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By Elliot Hughes. Published on Apr 6, 2020 10:20am "It's safe to say that everyone involved in defence procurement should expect a significant shift to the right in timelines, and a retrenchment and re-focus towards projects that align with the government's recast military and geopolitical priorities." Since everyone is either overrun with work or inundated with COVID-19 news, here's the bottom line up front (or the BLUF in military jargon): the COVID-19 pandemic will have a material impact on all aspects of Strong, Secure, Engaged (SSE), Canada's defence policy. These changes will be felt acutely in defence funding, overseas operations, and defence procurement, though it's too early to predict the scale of the impact. There you have it. You can now go back to watching Tik Tok videos. For those choosing to forge ahead, it was only last week that Defence Minister Harjit Sajjan and Chief of the Defence Staff General Jonathan Vance laid out the domestic military response plan to the COVID-19 pandemic. Dubbed Op LASER, the plan will prioritize slowing the spread of COVID-19, support vulnerable communities, and assist provincial, territorial and municipal partners, if needed, by mobilizing up to 24,000 regular and reserve force members, all while maintaining the Canadian Armed Force's (CAF) ability to respond to natural disasters in Canada via Op LENTUS. This announcement was preceded by a letter to all CAF members from General Vance where he outlined the global pandemic's impact on Canada's military. In the letter, General Vance tells troops and their families in no uncertain terms that ‘normal activities have changed dramatically'. Too true. But the impacts of COVID-19 won't stop with the women and men in uniform. SSE was a historical investment in Canada's military, with new funding in the tens of billions of dollars ($48.9B on an accrual basis, $62.3B on a cash basis) from a party that some felt was not inherently defence friendly. The 20-year plan set aside hundreds of billions of dollars ($497B on an accrual basis, or $553B on a cash basis) to rebuild, retool, and refocus Canada's military after years of neglect during the Harper years. With unprecedented levels of new funding, DND finally had the plan, the funding, and the political commitment to move forward with confidence, poised to become the agile and adept military of the future. Then the world was hit with a global health crisis. In the face of the pandemic, the federal government has, to date, announced combined direct economic measures and tax deferrals of $190B. The numbers are eye-popping, and the implications of such spending are hard to fathom. The deficit this year and next could creep up towards $200B. Now, there's no question these fiscal measures are necessary and non-structural, meaning they could be unwound depending on how the Canadian economy looks post-COVID-19. The soaring deficits will place tremendous pressure on government to reduce its spending in non-COVID-19 areas in favour of healthcare and related priorities. DND/CAF had already been struggling to spend the money it had been allocated in SSE, and that was before their annual budgets increased significantly. People within and outside of government were beginning to question the department's ability to absorb the money they had been given. It is my view that COVID-19 will force Defence officials, with or without urging from Finance Canada, to use the upcoming five-year review period of SSE to re-assess and re-prioritize the entire strategy. In fact, that work is likely already underway. There are some who suggest that defence spending is a good way to get money flowing back into the domestic economy, particularly through the manufacturing supply chain. And there are areas that should remain off-limits to claw backs including big ticket procurements like the Canadian Surface Combatants (CSC) and Future Fighter Capability Project (FFCP), programs that directly support troops and their families, domestic operations and disaster relief, investments to support the development of defence and security capabilities such as the IDEaS program, IT investments (including in data analytics and updating key IT infrastructure), deferred maintenance, and perhaps most critically, cyber defence. Everything else will be fair game. Ring-fencing and reprioritizing essential programs won't be easy. But under the current circumstances, it's the right thing to do. Every department should be prepared to do the same. Overseas operations, including joint military exercises and training, is another area COVID-19 will have a direct and material impact. At this juncture, it's hard to know how big a role the CAF will be asked to play domestically. The situation in Canada is evolving by the hour. The dreaded peak of the pandemic has yet to hit. While we should remain optimistic, we also need to be realistic. This means the military should be poised to intervene if required. We know that close to a quarter of all active troops are on standby and depending on