C<tl. c i 
 
 /£/?? 
 
 
 World Survey of 
 Civil Aviation 
 
Digitized by the Internet Archive 
 
 in 2012 with funding from 
 
 LYRASIS Members and Sloan Foundation 
 
 http://archive.org/details/worldsuOOunit 
 
World Survey of 
 Civil Aviation 
 
 CANADA 
 
 
 
 ^TES O* 
 
 U.S. DEPARTMENT OF COMMERCE 
 
 Maurice H. Stans, Secretary 
 
 Rocco C. Siciliano, Under Secretary 
 
 Kenneth N. Davis, Jr., Assistant Secretary 
 
 for Domestic and International Business 
 
 William D. Lee, Administrator 
 Business and Defense Services Administration 
 
 June 1970 
 
 
 o 
 
 For sale by the Superintendent of Documents, U.S. Government 
 
 Printing Office, Washington, D.C. 20402 Price 30 cents 
 
Foreword 
 
 This is the twelfth in a series of foreign market surveys of civil aircraft 
 and aeronautical products. It includes an evaluation of the role of air 
 transportation in Canada, with particular emphasis on fleet composition, 
 flight operations, and marketing and investment opportunities. It also 
 gives an extensive description of the Canadian areospace industry, the 
 fourth largest in the free world, and of government support furnished the 
 industry. The survey is designed to contribute marketing information 
 which will enhance U.S. ability to maintain its position as worldwide 
 leader in the aerospace industry. 
 
 William D. Lee 
 
 Administrator 
 
 Business and Defense Services Administration 
 
 June 1970 
 
Contents 
 
 Page 
 
 Foreword 2 
 
 Acknowledgments 6 
 
 Part 1. Air Transportation 
 
 Role of Air Transportation 7 
 
 Government Structure 8 
 
 Government Policy Toward Airlines 9 
 
 Aircraft on Register 10 
 
 Commercial Air Services 10 
 
 Air Canada 11 
 
 Canadian Pacific Airlines 12 
 
 Eastern Provincial Airlines 13 
 
 Pacific Western Airlines 14 
 
 Quebecair 14 
 
 Transair 15 
 
 Nordair Ltd 16 
 
 Wardair Canada Ltd 16 
 
 Great Northern Airways Ltd 16 
 
 Midwest Aviation Ltd 17 
 
 Other Airlines 17 
 
 General Aviation 17 
 
 Nonscheduled Transport and Specialty Services 17 
 
 Helicopter Operators 18 
 
 Private Flying 19 
 
 Government Support of General Aviation 19 
 
 Airports 19 
 
 Market Potential 20 
 
 Part 2. Aerospace Industry 
 
 General Industrial Picture 22 
 
 Government Support 24 
 
Page 
 
 Defense Industry Productivity Program 25 
 
 General Adjustment Assistance Board 26 
 
 Program for Advancement of Industrial Technology 26 
 
 Defense Industrial Research Program 26 
 
 Incentive for Research and Development 27 
 
 Export Promotion 27 
 
 Avian 27 
 
 Found 28 
 
 Maranda 28 
 
 Orenda Ltd 28 
 
 Canadair 29 
 
 DeHavilland 30 
 
 Douglas of Canada 32 
 
 United Aircraft of Canada Ltd 32 
 
 Part 3. Import Duties and Taxes 
 
 Aircraft 34 
 
 Aircraft Engines and Parts 35 
 
 Sales Tax 35 
 
 Ground Equipment for Servicing Aircraft 35 
 
 Appendix 36 
 
 
Tables 
 
 Page 
 
 1. Summary of the Canadian Civil Aircraft Register 37 
 
 2. Canadian Air Carriers: Operating Statistics for Civil Aviation, 
 1968 38 
 
 3. Specialty Services: Utilization and Revenues 39 
 
 4. Canadian Commercial Air Carriers: Equipment as of January 15, 
 1969 40 
 
 5. Canadian Commercial Air Carrier Fleet by Type of Power Plant 43 
 
 6. Hours Flown by Canadian Commercial Air Carriers 43 
 
 7. Canadian Civil Aircraft Reporting Flying Hours in 1967 44 
 
 8. Canadian Private Aircraft Reporting Flying Hours in 1967 44 
 
 9. Canadian Airports 45 
 
 10. U.S. Aerospace Exports to Canada 46 
 
 11. U.S. Imports of Canadian Aerospace Products 48 
 
Acknowledgments 
 
 The U.S. Foreign Service in Canada compiled much of the data used 
 in this survey. Special appreciation is extended to Susanne D. Lind, who 
 initiated the survey, and to David Fellman, Bureau of International Com- 
 merce, who supplied the import duty and tax information. 
 
 The publication manuscript was written in the Transportation Equip- 
 ment Division, Office of Consumer Goods, Business and Defense Services 
 Administration, by Jane C. Holleran. Additional detailed information 
 may be obtained from the Transportation Equipment Division. 
 
Part 1. Air Transportation 
 
 Role of Air Transportation 
 
 With an area of 3.85 million square miles, Canada is almost 200,000 
 square miles larger than the United States. Her population, however, is 
 21.2 million, about one tenth that of the United States. Moreover, two 
 thirds of Canada's population lives in southern Ontario and Quebec 
 Provinces. 
 
 As a result, transportation is extremely important to the Canadian 
 economy, and it is highly developed in all forms. Railroads, with over 
 44,000 miles of main tracks, play a large role, but they no longer occupy 
 their former monopoly position. Water transport is widely utilized, 
 although seasonally restricted by the cold winters. Roads are in good 
 supply, particularly in the more populated sections, and overall there are 
 approximately 450,000 miles of highways and rural roads in Canada. 
 Many of the sparsely settled outlying areas, however, are virtually with- 
 out roads of any kind. These areas rely heavily on air transportation, as 
 do many ports of northern Canada which in winter can be reached only 
 by air. Air transport, of course, plays an important role in the more 
 populated areas of Canada. 
 
 In 1967 Canada's domestic airlines reported carrying 738,000 passen- 
 gers (up 17 percent from 1966) over 321,000,000 passenger kilometers 
 (up 15 percent from 1966), with a 48 percent load factor. Published 
 1969 data shows that Department of Transport (DOT) air traffic con- 
 trol towers recorded 4,312,102 movements, 263,878 more than 1967. 
 Similar data on the 111 airports without towers show 1968 aircraft move- 
 ments at 1,462,126, a 38.3 percent increase over 1967 when 105 airports 
 handled 1,057,511 movements. 
 
 International air traffic entering and leaving Canada in 1967 showed 
 an increase over 1966 of 40 percent in number of passengers and 11.1 
 percent in amount of freight carried. Canadian air carriers handled 47 
 percent of the passengers and 49 percent of the freight, as compared with 
 56 percent and 53 percent, respectively, the previous year. 
 
International air traffic entering and leaving Canada on Canadian car- 
 riers in 1968 showed an increase over 1967 of only 1 percent in the num- 
 ber of passengers (2,393,924 vs. 2,370,018) but a 33.2 percent increase 
 in the amount of freight tons carried (35,910 vs. 26,945). The small 
 increase in number of passengers (1 percent versus 18 percent in 1967) 
 is largely attributed to Air Canada's springtime strike. 
 
 Although there was a slowdown in growth in 1967, the importance of 
 air cargo has increased steadily in recent years. But passenger traffic 
 still holds an 84 percent to 16 percent revenue advantage. One of the 
 major factors working against air cargo has been the imbalance of 
 traffic. Much more cargo moves east and west from Toronto and 
 Montreal than is received in return. 
 
 All airlines carry cargo on regularly scheduled passenger flights. In 
 addition, Air Canada operates several DC-8's in all-cargo configuration 
 on scheduled transcontinental and overseas flights. All-cargo Vanguards 
 are also operated domestically. Pacific Western's Lockheed Hercules 
 flies cargo charters almost the world over, and the airline also schedules 
 DC- 4 cargo flights from Edmonton to Fort McHenry, Fort Chipewyan, 
 and Uranium City. Eastern Provincial operates all-cargo flights on two 
 routes. 
 
 There are nearly 30,000 registered pilots in Canada (21,300 private, 
 7,562 commercial, and 1,082 glider). Flying training activity in 1967 
 increased 14 percent over 1966; 5,315 private pilots and 1,368 com- 
 mercial pilots were trained to license standards. 
 
 Government Structure 
 
 Civil aviation is under the jurisdiction of the federal government. The 
 Department of Transport (DOT) is responsible for the promotion and 
 regulation of all Canadian civil aviation, both foreign and domestic, and 
 for the provision of facilities in connection with civil operators. On 
 February 17, 1970, the Minister of Finance announced the long proposed 
 reorganization of DOT. Changes will include conversion of DOT into a 
 ministry and creation of an air administration. 
 
 The Air Transport Board (ATB) was established in 1944 to advise 
 the Department of Transport in matters pertaining to civil aviation and 
 to license all commercial transports, subject to the approval of the Min- 
 ister of Transport. Under the recently enacted National Transportation 
 Act the ATB has become the Air Transport Committee (ATC) of the 
 Canadian Transport Commission. The aim of this legislation is to blend 
 all modes of government and private transportation, with more direct 
 control allotted to the Minister of Transport. The committee, made up 
 of five commissioners, was especially formed to help the industry to 
 develop along sound economic lines that will give fair returns to the 
 operator and adequate service to the public. The Canadian aviation indus- 
 try has so far expressed some confusion regarding the legality of many 
 of the ATC's rules and regulations. 
 
 8 
 
Government Policy Toward Airlines 
 
 In 1966 the Canadian Government announced a new air transport 
 policy that would allow for, among other things, limited regional carrier 
 competition with Air Canada and Canadian Pacific, the transfer of some 
 routes away from the two trunk carriers, and subsidies on a "use it or 
 lose it" basis. The new policy allotted the regional carriers a larger role 
 in connection with the development of domestic and international charter 
 services, inclusive tours, and new types of services. Regionals are allowed 
 to operate along the so-called main line, but without nonstop authority 
 between major terminals. The Government would like to see closer 
 cooperation among regionals, including interline and interticketing agree- 
 ments, joint training programs, and spares support. The Government also 
 announced that a committee would be established to develop greater 
 cooperation between the mainline carriers and the regional carriers in a 
 variety of fields ranging from technical and servicing arrangements to 
 joint fare arrangements and other suitable areas of cooperation. 
 
 The airlines which are currently eligible for subsidies are Pacific 
 Western Airlines, Transair, Nordair, Quebecair, and Eastern Provincial 
 Airways. Continuation of any subsidy is dependent upon developing and 
 maintaining an adequate volume of traffic. In reviewing applications for 
 subsidies the Air Transport Board is to consider suitability and avail- 
 ability of other means of transportation; require evidence that the service 
 has or will have substantial use; and set limits upon the period of time 
 during which the subsidy may be paid, unless cause is shown for con- 
 tinuation. Steps are also to be taken to assist regional carriers in the 
 acquisition of aircraft by development of a scheme for consultation 
 between the Government and the carriers regarding plans for new air- 
 craft; and by a special investigation designed to explore the possibility of 
 developing a joint approach to aircraft procurement on the part of the 
 carriers. All carriers operating on regular routes are required to 
 report to the Government proposals for multi-engine aircraft purchases 
 before firm orders are placed. Subsidies are to be given only to enable 
 the provision of the minimum equipment for eligible air services and 
 not to enable the carrier to re-equip needlessly at the public expense. 
 The Government reportedly will use Air Canada's profits to finance the 
 new subsidies for regional airlines. 
 
 Unfortunately, the Canadian aviation industry is experiencing a great 
 deal of confusion regarding the Government's new policy. There has 
 been little implementation of previously enunciated policy governing the 
 mainline and regional carriers. The record to date shows no new compe- 
 tition, no transfer of routes, and discontinuance of the only subsidy pay- 
 ments made. 
 
 Historically, the Government's policy on scheduled international serv- 
 ices has been that they should serve the Canadian interest as a whole 
 and represent a single integrated plan. Only Air Canada and Canadian 
 Pacific Airlines have the right to provide international and transborder 
 services, and each has been given its own sphere of operations. Air 
 Canada serves the United Kingdom, northern Europe (except Amsterdam, 
 
which is served by CPA) and the Caribbean. Canadian Pacific serves 
 the Pacific, Asia, Australia, New Zealand, southern Europe, and Latin 
 America. The United States, served by both airlines, and Africa, presently 
 served by neither, are exempted from these spheres. 
 
 Air Canada and CPA will continue to be the only carriers to provide 
 transcontinental service. During 1967 Canadian Pacific was permitted to 
 inaugurate its second transcontinental service, and in 1969 increased it 
 to five round trips daily. This brought CPA's share of the total market 
 near the 25 percent granted in the Government formula for trans- 
 continental service. The Government's policy has been that Canadian 
 Pacific's mainline service should not be allowed to compromise or seri- 
 ously injure the economic viability of Air Canada's operations, but that 
 above this basic minimum both Air Canada and CPA should be given 
 an opportunity for growth. 
 
 Aircraft on Register 
 
 Among free world countries, the Canadian civil aviation fleet is second 
 in size only to that of the United States. As of September 1969 there 
 were 10,591 civil aircraft on register, 3,113 of which were commercial 
 aircraft. There are also 6,709 private aircraft, 200 state owned, 18 exper- 
 imental, 91 restricted commercial, 428 ultra light, and 32 private re- 
 stricted aircraft. (See table 1.) 
 
 Commercial Air Services 
 
 The two major Canadian airlines are Air Canada, a subsidiary of the 
 Government-owned Canadian National Railways, and Canadian Pacific 
 Airlines (CPA), a wholly owned subsidiary of the privately financed 
 Canadian Pacific Railways. In addition, there are four privately owned 
 regional carriers providing scheduled (class 1) air service. They are 
 Eastern Provincial Airways, Quebecair, Transair, and Pacific Western 
 Airlines. There are also approximately 370 carriers which provide regular, 
 irregular, charter, contract, and specialty services (classes 2-7). The new 
 Federal Government review of airline policy issued during late 1968 has 
 rekindled interest in a possible merger of Air Canada and CPA, but the 
 view still exists that competition is necessary on domestic routes and to 
 a limited extent on international runs. 
 
 Canadian air carriers transported 9.3 million revenue passengers in 
 1968, an increase of 3.8 percent over 1967, and 445 million pounds of 
 revenue goods, an increase of 21.3 percent over the previous year. Reve- 
 nue passenger miles performed increased 11.5 percent to 8.2 billion, and 
 goods ton miles increased 32.8 percent to 226 million. Operating reve- 
 nues were up 13 percent to $614 million, 1 while operating expenses 
 increased 11.6 percent to $576 million. (See table 2.) Approximately 
 90 percent of the operating revenues and expenses were accounted for 
 
 1 Dollar amounts are in Canadian dollars throughout unless noted. 
 
 10 
 
by the six scheduled airlines, which also carried over 90 percent of the 
 passengers and 66 percent of the cargo. Bulk traffic, or charter revenues, 
 totaled $70.1 million, a 21.8 percent increase over 1967. 
 
 The 51 carriers operating helicopters during 1968 flew an estimated 
 160,000 revenue hours and had operating revenues of $18,614,000. 
 
 The group V 2 carriers transported 216,660 revenue passengers and 
 7,708 tons of goods in 1967, showing decreases of 3.1 percent and 
 5.2 percent respectively. Revenue hours flown were up 8.7 percent to 
 407,122. 
 
 Foreign carriers operating scheduled service in Canada transported 
 2,648,252 revenue passengers and 34,508 tons of revenue goods, up 
 69.6 percent and 20.8 percent respectively over 1966. 
 
 Air Canada 
 
 Air Canada, whose name was changed from Trans Canadian Airlines 
 on January 1, 1965, serves approximately 61 communities in Canada, 
 the United States, the British Isles, continental Europe, U.S.S.R., Ber- 
 muda, the Bahamas, and the Caribbean islands. It is the world's eighth 
 largest carrier and the largest outside the United States and the U.S.S.R. 
 (Under the proposed DOT reorganization announced on February 17, 
 1970, Air Canada would eventually become a separate crown corpora- 
 tion.) In 1967 Air Canada started operating Toronto/Montreal/Miami, 
 Montreal/Chicago, and Toronto/Los Angeles services. 
 
