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PRESENTATION PRESENTATION TO TO PORTFOLIO COMMITTEE FOR PORTFOLIO COMMITTEE FOR TRADE & INDUSTRY TRADE & INDUSTRY

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Page 1: RCA PP PRESENTATION TO PC - Copy

PRESENTATIONPRESENTATION

TOTO

PORTFOLIO COMMITTEE FOR PORTFOLIO COMMITTEE FOR

TRADE & INDUSTRYTRADE & INDUSTRY

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PURPOSEPURPOSE

�� PROVIDE AN OVERVIEW OF THE GENERAL AVIATION SECTOR PROVIDE AN OVERVIEW OF THE GENERAL AVIATION SECTOR

�� HIGHLIGHT THE CHALLENGES THAT ARE FACED BY THE INDUSTRYHIGHLIGHT THE CHALLENGES THAT ARE FACED BY THE INDUSTRYWHO STRIVE TO EXPAND AND INCREASE MANUFACTURINGWHO STRIVE TO EXPAND AND INCREASE MANUFACTURINGPOTENTIALPOTENTIAL

�� DIFFICULTIES IN ACCESSING APPROPRIATE FUNDINGDIFFICULTIES IN ACCESSING APPROPRIATE FUNDING

�� ENTRY TO THE GLOBAL SUPPLY CHAINENTRY TO THE GLOBAL SUPPLY CHAIN

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PURPOSEPURPOSE

The aviation industry is faced with many The aviation industry is faced with many

problems and challenges but we are here today to problems and challenges but we are here today to show you that there is a local company that has show you that there is a local company that has the expertise, a knowledge base, a well the expertise, a knowledge base, a well

established track record and the passion to established track record and the passion to provide the solution.provide the solution.

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INTRODUCTIONINTRODUCTION

�� ROBIN COSS AVIATION IS AN APPROVED MANUFACTURER ROBIN COSS AVIATION IS AN APPROVED MANUFACTURER

OF LIGHT CONVENTIONAL AIRCRAFT WITH PRODUCTION OF LIGHT CONVENTIONAL AIRCRAFT WITH PRODUCTION

FACILITIES IN CAPE TOWN.FACILITIES IN CAPE TOWN.

�� THE COMPANY IS STRATEGICALLY PLACED TO MAKE A THE COMPANY IS STRATEGICALLY PLACED TO MAKE A VALUABLE CONTRIBUTION TO GOVERNMENTVALUABLE CONTRIBUTION TO GOVERNMENT’’S INDUSTRIAL S INDUSTRIAL

POLICY ACTION PLAN (IPAP) IN A KEY CLUSTER IDENTIFIED TO POLICY ACTION PLAN (IPAP) IN A KEY CLUSTER IDENTIFIED TO

DEVELOP LONGDEVELOP LONG--TERM ADVANCED CAPABILITIES.TERM ADVANCED CAPABILITIES.

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INTRODUCTIONINTRODUCTION

ROBIN COSS AVIATIONROBIN COSS AVIATION

AUDIO VISUAL PRESENTATIONAUDIO VISUAL PRESENTATION

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SIGNIFICANCE OF AVIATION IN THE DEVELOPMENT OF OUR SIGNIFICANCE OF AVIATION IN THE DEVELOPMENT OF OUR ECONOMYECONOMY

�� AVIATION PLAYS A KEY ROLE IN ECONOMIC DEVELOPMENTAVIATION PLAYS A KEY ROLE IN ECONOMIC DEVELOPMENT

�� SUPPORTS LONGSUPPORTS LONG--TERM ECONOMIC GROWTHTERM ECONOMIC GROWTH

�� FACILITATES INTEGRATION INTO THE GLOBAL ECONOMYFACILITATES INTEGRATION INTO THE GLOBAL ECONOMY

�� HAS A POSITIVE IMPACT ON PRODUCTIVITY AND ECONOMIC PERFORMANCEHAS A POSITIVE IMPACT ON PRODUCTIVITY AND ECONOMIC PERFORMANCE