the severity of the crisis, this number could go up. On any given day, approximately 8,000 troops are involved in some form of deployment – preparing to ship out, actively engaged in theatre, or returning from mission. It's hard to see how this rotation rhythm escapes the reaches of COVID-19. Indeed, General Vance alluded to this in his letter stating, ‘mission postures would be reviewed', and that this year's ‘Annual Posting Season (APS) will be seriously disrupted'. It's likely the pull towards supporting domestic efforts will be strong. That doesn't mean the desire to re-engage internationally won't persist. However, the ability to do so will depend on how the situation unfolds here in Canada, the willingness of countries abroad to welcome back foreign troops, and the impact COVID-19 has on the geopolitical landscape. (This is by no means an endorsement of that view. Canada should do everything it can to remain engaged internationally wherever possible, particularly with respect to humanitarian missions). Cyber defence is one domain we should do everything we can to remain engaged in. But while Canada's expertise and influence on the world stage is undoubtedly a positive one, this global pandemic will inevitably lead to a further focusing of our most critical interests. Defence procurement, and the potential implications of COVID-19, is an area of acute interest to the defence community. This subject could be an entire article in and of itself (and if you're looking for the latest analysis on how DND/CAF was doing on procurement spending I'd encourage you to read David Perry's piece from December 2019). However, broadly speaking, it's worth noting that before this global health crisis hit, DND/CAF were progressing on procurement. Many projects, though not all, were moving ahead, even with the structural constraints and limitations of government processes holding them back. Large procurements, namely jets and ships, were plagued with delays that are expected for any large procurement. Now, given the magnitude of the COVID-19 pandemic, those typical speed bumps are bigger than before. The reality for defence procurement today is that the pace of work has come to a grinding halt. Nearly all personnel across government are working from home. Government IT challenges persist, with DND staff having to coordinate amongst themselves to schedule when they can log on to their system. And any work requiring access to a secured system is a non-starter as this would require being in the office. The Defence department is a bit like an aircraft carrier in that it takes time to get up to full speed and doesn't handle sharp corners very well. This crisis will expose that rigidity. But it isn't simply DND that needs to get back to work for defence procurement to start moving again – it will take a government-wide effort. For the process to run effectively officials from a range of government departments, including Public Services and Procurement Canada (PSPC), the Treasury Board Secretariat (TBS), Finance Canada, the Canadian Coast Guard and Global Affairs Canada, need to be fully engaged. Today, those Departments are focused almost exclusively on addressing the immediate challenges posed by COVID-19, with this to continue for the foreseeable future. Moreover, one also needs to consider the impact COVID-19 is having on companies bidding on projects. The entire supply chain has been hit and it will take months to get it humming again. How significant an impact this delay will have, and on which projects, is difficult to predict today. But it's safe to say that everyone involved in defence procurement should expect a significant shift to the right in timelines, and a retrenchment and re-focus towards projects that align with the government's recast military and geopolitical priorities. We are still in the early days of this crisis. Government is projecting a return to some sense of normalcy in July, at the earliest. The run-on impacts of that kind of pause are hard to comprehend, with a full understanding of the entirety of COVID-19 impacts likely to take even longer still This is a once-in-a-century event, with every person and institution expected to face indelible consequences. The very nature of the defence department, its size and scope, means we should expect a proportionate impact. https://ipolitics.ca/2020/04/06/how-covid-19-could-remake-canadas-military/