 In 1968 the company carried 6,413,000 passengers on scheduled 
 flights, an increase of 1.3 percent over 1967. Air freight increased 36.5 
 percent to 116,878,000 ton miles. Air express increased 16.3 percent to 
 7,878,000 ton miles, and air mail rose 6.3 percent to 22,811,000 ton 
 miles. 
 
 Available seat miles on scheduled flights increased by 20.2 percent 
 during 1968 to 9,683,835,000, while revenue passenger miles totaled 
 5,621,657,000, up 7.7 percent, making Air Canada seventh in the world 
 in revenue passenger miles flown. System total ton miles amounted to 
 711,393,000, an increase of 11.5 percent. 
 
 Net income after tax in 1968 was $8,184,000 and return on invest- 
 ment 6.3 percent, compared with $3,547,000 and 5.2 percent in 1967. 
 Operating revenues were up 12 percent to $387,628,000 and were split 
 into passengers (85 percent), freight express and excess baggage (9 per- 
 cent), mail (4 percent), and charter and incidentals (2 percent). 
 
 In 1968 Air Canada took delivery of three 139-passenger DC-8's and 
 three 196-passenger long-body DC-8-61's, increasing its DC-8 fleet to 
 27 aircraft. Deliveries of 94-passenger DC-9 aircraft totaled 18 during 
 the year, while six 72-passenger DC-9's were returned to McDonnell 
 Douglas Corporation. Introduction of additional jet aircraft, especially 
 the long-body DC-8's, resulted in larger capacity, and concurrently total 
 load factor dropped from 75 percent to 58 percent. 
 
 The airline has started a program to retire its fleet of Vickers Viscount 
 and Vanguard aircraft. Five of the airline's 23 Vanguards have been 
 
 2 For a definition of the groups see the appendix. 
 
 11 
 
removed from service and seven of 39 Viscounts have been retired. More 
 of these aircraft will be removed from service in the years to come. 
 
 In 1968 Air Canada offered a major increase in its transatlantic service 
 with 37 flights a week to the United Kingdom and 17 weekly to con- 
 tinental Europe. The airline is looking into the possibility of opening new 
 routes from Toronto to San Francisco, Washington, Philadelphia, St. 
 Louis, and Boston, as well as a route from Montreal to San Juan, Puerto 
 Rico. Resumption of service to Brussels, Belgium, is planned and service 
 to Prague, Czechoslovakia, under consideration. Air Canada is cur- 
 rently concentrating on expanding the volume of its air freight business. 
 Frequency of all-cargo service has been increased sharply. The airline 
 now offers all-cargo DC- 8 service six times a week across the Atlantic 
 and eight flights a week from Montreal to Vancouver. 
 
 In the fall of 1968 Air Canada entered an agreement with Air Jamaica 
 to purchase 40 percent interest in a new airline — Air Jamaica Ltd. Air 
 Canada will provide managerial and technical assistance to the new air- 
 line and assist with aircraft purchases and training of flight crews, reser- 
 vation agents, and other technical people. The airline started service 
 April 1, 1969, with one flight daily to New York and three daily between 
 Jamaica and Miami. 
 
 Air Canada will continue to modernize its fleet of 108 jet and turbo- 
 prop aircraft. The airline announced in early December 1968 it had 
 signed a letter of intent with Lockheed Aircraft Corporation for purchase 
 of ten 270-passenger L-1011 airbuses valued at US$161 million. The 
 first six will be delivered in 1972 with three more scheduled for delivery 
 in 1973 and the last one in 1974. It has been reported that Air Canada's 
 concept is that by 1972 the L-1011's will do the work of the DC-8 fleet. 
 Therefore, no more DC-8's will be bought after 1970. However, 8 
 DC-8-63's and 3 DC-9-32's were on order as of November 1969. In 
 addition, the airline will receive three 3 68 -passenger Boeing 747 jumbo 
 jets in 1971, and has options to purchase four of the Anglo-French 
 Concorde supersonics when they are available for service. For late in 
 the 1970's the airline has taken options on six of the U.S. SST's cur- 
 rently being developed by the Boeing Aircraft Company. Options are 
 also held for nine additional L-l Oil's. 
 
 Canadian Pacific Airlines 
 
 Canadian Pacific Airlines (CPA), one of Canada's three flag carriers, 
 is the second largest Canadian airline. This wholly-owned subsidiary of 
 Canadian Pacific Railways was created in 1942 with the amalgamation 
 of ten small independent carriers, mostly "bush" operations. 
 
 The airline's present routes extend over 57,346 unduplicated statute 
 miles. Of these, 50,464 miles are overseas routes, while the domestic 
 route mileage of 6,882 miles includes 2,444 route miles on the trans- 
 continental service inaugurated in 1959. Internationally, CPA services 
 Hong Kong, Japan, Australia, Latin America, New Zealand, Fiji, 
 southern Europe (terminating in Athens), and the United States, includ- 
 ing Hawaii, where it operates two weekly nonstop flights from Toronto. 
 
 12 
 
The airline hopes eventually to go to Yugoslavia and various Middle 
 East nations, as well as to Bangkok via Hong Kong. Air charter service, 
 halted in 1967 because of new aircraft delivery delays, is expected to 
 be resumed. 
 
 During 1968 CPA achieved record operating revenues of $99.2 
 million, an 1 1 percent increase over the previous year. Declining yields 
 and rising costs reduced net income, however, to $2.2 million in 1968 
 (down from $3.0 million in 1967 and $6.9 million in 1966). During the 
 first 6 months of 1969 revenues totaled $63.2 million, up 31 percent over 
 the same period in 1968. Passenger revenues rose 27 percent to $52 
 million and cargo increased 38 percent to $5.4 million. As with most 
 other airlines CPA is faced with costs rising at almost the same rate as 
 revenues. 
 
 Total passenger miles flown increased 107 percent in 1968 to 1.65 
 billion. Load factor dropped from 56.6 percent to 50.4 percent during 
 the same period. Revenue ton miles rose 14.7 percent in 1968 to 210 
 million, while available ton miles increased 23.2 percent to 472 million. 
 As of January 1968 CPA had 4,200 employees, and by 1971 anticipates 
 having over 6,000. 
 
 CPA has an all U.S. fleet made up of ten DC-8's (used on international 
 and transcontinental routes), including four DC-8-63 stretched jets; five 
 DC-6's; three DC-3's; and seven 737's. Four Boeing 727 jet aircraft are 
 on order, two for spring 1970 delivery. The airline holds three delivery 
 positions for the Boeing 2707 supersonic transport and expects to order 
 three or four more 737's. As of this writing there are no immediate plans 
 for acquiring jumbo jets. Conversely, CPA is leasing one of its stretched 
 DC-8's to another airline and is considering leasing a second in order to 
 avoid the possibility of overcapacity for a while. 
 
 CPA has a $24 million maintenance and overhaul base at the new 
 Vancouver International Airport. The maintenance facilities are designed 
 to accommodate both jumbo and supersonic jets in addition to aircraft 
 presently operated by the company. 
 
 Eastern Provincial Airlines 
 
 Eastern Provincial Airlines (EPA), based in Gander, Newfoundland, 
 serves the five Atlantic provinces with scheduled, bush, and contract 
 services. EPA, which merged with Maritime Central Airways in 1963, 
 has been in financial difficulties for several years. In 1966 the carrier 
 suspended some scheduled services and threatened further decreases if it 
 did not receive direct subsidies. The Newfoundland provincial govern- 
 ment, which has in the past guaranteed debentures issued by EPA, 
 authorized a 25 percent subsidy on EPA fares between Newfoundland 
 and Labrador, effective July 1, 1966. In 1967 EPA had a net deficit of 
 $610,832. However, 1968 figures show EPA earning $76,000. In 1969 
 Nordair and EPA made an equipment pooling arrangement, but full ac- 
 quisition of EPA by Nordair was postponed. The airline serves New 
 Brunswick, Newfoundland, Nova Scotia, and other east coast areas. 
 
 EPA carried 138,377 passengers on 36.4 million revenue passenger 
 
 13 
 
miles during 1968, an increase of 25.8 and 34.3 percent respectively 
 over 1967. Ton miles reported were 2.8 million in both 1967 and 1968. 
 Total operating revenues in 1968 were $9.1 million, an increase of 24.6 
 percent over the previous year. 
 
 EPA employs 475 people and has a fleet of four DC-3's, one DC-4, 
 three Heralds, six DHC-3's, five DHC-2's, five Beavers, one Turbo 
 Beaver, five Otters, five Cansos, one Baron, two Super Cubs, three 
 Sikorsky S'55's, and two Convairs. 
 
 Pacific Western Airlines 
 
 Pacific Western Airlines (PWA), based in Vancouver, is the largest 
 regional airline and the third largest airline in Canada. PWA serves west- 
 ern and northwestern Canada on a scheduled and charter basis and makes 
 international charter flights to the Caribbean and Europe. Charter flights 
 alone carried over 11,000 passengers during 1967. One of PWA's most 
 successful operations is its airbus service between Edmonton and Calgary. 
 More than 430,000 passengers have been flown between the two centers 
 since the service was inaugurated in 1963. 
 
 In 1968 Pacific Western carried 427,000 passengers, an increase of 
 17.5 percent over 1967, and flew 225 million passenger miles. The 
 volume of goods carried rose 1 54 percent to 3 1 million pounds, and ton 
 miles flown increased 66 percent to 10.3 million. Reflecting the addi- 
 tional costs involved in the transition from piston to jet aircraft, net 
 earnings dropped 55.7 percent to $284,706 while total revenue climbed 
 20 percent to $18 million. Figures published for the first half of 1969 
 show PWA having a very good year with gross revenues in the first half 
 up 83 percent to almost $15 million. Pacific Western's fleet consists of 
 one Lockheed Hercules, four Convair 640's, one DC-7C, two DC-6B's, 
 two DC-6's, two DC-4's, three Super 46's, two DC-3's, three Grumman 
 Goose, seven Beavers, two Otters, one Beech 18, one Apache, three 
 Cessna 180's, one 707-138B, two 737-200's (one leased), and one 
 737-20OC. One 737-200 is on order for 1970 delivery. 
 
 Quebecair 
 
 Quebecair was started in 1946 as Rimouski Aviation Syndicate, to link 
 the towns on both sides of the St. Lawrence River east of Quebec City. 
 In 1947 the name was changed to Rimouski Airlines, and in 1953, when 
 it merged with Gulf Aviation, it took the name of Quebecair. The line 
 acquired Northern Wings, Northern Wings Helicopters, and Matane Air 
 Services in 1965. The airline's aggressive acquisition policy over the years 
 has given it a large number of service points along the St. Lawrence 
 River. 
 
 New route acquisitions and an updated fleet have not yet brought 
 Quebecair out of the red. In 1968 Quebecair had a $1.4 million deficit 
 on revenues of $6.3 million. A Federal subsidy reduced the final loss to 
 $630,000. This compared with a 1967 loss of $585,000, after subsidy, 
 on revenues of $5.5 million. 
 
 14 
 
During 1968 Quebecair carried 1 89,264 passengers (185,481 in 1967) 
 55.6 million (50.9 in 1967) passenger miles and transported 4.4 million 
 (4.1 in 1967) pounds of goods 818,326 (720,764 in 1967) ton miles. 
 
 Scheduled and nonscheduled services between the principal cities of 
 Quebec and Labrador, including charter and contract jobs, are offered 
 by Quebecair. New routes are planned from Montreal to Gaspe via 
 Quebec City, Edmundston, and Bathurst. The Government recently 
 assigned to Quebecair all of the province of Quebec east of Montreal. 
 Quebecair operates two BAC- Ill's, three F-27's, one Beech 18, and 
 five DC -3 aircraft in addition to the 26 various aircraft belonging to 
 the three recently acquired subsidiaries. This fleet includes a Cessna 185, 
 Bell G-47-4 helicopter, DC-3, Canso PBY flying boat, Curtis C-46, 
 Lockheed 10, DeHavilland Otter and Beaver, and other aircraft. 
 
 The airline employs 400 people and owns the two-story airport termi- 
 nal at Rimouski. 
 
 Transair 
 
 Transair, based in Winnipeg and Churchill, provides scheduled serv- 
 ices in western and northwestern Canada and has applied for a Winnipeg- 
 Toronto route with intermediate stops. The company also does a sub- 
 stantial amount of contract and charter work and operates the vertical 
 resupply airlift to the main sites in the Canadian sector of the DEW Line. 
 During 1967 Transair withdrew from its unprofitable transoceanic charter 
 operations and disposed of its bush operations. The Government termi- 
 nated, as of March 31, 1968, the temporary financial assistance it had 
 been providing to Transair's prairie services since April 1966. However, 
 the company decided to continue this service without Federal aid. 
 Transair wishes to be in position to take advantage of traffic resulting 
 from the heavy mineral exploration and exploitation in the north and 
 will institute a prepaid accommodation program. Transair bought out 
 Midwest Airlines Ltd. in 1969. 
 
 The company flew 138,135 passengers on scheduled mainline services 
 during 1968, a 16.1 percent increase over 1967, and flew 57.9 million 
 passenger miles, a 24.5 percent increase over the previous year. During 
 the same period 8.9 million (8.2 million in 1967) pounds of goods were 
 flown 3.38 million (3.34 million in 1967) ton miles. A net loss of 
 $760,000 ($185,000 in 1967) was recorded for the year on revenues of 
 $6,250,000 ($5,500,000 in 1967). Federal subsidies dropped from 
 $311,000 in 1967 to $80,000 in 1968. 
 
 Transair's fleet consists of one Vickers Viscount, one DC-7C, four 
 DC-4's, six DC-3's, two YS-ll's, and two leased Hawker Siddeley 748 
 twin turboprop aircraft. 
 
 The company just recently received the two jetprop Japanese YS-ll's, 
 valued at U.S. $5.5 million, including spare parts and supporting ground 
 equipment. The new airplanes are in service in northern Manitoba and 
 northwestern Ontario. The leased HS 748 aircraft will be used to meet 
 the demands of the sharply increased air traffic over the company's main 
 line routes. Two Boeing 737-200C aircraft are on order. 
 
 15 
 
Nordair Ltd. 
 
 Nordair Ltd. was established in 1957 by the merger of Mont Laurier 
 Aviation and Boreal Airways, and in spring 1969 the airline entered an 
 equipment pooling agreement with Eastern Provincial Airlines (EPA). 
 However, acquisition of EPA has been postponed. Scheduled services are 
 offered from Montreal to Roberval, Great Whale, and Fort Chimo in 
 Quebec, and to Frobisher, Hall Beach, and Resolute Bay in the North- 
 west Territories. When necessary charter flights are operated with ski- 
 equipped DC-3's. Transatlantic reconnaissance and geodetic survey work 
 is undertaken. 
 
 Nordair has had a consistent profit record. In 1968 net profit after 
 deferred taxes was about $225,000 on revenue of $6.7 million, up about 
 11 percent over 1967. Profit was higher in 1967, about $750,000, 
 because of certain tax adjustments. 
 
 In December 1968 Nordair became the first airline to operate regular 
 scheduled jet service into the Canadian Arctic. Nordair uses its new 
 specially equipped Boeing 737 airplanes certified for use on gravel or 
 unimproved runways. Short-haul routes are now served by a subsidiary, 
 Nordair Arctic, Ltd., using DC-3's, Curtis C-46's, and a DeHavilland 
 DHC-6-300 Twin Otter. The EPA equipment pool gives Nordair a wider 
 base for utilization of its jets and offers EPA early introduction of jet 
 service on its routes. 
 
 Nordair employs 350 people and has a fleet of three Lockheed L-1049 
 H Super Constellations, three DC-3's, three DC-4's, four C-46's, and 
 two Boeing 737-242C's. The airline is selling the DC-4's and L-1049's, 
 and leasing two additional 737's. One Boeing 737 is on order. Eventually 
 the company plans to standardize the fleet to 737's and Twin Otters. 
 
 Wardair Canada Ltd. 
 
 Maxwell Ward founded the Polaris Charter Company, a bush opera- 
 tion, in 1946, to fly charters in support of the rapidly developing mining 
 industry of the Northwest Territories. Wardair was formed in 1952 to 
 continue this work and today has expanded its operations to include 
 surveying, domestic and international charters, and regular services to 
 communities like Yellowknife, Uranium City, and Coppermine. In 1968 
 this supplemental airline carried 32,000 passengers and forecast 60,000 
 for 1969. 
 