�� AVIATION IS A MAJOR INDUSTRY IN ITS OWN RIGHTAVIATION IS A MAJOR INDUSTRY IN ITS OWN RIGHT

�� EMPLOYS LARGE NUMBERS OF HIGHLY SKILLED WORKERSEMPLOYS LARGE NUMBERS OF HIGHLY SKILLED WORKERS

�� IT IS AN ESSENTIAL INPUT TO THE RAPIDLY GROWING GLOBAL ECONOMYIT IS AN ESSENTIAL INPUT TO THE RAPIDLY GROWING GLOBAL ECONOMY

�� INVESTMENT IN AVIATION INFRASTRUCTURE WILL BOOST LONGINVESTMENT IN AVIATION INFRASTRUCTURE WILL BOOST LONG--TERMTERMPRODUCTIVITY, ECONOMIC GROWTH AND GLOBAL COMPETITIVENESSPRODUCTIVITY, ECONOMIC GROWTH AND GLOBAL COMPETITIVENESS

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SIGNIFICANCE OF AVIATION IN THE DEVELOPMENT OF OUR SIGNIFICANCE OF AVIATION IN THE DEVELOPMENT OF OUR ECONOMYECONOMY

�� A FLOURISHING AVIATION INDUSTRY WILL BENEFIT SAA FLOURISHING AVIATION INDUSTRY WILL BENEFIT SA’’S ECONOMYS ECONOMY

�� GLOBAL AVIATION SUPPORTS 33 MILLION JOBSGLOBAL AVIATION SUPPORTS 33 MILLION JOBS

�� GENERATES US$ 3.5 TRILLION IN ECONOMIC ACTIVITYGENERATES US$ 3.5 TRILLION IN ECONOMIC ACTIVITY

�� AVIATION IN SOUTH AFRICA CONTRIBUTES 2.1% TO GDPAVIATION IN SOUTH AFRICA CONTRIBUTES 2.1% TO GDP

�� GENERATES ABOUT R51 BILLIONGENERATES ABOUT R51 BILLION

�� PROVIDES 227 000 JOBSPROVIDES 227 000 JOBS

�� GLOBAL CONNECTIVITY WILL OPEN UP NEW MARKETSGLOBAL CONNECTIVITY WILL OPEN UP NEW MARKETS

�� IMPROVE SUPPLY CHAIN EFFICIENCYIMPROVE SUPPLY CHAIN EFFICIENCY

�� CREATE MUCH NEEDED EMPLOYMENTCREATE MUCH NEEDED EMPLOYMENT

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CURRENT TRENDS IN DEVELOPING COUNTRIESCURRENT TRENDS IN DEVELOPING COUNTRIES

�� Faced with budgetary constraints, a critical need to Faced with budgetary constraints, a critical need to

create employment and stimulate local aviation create employment and stimulate local aviation

manufacturing sectors, many air forces & aviation manufacturing sectors, many air forces & aviation

training organisations around the world are favouring training organisations around the world are favouring locally built trainers to meet their pilot training needs.locally built trainers to meet their pilot training needs.

�� The following examples illustrate the tremendous The following examples illustrate the tremendous

positive effect that technology transfer, preferred positive effect that technology transfer, preferred procurement and support for the local industry has had procurement and support for the local industry has had

on the aviation industry in other countries.on the aviation industry in other countries.

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CURRENT TRENDS IN DEVELOPING COUNTRIESCURRENT TRENDS IN DEVELOPING COUNTRIES

NIGERIAN AIR FORCE: VANNIGERIAN AIR FORCE: VAN’’S RV S RV ““AIR BEETLEAIR BEETLE””

�� ENTERED SERVICE WITH THE NIGERIAN AIR FORCE IN 1989ENTERED SERVICE WITH THE NIGERIAN AIR FORCE IN 1989

�� PRIMARY TRAINING AIRCRAFT / 60 WERE BUILT IN NIGERIAPRIMARY TRAINING AIRCRAFT / 60 WERE BUILT IN NIGERIA

�� HELPED ESTABLISH AN INDUSTRIAL BASE IN THE COUNTRYHELPED ESTABLISH AN INDUSTRIAL BASE IN THE COUNTRY

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CURRENT TRENDS IN DEVELOPING COUNTRIESCURRENT TRENDS IN DEVELOPING COUNTRIES

