FlightGlobal.com
Home
Premium
Archive
Video
Images
Forum
Atlas
Blogs
Jobs
Shop
RSS
Email Newsletters
You are in:
Home
Aviation History
1989
1989 - 0017.PDF
Lowe outlines Canadair future West Germany's DLT is the first airline to agree to order Canadair Regional Jets by Ian Goold Canadair now expects to launch its 50-seat, 1,000 n.m.-range regional jet (RJ) in the next few weeks. The launch news comes as Canadair, already facing a five-month order backlog on its Challenger corporate jet, pre pares for the much-delayed first flight of the CL-215T turbo prop amphibian utility aircraft. Canadair president and chief executive Donald Lowe says that the company has come a long way since it was bought from the Canadian Government by Bombardier. "The RJ decision is very important to us. There is a high likelihood that it will proceed; if not, the engineering work can go back into our corporate aircraft," says Lowe. Canadair plans to make the $13-5 million Challenger the basis for a range of derivative aircraft. "The vision we have is for a family of aircraft. We do not want to be a one-aircraft stable," says Lowe. He envisages "today's aircraft, a bigger one with more range and payload, the commuter., and a larger commuter. "The challenge is to build a $14 million regional jet with profit for both manufacturer and the operator." Aware that Canadair had quoted a year-end go-ahead for the RJ pro gramme, Lowe points out that slippage at this stage does not affect initial aircraft. "The first part of the programme is largely paperwork, so there is little Boeing Car Boeing's Canadian division must do all it can to reduce costs, says president Ron Woodard. He has warned managers at the Toronto factory that employees should not suppose that Boeing has a lot of money just because it is investing so much in the company, previously known as de Havilland Canada. "Any cost that is not needed to support the Dash 8 is not justified. Our objective has to be the elimination of unnecessary costs, to mee,t schedule and commitments to customers, but also to make money." The manufacturer faces increasing shortages. Operations vice- president Norm Kingsmore has told management and super visory personnel that "every- implication for deliveries. It is followed by a substantial certifi cation and development phase that is scheduled to take 36 months. We should be able to better that."?* One of Lowe's biggest chal lenges has been to restructure Canadair, making "significant changes to match the real world". He says that the situ ation arose from the company's interface with the Canadian Government: "It had a Crown Corporation design. Aerospace and defence groups have been established—fully autonomous and self-contained. We are trying to develop an entrepreneurial spirit". The aerospace group looks after Challenger, CL-215, and contracts work, while the defence group handles surveil lance systems, military aircraft support, and logistics. Out- body contributes to shortages. We must do our business on time and must respond to each other's requirements. We're all involved in the shortage prob lem." Woodard has challenged managers to cut costs over the next 18 months. "It is your responsibility to eliminate waste; anything that does not contribute to Dash 8 pro duction. Waste costs this division millions [of Dollars] a year, and is estimated to be 25-40 per cent of revenues." Comparing turboprop aircraft with small jets in shorthaul commuter operations, market ing and sales vice-president Tom Appleton says that the company has an opportunity, "if standing changes include the centralising of accounts and the appointment of a defence group head. Lowe's current target is to earn C$120 million in the first three years, to pay off Bombar dier's purchase cost. "We've re established Challenger credi bility. People know that they are not buying an orphan." Chal lenger production is set to increase to 24 aircraft in 1989, "and more the next year". The Canadair chief sees the CF-18 programme as a useful source of technology, "which we want to pass on to existing programmes". He is looking for additional collaborative oppor tunities to help expand Cana- dair's business base. "We are still 50-60 per cent Challenger. We need to build up subcon tract business. We are good at it," he says. we can produce an aircraft with the right characteristics [of] speed, economy, seat count, and ultimately quietness. We have the right product mix [which] will give airlines unprecedented flexibility. It is the reason why we will be dominant in the 1990s." Woodard acknowledges that market domination is a tall order, "but not unattainable". On-time launch of the Dash 8-300A and increased pro duction rates prove the poten tial, which is also reflected in new ways of doing business,, he says. Material vice-president Bill Applegate says that fong- term contracts with suppliers for four or five years at guaran teed prices "not only add stability, but save money". The manufacturer has won more than C$1 • 5 billion worth of business from Aerospatiale and British Aerospace for Air bus A330/A340 design devel opment and manufacture work. Bombardier is to invest about a tenth of this sum in its facilities for the A330/A340, while addi tional national and provincial government support is worth half the company's investment. Lowe describes work for Boeing as "very demanding". Canadair has also worked for Lockheed on the C-5B, and expects to get work on the P-4 Lraaca. It is pursuing more subcontract work as a deliberate policy. A spin-off is the sub sequent technology transfer. Lowe cites the Aerospatiale work as an example. It will give Canadair access to "third- generation" computer-aided design technology. China takes another Challenger Canadair has handed over the first of two Challenger 601-3A aircraft ordered by China last May. Canadair president Donald Lowe handed over the Chal lenger to Gen Wang Zhen Duo of the Air Force of the People's Liberation Army, which oper ates the aircraft, and Xie Da Tong, vice-president of Poly Technologies, the Chinese procurement agency. The Challenger 601-3A's 14-passenger "business" inte rior was designed and installed by Innotech Aviation of Montreal. ada tackles cost problem FLIGHT INTERNATIONAL, 7 January 1989 IS
Sign up to
Flight Digital Magazine
Flight Print Magazine
Airline Business Magazine
E-newsletters
RSS
Events
