WATCH: Two BC aircraft manufacturers are cashing in on big contracts with China.
Viking Air, based out of North Saanich, is partnering with Reignwood Aviation out of China to manufacture 50 Twin Otter airplanes over five years.
At $7 million apiece, the initial sale value is $350 million. But that could just be a starting point.
“You can do the math,” said Viking Air’s Dominique Spragg. “If you take 500 airplanes over 20 years, it’s a multi-billion dollar opportunity.”
The deal became possible after Beijing relaxed its regulations on airspace below 3,000 metres, right where the Twin Otter flies. Paired with the recent Bilateral Aviation Technical Arrangement between Canada and China, the Chinese market appears to be opening up.
Employees hope the new deal can provide a little job security. Market conditions forced Viking Air to lay off more than 100 workers last April.
While there’s no guarantee this latest contract will bring back those jobs, it could set the stage for growth.
“As the demand manifests itself, then we’ll do appropriate things in terms of ramping up the business,” said Spragg.
-with files from Kylie Stanton
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