 The company's fleet consists of one DC-6B, one Boeing 727, four 
 Bristol 170 MK-31's, two Otters, one Beaver, one DHC-6, two Twin 
 Otters, and two Boeing 707-320C's. 
 
 Great Northern Airways Ltd. 
 
 Great Northern Airways Ltd. is a nonscheduled operator offering 
 various types of charter service from Calgary and six other bases in 
 northern Canada. In 1967 the company received approval to operate 
 charters between Canada and the United States. The airline's fleet is 
 
 16 
 
comprised of four DC-3's, three Aztecs, one Otter, two Fairchild F-27J's, 
 five Beavers, and three Cessna 180's. 
 
 Midwest Aviation Ltd. 
 
 Midwest Aviation Ltd., incorporated in 1957 as a charter operation, 
 now offers charter services throughout Canada and the United States, as 
 well as a scheduled route to northern Manitoba. The company has 
 applied to operate third level services between Winnipeg, Brandon, 
 Yorkton, and Regina. The fleet is comprised of one HS748, one DC-3, 
 one Twin Otter, one PA-31 Navajo, three Aztecs, one Cherokee Arrow, 
 one Super Cub, one Cessna 185, one S-55, ten Bell 47G's, one Jet 
 Ranger, and one Bell 205A. 
 
 Other Airlines 
 
 Among the smaller Canadian airlines are Air Gaspe Inc., Airwest 
 Airlines Ltd., B.C. Airlines Ltd., Cavalier, Eldorado Aviation Ltd., 
 A. Fecteau Transport Aerien Limitee, Gagnon Air Services Ltd., 
 Georgian Bay Airways Ltd., Gordon Airways Ltd., Great Lakes Air 
 Services Ltd., Laurentian Air Services Ltd., Matane Air Services Ltd., 
 North Canada Air ,Ltd. (Norcan Air), Northern Wings Ltd. (Les Ailes 
 du Nord), Northward Aviation Ltd., and Parsons Airwings Ltd. 
 
 General Aviation 
 
 The Canadian Department of Transport (DOT) defines civil aviation 
 as all flying performed by civil aircraft other than route operations of 
 scheduled carriers. General aviation thus includes the nonroute services 
 of scheduled carriers, all other commercial flying, private and business 
 flying, and flying performed by nonmilitary government aircraft. Over 
 70 percent of the 10,591 aircraft on register as of September 30, 1969, 
 were noncommercial. However, the average utilization of general aviation 
 is quite low. In 1968 an estimated 700,000 hours were flown by private 
 flying, a 97,000 hour increase over 1967. 
 
 General aviation in Canada has been limited by the one problem avia- 
 tion normally solves — distance. The advent of the business jet, however, 
 has eased the time and comfort considerations of the long distance 
 commuting businessman. Owned and leased corporate aircraft are in- 
 creasingly supplementing their workhorse piston-powered predecessors. 
 The growth of advanced flying also reflects the trend toward more 
 sophisticated equipment. Even the famous bush operator is requiring 
 more specialized airplanes for his operations. 
 
 Nonscheduled Transport and Specialty Services 
 
 Nonscheduled and specialty services is a highly competitive field. In 
 1968 there were over 315 Canadian carriers licensed to perform all 
 types of nonscheduled services. Specialty flying services are those activ- 
 
 17 
 
ities which are largely for purposes other than transportation, such as 
 aerial work and recreational flying. Aerial crop spraying, forest reseeding, 
 and water bombing of forest fires are fast growing industries in Canada. 
 Another 300 aircraft were used for other agricultural purposes. In the 
 spring of 1966 the Government established a special committee to in- 
 vestigate ways of improving aircraft, equipment, and techniques used in 
 aerial spraying and for general agricultural purposes. In 1967 Canadian 
 carriers flew 545,203 hours in specialty service operations, a 20 percent 
 increase over 1966, and earned $19,499,000, or 24 percent more than 
 the previous year. More than half the hours flown in specialty services 
 are by operators having gross annual flying revenues of less than 
 $100,000. Table 3 gives a complete breakdown of specialty service 
 utilization and revenues. 
 
 The larger Canadian carriers which provide only charter services 
 include: 1) Fecteau Transport Aerien Limitee, which performs charter 
 and contract bush services throughout Quebec; 2) Nordair Ltd., which 
 operates from Montreal to communities in Quebec and the Northwest 
 Territories; 3) B.C. Airlines Ltd., which provides charter and regular 
 service along the coast of British Columbia; 4) Austin Airways Ltd., 
 based on Toronto Island, which provides charter and specialty services 
 including aerial surveys and forest fire patrols in Ontario, Quebec, Mani- 
 toba, and the Northwest Territories. Several of the nonscheduled carriers, 
 including Wardair and Nordair, make international charter flights. 
 
 The nonscheduled carriers operate over 1,800 aircraft. Well over half 
 of these are single or twin-engined planes weighing 5,000 pounds or 
 under. Wardair, which uses a Boeing 727 and two 707-320's, was the 
 first Canadian nonscheduled operator to acquire a jet. Nordair recently 
 introduced the first scheduled jet service north of the Arctic Circle. The 
 airline has acquired two Boeing 737-242-CQC aircraft specially modified 
 for gravel and unimproved runways. 
 
 Helicopter Operators 
 
 There are no scheduled helicopter services in Canada. A study by the 
 Department of Transport concluded that scheduled or regular helicopter 
 service on a self-sustaining basis is not yet feasible in Canada. The report 
 added, however, that the feasibility of introducing such service should be 
 recognized in the future. 
 
 Helicopters are used to provide nonscheduled cargo transport and to 
 perform specialty services, primarily aerial patrol and inspection, aerial 
 photography, and geophysical survey. 
 
 Although there are no scheduled helicopter services, in 1968 there were 
 51 carriers operating 344 owned and/or leased helicopters, as compared 
 to 53 carriers in 1967 having 330 rotor wing aircraft. In 1968 these 
 carriers flew an estimated 160,000 revenue helicopter hours, 125,000 of 
 which was for bulk flying and 35,000 for specialty flying. This compares 
 to 157,832 helicopter revenue hours in 1967, of which 124,120 were for 
 bulk flying and the remainder for specialty flying. Helicopter operating 
 revenues increased from $16,780,000 in 1967 to $18,614,000 in 1968. 
 
 18 
 
Private Flying 
 
 In the past few years private flying has increased more rapidly than 
 commercial aviation and this trend is expected to continue. As of Sep- 
 tember 1969 there were 6,709 private aircraft registered in Canada, 
 5,406 of which had valid certificates of airworthiness. The percentage of 
 private aircraft in the total fleet has risen from 40 percent in 1951 to 
 over 63 percent in 1968. At the end of 1967 there were 21,089 licensed 
 private pilots. In 1969 an estimated 700,000 hours were flown by the 
 private sector; 603,000 were flown in 1967. All indications are that 
 business aviation is at an all time high and that more and more business 
 airplanes are being sold, chartered, or leased. In 1968 Canadian com- 
 panies owned approximately 1,000 aircraft of a type or size normally 
 operated in business/executive configurations, including 20 business jets. 
 This was an increase of 240 over the 1967 fleet. 
 
 Government Support of General Aviation 
 
 While the Federal Government has no national program designed 
 exclusively to support general aviation, general aviation benefits from 
 Government support of aeronautical facilities and services, particularly 
 airports. In addition, the DOT administers a program of assistance for 
 flying training which primarily benefits general aviation. Charges for 
 general aviation are kept low and revenues from general aviation repre- 
 sent only a small part of the services from which general aviation aircraft 
 benefit. All civil airports, other than a very small number of private 
 airports, are available for use by general aviation. However, at the largest 
 scheduled carrier airports, beginning flying training is not permitted, and 
 a special landing fee is charged at the three largest airports for small 
 privately-registered aircraft, which may land elsewhere without charge. 
 
 The Government does not offer subsidies to any nonscheduled carriers. 
 The Government policy on licensing charter operators has changed sev- 
 eral times in the past ten years: in 1958 the Government adopted a 
 liberal policy of granting licenses; in 1962 the increased controls were 
 reinstated; in early 1966 the Government again liberalized its policy 
 on granting licenses. 
 
 Airports 
 
 Canada has 342 licensed land airports, 34 licensed heliports, and 385 
 licensed water airports. In addition there are 540 unlicensed land air- 
 ports, 244 unlicensed water airports, and 57 military airports. The De- 
 partment of Transport is responsible for the construction and operation 
 of the airports served by scheduled airlines, execpt for several which are 
 run by municipalities. Though DOT also operates some smaller airports, 
 they are generally operated by municipal or private authorities. The 
 
 19 
 
Federal Government recently liberalized its policy of granting capital 
 assistance for the construction of smaller airports. The Government pro- 
 portion of aid is no longer limited to 50 percent but will be decided on 
 a case to case basis. The requirement that airports had to have runways 
 large enough to accommodate DC-3's in order to qualify for DOT aid 
 was also lifted. 
 
 Canada continues to expand and improve its airport facilities. A pro- 
 jected $2 billion has been earmarked for new airport construction, equip- 
 ment, and support facilities over the next few years. Master plan studies 
 are underway for major airports in order to insure their development in 
 line with future air commerce needs. Vancouver International Airport's 
 new $30 million terminal facilities are reportedly the most modern in 
 Canada. The DOT says the terminal is expected to meet its needs for at 
 least 8 to 10 years. Some critics question this claim in light of the advent 
 of the jumbo jets and their concomitant demands. The airport facilities at 
 Toronto and Montreal are soon to undergo major expansion. The DOT 
 has launched a $10 million improvement program at Dorval to enable the 
 airport to accommodate large body transports until the new Ste. 
 Scholastique airport opens in 1974. 
 
 Calgary airport has started expansion under the DOT plan announced 
 in mid 1968, which indicated that the facility would undergo interim 
 improvement amounting to $2.4 million. St. Scholastique, north of met- 
 ropolitan Montreal, has been selected as the site of a second airport. 
 This facility will supplement transcontinental and intercontinental serv- 
 ices now available at Montreal. It is expected to cost $400 million and 
 will take three years to build. Decisions on other major airport improve- 
 ments are expected in the near future, including plans for a second 
 Toronto airport. 
 
 The Department of Transport Committee reports that during 1968 
 aircraft movements at 111 airports without towers across Canada were 
 1,462,126, a 38.3 percent increase from 1967 when 105 airports han- 
 dled 1,057,511 movements. Locals (flying training) recorded 1,107,827 
 movements, 39.8 percent more than in 1967, when 792,515 were 
 reported. Itinerant movements amounted to 354,299, a rise of 33.7 
 percent over the 264,996 reported in 1967. 
 
 Preliminary figures for 1968 aircraft activity at the 42 airports with 
 DOT control towers show 4,036,335 movements, compared with 
 3,037,749 in 1967. The itinerant class gained 50,467 movements against 
 a loss of 51,824 for the locals. Simulated approaches retained their 1967 
 level of 114,424 movements. 
 
 Market Potential 
 
 Although Canada ranks fifth in the world in dollar volume of aviation 
 and aerospace production, almost 80 percent of the registered civilian 
 commercial aircraft in Canada are U.S. made (see table 4), and there 
 is no indication that U.S. predominance will decrease in the years ahead. 
 In 1967 the U.S. share of the Canadian aircraft market reached a high 
 of 92 percent. 
 
 20 
 
Air Canada, the major purchaser of U.S. aircraft equipment, probably 
 will need 15 to 20 of the Boeing 747 jumbo jets during the 1970's. The 
 airline plans to spend more than $1 billion over the next decade on new 
 equipment and facilities. The latter will include such extensive aircraft 
 service facilities expansion as hangars, maintenance shops, and other 
 services to deal with the new generation of jumbo jets. U.S. suppliers 
 and contractors would do well to compete on these large projects. 
 
 Canadian Pacific Airlines will need additional aircraft of the Boeing 
 727 and 737 or DC-9 variety by the late 1970's; its airbus acquisitions 
 will probably not come about before 1972, with an initial purchase of 
 two. Nordair has its third Boeing 737 on order and eventually plans to 
 standardize its fleet to 737's and Twin Otters. Transair has two 737- 
 200C's on order, and Pacific Western expects its fourth 737 in 1970. 
 Both CPA and Air Canada have options on a total of nine U.S. Boeing 
 SST's expected in the late seventies. PWA, already an enthusiastic Boeing 
 737 user, has considerable growth potential both in terms of its existing 
 routes and those it could eventually expect to take over from Air Canada 
 and CPA. 
 
 Regional carriers are being encouraged to apply for more of the 
 transborder routes now being served by U.S. local service carriers. If the 
 regionals do explore this channel, they will require aircraft having about 
 a 50 seat capacity, as opposed to their present 100 seat capacity equip- 
 ment. Conversely, the Federal Government maintains an interest in 
 acquiring larger jets for its Department of Transport. 
 
 The 370 other carriers of various specialties will continue to be in the 
 market for smaller aircraft to supplement their current fleets. Before 
 committing itself to an equipment program, Canada lets it be known that 
 joint production, subcontracting, and other sharing arrangements are 
 expected from the manufacturer. The Government in turn offers several 
 attractive inducements, such as development land grants, to encourage 
 foreign firms. 
 
 Canadian airport expansion and improvement plans costing millions 
 of dollars are already underway throughout the country and will continue 
 over the decade. Not all terminal facilities can be furnished by in- 
 country suppliers, however, thereby leaving room for U.S. participation. 
 
 General aviation, especially private flying, is rapidly increasing 
 throughout Canada. Business airplanes are finding a ready market either 
 through direct purchase or charters and leases. 
 
 21 
 
Part 2. Aerospace Industry 
 
 General Industrial Picture 
 
 The Canadian aerospace industry is the fourth largest in the free 
 world, after the United States, the United Kingdom, and France. There 
 are over 100 companies involved in the manufacture of aircraft, aircraft 
 equipment and parts, and related electronic components and equipment. 
 Eighty percent of the industry is located in Ontario and Quebec. It is 
 represented by the Air Industries Association of Canada. The two major 
 producers of aircraft are DeHavilland of Canada and Canadair. There 
 are also several smaller companies, including the Avian Aircraft Com- 
 pany and the Maranda Aircraft Company. The A. V. Roe Company 
 became Hawker Siddeley of Canada in 1962. Its Avro aircraft division 
 was bought out by DeHavilland in the same year. Douglas Aircraft Com- 
 pany of Canada, a subsidiary of McDonnell Douglas, has been engaged 
 in the production of wings for the DC-9 since the end of 1965 and is 
 now preparing facilities for DC- 10 wing structure production. The 
 Boeing Aircraft Company also has a subsidiary in Canada which engages 
 in limited helicopter production and plans to build a US$5.5 million 
 plant to make fiber glass components for its aircraft. Both Hughes Tool 
 Company and Fairchild Hiller Corporation have plans to produce their 
 light observation helicopters (LOH) in Canada if the Canadian Defense 
 Ministry selects one of the designs in its present LOH competition. 
 
 The companies which produce engines are United Aircraft of Canada 
 and Orenda Ltd., which is owned jointly by Hawker Siddeley of Canada 
 (60 percent) and United Aircraft of Connecticut (40 percent). Rolls 
 Royce of Canada handles the overhaul of all Rolls engines in North 
 America, but it does not produce complete engines. 
 
 Canada began development of the Avro Arrow, a supersonic inter- 
 ceptor for the Royal Canadian Air Force, in the 1950's. The project 
 was abruptly terminated in 1958 when the Government decided that it 
 was too costly. The Avro Arrow was replaced by the U.S. designed and 
 produced BOM ARC missile and SAGE control equipment. Over 13,000 
 
 22 
 
people were instantly dismissed and a total of 300,000 were ultimately 
 affected. The gross value of production of the Canadian aerospace indus- 
 try, including components and electronics, fell from $505 million in 
 1958 to $362 million in 1959 and to a low of $353 million in 1960. 
 It seemed that the industry might disintegrate. However, the value of 
 production increased by almost $50 million in 1961 due to Canadian 
 Government orders for CF-104 fighters and CL-41 trainers and increased 
 steadily until 1964 when it reached $588 million dollars. In 1965 the 
 gross value of production dropped to $541 million due to a cutback in 
 Canadian defense procurement. 
 
 Production grew again in 1966, reaching a gross value of $594 million 
 that year, and $660 million the following year. The growth trend has 
 been steady with $750 million in gross value of production reported 
 for 1968 and $430 million for the first half of 1969. 
 
