NEW DELHI -- CAE has signed a contract to become the managing partner of Indira Gandhi Rashtriya Uran Akademi (IGRUA), the Indian government's flight training academy. CAE has also formalized and signed a joint venture agreement with the Airport Authority of India (AAI) to develop the Rajiv Gandhi National Flying Training Institute (RGNFTI). Memorandums of understanding for these contracts were announced during the Paris Air Show in June 2007.

The signings were attended by Ashok Chawla, Secretary, Ministry of Civil Aviation; R. K. Singh, Joint Secretary for the Ministry of Civil Aviation of the Government of India; Dr. K. Ramalingam, Chairman of the Airports Authority of India (AAI); and Jeff Roberts, Group President, Innovation and Civil Training & Services, CAE.

"We are pleased that the government of India has recognized CAE's expertise in creating and managing world-class flight-training organizations," says Roberts. "With our long history of serving the Indian market, we understand that India needs to develop a solid infrastructure and implement state-of-the-art standards in flight training. These two academies, together with our upcoming training centre in Bangalore, will help us address the urgent need for pilots throughout the region."

Chawla explains that the government of India and CAE are working together to create world-class institutions that both enhance the quality of cadets within India and address the growing shortage of Indian pilots. There is a requirement of up to 1,000 pilots per year in India over the next five years to meet the growing needs of the industry. He adds that with these new schools, significant steps were taken towards resolving the pilot shortage in India.

Over the next ten years, constant growth in air travel is expected to produce an enormous demand for pilots, cabin crew, maintenance staff and infrastructure. The Air Passengers Association of India estimates that the annual air traffic growth rate in the country has been around 26 percent over the past two years, causing the Indian airline industry to order approximately 400 new aircraft to be delivered by 2010.

Both IGRUA and RGNFTI will become members of the CAE Global Academy, subject to agreement on the terms and conditions of membership. The CAE Global Academy is a worldwide network of flight training organizations that offers pilot candidates an optimized program with standard operating procedures. Once students have graduated from the Academy, the new first officers may pursue type-rating in one of CAE's training centres, including CAE's upcoming training centre in Bangalore. CAE is under contract to recruit, train and supply more than 800 pilots for commercial airlines.

CAE will transform both schools into centers of excellence for India, leading the Indian market in the delivery of a complete range of high-quality aviation training programs.

IGRUA will use CAE's training curriculum, courseware and training methodologies. Under the terms of the contract, CAE will manage IGRUA's existing flight school activities, including maintenance of aircraft, flying operations, air traffic control, runway maintenance, NAV aids, fire fighting facilities, medical facilities, security, staff and student facilities, as well as transportation. IGRUA opened in 1986 and is the Indian government's national flying school located at the Fursatganj Airport in Rae Bareli.

Under the terms of the contract, the Rajiv Gandhi National Flying Training Institute will be jointly owned by CAE and the AAI. Located at Gondia in the State of Maharashtra, the school will operate new aircraft, and will use CAE's training curriculum, courseware and innovative training methodologies. The state-of-the-art facility will include a hostel, a library, a workshop, dining facilities and a sports centre. The joint venture will manage flying operations, the maintenance of aircraft as well as staff and student facilities. The total investment for RGNFTI from CAE and AAI is approximately US $25 million.