COLOMBIAN AIR FORCE TRAINERCOLOMBIAN AIR FORCE TRAINER

�� ASSEMBLED BY COLOMBIAN AEROSPACE COMPANYASSEMBLED BY COLOMBIAN AEROSPACE COMPANY

�� LANCAIR SYNERGY NOW THE PRIMARY TRAINING AIRCRAFT LANCAIR SYNERGY NOW THE PRIMARY TRAINING AIRCRAFT

�� 25 AIRCRAFT TO BE BUILT IN 201225 AIRCRAFT TO BE BUILT IN 2012

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CURRENT TRENDS IN DEVELOPING COUNTRIESCURRENT TRENDS IN DEVELOPING COUNTRIES

PACIFIC AEROSPACE NEW ZEALANDPACIFIC AEROSPACE NEW ZEALAND

�� NEW ZEALAND HAS A WORLDNEW ZEALAND HAS A WORLD--CLASS AVIATION INDUSTRYCLASS AVIATION INDUSTRY

�� INNOVATION & NEW TECHNOLOGY HAVE DRIVEN THE GROWTH INNOVATION & NEW TECHNOLOGY HAVE DRIVEN THE GROWTH

�� THE INDUSTRY GENERATES NZ$ 1.3 BILLION THE INDUSTRY GENERATES NZ$ 1.3 BILLION

�� PRODUCES HIGH VALUE PRODUCTS, SERVICES & JOBSPRODUCES HIGH VALUE PRODUCTS, SERVICES & JOBS

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SUPPORT FOR LOCAL INDUSTRY IN DEVELOPED COUNTRIESSUPPORT FOR LOCAL INDUSTRY IN DEVELOPED COUNTRIES

USAF BUYS LOCALLY PRODUCED CIRRUS SRUSAF BUYS LOCALLY PRODUCED CIRRUS SR--2020

�� CIRRUS SRCIRRUS SR--20 / T20 / T--53A TO BE USED FOR STUDENT PILOT TRAINING53A TO BE USED FOR STUDENT PILOT TRAINING

�� 25 AIRCRAFT PURCHASED IN A DEAL WORTH US$ 6.1 MILLION 25 AIRCRAFT PURCHASED IN A DEAL WORTH US$ 6.1 MILLION

�� AIRCRAFT TO BE EQUIPPED WITH GLASS COCKPITS AIRCRAFT TO BE EQUIPPED WITH GLASS COCKPITS

�� WILL SATISFY THE USAFWILL SATISFY THE USAF’’S PERFORMANCE & OPERATIONAL CRITERIAS PERFORMANCE & OPERATIONAL CRITERIA

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SUPPORT FOR LOCAL INDUSTRY IN SOUTH AFRICA SUPPORT FOR LOCAL INDUSTRY IN SOUTH AFRICA

ROBIN COSS AVIATION ROBIN COSS AVIATION VANVAN’’ss RV AIRCRAFTRV AIRCRAFT

�� RCA IS THE ONLY APPROVED MANUFACTURER IN THE WORLDRCA IS THE ONLY APPROVED MANUFACTURER IN THE WORLD�� A TOTAL OF 40 AIRCRAFT HAVE ALREADY BEEN PRODUCEDA TOTAL OF 40 AIRCRAFT HAVE ALREADY BEEN PRODUCED�� IT IS THE IDEAL TRAINER FOR IT IS THE IDEAL TRAINER FOR ATOATO’’ss, SAAF & SAA, SAAF & SAA�� RCA IS STRATEGICALLY PLACED TO PRODUCE RCA IS STRATEGICALLY PLACED TO PRODUCE SASA’’ss FIRST EVER CERTIFIEDFIRST EVER CERTIFIED

POWERED AIRCRAFTPOWERED AIRCRAFT�� FULL CERTIFICATION WILL ENABLE SA TO COMPETE GLOBALLYFULL CERTIFICATION WILL ENABLE SA TO COMPETE GLOBALLY

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STATUS OF GENERAL AVIATION IN SOUTH AFRICASTATUS OF GENERAL AVIATION IN SOUTH AFRICA

““MANUFACTURING & OTHER PRODUCTIVE SECTORS OF THE ECONOMY ARE MANUFACTURING & OTHER PRODUCTIVE SECTORS OF THE ECONOMY ARE THE ENGINES OF LONGTHE ENGINES OF LONG--TERM SUSTAINABLE GROWTH & JOB CREATION IN TERM SUSTAINABLE GROWTH & JOB CREATION IN

