A key player in Alberta's aviation sector is caught in a holding pattern.

Awaiting a crucial decision on a federal government contract related to the bread and butter of its business - the engineering and maintenance, repair and overhaul (MRO) of the C-130 Hercules - Spar Aerospace Ltd. could either be flying high or facing turbulent times depending on a pronouncement by Ottawa expected sometime this month.

"That is a very critical contract for us," says president Patrice Pelletier, who took over the helm of Spar Aerospace Ltd. in May this year. "Also in terms of our plan to grow the business, it brings the credibility required in that field. We see this contract as essential, it's critical to our future success."

That success, says Pelletier, could lead to a brighter future for the province's aerospace industry, which received a boost at the end of July when Spar, a division of New York City-based L-3 Communications, announced that it was moving its corporate headquarters from Mississauga, Ont., to Edmonton, where the bulk of its staff was already located.

John Ulan/Epic Photography
Maintaining and overhauling the C-130 Hercules is the key mission of Spar Aerospace and its president, Patrice Pelletier.

"We represent $1 billion US to this province over the next five years. This is what we will bring in, in terms of revenue," says Pelletier, who foresees the number of engineers at the company's Edmonton operations eventually doubling to 300 from 150 if all goes according to plan.

Pelletier also talks of adding another platform for Spar to work on - a new search-and-rescue aircraft - and possibly others to take advantage of the skills and expertise the company has developed over the years. There would also be more partnerships with companies in foreign countries, enabling Spar to even further expand its client base.

But if it doesn't get the contract, Pelletier says, "we will have too much space, we will have too much of everything."

Spar has been providing C-130 fleet- maintenance support to Canada's Department of National Defence since 1960, when Canada purchased its first Hercules, a military transport aircraft manufactured by Lockheed Martin.

Canada is the company's anchor customer. Further, Canada has one of the "largest (Hercules) fleets in the world - other than the United States and Saudi Arabia - and is No. 1 in terms of hours flown by that fleet," adds Pelletier.

"It will bring a challenge to Spar (should it not be awarded the contract), an important one, in terms of its relations with future customers," says Pelletier, because of the close relationship developed over the years with the Canadian Forces' fleet - work that is similar to what other countries would require. "There is an obvious credibility issue, plus there is an economic impact."

In Ottawa, a spokesperson for Deputy Prime Minister Anne McLellan, the MP for Edmonton Centre, says McLellan is well aware of the importance of the contract to Spar and for Alberta.

"It means highly skilled work and the spinoffs are important, and she has met with the president of Spar and is aware of the vision they have for Alberta," says Alex Swann, McLellan's director of communications.

But when it comes to the contract process, Swann says, "it's not something that as a minister that she can get involved in. It has to be a fair and competitive process."

Meanwhile, Alberta Economic Development Minister Clint Dunford, in a provided statement, is optimistic Spar will be cleared for takeoff in order to continue the work the company has done in the past.

"Alberta has a strong and growing aerospace industry thanks to the expertise and innovation shown by companies such as Spar," says Dunford.

"They are a pillar of Alberta's aerospace industry and we value greatly the huge contribution they make to the Alberta economy and specifically the Edmonton economy."

According to Alberta Economic Development, that impact includes contributing $60 million annually into Edmonton's economy. Spar is also an important tenant at both the Edmonton International Airport - its single largest customer - and the Edmonton City Centre Airport.

Meanwhile, Spar has already landed a $20-million US C-130 Hercules maintenance contract from the U.S. Coast Guard.

The company will provide depot-level aircraft maintenance services for up to eight U.S. Coast Guard C-130H Model Hercules aircraft.

Work on the firm-fixed price contract, which was announced last Friday after a competitive bid process, will take place at the Edmonton facility.

(Laura Severs can be reached at laura@businessedge.ca)