may move future production to Alberta. A future scenario could pit Ontario Premier Ford squaring off against Alberta Premier Jason Kenney over the questions of 1) 2,200 highly skilled union jobs moving to Alberta and 2) union jobs becoming non-union, high paid, highly skilled jobs, and 3) low taxes and government incentives luring enterprises into Alberta. This strategy is similar to the strategy followed by non-union, low tax, southern U.S. states which attracted many automobile manufacturing facilities from northern, unionized states.
Who is Longview Aviation Capital Corp (LACC)?
According to its website, LACC ” manages a portfolio of long-term investments in the Canadian aerospace industry. LAC portfolio companies are focused on providing world-class aviation products and services in support of legendary Canadian aircraft designs.” The company operates five business units:
Viking– “the global leader in utility aircraft services, & manufacturer of the world-renowned Series 400 Twin Otter. Viking is the Original Type Certificate holder for all out-of-production De Havilland aircraft, DHC-1 – DHC-7, as well as the Canadair 215 & CL-415 aerial firefighters. Viking provides exclusive global spare parts manufacturing and product support for these fleets.”
De Havilland
Longview Aviation Asset Management– “established in 2016 to provide attractive financing and lease options, as well as trade-in aircraft capabilities, for aircraft supported and manufactured by Viking Air Limited (Viking).”
Longview Aviation Services (LAS) – “Established in 2018, LAS has launched the CL-415EAF “Enhanced Aerial Firefighter” conversion program, creating the next generation of the world’s only purpose-built aerial firefighter and multi-mission amphibious platform.
Pacific Aviation Services –“Headquartered in Victoria, BC, with additional operations at its training centre in Calgary, AB, Pacific Sky Aviation Inc. operates the world’s only certified Category “D” Full-Flight Simulator for the Series 400 Twin Otter.”
Thus we have an integrated plan manufacturer and servicing enterprise which specializes in a wide range of smaller planes. What is notable about the business? It could be the “go-to” aircraft manufacturer and servicer when the climate emergency is just getting started.
But who is behind LACC? Its website is a marketing brochure for the various company’s operating divisions. We know that LACC was registered in Alberta on 29 May
2020 and its registered office is at 4500, 855 2 Nd Street S.W. in Calgary. Who are the corporation’s offices and directors? According to a GOOGLE search the company is owned by owned by Sherry Brydson, “granddaughter of deceased newspaper magnate Roy Thomson and cousin of David Thomson, the largest family fortune in Canada.” According to Bloomberg rankings, Brydson is worth $13.2-billion making her one of the richest women in the world.
February announcement
In a February 2021 news release the company laid out its case for considering relocation.
Downsview Production Site
The Downsview production site was sold by the previous owner Bombardier in 2018, with deadlines for the site and runway to be decommissioned. Pursuant to Bombardier’s sale agreement, the Dash 8 program’s current site lease expires in 2021. Accordingly, De Havilland Canada has begun preparing to leave the site over the latter part of the year. There are a number of excellent production site options in Canada, and the company will be ready to meet new aircraft demand as the industry recovers.
Added Mr. Curtis: “The transition from Downsview is a step in the planned evolution of the Dash 8 platform away from its former owner, and is an important part of our vision for Longview Aviation Capital as a leading global aviation company. While this evolution is taking place against the backdrop of unprecedented industry circumstances, we see a bright future for De Havilland Canada and the Dash 8. The Dash 8 is a segment defining aircraft, and it has never been in better hands – strengthened by being part of a robust aviation portfolio with patient long-term ownership. We are also the only company to have successfully re-launched an out-of-production aircraft, with our team bringing the renowned Series 400 Twin Otter back into production. We are fully committed to the Dash 8 and intend to further enhance its capabilities and performance, and remain a leader of the regional aircraft market of the future.
“We are sensitive to the impact that a production pause will have on our employees, and are committed to treating everyone with transparency and respect. This decision is no reflection on the quality of our team, which has performed exceedingly well through the disruptions of the past year.”
Undoubtedly Invest Alberta has been very active (or should have) in the last six months in developing a tailored “Welcome to Alberta” presentation for the company. According to Invest Alberta’s website “Alberta Can.”
Whatever your investment and business goals are, you can make them happen in Alberta, Canada. This is where you’ll find the most liveable cities, highly-educated workforce and some of the most business friendly policies in North America.
Given the enormous wealth of the owner, it is questionable whether any government financial assistance is required to lure the company westward. However, it would not be the first time, and won’t be the last situation where we see an investment hungry, conservative government provide taxpayers’ funds to bribe wealthy firms to come to their jurisdiction.
One might speculate that the perfect place to build an aircraft manufacturing facility would be near the Calgary airport. With the weakening of the energy sector a foregone conclusion. this move would be consistent with the Economic Recovery Plan which highlighted avionics as an area for development. With plenty of unemployed engineers and workers from the oilpatch, it doesn’t take too much imagination to make the case for a westward move. In addition, there is a huge vacancy rate in downtown Calgary’s office towers.
Mr. Ford would likely react negatively to this, but isn’t Kenney taking Ford’s playbook of welcoming investment with open arms? What’s next- a major bank head-quartered in Alberta? Now that would be a big battle royal!