DEVELOPING COUNTRIES SUCH AS OUR OWNDEVELOPING COUNTRIES SUCH AS OUR OWN””

(DR ROB DAVIES: MINISTER OF TRADE & INDUSTRY0(DR ROB DAVIES: MINISTER OF TRADE & INDUSTRY0

(ADDRESS TO NATIONAL ASSEMBLY / INDUSTRIAL POLICY ACTION PLAN)(ADDRESS TO NATIONAL ASSEMBLY / INDUSTRIAL POLICY ACTION PLAN)

�� IPAP IDENTIFIED AVIATION AS A KEY CLUSTERIPAP IDENTIFIED AVIATION AS A KEY CLUSTER

�� IT HAS THE POTENTIAL TO DEVELOP LONGIT HAS THE POTENTIAL TO DEVELOP LONG--TERM ADVANCED CAPABILITIESTERM ADVANCED CAPABILITIES

�� PROPOSALS HAD TO BE DEVELOPED TO ENHANCE ACCESS TO FUNDING PROPOSALS HAD TO BE DEVELOPED TO ENHANCE ACCESS TO FUNDING

�� INCREASAED INVESTMENT WOULD MAKE SA LESS DEPENDENT ON IMPORTS INCREASAED INVESTMENT WOULD MAKE SA LESS DEPENDENT ON IMPORTS

�� PROVIDE ACCESS TO GLOBAL MARKETS WITH HUGE ECONOMIC BENEFITSPROVIDE ACCESS TO GLOBAL MARKETS WITH HUGE ECONOMIC BENEFITS

�� PROMOTE LONGPROMOTE LONG--TERM INDUSTRIAL DIVERSIFICATIONTERM INDUSTRIAL DIVERSIFICATION

�� GROW GROW SASA’’ss DOMESTIC TECHNOLOGY BASEDOMESTIC TECHNOLOGY BASE

�� ACT AS A CATALYST TO BUILD THE ECONOMY AND A BETTER LIFE FOR ALACT AS A CATALYST TO BUILD THE ECONOMY AND A BETTER LIFE FOR ALLL

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STATUS OF GENERAL AVIATION IN SOUTH AFRICASTATUS OF GENERAL AVIATION IN SOUTH AFRICA

THE CHALLENGES WE FACETHE CHALLENGES WE FACE

�� CRITICAL SKILLS SHORTAGESCRITICAL SKILLS SHORTAGES

�� GROWING SHORTAGE OF PILOTS, ENGINEERS & MANAGEMENTGROWING SHORTAGE OF PILOTS, ENGINEERS & MANAGEMENT

�� OLD FACILITIES & EQUIPMENT OLD FACILITIES & EQUIPMENT –– CRITICAL LOSS OF APPRENTICESCRITICAL LOSS OF APPRENTICES

�� THE FAILURE TO MODERNIZE & KEEP ABREAST OF NEW TRENDSTHE FAILURE TO MODERNIZE & KEEP ABREAST OF NEW TRENDS

�� LACK OF FUNDING LACK OF FUNDING –– RESULTING IN COMPANIES NOT DEVELOPINGRESULTING IN COMPANIES NOT DEVELOPING

�� THE INCREASING NUMBER OF AIRCRAFT OPERATING IN SA & AFRICATHE INCREASING NUMBER OF AIRCRAFT OPERATING IN SA & AFRICA

WILL HAVE HUGE IMPACT ON AN INDUSTRY THAT CANNOT KEEP UPWILL HAVE HUGE IMPACT ON AN INDUSTRY THAT CANNOT KEEP UP

�� THE LOSS OF OUR TECHNOLOGY BASE THE LOSS OF OUR TECHNOLOGY BASE –– ““THE BRAIN DRAINTHE BRAIN DRAIN””

�� COST OF HAVING TO IMPORT NEARLY 100% OF RAW MATERIALSCOST OF HAVING TO IMPORT NEARLY 100% OF RAW MATERIALS

�� THE AVAILABILITY AND COST OF CAPITAL TO FACILITATE EXPANSIONTHE AVAILABILITY AND COST OF CAPITAL TO FACILITATE EXPANSION

