MergeGlobal,   a   consulting   practice   specializing   in   developing   business   strategy   for   companies in    the    Global    Transportation    and    Logistics    industries,    forecasted    in    2001    that    if    currently available   there   would   be   a   need   for   200   heavy   lift   air   vehicles.   In   late   2005,   Millennium   Airship Inc.   produced   a   marketing   study   for   Lockheed   Martin's   Advanced   Programs   division.   The   study covered   Canada,   Alaskan,   and   Russian   documenting   the   problems   with   today's   transportation systems   in   reaching   their   northern   areas,   which   contain   huge   amounts   of   oil,   minerals,   timber and   other   resources.   The   ability   to   reach   now   unreachable   oil   deposits   alone   should   make   a hybrid   vehicle   a   necessity.   If   these   oil   fields   were   in   operation,   Canada   and   the   United   States would   not   have   to   depend   on   oil   from   off   shore   sources.   To   satisfy   known   requirements,   the study   indicates   that   on   the   low   side   they   would   need   285   to   1380   equivalent   Fifty   (50)   Ton   lift air ships.
The Asian study
   presents   the   same   result,   but   for   different   reasons.   The   Chinese   economy   is growing   about   7%   per   year   and   the   need   for   the   movement   of   both   raw   materials   and   finished goods   remains   high.   The   customer's   goal   is   to   double   the   Gross   Domestic   Product   (GDP)   by 2020.   To   accomplish   this   goal,   the   transportation   system   will   have   to   keep   pace.   The   customer is   spending   large   sums   on   highways,   railroads,   and   new,   smaller   airports   in   the   outer   regions. But   there   will   be   a   limitation   on   the   operating   of   large   cargo   air   vehicle,   because   of   the   runway requirements.   To   satisfy   both   the   mainland   and   international   needs,   there   will   be   a   requirement for   heavy   lift   air   vehicles.   In   the   long   term,   air   ships   will   be   needed   to   fulfill   the   same requirement   as   Canada   in   extracting   oil   and   minerals   from   the   far   north,   plus   the   planned settlement   and   development   of   the   western   frontier.   Although   the   number   of   air   ships   required is   not   fully   quantified,   it   would   probably   be   not   unlike   the   Canadian   northern   and   Russian   north requirements.
       These   market   studies   fully   support   the   immediate   need   for   large   capacity   carrying   hybrid heavy-lift   air   vehicles.   The   next   phase   should   include   documenting   the   cargo   types,   distances to   travel,   number   of   specific   lifting   capacity   vehicles,   the   various   financial   arrangements necessary   to   support   this   program,   the   specific   costs   and   revenues,   and   the   regulations   and country   specific   requirements   needed   to   be   satisfied.   The   need   for   a   hybrid   air   vehicle   has been   documented   to   satisfy   known   requirements.   It   is   also   known   that   such   an   air   vehicle   will spurn many new areas of transportation not yet defined.
       Taken   together,   these   factors   and   results   portray   a   demanding   customer   base   for   intra   and intercontinental    cargo    transportation.    This    transportation    system    must    have    high    and consistent   levels   of   on-time   delivery   and   lower   costs   that   are   routinely   required   to   enable today's   and   tomorrows   sophisticated   global   supply   chains   to   operate   effectively   in   high   tech, perishables,   strategic   resources   and   other   key   product   segments.   In   order   to   capitalize   on   the immediate   need   for   hybrid   heavy   lift   air   vehicle,   the   furtherance   of   the   market   studies,   as   well as   initiating   the   commercial   design   effort   and   the   planning   for   the   manufacture,   delivery, operations, maintenance and overhaul of these air vehicles should commence immediately.
An Inventory of Possibilities: The Potential for Hybrid Air vehicle in Canada
Introduction
       Canada   is   an   immense   country   with   large   tracts   of   inaccessible   remote   wilderness.   Lack   of accessibility   across   long   distances   has   preserved   its   natural   beauty,   but   inhibits   most   resource development.   The   construction   of   single   purpose,   low   traffic   density   roads   through   pristine landscapes   is   challenging   from   a   cost   prospective,   while   the   barriers   to   environmental   approval may be insurmountable.
