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Canadian Aerospace Strategic Framework – Industry Canada – Oct 2009 Industry Canada's National Aerospace and Defence Strategic Plan: Bombardier CSeries as a Case Study for Effectiveness of IC's Goals According to the mission statement of Industry Canada's loans project, SADI, the Strategic Aerospace & Defence Initiative, as well as 'future-gazing' by IC's technical partnership, the National Aerospace and Defence Strategic Framework , our federal government encourages the development of new "domestic platforms". By that, they mean Canadian-built airplanes. Distinguishing Between 'Assembly of Components' and 'Manufacture of Major Platforms' Any aerospace industry matches tremendous development risks with a lucratrive return for successful ventures. But a national aerospace industry also represents strategic investment. Strategic interests must be carefully defined. Unfortunately, bureaucrats have a tendency to elide. If all critical distinctions are left out of focus, any 'initiative' can be declared a success. Industry Canada began well with their emphasis on 'domestic platforms' but then it became distracted by the lucrative trade in supplying airframe and other aerospace components to the major international 'primes'. This is understandable. Part of the IC mandate is to increase Canada's industrial competitiveness, thereby increasing export revenues. Supplying parts to foreign manufacturers appears risk-free. Let them chance it while we crank out the widgets. Being risk-averse is almost a default-setting for bureaucrats but can't be allowed to become one for our entire country. The Aerospace Industry Association of Canada, in its "Future Major Platforms Report", also placed emphasis on new domestic platforms. The AIAC list of five new major platforms representing significant opportunities for Canada's aerospace firms includes only one Canadian aircraft – Bombardier's CSeries. Citizens will want to investigate the depths of Canadian industrial participation in the sole new aerospace project in Canada. In effect, Industry Canada bureaucrats are acting as aerospace investment consultants for the taxpayer. It behooves citizens to judge whether those bureaucrats have invested wisely. 'Show us the money!' How to "build on the Canadian strength in aircraft manufacturing" Bombardier recently made news breaking ground at Mirabel for a CSeries assembly plant – assembly being the key word there. Over the years, Bombardier moved much of its airframe compenent work out of Canada.[1] No one questions that the CSeries is a Canadian aircraft but, that term may now need re-defining. Bombardier may have its corporate headquarters in Montreal but Bombardier now, quite rightly, regards itself as an international aerospace firm. Bombardier will need funding on the order of $2.6B to develop the CSeries. That investment will come, roughly in thirds, from Bombardier (and its shareholders), CSeries suppliers, and repayable loans from government. Thus far, Canada has loaned $350M and Quebec another $118M. The governments of the UK and Northern Ireland have also invested in the CSeries. The rationale for the UK loans is Bombardier's Belfast facilities. The level of Belfast involve- ment in the CSeries has diminished somewhat. In May 2005 Bombardier had announced that the composite wings, tailplanes, and engine nacelles would be developed by Belfast. Since then, the empennage was shifted to China, and nacelle work moved to engine-supplier Pratt & Whitney. Britain is unlikely to be complaining though. Belfast will be entirely responsible for CSeries wing design/production – just as Airbus wings are designed and built in Britain. Another nation which stands to benefit considerably from its involvement in the CSeries is not loaning development funds to Bombardier. That exception is the People's Republic of China. Although Bombardier's Chinese partner is part of a state-owned combine, Beijing will not be a risk-sharing partner. Instead, Bombardier is supplying capital for Chinese projects. Who does what on Bombardier's CSeries? Keeping Track of the Components Score Sheet  Above is a rough breakdown of major CSeries components colour-coded by their country of origin. As mentioned, the CSeries composite wing (and their tip-end winglets) are built in Britain [coloured grey]. Wing leading edges are from Belgium [gold]. The wing trailing edge surfaces are made in Italy [bright green] and their actuators in the US [blue]. The fuselage, doors, etc. are built in sections in China [red]. Tail surfaces are from Italy [bright green]. The undercarriage is made in Germany [fuchsia], the wheels and brakes in the US [blue]. Engines and their nacelles, pylons, etc. are from the US [blue] under the control of Pratt & Whitney. Globalization: Competitive Advantages among the CSeries' Regional Component Suppliers 
Composite wing construction (a cause of grief in other projects) is a specialty in Belfast. The wing is built using
a proprietory technique [2] in two dedicated composites facilities – which includes access to six local
autoclaves. There is no equivalent facility in Canada (which, no doubt, workers at
the Belfast plant are hoping will make them immune from the lay-off cycle).So, composites (and other 'advanced materials' ) may be a priority for Industry Canada but that 'future' already exists in Northern Ireland. Bombardier has no need to push composites in Canada. And their traditional material - riveted aluminum? Any work there for Canadians? Some, but not much. The aluminum-lithium alloy fuselage and doors are to be built in China. 
