Thankful for aeronautical success
W
ith thanksgiving just around the corner and a trade war brewing between Bombardier and Boeing, one wouldn’t think to look to Canadian aeronautics with any kind of gratitude, let alone hope that it might point the way forward for our economy.
But as crony capitalists on either side of the border rage at each other over rules neither ever intended to follow, a robust outfit in Victoria has quietly and steadily grown in reputation and profit: Viking Air.
As of April 2017, Viking Air has been manufacturing new DHC-6 Twin Otters, originally designed and built by DeHavilland Canada in 1964, for 10 years. The versatility and durability of Twin Otters – there are over 500 of the original 844 built in operation – as well as other iconic DHC planes – the Beaver, the Single Otter, the Dash 7 – is well known. What’s impressive is that even in subsidyaddicted Canada, the free-market can bring a product back from the dead.
The history of the aviation industry in this country is messy: the cancellation of the Avro Arrow remains a thorn in the side of many, and the necessity of Canadian aerospace market share is the stuff of nationalist fervor not normally seen outside of sports stadiums.
For these reasons and plenty more malicious, no government has cut Bombardier off from the taxpayer life support that keeps their doors open. Like innovating our medical care, it’s political suicide. DeHavilland Canada had its unfair share of government assistance too over the years, as successive regimes tried to keep it alive by many of the same methods seen today.
In the 1970s DHC was bought by the federal government. In 1986, after reprivatization, DHC was sold to Boeing, then bought back through Bombardier in 1992 when Boeing shelved any plans for production and put it up for sale in an act of revenge for losing the Air Canada bid to Airbus.
The comeback story: while the big guys were fighting each other and struggling to keep a clear vision of growth for the future, Viking Air acquired the exclusive right to make parts for the Beaver and Single Otter in 1983.
Their knowledge of the DHC brand grew, culminating in purchasing all the type certificates for DHC 1 through 7 in 2005 and thus the exclusive right to build them. There was only one question left – if we build it, will they come?
Market research indicated yes, and by the time the Viking DHC-6 Twin Otter 400 Series production was announced in 2007, Viking was already carrying 27 orders for planes. Markets shift all the time, but from different sources it would appear that demand remains strong, with over 100 having been delivered, nearly two planes being built a month, and orders stretching into 2020. An impressive legacy for a company that once made spare parts for other firms’ aircraft.
Obviously there are fan clubs and websites than can do a better job of summarizing this than I can. Another point that might have occurred to many readers is that after some dark columns this is my first good news story in a while on a totally random topic. What gives?
To answer bluntly, I’m tired of seeing the same bad solutions to the same old problems. We have been using subsidies and preferential treatment for so long, we’ve forgotten what can happen if we follow the basic rules of the market. In this latest tussle between Canada and the United States, via Bombardier and Boeing, it’s clearly time for some more innovative ideas.
What is to be gleaned from the Viking Air success story I’ve just re-iterated is that even in our era of marginal growth, the old principles of capitalism ring true.
To those who say our aerospace industry is too valuable to be left to the winds of economic realities, just look at the new Twin Otter: a state-of-the-art aircraft, being designed and built here, flying all over the world after 20 years out of production.
That’s the power of market demand – it creates a new supply.