Martin Gagné, group president military simulation products at CAE, explains how the Canadian business is positioning itself for a downturn in global defence spending and why it remains buoyant about opportunities in tankers, trainers and unmanned systems

How important is the military sector in CAE's overall business?

In terms of sales, we are roughly 50% civil, 50% military. Our activities are also split more or less down the middle between products - the simulators themselves - and services, where we provide training to our customers. So the business is very balanced. On the military training side we are represented at 100 locations worldwide. On equipment, among our full-mission simulators, we have designed the greatest variety of helicopter simulators and more training systems for the [Lockheed Martin] C-130 than any other company in the world.

Defence budgets are coming under pressure, particularly in North America and Europe. How is CAE preparing itself for any drop in military spending?

CAE's reputation depends on being close to our customers. We know they are challenged and times are difficult. The reason it is important to be close to them is that we feel we can add value, by finding innovative ways to ensure they have readiness of personnel.

Martin Gagne
 © CAE

In the past armed forces have traditionally used live assets for training pilots. But there is more interest now in simulation and modelling. We put more than 10% of our bottom line back into R&D and one of the results has been that we've evolved our technology to provide mission support training and mission rehearsal. For us, a very good relationship with the OEMs is also key. Many of the manufacturers are using our modelling in the development of their aircraft. We also support platforms with long legs, such as the [NH Industries] NH90, the [Boeing] CH-47 [Chinook], the [Alenia] C-27J and the [Alenia Aermacchi] M-346.

What is CAE's view on the US Air Force's selection of the Boeing 767 for its new tanker and what sort of training opportunities might this create?

CAE is involved on both the major tanker platforms, the 767 and also the Airbus A330 MRTT [multi-role tanker transport] chosen by Saudi Arabia. We expect stiff competition with the USAF, but our experience with the 767 [passenger aircraft] means we will be in serious contention. We expect they will want to move quickly now the type has been chosen and that an RFP [request for proposals] will emerge in the not too distant future. We are doing a lot to prepare ourselves by assessing potential partners to work with.

What sort of examples of successful collaboration along these lines have there been?

A good example is the Canadian OTSP where we were chosen as the government's operational training systems provider on the CH-47 and C-130J along with other Canadian partners including Atlantis and Cascade. The [Lockheed Martin] F-35 [Joint Strike Fighter] is another opportunity where we can adopt a similar model.

What are military customers looking for when it comes to unmanned air systems and what is CAE doing in this area?

When you look at this market you can see why it's a very exciting area for us. The USA and others are already heavy users of UAVs, but with our global footprint we see opportunities with other countries moving in. There is still a lot of learning on the go with unmanned systems. Armed forces acquire UAVs quickly and learn on the job. But now we are seeing several stepping back and trying to align their training and their assets by focusing on mission rehearsal.

Countries are looking for flexibility and modular solutions. When we talk about training sensor operators and pilots, it's all about networking and that's what CAE can do very well. We did a lot of training around the [General Atomics] Predator in the early days and now we are developing a UAV programme with a customer in Asia.

What is CAE's position on the US Air Force's T-X trainer and other advanced trainer programmes?

This is an area of strength for us. With the new fifth-generation fighters, more and more militaries are looking for the right lead-in trainer. In the USA, we are very much looking at leveraging on programmes that we already have a position on, such as the M-346. But again partnering will be important.

Finally, last year at Farnborough, Hawker Beechcraft announced that CAE would be its training partner on the AT-6 light attack and armed reconnaissance aircraft. How is that going?

It is going very well. Hawker Beechcraft will be demonstrating CAE technology on the aircraft at Le Bourget. It is absolutely on schedule.

Source: Flight Daily News

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