Marc Parent: Well, I wouldn’t say halfway through, look, how would I characterize it? We’re in the low 70% utilization in that approximately right now. It does have seasonal variations. I’ll give you some maybe data points. In terms of simulator deliveries or orders typically prior to the pandemic, we typically sell maybe 6 to 8 full-flight simulators a year to China, okay. And I would say over the last couple of years, we’ve only sold 2 or 3 in total. So that gives you an idea in terms of simulator sets. The more near-term recovery comes in training. And that mainly because we don’t have any training centers in China, but it’s all the training centers that we have in the region. Of course, we have a lot of training centers in the region.
The anchor customers that we train in those regions, a lot of their €“ a good proportion of their flights are in and out of China. So, as that recovers, we see the utilization in our training centers ramp up. I expect that to materialize over the next few quarters as the recovery takes hold.
Benoit Poirier: Okay. Thank you very much for the questions.
Operator: Thank you. We’ll get to our next question on the line from Matthew Lee with Canaccord Genuity. Please go ahead.
Matthew Lee: Hey, good afternoon. Happy Valentine’s Day. On the Civil side, when I think about new pilots coming through training, is that a higher-margin program and a margin benefit than usual annual pilot training? And maybe you can quantify kind of the growth you’re seeing in just given how many pilots need to be trained right now?
Marc Parent: It’s actually a lower-margin business than €“ when we look at our mix, it’s on the lower end. It’s really the €“ we look at what that drives it, it drives increasing capacity in our training center network. And it’s part of our offering to airlines, which is very important. Airlines are looking for pilots, they need pilots. And CAE has I think, the largest network of pilot training centers in the world. And we don’t basically take people off the street. I mean we only do it for airlines themselves. So, it’s an important part of the offering that we give the airline as a complete solution, — but if I take it by itself, it would be, if you like, lower than the average margin that we get in our civil business.
Matthew Lee: That’s very helpful. And then on the defense side, you pointed out that delayed orders coming to fruition as a potential margin driver. Are those contracts naturally high margin with more product in the mix? Or is there another reason why those orders in particular are positive for margins?
Marc Parent: I would say that €“ I wouldn’t say all because sometimes it’ll go strategic, but the great majority of the contracts that we’re signing and we’re bidding today are accretive to our objective of low double-digit margins in interest business.
Matthew Lee: Okay. That’s very helpful. I’ll pass the line.
Operator: Thank you. We’ll turn to next question on the line from Fai Lee with Odlum Brown. Please go ahead.
Fai Lee: Hi, it’s Fai from Odlum. Marc, you mentioned that CAE has submitted a request for equal adjustments. And I’m just wondering if you can comment on the process, for example, are there set deadlines for the customer to respond back to you? Is it a negotiated process? What happens to the customer said no €“ do you have like an ability to appeal the decision.
