April 2016 Issue 2 Page 1

Canada, U.S. Announce collaboration on Arctic Issues On March 10, President Barack Obama and Prime Minister

Justin Trudeau held a press conference to announce a

deepening cooperation to reduce greenhouse gas

emissions—which will have an outsized impact on the long-

term health of the global Arctic, the frontline of climate

change— with an Indigenous and Northern partnership.

Arctic communities rest on the territories of Indigenous

peoples, who possess a wealth of knowledge, distinct ways

of life, and a richness of cultural diversity. It is home to

natural marine, land, and air migrations that know no

borders. It is also the frontline of climate change.

One of the main objectives will be creation of low impact

shipping corridors. Canada and the U.S. will work together

to establish consistent policies for ships operating in the

region taking into account important ecological and cultural

areas, Indigenous and Northern Arctic input. In addition,

they will determine how best to address the risks posed by

heavy fuel oil use and black carbon emissions from Arctic

shipping. Another objective is to strengthen the resilience

of Arctic communities and continue to support the well-

being of Arctic residents.

LTAA addresses these objectives as airships will provide

Indigenous communities with much needed housing, lower-

cost food and material. On return trips, airships will remove

decades of trash for recycling and take Arctic products such

as fish and other locally produced items to southern

markets. With a close-to zero carbon footprint, and ability

of airships to avoid new road construction, the fit is good!

Flyer

Issue 2

April 2016

Prime Minister Justin Trudeau at a White House joint news conference with President Barack Obama, March 10.

Canada, U.S. Announce collaboration on Arctic Issues ....... 1

Transport Airships for Northern Logistics ........................... 2

An Interview with LTAA President Marc Bourret ................ 6

News Flash!!! ....................................................................... 7

Where Do You Park a 152 Meter Airship? .......................... 8

How to Load and Unload a House ....................................... 9

News Links ......................................................................... 10

News Links: Why we need LTAA Airships now ................. 10

IN THIS ISSUE

April 2016 Issue 2 Page 2

Transport Airships for Northern Logistics

Technology for the 21st Century

Barry E. Prentice, Professor, Supply Chain Management,

University of Manitoba

Northern Canada has an abundance of natural resources

that could meet world demands for metals and energy. The

primary challenge is the cost of extraction. If a development

frontier can be defined as an area without railway or road

access, 70 percent of Canada’s landmass and much of

Alaska would be classed as disconnected from the modern

North American economy. This access-denied territory is

where an emerging generation of transport airships could

fill gaps in the existing transportation networks.

The land area north of the all-weather roads and rail lines

encompasses approximately 4 million square miles and is

characterized by vast distances, thin markets, and harsh

weather conditions. Sparse traffic density, few back-haul

opportunities, seasonal shutdowns and unreliable

transportation services lead to expensive logistics. The price

of virtually everything in remote communities is two-and-a-

half to three times more expensive than in southern

Canada. These are the characteristics of under-developed

hinterland that impede private investment and job

creation.

The solution for the future of northern transportation could

lie in an older technology that is gaining renewed interest.

Eighty years ago, large passenger airships were able to carry

70 tons at 80 miles per hour, and cross the Atlantic Ocean

on regularly scheduled flights. Investment in airships was

curtailed by the rapid development of airplane technology

during World War II and the subsequent Cold War.

Transport airships could have been built anytime during the

past 50 years but oil was cheap, everyone wanted to go fast,

and airplanes had a solid safety record. There was simply no

demand for any airships, except for a few advertising

blimps.

Below is an overview of traditional Northern logistics and

how airships could be used to support or replace them.

Overview of Traditional Northern Logistics

The means of Arctic freight transportation are saltwater

ships, barges, airplanes, helicopters, all-weather roads, cat-

trains and ice road trucks. Each mode of transport is

described briefly with some thoughts on how airships could

be used to support or replace them.

Marine Transport

Sealift is the least expensive form of transport available to

communities with seasonal access to open water. Ships and

ocean-going barges are capable of delivering 5,000 to

25,000 tonnes of fuel and other cargo out of Montreal and

Churchill to serve the eastern Arctic. The western Arctic can

be served by fuel tankers from overseas and 12,000-tonne

ocean barges out of Vancouver or Prince Rupert, BC that

can connect to smaller barges in Tuktoyaktuk, North West

Territories (NWT).

Saltwater transport permits two or three deliveries per

year. Seasonal service means that if cargo misses the sailing

date, a construction project or other development can be

held up for a full year or forced to use much more expensive

air transport.

