FAQ

ADDITIONAL QUESTIONS FROM EMPLOYEES

July 17, 2012

Top 10 questions from employees

Number 1. Question Are there going to be regular communications and bulletins from CAE? Response Yes, there will be regular communications. We will also issue updates via an e-newsletter when necessary. The Ambassador will remain available with specific e-mail address where you could send your question at all time. When there are specific achievements or upcoming milestones, the ambassador will schedule a lunchtime meeting. The intended organizational changes may cause redundancies in the AbInitio and type-rating training organizations. We will follow the appropriate local consultation process as some group of employees may be subject to a selection process. More details will be communicated as soon as we can.

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If there are redundancies due to the new integrated organisational structure, will these be limited to ex-OAA staff or will they be assessed based on who is best for the job from ex OAA and existing CAE staff?

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Are there any changes to employees current Your current HR programs, policies and procedures still apply. We will terms and conditions proposed? If yes, when will analyze and review the HR practices. HR sessions will be organized in these be advised? the next few weeks in order to share the result of this analysis with employees. Will there be opportunities for career advancement now that CAE has acquired OAA? What do we need to say to contractors? What does CAE stand for? Yes, there will be opportunities to apply for positions within the CAE organisation both within the UK, other locations in Europe and overseas. It is business as usual for the time being. CAE was originally an acronym which stood for Canadian Aviation Electronics, which is what the company was first called when it was founded in 1947. Now however, CAE is actually our name and it is no longer an acronym (ie: it should not be spelled out). The role of the buddy is to focus on operations. Buddies will work closely with business primes in order to gain a good understanding and identify differences between the two organizations.
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Can you give me more details on the buddy system?

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Is there any local initiative needed, when it comes to ordering branding material such as letterheads, logos, and so on? Would it be possible to have a CAE Powerpoint template for use in a number of presentations planned from next week onwards? Would it be possible to have a CAE block of signature for the e-mails? How do we need to respond to our customers?

We will be providing you with new logos in different formats as well as branding guidelines that will answer all of your communication needs as soon as we can. This will come in the next few weeks, and be fully available for use

Please reinforce to your external clients that our customer service remains unchanged. We are working to make this a seamless transition with uninterrupted services. As a result of the integration of our two companies, our customers will have access to an extended network of training locations and to a more complete portfolio of services, while continuing to benefit from excellent service. Oxford / Parc Aviation 'switch boards' or any other services requiring answering to outside calls (customers or other interfaces) should be changed immediately to the new brand, as detailed below : a. TYPE: CAE b. FTO: CAE Oxford Aviation Academy c. Parc: CAE Parc Aviation

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How should the OAA Switchboard be answered now?

Questions from Gatwick and Heathrow Employees

Number Question 1. What should we tell Contractors? 2. OAA has intellectual property rights with THALES? What will happen now that CAE has acquired OAA? How should the OAA Switchboard be answered now? Response It is business as usual we are not planning any changes with contractors for the time being. These licenses will continue to remain in place with the entities to whom they were granted as long as the devices are not relocated, transferred to a different legal entity and/or maintained by a different maintenance provider. Oxford / Parc Aviation 'switch boards' or any other services requiring answering to outside calls (customers or other interfaces) should be changed immediately to the new brand, as detailed below : a. TYPE: CAE b. FTO: CAE Oxford Aviation Academy c. Parc: CAE Parc Aviation Although these names may have changed for branding purposes, none of the legal names of the companies have changed yet. Hasnain Mohsin is the buddy for the Gatwick and Heathrow sites. He will visit the sites regularly over the next few months to assist with operational queries, etc. Peter Niemy will work with Lloyd Watson to coordinate with customers. Dan Greenhill is the FTO head of sales and will work with the relevant person in the FTO organization. Security is dealing with this. We do not have CAE logos on visitor passes right.

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When is the Buddy system going to be put in place and who will be our buddy? The sales teams of CAE and OAA are no longer competing. What is the plan? Will we need to change the logo on visitor passes from OAA to CAE? We would require an official logo script, ASAP. Can you please let me know if we are able to use the CAE instructors for training? This would have the potential to help us to cover work that we are unable to find instructors for within our own database. Can you confirm if my customer mailing list has been contacted regarding the acquisition? Key contacts are in companies that include Chevron, BP, Royal Caribbean and Exmar.

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Yes, theoretically, we would be able to have a pool of instructors from the CAE and OAA sites. This can be reviewed further following the initial integration phase. No, the MCRM customer list has not been contacted and you can use the Why did CAE acquire Oxford? slide presented to employees on acquisition day to form the basis of discussions with your customers. If you need assistance, dont hesitate to connect with the Ambassador or the assigned Buddy at your location.
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Branding - Would it be possible to have a CAE Powerpoint template for use in a number of presentations planned from next week onwards? Are there going to be regular communications and bulletins from CAE?

We are presently in the process to finalize a detailed branding plan and this item will be included in the plan. We will share the branding guidelines which will include PowerPoint templates with employees shortly. Yes, there will be regular communications.We will also issue updates via an enewsletter when necessary. The Ambassador will remain available withspecific e-mail address where you could send your question at all time. When there are specific achievements or upcoming milestones, the ambassador will schedule a lunchtime meeting. A consultative process will be completed and will involve employee representatives. The intended organizational changes may cause redundancies in the Ab-Initio and type-rating training organizations, for both ex-OAA and existing CAE staff. We will follow the appropriate local consultation process as some employees may be part of a formal selection process. As always, we strive to be transparent & fair throughout the process. More details will be communicated as required to specific individuals. Your current HR programs, policies and procedures still apply. We will analyze and review HR practices. HR sessions will be organized in the next few weeks in order to share the result of this analysis with employees. That element is very important for CAEs approvals. CAE Regulatory Affairs staff has discussed this topic for a while now with EASA and European NAAs. EASA has not yet clearly answered this question and the national regulators are also seeking clarification from EASA. This being said, we think the acquisition of OAA will help CAE justify that for each of its European approvals, there is an anchor point located inside Europe, which might be tied to the definition of Principle Place of Business. These licenses will continue to remain in place with the entities to whom they were granted as long as the devices are not relocated, transferred to a different legal entity and/or maintained by a different maintenance provider.

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Will there be 1 to 1 consultations with members of OAA staff or will it only be in groups or departments? If there are redundancies due to the new integrated organisational structure, will these be limited to ex-OAA staff or will assessments be based on who is best for the job from exOAA and existing CAE staff? Are there any changes to employees current terms and conditions proposed? If yes, when will employees be advised? For compliance with European Aviation Safety Agency (EASA) regulations, where is CAEs Principle Place of Business in Europe?

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Will OAAs Boeing FSTDs be subject to New Owner License Agreements (NOLAs) with Boeing as a consequence of the CAE acquisition?

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OAA employees had been advised that there was a bonus opportunity when STAR sold the business. Can an update on this be provided?

An e-mail was sent by Brian Simpson to OAA employees on May 22 with the following information:
Dear Colleagues, When STAR Capital Partners initially invested in the business in 2007 employees were informed that when the company was sold 1% of the net sale proceeds (following repayment of borrowings) would be allocated to a bonus pool for distribution to employees. The payment of bonuses was subject to certain conditions being met, including the achievement of the February 2007 business plan. As you are aware on the 16th May 2012 Oxford Aviation Academy was sold to CAE. Unfortunately, the company was unable to meet the February 2007 business plan due to a range of factors including the Global Financial Crisis and down turn in the aviation sector. As a result of this there are no net proceeds for distribution to employees. Although it is disappointing that there is no benefit to be realised by employees from the staff bonus scheme the business has been acquired by a world class company. CAE is a global leader and pioneer for simulation based training for aviation and a great new owner for OAA. I wish you all the very best and every success for the future. Brian Simpson Group Chief Executive Officer

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When is the Company name officially changing?

CAE has acquired the shares of the top holding Company in Luxemburg. Although the ownership has changed, the employing entity in the UK remains the same and employees are still employed by the same company. However, the new brand is as follows: a. TYPE: CAE b. FTO: CAE Oxford Aviation Academy c. Parc: CAE Parc Aviation Although these names may have changed for branding purposes, none of the legal names of the companies have changed yet.

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What are the long term plans for the Heathrow training centre? What company name should we be using on purchase orders? Will there be opportunities for career advancement now that CAE has acquired OAA? The Engineering department is not available at all times to attend any further meetings that are organised. How can they be sure they are kept informed of any information that is given to employees? Will the Welcome Briefing from 17 May 2012 (presented by Glenn Frederick) be available for employees to view? Will the Company be preserving our current terms and conditions?