 Until 1967 Canadian imports and exports of aircraft, engines, parts, 
 etc., had been fairly evenly balanced. Now the industry is developing a 
 broader base. This is credited to the greatly increased scope of U.S. 
 jetliner parts production at Douglas of Canada, together with 
 DeHavilland of Canada's Twin Otter sales and United Aircraft of 
 Canada's PT6 turbine exports. In 1968 Canada sold $559 million worth 
 (75 percent) of its aerospace hardware abroad. For the first 6 months of 
 1969, exports represented 58 percent of the industry's $430 million 
 in sales. 
 
 Aerospace employment rose 5 percent in 1967, from 45,900 to 
 48,100. During the first half of 1969 employment leveled off at 50,000. 
 New capital invested in the industry remained at $26.7 million in 1967, 
 but dropped to $9.6 million during the first half of 1968. 
 
 While the aerospace industry is producing and developing a number 
 of small, Canadian-designed civilian aircraft and the PT-6 and the 
 JT-15D engines, the industry has come to rely increasingly on the pro- 
 duction of military aircraft and engines under license and the production 
 of parts and components. Work performed under subcontract to major 
 U.S. aircraft manufacturers, both civil and military, comprises a large 
 proportion of total dollar production. The Government offers many 
 attractive inducements to manufacturers willing to subcontract in Can- 
 ada, including remission of custom duties for tooling, jigs, etc., in con- 
 nection with specific programs. The amount has increased considerably 
 since the airbus manufacturers began awarding subcontracts. United 
 Aircraft of Canada has a $20 million contract to supply auxiliary 
 engines for pneumatic and air-conditioning systems in the Lockheed 
 L-1011. Douglas of Canada's DC- 10 wing structures will represent 15 
 percent of the DC- 10 manufacturing effort. Lockheed Corporation, as 
 part of its L-1011 sales package with Air Canada, will subcontract 
 between $50 and $70 million of work to Canadian firms. Numerous 
 other subcontracts have been awarded to Canadian firms for nose and 
 wheel landing gear, components, etc. 
 
 Under license from Lockheed, Canada produced 240 CF-140's for 
 its own use and 140 F-104's for a joint U.S./Canada Military Assistance 
 Program. Canadair produced the Mark 44 torpedo under a General 
 Electric license and is currently producing a $215 million CF-5 program 
 
 23 
 
under license from Northrop. This program involves a U.S. input of more 
 than 30 percent on a program basis. Canada has also been a good cus- 
 tomer of the United States in terms of direct purchases. These have 
 included the M-109 155mm self-propelled howitzer, CHSS-2 ASW heli- 
 copters (assembled in Canada), about 1,200 M-113 armored personnel 
 carriers, and 24 C-130 transport aircraft. 
 
 In addition, many U.S. companies have subsidiaries in Canada. Ex- 
 amples are Douglas of Canada, a subsidiary of McDonnell Douglap; 
 Canadair, owned by General Dynamics; United Aircraft of Canada, Ltd., 
 which handles all of United Aircraft's piston engine work worldwide; 
 RCA, which provides plasma physics research for the U.S. Department 
 of Defense and NASA; and Litton (Canada) Ltd., which provides 
 inertial platforms for U.S. aircraft guidance systems. 
 
 Individual companies have tended to diversify and are trying to reduce 
 their reliance on Canadian Government orders and push harder into 
 foreign markets. Canadair, for example, was almost wholly dependent 
 on the Canadian Government until 1962. In 1966 more than 50 percent 
 of its orders came from other sources and this percentage is continuing 
 to grow. Canadair has diversified into the manufacture of Dynatiac, a 
 tracked articulated utility army vehicle, architectural curtain wall com- 
 ponents, buses, and the CL-89 reconnaissance system. Other companies 
 have followed similar patterns. 
 
 Canada recently considered participating in the development and pro- 
 duction of a multipurpose aircraft in conjunction with a European con- 
 sortium. This idea was eventually dropped. 
 
 When the Avro Arrow project was canceled, the Canadian Govern- 
 ment entered into a Production Sharing Agreement with the United 
 States. The agreement is designed to provide Canadian manufacturers 
 with competitive access to < the U.S. defense market so that Canada can 
 balance its defense expenditures in the United States. Cross-border pro- 
 curement has averaged US$388 million per year each way during the 
 period 1959 through March 1969. To date, the United States has spent 
 over US$437 million more in Canada than Canada has in the United 
 States. Projections of cross-border spending show an estimated increase 
 in annual spending of 50 to 75 percent over past averages. 
 
 Government Support 
 
 The Department of Defense Production, established in 1951 to cen- 
 tralize procurement for defense forces, became part of the Department 
 of Supply and Services in 1969. One of its principal responsibilities is to 
 encourage Canadian development and production of defense equipment. 
 The Department of Industry, established in 1963, had an aircraft branch 
 as one of its ten operational branches. It is also now part of the new 
 department. Its functions are to help manufacturing industries adapt to 
 changing conditions, assist industries that require special measures to 
 develop an unrealized potential, and to promote the development and 
 use of modern industrial technology. 
 
 24 
 
Although the Canadian Government does not directly subsidize air- 
 craft production, the above new departments, like their predecessors, do 
 sponsor a number of programs which provide grants and loans for 
 research and development. Most of this aid has been given to defense- 
 related projects. However, in 1965 the Government introduced a pro- 
 gram to assist civilian projects exclusively (Program for Advancement 
 of Industrial Technology) and recently stated that in the future the 
 Government will give full consideration to support of defense develop- 
 ment projects on the basis of initial civil markets. Under these programs 
 the Government contributed to the aerospace industry a total of $20.6 
 million in Fiscal Year 1963-64 (April 1-March 31), $23.1 million in 
 1964-65, and an estimated $23.5 million in 1965-66. During calendar 
 year 1967 the aerospace industry received $18.8 million for research 
 and development from the Government. An account of industry repay- 
 ment is not available. Airplanes which have been developed with aid of 
 Government funds include Canadair's CL-84 tilt-wing VTOL, 
 DeHavilland's DHC-5 Buffalo, Found's FBA-2C utility freighter, and 
 Avian's 2/180 autogyro. DeHavilland's DHC-4 Buffalo was developed 
 with the aid of the Canadian Government and the U.S. Army. 
 
 The Government also provides indirect aid to the aerospace industry 
 through a tax incentive which encourages research and through its pro- 
 gram of encouraging exports. Duty-free entry of aircraft and engine com- 
 ponents of a type and size not made in Canada also provides indirect aid. 
 
 Defense Industry Productivity Program 
 
 The Defense Industry Productivity Program combines the former 
 Industry Modernization for Defense Exports Program and the Defense 
 Development Sharing Program. 
 
 The program is designed to enhance the technological competence of 
 the Canadian defense industry in its export activities by providing finan- 
 cial assistance to industrial firms for selected projects. Assistance may 
 cover the development of products for both military and para-military 
 export purposes; the acquisition of modern machine tools and other 
 advanced manufacturing equipment to meet exacting military standards; 
 and assistance with pre-production expenses to establish manufacturing 
 sources in Canada for military or para-military export markets. 
 
 Projects initiated under this program have played a major role in 
 helping industry to develop its skills on a specialized basis in fields of 
 technology which have defense and often civil applications, and which 
 Canada is favorably situated to exploit. Costs of these projects are shared 
 by the Department of Supply and Services and the Canadian firm con- 
 cerned and, in some instances, by the governments of other NATO coun- 
 tries. Among the projects that have received assistance are communica- 
 tions and aircraft navigation systems, gas turbine engines for aircraft, 
 flight safety and simulation equipment, and information display facilities. 
 Exports of the products of these developments continue to increase, 
 including significant orders for such diverse applications as commercial 
 
 25 
 
airlines, public communication networks, and television distribution 
 systems. 
 
 The Department is currently spending about $32 million annually 
 under this program to support 142 projects. 
 
 Since the start of this program (i.e., the previous individual programs 
 making up the new combined program), 165 projects involving an 
 expenditure of $148 million have been supported. Of these some 120 
 have been completed and Government contributions have amounted to 
 $99 million. The value of sales to date resulting from these projects is 
 $995 million. 
 
 General Adjustment Assistance Board 
 
 This board was instituted to help Canadian companies take advantage 
 of Kennedy Round tariff reductions in overseas markets. It will insure 
 up to 90 percent of a readjustment loan that a manufacturer gets from 
 a private financial institution, and is empowered to make direct loans 
 in unusual or exceptional cases where firms are unable to obtain an 
 insured loan. The board will also help locate and pay up to 50 percent 
 of the cost of consulting services for smaller companies unable to develop 
 their own adjustment proposals. 
 
 Program for Advancement of Industrial 
 Technology (PAIT) 
 
 The aim of this program, which became effective in 1965, is to 
 advance the technological capability of Canadian manufacturing industry 
 by supporting selected civil (nondefense) development projects which 
 involve a significant technical advance and which offer good commercial 
 prospects. Costs of the projects are shared equally by the Government 
 and the firm. If the project is successful and results in commercial pro- 
 duction, the firm is required to repay the Government's contribution with 
 interest. If the project is not successful, the firm does not have to repay 
 the contribution, but the Government has the right to take title to the 
 results of the project. Since its inception, 175 projects have been sup- 
 ported under this program, to which PAIT will eventually contribute 
 $26.1 million. The Government has budgeted $16 million under PAIT 
 for FY 1970. 
 
 Defense Industrial Research Program 
 
 The primary objective of this program, approved in 1961, is enhance- 
 ment of Canadian industry's ability to participate in the development 
 and supply of defense equipment. Companies are expected to pay half 
 
 26 
 
the cost of research projects, but particular cases may require different 
 cost sharing ratios. Repayment of the Government contribution is not 
 required. It is recognized that the research may not lead to the produc- 
 tion of a specific product. Most of the funds have been applied to 
 research in electronics, power engineering, aeronautics, and materials. 
 
 Incentive for Research and Development 
 
 For income tax calculations, deduction of all research and develop- 
 ment expenditures incurred during the year has been permitted since 
 1961. In 1962 manufacturers were given an additional deductible allow- 
 ance of 50 percent of the amount by which a corporation's expenditures 
 on scientific research exceeded the 1961 base year expenditures on 
 research and development. This additional allowance was canceled in 
 1966. 
 
 Export Promotion 
 
 In line with an export drive launched in 1963, the Department of 
 Trade and Commerce sponsors Canadian trade missions, trade fairs, and 
 product demonstrations abroad, as well as visits to Canada of potential 
 purchasers. The Department also assists exporters to bring foreign tech- 
 nical personnel to Canada for training or for evaluation of Canadian 
 products and capabilities, and, when appropriate, to send industry per- 
 sonnel abroad to give on-site instruction. In addition, the Export Devel- 
 opment Corporation gives assistance to exporters by insuring extended- 
 term financing. Some provincial governments also occasionally sponsor 
 trade missions. 
 
 Both Government and industry have been intensively marketing the 
 Canadian-designed airport export program and see it as a prosperous 
 market for Canadian businessmen. Since the program's inception two 
 years ago, Canadian exports of airport equipment have gone from almost 
 zero to about $40 million. 
 
 Avian 
 
 The Avian Aircraft Company was founded in 1959 to develop the 
 Avian 2/180 autogyro. The 2/180, powered by a 200 hp. Lycoming 
 fuel injection engine, is designed to fill the gap between fixed wing STOL 
 aircraft and helicopters. The gyroplane reportedly can do most of the 
 things a helicopter can do, yet is not more difficult to fly than a conven- 
 tional fixed-wing aircraft. It can fly as slowly as 30 m.p.h., cruise at 100 
 m.p.h., and reach 120 m.p.h. It seats two and can be adapted for three. 
 Normal cruising range is 400 miles. 
 
 The company has built seven prototypes in all. The certification 
 
 27 
 
prototype flew for the first time in November 1965, received a pro- 
 visional Certificate of Airworthiness in April 1968, and full certification 
 early in 1969. Avian is reportedly ready for production and already has 
 orders for over 100 aircraft. The company reports that special-purpose 
 versions will be developed for agricultural and military duties. 
 
 Found 
 
 Found Brothers Aviation Ltd., the producer of the Centennial 100 
 bush aircraft, was closed at the end of 1968 because of financial difficul- 
 ties. At present the company is reportedly looking for a new source of 
 financial support in order to resume production. 
 
 From 1964 to 1967 Found produced 34 FBA-2C five-seat cabin 
 monoplanes powered by a Lycoming 250 hp. engine. 
 
 The Centennial 100 had received certification shortly before the com- 
 pany folded. It was similar to the FBA-2C but had a more powerful 
 engine and was slightly larger. The prototype flew on April 7, 1967, 
 for the first time. Provisional certification was granted in 1967 and full 
 Department of Transportation certification in mid 1968. Ten aircraft 
 were to be built initially and production was expected to reach four per 
 month by June 1969. The company had planned to increase the engine 
 power from 280 to 400 hp. The standard Canadian price, at 280 hp., 
 was to be about $29,500, with skis, floats, wheel skis, and amphibious 
 floats optional, and $35,000 with a 400 hp. engine. 
 
 Maranda 
 
 The Maranda Aircraft Company Ltd. is engaged in the development 
 and manufacture of ultra-light aircraft. These airplanes are sold in both 
 complete and kit form. 
 
 The company currently produces the Super Loiser BMI-A two seat 
 cabin monoplane, the Hawk BM-4 two seat cabin monoplane, and the 
 Lark BM-6 single seat sporting biplane. These are in addition to the 
 original Maranda monoplanes: the Loiser RA14BM1, a two seat light 
 cabin monoplane, and the BM-3 single seat agricultural monoplane. 
 
 Maranda has under development the Falcon BM-5 two seat light cabin 
 monoplane, a new gyroplane, hydraulic disk brakes, and hydrofoils for 
 small marine craft. 
 
 Orenda Ltd. 
 
 Orenda Engines Ltd. became a division of Hawker Siddeley of Canada 
 in 1961. In September 1966 Orenda again became a separate company, 
 known as Orenda Ltd. Hawker Siddeley owns 60 percent of the new 
 company's stock, and the United Aircraft Corporation of Hartford, 
 Connecticut, owns 40 percent. 
 
 28 
 
Orenda produced the GE J-85-CAN-40 engine for the CL-41 and is 
 now producing the J85-15 for the twin-engined CF-5. Orenda is the only 
 producer of the "dash fifteen" version of the J85 and is producing the 
 engines for the 115 to 125 CF-5's ordered by the Canadian Government 
 and the 105 CF-5's ordered by the Dutch Government. Delivery began 
 in 1967. Orenda also designs and manufactures industrial gas turbines, 
 produces spares, and does repair work on J79-7, J-85-CAN-40, and 
 Orenda turbojet engines, production of which ended in 1965. 
 
 Canadair 
 
 Canadair, a subsidiary of General Dynamics, has been developing and 
 manufacturing commercial and military aircraft since 1944. Until re- 
 cently Canadair was almost wholly dependent on Canadian Government 
 orders. In 1962, however, the company decided to rely on defense con- 
 tracts and began to diversify into the manufacture of a variety of non- 
 aerospace products. Today less than 50 percent of its orders come from 
 the Canadian Government and this percentage is expected to decline 
 further. Total sales for 1965 amounted to $70 million. Current annual 
 sales are running close to $175 million. Employment, which had been 
 declining for many years, recently began to increase. It rose from 6,000 
 in 1966 to 9,000 in 1968. 
 
 Canadair is currently producing the CL-215 utility amphibian, and 
 the CL-84 tilt wing VTOL aircraft under contract for the Canadian Air 
 Force. The twin-engined CL-215, which can carry 12,000 pounds of 
 water, is the only aircraft designed specifically for fire fighting. The 
 plane has a variety of other uses and can be converted easily from its 
 water bombing role to that of a 30 passenger or 7,800 pound freight 
 aircraft for bush and other operations. The CL-215 has accumulated 
 over 200 hours of flight time in a test program, and it received Depart- 
 ment of Transportation certification on November 15, 1968. Thirty 
 have been ordered to date and first deliveries began in early 1969. The 
 company sees a potential market of 500 over the next 10 years. The 
 CL-84, which is powered by two Lycoming T53 turboshaft engines, can 
 fly at 300 m.p.h. like a conventional airplane and hover like a helicopter. 
 Although the CL-84 was originally designed for military use, recent 
 studies indicate that this type of aircraft should become economically 
 feasible for commercial city-center to city-center airbus operations in 
 the 1970's. Field evaluation of the VTOL aircraft began in April 1969. 
 During 1966 Canadair completed its production run of 190 CL-41 Tutor 
 jet trainers and is now producing a new tactical version: the CL-41 -G 
 with General Electric J-85-J4 engines. Twenty of these aircraft have been 
 delivered to the Malaysian Air Force. 
 