       Hybrid   air   vehicles   represent   a   unique   solution   to   many   of   the   transportation   challenges affecting     Canadian     economic     and     northern     development.     In     some     cases     commercial development   is   simply   impossible   without   a   commercial   means   of   transporting   fuel   and   mine supplies    in,    and    ore    concentrates    out.    Further,    any    transportation    solution    must    be environmentally   respectful.   Typically,   single   purpose   resource   development   roads   that   transect environmental   sensitive   lands   are   not   a   very   palatable   solution.   Traditional   lifestyles   are   being challenged    by    the    encroachment    of    southern    ideas    and    rapid    changes    to    social    and environmental norms.
       HHLAV   vehicles   represent   the   most   logical   transportation   technology   that   has   any   realistic chance   of   unlocking   the   riches   of   the   north   and   providing   a   sustainable   foundation   from   which northern    people    can    enter    a    modern    economic    world.    In    some    cases,    conventional transportation   options,   such   as   winter   roads,   can   provide   a   stop-gap,   but   climate   change   is challenging   their   use.   Moreover,   these   modes   are   often   costly,   environmentally   disruptive   as well   as   unreliable.   For   example,   the   billion   dollar   diamond   mines   in   the   North   West   Territories depend   on   a   twelve   week   winter   road   season   to   move   their   entire   annual   fuel   and   bulk   mine supplies.   The   consequences   and   impacts   of   not   being   able   to   re-supply   the   mine   during   this critical period could be financially catastrophic.
       The   hardships   caused   to   remote   communities   when   they   are   not   able   to   obtain   necessary construction   materials   and   heating   fuel   supplies   are   hard   to   imagine.   In   the   south,   a   delay   by the   builder   might   mean   a   month   before   a   new   home   buyer   can   take   possession.   In   the   north,   in what   is   already   a   housing   crisis   situation,   this   means   a   whole   year's   wait.   Consider   the aboriginal   land   claim   issues   confronting   energy   and   mineral   developers.   In   some   cases,   it   is simply   negotiating   an   impact-benefit   to   gain   access   to   a   right   of   way   through   their   land. However,   traditional   peoples   may   not   be   willing,   at   any   price,   to   grant   access,   if   roads   are   the only   option.   If   a   commercially   viable   means   to   fly   over   this   same   land   and   leave   it   undisturbed were   available,   the   problem   would   diminish   greatly.   Hybrid   air   vehicle   provide   an   elegant solution   to   many   of   the   challenges   listed   above   and   the   best   hope   for   allowing   the   North   to reach its economic potential.
       Historically   roads   have   been   viewed   as   a   public   good   and   paid   for   by   governments.   More recently,   industries   are   being   asked   to   build   private   roads   because   the   government   is   no   longer willing    to    shoulder    this    responsibility.    The    result    often    is    that    the    resource    remains undeveloped   because   of   this   stalemate   on   road   financing.   Roads   and   railways   have   been   the only   viable   technologies   for   land   based   bulk   transportation.   The   advent   of   heavy   lift   hybrid   air vehicle   brings   a   third   option.   More   importantly,   in   the   case   of   this   new   hybrid   technology,   the vehicle   is   the   infrastructure.   Problems   of   ground   disturbance   and   infrastructure   financing disappear   because   hybrids   can   carry   payloads   large   enough   to   offer   an   economically   viable option to conventional transportation.
       This   report   examines   the   major   resource   sectors   in   Canada   and   presents   an   inventory   of possible   transportation   applications   where   hybrid   air   vehicle   can   be   the   enabling   technology that   allows   specific   resource   development   projects   to   proceed.   Further   the   analysis   also explores   other   social   applications   such   as   re-supply   to   northern   remote   community   and emergency   response,   such   as   forest   fires.   In   the   conclusion,   the   applications   are   summarized and some opportunity rankings are provided.
Perspective Setting
       Former   Prime   Minister   Mackenzie   King   encapsulated   the   economic   problem   of   providing infrastructure   to   develop   the   remote   parts   of   Canada.   If   some   countries   have   too   much   history, we   have   too   much   geography.   The   Canadian   population   has   always   been   too   small,   relative   to the   financial   demand,   to   construct   and   maintain   all-weather   roads   or   railway   lines   to   most parts   of   the   country.   Moreover,   the   construction   of   surface   infrastructure   is   difficult   in   Canada's northern   regions.   The   rugged   terrain,   environmental   concerns   and   the   complications   posed   by the need to deal with muskeg and permafrost make road construction very expensive.