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All options are still to be fully examined and will depend on future plans and relationship with the current anchor customer. We will advise in due time. Although some names may have changed for branding purposes, none of the legal names of the companies have changed yet. Continue using the names on the POs until further notice. Yes, there will be opportunities to apply for positions within the CAE organisation both within the UK, in other locations in Europe, and overseas.

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Faye Denyer has been present at the Gatwick offices for some period of time month in her Ambassador role to answer questions. All employees also have the opportunity to email Gatwick-questions@cae.com. Any documents will be published on the OAA intranet and any important communications shall be issued to all employees by e-mail. Yes, the PowerPoint Presentation and Glenns narrative are being synched so that anybody who was not present for the meeting can review what was said. It will be provided to employees shortly. Your current HR programs, policies and procedures still apply. We will analyze and review HR practices. HR sessions will be organized in the next few weeks in order to share the result of this analysis with employees.

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Does CAE have an appraisal process?

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Is it possible to see an Organisation Chart for the Global CAE organisation and CAE in the UK? Within the scheduling/planning team, there are some group e-mails for the whole department and by device. Will we be able to get CAE email addresses set up in this format?

Yes, there is a Performance Feedback and Development Plan process. The process involves setting goals for each individual at the start of the financial year (April), conducting a 6-month Interim Review and then a Final Review at the end of the cycle. Discussions also take place concerning Leadership Attributes and the Development Plan of each employee. Yes. Organizational charts will be provided soon to employees.

Yes, the IT teams are looking into this and we will get back to employees with this information as soon as we can.

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As a result of the acquisition, will our IT equipment be updated?

An IT team from CAE visited the sites in the UK during the week of 21 May to look at the current OAA equipment. They will share the result of their analysis with employees. An IT team from CAE visited the sites in the UK during the week of 21 May to assess the current systems used by OAA. There are a number of major global systems that will be implemented when possible. CAE will also use this opportunity to assess the OAA systems to see whether any could be implemented within CAE. Yes, the IT team is looking into this.

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Are new IT packages going to be introduced?

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Our customers currently send their Navigation Databases to NavDB@oaa.com. Will this email address and recipients be included in the CAE e-mail? Is it possible to send me a CAE Finance Departments Structure for the UK please?

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Yes. Organizational structure charts will be sent to employees soon.

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When is a representative from the CAE training department going to be available to us? The Gatwick TRTO expires in September - is it going to be renewed or will it be merged with CAE's TRTO?

A member of the CAE Standards team will look to visit the Gatwick site within the next week

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We are currently considering a merger with our existing TRTO but will need to determine whether September is a feasible date. We will be able to tell more after the initial meetings with the relevant parties. One option would be to extend the OAA TRTO for a month or two if the CAA UK permits this. The training department has received requests CAE will need to see the OAA course footprint but the department should from customers for 737 type-rating training and continue to take bookings into their current course. currently courses are only scheduled until September - will they continue to teach this course in its current form or will the courses change to a CAE format? Will the Ground School When the TRTO changes, the paperwork will be updated accordingly. Paperwork/Documentation be changing?
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What do we need to say to contractors? Intellectual property rights with THALES?

It is business as usual for the time being. These licenses will continue to remain in place with the entities to whom they were granted as long as the devices are not relocated, transferred to a different legal entity and/or maintained by a different maintenance provider. The role of the buddy is to focus on operations. Buddies will work closely with business primes in order to have a good understanding and identify differences between the two organizations. CAE establishes training center locations based primarily to support anchor/partner airline customers (e.g. Iberia, China Southern, TAM, Air Asia), allowing us to build and grow our business around a solid base and to better leverage our fixed cost structure. Yes. CAE organizational structure charts will be provided to employees in the next Newsletter. We are currently conducting business assessments to better understand the differences between the two organizations. A lot of you have already been met in this regard. We welcome your input. If you did not have a chance to meet a direct counterpart from CAE, please address your feedback to your Ambassador. A typical CAE TC is led by a Centre Leader (reporting into the Regional Operations Director), with a Technical Manager, a Training Manager, a Customer Service Manager, and a Quality Manager (with a dotted functional line) reporting into him/her. Local IT support and Facilities (if in place) report into the Technical Manager. Training Admin including Document Control is done under the Training Department. Customer Services consists of Reception, CS Representative and Schedulers. Finance and Human Resources report in a dotted line to the Centre Leader. Under the current model, purchasing to support the local (technical) operations is mostly done locally. Depending on the size, this is sometimes combined with facilities management. Moreover, purchasing activities are supported centrally by GSS (Global Strategic Souring) in Montreal.
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Can you give me more details on the buddy system?

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What are the long term plans for the Gatwick training centre?

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Is it possible to have information on the Organizational Structure of CAE? When determining the new integrated organisational structure, who will be consulted to explain current department structures and responsibilities as part of this review?

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Would it be possible to see the organisational structure of an existing CAE site (e.g. Burgess Hill) to see how CAE is typically structured per site?

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How is the purchasing and procurement managed at other CAE training centres? Is it local or centralized?

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Purchasing received some requests to order new uniforms for the Engineering department prior to the acquisition. This includes shirts, polo shirts and jumpers which include the OAA logo. Should these now be ordered with CAE logos? I am due to start the annual HR process of setting Objectives for the Team. Given the perceived uncertainty of each individuals position and the probable change in working practice, what advice can you give on how I should approach this task? What do the Engineers wear? Is there stock somewhere or a supplier we need to get in touch with to place an order?

Uniform orders should be put on hold for the time being. A new policy regarding uniforms will be communicated by CAE Ambassadors to employees by the end of June. Going forward, all new uniforms will need to carry the CAE logo. We will be providing you with a formal training on our review process referred to as PFDP during the month of July. This process will be managed this year through our HRIS system called Workday.

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A new policy regarding uniforms will be communicated by Ambassadors to employees by end of June. Uniform orders should be put on hold for the time being. Going forward, all new uniforms will need to carry the CAE logo. In order to optimize our Simulator Maintenance function and achieve efficiency gains, we are in the process of reviewing the organizational structure, shift patterns, number and composition of the workforce (of each EURAF TCs) and putting forward one blueprint to work towards.

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Would it be possible for you to supply an example of a typical Engineering Department Structure for a European Training Site? I am keen on ensuring that I vote for the most suitable Employee Representative for the forthcoming consultation process, knowing that the above is likely to assist me in making that choice.

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OAA have secured and are in the process of securing a number of leased training devices from competitive companies to CAE. CAE manufactures equivalent devices. Will some / all of the leases be terminated so that CAE devices can be utilized instead?

We will know when we will have progressed on the integration activities. We expect to have completed the majority of the integration activities in the next 3 to 4 months.

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Reporting Lines: Will the Australian GM report directly to Suzanne Roy or via Anthony his current (Oxford Aviation) Manager? Finance currently reports into their office at Gatwick will this reporting line change, and if so, how? What other changes of reporting structure will take place?

Suzanne Roy is the Business Leader of the overall Ab-initio division. We are still conducting business assessments at this point in time in the different locations. We should be in a position to announce the overall organizational structure as well as reporting line during the month of July.

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The Jeppesen agreement is up for renewal on Each CAE centre currently has a separate contract with Jeppesen. We have 31 May 2012. Should this be renewed or would explored the possibility of a single arrangement for all centres but, so far, without it be covered by CAE now? success. We will continue to do so but, in the meantime, CAE OAA should renew their contracts. Nav DB (arinc 424 data), Obstacle DB, eCharts: CAE has a global agreement. We can extend to OAA, if access to this data is required. Jepp View: every license has 4 seats per agreement, reached with Itash; every TC buys this directly from Jeppesen. OAA should continue buying directly from Jeppesen at this time.

Additionally, we request that OAA send us their current agreements with Jeppesen so we can review against whats in place and suggest a way forward.

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Could you please advise us of the plans for rolling out the CAE Code of Conduct? As employees are required to adhere to it is the plan to ensure they have a good understanding of the content?

As previously mentioned, we are asking each employee to review the Business Code of Conduct policy, available on the share drive, at this time. When employees will have access to our system called Sigal in the month of July, they will be asked to attend a webinar on this specific subject.

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51.

OAA employees currently use laptop bags with Oxford logos on them. Will they continue to use them or will we provide a CAE one? Or should their IT department order plain unbranded ones?