Mackenzie River barges suffer a lack of feeder traffic for the

backhaul to Hay River. Resource development along the

Mackenzie River is sparse and roads are few. Transport

airships could provide feeder services to the barges. They

could lift pipe, equipment, fuel and supplies from the

barges to extraction sites, and haul mineral concentrates

from base metals/rare earth mines back to the barges.

Transport airships would complement barge transport in

the Mackenzie delta and Beaufort Sea, and make the

existing service more economically viable.

In Northern communities all cargo—whether it arrives by trucks or air—is expensive and problematic.

April 2016 Issue 2 Page 3

All-weather Roads

The construction of all-weather gravel roads is prohibitively

expensive in areas of muskeg, permafrost and many water

crossings. Two on-going road developments in the North

are the 100-km road from Inuvik to Tuktoyaktuk that is

expected to be completed in 2017, and an 872-km road

network on the east side of Lake Manitoba that is expected

to take 30 years at the current rate of funding. On average,

these roads cost about $3 million per km, depending on the

number of bridges required, rock outcrops to blast and

swamps to fill in. At $3 million per km, the frontier region

is unlikely to receive much all-weather road infrastructure

anytime soon. It would cost $15 billion just to convert the

5,000 km ice-road networks of Ontario and Manitoba into

one-lane gravel roads. Compared to the cost of converting

ice roads to gravel, airships would be an inexpensive means

to expand service to remote communities and resource

developments.

Annual road maintenance and snow clearing would cost

millions more; especially as climate change progresses. Soil

conditions are a critical factor. Sections of paved roads have

had to be abandoned because of thawing permafrost

causing soil slump and/or bank erosion.

The utilization of the road infrastructure is another

important consideration. In 2013, Prentice et al concluded

that transport airships are more economic than all-weather

roads, the lower the traffic volume, the longer the distances

and the shorter the road’s useful life (in the case of a mine).

For the cost of building about 300 km of gravel roads, a

transport airship industry could be established that would

serve the entire north of Canada.

Ice Roads

Cat-trains and tractor-trailers operate on temporary roads

that are built over frozen lakes and cleared bush. Typically,

it costs $3,500 to $6,000 per km to build an ice road over

proven routes that do not require clearing. Pioneering a

new route is much more expensive and requires a land use

permit. In general, ice road construction costs increase with

distance and the

proportion of the ice road

that is routed over land.

Added to the annual cost of

building and maintaining

the ice roads, truck

shipments are 65 to 70

percent more expensive

than the equivalent truck

transport over all-weather

roads. Trucks have to travel

more slowly crossing

frozen lakes, suffer greater

damage to suspension and

tires on the land portions,

experience longer delays

and face more risk

associated with pressure

ridges and thin ice.

Ice roads usually open in

January and close in March.

But as the winters warm,

the ice roads are also becoming less reliable. The end of the

economic use of ice roads is already visible in the central

provinces.

An El Niño year in 2006 caused the premature closing of the

ice road serving the diamond mines out of Yellowknife,

NWT. Out of the 10,000 truckloads planned to move over

the ice road that winter, approximately 3,500 truckloads of

fuel and materials were undelivered when it closed. The

The Canadian road network is severely limited in the North, where it costs $3 million a km to build an all-weather road.

April 2016 Issue 2 Page 4

expense to fly in fuel and supplies added $100 million to

cost of the mines’ operations.

Air Transport

Air transport is the only year-round transportation service

in the northern frontier. However, airplanes and helicopters

are expensive and shipments can be limited by cargo size

and dimensions. The disadvantage of airplane size is the

greater cost of providing longer and better quality landing

strips. Only specially kitted jet aircraft can operate from

gravel runways. In the spring gravel landing strips may be

too soft to permit safe use.

In addition to the high freight rates, smaller airplanes are

restricted by cargo weight and dimensions. Airplanes can

easily “cube-out” before they “weigh-out” if the cargo is

low density, items like bread, corn flakes, diapers, paper

towels, etc. Transport airships could reduce the

transportation costs of food and general merchandise to

remote communities by one-third.

Cargo size is also a problem. Indivisible freight can only be

shipped if it can fit through the airplane’s cargo door.

Airships would be able to complement existing airplane

fleets for the movement of oversized cargo or oddly shaped

pieces.

