Good afternoon, Madam Chair and members of the committee.
L3 Technologies develops defence technologies and advanced commercial solutions for pilot training and aviation safety. In this country, L3 Technologies currently employs more than 2,200 Canadians, and the company is continuing to grow.
L3 Technologies estimates that 151,000 new pilots will be needed around the world in the next five years, an average of 30,000 per year. For reference, the industry trained about 20,000 pilots in 2017.
This committee will find it interesting that our airline academy programs are constructed to assist airlines with receiving well-trained pilots. In Europe, we conduct the recruiting, selection and training processes that will guarantee successful candidates a right seat with a paired airline operating with the European Aviation Safety Agency; easyJet and British Airways are two examples.
At our airline academy in Florida, we have over 780 students, 104 aircraft and a yearly flying rate of 130,000 hours. Two-thirds of the students are foreign nationals. There are no Canadians at the moment.
Due to FAA requirements to achieve air transport licenses, L3 offers graduates the opportunity to remain in our schools to become instructors and achieve their required hours. While we cannot guarantee placement to airlines in the U.S., our recruiting and training standards are well respected and the hiring rate of graduates by airlines is high.
In both of these programs, the largest barrier to producing more pilots is cost. Students are required to finance themselves. We do provide assistance and have government as well as commercially backed loans. There are also several scholarship programs.
Although the financial burden to the student remains high, L3 provides a thorough screening selection on students to maximize the success rate as we assume some of the financial risk.
L3 Technologies owns Dawson Aviation in Pueblo, Colorado. Since 2006, Dawson has provided initial flight training for all United States Air Force student pilots, combat system operators and remotely piloted aircraft operators. More than 15,000 USAF students have passed through since inauguration. This program consolidated initial flight training that had been farmed out to 183 local schools across the United States. The decision to consolidate the program into one school and to be more closely supervised by the USAF was a result of a series of accidents at several civilian flight schools that had difficulty ensuring appropriate technical and safety standards.
All these programs highlight the requirement for a critical mass of resources and infrastructure. Flight safety and flying and maintenance standards must be observed. In addition, a constant source of flying instructors and aviation maintenance personnel must be provided. The student selection process must be rigorous and they must be provided with sound advice and financial assistance. It must also be possible to invest in the latest simulation and aircraft technology, so that training is aligned with airline requirements.
Our first recommendation is to develop a national strategy. This problem in Canada is not going to solve itself and our airline and global aviation businesses are creating that demand. An appropriate training pipeline needs to be developed for the recruitment and selection of students to maximize success for the investment made, one that promotes and increases women's, indigenous and minority representation; that provides financing options including government assistance; that enables a critical mass of resources and infrastructure to provide up-to-date training and solid flight safety practices; and that is in direct alignment with the airline and global business requirements.
Our second recommendation is to directly involve the major airlines, global aviation business community and government in the development of a solution. The major airlines and global aviation businesses are creating the demand and have a major stake in how any strategy should roll out. These entities should be involved in the development of a national strategy. Their requirements will frame the national strategy solution and government will be better placed to understand how they can help. L3 Technologies would welcome the opportunity to participate.
Our third recommendation is to consider different business models that will enable the national strategy. As demonstrated with the European Aviation Safety Agency example, L3 provides guaranteed right seat placement with an airline. Finding the right business model for Canada is important.
All stakeholders need to be involved and must work together to find the right solution. If we as Canadians want to remain competitive in a rapidly changing technological global environment, where regulation and standards will only increase, then we must work together to find a national strategy for Canada.
I would like to thank the committee members for their interest.
I am ready to answer your questions.