Our understanding is that there are few Oxford branded laptop bags, purchased a few years ago. Generic laptop bags will be provided when an employee receives their new laptop as part of the routine refresh program within CAE. In the meantime, logo-bearing bags that are frequently used in customer-facing environments should be replaced with non-branded bags by placing an order through the regular procurement channels. The collective consultation processes are managed by the regional management team of each division. People from the integration team are involved when/if required. The intention will be to register a trade name for Gatwick and eventually change the legal entity. These names are currently under review for approval. The address itself should not be changing (only the name), but until the above changes have taken place, everything is status quo.

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Are integration teams going to be involved with the redundancy consultation process? Should we change the delivery address that goes out on our Purchase orders, as at the moment it says they delivery address as: Oxford Aviation Academy, Fleming Way, Crawley, West Sussex, RH10 9UH. Shall we change this to CAE - Gatwick? Otherwise delivery drivers wont know where to deliver things. Branding on the franking machine and the badge printer on the front desk need to be changed. Is this something that we should be organizing locally?

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Yes, you can go ahead and update the branding locally and have global communications review before finalizing.

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Questions from Oxford employees

Number 55. Question Can you give us a view on the different strategies for CAE Oxford Aviation Academy? Response Agreed on a common ATPL : end of May o Workshop held at Oxford with HOTI and CGI, and some CFIs. o Some few points still need to be discussed for final recommendation o Deployment will start after NAA approval Other training elements will be reviewed and aligned with the above team. Detailed plan will follow. Few elements are as follows : o Computer Aided Instruction updated and implemented o Basic Flying course, Upset Recovery Training, Pressure Chamber implemented o Workshop to take place on MPL to ensure alignment on the way forward in relation to the different programs o Align Aviation English Language program strategy and implement within the 100 integration days Align on one common Customer Services and Screening / screening process and implement within the 100 days All facilities related topics will be addressed and way forward established By end of next week, we will have most functional plans completed and being implemented in coordination with OAA peoples. LMS / LCMS / CMS : Analysis currently being done, strategy and plans going forward should be finalized shortly. We are currently reviewing the different program offerings. We will be able to articulate a final strategy following our review and detailed discussion with the relevant persons at OAA. In our plan to establish commonality and standardization in our training programs, we are having a review of all relevant elements (e.g. student manual, flight manual, quality and safety). We have a tight schedule for implementation.

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56.

Can you tell us where the 8 Ab-Initio schools are located? What does CAE stand for?

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You mentioned that you will take time to study PARC due to the nature of the business. Will you make any changes to the TYPE and FTO business, which you have more knowledge on?

Amsterdam, Brussels, Douala (Cameroun), Evora, Gondia (India), Perth, Phoenix and Rae Bareli (India). For more info, visit: http://www.caeglobal academy.com CAE was originally an acronym which stood for Canadian Aviation Electronics, which is what the company was first called when it was founded in 1947. Now however, CAE is actually our name and it is no longer an acronym (ie : it should not be spelled out). The Ab-Initio flight schools will be brought together with the CAE-operated flight schools and our CAE-operated network will be known as CAE Oxford Aviation Academy. Leader: Suzanne Roy, Vice President, CAE Oxford Aviation Academy. We expect to have completed the majority of the integration activities in the next 3 to 4 months. Type-rating training centres become part of Civil training and services and are branded CAE. Jan van Engelen, Regional Business Leader, Europe Civil Training Services will be the leader for Europe centres. Kevin Speed, Regional Business Leader, Asia Civil Training Services, will be the leader for the Hong Kong centre. Jan and Kevin will work closely with Mike Humphreys over the coming weeks to finalize integration activities. We expect to have completed the majority of the integration activities in the next 3 to 4 months. As part of our strategy, we will be looking at growing Oxford FTO being our main flight school in Europe. We are currently looking at our different strategies to increase our offering in Europe and abroad, considering the different footprint we have in Europe, and globally in the Academy. We held a workshop with the relevant people and review the different MPL programs. Part of the decision making was to ensure we could offer a given customer a program that will meet their requirements and constraints. A workshop took place week beginning 18 June in Oxford.

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Will the core of OAA FTO activities be located in Oxford? In other words, will the Oxford operations grow?

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What are your current and future plans for MPL?

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Who from CAE will be permanently located at The majority of employees will remain in the same work location. Oxford? We will know when we will have completed the integration activities. We expect to have completed the majority of the integration activities in the next 3 to 4 months.
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Do you foresee any increase in instructional capacity at Oxford (resources and personnel up and down at Oxford)? Can you give us more branding details? Will we re-brand uniforms, etc.?

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The intended organizational changes may cause redundancies in the Ab-Initio and type-rating training organizations. We will follow the appropriate local consultation process as some groups of employees may be subject to a selection process. More details will be communicated as soon as we can. For the time being, our high-level branding strategy is the following: The Ab-Initio flight schools will be brought together with the CAEoperated flight schools and our CAE-operated network will be known as CAE Oxford Aviation Academy Type rating training centres become part of Civil training and services and are branded CAE.

CAE Parc Aviation is a new solution for CAE and completes our offering. It will be known as CAE Parc Aviation and will operate the way it is operating today. We are not expecting to make changes to this organization in the near future, other than aligning business processes and policies. We are presently developing a detailed branding plan and it will be communicated to you shortly. 64. Can you give us more details on FTO strategy? The Ab-Initio flight schools will be merged with the CAE-operated flight schools and our CAE-operated network will be known as CAE Oxford Aviation Academy. Leader: Suzanne Roy, Vice President, CAE Oxford Aviation Academy. Suzanne will work with Anthony Petteford over the coming weeks to finalize integration activities. We expect to have completed the majority of the integration activities in the next 3 to 4 months. We are currently in the process to finalize the fleet replacement strategy and plan for the entire Academy. Final plan should be announced by end of July. Yes. As a CAE employee, you become a member of a larger company with a global footprint and global career opportunities. As is CAEs practice, jobs will be posted and you will have the chance to explore these opportunities. You can apply to new positions now through this address: www.cae.com/careers.

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Do you have any investment plan/asset?

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Are there any opportunities for growth within CAE?

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What will happen with my pension provision? Are the conditions be changed?

In the short term, your current pension plan will not change. We will analyze and review HR plans and HR sessions will be organized in the next few weeks in order to share the result of this analysis with employees.

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Can you give me more detail on the FTO Quality Management System?

The CAE QMS uses a standardized QA/CI operational oversight approach to ensure Consistency of purpose and objectives across the global locations. A Quality Monitoring program is used to ensure regularity and business requirements are exceeded. The System is governed from the corporate Office in Montreal and then managed at a training centre level.

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Can you give me more detail on the Safety Management System, and the different practices?

The Safety team is committed to achieving the highest level of safety by meeting or surpassing regulatory requirements, by auditing the safety implications of our activities, by identifying areas for improvement through incident reporting, investigation and risk assessment, and by encouraging the open and honest reporting of safety issues. The AQD Safety System is used to monitor Safety reporting and ensure continuous improvement. A trial has taken place using Flight Data Recorders on board our aircraft and then using the flightscape debriefing tool for debrief analysis. All flights have to have a FRAT (flight Risk Assessment Tool) completed to ensure risks are identified and mitigated and if cannot be mitigated then no fly.

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70.

CAE has only 8 years of ab initio compared to Oxford having a long history. How much is CAE expecting to learn from Oxford?

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Do you have a fleet renewal strategy, and do you have the intent of changing Oxfords fleet? What is the strategy behind the logo (e.g. uniform, lanyard, website)? What is the strategy forward on OAA media, do you intend to keep the people and use Oxford as a base?

In establishing the CAE Global Academy, CAE has acquired a few experienced organizations over the years, such as: CAE Global Academy Amsterdam Nationale Luchtvaart School (NLS) Founding member of CAE Global Academy Oldest FTO in Europe, established in 1927 CAE Global Academy Evora, Portugal Formerly Academia Aeronautica de Evora Founding member of CAE Global Academy Founded in 1999 Performed flight training for CGA Amsterdam Now main location for JAR Acclimatization training CAE Global Academy Brussels Sabena Flight Academy (SFA) Founded in 1953 Became a member of CGA in 2008 TRTO experience & know-how CAE Global Academy Phoenix Former Sabena Airline Training Center Fair weather training location for JAR training Also running FAR, DGCA, CAAV, CAAC programs CAE recognizes the reputation and significant experience of OAA, and will take time to understand the practices and training programs being offered by OAA. All of those will be considered in the plan forward. Together, we will be better placed to increase our offering to customers and create more opportunities for the cadets. We are currently in the process to finalize the fleet replacement strategy and plan for the entire Academy. Final plan should be announced by end of July. We are presently finalizing a detailed branding plan and this item will be included in the plan. We will share the branding guidelines with employees shortly. We are in the process to review OAA media with the OAA team, understanding the scope, mandate and current offering. We will be able to articulate very soon a strategy and plan forward. We are looking at building on the structure already in place.
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Have you decided on the OAA media branding? What is your website strategy o CGA and Oxford have their respective site o Currently in the process to change the website, and would like to have the new logo Concern about airlines or B2C will be dropping the Oxford in the logo, using the first part, which is CAE. What will happen with their brand?