 When an improved version of the Northrop F-5 was chosen as Can- 
 ada's new tactical aircraft in 1965, Canadair got a defense contract to 
 build 115 to 125 of them, to be designated CF-5. Canadair is now pro- 
 ducing these airplanes, along with 105 in a modified version for the 
 Royal Netherlands Air Force. Other countries have also expressed an 
 interest in the CF-5, which has a more powerful engine and a shorter 
 
 29 
 
takeoff run than Northrop's F-5. Orenda of Canada is building the 
 J-85-GE15 engine for the CF-5. Canadair is also extensively engaged in 
 subcontract work for Lockheed on the C-5A transport and for General 
 Dynamics on the F-lll variable sweep aircraft. In October 1969 Can- 
 adair announced its decision to cooperate with the German firm 
 Vereinigte Flugtechnische Werke GmbH (VFW) for the development of 
 propeller-driven tilt-wing V/STOL aircraft for civilian and military uses. 
 Canadair is also active in the repair and overhaul of aircraft. 
 
 DeHavilland 
 
 The DeHavilland Aircraft Company of Canada is a subsidiary of the 
 British DeHavilland Aircraft Company and a member of the Hawker 
 Siddeley Group. Established in 1928, DeHavilland bought out the Avro 
 Aircraft Division and the Canadian Applied Research Division of 
 Hawker Siddeley in 1962. The bulk of DeHavilland's activity is devoted 
 to the development and manufacture of a series of STOL utility and 
 light transport aircraft. DeHavilland also designs, manufactures, and 
 repairs a diversified range of products. In 1963 it received a Govern- 
 ment contract to build and design a 2 00- ton hydrofoil ship for the Royal 
 Canadian Navy. DeHavilland formerly produced all wing and tail assem- 
 blies for the DC-9; in December 1965 this work was taken over by 
 Douglas of Canada. 
 
 Since 1947 DeHavilland has produced more than 3,000 aircraft, 80 
 percent of which, representing about $500 million in sales, have been 
 exported. The company delivered a total of 119 aircraft in 1967, includ- 
 ing 66 Twin Otters. Sales for that year amounted to $89 million, a 47% 
 increase over the previous year's sales. Sales for the first 6 months of 
 1968 were $48.1 million, as compared to sales of $35.5 million for the 
 same period in 1967. Over 300 Twin Otter orders have been received 
 for customers throughout the world. After losing 4,700 employees to 
 Douglas, DeHavilland built up its staff from 4,382 employees at the 
 beginning of 1966 to a present level of over 5,000. 
 
 DeHavilland is currently producing the Turbo-Beaver, the Buffalo, 
 and the Twin Otter. Since receipt of additional orders for the Caribou 
 STOL military transport that production line has been reopened at the 
 rate of one a month. The DHC-2MK. Ill Turbo-Beaver is powered by 
 a single PT6A engine and carries up to 10 passengers or 1,800 pounds 
 of cargo. Production began in 1965 and the current rate is four aircraft 
 a month. Since there are over 1,000 standard Beavers currently in serv- 
 ice, DeHavilland is considering the possibility of marketing a conversion 
 kit to change a standard Beaver into a Turbo-Beaver. The DHC-4 
 Caribou, powered by two 1 ,450 hp. Pratt & Whitney engines, is available 
 in military and civilian configurations. The civilian version carries 30 
 passengers, and the military 32 passengers, 26 fully equipped para- 
 troopers, or 3 tons of cargo. Over 245 have been sold so far, including 
 159 to the U.S. Army. 
 
 The DHC-5 Buffalo is a turbine version of the Caribou and is powered 
 by two GE T-64 turboprops. The military version accommodates 41 
 
 30 
 
troops, 35 paratroopers, or 25 stretchers and 6 passengers. DeHavilland 
 is currently producing two Buffalo a month with over 21 delivered out 
 of 31 sold. The Canadian Defense Force bought 15 and the Brazilian 
 Air Force 12. 
 
 The DHC-6 Twin Otter, which is probably DeHavilland' s most prom- 
 ising sales prospect, was designed for feeder line service, air charter in 
 remote areas, and short haul military transport. It is powered by two 
 PT6A-20 turbines and can accommodate up to 21 passengers or 4,000 
 pounds of freight. Maximum takeoff weight of the early model and the 
 series 200 is 11,597 pounds; the series 300 will carry 12,500 pounds. 
 Production began in 1966 and increased from eight to ten a month 
 in early 1969. Some 280 have been produced, a hundred of which have 
 been delivered to North American commuter lines. The series 200 ver- 
 sion introduced in 1968 featured a 70 percent increase in baggage space. 
 Now in production is the series 300 version, with the more powerful 
 PT 6A-27 turboprop engines and increased operating weights and 
 performance. 
 
 In 1968 DeHavilland and Grumman Aircraft Engineering Corporation 
 formed a joint program to market and produce a military version of the 
 Twin Otter for potential U.S. military applications. Grumman is to be 
 responsible for final assembly and delivery, and if enough order are 
 generated the aircraft will be built in the United States. 
 
 In an effort to expand sales to the United States, DeHavilland and 
 North American Rockwell Corporation surveyed the market potential 
 of the Buffalo in the United States, with special emphasis on filling the 
 new U.S. Government military requirement for the Light Intra Theatre 
 Transport (LITT). This could lead to joint production, under license, 
 of the Buffalo in the United States, with North American Rockwell re- 
 sponsible for marketing the aircraft to the U.S. military. 
 
 DeHavilland believes a version of its DHC-5 Buffalo turboprop STOL 
 aircraft can be operated safely as an airliner and is seeking modification 
 of the U.S. Federal Air Regulations to permit its use. The civil version 
 would have a gross weight 3,000 pounds lighter than the military's 
 41,000 pound aircraft. The company expects the U.S. commuter airlines 
 and third-level scheduled operator's demand for the series 200 Twin 
 Otter and the follow-on 300 series to continue for at least 3 or 4 years. 
 Beyond that, they anticipate continuing demand for the Twin Otter as a 
 light STOL civil and military utility transport in many other countries. 
 
 For the future, DeHavilland has been working on a four engine STOL 
 aimed at solving the problems of saturated air space and congested 
 terminals. This latest endeavor is known as the DHC-7. Market research 
 has been concentrated on U.S. trunkline and third-level carriers. 
 DeHavilland hopes to receive enough orders to begin production, which 
 would cost about $60-70 million. 
 
 The DHC-7 is not expected to cost any more to run than the con- 
 ventional turboprop aircraft, and the STOL features should make it 
 profitable on short flights that are not worthwhile with other aircraft. 
 It will be powered by United Aircraft Ltd. engines and is projected to 
 sell for about $1.7 million. If production begins in 1970, first flight 
 would occur in late 1971 and deliveries would start in 1973. However, 
 
 31 
 
as of February 1970 the airplane was still in development with no firm 
 production plans. 
 
 Douglas of Canada 
 
 Douglas Aircraft Company of Canada was formed in December 1965, 
 at which time it took over from DeHavilland the wing and empennage 
 assembly work for all DC-9's. In a $10 million deal, Douglas received 
 a 5-year lease on DeHavilland's Malton plant and in August 1968 
 exercised its option to purchase the land and buildings. The property 
 will be expanded by construction of a new manufacturing building for 
 basic DC- 10 wing structure production. 
 
 After Douglas took over, production rates on wings and empennage 
 were raised from one per week to four. Employment was raised from 
 2,400 to 4,000 and is expected to reach 8,000 by 1972. The fabrication 
 of the DC-9 wings, tail sections, and other jetliner components amounts 
 to US$225,000 to US$275,000 of Canadian added value per plane set. 
 McDonnell Douglas hopes to sell in excess of 1,000 DC-9's, thus pro- 
 viding its Canadian subsidiary with over $225 million worth of export 
 business. Furthermore, the DC- 10 wing structures to be manufactured 
 by the firm will approximate 15 percent of the total DC- 10 manufactur- 
 ing effort. The added value to the DC- 10 components over the next 10 
 years has been estimated at $700 million to $1 billion. 
 
 Douglas of Canada is currently selling its U.S. parent company about 
 $100 million worth of products a year, and this is expected to increase 
 to $150 million by 1972. 
 
 The company's new $20 million expansion and facilities investment 
 has put it in a position to compete with other aircraft firms on non- 
 McDonnell Douglas work. The company now accounts for 40 percent of 
 the Canadian aviation industry's total exports. 
 
 United Aircraft of Canada Ltd. 
 
 United Aircraft of Canada Ltd. (UACL) was formed in 1928 as 
 Canadian Pratt & Whitney Aircraft. A subsidiary of United Aircraft of 
 Hartford, Connecticut, the company adopted its present name in 1963. 
 Initially UACL was primarily engaged in the manufacture and overhaul 
 of Pratt & Whitney reciprocating engines and spares. Today the firm 
 manufactures, overhauls, and markets many of the parent company's 
 products. UACL is the sole producer of Pratt & Whitney piston engines 
 and parts, servicing and rebuilding these engines for aircraft in 72 coun- 
 tries. This accounts for 40 percent of the company's business. 
 
 UACL designed and developed the PT6 gas turbine. This engine re- 
 ceived civil certification in 1963 and by mid 1968 had gained over 80 
 percent of the power plant sales for light turboprop aircraft in the west- 
 ern world. This amounted to over 2,500 deliveries. By July 1968 over 
 4,000 engines had been produced. Production has now reached a rate of 
 
 32 
 
100 engines a month, and almost 60 percent of the engines' contents are 
 Canadian. PT6 sales and services account for 25 percent of the com- 
 pany's sales volume. 
 
 UACL recently developed the PT6-T3 Twin-Pac as a powerplant for 
 the Bell Model 212, a twin-engined version of the UH-1 Huey series 
 helicopter. Bell Helicopter Corporation has placed an order for 100 
 units. The advanced light turboprop PT6A-30 has been proposed to 
 power the U.S. Army's new advanced surveillance aircraft (ASA). 
 
 Lockheed has placed a $20 million contract for an advanced version 
 of the PT6, the ST6L, as an auxiliary power unit for the pneumatic 
 and air conditioning systems of its Lockheed L-1011 300-passenger 
 airbus. 
 
 UACL has delivered the first prototypes of its new Pratt & Whitney 
 JT15D turbofan engine, designed to power small, executive, and military 
 transports. The company expects civil certification and production by 
 early 1971. Cessna Aircraft Company will power its new model 500 
 executive jet aircraft with the JT15D. The company has placed a $10 
 million order with UACL for the engine. 
 
 In addition to its engine activities, UACL does some helicopter pro- 
 duction and assembly work, including work on the Sikorsky Sea King 
 helicopters for the Royal Canadian Navy. 
 
 UACL has over 5,000 employees. Sales reached $120 million in 1967 
 and the company estimated a 25 percent increase in volume for 1968. 
 Historically, more than 70 percent of United's business has been in 
 export, with 50 to 55 percent of exports going to the United States. 
 
 33 
 
Part 3. Import Duties and Taxes 
 
 Aircraft 
 
 The tariff on aircraft of a type and size made in Canada is IVi 
 percent ad valorem. Those of a type or size not made in Canada are 
 admitted duty free under a regulation which has been extended from 
 year to year and is currently in effect until July 1, 1971. In practice, 
 however, all aircraft are currently permitted duty free entry, since 
 Canadian Customs Memorandum D5 1-15-2, dated August 25, 1969, 
 declared that "all aircraft are presently ruled of types or sizes not made 
 in Canada." This situation can change from time to time as Canadian 
 aircraft production capabilities change. Canadian customs gives a 30-day 
 advance notice whenever a product is transferred from 'a type or size 
 not made in Canada' to a 'type or size made in Canada' category with a 
 resultant increase in duty. 
 
 Aircraft imported temporarily — for sales demonstration purposes to 
 prospective customers, for crop spraying or firefighting, for work crews 
 in isolated areas, or for any other purpose where other forms of trans- 
 portation are precluded — are subject to duty and sales tax on a prorated 
 basis of l/20th of the value of the aircraft per month with a minimum 
 levy of $25. In the present circumstances, the only assessment on the 
 prorated value of the aircraft would be the 12 percent sales tax. 
 
 Under a long-standing customs provision, used or second-hand aircraft 
 are prohibited entry into Canada except in special circumstances, includ- 
 ing importations for Canadian Government use or importations by for- 
 eign governments having defense establishments in Canada. Import per- 
 mits may also be granted in other circumstances, as for airplanes owned 
 by new Canadian settlers, under special regulations issued by the Gov- 
 ernor in Council. 
 
 34 
 
Aircraft Engines and Parts 
 
 Aircraft engines are dutiable at IV2 percent unless of types or sizes 
 not made in Canada, in which case duty free entry is permitted to July 1, 
 1971. Engine parts of types and sizes made in Canada are dutiable at 
 5 percent, while those of types and sizes not made in Canada are per- 
 mitted free entry with no termination date. 
 
 Parts of aircraft of types and sizes made in Canada are dutiable at IV2 
 percent. Parts of types and sizes not made in Canada enter duty free on a 
 permanent basis. 
 
 In 1965 Canada relaxed a restrictive provision which placed the TBO 
 (time between overhaul) for U.S. repaired engines at the "basic time" 
 level, thus discouraging potential Canadian customers by making engine 
 operation costs unrealistically prohibitive. While the overhauls still have 
 to be done to the stricter Canadian regulations, U.S. overhauls are 
 accepted if they have been certified by a certified airworthiness represen- 
 tative as meeting Canadian standards. 
 
 Sales Tax 
 
 All aircraft, engines, and parts are subject to a federal sales tax of 
 12 percent, collected at the time of importation, on the duty-paid value. 
 An importer may, under suitable circumstances, obtain a license which 
 permits deferment of the payment of the sales tax until such time as the 
 goods are sold. Provincial sales taxes range from 5 to 8 percent. Both 
 the Federal and provincial sales taxes are general levies imposed on a 
 wide range of goods whether imported or made in Canada. 
 
 Prior to 1966 the federal sales tax was also applied in the case of 
 aircraft engines repaired in the United States and returned to Canada. 
 The tax was on the full value of the engine unless the repair could not 
 be done in Canada within a reasonable distance from point of shipment. 
 The current practice is to levy the tax only on the value of the repair 
 work done in the United States. 
 
 Ground Equipment for Servicing Aircraft 
 
 Effective September 17, 1969, the government of Canada remitted 
 customs duties on machinery and equipment imported to service aircraft 
 registered in a foreign country at international airports in Canada. The 
 amount of sales tax due to difference between duty-paid value and value 
 for duty has also been remitted. The Air Industries Association of 
 Canada recently announced it will seek duty free status for aircraft and 
 avionics assemblies shipped from the United States to Canada for 
 assembly and return, in line with the same provisions that now apply 
 to automobile parts. 
 
 35 
 
Appendix 
 
 Definition of Group Numbers 
 
 Group I = Scheduled air carriers 
 
 Group II = Regular specific point air carriers 
 
 Group III = Irregular specific point air carriers 
 
 (with annual revenues exceeding $100,000) 
 Group IV = Charter air carriers 
 
 (with annual revenues exceeding $100,000) 
 Group V = Carriers having gross annual flying revenues of less than 
 
 $100,000 
 
 36 
 

 
 CD 
 
 ,_ 
 
 co 
 
 cocNcocor».como co 
 
 CO 
 
 § 
 
 co 
 
 00 
 
 
 
 "ro 
 
 CD 
 
 CD 
 
 <tf 
 
 r» 
 
 o cn r» in m ir 
 
 O 
 
 o 
 
 00 
 
 o 
 
 
 
 
 CN 
 
 LO 
 
 r^ 
 
 r» id 
 
 o *- 
 
 
 CO 
 
 cn 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 I- 
 
 O 
 
 o 
 
 CO 
 
 CD 
 
 CD t 
 
 
 CO* 
 
 »— 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 T3 
 
 ,_ 
 
 CN 
 
 CO 
 
 CN 
 
 ■ co ^r 
 
 r* 
 
 CM 
 
 ,_ 
 
 CM 
 
 
 
 
 CD CD 
 
 CO 
 
 CO 
 
 CN 
 
 CO 
 
 
 
 ■ CM 
 
 
 CM 
 
 
 
 
 
 
 
 (0 O 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 °- $ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 L. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 . 
 
 o 
 
 CO 
 
 in 
 
 OC 
 
 • f ^t CM CN 
 
 
 CO 
 
 
 
 
 
 
 
 £ £ 
 
 
 CN 
 
 f^ 
 
 O 
 
 • ^ r* 
 
 
 CM 
 
 
 
 
 
 
 
 *; en 
 
 «* 
 
 <vT 
 
 CN 
 
 CO 
 
 
 CO 
 
 
 ^i- 
 
 
 
 
 
 
 
 3'- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1? 
 