       Transportation   challenges   discourage   investment   in   industry,   limit   employment   prospects   and increase   the   cost   of   living.   Without   an   efficient   and   economic   means   of   transport,   the   natural resource   opportunities   in   the   North   remain   unreachable.   High   freight   rates   inflate   the   cost   of inputs   and   limit   the   selection   of   consumer   goods   available.   Often,   Canadians   living   in   the   North are   cut   off   from   public   services   that   are   taken   for   granted   in   the   rest   of   the   country.   These socio-economic   disparities   are   greatest   in   the   remote   communities   that   have   no   all-weather road access.
       The   North   is   served   best   by   air   transport.   The   distances   are   vast,   the   infrastructure   costs   of air   transport   are   low,   and   the   service   is   available   year   round.   The   technological   challenge   is   the volume   of   goods   that   can   be   moved   economically   by   small   airplanes.   If   the   operating   costs   of air   transport   could   be   reduced,   the   socio-economic   benefits   would   be   significant.   It   is   for   this reason   that   the   development   of   a   new   generation   of   cargo   carrying   hybrid   air   vehicle   presents such an appealing opportunity for the North.
       The   following   inventory   of   possibilities   is   explored   and   specific   projects   are   presented   in   more detail.   It   is   equally   important   to   recognize   that   these   projects   are   the   ones   that   are   known today.   As   with   every   major   technology   innovation,   successful   introduction   represents   only   a starting   point.   Technology   is   a   catalyst   for   evolving   further   applications   once   the   potential becomes   understood.   Therefore,   it   is   reasonable   to   expect   that   hybrid   air   vehicle   will   ignite   new exploration   and   development   as   it   unlocks   otherwise   inaccessible   areas   by   providing   a   new viable option.
Market Prospects
    The   potential   market   for   hybrid   air   vehicle   in   Canada   is   difficult   to   estimate   because   the reduction   in   transportation   costs   and   ability   to   access   new   areas   will   create   its   own   dynamic   and generate   new   demand.   In   addition,   the   size   of   hybrid   air   vehicle   will   have   a   bearing   on   their applications.   Smaller   hybrids   will   be   used   for   short   haul   markets,   while   larger   hybrids   will   be able   to   undertake   long   haul   missions.   Similarly,   larger   hybrids   will   be   able   to   offer   the   capacity to   open   larger   scale   mining   operations   that   the   smaller   hybrids   cannot   serve.   In   order   to develop an estimate of demand, a standardized unit is needed.
Skyfreighter Canada Ltd
      MergeGlobal,     a     consulting     practice     specializing     in developing   business   strategy   for   companies   in   the   Global Transportation   and   Logistics   industries,   forecasted   in   2001 that   if   currently   available   there   would   be   a   need   for   200 heavy   lift   air   vehicles.   In   late   2005,   Millennium   Airship   Inc. produced     a     marketing     study     for     Lockheed     Martin's Advanced   Programs   division.   The   study   covered   Canada, Alaskan,    and    Russian    documenting    the    problems    with today's   transportation   systems   in   reaching   their   northern areas,   which   contain   huge   amounts   of   oil,   minerals,   timber and   other   resources.   The   ability   to   reach   now   unreachable oil   deposits   alone   should   make   a   hybrid   vehicle   a   necessity. If   these   oil   fields   were   in   operation,   Canada   and   the   United States   would   not   have   to   depend   on   oil   from   off   shore sources.   To   satisfy   known   requirements,   the   study   indicates that    on    the    low    side    they    would    need    285    to    1380 equivalent Fifty (50) Ton lift air ships.
The Asian study
   presents   the   same   result,   but   for   different reasons.   The   Chinese   economy   is   growing   about   7%   per year   and   the   need   for   the   movement   of   both   raw   materials and   finished   goods   remains   high.   The   customer's   goal   is   to double    the    Gross    Domestic    Product    (GDP)    by    2020.    To accomplish   this   goal,   the   transportation   system   will   have   to keep    pace.    The    customer    is    spending    large    sums    on highways,   railroads,   and   new,   smaller   airports   in   the   outer regions.   But   there   will   be   a   limitation   on   the   operating   of large     cargo     air     vehicle,     because     of     the     runway requirements.      To      satisfy      both      the      mainland      and international   needs,   there   will   be   a   requirement   for   heavy lift   air   vehicles.   In   the   long   term,   air   ships   will   be   needed   to fulfill   the   same   requirement   as   Canada   in   extracting   oil   and minerals   from   the   far   north,   plus   the   planned   settlement and    development    of    the    western    frontier.    Although    the number   of   air   ships   required   is   not   fully   quantified,   it   would probably   be   not   unlike   the   Canadian   northern   and   Russian north requirements.