We are finalizing the branding and will share more details with you shortly. We are presently developing a detailed website plan and this item will be included in the plan. Details will be communicated to employees shortly.

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We are presently finalizing a detailed branding plan and this item will be included in the plan. Details will be communicated to employees shortly. We recognize that the Oxford brand is a strong brand with longstanding pedigrees of excellence and credibility in the market. We will take that in consideration when developing the plan. CAE performs Maintenance Training globally for helicopter, business aviation, and commercial aviation operators and MROs. Approx. 60 colleagues are serving a variety of customers mainly in northern Europe, the Americas, and Austral-Asia. We utilize state-of-the art technology (Simfinity) and courseware to deliver about 300 different aircraft specific courses. In addition, we have teamed with Honeywell to provide Maintenance Training support for all operators and maintainers of Honeywell engines, APUs and Avionics. For more information: http://www.cae.com/en/aviation.training/technical.training.asp Priority is to place all the cadets. No favoritism will be done. We have to respond to customer requirements and needs. We will continue to fulfill agreements with customers. The flight school network is now fully owned by CAE, which is a world leader in simulation and training, with experience in the Ab-Initio training as well. Both brands have recognition in the market. By keeping the two names, we leverage the best of both worlds. We will continue to answer UK-based customer demands based on their specific requests.

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Where do you perform aircraft maintenance? What are your policies and expertise in the field?

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Concern about CAE favoring cadet placement of former CGA and not at the same level for Oxford Why you didnt keep only the Oxford Aviation Academy in the logo, why put CAE?

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What about their UK placement, do we place them (EJ) all, or are we splitting the number of opened position between them and CGA? (which they will lose opportunities If they are finishing their training as part of Oxford)

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Could we have a bridge mechanism between the modular training and integrated training? (does not exist yet) Bid market in France, but the French dont accept the CAA UK; so if a license conversion training would exist, we would get market. Some came and are asking whether it is possible to be employed with QATAR or Ethiad, as at Oxford those airlines did not want to take them Where do we see our business future?

We are planning to allow this request if possible. This will be documented as part of the training manual.

82.

83.

This is an interesting question and more context is required around this question as a fundamental intention of JAA and EASA material is that member States participate in the mutual recognition of each others work as much as possible. We will put forward cadet names to Qatar and Ethiad, as this is part of our cadet placement process. Cadets will be provided the opportunities, as needs are identified with those airlines. The objective is to ensure our offering is complete and to fulfill customer requirements. It also needs to comply with their special needs. The intent is to reach out more to emerging markets and globally provide high quality training to our entire customer base. We are currently in the process of reviewing the different training offerings, work being done jointly between all Head of Training, and other relevant parties. When this review will be completed, we will provide more information about that. Concerning FNPTs, CAE is not currently manufacturing FNPTs. However, CAE is reviewing its portfolio of simulators and is in the process of finalizing its decision on the way forward to fulfill FTO requirements. The information should go through your current Ambassador or through the Human Resources representative of your division (Angela Mischnik for Type, Marco van Djiun for Ab-initio and Manon Caron for Parc).

84.

85.

Do you intend to keep JET training o Would you be selecting the Mechtronix device? o Do you design & manufacture FNPTs?

86.

How can we voice our views or opinions on how we think the organisation should be formed?

87.

How will leave booking, uniform order and casual staff time sheets be completed going forward if they cannot be completed in Workday?

We have someone from HR as well as someone from the IT group looking at the system in more detail to compare the findings to our current processes.

19

Questions from Melbourne employees

Number 88. Question Who has been contacted at CASA? (re: change of ownership), and what were they sent?
CASA (Australian Aviation Authority)

89.

Contact with Customers We understand that all customers will receive a communication will Oxford staff see this before it goes out? Are any Oxford executives involved in writing / delivering this communication? May we presume that all customers will receive identical communication?

Response Dominic Lazarus from CAE Regulatory Affairs sent 3 different letters to CASA about the change of ownership. Please feel free to get these letters from Dominic if you need them. CAE and OAA management are working together and are in the process of contacting all clients and briefing them. There is no requirement for you to proactively contact your clients. Please reinforce to your external clients that our customer service remains unchanged. We are working to make this a seamless transition with uninterrupted service. As a result of the integration of our two companies, our customers will have access to an extended network of training locations and to a more complete portfolio of services, while continuing to benefit from an excellent service. The communication messages for our various customers will be consistent and integrated. Fleet: We are currently in the process to finalize the fleet replacement strategy and plan for the entire Academy. Final plan should be announced by end of July. Building: we are in discussion with the Airport owner on a way forward. We will be able to provide a response very shortly Facilities: As part of our plan, we have to review operational efficiencies, and how the facilities layout would increase the customer facing but as well how more efficient we could be in training. This will be considered as part of our plans forward on facilities and buildings, and this for all sites.
20

90.

CAEs Investment in Oxford Aviation Will CAE be investing in Oxford Aviation through any of the following (and when may this occur)? fleet buildings facilities

91.

How much will CAE invest in Australia?

We will be reviewing our strategy in Australia with the onsite team but as well with our executive team. We will communicate our strategy in due time. A review is currently taking place of the resource management systems to determine an implementation strategy. CAE currently uses TALON for resource management and flight scheduling. The AQD safety System is used in CAE for incident reporting and a Gap analysis is taking place in the first 30 days to determine which system is most appropriate for the network.

92.

Software and Systems Will there be any changes in software to packages CAE uses? (e.g.: flight planning, maintenance, etc), and if so when will this take place? (Note, changes would be seen as a positive) Currently they use Q Pulse for incident reporting Currently use Aerotrack for maintenance reporting Operations Is there a possibility of moving students at other CAE FTOs to Moorabin? Recruitment Will we be able to continue with our own recruitment process, or will we need to follow CAE processes? Will we be able to make recruitment decisions ourselves, or will approval need to be given at a higher level?

93.

Moorabin holds JAA approval for training so it is an option to offer some of our airline partners the option to complete JAA training in Australia. However there are no immediate plans for this to happen. CAE has an approval process in place that is managed through a global system. Depending on the leveling of the position that is requested, the approval process could be completed locally through the system. This new management system should be introduced during the month of July. If you have a request in the meantime, those requests should be directed to Angela Mischnik (angela.mischnik@cae.com) for Type, Marco van Duijn (marco.vanduijn@cae.com) for Ab-initio and Manon Caron (manon.caron@cae.com) for Parc. As agreed with CAE Risk and Insurance management department, OAAs current policies have been extended for period of 3 months; the aircraft hull & liability policy for Australia has been renewed for a 12 month period.

94.

95.

The insurance policies for all companies in Australia are due for renewal in May. Our brokers Aerosure are currently compiling quotes presumably in conjunction with Willis in the UK. Do we continue as is or is there a global CAE policy that we would now be covered under?

21

96.

Does CAE have a different broker that we would be required to use going forward?

97.

Our year end Audit is due to start with Deloitte on Monday 21st May for financial year end 30th April. Im assuming that this will continue as is albeit Deloitte are not the External Auditors for CAE? I am aware that there is a conference call between Montreal and London @ 3pm BST today Friday 18th May. What is the procedure/policy for Capital Expenditure? Do we continue with the current procedure until advised otherwise? The current process requires authorisation from the UK on Capital Expenditure items. In the short term we will require capital items in particular new/overhauled engines for our current fleet of aircraft, approximately two engines per month. From a month end reporting perspective, where do we send our Financials to going forward? The current process is that we send to OAA OXF who consolidates into total Ab-Intio and forwards to LGW. What do we need to do going forward?

Yes, CAE does have a different broker Marsh however, integration and transfer to new broker will be done gradually and seamlessly for now, it is business as usual and you continue to deal with your current broker. CAE Risk and Insurance Management will communicate with you shortly and plan transition. In the meantime, please make sure to keep alina.kanadjian@cae.com as well as frank.collins@parcaviation.aero copied on e-mails relating to insurance, incidents, etc. It has been decided that the audit will be postponed for a few weeks; this has been discussed and agreed with OAA Group Controller Rob Harvey. The priority will be preparing figures for the May 16 close.