“FOR THE COST OF BUILDING ABOUT

300 KM OF GRAVEL ROADS, A

TRANSPORT AIRSHIP INDUSTRY COULD

BE ESTABLISHED THAT WOULD SERVE

THE ENTIRE NORTH OF CANADA.”

Due to global warming, the safety and reliability of ice roads and frozen lakes has become unpredictable.

April 2016 Issue 2 Page 5

Summary

A new generation of transport airships would have a

revolutionary impact on the northern economy.

Transportation and logistics costs would fall, and problems

of environmental regulations and aboriginal land ownership

would greatly diminish. The airship may be the only means

of transport that can adapt to the negative consequences

of climate change on northern transportation. The question

is no longer whether transport airships will be used, but

when.

This article is part of a longer paper which was submitted to

the Canada Transportation Act Review in July 2015 and has

been edited for space.

Aircraft Cost Comparison for a 300 km Flight

Aircraft Type Cargo (kg) Cost ($/km) Cost ($/kg) Airstrip (m)

Twin Otter 955 $6.50 $4.09 310

DC3 2,500 $10.60 $2.46 925

Curtis C-46 6,800 $17.95 $1.58 1,075

DHC Buffalo 7,500 $17.00 $1.37 925

Boeing 737C 13,500 $20.99 $0.97 1,700

Hercules 20,000 $35.78 $1.12 1,700

Sources: (Petrie; Johnson, 2008)

Before he joined the University of Manitoba, Dr. Prentice served as the Director of the Transport Institute from 1996-2005. His major research and teaching interests include logistics, transportation economics, urban transport and trade policy.

“THE EXPENSE TO FLY IN FUEL AND

SUPPLIES ADDED $100 MILLION TO

COST OF THE MINES’ OPERATIONS.”

April 2016 Issue 2 Page 6

An Interview with LTAA President Marc Bourret

Before taking the helm of LTAA in November 2015,

Marc was President and CEO of Stelia

Aéronautique Canada Inc. of Montreal. At Stelia,

he oversaw major programs such as the

Bombardier Global 7000/8000 production

partnership. Marc is a bilingual aerospace

professional with a wide range of expertise in

general management, customer service, strategic

planning, sales and marketing, business

development, experimental helicopter flight

test/aerospace engineering, and aircraft

certification/qualification. At LTAA, he is

responsible for development and manufacturing

programs, supply chain and partnership activities.

He reports to the LTAA CEO.

Why did you join LTA Aerostructures, Inc?

At this stage in my career, I was looking for a

business development challenge where there

would be an opportunity to make a difference in

the economic and social development of Canada,

where a real need could be satisfied with a new

aerospace technical solution.

Our project provides a solution to heavy cargo

transportation in isolated regions of the North. It

is aligned with three of the five priorities of the new

Federal Government and with the strategic

objectives of the Plan Nord of the Québec

Government. Though airships were first developed

decades ago, new technology will make them a

true game changer for the Northern way of life and

economic growth. It is extremely exciting to be

actively involved in this journey.

What is your vision regarding the Design and Manufacturing division of LTAA?

We are striving to become the indisputable world

leader in heavy cargo airship development,

certification and manufacturing of a new

generation of airships for isolated and harsh

weather conditions regions. We also envisage

Montreal as the world capital of airships and

Canada as the world leader in this new air cargo

transportation industry.

What do you see as your main challenges for the initial years of this program?

The technology required for the development of

our airship is constantly maturing. What we need

to do is to successfully integrate and certify it. We

have already started to recruit an initial team of

solid business leaders experienced in this kind of

development. We are recruiting engineers,

professionals and technicians with aerospace and

airship experience capable of identifying and

tackling the technical challenges ahead of us and

preparing for manufacturing this new family of

airships.

We are partnering with strong development and

industrial suppliers to minimize program and

technical risk. The fact that Zeppelin and STELIA

North America are already part of the team is very

reassuring and will contribute to also manage our

risk in developing this new technology.

As no certification requirements for our specific

category of airships exist within Transport Canada

(or anywhere else in the world, for that matter), we

have started discussions with their staff to agree

early in the process on an approach for

certification.

Marc Bourret, LTAA President

April 2016 Issue 2 Page 7

Why do you think that LTAA’s airship program has a chance to succeed now when in the last several decades, competitors did not?

The needs of Northern and Indigenous

communities in Canada are unique and extremely

urgent—from housing to fairly priced consumer

goods, and from trash removal to transporting fish

products to markets in the south. We have solid

support from the Canadian government as well as

the Quebec government to develop and operate

our airships as a solution to these urgent needs.