�� THE IMPORTANCE OF THE INDUSTRY IS NOT REFLECTED IN THE THE IMPORTANCE OF THE INDUSTRY IS NOT REFLECTED IN THE

INTEREST & FUNDING MADE AVAILABLE FOR SUCH EXPANSIONINTEREST & FUNDING MADE AVAILABLE FOR SUCH EXPANSION

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STATUS OF GENERAL AVIATION IN SOUTH AFRICASTATUS OF GENERAL AVIATION IN SOUTH AFRICA

THE CHALLENGES WE FACETHE CHALLENGES WE FACE

�� SA IS YET TO PRODUCE ITS OWN CERTIFIED AIRCRAFT FOR EXPORTSA IS YET TO PRODUCE ITS OWN CERTIFIED AIRCRAFT FOR EXPORT�� MANUFACTURE OF AIRCRAFT ASSEMBLIES & COMPONENTS IS ALMOST NONMANUFACTURE OF AIRCRAFT ASSEMBLIES & COMPONENTS IS ALMOST NON--

EXISTENTEXISTENT�� TWO OF THE LARGEST COMPANIES IN SA HAVE CONTRACTS WITH BOEING, TWO OF THE LARGEST COMPANIES IN SA HAVE CONTRACTS WITH BOEING,

AIRBUS & ROLLS ROYCE AT THE HIGH END OF THE MARKETAIRBUS & ROLLS ROYCE AT THE HIGH END OF THE MARKET�� THEY OPERATE IN SPECIFIC NICHE MARKETS, IE; STRUCTURAL FABRICATTHEY OPERATE IN SPECIFIC NICHE MARKETS, IE; STRUCTURAL FABRICATION,ION,

COMPOSITES AND INTERIOR SYSTEMSCOMPOSITES AND INTERIOR SYSTEMS�� THEY ARE THE ONLY ONES TO HAVE BENEFITTED FROM THE ARMS DEALTHEY ARE THE ONLY ONES TO HAVE BENEFITTED FROM THE ARMS DEAL

OFFSET PROGRAMOFFSET PROGRAM�� NEITHER HAS DESIGNED OR MANUFACTURED A COMPLETE AIRCRAFT NEITHER HAS DESIGNED OR MANUFACTURED A COMPLETE AIRCRAFT

ROBIN COSS AVIATION HAS DONE SO FOR MANY YEARSROBIN COSS AVIATION HAS DONE SO FOR MANY YEARS�� THE CENTURION AVIATION VILLAGE (CAV) WAS DEVELOPED TO HOUSE THETHE CENTURION AVIATION VILLAGE (CAV) WAS DEVELOPED TO HOUSE THE

THE LARGE ROLE PLAYERSTHE LARGE ROLE PLAYERS�� DTI ALLOCATED R600 MILLION & RECEIVED DTI ALLOCATED R600 MILLION & RECEIVED ““SPECIAL PROJECT STATUSSPECIAL PROJECT STATUS””�� NO OTHER FACILITY LIKE THIS IN THE REST OF THE COUNTRYNO OTHER FACILITY LIKE THIS IN THE REST OF THE COUNTRY�� EXISTING COMPANIES ARE ESTABLISHED AND SHOULD NOT BE FORCED TOEXISTING COMPANIES ARE ESTABLISHED AND SHOULD NOT BE FORCED TO

RELOCATERELOCATE

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PROJECTED GROWTH OF AVIATION IN AFRICAPROJECTED GROWTH OF AVIATION IN AFRICA

THE FORECAST BY BOEING & AIRBUS FOR THE NEXT 20 YEARSTHE FORECAST BY BOEING & AIRBUS FOR THE NEXT 20 YEARS

�� THE AVIATION INDUSTRY WILL REQUIRE AN ADDITIONAL 13 000THE AVIATION INDUSTRY WILL REQUIRE AN ADDITIONAL 13 000PILOTSPILOTS