Shenyang Aircraft Corp., part of state-owned China Aviation Industry Corporation (CAIC ,
formerly AVIC I ) is shipping the CSeries fuselage sections to Bombardier – just as
they do for the Q400. Part of this deal involves Bombardier becoming a risk sharing partner in the Chinese ARJ21-900
regional jet which, by agreement, will have maximum CSeries fuselage
commonality.Bombardier does not view the Chinese ARJ21 as a competitor for their CSeries. [3] In most senses the ARJ21-900 won't compete with Bombardier. It is worth noting though that other Bombardier suppliers are now becoming direct competitors (eg Mitsubishi Heavy Industries whose MRJ will compete with the CSeries while MHI continues to supply Bombardier with components for other types. [4] Direct competition aside, Bombardier is aware that China's aero industry (CSeries partner Shenyang included ) are masters of reverse engineering. [5] Other Regional CSeries Suppliers: a Tangled Web of International Interests and Benefits 
The CSeries tailplane is made in Italy by Alenia Aeronautica, a Finmeccanica company which also makes tails for
Boeing's 787 Dreamliner. Another Italian firm, Magnaghi Aeronautica e Salver (Naples and Brindisi), will
provide the CSeries flaps, spoilers, and main landing gear doors – all in composites. [5]Having Alenia onboard demonstrates how international suppliers tend to erode competitive instincts. Alenia supplies both Boeing and Airbus but Alenia is also a partner in ATR and manufacturers the empennage for the ATR-42/-72 series, competitors to Bombardier's Q400. 
The landing gear for the CSeries is by Germany's Liebherr [6] (current supplier
for Global Express and Challenger 300 ) but wheels, brakes, etc., will all come from US suppliers
as will systems such as the fly- by-wire and auxiliary power unit. [7] The CSeries' engines are
also American, the PW1524G geared turbofan made by Pratt & Whitney. P&W is also managing the CSeries'
engine nacelles which, like the engine pylons, are awarded to US contractors.Fabriqué au Canada? Fabricating a Fable or Manufacturing a Future 'Major Platform'? So, where does that leave us? Major CSeries airframe components will all be manufactured abroad. China will build the fuselage sections, doors, and wingbox. The UK will make wing structures and winglets. Italy will build tailplanes and some wing control surfaces. Germany will supply the landing gear. The US will provide engines, other components, and systems. 
Examining CSeries components for Canadian industrial participation gets complicated. Eg: Spirit AeroSystems,
makers of the engine pylons, [8] are Wichita-based and have no Canadian facilities. But Spirit was formed by an
investment firm from Toronto, Onex Corporation. Is that 'Can-con'? IC's bureaucrats must clarify their definition.
The engine is even more complicated. The PW1524G is a Hartford project but final assembly and testing will
be performed by P&W subsidiary Pratt & Whitney Canada of Montreal. [9]Having emphasized new 'domestic platforms', Industry Canada then blurred the distinction between manufacturing airframes in Canada and assembling foreign components. Making a few components in Canada doesn't alter that mix much. [10] So, is the assembly 'Canadian'? 
