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        in Malaysia and we are very excited about   curriculum  and  infrastructure  is  spread   Corporation of China (COMAC) decided to
        this, because obviously it provides a more   across a broader base.     set-up its own customer service centre, which
        rigorous system of insights for management   Of course – they get capital avoidance,   included a training centre and they bought
        and for the pilots themselves to be able to   these are not cheap investments, a typical   the simulators from CAE. Right now we have
        understand what he or she is good at. As   simulator  costs somewhere in  the range   two ARJ21 simulators deployed in China and
        training solutions provider,  we can take   of 10’s of millions of dollars, so if you are   another one is nearing completion. We also
        corrective action to improve the skills of   putting together a training centre with 5 or   have two C919 simulators in construction.
        the pilots in the areas where the pilots may   10 simulators, that number can grow quite   COMAC preferred that it would have its
        need more help.                     rapidly.  Many times  these simulators  are   facilities in Shanghai and have CAE deploy
           In terms of relationships, our most recent   underutilised,  so our  customers also  have   and deliver the simulators to other locations
        one is with Japan Airlines. JAL’s training   access to our marketing and sales teams,   as the demand for such emerges. COMAC is
        centre in  Tokyo is jointly owned and the   which they can leverage. In the case of our   now in the process of starting work on their
        airline is actually a customer and we leverage   Tokyo training centre for example, that is   wide-body aircraft the C929 and we are
        the infrastructure and the simulators and the   now a  location  inside  of our  network and   already pushing very hard to stay involved.
        excess capacity to attract a broader market   can benefit from the reach of our sales   In the case of Japan,  Mitsubishi
        and for JAL to leverage the investments that   team and they become part of what we sell   outsourced all simulator training for the
        we are  making in  next-generation  training,   in the network. Hence the airline is able to   Mitsubishi Regional Jet (MRJ) to CAE. Right
        where on their own they would not do.   profit from an asset that would have been   now we are building the first MRJ simulator
        Airline operators decide to choose a training   underutilised by the airline are now used by   and we will also deploy a training centre in
        provider instead of doing it themselves and   third party customers.    Japan to support the training for the first
        there are a number of reasons for this; The                             customers,  which are  All Nippon Airways
        biggest  one  is  flexibility,  they  can  convert   Please elaborate on CAE’s training   (ANA)  and Japan  Airlines  (JAL).  We  also  be
        a fixed cost into a variable cost and only   simulators for COMAC and Mitsubishi   deploying another couple of simulators in the
        use what they need.  They also gain scale   Aircraft                    U.S. to support MRJ sales there with a couple
        as investments in IT systems, courseware   In the case of China, the Commercial Aircraft   of big operators.
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