So, that’s how we deploy it. And we €“ in terms of what is the practical capacity, look, I’ll tell you, I was our training center in Minneapolis about three weeks ago, where we are anchor customers are some of the largest regional carriers in the United States, like Endeavor, for example. And I can tell you, our training centers there are operating above 100%. And teams are doing a great job. So, when you talk about practical capacity, you can get up there and you can sustain it when you need too. And that’s I believe you me to support the training of regional carriers in the United States right now, they need us to be operating at that level. So, we can do it. So, there’s elasticity there now in practical reasons. When we define 100% for airlines, get you a little bit detailed here, but that’s 6,000 hours a year, which is 16 hours a day.
So, that’s what we consider a practical limit. But again, we’re doing higher than that. So, there’s flat. If the demand is there, that’s what we do. And when we get to those kind of levels, well, yes, what? In Minneapolis, there was a bunch of good nice tractor trailers or backhaul is building two new simulator base in Minneapolis, while I was there because clearly, demand is there. And we secure long-term contracts. We’re not speculative on how we deploy that capital.
Anthony Valentini: I’m curious how long the lead times are once you decide you need to add a simulator to a facility? How much time does it take for you guys to build that SIM and then deliver it to be up and running?
Marc Parent: It depends on where it’s going. And that’s the big factor. But typically, if we make a decision on an airline a typical simulator, it’s probably one we built before. It’s typically between 12 and 14 months, I would say.
Anthony Valentini: Last one for me on defense. You highlighted a future vertical lift. I’m curious, and I’m sure you have hundreds if not thousands of contracts, but where does that kind of rank in terms of the large programs that you have? And should we be thinking through that contracts being negotiated in the old strategy or the new one, which is that kind of targeting the double-digit percentage margins? The new one…
Marc Parent: Does that question?
Anthony Valentini: Yes. And then just how €“ in terms of rank how
Marc Parent: It’s a large contract. But I said in the remarks that we have a lot of contracts that we’re bidding in a $100 million range, and we have a lot of contracts in the $1 billion range over the next three years. This is one of the ones that clarified in the second category of $1 billion without getting specific. So, it’s a large opportunity over time, but it’s not the only one. So, it doesn’t disproportionately affect my view on the fortunes we would have next year. It’s important, but it’s definitely not the only one.
Operator: We’ll get our next question on the line is from Kristine Liwag from Morgan Stanley. Please go ahead.
Kristine Liwag: Good afternoon everyone. I just want to follow up on a pilot shortage and like the bigger picture. I mean pre COVID pilot shortage is already an issue and then the mandatory retirements coming up in the U.S. will likely exacerbate the issue. I mean, when you look at the programs that your customers are undertaking, like the and things like that, how much of these actions solve like the bigger shortage problem? And if not, what should they be doing to support industry growth? Because it just seems like there’s not enough urgency in terms of actions that they should be taking. So, I just want to get an idea of how much you think that kind of solved up actions today? And if not, how do you think that gets resolved?