98.

The Capital Expenditure policy and procedure along with CAE approval matrix is being communicated to OAA Finance the week of 21st May. From now on, Capital Expenditures will require authorization from CAE in Montreal. With specific regard to aircraft engine purchases and overhauls, questions should be addressed to Stphane Archambault (Finance Director) of CAE Ab-Initio Training. We are meeting OAA group Finance Management the week starting May 21st to clarify the month-end close and reporting process. The revised process will be communicated before the May Month-end close.

99.

22

100.

101.

Currently, the business in Australia is set up as a profit centre, whereby both revenue and costs are assigned to the business. Will this reporting structure continue? How are the other FTOs set up, are they Profit Centres or Cost Centres? Are there any Financial system changes in the short term? Currently, we use MYOB for our ledgers and a combination of Excel spread-sheets and Hyperion for reporting purposes. We currently use Maddocks as our solicitors in Australia, is there likely to be any change to this? What is the CAE policy/procedure for recharge of Management Fees? Previously, OAA Australia has been re-charged management fees from OAA OXF for UK based staff management time, overheads etc and from OAA LGW for administration charges. Who owns GCAT Australia Pty Limited? GCAT Australia Pty Limited is Oxford Australias company name. What are the ABNs, CANs, and what is the ownership structure? (For renewal of licence as a Registered Training Organisation)

CAE measures all operating units as profit centres, so this will continue for Australia.

102.

Yes, it is planned to implement the Oracle Financial System for all Abinitio locations. In the meantime, OAA operating entities will complete a CAE Excel Hyperion template from MYOB (or other current systems) to upload to the CAE consolidation system. Entities will be given the templates and instructions before month-end. Not for the time being. It is business as usual until further notice.

103.

CAE Inc. is charging management fees to subsidiaries for overhead costs, administration and management provided by the Canadian head office.

104.

It is still Oxford Aviation Academy Luxembourg 3 Sarl.

105.

There has been no change to the ABNs or ACNs of the Australian entities. The change in the ownership structure occurred at the level of Oxford Aviation Academy Luxembourg Sarl, which is now a subsidiary of CAE Luxembourg Acquisition Sarl rather than of STAR Capital Partners.

23

106.

What is the future of FSA?

107.

108.

Will FSA remains wholly owned company, or will it be divested? If it remains, how will it be branded? (Would prefer to remain branded as FSA believe they will get more 3rd party business) Flight Safety Australia (FSA). This is a wholly owned subsidiary, but separate legal entity, of GCAT Australia. FSA provides maintenance services to Oxford Aviations fleet and facilities, and competes for 3rd party business What are the legal entities that are now registered in Australia? The current companies listed are as follows: a. GCAT Australia PTY Limited ACN 123 622 195 b. Oxford Aviation Academy Holdings Pty Ltd ACN 004 861 287 c. Oxford Aviation Academy (Australia) Pty Ltd ACN 004 716 929 d. Flight Safety Australia Pty Ltd ACN 006 808 733

We will be looking at this business in the coming month. We plan to travel to Melbourne and have the necessary discussions for proper evaluation. FSA is still a wholly owned company of GCAT Australia Pty Ltd. No decisions have been taken regarding any changes to the legal name of FSA.

There has been no change to this.

109.

Will the above legal entities require name changes with a CAE prefix? Do the above companies remain In situ or is there a holding company over these companies or is there an amalgamation of companies?

Decisions regarding this matter have not been finalized yet.

110.

There have been no changes to these companies.

24

111.

Are there any changes envisaged with our banking arrangements. We currently use ANZ Bank as our bankers in Australia. Is there likely to be any change to this? Will we need to change the company names on our bank accounts and if so when? What is the CAE policy on travel? Within Australia economy class is used however for international travel business class is allowed for flights in excess of five hours. Will we be able to offer non-flying staff a staff discount for flying training? Is it possible to rotate line pilots to training roles and vice versa? Will our current CAPEX and orders be maintained?

112. 113.

CAE is currently working with Martin Dabell to analyze CAE and Oxford banking needs in Australia. In addition to ANZ Bank, we are reviewing the capabilities of a few financial institutions that are active in Australia and part of CAEs banking group. A review of their capabilities vs our needs should be completed in the next 3 weeks. Shortly thereafter a recommendation will be put forward by July 1st. At this current point in time, we do not envision changing the company name of any of the operating entities. We are looking at comparing our travel policy to the different policies within Oxford to better understand the differences. Once this analysis is completed, we will be in a better position to make and formally communicate a decision. We are aiming for the month of July. CAE is currently offering a program I want to fly program. You can have access to the information on CAE website. This offering is not currently part of CAEs business strategy and plan. However, we will review the recommendation and the benefits, and will advise in due time. Oxford CAPEX requirements are being reviewed as part of the integration plan. They will be assessed in the context of the combined portfolio, customer needs and go-forward strategy. No such agreement presently exists.

114. 115.

116.

117.

Is there a discount for CAE OAA employees for: a. Private Flying b. Costs involved in Maintaining Licenses c. Costs involved in obtaining Licenses for progression to next level

118.

How does one access the I Want To Fly program? Does the definition of direct family extend to uncles, aunts, nephews and nieces? Is there a brochure I could e-mail / distribute on this?

We will be communicating the complete details related to this program very shortly.

25

119.

Flight Data Recorders will be mandatory on ALL flights (from when)? A Flight Risk Analysis tool will be used to assess the risk of each flight (which tool, and when will this commence?) SMS software will be introduced to manage data and the resulting action plans will ensure continuous improvement (which software, and what is the timing?) Who will the Australian GM (Mike Drinkall) report to? There have been a number of redundancies in Melbourne is this process finalized yet?

These will become mandatory when the new fleet is introduced. Date to be finalized.

A CAE developed tool. Date for commencement to be determined.

A review is currently taking place to determine whether the CAE used tool AQD or the OAA used tool Q pulse will be used. Decision to be made by end of August. Suzanne Roy, she will head up the CAE Oxford Aviation Academy. The organization in Australia is still under review. We should be in a position to finalize our analysis in the coming weeks. We are conscious of the impact that it has on all of you and our aim is still to continue to be transparent and inform you as soon as it is possible. We looked at each and every position in the business. However, it was clear that we needed many of these positions to ensure that the business was able to function effectively. Therefore, quite a few positions were not eligible for redundancy. If anyone holding one of these positions leaves, we would not offer a redundancy it is a resignation. However, we have accepted voluntary redundancies where possible and this has actually saved other positions from being made redundant. On the last week of June, business reviews took place with assessment of the capabilities. FSA will remain as part of the business in Melbourne. While we will maintain and chase 3rd party business, COAA aircraft will be given priority.

120. 121.

122.

Why didnt you just offer voluntary redundancies?

123.

What is the future of FSA?

26

124.

What benefits do employees and their families get from the I Want To Fly Program, and how can we access them? Will we be sharing aircraft and instructors with the Perth FTO (China Southern)?

125.

126. 127.

Is there any update on whether we will use AQD or Q Pulse as our SMS? Can you confirm that all aircraft will be fitted with Flight Data Recorders, and when will these be fitted to existing aircrafts?

This program provides a 25% discount for employees and their immediate family members (parents, siblings, spouse and children). Details are on the CAE Intranet CAEVox. We will provide detailed information to OAA employees as soon as we can. There is a real possibility we can share instructors, and we may be able to have cadets learn in Melbourne if we do not have capacity in Perth. Aircrafts may also be shared, however the utilization rates of aircraft in Melbourne needs to be improved, so we may actually ship several of our aircraft to other FTOs. This is still being assessed. A decision will be made in the near future. The fleet replacement strategy requires the incorporation of flight data monitoring systems. Proceeding forward with the plan, it will include the Flight data monitoring, recording system and air conditioning. Until we finalize the fleet strategy and relevant deployment plan, we cant be more specific on timeframes.

128.

What about air conditioning in aircraft?

The fleet replacement strategy requires the incorporation of flight data monitoring system. Proceeding forward with the plan, it will include the Flight data monitoring, recording system and air conditioning. All new aircrafts will have air conditioning. However, existing aircrafts without air conditioning will not be retrofitted; this will only be covered under the new fleet strategy deployment. Yes. All Pilots will be awarded wings when achieving a course milestone during the flying program. They receive the award when they achieve their CPL skills test. CAE strives to conduct its business in accordance to the highest standards of integrity and ethical behavior in all countries in which it has a presence. CAEs Code of Business Conduct outlines our minimum position and expectations regarding appropriate corporate and individual conduct.
27

129.