�� 15 000 MAINTENANCE PERSONNEL15 000 MAINTENANCE PERSONNEL�� SA AIRLINES WILL REQUIRE MORE THAN 180 NEW AIRCRAFTSA AIRLINES WILL REQUIRE MORE THAN 180 NEW AIRCRAFT�� AFRICAN AIRLINES WILL REQUIRE 1 100 NEW PASSENGER AIRCRAFTAFRICAN AIRLINES WILL REQUIRE 1 100 NEW PASSENGER AIRCRAFT�� SA WILL HAVE AN AVERAGE PASSENGER GROWTH RATE OF 6%SA WILL HAVE AN AVERAGE PASSENGER GROWTH RATE OF 6%�� SA HAS ALREADY EXPERIENCES A 45% INCREASE IN AIR TRAFFICSA HAS ALREADY EXPERIENCES A 45% INCREASE IN AIR TRAFFIC�� A ROBUST & SUSTAINABLE INDUSTRY IS ESSENTIAL FOR THEA ROBUST & SUSTAINABLE INDUSTRY IS ESSENTIAL FOR THE

DEVELOPMENT OF THE REGIONDEVELOPMENT OF THE REGION

THE QUESTIONS THAT NEED TO BE ASKED:THE QUESTIONS THAT NEED TO BE ASKED:

WHO WILL PROVIDE THE TRAINING AIRCRAFT?WHO WILL PROVIDE THE TRAINING AIRCRAFT?

WHO WILL TRAIN THE PERSONNEL?WHO WILL TRAIN THE PERSONNEL?

WHO WILL PROVIDE THE FACILITIES?WHO WILL PROVIDE THE FACILITIES?

WHO FUNDS THIS CRITICAL REQUIREMENT?WHO FUNDS THIS CRITICAL REQUIREMENT?

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PROJECTED GROWTH OF AVIATION IN AFRICAPROJECTED GROWTH OF AVIATION IN AFRICA

CURRENT FLYING TRAININGCURRENT FLYING TRAINING

�� ALL FLYING TRAINING FOR GENERAL & COMMERCIAL SECTORS AREALL FLYING TRAINING FOR GENERAL & COMMERCIAL SECTORS ARECARRIED OUT BY PRIVATELY RUN CARRIED OUT BY PRIVATELY RUN ATOATO’’ss

�� 42 REGISTERED 42 REGISTERED ATOATO’’ss GOVERNED BY SACAAGOVERNED BY SACAA�� THE MAJORITY OF TRAINING AIRCRAFT ARE MORE THAN 40 YEARSTHE MAJORITY OF TRAINING AIRCRAFT ARE MORE THAN 40 YEARS

OLDOLD�� HIGH MAINTENANCE COSTS PASSED ONTO THE END USERHIGH MAINTENANCE COSTS PASSED ONTO THE END USER�� COST OF PURCHASING NEW AIRCRAFT FROM OVERSEAS ISCOST OF PURCHASING NEW AIRCRAFT FROM OVERSEAS IS

PROHIBITIVEPROHIBITIVE�� THE INDUSTRY NEEDS QUALITY TRAINING IN MODERN AIRCRAFTTHE INDUSTRY NEEDS QUALITY TRAINING IN MODERN AIRCRAFT�� AVIATION IS A SECTOR WITH POTENTIAL FOR LONGAVIATION IS A SECTOR WITH POTENTIAL FOR LONG--TERM ADVANCEDTERM ADVANCED

CAPABILITIESCAPABILITIES�� IT IS A GENERATOR OF NEW TECHNOLOGIES & KEY TO FUTUREIT IS A GENERATOR OF NEW TECHNOLOGIES & KEY TO FUTURE

INNOVATION & A INNOVATION & A ““KNOWLEDGE ECONOMYKNOWLEDGE ECONOMY””�� SUPPORT WILL ALLOW SA TO EXTEND ITS COMPONENTS & PARTSUPPORT WILL ALLOW SA TO EXTEND ITS COMPONENTS & PART

MANUFACTURE CAPABILITIESMANUFACTURE CAPABILITIES�� ENABLE SA TO ENTER THE HIGHENABLE SA TO ENTER THE HIGH--VALUE GLOBAL SUPPLY CHAINVALUE GLOBAL SUPPLY CHAIN

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PROJECTED GROWTH OF AVIATION IN AFRICAPROJECTED GROWTH OF AVIATION IN AFRICA

WHAT IS REQUIRED TO MEET THE CHALLENGE?WHAT IS REQUIRED TO MEET THE CHALLENGE?