       These   market   studies   fully   support   the   immediate   need for   large   capacity   carrying   hybrid   heavy-lift   air   vehicles.   The next   phase   should   include   documenting   the   cargo   types, distances    to    travel,    number    of    specific    lifting    capacity vehicles,   the   various   financial   arrangements   necessary   to support   this   program,   the   specific   costs   and   revenues,   and the   regulations   and   country   specific   requirements   needed   to be   satisfied.   The   need   for   a   hybrid   air   vehicle   has   been documented    to    satisfy    known    requirements.    It    is    also known   that   such   an   air   vehicle   will   spurn   many   new   areas of transportation not yet defined.
         Taken    together,    these    factors    and    results    portray    a demanding    customer    base    for    intra    and    intercontinental cargo   transportation.   This   transportation   system   must   have high   and   consistent   levels   of   on-time   delivery   and   lower costs    that    are    routinely    required    to    enable    today's    and tomorrows   sophisticated   global   supply   chains   to   operate effectively   in   high   tech,   perishables,   strategic   resources   and other   key   product   segments.   In   order   to   capitalize   on   the immediate    need    for    hybrid    heavy    lift    air    vehicle,    the furtherance   of   the   market   studies,   as   well   as   initiating   the commercial     design     effort     and     the     planning     for     the manufacture,     delivery,     operations,     maintenance     and overhaul     of     these     air     vehicles     should     commence immediately.
An   Inventory   of   Possibilities:   The   Potential   for   Hybrid Air vehicle in Canada
Introduction
         Canada    is    an    immense    country    with    large    tracts    of inaccessible   remote   wilderness.   Lack   of   accessibility   across long   distances   has   preserved   its   natural   beauty,   but   inhibits most    resource    development.    The    construction    of    single purpose,     low     traffic     density     roads     through     pristine landscapes   is   challenging   from   a   cost   prospective,   while   the barriers to environmental approval may be insurmountable.
       Hybrid   air   vehicles   represent   a   unique   solution   to   many   of the   transportation   challenges   affecting   Canadian   economic and    northern    development.    In    some    cases    commercial development    is    simply    impossible    without    a    commercial means   of   transporting   fuel   and   mine   supplies   in,   and   ore concentrates   out.   Further,   any   transportation   solution   must be    environmentally    respectful.    Typically,    single    purpose resource   development   roads   that   transect   environmental sensitive   lands   are   not   a   very   palatable   solution.   Traditional lifestyles    are    being    challenged    by    the    encroachment    of southern     ideas     and     rapid     changes     to     social     and environmental norms.
       HHLAV   vehicles   represent   the   most   logical   transportation technology   that   has   any   realistic   chance   of   unlocking   the riches   of   the   north   and   providing   a   sustainable   foundation from   which   northern   people   can   enter   a   modern   economic world.   In   some   cases,   conventional   transportation   options, such   as   winter   roads,   can   provide   a   stop-gap,   but   climate change   is   challenging   their   use.   Moreover,   these   modes   are often     costly,     environmentally     disruptive     as     well     as unreliable.   For   example,   the   billion   dollar   diamond   mines   in the   North   West   Territories   depend   on   a   twelve   week   winter road   season   to   move   their   entire   annual   fuel   and   bulk   mine supplies.   The   consequences   and   impacts   of   not   being   able to   re-supply   the   mine   during   this   critical   period   could   be financially catastrophic.
       The   hardships   caused   to   remote   communities   when   they are   not   able   to   obtain   necessary   construction   materials   and heating   fuel   supplies   are   hard   to   imagine.   In   the   south,   a delay   by   the   builder   might   mean   a   month   before   a   new home   buyer   can   take   possession.   In   the   north,   in   what   is already   a   housing   crisis   situation,   this   means   a   whole   year's wait.   Consider   the   aboriginal   land   claim   issues   confronting energy   and   mineral   developers.   In   some   cases,   it   is   simply negotiating   an   impact-benefit   to   gain   access   to   a   right   of way   through   their   land.   However,   traditional   peoples   may not   be   willing,   at   any   price,   to   grant   access,   if   roads   are   the only   option.   If   a   commercially   viable   means   to   fly   over   this same   land   and   leave   it   undisturbed   were   available,   the problem   would   diminish   greatly.   Hybrid   air   vehicle   provide an   elegant   solution   to   many   of   the   challenges   listed   above and    the    best    hope    for    allowing    the    North    to    reach    its economic potential.