I understand that instructors will be offered Wings for certain milestones. What are these milestones and how will instructors know when they have earned these Wings? What is the Code of Business Conduct, when will training be provided, and who needs to attend the training?

130.

131.

Are we going to maintain the four buildings out of which we currently work? This seems to be a waste of money.

The Code of Business Conduct is a policy that ensures all CAE employees conduct themselves with honesty, integrity and respect for others, both employees and customers. As it is a requirement for all publicly traded companies, it is mandatory for all employees to read this document and adhere to the Code of Business Conduct as of now. There is an online training course that every employee will take via our Training Portal known as Sigal. There is a multiple choice questionnaire to be completed to ensure that this policy is understood. We are aiming at launching this portal on July 9. A separate communication will be forwarded to the employees when we receive the formal confirmation from our supplier. Talks have already been held with the owners of the airport, and with the State government. We will let you know any news as soon as we know.

132.

Will CAE offer discounts for FIs to upgrade training, We are currently investigating in additional training opportunities for get additional qualifications, and also hire aircraft instructors, however the hiring of aircraft for personal use will not be for personal use? considered.

28

Questions from Copenhagen employees

Number 133. Question What is CAE s take on cabin training? Response CAE considers this complementary to our business strategy in becoming the airlines training provider in all segments of training. CAE already is in the business being smaller than the OAA activities and recognize this to be a predominantly local market but with a local anchor customer. We work with local suppliers who are calling us and We will continue to do business as before until it is asking us how we will pay their bills. How do we communicated to change. Communication on this will deal with that? follow shortly. E-mail addresses will change, etc, but business continues as do the relationships which are valuable to us all. We work closely with training managers of our For the time being, nothing should change. Customer customers. What will happen with those relationship is very important and we need to pay the relationships? highest attention to that. As part of any integration, this will be taken into consideration, as required. We have Thales devices in-house. Are they going to No, obviously when new simulators are added these will be move out and be replaced by CAE simulators? CAE brand. The fleet plan is also part of the strategy going forward. We have some competencies within CAE for non CAE machines. However, we recognize OAA competencies to support the Thales machines, and being now one team, we will use your talent. Is the deal approved by the authorities since it Yes, this has come across and was dealt during due almost looks like a monopoly for CAE? diligence. Furthermore, the deal is now closed and all authorities are informed and the response so far has been moderate with no objections of any kind. CAE has OEM approved training; does this mean Yes, in principle, but before being allowed to exercise we will automatically benefit from the same these privileges we will need to demonstrate that the site, privileges as of today? instructors and devices meet the contractual standards for which we have an elaborate Q system in place. The same goes for Airbus training of which we are a global partner in training.
29

134.

135.

136.

137.

138.

139.

How do I answer the phone now? (re: Customer Services)

Oxford / Parc Aviation 'switch boards' or any other services requiring answering to outside calls (customers or other interfaces) should be changed immediately to the new brand, as detailed below : a. TYPE: CAE b. FTO: CAE Oxford Aviation Academy c. Parc: CAE Parc Aviation Although these names may have changed for branding purposes, none of the legal names of the companies have changed yet.

140.

How is this acquisition perceived by customers?

The vast majority of customers were happy to hear that CAE has acquired OAA and thought it was the right fit for CAE. Some concerns were expressed on potential impact of the acquisition on issues such as pricing and quality of service. Feedback generally positive Enthusiastic about the change Glad to be owned by an aviation company rather than by an investment company Liked the face-to-face/personal approach with the ambassadors Many questions raised regarding the redundancy process Eager to contribute to the integration process and to start moving forward CAEs strategic intent is: To be the Standard for Training in Civil Aviation by offering the most innovative, comprehensive and technologically advanced products and services in the industry
30

141.

How is this acquisition perceived by the CAE employees?

142.

Is CAE further to invest in the business and develop the OAA training centers further?

CAEs mission statement is: To be the aviation industrys most trusted partner by continually working with our clients to deliver innovative training product and service solutions to improve the SAFETY and EFFICIENCY of their operations CAE will make investments in businesses required to sustain its strategic intent and mission. The responsibilities of the OAA ESS team span over a variety of work tasks. With the integration into the CAE family, we need to look into each task group and redistribute it in line with the CAE structure across the corporate CS group located in Montral, the field services unit (FSU) partly located in Europe (UK) and a potential regional specialists team. We also need to take the special needs of the increased number of non-CAE simulators into account in our plan going forward. CAE employees can benefit from the OAA rates. Amex has been informed of the OAA preferential rates. It is also possible for the CAE employees to make their reservation through OAA staff. CAE has 4 TRTOs covering a variety of business aircrafts, commercial aircrafts and helicopter courses. The TRTOs are approved by 4 different regulators across Europe and CAE is investigating ways to possibly move towards one single approval for all of its activities. The 2 OAA TRTOs will also be included in this review.

How are we going to deal with non CAE simulators and the current ESS support and visual scenery management?

143.

What about the current Hotel arrangements, CAE people have called the hotel for better rates?

144.

How many TRTOs are active within CAE?

31

Questions from Stockholm employees

Number 145.

Question Response Should we send CAE invoices from now on? We are presently finalizing a detailed branding plan and this item will be included in the plan. We will share the branding guidelines with employees shortly. What will happen to the SIM Industries NG in Oslo? Our understanding is that the 2 simulators Oxford has ordered from Sim Industries are affected by delays and technical issues. We are currently consulting with Oxford management and will contact Sim Industries shortly to assess the technical and contractual situation, with a view to jointly decide the best way forward. Whatever plan we move forward with, we will do our utmost to mitigate impact to our customers. Our understanding is that the 2 simulators Oxford has ordered from Sim Industries are affected by delays and technical issues. We are currently consulting with Oxford management and will contact Sim Industries shortly to assess the technical and contractual situation, with a view to jointly decide the best way forward. Whatever plan we move forward with, we will do our utmost to mitigate impact to our customers. Initially, only the Luxemburg entities will be dissolved. The other entities will remain until further notice. We are currently conducting business assessments to better understand the sales organization. We should be in a position to announce the overall organizational structure as well as reporting line during the month of July. After that exercise, we will confirm the customers/sales account assignments.

146.

147.

What will happen to the SIM Industries STO A320?

148.

Will we keep all the legal entities?

149.

When will the customers/accounts be assigned when will we be advised?

32

150.

What does the Airbus coop mean and how will this help/impact us? Please note that GTW is an approved Airbus training organization that delivers Airbus entitlement training.

OAA has not performed wet entitlement training directly on behalf of Airbus for some time. A number of years ago, OAA did perform such training and approved Airbus training organization but this was largely overspill from airbus training centres that could not then be accommodated by their preferred supplier (CAE). This stopped around the time of the OAA acquisition of GECAT in 2007. However, as part of an agreement by GECAS a number of years ago to buy A320 aircrafts from Airbus they agreed that entitlement training for this GECAS fleet (as requested by the operator) could be undertaken by OAA as an 'Approved training organization'. This agreement preceded the acquisition of GECAT by OAA but remained in place. The last of this entitlement training took place in Hong Kong a year ago. Subsequently, GECAS were unable to get similar terms for new aircraft orders. CAE has a long term agreement with Airbus, which will therefore be of benefit when viewed across the wider CAE network including old OAA training centres.

33

Questions from Oslo employees

Number 151. Question Is there a plan / timeline for integration of ITsystems yet? (Oslo looks forward to replace some of the current IT-systems) Response IT is currently conducting a two-week investigation exercise after which the IT integration plan will be finalized and integration efforts will commence, based on the recommendations and approval to proceed. After consulting regulatory, we informed the local center management that all processes and the quality system will stay as is, until further notice. Evolutionary changes (integrating quality system) will be applied most probably at the same time we change to a new quality system and amended authorization approvals will be requested. Yes. Now that you have your new CAE e-mail, you should change your signature block (e-mail footer). Branding instructions about that was provided to all employees. Yes it is business as usual. You should be contacting the same service representative as before. A plan is already being developed to reach suppliers. We will keep you informed of developments. Apart from any changes at the level of the board of directors of the various entities which we are currently proceeding with on an as required basis, It is business as usual for the time being. You continue to have the same responsibilities until further notice, so please continue to fulfill your responsibilities, as before.

152.

How about the amending the current local procedures and quality system, in relation to authorization by authorities?

153.

Should we change our e-mail footer?

154.

155.

If there is a problem with a simulator, should we still contact the same service representative in Montreal? Should it be a local initiative to inform (local) suppliers about the change? How about responsibility and authorization to sign agreements (regardless of the question whether the entity will change in the end)?

