And that’s where you see, for example, agreements that we have with example, we announced last quarter with Boeing that we signed at the Paris Air Show and we’re immensely proud of the partnership with Boeing because that partnership is all about Boeing selecting us to deliver their competency-based training program, starting the — more we announced and Boeing announced is starting in India. And to me, so that’s — that’s CC bringing technology to bear, bringing the sheer size of the footprint that we have, the amount of training hours that we do, the technology we bring to be able to give objective data-based insights to OEMs such as Boeing and to airlines across the world to make sure that they can efficiently — basically bring on pilots, new pilots, move pilots to different positions at an earlier age while still maintaining the safety of the skies that we enjoy.
That’s what we do.
Operator: Our next question comes from — our next question comes from Kristine Liwag with Morgan Stanley. Please proceed.
Kristine Liwag: Marc, so maybe going back to the Healthcare business. The past few quarters, we finally see it to be profitable. Can you just give us a little background of why now for the sale? And then also as a follow-on, I mean, the Healthcare business was supposed to be an industry in which you have low market share, that you had the opportunity for growth. Now that you won’t have Healthcare anymore, are you thinking about another potential leg to the business as a strategic area for growth?
Marc Parent: Well, let me start with Healthcare. Together in concert with the Board, obviously, we’re always looking at the portfolio. We make sure that we’re maximizing the value, and that’s the value to all stakeholders. And so, it’s a specific case at Healthcare. We find ourselves in a place today — and we’ve been looking at this for — not overnight, obviously, but that the next wave of investment that’s going to be required for this business is probably best made by new capital providers so that we can drive more focused investment and synergy in our core. So, we think now is the right time. And I’m absolutely convinced that Madison Industries is the right owner for this business. I’ve had an opportunity to talk with the CEO, I think a couple of times, our shared values and our similar cultures, to me, make this transaction a perfect fit, again, for all stakeholders.
And — so that’s really how I see that. With regards to another leg, I mean, what you’ve seen is we’ve already done the other leg, and that’s software. So, to a certain extent here, we’re changing Healthcare for software.
Operator: Our next question comes from James McGarragle with RBC Capital Markets.
James McGarragle: So, I just wanted to ask another question on the Defense margins with regards to that low-margin business rolling off. So, I’m just trying to better understand how these contracts get retired. Is it as simple on a specific date, these contracts come off the books? And then the day after that, the margin profile improves by a certain percentage basis? Or is there — a little bit more nuanced than that? Because I’m just trying to get a better understanding on how these contracts get retired and then what visibility, I guess, that you guys have in the margin improvement on the back of these contracts coming off the books.
Marc Parent: It’s really a question of finishing the contracts. There are a number of contracts that we’re executing that are to deliver products and services to specific customers without getting the specific nature of each one. Each one has a contractual end date, and there’s assumptions on our part with regards to the cost it’s going to take us to be able to complete those programs and deliver what we promised to the customers on time. So — and at — literally on a weekly basis, we manage that to make sure that we basically can achieve what we said we’re going to do, complete on time at the schedule at cost that we assume. And that’s really what we’re talking about. And with regards to the assumptions we’ve made with — for us to be able to do that portends the outlook of a deal.
James McGarragle: Okay. And are you able to provide some color on those dates when those are going to be coming off the book?
Marc Parent: Look, I think that to me, it’s again in aggregate, the trend lines are what — or what we’ve said. Look, I think if I look at overall the programs that we have, I think it’s safe to say that we’ll be substantially complete with those in totality by the end of next year. That’s what — obviously, they will close on — not all at the same time, but again, substantially complete by the end of next fiscal year.
James McGarragle: Okay. And then just turning to the Civil side of the business, and I’m not asking for a fiscal 2025 guide, but more so thinking about how much room there is to recover to pre-pandemic levels of activity? And just looking at the most recent IATA data, still has passenger kilometers down 10% in Asia, down 4% in Europe. International travel is still down 7% versus pre-pandemic. So, on a high-level basis, is the right way to think about growth in fiscal 2025 whatever we assume that the base business can do in Civil in a normal environment? Plus, then, a continued recovery to pre-pandemic levels in Asia, Europe and international travel?
