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Homefield Advantage

Canada has developed a market expertise

Written by Gary Watson   
136-homefieldWith projects either cancelled or delayed at home, and a shortage of maintenance slots in the US due to labour limitations, the $3.9 billion Canadian aircraft maintenance, repair and overhaul sector is leveraging home field advantage to pursue business opportunities abroad.

Canada, according to the Canadian Aviation Maintenance Council (CAMC) has developed a market expertise in turboprop aircraft such as the Bombardier Q series and is now moving into the burgeoning market for maintenance of small regional jets such as the Bombardier CRJ. Aircraft manufacturers like Bombardier and leasing companies such as International Lease Finance Corporation (ILFC) have put major conversion projects Canada's way either for clients, or as aircraft are returned from bankrupt and financially troubled operators.

The failure of Ansett Airlines in Australia, has resulted in 10 CRJ 200s and a Dash 8 outside the Calgary hangar of Field Aviation. Once resold, Field will refurbish and modify the aircraft to the next operator's specifications. It is projects like these that are opening doors to foreign operators who might not have previously considered Canadian companies. Once here the advantages of doing business in Canada become readily apparent: a skilled and reliable workforce, quick turn-around times and a low Canadian dollar in an industry where routine labour is approximately 15% of every invoice.

Nevertheless, AMOs cannot afford to become complacent. A stronger dollar will place added pressure for increased labour productivity, while foreign-ownership of mid-sized companies could see work destined for Canada diverted elsewhere, although this is not expected to impact on the larger AMOs.