This puts our airship program in an exceptionally

strong position.

Will your program create aerospace jobs in the Montreal area and beyond?

A 2015 economic impact study forecast the

creation of over 1,200 direct manufacturing jobs,

totaling nearly 5,000 direct, indirect, and induced

jobs by 2029. Northern and Indigenous

communities will see growth in the GDP, jobs,

housing, and commodities. Canada’s Northern

mines—unexploited for decades due to lack of

roads—can extract hundreds of millions of dollars

in minerals while providing much-needed jobs.

LTA airships will provide diversification

opportunities from the current major OEMs like

Bombardier and Bell Helicopter Textron Canada. It

will also generate potential business spinoffs in

fields such as envelope manufacturing, vectored

thrust propulsion systems and helium

management. New jobs will be created in

engineering, manufacturing and various

professional trades. Our offices will be in Mirabel,

just outside Montreal and we have already started

recruiting and interviewing for engineering and

support personnel. We estimate LTAA

employment to be between 50 and 60 people by

end of 2016. Our partners will also be hiring more

people.

News Flash!!! The Québec Economic Plan and Budget for

2016-2017, published on March 17, 2016,

included good news for the Quebec airship

industry (meaning of course LTAA).

“Québec’s aerospace businesses are active

mostly in … commercial and business aviation,

civil helicopters, aircraft engines and flight

simulators. In order to fully leverage the sector’s

growth…, the Québec aerospace strategy will

seek to diversify its industrial sector, … by

focusing on new segments…, particularly [UAVs,

airships…].”

Funds on the order of $70 million have been

approved to support diversification into these new

sectors, focusing on innovation as an engine of

future economic growth.

In our next issue we will provide complete budget

details.

Read the full Quebec Economic Plan here.

April 2016 Issue 2 Page 8

Where Do You Park a 152 Meter Airship? LTAA’s 10-ton airships are 80 meters long, 40

meters wide, and 22 meters high. The 70-ton

model is 152 by 76 by 38. That calls for a big

hangar!

The LTAA manufacturing facility for all three

program phases will be located on approximately

150 acres of land at Mirabel Airport just outside of

Montreal. The 10-ton hangar size is estimated to be

200 meters long by 110 meters wide by 42 meters

high. In addition, the facility will include

engineering and business offices, storage space for

airship parts, tools, and hardware, gas storage

reservoirs, an outside mooring pad, a cafeteria, and

parking lot.

In the first phase of construction, the facility will

host the 10-tonne airship prototype and assembly

lines. Phase 2 accommodates production and

assembly line ramp-up. Phase 3 will host the 70-

tonne airship prototype and assembly line. The

hangar will be modular to allow for expansion as

the project expands.

The Zeppelin hangar in Friedrichshafen, Germany.

April 2016 Issue 2 Page 9

How to Load and Unload a House By now you probably know that airships are clean,

green, and cost efficient, providing much-needed

services to Canada’s Northern and Indigenous

communities. But how will they deliver cargo—

which will include entire prefabricated houses—

and pick up new shipments to take south?

Some load exchanges can be performed while the

airship is hovering—the most likely scenario given

the Arctic’s needs. Others will take place while it is

either tethered or landed.

The LTAA airships are designed to use two constant

tension winches or hoists which will properly

balance awkwardly shaped loads, placing these

precisely where they are intended to rest. In

addition, they will utilize a gantry, a rigid structure

a quarter of the length of the airship, to adjust the

longitudinal location of the hoists. A cockpit-like

control station will host all the control consoles for

all load exchange systems.

LTA airships will carry heavy trucks and other mining equipment to valuable ore and mineral deposits in the North.

Northern and Indigenous communities suffer from a severe shortage of decent housing. Airships will carry entire prefabricated homes to these areas.

April 2016 Issue 2 Page 10

News Links News Links: Why we need LTAA Airships now Airships Could Rescue First Nations

Mild Weather Threatens Ice Road Safety, says MKO Grand Chief

60 ton Airship to be Added to China's 'Golden Eagle' Fleet

Mining in Canada's North Expected to Nearly Double by 2020

2016 Federal Budget to Include Billions of Dollars in Funding for First Nations

For further information about the LTAA

program, contact:

Francine Bourget

Vice President Human Capital and

Communications

Francine.bourget@lta-aerostructures.ca

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