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        Training Pipeline




        Canadian training solutions provider CAE, is faced with a problem of plenty

        aLReaDy  the  WoRLD  LeaDeR  in     have a training operation and partnership   believe that they can find the pilots. In the
        commercial  flight  simulators,  leading  with  Japan  Airlines.  We  are  well  positioned   last year we have seen airframers come to
        Canadian training solutions  organization   in South-East Asia and have a partnership   us and say – we have a sales campaign for an
        CAE, is now looking at growing its training   with Air Asia in Malaysia, Cebu Pacific in the   aircraft and the potential airline customer is
        solutions business. “We see ourselves   Philippines and have a training operation   cautious about making that decision because
        growing as a training solutions provider and   in Singapore.  We continue to look at ways   they don’t believe that they can get the pilots.
        becoming  more important  and desirable to   to expand our presence in Indonesia and   We have put together programmes that span
        our customer base and we see more airlines   Thailand, where there are some growing   across years, where we can develop a cadre
        outsourcing  their  training  to  us,”  says  Nick   airlines. India is an important market as well   of pilots that we hand over to the airlines
        Leontidis  Group  President,  Civil  Aviation   and we have a partnership with Jet Airways   that can support a sales campaign for an
        Training Solutions in an interview with Asian   and IndiGo.             airframer.  This is new and I’ve never seen
        Airlines  and  Aerospace.   CAE  is also  facing                        something  like this  before.  We like  this as
        a situation where it is being requested to                              we are well positioned for this, as we have
        deliver more trained pilots and aircrew by                              businesses that can recruit experienced
        airframers,  who are  seeing aircraft orders                            pilots, we have a business that can train ab-
        being deferred as airlines are unable to come                           initio pilots and we have a simulator training
        up with the pilots and crew to fly their new                            network that can type-rate the pilots and
        aircraft. Edited excerpts from the interview.                           induct them into the airline.  We are well
                                                                                setup for this kind of demand and hopefully
        What are CAE’s market prospects for                                     this kind of demand will grow and be positive
        simulator training in the region and your                               for us.  We have a broader reach to access
        priorities for Asia and Asia-Pacific?                                   people who are looking to become airline
        Asia is obviously a very important market for                           pilots, we have the ability to assess them and
        us. We not only sell our simulators to airlines                         do a lot of things for them, that airlines aren’t
        that want to own their own training centres,                            necessarily equipped to handle and there is
        but also deploy simulators in our own                                   now a lot of turn-over in pilots.
        network for airlines that want to outsource                                
        their training. Out of the approximately 250   Nick Leontidis Group President, Civil Aviation   What are the latest developments at CAE
        full-flight simulators that we operate as part   Training Solutions, CAE  with regards to training solutions?
        of  our  training  business,  60  of  them  are  in                     We have recently announced an initiative
        Asia. Over the last few years, approximately   What requests are you receiving from   that we are calling the Next Generation
        30-40 percent of the simulators we sell have   airframers and airlines with regards their   Training System, which basically involves
        been to Asian customers.            training requirements?              CAE creating a data- driven, evidence-
           A lot of our investments in the commercial   From airframers, one interesting trend that   based training programme, that airlines can
        training  business  right  now  are  going  into   we are seeing these days is that airframers   use to train pilots and monitor pilot skills.
        Asia, which has led to the creating of a   are being asked by airlines to provide not   This programme is not a replacement to
        number of facilities and Joint Ventures (JVs),   only aircraft but also the pilots as well.   existing programmes but rather a way to
        that we operate. Asia is big market that is   Because there is such a shortage of trained   measure the effectiveness of the training
        growing and has lots of needs, because there   professionals,  many  airlines  have  deferred   programmes and therefore the skills of
        are many new airlines or old airlines that are   decisions to buy aircraft because they don’t   the pilots.  This is going to be beta tested
        rapidly  expanding and  we  are participating
        quite a bit in this. Our focus is to find a
        partnership with an airline and give them  We see ourselves growing as a training solutions
        the anchor benefit of the investment, while   provider and becoming more important and
        allowing us to leverage that relationship into
        a successful business.              desirable to our customer base and we see
           Most recently we announced a new
        partnership  with  Vietnam  Airlines and  also  more airlines outsourcing their training to us

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