Bombardier lists itself as having responsibility for the CSeries' cockpit. Again, it's hard to quantify such
work. The cockpit displays (right) will be provided by Rockwell Collins (using their Pro Line Fusion currently
flown on Bombardier's Global Express XLR ). Bombardier doesn't make its own pilot seats (the XLR has
Goodrich seats) or other major cockpit fittings. That being the case, in what way is Bombardier a manufacturer of
cockpits. Bombardier designs the cockpit, then other supplier components are assembled.Conclusion: More Precise Distinction between Canadian 'Assembly' and 'Manufacturing' 
The CSeries is certainly a Canadian project in that Bombardier, although a global firm, is
headquartered in Montreal and that final assembly will be performed at Mirabel. The Canadian taxpayer also loaned
Bombardier much of the R&D funding for the CSeries. But the questions remain: Is the CSeries
truly a 'domestic platform'? Is it a Canadian aircraft? Is the Canadian taxpayers' investment serving to advance
the Canadian aerospace industry?The distinction between manufacturing and assembly is not splitting hairs. Either approach can be highly profitable for Canadian aerospace and advance the 'state-of-the-art'. But, at a policy level, it is important that Industry Canada planners firmly divide 'domestic platforms' from participation in the international components-exchange business of 'global' aerospace. [1] No modern aircraft is entirely 'OEM'-made. Bombardier dispersed production of much of its product line (including tooling for 'heritage' Canadair and DHC aircraft ). Outside Canada, airframe suppliers include: GKN & Alenia in Europe, Mitsubishi, AIDC & Shenyang in Asia. [2] This process is RTI or Resin Transfer Infusion (which combines Resin Transfer Molding with autoclaving). In the RTI process, airframe structures are first formed from dry fabrics in jigs, the dry composite assembly is put into an autoclave, and then it is injected with resin. [3] Although the CSeries and ARJ21 share a 2+3 seating arrangement, these two aircraft are not seen as being in competition. The stretched ARJ21-900 is the model that Bombardier has an interest in. The -900 will seat almost as many passengers as a CSeries CS 100 – up to 105 vs 100-125 for the CS100. But the CSeries has almost double the range of an ARJ21-900. The CS100 has a range of 4074 km (2200 nm), extended range 5463 km (2950 nm), 125 single class. ARJ21-900 range is 2200 km (1200 nm), ER of 3300 km (1800 nm) seating 105 in a single class. [4] Previously a Bombardier Q400 supplier, MHI makes components for the CRJ-700/CRJ-900 (aft fuselage), Challenger 300 (wings), and Global Express (both wings & center fuselage). [5] Shenyang is best-known for producing reverse-engineered Soviet fighters – the MiG-19 as the J-6, the MiG-21 as the J-7 (production of which was moved to Chengdu in the 1970s). [6] Liebherr is known for large cranes but two divisions are CSeries suppliers – landing gear by Liebherr Lindenberg Germany, environmental controls by Liebherr-Aerospace Toulouse. [7] Parker Hannifin supplies the CSeries' fly-by-wire system, Honeywell provides the APU. [8] In 2005, Onex Corp. bought Boeing's KA and OK commercial aero-structures businesses forming Spirit AeroSystems (Wichita, Tulsa/McAlester, Prestwick & Samlesbury in the UK). [9] P&WC originally proposed a PW6000-powered CSeries to Bombardier (having received reimbursable loans from Quebec for $75M and in Federal R&D funding from TPC for $207M. [10] To further complicate matters, many CSeries 'US' suppliers have Canadian subsidiaries. C&D Aerospace Canada (part of US C&D Zodiac, in turn, part of France's Zodiac AS ) will have a part in fitting out the cabins of the CSeries. Should that includes major design work and fabrication of finished cabin fittings, this could reasonably be described as 'Canadian'. |
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