We agreed to explore how we could use the military expertise at EU level to support exchange of information and sharing of best practices among Member States. To do so, we could set up a task force with the European External Action Service, led by the EU Military Staff. Josep Borrell, EU High Representative for Foreign Affairs and Security Policy EU Ministers of defence today held a video conference, chaired by the EU High Representative for Foreign Affairs and Security Policy, Josep Borrell. Ministers discussed the defence implications of the Covid-19 pandemic, focusing in particular on military assistance in the fight against the crisis, and the situation in the EU's military and civilian missions and operations in the framework of the Common Security and Defence Policy (CSDP). Defence ministers shared examples of how their armed forces have contributed to the efforts to counter the Covid-19 crisis by providing transport and logistic support, building hospitals in record time, deploying their medical staff, and supporting the police and other national services. In this context it was decided to explore setting up a task force led by the EU Military Staff to better exchange information and share best practices among EU member states. This would be done in full coordination and complementarity with NATO. EU Defence ministers also discussed the impact of the Covid-19 pandemic on the 17 EU CSDP missions and operations around the world, focusing on the six military operations and missions. Ministers highlighted the importance of maintaining EU's presence on the ground, especially in those countries and regions that are already fragile and affected by instability. https://www.consilium.europa.eu/en/meetings/fac/2020/04/06/

We have funding opportunities for Canadian innovators who can help fight the COVID-19 pandemic. The Public Health Agency of Canada and the National Research Council of Canada are looking for a Point of Care and Home Diagnostic Kit. The National Research Council of Canada has also modified their Low Cost Sensor System challenge to address needs for COVID-19. Think you can solve one of these challenges? Compete for funding to prove your feasibility and develop a solution! COVID-19 Funding Opportunities COVID-19 Challenge - Point of Care and Home Diagnostic Kit for COVID-19 Défi COVID-19 - Trousse de diagnostic au point de service et à domicile pour le COVID-19 COVID-19 Challenge - Low-cost sensor system for COVID-19 patient monitoring Défi COVID-19 – Système de capteurs peu coûteux surveiller l'état des patients atteints de la COVID-19 Nous avons des opportunités de financement pour les innovateurs canadiens qui peuvent aider à lutter contre la pandémie COVID-19. L'Agence de santé publique du Canada et le Conseil national de recherches du Canada sont à la recherche d'un kit de diagnostic aux points de service et à domicile. Le Conseil national de recherches du Canada a également modifié son Défi du système de capteurs peu coûteux pour surveiller l'état des patients pour répondre aux besoins de COVID-19. Vous pensez pouvoir résoudre l'un de ces défis ? Participez pour avoir la chance de recevoir du financement pour prouver votre faisabilité de votre solution et la développer ! Possibilités de financement liées à la COVID-19 Want to change how you receive these emails? You can update your preferences or unsubscribe from this list. Vous souhaitez changer la façon dont vous recevez ces courriels? Vous pouvez mettre à jour vos préférences ou retirer votre nom de la liste de distribution.

By: Jill Aitoro WASHINGTON — Less than a year after announcing plans to combine into a $121 billion company, Raytheon and United Technologies are officially no more — replaced by the combined entity Raytheon Technologies Corp., which kicked off trading Friday on the New York Stock Exchange. Listed under the ticker RTX, Raytheon Technologies began selling at $51 a share. With more than 866 million shares outstanding and a market cap of $74.5 billion, that price is bound to shift in the coming days, weeks and months. To put it in perspective, Raytheon closed Thursday at $122.43 a share, and UTC closed at $91.37 a share. With the merger, UTC shareholders owned 57 percent of Raytheon Technologies, and UTC will control eight of the 15 board seats. Tom Kennedy will serve as executive chairman, Greg Hayes as CEO and Toby O'Brien as chief financial officer. Planned divestitures will be completed post merger, though United Technologies did complete the spinoff of HVAC, refrigeration, fire and security solutions company Carrier Global Corp., as well as elevator and escalator manufacturer Otis Worldwide Corp. Both are now trading on the S&P 500. Amid the stock market fallout from the new coronavirus pandemic, Raytheon saw a bigger drop than most pure-play companies, likely due to the increased exposure to the commercial market that came with the merger. However, that could be short-lived, said Byron Callan of Capital Alpha Partners. “Raytheon has been the worst-performing stock [during the crisis] because they got tied into commercial aerospace through the merger," he told Defense News in an interview. “But going forward, that may be the most interesting [stock] of all because there will be a degree of balance.” https://www.defensenews.com/industry/2020/04/03/raytheon-technologies-corp-begins-trading-on-nyse/

