The Hindu Business Line : Cabinet approves flying school’s pact with Canada’s CAE

New Delhi, Nov. 9 In a move that would help ease the availability of pilots in the country, the Union Cabinet has given its nod for Indira Gandhi Rashtriya Uran Akademy (IGRUA) to sign a management contract with the Canadian company, CAE Inc.

In addition, the Union Cabinet has approved the formation of a subsidiary company by Airports Authority of India (AAI) to set up a flying and aviation training institute in Gondia as a joint venture with CAE.

The subsidiary would establish a flying and training institute that would help meet the growing requirements of pilots and technical manpower for the aviation industry.

The Ministry of Civil Aviation has proposed that at IGRUA, the management contract partner would assume the responsibility of managing the flying training activities in totality, including maintenance of aircraft, flying operation, air traffic management and runway maintenance, among others.

Capacity call

The proposed tie-up would see the initial capacity of IGRUA being increased so that it produces 100 cadets annually from the current level of 40, and attempts would be made to increase the number of cadets that pass out annually to 200, officials said.

The management contract would not only include the restructuring of the flight training, aircraft maintenance and the training programme, but would also have a performance based management philosophy with clear targets to measure performance.

Further, it has been proposed that the revenue model of the management contract would be worked out with the objective of ensuring that the institute becomes a self sustaining organisation over the next three-to-four years.

Training institute

The AAI has also proposed to set up a National Flying Training Institute (NFTI) at Gondia to establish infrastructure for flying training to get a commercial pilots licence.

The estimated cost of development of NFTI is estimated at Rs 113.48 crore, with around Rs 41.5 crore being earmarked for the setting up of the institutional complex, and Rs 70 crore being spent towards procuring aircraft, helicopters, and training aids.

The entire expenditure for the project would be met by the joint venture through equity and debt, and no Government funding is anticipated, officials added.

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Cabinet approves flying school’s pact with Canada’s CAE