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Chris Stellwag: CAE will be designing and manufacturing a C-130J full-mission simulator for the Indian Air Force under a subcontract from Lockheed Martin. As part of the Indian Air Force’s acquisition, Lockheed Martin will be supplying six aircraft and the C-130J full-mission simulator.
8ak: When will it go online?
Stellwag: We will deliver the C-130J simulator to the Indian Air Force Hindan Airbase in 2012.
8ak: Which other nations has CAE supplied these simulators to?
Stellwag: CAE has been Lockheed Martin’s training systems partner for the C-130J aircraft since its initial development in the mid-1990’s. CAE has designed and manufactured all the C-130J simulators in-service with militaries operating the C-130J, including the Royal Air Force (two C-130J simulators), US Air Force (five C-130J simulators), Royal Australian Air Force (one C-130J simulator), US Marine Corps (three KC-130J simulators), and Italian Air Force (one C-130J simulator). In addition to the C-130J simulator for the Indian Air Force, CAE is also currently developing two C-130J simulators for the Canadian Air Force and an HC/MC-130J simulator for the US Air Force Special Operations Command.
The C-130J simulator will be the first CAE has built featuring the CAE True(TM) electric motion system.
8ak: Will any of part of the simulator be developed in India?
Stellwag: Because this C-130J simulator for the Indian Air Force is a follow-on from similar C-130J simulators designed and manufactured for other militaries, none of the development is being done in India. However, once the simulator is delivered, the maintenance and support will be performed in-country.
8ak: Typically, what does a system like this cost?
Stellwag: The cost for high-fidelity, full-mission simulator for a military aircraft is often in the range of US$15 to US$25 million, though there are many variables that can affect the final price.
8ak: What other simulators do you have operational in the Indian market? Is the Indian military using any now? Is the Dhruv simulator completed?
Stellwag: CAE has delivered the following simulators to the Indian defence forces: An An-32 flight training device, a MiG-27 part-task trainer, a Cheetah full-mission simulator, and a Jaguar full-mission simulator. We are currently developing a DO228 flight training device that we will soon deliver. In addition, HAL and CAE have established the Helicopter Academy to Train by Simulation of Flying (HATSOFF), a joint venture equally-owned by HAL and CAE. As part of this new helicopter training centre, CAE is developing a full-mission simulator featuring CAE's revolutionary roll-on/roll-off cockpit design, which enables cockpits representing various helicopter types to be used in the simulator. We will design and manufacture cockpits for four helicopter types: the Indian Army/Air Force variant of the HAL-built Dhruv, the civil variant of the Dhruv, the Bell 412 and the Eurocopter Dauphin.
8ak: What other CAE products are you actively marketing in India? What is planned for the future?
Stellwag: We are marketing a range of simulation-based solutions, including battle tank driver/gunner simulators, CAE’s Common Database (CDB), emergency management response centres, UAV simulators, the CAE GESI command and staff training system, and our CAE Infront 3D Forward Observer Trainer.
8ak: How big is the Indian market for your products - Civil Vs Defence?
Stellwag: CAE believes the Indian market will be significant in the coming years in both civil aviation and defence for our portfolio of simulation-based solutions. Simulation offers a number of advantages, most notably cost advantages, that simply cannot be ignored in today’s uncertain economic and threat environment. The Indian market is of strategic importance to CAE and this importance is demonstrated in the investments that CAE has made in India.
8ak: Is it a competitive marketplace? Dassault Systemes just had a seminar on their Indian focus. Are they a big competitor?
Stellwag: Competition is fierce in all markets, and India is no different. One thing we like our customers to know is that CAE is somewhat unique in that the focus of the entire company is simulation and training. We invest approximately 10 per cent of our C$1.6 billion annual revenues on research and development specific to this niche, and we leverage simulation technologies between the civil and military markets. CAE has a long history of offering customers innovative, high-quality simulation equipment and training services, and we intend to continue setting the industry standard.
8ak: How is CAE’s integration with MacMet?
Stellwag: The integration has been completed, and we recently announced that Macmet Technologies Pvt Ltd. (CAE Macmet), acquired by CAE in July of 2007, will now operate under the name CAE India Private Ltd. Our strategy has been to establish regional operations in key defence markets around the world so that we can better serve defence customers from a local base, while still leveraging the global breadth and capability of the entire company. CAE India is one of our regional operations for our military business segment.
8ak: To conclude, could you tell us a bit more about CAE?
Stellwag: CAE is a leader in providing simulation and modelling technologies and integrated training solutions for the civil aviation industry and defence forces around the globe. With annual revenues exceeding C$1.6 billion, CAE employs more than 6,500 people at more than 75 sites and training locations in 20 countries. CAE has the largest installed base of civil and military full-flight simulators and training devices. Through its global network of 29 civil aviation and military training centres, CAE trains more than 75,000 crew-members yearly. We also offer modelling and simulation software to various market segments and, through CAE’s professional services division, we assist customers with a wide range of simulation-based needs.
The Indian market is of strategic important to CAE and this importance is demonstrated in the investments CAE has made in India. These investments include the acquisition of Macmet (now CAE India), the formation of the HATSOFF joint venture with HAL, and a 150-person engineering centre of excellence in Bangalore. For the civil aviation market, CAE has opened a new training centre in Bangalore, initially for A320 and B737NG training. CAE and the Airports Authority of India jointly own the Rajiv Gandhi National Flying Institute in Gondia, and CAE also manages the Indira Gandhi Rashtriya Uran Akademi (IGRUA), the Indian government’s national flying institute. With the Indian aviation industry as well as the Indian defence forces facing growth challenges, CAE believes simulation and training will continue to take on more importance so we will continue to make significant investments in India.
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