By: Aaron Mehta WASHINGTON — The Pentagon is pushing back on reports that it seeks to classify previously public information about its future spending plans, with the department insisting that the transparency of this information that is public as part of the regular budget rollout process will not change. The Future Years Defense Program provides spending projections for how the Department of Defense plans to invest its money over the coming five-year period. While the numbers are not locked in and regularly change year by year, the projections can provide valuable information to the public and industry about what the department views as priorities and where programs might be going. Information about a legislative proposal from the Pentagon seeking to classify FYDP data was published Monday by Steven Aftergood of the Federation of American Scientists. Aftergood wrote that the proposal would “make it even harder for Congress and the public to refocus and reconstruct the defense budget.” It is traditional for FYDP numbers to be included as part of the budget rollout, as well as be included in program-by-program breakdowns. However, Pentagon spokesman Chris Sherwood said that the legislative language is not aimed at information that is currently made public during the normal budget process. Instead, it is focused on a requirement in the fiscal 2018 National Defense Authorization Act on what is provided to Congress. “The 2018 NDAA required a formal unclassified version of the FYDP report,” Sherwood said in a statement. “The Department has not to date complied with that request because we are very concerned that providing that level of detail for the outyears might put critical information at risk and breach classification standards." “The DoD is exploring all possible paths forward, including requesting relief from the new requirement, as well as trying to determine how much information can safely be public in addition to all the budget information already made available,” he continued. “It is important to note that there is a difference between a formal Unclassified FYDP report and the unclassified outyear data for any given program that people often refer to as the FYDP for a program. We have and will continue to provide the classified FYDP as we have since 1989. There will be no reduction in any currently provided information,” he added. Asked specifically if that meant information about the FYDP that is usually included in public budget documents provided to media, Sherwood said: “The legislative proposal would not affect or change how DoD currently provides budget information.” Whether that assurance will satisfy advocates of keeping the FYDP open is uncertain, but the DoD appears behind the ball on convincing Congress that less transparency is a good idea. Speaking to reporters on Thursday, Rep. Mac Thornberry, R-Texas., the ranking member on the House Armed Services Committee, said he had only learned of the proposal when reports emerged, but indicated that any attempt to limit information about the FYDP is unlikely to meet a warm reception on Capitol Hill. “Obviously my inclination is: That's a bad idea,” Thornberry said. “I have not heard the department's justification for it. But I would say they've got a pretty high evidentiary threshold to overcome, to get Congress [to] go along with classifying the five-year FYDP.” Thornberry said he understands the concern, elucidated in the DoD proposal, that modern computing techniques could allow a foreign competitor to gather information about American plans from the data. But taxpayers deserve to know how their money will be spent in the future, the former committee chairman said, and that outweighs such concerns at the moment. The House believes “that the greater good is the transparency with the American people. So that's our default position, I think in both parties,” Thornberry said. “They hadn't made their case to me yet, but I think it's going to be hard for them to overcome that default position.” The Pentagon ultimately benefits from more openness when it comes to discussions on the budget, said Tom Mahnken, a former Pentagon official who is now president and CEO of the Center for Strategic and Budgetary Assessments. “It clearly is important to protect certain aspects of the U.S. defense budget from disclosure. The Defense Department has successfully met that challenge for decades,” Mahnken said. “But there is also a compelling case for disclosing how the Defense Department plans to spend its resources and whether its budget is aligned with its strategy. “Transparency ultimately helps the Defense Department make the case for the resources it needs in Congress as well as the public at large.” https://www.defensenews.com/pentagon/2020/04/03/pentagon-denies-it-seeks-to-hide-future-budget-information/