       Historically   roads   have   been   viewed   as   a   public   good   and paid    for    by    governments.    More    recently,    industries    are being   asked   to   build   private   roads   because   the   government is   no   longer   willing   to   shoulder   this   responsibility.   The   result often   is   that   the   resource   remains   undeveloped   because   of this   stalemate   on   road   financing.   Roads   and   railways   have been    the    only    viable    technologies    for    land    based    bulk transportation.   The   advent   of   heavy   lift   hybrid   air   vehicle brings   a   third   option.   More   importantly,   in   the   case   of   this new   hybrid   technology,   the   vehicle   is   the   infrastructure. Problems   of   ground   disturbance   and   infrastructure   financing disappear   because   hybrids   can   carry   payloads   large   enough to    offer    an    economically    viable    option    to    conventional transportation.
         This    report    examines    the    major    resource    sectors    in Canada   and   presents   an   inventory   of   possible   transportation applications   where   hybrid   air   vehicle   can   be   the   enabling technology     that     allows     specific     resource     development projects   to   proceed.   Further   the   analysis   also   explores   other social   applications   such   as   re-supply   to   northern   remote community   and   emergency   response,   such   as   forest   fires. In    the    conclusion,    the    applications    are    summarized    and some opportunity rankings are provided.
Perspective Setting
       Former   Prime   Minister   Mackenzie   King   encapsulated   the economic   problem   of   providing   infrastructure   to   develop   the remote   parts   of   Canada.   If   some   countries   have   too   much history,    we    have    too    much    geography.    The    Canadian population    has    always    been    too    small,    relative    to    the financial    demand,    to    construct    and    maintain    all-weather roads    or    railway    lines    to    most    parts    of    the    country. Moreover,    the    construction    of    surface    infrastructure    is difficult   in   Canada's   northern   regions.   The   rugged   terrain, environmental   concerns   and   the   complications   posed   by   the need    to    deal    with    muskeg    and    permafrost    make    road construction very expensive.
         Transportation    challenges    discourage    investment    in industry,   limit   employment   prospects   and   increase   the   cost of    living.    Without    an    efficient    and    economic    means    of transport,   the   natural   resource   opportunities   in   the   North remain   unreachable.   High   freight   rates   inflate   the   cost   of inputs   and   limit   the   selection   of   consumer   goods   available. Often,   Canadians   living   in   the   North   are   cut   off   from   public services    that    are    taken    for    granted    in    the    rest    of    the country.   These   socio-economic   disparities   are   greatest   in the    remote    communities    that    have    no    all-weather    road access.
       The   North   is   served   best   by   air   transport.   The   distances are   vast,   the   infrastructure   costs   of   air   transport   are   low, and   the   service   is   available   year   round.   The   technological challenge    is    the    volume    of    goods    that    can    be    moved economically   by   small   airplanes.   If   the   operating   costs   of   air transport    could    be    reduced,    the    socio-economic    benefits would    be    significant.    It    is    for    this    reason    that    the development   of   a   new   generation   of   cargo   carrying   hybrid air   vehicle   presents   such   an   appealing   opportunity   for   the North.
       The   following   inventory   of   possibilities   is   explored   and specific   projects   are   presented   in   more   detail.   It   is   equally important   to   recognize   that   these   projects   are   the   ones that    are    known    today.    As    with    every    major    technology innovation,     successful     introduction     represents     only     a starting   point.   Technology   is   a   catalyst   for   evolving   further applications     once     the     potential     becomes     understood. Therefore,   it   is   reasonable   to   expect   that   hybrid   air   vehicle will   ignite   new   exploration   and   development   as   it   unlocks otherwise    inaccessible    areas    by    providing    a    new    viable option.
Market Prospects
    The   potential   market   for   hybrid   air   vehicle   in   Canada   is difficult   to   estimate   because   the   reduction   in   transportation costs   and   ability   to   access   new   areas   will   create   its   own dynamic   and   generate   new   demand.   In   addition,   the   size   of hybrid   air   vehicle   will   have   a   bearing   on   their   applications. Smaller   hybrids   will   be   used   for   short   haul   markets,   while larger   hybrids   will   be   able   to   undertake   long   haul   missions. Similarly,   larger   hybrids   will   be   able   to   offer   the   capacity   to open   larger   scale   mining   operations   that   the   smaller   hybrids cannot   serve.   In   order   to   develop   an   estimate   of   demand,   a standardized unit is needed.
Skyfreighter Canada Ltd