�� THE INDUSTRY NEEDS QUALITY TRAINING IN MODERNTHE INDUSTRY NEEDS QUALITY TRAINING IN MODERN

LOCALLY MANUFACTURED AIRCRAFTLOCALLY MANUFACTURED AIRCRAFT�� AVIATION IS A SECTOR WITH POTENTIAL FOR LONGAVIATION IS A SECTOR WITH POTENTIAL FOR LONG--TERMTERM

ADVANCED CAPABILITIESADVANCED CAPABILITIES

�� IT IS A GENERATOR OF NEW TECHNOLOGIES & KEY TOIT IS A GENERATOR OF NEW TECHNOLOGIES & KEY TO

FUTURE INNOVATION & A FUTURE INNOVATION & A ““KNOWLEDGE ECONOMYKNOWLEDGE ECONOMY””�� SUPPORT WILL ALLOW SA TO EXTEND ITS COMPONENT &SUPPORT WILL ALLOW SA TO EXTEND ITS COMPONENT &

PART MANUFACTURE CAPABILITIESPART MANUFACTURE CAPABILITIES

�� WHICH WILL ENABLE SA TO ENTER THE HIGHWHICH WILL ENABLE SA TO ENTER THE HIGH--VALUEVALUE

GLOBAL SUPPLY CHAINGLOBAL SUPPLY CHAIN

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TRAINING OF SAAF PILOTSTRAINING OF SAAF PILOTS

RCARCA’’S OFFER TO PROVIDE THE PERFECT TRAINING PLATFORMS OFFER TO PROVIDE THE PERFECT TRAINING PLATFORM

�� ARMSCOR RFP FOR NEW SIDEARMSCOR RFP FOR NEW SIDE--BYBY--SIDE TRAINING AIRCRAFT FORSIDE TRAINING AIRCRAFT FORTHE SAAF WAS CANCELLED IN DECEMBER 2009THE SAAF WAS CANCELLED IN DECEMBER 2009

�� TENDER PROCESS WAS EXTREMELY CONFUSING / BADLY HANDLEDTENDER PROCESS WAS EXTREMELY CONFUSING / BADLY HANDLED�� NO VALID REASONS WERE GIVEN FOR THE CANCELLATIONNO VALID REASONS WERE GIVEN FOR THE CANCELLATION�� IN LIGHT OF IN LIGHT OF SAAFSAAF’’ss CRIPPLING SKILLS SHORTAGE & BUDGETCRIPPLING SKILLS SHORTAGE & BUDGET

CONSTRAINTS CONSTRAINTS –– SAD TO SEE THAT LOCAL OPTIONS WERE NOT FULLYSAD TO SEE THAT LOCAL OPTIONS WERE NOT FULLYEXPLOREDEXPLORED

�� DISCUSSIONS WITH CAF REVEALED THAT THE ARMSCOR RFP WAS OVERDISCUSSIONS WITH CAF REVEALED THAT THE ARMSCOR RFP WAS OVERSPECIFIEDSPECIFIED

�� AS A LOCAL MANUFACTURER RCA CAN PROVIDE A FLEET OFAS A LOCAL MANUFACTURER RCA CAN PROVIDE A FLEET OFUNIFORMED EQUIPPED AIRCRAFT TO PROVIDE COSTUNIFORMED EQUIPPED AIRCRAFT TO PROVIDE COST--EFFECTIVEEFFECTIVETRAINING TO MEET ALL THE TRAINING TO MEET ALL THE SAAFSAAF’’ss REQUIREMENTSREQUIREMENTS

�� NUMEROUS ATTEMPTS HAVE BEEN MADE TO DISCUSS THE ISSUENUMEROUS ATTEMPTS HAVE BEEN MADE TO DISCUSS THE ISSUEWITH THE SAAF / WITH THE SAAF / DoDDoD

�� A NEW TENDER / RFP IS TO BE RELEASED WITHIN THE NEXT THREE MONTA NEW TENDER / RFP IS TO BE RELEASED WITHIN THE NEXT THREE MONTHSHS�� THIS PROVIDES AN IDEAL OPPORTUNITY FOR THE PC TO ACT AS ANTHIS PROVIDES AN IDEAL OPPORTUNITY FOR THE PC TO ACT AS AN