Sean Broderick The Coronavirus Aid, Relief, and Economic Security (CARES) Act sets up several new programs and adjusts some existing ones—each aimed at pumping much-needed cash into specific sized organizations or industry sectors. Large portions of the U.S. commercial aviation industry got specific carve-outs in the $2 trillion economic relief package enacted March 27. While these loans and grants will help air carriers and other key industry players offset some financial strife caused by the COVID-19 outbreak, most suppliers will be looking elsewhere for money. Thankfully, CARES gives even the smallest companies options. Topping the list is the Paycheck Protection Program (PPP), a $349 billion pot of money designed to enable the U.S. Small Business Administration (SBA) to provide “expeditious” relief to eligible businesses, an interim final rule published late April 2 said. PPP provides SBA-guaranteed loans equal to up to 2.5 times monthly payroll costs, with a $10 million cap, that businesses can use to keep the lights on for two months. Eligible expenses include payroll, health care benefits, rent and utility payments, as well as some interest expenses. The loans come with a 1% interest rate, maximum two-year terms, and require no collateral or personal guarantees. But they will be forgiven if 75% or more of the funds are used to cover payroll. Among the PPP's wrinkles: only the first $100,000 in an employee's salary can be counted when calculating payroll expenses. Contractors are eligible to apply for their own relief, so their costs can't be counted at all. Also ineligible for counting in the payroll expenses: salaries of employees that live outside the U.S. Businesses can only apply for one PPP loan, so the SBA advises applying for the maximum eligible amount. Determining eligibility is straightforward: a business must find its North American Industry Classification System (NAICS) code, check the maximum employee size for its business category, and compare it to its staff size. While the general small-business benchmark is 500 or fewer employees, aerospace has many exceptions. The threshold for aircraft engine and engine parts manufacturing/maintenance (NAICS code 336412) is 1,500 employees. For aeronautical instruments manufacturing (334511), it's 1,250. If your business falls into multiple codes, the one that generates the most work determines your NAICS code. SBA has an online tool that walks through the process at www.sba.gov/size-standards. The PPP application window opened on April 3. The program's sheer size—SBA's cornerstone 7(a) loan program issued about $20 billion in loans in all of 2019—and its first-come, first-served basis triggered a massive, front-loaded surge of applications. The interim final rule contained key guidance that banks needed to service the program, which meant not all lenders were ready to start processing applications right away. But the situation was improving hourly throughout the day April 3 as more lenders came onboard. Another SBA program that CARES leans on is the Economic Injury Disaster Loan (EIDL). Capped at $2 million with a 3.75% interest rate, EIDLs can be used for a wider variety of expenses than the PPP. Unlike the PPP, however, they are not eligible for forgiveness. CARES also gives the U.S. Treasury Department the authority to make special loan allowances for medium-sized businesses, generally those that are too large for an SBA program and have up to 10,000 employees. Among the caveats: maintaining or restoring 90% of its equivalent workforce as of Feb. 1, 2020 within four months of the official U.S. declaration that the COVID-19 public health emergency is over. Further guidance from Treasury, including basics such as how to apply, are in the works. Some suppliers are eligible to apply for shares of the aviation-specific funds set aside in CARES. FAA-certificated repair stations are mentioned as being eligible for some of the $29 billion in CARES loans, specifically from the $25 billion pot allocated for passenger airlines. But the law says they should exhaust other available CARES funding options first. There is another pot of $17 billion in loans set aside for companies critical to national security. Neither the law nor Treasury defines the term, however, so eligibility remains unclear. If Treasury looks to the U.S. Department of Homeland Security's Critical Infrastructure guidance, aircraft and engine supply-chains would qualify, as would repair stations. Payroll grants for suppliers are murkier. CARES language has a $3 billion set-aside for contractors that both work for airlines and are on-airport. Many maintenance providers would seem to fit here, though Treasury will have the final say. Industry trade associations and legal experts working the issue are learning more by the hour. Their one common piece of advice for businesses: consult with an attorney or tax expert, determine what your business qualifies for, and weigh your options. Many businesses will qualify for multiple programs that cannot be mixed, creating an either/or choice that comes down to the various strings attached to each. https://aviationweek.com/air-transport/aircraft-propulsion/daily-memo-emergency-funding-suppliers-aftermarket-providers

