Viking Air Ltd. to sell Twin Otter in China, becomes first Canadian company to benefit from new bilateral arrangement
VANCOUVER, June 12, 2015 /CNW/ - The Honourable Kerry-Lynne D. Findlay, Minister of National Revenue, on behalf of the Honourable Lisa Raitt, Minister of Transport, today congratulated Vancouver Island's Viking Air Ltd. on successfully positioning itself to sell its Twin Otter Series 400 aircraft in China. Minister Findlay was joined at the announcement by Mme. LIU Fei, Consul General of the People's Republic of China in Vancouver.
Viking Air Ltd. is the first Canadian company to benefit from a new Bilateral Aviation Technical Arrangement (BATA) signed between Canada and China in February 2015. Meeting the requirements under a trade arrangement opens the doors to the vast Chinese market for this iconic aircraft, which is celebrating the 50th anniversary of its first flight.
Under the arrangement, Transport Canada and the Civil Aviation Authority of China are streamlining approvals for aeronautical products and parts from each other's countries. The goal is to minimize redundancies, reduce costs, and save time. The arrangement is expected to open new markets for world-class Canadian companies, creating jobs and boosting local economies.
The Twin Otter is known for its sturdiness and its ability to take off and land in challenging terrain. The aircraft is used in a wide range of sectors, from disaster relief and mining exploration to medical evacuation and passenger and cargo service in remote areas.
- Canada and China successfully concluded negotiations on the BATA during Prime Minister Stephen Harper's official visit to China in November 2014.
- China is Canada's second-largest trading partner. In 2014, Canadian exports to China were valued at nearly $19.4 billion, while merchandise trade between the two countries was $78 billion or 7.5% of Canada's total trade.
- Viking Air Ltd. estimates the Chinese demand for its Twin Otter Series 400 aircraft at around 25 planes per year, translating into $3.5 billion in export potential over the next 20 years (based on current average sale price).
- Based near Victoria, B.C., Viking Air Ltd. employs about 600 people on Vancouver Island and in Calgary.
"The Twin Otter has been a Canadian aviation icon for 50 years, and trade agreements are crucial to its success in the international marketplace. The Canada-China arrangement lays the groundwork for further cooperation that will promote trade while maintaining the highest standards for safety."
The Honourable Kerry-Lynne D. Findlay
Minister of National Revenue
"Warm congratulations to Viking Air Ltd. on securing its new business market in China. We believe that our bilateral trade will increase significantly with similar high-value products. We also expect more companies to benefit from existing agreements and potential new ones."
Mme. LIU Fei
Consul General of the People's Republic of China in Vancouver
"The Canada-China arrangement was instrumental in opening up what is expected to be a significant multi-billion dollar market opportunity for Viking's Twin Otter Series 400. Transport Canada delivered full transparency and engagement with stakeholders on the process. With additional guidance from the Embassy of Canada in Beijing, Viking was able to successfully navigate complex government-to-government negotiations."
President & CEO, Viking Air Ltd.
Canada-China Bilateral Aviation Technical Arrangement for Aeronautical Products
Since signing the Action Plan on Civil Aviation Safety in November 2012, Canada and China have worked together to mutually understand their civil aviation programs to facilitate trade in aeronautical products. In September 2014, Transport Canada met with the Civil Aviation Administration of China to further strengthen the relationship between the two authorities.
During Prime Minister Stephen Harper's visit to China in November 2014, the two countries concluded negotiations on a bilateral aviation technical arrangement (BATA) for aeronautical products. This BATA, which was signed by both countries in February 2015, will help reduce the administrative burden and facilitate market access for Canadian aeronautical companies exporting aircraft and parts to China, and vice versa.
The BATA covers civil aeronautical product and parts design approvals; production approvals; export airworthiness certification; and post-design approvals. Under the BATA, each party can request the opportunity to validate and accept the other's design, production, and export airworthiness approvals.
The BATA does not automatically confer reciprocal acceptance or mutual recognition of each country's standards. Canada can still choose to implement its own certification process for a Chinese part or product, and vice versa.
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SOURCE Transport Canada
For further information: Zach Segal, Press Secretary, Office of the Honourable Lisa Raitt, Minister of Transport, Ottawa, 613-991-0700; Media Relations, Transport Canada, Ottawa, 613-993-0055