 CO 
 
 r _ 
 
 <* 
 
 c 
 
 T— 
 
 " SL 
 
 ■ * CO o 
 
 in 
 
 p. 
 
 -vT 
 
 ,_ 
 
 
 
 CD 
 
 CD 
 
 r^ 
 
 a 
 
 
 
 • 00 
 
 
 in 
 
 
 CM 
 
 
 
 
 
 U Qj 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 cd a 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 E'c 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 E 8? 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 hm 
 
 CD 
 
 8* 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 +■» 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 «/> 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 O) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 CD 
 
 cc 
 
 't "co 
 
 CD *S 
 
 9-S 
 
 CO 
 
 00 
 
 CN 
 
 ir 
 
 CN 
 
 
 ; o r* t- 
 
 i^ 
 
 r^ 
 
 CM 
 
 CM 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 £ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 CO 
 
 X 2 
 
 1X1 c 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 L» 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 o 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 v. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 < 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 = CD 
 
 CD 
 
 CO 
 
 o 
 
 o 
 
 2 
 
 CD 
 
 • CO t- cc 
 
 t- 
 
 r— 
 
 CO 
 
 in 
 
 
 
 > SR 
 
 CD 
 
 CO 
 
 o 
 
 o 
 
 CD 
 
 CO 
 
 • CN 
 
 r^ 
 
 
 <* 
 
 CO 
 
 
 
 
 
 o 2 
 
 CN 
 
 CN 
 
 T— 
 
 
 
 
 
 
 
 
 
 
 
 
 £ o 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 .2 co 
 "2 m 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3 I 
 
 CD 
 
 in 
 
 CD 
 
 CO 
 
 cc 
 
 r* oo r 
 
 in cd * 
 
 CN 
 
 CO 
 
 in 
 
 CO 
 
 o 
 
 00 
 
 
 to 
 
 CO 
 
 o 
 
 o 
 
 cc 
 
 in r* 
 
 CC 
 
 cs 
 
 T- 
 
 o 
 
 CD 
 
 CO 
 
 CO 
 
 
 
 > 
 
 in 
 
 CO* 
 
 to 
 
 <s|- 
 
 m* 
 
 cc 
 
 ' 
 
 cd in 
 in 
 
 CO* 
 
 <3- 
 
 
 
 
 
 0) Q. 
 
 a. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 r- CO 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 i_ 
 o 
 
 ** CO 
 
 > < 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 a 
 
 7° 
 
 § 
 
 CO 
 
 o 
 
 co 
 
 c 
 
 § * 
 
 • r^ in cc 
 
 • CO <fr CN 
 
 
 CO 
 
 in 
 
 3 
 
 o 
 
 CO 
 
 § 
 
 CO 
 
 C 
 CO 
 
 L. »— 
 
 re 
 
 E 
 
 o 
 
 CD 
 
 E 
 
 o 
 co* 
 
 co* 
 
 CN 
 
 r> 
 
 CN 
 
 
 ■ * 
 
 • CN 
 
 if 
 
 * 
 
 t- 
 
 CN 
 
 CO 
 
 
 
 
 *o 
 
 E 
 
 E 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 +-" 
 
 3 
 
 o 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 c 
 
 CO 
 
 1. 
 
 o 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 CD 
 
 E 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 l. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 & 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 V 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 CD 
 
 3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 •H< 
 
 -C 
 
 
 a 
 
 .« 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 £ 
 
 cn 
 
 
 c 
 
 1- 
 
 
 
 
 | 
 
 
 
 
 
 
 
 
 
 -C 
 
 cn 
 'a> 
 
 cn 
 
 I 
 
 'cd 
 
 CO 
 
 
 CO 
 CO 
 
 c 
 
 
 
 CD 
 CO 
 
 CD 
 CO 
 
 CD 
 
 a 
 
 
 
 
 
 
 
 
 +-> 
 
 CO 
 CO 
 
 CO 
 
 o 
 
 o 
 
 O) 
 
 CO 
 
 ^: 
 
 <3 
 
 
 
 o> 
 
 CD 
 
 *-> 
 
 
 
 
 
 
 
 
 cn 
 
 O 
 
 CT 
 
 cn 
 
 'CO 
 
 CO 
 O 
 
 
 
 o* 
 
 CO 
 
 o* 
 co 
 
 CT> 
 
 
 
 
 
 
 
 
 'cd 
 
 JB 
 
 CO 
 
 o 
 
 CO 
 
 '+J 
 
 CO 
 
 
 
 CD 
 
 
 tm 
 
 
 
 
 
 
 
 
 «/> 
 
 — 
 
 o 
 
 o 
 
 o 
 
 CO 
 
 
 
 c 
 
 ■M 
 
 o 
 
 
 
 
 
 
 
 
 o 
 
 o 
 
 O 
 
 o 
 
 
 
 
 3 
 
 a 
 
 
 
 
 
 
 
 
 
 V- 
 
 o 
 
 O 
 
 o* 
 o 
 
 O) 
 
 CO 
 
 
 
 -> 
 
 CD 
 
 CO 
 
 < 
 
 
 
 
 
 
 
 
 05 
 
 LO 
 
 o 
 
 CO 
 
 o 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 CN 
 
 CO 
 
 
 XI 
 
 
 
 
 o 
 
 CO 
 
 CO 
 
 o 
 
 CO 
 
 o 
 Q 
 
 
 
 
 
 
 
 
 
 o 
 
 o 
 
 ■f-> 
 
 o 
 
 o 
 
 o 
 
 3 
 I 
 
 
 
 CD 
 CO 
 
 "5> 
 
 CD 
 
 CD 
 '6) 
 
 "to 
 
 > 
 
 
 
 
 
 Cl 
 
 **- 
 
 •H 
 
 o 
 o 
 
 "J 
 
 CO 
 
 o 
 
 o 
 
 o 
 o" 
 o 
 
 CO 
 
 c 
 o 
 
 
 
 c 
 
 CD 
 
 1 
 
 
 
 
 
 : | 
 
 cc 
 
 t 
 
 
 o 
 o 
 
 in 
 
 CN 
 
 o 
 o* 
 
 5 
 
 'E 
 
 
 
 o 
 
 c 
 o 
 
 
 
 
 
 . cc 
 
 ± 
 
 
 3 
 
 "5t 
 
 
 CO 
 
 o 
 
 1 
 
 
 
 +-• 
 
 +-■ 
 
 
 
 
 
 ■ 
 
 'S 
 
 
 
 +_, 
 
 *-> 
 
 +J 
 
 o 
 
 
 
 CO 
 
 CO 
 
 co 
 
 
 co 
 
 (/■ 
 
 ! c 
 
 a 
 
 
 CO 
 
 co 
 
 CO 
 
 CO 
 
 CO 
 
 Q 
 
 
 
 l_ 
 
 
 
 
 u 
 
 a. 
 
 
 
 
 t- 
 
 
 L. 
 
 
 
 
 
 o 
 
 o 
 
 o 
 
 c 
 
 CD • F 
 
 c 
 co C 
 
 1 c 
 
 ■> a 
 1 
 
 5 1 
 
 e 
 
 o 
 
 o 
 
 o 
 
 L. 
 
 CD 
 
 
 
 "co 
 
 'co 
 
 'co 
 
 cc 
 
 c 
 
 _ o £ c 
 
 c a 
 
 i. o a 
 
 c 
 
 a 
 
 'co 
 
 'co 
 
 'co 
 
 'co 
 
 'ro 
 
 O 
 
 
 
 "co 
 
 "co 
 
 lo 
 
 c 
 
 Li 
 
 O QJ C 
 S 73 i- 
 
 i 1 
 
 , .E 
 
 '£ 
 
 "co 
 
 •M 
 
 "co 
 ■t-i 
 
 "co 
 
 "to 
 
 "to 
 
 3 
 
 o 
 
 
 
 o 
 
 o 
 
 o 
 
 a 
 
 CD 1= > 
 
 * CO .E 
 
 § 
 
 | 
 
 O 
 
 O 
 
 o 
 
 o 
 
 O 
 
 CO 
 
 
 
 H 
 
 1- 
 
 h- 
 
 < 
 
 I 
 
 C 
 
 u 
 
 CO v: 
 
 1- 
 
 ^ 
 
 
 h- 
 
 1- 
 
 1- 
 
 1- 
 
 
 37 
 
Table 2,-Canadian Air Carriers: Operating Statistics for Civil Aviation, 1968 
 
 Jan. -Dec. 1968, 
 Groups l-IV 1 
 (in thousands) 
 
 Percent increase from 
 
 Jan. -Dec. 1967, 
 
 Groups l-IV 1 
 
 Unit toll traffic: 
 
 Hours flow 
 
 Passengers carried . 
 Passenger miles . . 
 Goods carried (lbs.) 
 Goods ton-miles . . 
 
 Unit toll revenues . . . 
 
 Bulk traffic: 
 
 Hours flown 
 
 Passengers carried . 
 Passenger miles . . 
 Goods carried (lbs.) 
 Goods ton-miles . . 
 
 Bulk transport revenues 
 Total operating revenues 
 Total operating expenses 
 
 485 
 
 8,424 
 
 7,525,282 
 
 295,103 
 
 207,837 
 
 $519,927 
 
 411 
 
 861 
 
 645,944 
 
 150,114 
 
 18,065 
 
 $70,104 
 
 $614,084 
 
 $575,687 
 
 8.3 
 
 3.3 
 
 8.5 
 
 19.8 
 
 32.6 
 
 12.4 
 
 3.4 
 
 8.9 
 
 64.7 
 
 24.5 
 
 35.5 
 
 21.8 
 
 13.0 
 
 11.6 
 
 1 See Appendix. 
 
 Source: Dominion Bureau of Statistics, Canadian Department of Transport, Air Trans- 
 port Committee. 
 
 38 
 
t as a r 
 
 m £ ♦* Q. 
 
 e 8% e 
 
 2 > c = 
 
 O _ CD © 
 
 3 i_ Q. -j 
 £ O CD C 
 
 -Q 
 
 1 
 
 a 
 
 DC 
 
 o 
 
 '> 
 
 CO 
 
 1 
 
 a 
 
 I. 
 
 CO 
 
 JD 
 
 0)0 00 LD 00 0)1^0(00 r* 
 
 oo ^r co co d^^f irici in co 
 
 in CO in CO CO «- «- CO ID in 
 
 «- ^ o> to 
 ^r to oi r»' 
 co to t- to 
 
 cm oo in co co co en 
 co i^ co ai co r»" oo' 
 co r»- in co <* in m 
 
 «-" co cm" d 
 
 in co in r^^p «-; 
 o> «*" odd — in 
 
 CM t- cq -<* 
 t-" co co d 
 
 co co co o — co 
 
 8 
 
 ^r in co o co co 
 oj o in co co 
 r^ o) co t- o) 
 
 cn in co "* 
 co co ^c co 
 
 "*. CN CD^ 
 
 CD «-' CN 
 
 in en O) in co oo co 
 
 o co »- co in o 
 
 (OOWr- CD CO 
 
 cm' t-* in 
 
 co oo co ^r 
 ^t ow d 
 
 9 ^ cq *-.cT -. °. 
 
 CO CM r- O — CO O 
 
 o 
 
 in in r* co 
 
 i-' d iri d 
 
 CO T- 
 
 00 t- CO *- 
 CO <fr <fr 0> 
 CO <tf CM O^ 
 
 CO' CO' CO*" CN 
 
 in in cm 
 co 
 
 in i^ co o cn r^ co 
 
 cm in co o i^ o> o 
 
 «cf CO r* CO CN CN 
 
 co <tf-' O) * in 
 
 5 s 
 
 CD »- O O 
 
 oo <a- in in 
 
 t-; r* CO CO 
 
 o> r-' in ^ 
 
 r» ^ cm 
 
 CM 
 
 cm o *t O) o> oo 
 r» co O) co cm «a- 
 co qron co 
 cm' cm' co' o' 
 
 CO CM <fr 
 
 > 
 
 c _ 
 
 1 ' 
 
 co o 
 *■• ■+- 
 
 >s 
 
 LL QC 
 
 8 -s 
 
 li 
 Jig 
 
 .c .. 
 Q. C 
 co o 
 
 2? 
 
 *-> CO 
 
 3 1 - 
 
 O Q. 
 Q. .E 
 
 < < < 
 39 
 
 ■s a c 8 -2 | 
 
 ■5 tt O O =^ 
 
 t. co o o -Q *; 
 
 > "CO "TO "CO m 2 
 
 co a; 03 Q) .— ._ 
 
 < < < < < 
 
 
 3 
 
 
 CO 
 
 
 0) 
 
 c 
 
 03 
 
 3 
 CO 
 
 o 
 
 c 
 
 03 
 
 o 
 
 a 
 
 'c 
 
 x in 
 
 E 
 
 o 
 
 •oo 
 
 03 C 
 
 n 
 
 Q. CO 
 
 
 Q..C 
 
 
 < ~ 
 
 0) 
 
 
 o 
 
 
 
 0) 03 
 
 -J 
 
 CO -J 
 
 o 
 
 rH CM 
 
 to 
 
Table 4.— Canadian Commercial Air Carriers: Equipment as of January 15, 1969 
 
 Manufacturer 
 
 Model 
 
 Number 
 
 
 Group A Fixed-Wing Aircraft 
 
 Boeing 
 
 Fortress 
 
 1 
 
 
 B707 
 
 2 
 
 
 B727 
 
 1 
 
 
 B737 
 
 7 
 
 Bristol 
 
 Freighter 170 
 
 6 
 
 Consolidated 
 
 Canso 28-5A 
 640 
 
 32 
 
 Convair 
 
 4 
 
 Curtiss Wright 
 
 C-46 
 
 1 
 
 Douglas 
 
 A-26 
 
 1 
 
 
 DC-3 
 
 60 
 
 
 DC-4 
 
 15 
 
 
 DC-6 
 
 4 
 
 
 DC-6B 
 
 5 
 
 
 DC-7C 
 
 2 
 
 
 DC-8-40 series 
 
 16 
 
 
 DC-8-50 series 
 
 11 
 
 
 DC-8-60 series 
 
 10 
 
 
 DC-9-30 series 
 
 31 
 
 Fairchild 
 
 F-27 
 
 Avenger 
 
 8 
 
 
 18 
 
 
 Gulfstream G159 
 
 2 
 
 Handley Page 
 
 Dart Herald 
 
 3 
 
 Hawker Siddeley 
 
 DH-125 
 
 2 
 
 
 748 
 
 1 
 
 Lockheed 
 
 Hercules 382 
 
 1 
 
 
 Lodestar 1 8 
 
 6 
 
 
 Super Constellation 1049 
 
 3 
 
 Martin 
 
 Mars 
 
 2 
 
 Nihon 
 
 YS-11 
 Vanguard 950 
 
 2 
 
 Vickers 
 
 23 
 
 
 Viscount 700 series 
 
 38 
 
 Total 
 
 318 
 
 
 Group B Fixed-Wing Aircraft 
 
 Aero 
 
 Commander 500 
 
 1 
 
 
 Commander 520 
 
 1 
 
 
 Commander 600 
 
 3 
 
 
 Commander 680 
 
 11 
 
 
 Commander 1 121 
 
 3 
 
 
 Turbo Commander 
 
 1 
 
 Avro 
 
 Anson V 
 
 4 
 
 Barkley Grow 
 
 T8P1 
 
 1 
 
 Beech 
 
 AT-11 
 
 2 
 
 
 18 
 
 74 
 
 
 Musketeer 23-24 
 
 11 
 
 
 Debonair 33 
 
 2 
 
 
 Bonanza 35 
 
 2 
 
 
 Twin Bonanza 50 
 
 2 
 
 
 Queen Air 65 
 
 1 
 
 
 Queen Air 80 
 
 3 
 
 
 King Air 90 
 
 1 
 
 
 Travelair 95 
 
 13 
 
 Bellanca 
 
 Skyrocket 31-55 
 
 2 
 
 
 Aircruiser 66-75 
 
 1 
 
 Boeing 
 
 Stearman 75 
 Islander BN21 
 
 21 
 
 Britten-Norman 
 
 1 
 
 40 
 
Table 4.— Canadian Commercial Air Carriers: Equipment as of 
 January 15, 1969-Continued 
 
 Manufacturer 
 
 Model 
 
 Number 
 
 
 Group B Fixed-Wing Aircraft— Con. 
 