By: Valerie Insinna WASHINGTON — The U.S. Air Force will release $882 million to Boeing that it had retained due to ongoing technical problems involving the KC-46 tanker, the service announced Thursday. The move is meant to help the company make ends meet during the novel coronavirus pandemic. “This agreement provides Boeing $882M of withheld payments for previous non-compliance in 33 KC-46 deliveries,” the service said in a statement. “This withhold release is in line with Department of the Air Force and Department of Defense policies to maximize cash flow, where prudent, to combat coronavirus impacts on the industry base." When the U.S. Air Force agreed to take delivery of the first KC-46 tanker in January 2019, it made clear to Boeing that it still maintained a significant piece of financial leverage. The service could withhold a maximum of $28 million every time a new KC-46 was delivered — about 20 percent of the total sum due to Boeing. Air Force officials said they would hold back those funds until they saw measurable progress in fixing technical deficiencies, particularly the tanker's troubled Remote Vision System. By January, when Boeing had delivered 30 planes, the service had withheld about $800 million, according to Defense One. The Air Force and Boeing on Thursday announced a final agreement to fix the RVS, the imaging system used by boom operators to see the position of the receiver aircraft and the movements of the boom itself. According to the deal, Boeing will pay for both incremental fixes to current RVS software and hardware, as well as a complete redesign of the system with new cameras, processors and computers. Speaking with reporters about the decision on Thursday, Air Force acquisition executive Will Roper stressed that the service will be able to re-enact the cost penalties if Boeing's performance begins to slip. However, the service wanted to ensure that Boeing has the funding it needs to begin the RVS redesign, which it is calling RVS 2.0. “Have we given up our leverage? No, I think we've used it well," he said. “Part of what we committed to Boeing is to do an expedited review over the next 120 days for the 159 outstanding noncompliances. Boeing asserts that they have addressed those noncompliances, and we are going to review those quickly. We will not instate withholds over the 120 period, but if we put that some of the corrections that have been put in place don't make our requirement, then we will start withholds again.” As the largest maker of commercial planes in the United States, Boeing has been hit particularly hard by the COVID-19 pandemic, which has spurred travel restrictions and called into question commercial airlines' ability to pay for Boeing aircraft already on order. Meanwhile, Boeing announced last week that it would shutter operations for two weeks at its facilities in the Seattle, Washington, area due to the high number of COVID-19 cases in the state. Those production operations include the manufacturing of the KC-46 at Everett and the P-8 submarine-hunting plane in Renton. The Air Force intends to buy 179 tankers over the KC-46 program of record. https://www.defensenews.com/air/2020/04/02/boeing-to-get-882m-in-withheld-kc-46-funds-back-for-covid-19

Par Michel Cabirol Lockheed Martin a signé avec Sofia un contrat évalué à 512 millions de dollars pour la vente de huit F-16 Block 70. Et la Bulgarie volera américain... comme beaucoup de pays européens. Le ministère de la Défense américain (DoD) a annoncé jeudi que Lockheed Martin avait signé avec Sofia un contrat FMS (Foreign military sales) évalué à 512 millions de dollars pour la vente de huit F-16 Block 70. Fabriqués dans la nouvelle ligne de production de F-16 à Greenville (Caroline du Sud), les avions de combat américains, qui devraient être livrés en 2027, vont remplacer une flotte de 15 MiG-29 bulgares (sur 19) encore en service jusqu'en 2029. Membre de l'OTAN, la Bulgarie compte également dans sa flotte huit Sukhoi, dont deux d'entrainement. La Bulgarie assurera la défense de son espace aérien Sofia avait opté en décembre 2018 pour les F-16 parmi trois autres appareils en compétition : le F/A-18 Super Hornet de Boeing, l'Eurofighter Tranche 1 d'occasion (Italie) et le JAS-39 Gripen C/D (Suède). Puis, le Département d'État américain avait approuvé cette vente en juin 2019. Il avait évalué la vente ainsi que le soutien des appareils à 1,67 milliard de dollars. Cette vente avait alors estimé le DoD contribuera à améliorer la sécurité d'un allié de l'OTAN et d'un partenaire clé des États-Unis pour assurer la paix et la stabilité dans cette région. Elle permettra également à la Bulgarie d'assurer la défense de son espace aérien et d'être interopérable avec les États-Unis et l'OTAN. Selon le DoD, la Bulgarie s'appuie actuellement sur les États-Unis et le Royaume-Uni pour opérer des missions de police aérienne bulgares. "En acquérant ces F-16, la Bulgarie sera en mesure d'assurer la défense de son propre espace aérien et de ses frontières", avait expliqué le DoD. https://www.latribune.fr/entreprises-finance/industrie/aeronautique-defense/la-bulgarie-va-voler-americain-et-achete-8-f-16-block-70-a-lockheed-martin-844265.html

