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### Viewing cable 06OTTAWA2555, TRANSBORDER USE OF VERY LIGHT JETS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06OTTAWA2555 | 2006-08-25 22:10 | 2011-04-28 00:12 | UNCLASSIFIED | Embassy Ottawa

`

    VZCZCXRO1770
    RR RUEHGA RUEHHA RUEHQU RUEHVC
    DE RUEHOT #2555/01 2372202
    ZNR UUUUU ZZH
    R 252202Z AUG 06
    FM AMEMBASSY OTTAWA
    TO RUEHC/SECSTATE WASHDC 3584
    INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE
    RULSDMK/DEPT OF TRANSPORTATION WASHDC
    RUEAHLC/DEPT OF HOMELAND SECURITY WASHDC
    RUEANHA/FAA WASHDC

` `

    UNCLAS SECTION 01 OF 02 OTTAWA 002555

    SIPDIS

    SIPDIS

    STATE FOR WHA/CAN AND EB/TRA
    DOT FOR INTERNATIONAL AFFAIRS (CARAZZO)
    FAA FOR INTERNATIONAL AFFAIRS (FRANCESCHI)
    DHS/TSA FOR SUSAN WILLIAMS
    DHS FOR CBP

    E.O. 12958: N/A
    TAGS: CA EAIR
    SUBJECT: TRANSBORDER USE OF VERY LIGHT JETS

     ¶1. Summary:  For frequent business travelers, Very Light
    Jets (VLJs) offer important advantages, including less time
    spent on the ground before flights, direct flights that avoid
    multiple legs that often occur under the hub-and-spoke model,
    and the ability to land on shorter runways than other jets
    while flying faster than propeller planes of equal capacity.
    These developments stand to have important consequences on
    air travel, making aircraft available to a wider (but still
    well-to-do) population, increasing the number of planes in
    the air at any one time, and promoting the use of secondary
    and small airports.  The VLJs' impact on transborder travel
    may be even more pronounced as inbound planes from Canada
    could increase traffic to the international airports near the
    border, thus putting additional strain on CBP personnel who
    must travel to the smaller airports to conduct inspections.
    End Summary.

    ¶2.  (U) On a recent tour of the Pratt and Whitney Canada
    Headquarters with Montreal POL/ECON officer and Embassy
    Ottawa ECON intern, the Vice President for Government
    Affairs, Richard Bertrand, described the VLJ market  as
    "exploding".  At the factory, the firm is devoting several of
    its assembly groups to the construction of CPW 600 engines,
    destined for new VLJs from Cessna (US), Eclipse (US), and
    Embraer (Brazil).  In the short term there appears to be a
    large demand for VLJs.  Reports in the industry journal
    Aviation Week note that Eclipse alone has already received
    more than 2400 orders for its VLJ, the Eclipse 500, and that
    the FAA  projects deliveries of 4950 VLJs of all types
    between now and 2017.  Some air taxi services are already
    offering VLJ service,  suggesting an industry move away from
    slower propeller planes.  The VLJs are expected to cost
    significantly less than previous jets.  For example, the
    estimated cost of the Eclipse is  $1.48 million, which is
    cheaper than Light Jets, at a range of $3 million to $8
    million, and other traditional business jets that can cost
    tens of millions of dollars.  The lower price has been an
    incentive for air taxi services to start buying VLJs to
    replace their older, slower propeller driven planes.  For the
    same reasons of lower cost and faster speed VLJs are also
    attracting affluent private pilots.

    ¶3.  (U) According to the Air Transport Association of Canada
    (which represents scheduled carriers and sees the VLJ
    phenomenon as an emerging form of competition),  VLJs are
    being marketed to elite business travelers, with the appeal
    of shorter lines at check-in counters and security
    checkpoints.  Additionally, personal VLJs will provide direct
    service to airports that may not have any direct scheduled
    airline service or have limited flight availability.  VLJ
    travelers can avoid stops at legacy carrier hubs and instead
    fly straight to their destinations at times convenient for
    them.  To the benefit of business travelers and current
    propeller aircraft operators, the VLJs are being certified to
    fly at 0.7 Mach, which is significantly faster than prop
    planes.  Finally, the VLJs open up many smaller airports
    because the aircraft can safely and legally land on runways
    as short as 3,000 feet, thus enabling pilots to operate from
    much less crowded airports and/or  at airports closer to
    their travelers' destinations.