156.

34

157.

Is there any local initiative needed, when it comes to ordering branding material such as letterheads, logos, and so on?

We will be providing you with logos in different formats as well as brand guidelines that answer all of your communication needs. Should you have any questions or need any services, please contact; Stephanie Weinstein Senior Counsellor, Global Communications Tel +1-514-341-2000 ext.3926 stephanie.weinstein@cae.com Our IT team is currently working on this. Although we cannot commit to a date yet, it is on our priority list. We will provide access to former Oxford employees as soon as we can. CAE brand definition Brand messaging What does one step ahead mean for CAE? CAEs integrated training solutions help our customers stay one step ahead in:

158.

When will CAEVox be available to former OAAemployees? What are the core CAE values and strengths and what is our leading business philosophy?

159.

safety efficiency confidence readiness experience

As the simulation and training market leader, CAE is always one step ahead in:

safety technology customer service global reach A leader is always one step ahead and CAE is that leader in simulation and training.
35

160.

When should we stop providing OAA diplomas/certificates and start providing CAE diplomas and certificates?

For the immediate future, we are maintaining the OAA approvals and as a consequence, we will continue to issue OAA certificates. We have established a combined working group that is reviewing the future regulatory support structure as well as the regulatory approvals that will be maintained. We will work with management in order to keep everyone aligned in a timely manner with upcoming changes.

36

Questions from Hong Kong employees

Number 161. Question Will the responsibility of re-branding the building and collaterals fall under the regional or corporate teams? Rebranding of the building. Will it be localized or the corporate team will take change of it? 162. Who is keeping a checklist on communication with all customers? If there is no checklist, who should be communicating with them? CMAT (Customer and Market Analytics Team) created and maintains a detailed customer and partner communication plan and checklist. All customers are to be contacted: priority customers/partners were identified for direct phone contact on day 1-2 by assigned CAE or OAA executives Emails were sent to all other CAE+Oxford customers on day 1 and 2 Account leads to contact all customers by phone during week 1 CAE CAT Sales lead to assign lead in case of single customer contact shared by CAE and Oxford Response It falls under the corporate team. We are presently developing a branding plan and branding guidelines will be communicated shortly to employees.

163.

164.

Percy Ng (local employee) is currently managing finance and payroll and reports directly to the Finance function. Will there be any changes? Consultant instructors status. Can we keep them as there is a current business need for them?

Information related to the reporting structure will be communicated in the next few weeks.

165. 166.

If a contract renewal is required, the request should be directed to Angela Mischnik (angela.mischnik@cae.com) for Type, Marco van Durin (marco.vanduijn@cae.com) for Ab-initio or Manon Caron (manon.caron@cae.com) for Parc. Change of the Legal Entity in Hong Kong. Who is OAA legal and CAE legal are working together (with outside working on this? counsel) regarding any changes which may be required. Regulatory How do we inform CAAS and Both Authorities have been informed of the OAA purchase by CAE CAAC? Have they been informed etc? Regulatory Affairs.
37

167.

168.

Chinese Authority Approval for TRTO ends on August 2012 and an extension has to be submitted asap. Can the extension be submitted on OAA's name as it has to be done very soon? Will employees have to sign new employment contracts? The lease of the current training centre building is leased from Cathay Pacific under Oxfords name. Should the lease be changed into CAEs name? Cathay has increased its rental by 17% and Oxford has been paying the new rate although the new lease agreement hasnt been signed. Hong Kong Airlines is producing a local teledrama series and would like to use the SIM and other training areas as part of the shooting location. Who do we obtain approval from? When is the name of entity change going to happen?

The immediate new approval can be in the present name and all documentation changes can be modified by amendment once the documentary integration begins. As of now, the current employment contracts will remain in effect until further notice. We are conducting different analyses at this time to understand the main differences between the two organizations. The name of the legal entity has not changed, therefore the lease doesnt need to be modified. The new lease agreement is being reviewed.

169.

170.

Please send all questions and requests to Pascale Alpha, Director, Global Communications (pascale.alpha@cae.com).

171.

No date has been fixed.

38

Questions from Goodyear employees

Number 172. Question Have we made any progress in terms of a maintenance solution with the current contractor? Response We are currently having discussions with Lufthansa, both in Germany and at Goodyear to address those issues.

173.

Are there any significant variations in existing CAE operating procedures that we should be aware of and adopt moving forward?

For the time being, operating procedures of the previous companies should be maintained. As fleets are standardised across the network, the operating procedures will also be standardised. Until such time operations are normal. With the introduction of our HRIS system, employees will have the opportunity to express their interest in moving to another location through their Talent Profile. This system should be introduced to the former OAA employees the second week of July.

174.

Within the new structure, would there be opportunities elsewhere within CAE (geographically) for former OAA employees, if interested?

175.

How will CAE manage safety standards?

CAE is currently carrying out a gap analysis between the CAE SMS and the OAA SMS. The goal is to bring the best of both worlds together and to have an even more advanced SMS for the new organization to include Flight Data Recorders on all aircrafts, Flight risk analysis Tool to assess the risk of every flight, a SMS software tool to manage all data and safety reports ensuring continuous improvement in safety standards. Yes. All Pilots will be awarded wings when achieving a course milestone during the flying program.

176.

Will Pilot Instructors be offered wings to wear on their uniforms, similar to those worn by pilots of commercial aircraft?

177.

Fleet replacement project; what manufacturers We are currently negotiating with several OEMs and hope to finalize are we looking at, how will the fleet be equipped? the final recommendations by the end of July. We will communicate the results as soon as we can.
39

178.

179.

Fleet maintenance at Goodyear: there are significant issues with the way aircrafts are currently being maintained under the contract with the maintenance provider what are we doing to correct this? How come OAA in Goodyear have a better benefits scheme than we currently have in Mesa? Why hasnt there been any branding here yet?

We are currently in discussion with Lufthansa about those issues. We are formulating a way forward to ensure we get the maintenance required to increase efficiency.

The company decision was to maintain the benefits offered by OAA to its employees. Part of the integration plan is to look at differences between the two companies and then make decisions on the final outcome. The branding strategy for the new CAE Oxford sites is broken down into two main elements. The first element consists of employee and customer facing items such as lanyards, badges and courseware that is currently being reviewed and re-ordered according to the new branding guidelines. The second element is the facility branding, (interior and exterior) for which we have begun in the UK & Ireland, followed by Scandinavia and then the United States, Hong Kong and Australia.

180.

181.

Are we planning on introducing a referral reward We have completed the gathering of the information regarding the scheme for employees who recommend potential main policies/programs; the referral program was part of that new employees as we have elsewhere in the analysis. A review should be completed in the following weeks. organisation?

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Questions from Manchester employees

Number 182.

Question Did CAE do something for its 65 years of existence? If so, when & how?

Response As part of CAEs 65th anniversary, we have created a memorabilia of what CAE looks like at the age of 65 and how it has evolved during the course of its history. We are presently finalizing this commemorative montage and it will be displayed in CAE facilities around the world. Angela Mischnik, the HR representative for the Type business and her team will look at the situation when the main activities related to the integration project will be completed. Although it is not in our plans at this time, we evaluate new business opportunities on an ongoing basis. We are still on track with our initial plan. In the short term, benefits will not change. We will review the insurance coverage and will communicate the outcome of this analysis with employees. The roles that have been presented currently in Gatwick are not necessarily new roles but positions available based on the business needs of this specific training center. If you have an interest in moving to another site, we would encourage you to communicate this interest to your Ambassador. The grading system is not formalized in the European region at this time.

183.

Is CAE going to do something about the aging problem in the technical departments? Are there any plans to setup a healthcare simulation center in Europe/UK? Are we on track, as mentioned in the first presentation, with the 4 to 6 weeks assessment? What will happen with my current existing terms and conditions? CAE roles with new job descriptions have started to be offered to people at risk. Are these new roles and if so can anyone apply?

184. 185. 186.

187.

188.

The new job descriptions all have grades. What is the grading system and what are the levels for staff, management and executive levels? When will we be able to see the business unit organisational structure for each training centre and how will each centre fit into the overall organisational structure?

189.

The strategy is becoming clearer. Our intention is to communicate the overall structure as soon as it is possible.

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190.

191.

192.