CAE announced that it has taken a series of flexible measures to protect its financial position in response to the COVID-19 crisis and mitigate the impact on its employees. The measures include temporarily suspending its common share dividend and share repurchase plan, as well as temporarily laying off 2,600 of its 10,500 employees and placing another 900 employees on a reduced work week. CAE also announced that, in an effort to help save lives, it is developing an easy-to-manufacture ventilator which will provide life support to patients in intensive care. “CAE continues to support its customers as the training services we provide are considered essential around the world. Our civil aviation operations are most affected by the unprecedented disruption of the global air transportation system. At the same time, our defence and security operations are less impacted because CAE provides mission critical services worldwide,” said Marc Parent, CAE's president and CEO. “We entered this crisis from a position of strength with a leading market position, a balanced business with recurring revenue streams, and a solid financial position. Taking decisive yet flexible action will help to protect our people and operations over the short-term and gives us the necessary agility to resume long-term growth when global air travel returns. Our employees have always been at the core of CAE's success, we regret the hardship these temporary measures will cause those affected, especially during these difficult times, and we are grateful to all our employees for their contribution and dedication.” To mitigate the number of temporary layoffs, CAE significantly reduced capital expenditures and R&D investments. The company also announced cost-containment measures, including salary freezes and salary reductions for staff not affected by reduced work weeks (50 per cent for the CEO and executive team, 30 per cent for vice-presidents, 20 per cent for directors and managers, and 10 per cent for group leaders and employees). CAE is working to access government emergency relief measures and wage subsidy programs in its main operating jurisdictions and will assess their impact on its mitigation plans. As details of government assistance programs around the world are finalized, CAE will do everything it can to recall as many employees as possible. Dividend and share repurchase plan (NCIB) suspended CAE's board of directors has approved the suspension of dividend payments to common shareholders until further notice and will review this position on a quarterly basis. Core to its capital allocation priorities, CAE remains committed to paying dividends over the long-term that are commensurate with the long-term growth of its business and will seek to resume dividend payments as soon as it is appropriate. CAE's board of directors has also approved the temporary suspension of all share repurchases under its normal course issuer bid program. CAE provides essential services critical to maintaining customers' operations In civil aviation, training is highly regulated, and for pilots to remain active and to continue to hold their certifications, they must train regularly — usually every six to nine months. While training activities related to new pilot training have decreased substantially, many airlines and business jet operators have continued to conduct recurrent training to maintain the certification of their existing pilots. Two-thirds of CAE's more than 50 civil training centres worldwide continue to be operational, however training utilization is lower than usual as a result of restrictions from border closures and lockdowns that have forced temporary closures and disruptions to operations. In defence and security, as underscored by governments worldwide, CAE's work is considered essential, and its employees are deployed worldwide to actively support training and readiness requirements. Over 90 per cent of CAE's operational sites are still delivering services to support defence forces who must always be prepared and ready in the interest of national security. Playing a role in saving lives in the fight against COVID-19 To help in the fight against COVID-19, CAE Healthcare engineers and scientists have designed in 11 days a simple, maintainable, easy-to-manufacture ventilator prototype to provide life support to patients in intensive care. CAE is currently sourcing components in order to begin production of this ventilator as soon as it is approved by Health Canada. “CAE has employees around the world, and we are all proud of the impact we can have by putting our expertise to work to create a ventilator that can help save lives in the fight against COVID-19,” said Parent. “Once this prototype is approved by public health authorities, we are looking at manufacturing thousands of units in our Montreal plant and in other sites over the next few months.” CAE is also providing complimentary training seminars on how to prepare healthcare workers in the fight against COVID-19. The CAE team is launching simulation-based training solutions, both web and hardware based, to train personnel in the safe practice of ventilation and intubation, which is key to saving lives. This is even more critical right now when ventilation and intubation is being done by healthcare professionals who are not trained for these complex procedures. https://www.skiesmag.com/press-releases/cae-to-implement-temporary-layoffs-amid-covid-19-pandemic