In terms of industry, Canada had just finished a period of unparalleled growth. Plants and factories had sprung up all over the country during the course of the war. Government-owned Victory Aircraft in Malton, just outside Toronto, later bought by Hawker-Siddeley of Britain and renamed A. V. Roe Canada, had done an excellent job of turning out large numbers of Lancasters during the war for the R.A.F and RCAF. They were rumoured to be among the best Lancasters that flew.
Avro Canada was in an excellent position to hire the best engineering minds in the world, as the end of the war released huge numbers of engineers onto the international job market. Avro’s first project was to be a jet transport aircraft for Trans Canada Airlines, later known as Air Canada. In April 1950, eight years before the inception of the first American commercial jet airplane, the Boeing 707, the Avro Jetliner carried the world's first jet airmail, from Toronto to New York, where its crew was welcomed with a ticker tape parade through the streets of Manhattan.
The trip was made in half the flight time of a conventional airplane. American commercial airlines like Hughes Aircraft expressed interest, as did the USAF.
Unfortunately, the Avro Jetliner would never taste success. Instead, it was destined to succumb, in February 1957, to the same bitter welder’s arc that awaited the Arrow. In 1950, when the Korean War broke out, and C.D Howe, the influential Liberal Minister of Munitions and Supply, and who had contributed so much to the industrialization of Canada, ordered Avro to suspend the Jetliner. Only one aircraft was ever completed.
Instead, Howe proclaimed, Avro was to concentrate fully on producing the CF-100 Canuck jet fighter, designed to protect the vast northern wastes of Canada from the advance of Soviet nuke-carrying long range, high-altitude bombers coming in over the Arctic icecap. The CF-100 was a twin-engined, two-seat, high-altitude, all-weather fighter with an Orenda engine, which was also designed and built by Avro Canada’s engine department. In the end, the CF-100 was to be the only Avro Canada aircraft to go into full production and enter active service, achieving a service life of thirty years. In total, 692 Canucks were built, including 53 sold to Belgium.
Despite the relative success of the CF-100, all was not well in the RCAF. Even before the CF-100 went into service, the RCAF was seeking a way to replace it. The reason was the air superiority of the Soviet bombers that would ostensibly carry the nuclear warheads over North America. The Canuck just wasn’t fast enough.
Prior to 1953, Crawford Gordon became the president of A.V. Roe, Canada, Ltd. and shortly after, Avro Canada purchased Canadian Car & Foundry, Co., Ltd.; Dominion Steel & Coal Corp. as well as Canadian Steel Improvements, Ltd.