 Callair 
 
 A-9 
 B-1 
 
 8 
 
 
 3 
 
 Cessna 
 
 180 
 
 261 
 
 
 182 
 
 14 
 
 
 185 
 
 67 
 
 
 188 
 
 2 
 
 
 195 
 
 2 
 
 
 205 
 
 1 
 
 
 206 
 
 23 
 
 
 210 
 
 6 
 
 
 310 
 
 15 
 
 
 320 
 
 3 
 
 
 337 
 
 9 
 
 
 402 
 
 4 
 
 
 402 
 
 4 
 
 
 411 
 
 2 
 
 
 421 
 
 1 
 
 DeHavilland 
 
 Beaver DHC2 
 
 163 
 
 
 Turbo Beaver DHC2 
 
 4 
 
 
 Dove 104 
 
 2 
 
 
 Heron 114 
 
 2 
 
 
 Otter DHC3 
 
 58 
 
 
 Twin Otter DHC6 
 
 10 
 
 Dornier 
 
 28 
 
 3 
 
 Fairchild 
 
 Husky F11 
 
 4 
 
 Found Bros 
 
 FBA2C 
 Goose G21 
 AG-CatG 164 
 
 12 
 
 Grumman 
 
 13 
 
 
 2 
 
 
 Widgeon G44 
 
 5 
 
 
 Mallard G73 
 
 3 
 
 Helio 
 
 Courier H391 
 Courier H395 
 
 1 
 
 
 1 
 
 Lockheed 
 
 Electra 10 & 12 
 Jobmaster DGA15 
 MU-2 
 
 4 
 
 Howard Aero 
 
 2 
 
 Mooney 
 
 1 
 
 
 M-21 
 
 1 
 
 Noorduyn 
 
 Norseman IV 
 
 8 
 
 
 Norseman V 
 
 27 
 
 
 Norseman VI 
 
 14 
 
 North American 
 
 Harvard 
 Ryan ST3 
 
 8 
 
 Navion 
 
 1 
 
 Piper 
 
 PA-23 
 
 116 
 
 
 PA-24 
 
 4 
 
 
 PA-25 
 
 16 
 
 
 PA-28 
 
 2 
 
 
 PA-30 
 
 7 
 
 
 PA-31 
 
 4 
 
 
 PA-32 
 
 3 
 
 Republic 
 
 Seebee RC3 
 
 2 
 
 Scottish Aviation 
 
 Twin Pioneer 
 Commander 600S2 
 SR9& 10 
 Reliant V77 
 
 1 
 
 Snow 
 
 8 
 
 Stinson 
 
 3 
 
 
 1 
 
 United Consultants 
 
 Twin Bee UC 1 
 Siai Marchetti 
 
 1 
 
 Waco 
 
 2 
 
 
 
 Total 
 
 1,101 
 
 41 
 
Table 4.— Canadian Commercial Air Carriers: Equipment as of 
 January 15, 1969— Continued 
 
 Manufacturer 
 
 Model 
 
 Number 
 
 
 Group C Fixed-Wing Aircraft 
 
 Aero 
 
 Aeronca 
 
 Alon 
 
 Commander 100 
 
 Sedan 15 
 
 Aircoupe A2 
 
 Musketter 23 
 
 Call Air A9 
 
 120 
 
 140 
 
 150 
 
 170 
 
 172 
 
 175 
 
 177 
 
 305 
 
 Traveller 7 
 
 Lancer 402 
 
 Canuck 80 
 
 Ercoupe415 
 
 Skimmer LA4 
 
 Observer 8 
 
 Beedee M 4 
 
 PA-11 
 
 PA-12 
 
 PA-16 
 
 PA-18 
 
 PA-22 
 
 PA-25 
 
 PA-28 
 
 J-3 
 
 Voyager 1 08 
 
 BC-12 
 
 3 
 4 
 2 
 
 Beech 
 
 1 
 1 
 
 
 1 
 
 
 7 
 
 337 
 
 5 
 
 188 
 
 4 
 
 9 
 
 1 
 
 54 
 
 Fleet 
 
 Forney 
 
 1 
 
 30 
 
 2 
 
 1 
 
 
 4 
 
 Maule 
 
 Piper 
 
 2 
 
 5 
 21 
 
 1 
 70 
 47 
 
 5 
 
 160 
 
 14 
 
 6 
 
 Taylorcraft 
 
 1 
 
 Total 
 
 987 
 
 
 Helicopters 
 
 Group B: 
 Bell 
 
 204 
 S-55 
 S-58 
 
 Alouette 2 
 Alouette 3 
 42 A 
 42B 
 
 10 
 2 
 
 
 1 
 12 
 
 
 1 
 3 
 
 
 1 
 
 Group B— Total 
 
 
 40 
 
 Group C: 
 Bell 
 
 206A 
 
 47 
 
 B-2 
 
 305 
 
 UH-12 
 
 FH-1100 
 
 269 
 
 300 
 
 21 
 
 197 
 
 2 
 
 1 
 32 
 
 
 19 
 
 7 
 
 
 5 
 
 Group C— Total 
 
 284 
 
 Groups B and C— Total 
 
 324 
 
 Source: Dominion Bureau of Statistics, Canadian Department of Transport. 
 
 42 
 
Table 5.— Canadian Commercial Air Carrier Fleet by Type of Power Plant 
 
 
 Total A/C 
 in fleet 
 
 Fixed- wing aircraft 
 
 Helicopters 
 
 Year 
 
 Turbo 
 jet 
 
 Turbo 
 propr 
 
 Piston 
 engine 
 
 Total 
 
 Turbine 
 
 Piston 
 
 Total 
 
 1960 . . 
 
 1964 . . 
 
 1965 . . 
 
 1966 . . 
 
 1967 . . 
 
 1968 . . 
 1969 1 . . 
 
 1,630 
 2,043 
 2,157 
 2,371 
 2,605 
 2,763 
 2,730 
 
 3 
 20 
 21 
 29 
 40 
 70 
 83 
 
 58 
 79 
 75 
 77 
 80 
 94 
 96 
 
 1,444 
 1,726 
 1,801 
 1,971 
 2,155 
 2,255 
 2,227 
 
 1,505 
 1,825 
 1,897 
 2,077 
 2,275 
 2,419 
 2,406 
 
 1 
 5 
 14 
 23 
 60 
 63 
 
 125 
 217 
 255 
 280 
 307 
 284 
 261 
 
 125 
 218 
 260 
 294 
 330 
 344 
 324 
 
 'Figures for 1969 are as of January 15, 1969; all other years are as of July 16. 
 Source: Dominion Bureau of Statistics, Canadian Department of Transport. 
 
 Table 6.— Hours Flown by Canadian Commercial Air Carriers, Groups l-V, 
 by Type of Service and Percentage Change, 1960-67 
 
 
 Service hours 
 
 Year 
 
 Unit 
 toll 
 
 Percent 
 increase 
 
 Bulk 
 
 Percent 
 increase 
 
 Specialty 
 flying 
 
 Percent 
 increase 
 
 1960 
 
 1961 
 
 1962 
 
 1963 
 
 1964 
 
 1965 
 
 1966 
 
 1967 
 
 Total percent 
 change 1960- 
 67 
 
 383,181 
 327,555 
 312,395 
 298,655 
 300,798 
 335,379 
 376,783 
 447,599 
 
 Base year 
 -14,5 
 -4.6 
 -4.4 
 0.7 
 11.5 
 12.3 
 18.8 
 
 16.8 
 
 289,113 
 313,225 
 306.324 
 332,131 
 377,246 
 431,269 
 481,722 
 509,978 
 
 Base year 
 
 8.3 
 
 2.2 
 
 8.4 
 
 13.6 
 
 14.3 
 
 11.7 
 
 5.9 
 
 76.4 
 
 1 73,555 
 184,643 
 186,127 
 201,855 
 234,288 
 317,580 
 453,619 
 545,203 
 
 Base year 
 
 6.4 
 
 0.8 
 
 8.5 
 
 16.1 
 
 35.6 
 
 42.8 
 
 20.2 
 
 214 1 
 
 
 
 
 Source: Dominion Bureau of Statistics, Canadian Department of Transport. 
 
 43 
 
Table 7.— Canadian Civil Aircraft Reporting Flying Hours in 1967 
 
 
 Fixed wing 
 
 Rotary wing 
 
 Total 
 
 Province 
 
 Number 
 
 Hours 
 flown 
 
 Number 
 
 Hours 
 flown 
 
 Number 
 
 Hours 
 flown 
 
 British Columbia . . . 
 
 Alberta 
 
 Saskatchewan 
 
 Manitoba 
 
 Ontario 
 
 Quebec 
 
 New Brunswick .... 
 
 Nova Scotia 
 
 Prince Edward Island 
 
 Newfoundland 
 
 Northwest Territories 
 
 Yukon 
 
 Total 
 
 1,086 
 
 855 
 
 636 
 
 599 
 
 2,342 
 
 869 
 
 100 
 
 69 
 
 16 
 
 80 
 
 58 
 
 41 
 
 6,751 
 
 356,086 
 
 189,725 
 
 1 03,432 
 
 138,465 
 
 500,250 
 
 526.324 
 
 24,001 
 
 13,724 
 
 1,913 
 
 37,246 
 
 15,196 
 
 9,440 
 
 1,915,802 
 
 82 
 
 69 
 
 13 
 
 10 
 
 113 
 
 55 
 
 4 
 
 2 
 
 2 
 
 16 
 366 
 
 38,979 
 
 35,216 
 
 5,449 
 
 4,145 
 
 50,809 
 
 20,871 
 
 2,243 
 
 334 
 
 1,195 
 
 10,531 
 169,772 
 
 1,168 
 
 924 
 
 649 
 
 609 
 
 2,455 
 
 924 
 
 104 
 
 71 
 
 16 
 
 82 
 
 58 
 
 57 
 
 7,117 
 
 395,065 
 
 224,941 
 
 108,881 
 
 142,610 
 
 551,059 
 
 547,195 
 
 26,244 
 
 14,058 
 
 1,913 
 
 38,441 
 
 15,196 
 
 19,971 
 
 2,085,574 
 
 Source: Canadian Department of Transport. 
 
 Table 8.— Canadian Private Aircraft Reporting Flying Hours in 1967 
 
 
 Fixed wing 
 
 Rotary wing 
 
 Total 
 
 Province 
 
 Number 
 
 Hours 
 flown 
 
 Number 
 
 Hours 
 flown 
 
 Number 
 
 Hours 
 flown 
 
 British Columbia . . . 
 Alberta 
 
 748 
 
 680 
 
 481 
 
 416 
 
 1,669 
 
 448 
 
 68 
 
 45 
 
 15 
 
 31 
 
 32 
 
 27 
 
 4,660 
 
 132,857 
 
 107,128 
 
 50,100 
 
 47,540 
 
 219,387 
 
 68,806 
 
 11,162 
 
 5,384 
 
 1,655 
 
 5,864 
 
 3,486 
 
 3,299 
 
 656,668 
 
 15 
 4 
 3 
 2 
 11 
 23 
 1 
 1 
 
 2 
 62 
 
 3,337 
 
 1,349 
 
 138 
 
 261 
 
 3,068 
 
 3,596 
 
 1,130 
 
 196 
 
 923 
 13,998 
 
 763 
 
 684 
 
 484 
 
 418 
 
 1,680 
 
 471 
 
 69 
 
 46 
 
 15 
 
 31 
 
 32 
 
 29 
 
 4,722 
 
 136,194 
 
 108,477 
 
 50,238 
 
 47,801 
 
 222,455 
 
 72,402 
 
 1 2,292 
 
 5,580 
 
 1,655 
 
 5,864 
 
 3,486 
 
 4,222 
 
 670,666 
 
 Saskatchewan 
 
 Manitoba 
 
 Ontario 
 
 Quebec 
 
 New Brunswick .... 
 
 Nova Scotia 
 
 Prince Edward Island 
 
 Newfoundland 
 
 Northwest Territories 
 
 Yukon 
 
 Total 
 
 
 
 Source: Canadian Department of Transport. 
 
 44 
 
Table 9.— Canadian Airports With Radio Landing Aids or 
 Runway Over 4,000 Feet Long 
 
 Province 
 
 Hard surface, 
 
 control tower 
 
 with radio 
 
 landing aid 
 
 Hard 
 surface 
 
 Sod, gravel 
 
 with 
 
 running 
 
 lights 
 
 Sod, 
 gravel 
 
 Seaplane 
 
 Alberta 
 
 British Columbia . . . 
 
 Manitoba 
 
 New Brunswick .... 
 
 4 
 8 
 5 
 4 
 5 
 4 
 
 6 
 15 
 7 
 2 
 4 
 2 
 6 
 24 
 
 22 
 5 
 1 
 
 94 
 
 6 
 2 
 1 
 1 
 
 10 
 7 
 1 
 
 3 
 
 Newfoundland 
 
 2 
 
 8 
 2 
 
 13 
 2 
 2 
 
 47 
 
 2 
 
 Nova Scotia 
 
 Northwest Territories 
 
 Ontario 
 
 Prince Edward Island . 
 
 Quebec 
 
 Saskatchewan 
 
 Yukon 
 
 26 
 3 
 
 6 
 
 1 
 
 10 
 
 7 
 3 
 1 
 
 51 
 
 5 
 2 
 
 2 
 
 5 
 50 
 
 
 Total 
 
 15 
 
 Source: BDSA/U.S. Department of Commerce. 
 
 45 
 
o 
 
 >8 
 
 cm r* 
 
 CO 05 
 
 ro r* 
 
 ^r cm co 
 
 CO CO CD 
 
 co" co" r^ 
 
 in o cm 
 oo <- CO 
 
 *- co in 
 iff «-" 
 
 SCO 
 CO 
 
 5 g 
 ro o 
 > <& 
 
 co in in 
 co r* o 
 
 ^r co a 
 
 o o co 
 o> cm o 
 cm o co 
 
 CO" CM" 0> 
 CM 
 
 co cn 
 o" cm" 
 
 s 
 
 r- CM CM 
 
 r- CO <tf 
 
 o 
 
 a 
 
 X 
 
 LLi 
 
 o 
 
 CO 
 
 a 
 
 3 O 
 
 ro o 
 
 8 
 
 1^ CO 
 
 cn in 
 
 «- CM 
 
 o co in in 
 r» r- o <t 
 ro w o co 
 cm" r>" o" 
 
 *- CM r- 
 
 CO 
 00 
 
 o 
 o 
 in 
 
 CM CM 
 
 <3- 
 
 
 *• cm 
 
 <* o 
 
 r- CO 
 
 00 
 
 T_ 
 
 CO 
 
 CO 
 
 CO 
 
 CM 
 
 
 
 
 IO 
 
 
 CO 
 
 
 
 ^_ 
 
 r* 
 
 
 CO 
 
 3 O 
 
 ro o 
 > S 
 
 CO 
 
 O i- CD CO 
 
 r^ ^ in co 
 
 CM 
 
 in 
 
 00 r- t- CO 
 
 r^ 
 
 O t- CO 
 t- CO CM 
 
 *- 
 
 CO CO 
 
 o 
 
 CM 
 
 co r* 
 
 CO 
 
 CO 
 
 <* a 
 
 in 
 
 CO 
 
 
 
 
 r*. cm 
 
 CO 
 
 r*« 
 
 r* co 
 
 £ 
 
 |S 
 
 3 -22 
 
 "ro ro 
 
 £ e 
 
 ro .= 
 
 £cg 
 
 •D oj 
 
 £ c 
 
 ro o 
 a +: 
 
 £ s 
 
 O .Q 
 
 iS 
 
 a £ 
 
 £ c 
 
 .r c > 
 
 <P !r c 
 
 ?. o 
 
 »S| 
 
 3 <S 
 
 c 2 P 
 
 ro (A c 
 
 c t •- 
 
 o (0-P O o o 
 
 £ a ^ c £ » 
 £ h- < UJ 
 
 ^ ro 
 
 £ a 
 
 O £ 
 
 O ro 
 
 O h 
 
 5 § 
 
 o o o w 
 
 C 4-- +J > 
 
 ro ^ ^ 
 
 5 " " ro 
 
 < < " 
 
 C 05 
 
 = - 5 
 
 aj a> 
 
 c E 
 
 ro J3 
 Q. — 
 
 ro CO 
 
 o co" 
 
 .= CO 
 < 
 
 if 
 
 E - 
 
 ro -Q 
 o — 
 
 £ O 
 ro O 
 
 E 
 o 
 o 
 o 
 
 l_ 
 
 ro 
 
 V _ 
 
 O) — 
 
 > c o 
 
 = 58°. 
 ro __ 
 
 < 
 
 £ -a 
 P c 
 
 £ CO 
 
 - C ro & 
 
 i2 "5 -S 
 
 r- -a E 
 
 co 5 | 
 3c8 
 
 o o 
 
 *• CD 
 
 o o o o 
 
 co r* CO r- 
 
 CM O) t- O 
 
 ^ O) <fr r- 
 
 m o 
 
 CM CO 
 
 o o 
 
 CO CO CO CO 
 
 3 3 
 
 46 
 

 
 3 O 
 
 2 o 
 
 ^fr CO CO Oi CO 0) <fr *~ co 
 
 co cm o r^ o r» "t io en 
 
 O) 
 
 
 
 <fr o r- ifl o^ h* r* o 
 
 
 
 CO 
 
 CD O 
 
 r-* cn co co lo" 'st 
 
 CO 
 
 
 co" 
 
 CO 
 
 
 Oi 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 a> 
 
 «- CM O) CO ! • • • 
 
 
 
 
 
 £ 
 
 CN CJ^ ... 
 