In the revised update (26th June) for Manchester it says We are still conducting business assessments in these locations. What assessments are being carried out and when will they be complete? We have almost completed week 6 of the "4 to 6" week period so can you give us an indication of where we are up to now on the integration within Type and the rest of what was OAA? Can you give us an outline on what is planned next and how it will affect Manchester and Type in the UK? Will new job descriptions be issued to all employees and if so when? How will this effect existing terms and conditions of employment? Do CAE have branded corporate work wear and if so for what functions? We have a number of engineers and reception staff that need to replace work wear so we could do with supplier details, etc. The Manchester business unit has historically always done its own customer planning/scheduling. Although under OAA there has been a gradual move to centralised planning, local planning has always had a huge positive impact on customer relationships so will this be reinstated under CAE?

There are a lot of elements to take into consideration (location, customers, financials, etc.). We should be in a position to communicate the results of our assessments in a few weeks.

193.

194.

We realized that we may have a slight delay in completing our assessment. This being said, it is an important element to ensure our future success so we are asking you to be patient and we will communicate with you the conclusions in a few weeks. The business strategy will be communicated to you shortly. Regarding the integration plan, some of the next steps will be the implementation of our management systems: Oracle (finance), Gemini (specific to training center) and Workday (human resources). If your role remains the same, we have no intention at this time to issue new job description. As per the terms and conditions of employment, we are evaluating the situation based on the comparison analysis that was completed lately. An update to the branding guideline will cover the uniforms requirements for Customer Services, instructors and maintenance staff.

195.

We are reviewing best practices from OAA and CAE that focus on customer intimacy and responsiveness. There will be a requirement to move towards a common system amongst all CAE sites and make a distinction between front and back office activities. The combined OAA and CAE task team are currently looking at the optimal solution to achieve this goal.

196.

Are there different benefits associated with different grades?

As previously mentioned, there is no formalized grade system in the European region at this time.
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197.

198. 199.

200.

We have a number of vacancies at Manchester and some of them could be filled by skill-sets currently at risk. Will these vacancies be offered internally before going external? Is there a health care scheme available to UK staff? We are aware that CAE works closely with local charities close to its centres around the world. Would Manchester be allowed to work closely with local colleges and local communities on educational programmes for young people as well as charity work? We are still contracting as OAA, when will this change? Colleagues at Gatwick were told last week that Mike Humphreys has accepted a job in the new organisational structure. Is this correct and if so what is the role? Is it CAEs intention to continue with the Maritime Crew Resource Management (MCRM) and Rig Crew Resource Management (RCRM) products? Having seen the job descriptions for the engineering roles, is there a plan to discuss these in the wider engineering community or through the centre leaders as the roles dont accurately describe what happens at each site or at a generic level? Who will be involved in the various interviews and selection processes? Will the individual centre leaders be involved in the selection process within their business units?

We will evaluate the competencies of people at risk to determine if there are similarities between their competencies and the vacant positions. As previously mentioned, we are evaluating the different options regarding the offered benefits between the two companies. CAE values good corporate citizenship and CAE management and employees are encouraged to embrace local charities and initiatives. Each program will be reviewed by management before it is adopted and once adopted employees will contribute on a voluntary basis supported by CAE. Continue doing so until you are advised otherwise.

201.

A formal announcement regarding changes will be sent when those changes are confirmed officially.

202.

203.

We are currently reviewing our strategy to decide on our final offerings. We will communicate our final position as soon as possible. If you have specific comments regarding the job descriptions, we encourage you to share this feedback with the Ambassador of your location.

204.

If interviews are conducted, they will be in collaboration between HR and the functional leads. It may be the case.

205.

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206.

Local staff, in roles that have previously had "dotted line" reporting from the local business unit to a central function, have been told by staff at another site that they will report into Burgess Hill with only a "dotted line" locally. If this is the case, why has there been no consultation to understand these specific roles and how they work at the local level?

The organization structure is a subject that is part of the discussions with the employees. The specifics of each situation should be discussed with your Ambassador or your HR Lead.

207.

208.

On the CAE e-mail system you can interrogate individual details including job title and organisational structure. Why have some people's job titles changed and some remained unchanged? How come new job titles appearing on the CAE e-mail system do not reflect the current organisational structures or roles?

209.

How come the organisational structures on the CAE e-mail system show people who have left the company?

CAE has a list of standard positions. If you are holding one of those positions, your title has been adjusted. If CAE doesnt have the same type of position internally, a title should have been created. More details around this subject will be shared with you in August during your training on our HRIS system (Workday). CAE has a list of standard positions. If you are holding one of those positions, your title has been adjusted. If CAE doesnt have the same type of position internally, a title should have been created. More details around this subject will be shared with you in August during your training on our HRIS system (Workday). We had started to work on the e-mail addresses with the list of employees we had on hand from the due diligence. We realized afterwards that the information was not totally accurate so we are in a process to adjust our list based on the current reality.

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Other questions from employees

Number 210. Question Will aircraft equipment be equipped with air conditioning and data monitoring? Response The fleet replacement strategy requires the incorporation of flight data monitoring system. Proceeding forward with the plan, it will include the Flight data monitoring and recording system and air conditioning. Discussion is taking place with Lufthansa. As part of our plan, this question will be considered. Please reinforce to your external clients that our customer service remains unchanged. We are working to make this a seamless transition with uninterrupted service. As a result of the integration of our two companies, our customers will have access to an extended network of training locations and to a more complete portfolio of services, while continuing to benefit from excellent service. It is still to be determined. We will work together with OAAs management and representative bodies on the best future business structure. Our objectives are to remain transparent with employees through every step of the process and to communicate with you regularly. Currently the OAA maintenance training operations are reviewed by Peter Loeb and Stefaan Persijn (in the same manner that we review other activities and departments) to assess how we best integrate these into the CAE Maintenance training operations. We are working with OAAs management and representative bodies on the best future business structure. We are developing the integration plan together. We are completing an analysis to identify the differences between the bonus structure within CAE and the different bonus structures at Oxford. We are, at the same time, gaining more understanding about some of the differences between the businesses, which contribute to our analysis. We are aiming for a decision in July.
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211. 212.

Will we relocate as we are having too much influence from Luftansa? How do we need to respond to our customers?

213.

Has there been any decision made about Manchester site? Is it going to close?

214.

What is the future of maintenance training?

215.

Why dont you have a more detailed integration plan yet? Will CAE be offering a bonus system to employees, what do you do now?

216.

217.

What will be the reporting line, OAA or CAE?

The Ab-Initio flight schools will be merged with the CAE-operated flight schools and our CAE-operated network will be known as CAE Oxford Aviation Academy. Leader: Suzanne Roy, Vice President, CAE Oxford Aviation Academy. Suzanne will work with Anthony Petteford over the coming weeks to finalize integration activities. Type rating training centres become part of Civil training and services and are branded CAE. Jan van Engelen, Regional Business Leader, Europe Civil Training Services will be the leader for Europe centres. Kevin Speed, Regional Business Leader, Asia Civil Training Services, will be the leader for the Hong Kong centre. Jan and Kevin will work closely with Mike Humphreys over the coming weeks to finalize integration activities. CAE Parc Aviation is a new solution for CAE and completes our offering. It will be known as CAE Parc Aviation Personnel in order to preserve the brand value. It will operate the way it is operating today. Employees will report to Sean Butler. We are not expecting to make changes to this organization in the near future, other than aligning business processes and policies. Suzanne Roy, Jan van Engelen and Sean Butler report to Glenn Frederick, Executive Vice President, Commercial Aviation Training and Services. The global organizational structure is still under review. We are aiming for a formal decision in July. We expect to have completed the majority of the integration activities in the next 3 to 4 months. The actual legal names of the Oxford entities have not changed, so keep the same legal names as before in any contract renewals/extensions.

218.

For extensions or renewals of existing agreements in the Oxford name, what name do we use?

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For any other questions, do not hesitate to contact your local ambassador.
Ambassadors name Ian Cooper Faye Denyer Peter Loeb Faye Denyer Remco van der Greft Erik Kjeldsen Arthur Appelo Shazmi Ali Russell Dudley Graham Karp Simon Richard shannon-questions@cae.com tokyo-questions@cae.com beijing-questions@cae.com shanghai-questions@cae.com riga-questions@cae.com moscow-questions@cae.com

Location Oxford Gatwick Manchester Heathrow Stockholm Oslo Copenhagen Hong Kong Goodyear, Arizona Melbourne Dublin Shannon Tokyo Beijing Shanghai Riga Moscow

E-mail oxford-questions@cae.com gatwick-questions@cae.com manchester-questions@cae.com heathrow-questions@cae.com stockholm-questions@cae.com oslo-questions@cae.com copenhagen-questions@cae.com hongkong-questions@cae.com arizona-questions@cae.com melbourne-questions@cae.com dublin-questions@cae.com

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