    ¶4.  (U) The increased use of VLJs could cause  additional
    Q4.  (U) The increased use of VLJs could cause  additional
    challenges for air traffic control, pilots, airport
    management, and customs services. This new type of jet will
    add more planes to the sky, making the sky over major
    metropolitan areas even busier.  Because these light aircraft
    weigh less than 10,000 pounds, additional time will be needed
    before final approach due to the potential of wake
    turbulence.  While VLJs are able to land at airports with
    shorter runways, they can only enter the U.S. from other
    countries legally at designated airports, possibly limiting
    VLJ routes and markets from abroad.

    ¶5.  (U) Additional VLJ traffic could also strain the current
    system of customs and border protection along certain
    transborder routes.  In the case of travel between the U.S.
    and Canada, this may lead to additional flights in and out of
    the 39 American international airports near the border with
    Canada.  All of these airports carry the designation of
    "International Airport", and as Embassy Ottawa CBP Attach
    elaborated, whenever an aircraft arrives from abroad at a
    designated International Airport, customs inspectors must be
    available to process the passengers and inspect the aircraft.
     For the larger airports, like O'Hare, the impact of these

    OTTAWA 00002555  002 OF 002

    new jets may be negligible. At smaller airports such as
    Ogdensburg, NY, however, the impact on CBP personnel may be
    more significant, particularly if the number of VLJs were to
    rise suddenly, potentially displacing CBP personnel away from
    their principal land crossing duty stations to the airports
    for longer periods of time, to inspect the additional
    aircraft and passengers.

    ¶6.  (U) The Canadian Border Services Agency (CBSA) would face
    similar understaffing, though perhaps to a lesser degree
    overall.  Canada has a limited number of airports with access
    to customs known as Airports of Entry (AOEs).  Similar to
    some smaller American international airports, there are some
    small AOEs where Canadian CBSA staff drive from other
    facilities to conduct inspections.  At these AOE locations,
    CBSA would encounter similar personnel and time constraints,
    as the U.S. CBP would have to confront.  However, AOEs,
    unlike American international airports, are not required to
    be open to foreign traffic at all times.  According to the
    Canadian Airports Council, only 22 of the 118 AOEs are open
    24/7.  Thus, associated CBSA costs and overtime would likely
    be more limited.

    ¶7. CBSA also has a program called CANPASS Private Aircraft,
    which expedites the inspection process for pre-approved,
    low-risk travelers.  With this program, Canadian and American
    citizens can undergo a security check and receive a five-year
    CANPASS, which allows them to travel into Canada not only
    through AOEs, but also at a number of other small airports
    specifically designated by CBSA.

    ¶8. Comment: Aircraft manufacturers appear enthusiastic about
    producing VLJs  because of the apparent comparative
    advantages over current commercial jet travel such as
    additional airport and destination access, fewer costly
    delays associated with overcrowded, hub-and-spoke large
    airports, and the VLJ's cheaper production price tag. It is
    too early to tell whether the industry's optimism and
    consumer demand in VLJs will be sustained over the long term.
     However, as the 2400 orders for the Eclipse 500, along with
    hundreds of orders for other companies' VLJs, are assembled
    and put into the air, their growing popularity is likely to
    impact international airports along the U.S.-Canada border,
    especially the CBP's ability to staff and conduct additional
    inspections adequately at the airports while still
    maintaining the same degree of CBP coverage and vigilance at
    land and water border crossings. End comment.

    ¶9. Embassy Ottawa Economics section intern Andrew Levin
    researched and drafted this message.

    Visit Canada's Classified Web Site at
    http://www.state.sgov.gov/p/wha/ottawa

    DICKSON

`