ATAC International Business Development Strategy 2012/2013 EXECUTIVE SUMMARY

Flight Training
This is Phase 6 of the Flight Training GOA supported ATAC International Business
Development Strategy (IBD) outreach to the International aviation community. The goal of
the ATAC IBD is to promote professional pilot training in Canada to foreign air operators,
civil aviation authorities and foreign students in India and Latin America. The current project
is focused on Brazil in “Latin America”. According to Boeing, Latin America will continue to
be a growth leader to the point that South America with be the 7
th
largest in its table of world
regional flows by 2029. Each cycle of the ATAC International project brings greater
refinement and precision through stronger ties with the authorities, deeper consultation and
feedback from the educationalists and air operators.

The Opportunity India group led by ATAC, has met numerous times in the last 2 years which
included two successful missions to India. ATAC and member companies met with the Joint
Direct General of Civil Aviation, 3 major Indian Air operators, educationalists, Indian Industry
Associations, Indian Banks and Indian students, and trade commissioners in February 2011.
The current phase of the Brazil project will follow up on findings from the 2011/2012
research paper commissioned by ATAC to identify market potential for international
development of Canadian pilot training in Brazil.

The Canadian Flight training sector has excess capacity which can easily handle the training
and upgrading of skills for the thousands of student pilot candidates on the Indian sub-
continent and in Latin America in need of professional pilot training. Canada has a robust
regulatory framework supporting the flight training industry and is highly regarded as one of
the best in the world by international airlines. However, we are not very good at marketing

training companies to the International marketplace making Canada the number one
destination for Professional Pilot Training applicants.

Flight Training
The Flight Training Unit (FTU) sector in Canada consists of 161 Flight Schools which has
been decreasing on a yearly basis since the 2002 high of 227 FTU operating certificates.
The Flight Training sector of the aviation industry is of critical importance to Canadian
aviation as it is at the grass roots, where ab initio students are trained with the competencies
needed to become professional working pilots for the aviation industry. Although the number
of flight schools is trending downwards the number of commercial pilot candidates has
stabilized and is trending upwards primarily due to the increase in foreign trained pilots in
Canada. About 40% of commercial licenses in Canada are obtained by foreign students and
that number is expected to continue to grow. Latin America and the Caribbean account for
10% of global air traffic with the largest increase in departures and a combined growth rate
of 13%.

ATAC’s FTU’s represent approximately 80% of all of the commercial flight training done in
Canada and are represented in all of the provinces from coast to coast. These schools
include the top aviation colleges and largest capacity flight schools in the country with the
largest fleet of aircraft and most advanced simulation. These schools are notable for having
a full range of capabilities to train pilots from ab initio to advanced pilot training. In Canada
the diverse geography and diverse weather conditions provide for real world flying situations
which are not readily available in other countries. Our safety record is one of the best in the
world and our piloting skills are second to none.

Maintenance Repair and Overhaul (MRO)
The Maintenance, Repair and Overhaul (MRO) sector represents 13.85 % of the $23.2
billion revenue generated by the Canadian Aerospace Industry, as reported by the
Aerospace Industries Association of Canada from their 2010 statistical highlights.


has limited training capacity in country. Canada has the capacity to double/triple training
among ATAC member operators to the value of $30M per year. The Indian Directorate
General of Civil Aviation mandated Indian Air Operators to hire Indian pilots instead of
expatriate pilots by 2010. Currently information from India has indicated that 3,000
commercial pilot licences require upgrades to be considered for future hiring by air
operators.

Flight Training – Brazil
Brazil is the new target for this phase of the proposal supported by the recent market
analysis identifying a strong demand for pilot training. The Brazilian government continues to
invest in airport upgrades to support increased aircraft fleets needed to service
improvements in domestic air travel. Brazilian aircraft manufacturer Embraer is expecting a
4.9% growth introducing 3,100 new jets in the 30 to 90 seat sector. This forecast contrasts
Boeings recently issued market forecast that predicted demand for 1,980 regional jets over
the same 20 year period. Embraer is also financially supported by the Brazilian government
through subsidies.

Association members were consulted about this market and we estimate approximately $18
million dollars will be generated for flight training in Canada. The market analysis for Brazil
Flight Training is the foundation the project and better defines the market potential. We
continue to target students who are aspiring to become professional pilots but do not have
access to the training within their own country.

Western Hemisphere and Europe (MRO)
The target market for Canadian MRO companies in the Western Hemisphere is primarily
focused on the US however most new opportunities exist in Central and South America
supporting the explosive forecast growth of regional aircraft in Latin America. The second
area of interest and next most important growth area accessible to Canadian MRO is the
European aviation community. These markets have been identified by ATAC’s MRO
specialist Les Aalders as the target markets for the 2012/2013 GOA resources.

1. Develop and maintain a collaborative network of agents, counsellors and trade
commissioners in Brazil.
a. The network will consists of 25 - 40 professionals, agencies/individuals/academics/
counsellors/ alumni/flight schools across Brazil.

2. Agencies will be provided training by in-country representatives on behalf of ATAC
member schools on programs, admission process, application forwarding etc. ATAC will
provide all material and process support for the training.

3. ATAC companies will participate in select high profile events in Brazil to increase the
profile of Canadian pilot training.

4. Ensure member schools’ internal capacity can accommodate numbers (enquiries,
applications and registrations) from Brazil so that service quality is assured as numbers
increase.

5. Identify and train an ATAC in-country counsellor (part time) who will maintain existing
relationships, develop new relationships, manage online presence and conduct
education and visa counselling for the ATAC members.

Maintenance Repair and Overhaul (MRO)
1. The MRO focus will be supported by extensive consultations with the DFAIT trade
commissioners representing Europe and Latin America identifying the most promising
linkages with foreign companies requiring the expertise and services from Canadian
MRO firms.

2. The project will focus on promoting Canadian MRO service centres who have the
capacity to handle narrow body, wide body, commuter, regional jets, military, business
and specialty aircraft as well as engines and components from these types of aircraft.
The Canadian MRO capability and capacity is a competitive advantage in servicing


January 10, 2012