Federal Government Pledges Up to $2.5B to De Havilland Canada for Water Bomber Production

The federal government has pledged up to $2.5 billion in financing for De Havilland Canada, the maker of Canadair water bombers, to increase production of the firefighting aircraft. According to the federal Department of Finance, the funding will allow for a second assembly line in Alberta. De Havilland says the financing will provide the means to double production capacity to an eventual 20 water-scooping planes per year.

Production and Expansion Plans

De Havilland states it will use the cash toward new staff and production in Victoria, Calgary, and Ontario. The company also plans to use the funds for a manufacturing plant currently under construction about 30 minutes east of Calgary in Wheatland County. CEO Brian Chafe has described the facility as a "world-class aerospace hub" and a "state-of-the-art campus."

De Havilland says it will use the financing to "hire new staff and invest in additional production capacity across its Canadian sites in Victoria, Calgary, Toronto, Kitchener and Fort Erie with supply chain jobs being created from Newfoundland to British Columbia."

Financing and Market Demand

Finance Department spokesperson Benoit Mayrand said the funding is expected to take the form of loans and loan guarantees delivered by Export Development Canada. Regarding the specifics of the deal, Mayrand stated, "Specific commercial terms and conditions, including applicable interest rates and repayment terms, are subject to commercial confidentiality."

Demand for amphibious firefighting aircraft is increasing due to the scale and intensity of wildfires. De Havilland's aircraft, which can "suck up more than 6,000 litres of water in 12 seconds and dump it on wildfires," are currently the only aircraft of their kind in production built specifically for that purpose rather than being retrofitted.

Production Challenges and Competition

De Havilland has faced challenges in ramping up production after an assembly line halt in 2015 when the line was run by Bombardier Inc. The company has yet to churn out a single aircraft, and procurement hurdles have pushed the projected delivery date for the first Canadair DHC-515 to early 2028.

Industry experts have raised questions regarding the production methods and scale. John Gradek, who teaches aviation management at McGill University, noted that the planes will be "riveted by hand and roll off the line at a projected rate of 10 per year — 20 eventually — partly due to a lack of automation." Gradek also questioned the financial risk, stating, "De Havilland’s never built one of these airplanes."

Competition in the sector is increasing. Aerospace companies including Positive Aviation, Kepplair Evolution, and Hynaero of France are developing water bombers. Additionally, Italy’s 19-01 Holding aims to roll out a prototype by 2028 that can scoop roughly twice the water volume of the DHC-515.

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Sources

• globalnews.ca: De Havilland getting up to $2.5B in federal financing to ramp up water bomber production | Globalnews.ca
• cp24.com: De Havilland to ramp up production after $2.5B in federal financing
• castanet.net: De Havilland getting up to $2.5B in federal financing to ramp production - Castanet.net
• stcatharinesstandard.ca: De Havilland getting up to $2.5B in federal financing to ramp up production

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.