 
 
 
 
 E 
 
 *- *■ ' ,. . . 
 
 
 
 
 
 3 
 
 co ! . ■ ■ 
 
 
 
 
 
 z 
 
 '. cn ; . . . 
 
 
 
 
 
 
 r*» 
 
 CO 00 O) CN LO CO CO t CO 
 
 O) 
 
 
 
 3 2 
 
 2 o 
 
 o 
 
 CO LO LO I^O CO O t- 
 
 CN 
 
 <* 
 
 
 
 CN 
 
 O CM CO ^ to co^ O^ CO 
 
 CO 
 
 
 
 CO o 
 
 cm" 
 
 co" irfcocn't w * '"■ 
 
 T-T 
 
 
 
 > *B 
 
 
 r- rj- 
 
 
 ^t 
 
 
 r*» 
 
 *""" 
 
 
 
 
 CM 
 
 
 CO 
 
 
 
 
 W 
 
 
 a 
 
 
 
 
 
 
 
 
 
 
 
 
 CD 
 
 «- '. rt CO -tf " 
 
 
 
 
 
 £) 
 
 "t «p ■ . . . 
 
 
 
 
 
 E 
 
 r- CM ■ 
 
 
 
 
 
 3 
 
 i co" ; ! ! . 
 
 
 
 
 
 z 
 
 
 
 
 
 
 
 ■ r- OLO^^OOCO «- 
 
 CO 
 
 00 
 
 
 
 CD ^? 
 
 •cm S- lo co co co co ^t r* 
 
 T— 
 
 ■o 
 
 CO 
 
 3 
 C 
 
 
 2 o 
 
 co o 
 
 • «- co CM'intN«-^p co r^ 
 
 r-" COVtNtO* r-" t-" 
 
 O^ 
 
 
 >& 
 
 LO 
 
 
 to 
 
 00 
 CO 
 
 
 
 
 & 
 
 c 
 
 
 
 
 
 o 
 o 
 
 
 CD 
 
 X) 
 
 E 
 
 3 
 
 
 O 3 r- ■ . . . 
 
 *- ^- co • . . . 
 
 
 
 CO 
 
 
 
 o" " . . . 
 
 
 
 T3 
 CD 
 
 
 z 
 
 
 
 
 c 
 
 a 
 
 
 
 
 
 
 
 
 00O COO WfM t- r- sj 
 
 Or- r»T-i^i^coco »- 
 
 a> 
 
 r>. 
 
 
 oj ■£? 
 
 o 
 
 CN 
 
 2 
 
 
 3 ° 
 "co O 
 
 00 CN CN r-^co CO CM c 
 
 00" lO" lOlO T-" r-" r- 
 
 LO 
 
 a>" 
 
 
 
 >S 
 
 CN lO r- 
 
 
 CO 
 
 O 
 
 CO 
 0) 
 
 
 
 
 <A 
 
 o, 
 
 X 
 
 LU 
 
 l_ 
 
 r- r» r- r* * " ' ' 
 
 
 
 
 CD 
 X! 
 
 E 
 
 3 
 
 a in • ; ■ ; 
 
 
 
 CD 
 U 
 CO 
 
 
 <»;;;; ! 
 
 
 
 a 
 
 
 z 
 
 
 
 
 v> 
 
 
 
 
 
 
 2 
 
 
 
 
 
 a> 
 
 
 
 
 
 
 
 
 
 < 
 
 
 
 
 
 
 
 
 
 CO 
 
 
 
 
 
 
 
 
 
 D 
 1 
 
 
 
 
 
 
 
 
 
 6 
 
 
 
 
 
 
 
 
 
 V 
 
 
 o 
 
 o « . » 
 
 
 
 
 — " <t. ! i ! 
 
 
 
 .Q 
 
 > 
 
 °.£ ■ § 
 
 
 
 
 CO ■ i- • V) 
 
 
 
 CO 
 
 o 
 
 O) 
 CD 
 4-> 
 CO 
 CJ 
 
 CQ 
 
 CO °) . .2 
 
 
 TT 1 
 
 J- O , «i 
 
 
 
 1- 
 
 "-1:1 
 
 H £ ■ 5 
 •. % ■ E 
 c h • o 
 
 s 
 
 si 
 
 o ° 
 
 co '5 £ 2 • E • 
 
 = ^£ : o : 
 
 E *V 5 .- w • 
 
 M- 
 
 
 
 "8 
 
 O 
 CO 
 
 £3-5 • O 
 
 o > : s»w 
 
 O. +j co a 
 w a y > 
 c c § L c 
 
 > o 
 
 S 
 
 If 
 
 o "Q 
 c 22 
 
 . c 43 c S E ; 
 
 s«r&Jgfe : 
 
 2 lo -o o ? .E • 
 
 co 
 b 
 'co 
 
 si 
 
 cJ E 
 
 
 
 
 "Pi ^O . - = ro 2 »^5 (D 6 
 
 5° . c P° P " c^ss !" !° - 
 
 bsobcobbo-So-^sbb? 
 < < << <iJa<< 
 
 » E 
 c S 
 - c 
 
 " CD 
 
 ° .E 
 f c 
 
 "co 
 +■» 
 o 
 
 1- 
 
 "O 
 
 c 
 
 CO 
 i_ 
 
 O 
 
 
 £ CO 
 
 
 
 
 
 u 0) o 
 
 CO O CMiX) oooooo 
 
 io 
 
 
 
 H P E 
 
 lO CO COCO CMT-CMCOr-CM 
 O O OO r- CN CM CM *- r* 
 
 CO 
 
 
 
 o> 
 
 
 
 «~ *~ t— r- 0)0)0 010)0) 
 
 O) 
 
 
 
 CO . 
 
 c -± 
 
 » 1 
 
 
 s 
 
 
 
 SSScoco 
 r» r^ r» co oo 
 
 § 
 
 
 47 
 

 
 
 o 
 
 CN 
 
 00 
 
 <tf • 
 
 
 00 
 
 r*. 
 
 o 
 
 ^f 
 
 
 l*s I-» 
 
 r- 
 
 
 
 
 3 ° 
 
 T— 
 
 O O 
 
 
 oo r» • 05 r» 
 
 '* 
 
 o 
 
 
 
 
 "to o 
 > ^ 
 
 
 qoi 
 
 
 «-* co* ; co- 
 
 05 
 
 CO 
 
 d 
 
 CM 
 
 
 
 CD 
 
 
 
 
 
 ^ 
 
 
 
 £ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 t— 
 
 03 
 
 co 
 
 00 co • • 
 
 
 co CO • O f- . • . 
 
 
 
 
 
 JD 
 
 io 
 
 oin • ■ 
 
 
 CO r- 
 
 
 
 
 
 
 E 
 
 
 05 ■ • 
 
 
 
 
 
 
 
 
 3 
 
 
 r- 
 
 
 
 
 
 
 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 o 
 
 rT 05 * CD r* 
 
 »-r-.co co o 00O5C0 
 
 00 
 
 
 
 
 3 o 
 2 o 
 
 M 
 
 CN CO • r- 
 
 O) r* co co co lo cc 
 
 r- 
 
 
 
 
 
 o o . 
 
 CO CM *- 00 O r- CO 
 
 *— 
 
 
 
 
 
 
 
 
 
 
 
 CD O 
 
 
 co" «-* • 
 
 t- «- LO CN <- LO 
 
 !>■' 
 
 
 
 
 >& 
 
 
 
 LO 
 
 r>« 
 
 
 
 CD 
 
 
 
 
 '— 
 
 ^ 
 
 
 
 o> 
 
 
 
 
 
 
 
 
 
 03 
 
 E 
 
 LO 
 
 CN t- • " 
 
 cm r* cm co co ^r ■ ■ 
 
 
 
 
 
 * 
 
 00 
 
 
 CN t- *- 
 
 
 
 
 
 3 
 
 
 
 
 
 
 
 
 
 z 
 
 
 
 
 
 
 
 
 
 
 r» 
 
 r^OLOt- CNcor^- cn <a- in r*. r» 
 
 r» 
 
 
 £ 
 
 
 3 2 
 
 ro o 
 
 oi 
 
 CD CO 
 
 LO CO . CM *- CO CO t- 
 
 CO 
 
 
 
 
 "tP 
 
 fO ^ . CO *-; LO^ O^ CT 
 
 r- 
 
 
 o 
 
 3 
 
 00 
 
 
 O* CO- 
 
 co" • LO* CN LO* <** 
 CM . *- CO 
 
 t— 
 
 o 
 
 CN 
 
 
 o 
 
 0. 
 0) 
 
 & 
 
 
 
 
 
 <A 
 
 
 *" 
 
 u 
 
 i> 
 
 LO co ■ • 
 
 CM «— 05 00 CO < ' 
 
 
 
 1 
 
 
 03 
 
 E 
 
 
 t- LO • 
 CO «- • 
 
 
 r- CM • t- CO 
 
 
 
 s 
 
 5 
 
 
 3 
 
 z 
 
 
 
 
 
 
 
 < 
 
 
 
 h- 
 
 CN <* . . 
 
 r-CO' 05 CN C5CNO 05 
 
 «* to • ^r ^- co <* in co 
 lor-. ^ t- i^«*cn co 
 
 
 c 
 
 
 3 © 
 
 2 o 
 
 ro o 
 
 in 
 
 r» to . 
 
 
 
 (0 
 
 
 CN 
 
 <- o 
 
 
 
 
 
 
 
 
 
 
 
 "■5 
 
 
 
 05 <** ! 
 
 
 t- »- ■ «tf LO CM CM 
 
 
 
 (0 
 
 c 
 
 (0 
 
 
 > § 
 
 
 
 
 r- CM 
 
 cc 
 
 
 o 
 
 
 
 
 
 ^ 
 
 
 O 
 
 8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 »^ 
 
 
 i_ 
 
 
 n r* • 
 
 
 LO CM • CO LO «- ■ 
 
 
 
 o 
 
 en 
 
 
 03 
 
 JD 
 
 
 CO 05 ■ 
 CD CN • 
 
 
 ^ r- • ^- <fr 
 
 
 
 t 
 
 
 E 
 
 
 
 
 
 
 
 O 
 
 a 
 
 
 3 
 
 z 
 
 
 
 
 
 
 
 £ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 "~ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 C/5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 | 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 t— 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 JQ 
 
 
 
 
 
 
 
 
 
 a] 
 
 
 8 
 
 
 
 
 re 
 
 
 
 
 
 
 
 
 a e 
 
 
 o^ 
 
 
 
 
 1- 
 
 > 
 
 u 
 
 o 
 
 s 
 
 ro 
 o 
 
 
 
 o 
 
 c 
 
 1 
 
 B 
 
 c 
 a 
 
 c 
 
 V 
 
 a 
 c 
 'a 
 
 ■3 ' 
 
 . TO 
 
 . c 
 ro 
 
 +-> 
 
 : s 
 
 
 i- S C 
 O > 3 
 
 "S b £ «- 
 
 6 
 o 
 o 
 o" 
 
 CO* 
 CO 
 
 i- 
 
 03 
 
 > 
 o 
 
 5 
 
 ■ to 
 
 • QJ 
 
 " c 
 
 
 
 
 < 
 CO 
 
 ro 
 
 c • 
 
 03 . 
 
 . 'ro 
 
 
 « o « -& w -5. ffl 
 
 3 u c ? c .? c 
 
 • 1- 
 
 . ro 
 
 
 to 
 
 
 D 
 
 CO 
 
 I 5 ! 
 
 03 ■- 
 
 4- 1 C 
 
 ro .£ 
 
 b % 
 
 oT3 
 
 2 «o 
 
 . o 
 
 
 » « .03 .03 « 
 I_ V. V. * L. ^ V. 
 
 
 3 
 
 CO 
 
 c 
 
 
 1- 
 
 c 
 ro 
 
 ♦- 
 
 o a 
 
 ro to 
 
 03 .i= 
 
 . 03 
 • 03 
 
 . JZ 
 *-> 
 
 • rororo>.ro>»ro 4 _,""'|; 
 
 ■ SEEEEEEE'Sbx 
 
 5 
 
 I 
 1 
 
 03 
 
 o 
 
 03 
 
 
 
 *- a 
 
 1 6 
 
 a ro 
 
 • +-> 
 
 .~ CCC 03 c O3 C gCD c 
 
 1 5 
 
 3 £ 
 
 ■fj 
 
 
 
 ro £ 
 
 03 r 
 
 1 
 
 3 
 
 ^ c 
 
 : Si 
 
 ..mutiitV. 
 
 o 
 
 
 
 3 *-> 
 
 c ro . e 
 
 8s. IS 
 
 ! ill 11 18 illj 
 
 jrorororoOroOro .{g-r 
 ".aaaao'Q-O-aX , n 
 
 ,i-i-i-i-^-i-C0 wk - 1 ' 
 
 
 3 
 
 03 
 
 
 
 tO +■ 
 
 «5 > -s O i- JU I 
 j i- > Q. n 03 co o 
 
 O 03 c ^ 70 © C 
 ' .= C O (0 — •- " 
 
 j 2 
 
 i ° 
 
 3 
 CO 
 
 
 
 CL 
 
 < Z co O ^ 
 
 <<<< < < <a 
 
 
 CO 
 
 D 
 
 
 < a> 
 
 CO -Q 
 
 in 
 
 o o o o o 
 
 oooo o o oc 
 
 > 
 
 03 
 
 o 
 
 
 
 cn ^r o o o 
 
 CD CO LO O O 
 
 »-CNC0^ LO CO OC 
 
 oooo o o oc 
 
 > 
 
 3 
 
 
 D £ 
 
 1 
 
 CO 
 
 ^- ^- t- cn co 
 
 CO CD C5 05 C5 
 
 'nT'^-'*^ "tf ^- (Oh 
 
 
 o 
 
 
 gi-i 
 
 05O5O5O5 05 05 C5C 
 
 ■ 
 > 
 
 CO 
 
 
 
 _ 
 
 CD 
 
 CD 
 
 cc 
 
 CO C£ 
 
 5 CO 
 
 cc 
 
 cc 
 
 ) CO CD 
 
 CO 
 
 CO 
 
 CO C£ 
 
 > 
 
 
 48 
 
 * U. S. GOVERNMENT PRINTING OFFICE : 1970 392-254/206 
 
PENN STATE UNIVERSITY LIBRARIES 
 
 ADDDD71Efl7T4E