Light aircraft, heavy potential.

• Author: Louiseize, Kelly
• Position: NEWS - Canadian Home Rotors (CHR - SAFARI kit - Ear Falls plant - Cover Story

Successful negotiations with foreign distributors will land a northwestern helicopter kit company in the black with a record year in 2005.

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After suffering like many aircraft manufacturing businesses after the events of Sept. 11, 2001, Canadian Home Rotors (CHR) Inc., a build-your-own helicopter kit business, is experiencing a turnaround year.

"If this even gets halfway serious, this will be an excellent recovery year for us," says Gary Assels, general manager and shareholder.

In fact, it will be the best year any of the six shareholders have experienced, since opening 26 years ago in Ear Falls. The company has historically never sold more than about 20 helicopter kits a year, but there is talk of doubling that number in 2005.

At this April's Florida air show, Assels sold three SAFARI helicopter kits averaging $85,000 US a piece. Three multiple orders are being negotiated and 12 single orders are in discussion. Foreign distributors have approached Assels to ask if they could become the link between the consumer and CHR.

From South and Central America as well as the Caribbean, China, and Quebec province, businesses want to buy the kit, assemble it, provide flight training and sell it as one value-added product. If this happens, multiple orders will be flowing in. However exciting the situation is, Assels is not getting carried away with emotion. He wants to see money in the bank by fall before any parties are planned.

The world markets can absorb 200 to 300 helicopter kits a year, he says.

China has a strong demand for aviation technology and CHR intends to stay ahead of the reverse engineering challenges from potential competitors by constantly improving their product.

The shareholders are not ostentatious. They don't drive flashy luxury sedans, and the offices are far from plush. But lean as they are, the terrorist attacks of 2001 hurt.

Airports and airline security became tighter and passenger numbers declined. Layoffs were inevitable.

"Eventually it caught us too, but we just keep things skinny," he says.

International operation

The Ear Falls plant, located approximately 170 kilometres northeast of Kenora, consistently staffs three to five employees who concentrate on equipment welding. Computer Numerically Controlled milling machines run by...