INTERFACE BETWEEN RCA AND THE INTERFACE BETWEEN RCA AND THE DoDDoD / SAAF/ SAAF

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SUMMARY OF LIAISON WITH SUMMARY OF LIAISON WITH DoDDoD & SAAF& SAAFRCARCA’’S OFFER TO PROVIDE A NEW TRAINING AIRCRAFTS OFFER TO PROVIDE A NEW TRAINING AIRCRAFT

�� RCA FIRST PITCHED ITS PROPOSAL FOR A NEW LOCALLY PRODUCEDRCA FIRST PITCHED ITS PROPOSAL FOR A NEW LOCALLY PRODUCEDAIRCRAFT IN 2008AIRCRAFT IN 2008

�� DISCUSSIONS WERE HELD WITH THE SAAFDISCUSSIONS WERE HELD WITH THE SAAF’’S TECHNICAL TEAMS TECHNICAL TEAM�� INVITATIONS WERE SENT TO CAF TO VIEW THE AIRCRAFT & CONSIDER THINVITATIONS WERE SENT TO CAF TO VIEW THE AIRCRAFT & CONSIDER THEE

PROPOSALPROPOSAL�� ARMSCOR TENDER (RFP) WAS ISSUED IN 2009 FOR A NEW SIDEARMSCOR TENDER (RFP) WAS ISSUED IN 2009 FOR A NEW SIDE--BYBY--SIDESIDE

TRAINING AIRCRAFTTRAINING AIRCRAFT�� IN DECEMBER 2009 THE TENDER WAS CANCELLED & NO VALID REASONSIN DECEMBER 2009 THE TENDER WAS CANCELLED & NO VALID REASONS

WERE GIVEN FOR THE CANCELLATIONWERE GIVEN FOR THE CANCELLATION�� MEETINGS WERE HELD WITH CAF WHO INDICATED THAT ARMSCOR OVERMEETINGS WERE HELD WITH CAF WHO INDICATED THAT ARMSCOR OVER

SPECIFIED THE REQUIREMENTSPECIFIED THE REQUIREMENT�� SINCE THEN SEVERAL SAAF SSOSINCE THEN SEVERAL SAAF SSO’’S & INSTRUCTORS HAVE VISITED THE RCAS & INSTRUCTORS HAVE VISITED THE RCA

FACILITIES AND FLOWN THE AIRCRAFT. ALL AGREE THAT IT IS THE IFACILITIES AND FLOWN THE AIRCRAFT. ALL AGREE THAT IT IS THE IDEALDEALPLATFORMPLATFORM

�� IN APRIL 2010 A LETTER WAS SENT TO MINISTER SISULU REQUESTING AIN APRIL 2010 A LETTER WAS SENT TO MINISTER SISULU REQUESTING AMEETING TO DISCUSS THE RCA OFFER & TO RESOLVE ISSUESMEETING TO DISCUSS THE RCA OFFER & TO RESOLVE ISSUES

�� IN OCTOBER 2011 THE MINISTERIN OCTOBER 2011 THE MINISTER’’S SPECIAL ADVISOR VISITED RCA ANDS SPECIAL ADVISOR VISITED RCA ANDREFERRED US BACK TO THE REFERRED US BACK TO THE DoDDoD’’SS PROCUREMENT OFFICEPROCUREMENT OFFICE

�� AFTER DISCUSSIONS WITH THE AFTER DISCUSSIONS WITH THE DoDDoD’’SS PROCUREMENT OFFICE RCA WASPROCUREMENT OFFICE RCA WASREFERRED BACK TO THE SAAF / CHIEF DIRECTOR FORCE DEVELOPMENTREFERRED BACK TO THE SAAF / CHIEF DIRECTOR FORCE DEVELOPMENT

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SUMMARY OF LIAISON WITH SUMMARY OF LIAISON WITH DoDDoD & SAAF& SAAF

RCARCA’’S OFFER TO PROVIDE A NEW TRAINING AIRCRAFTS OFFER TO PROVIDE A NEW TRAINING AIRCRAFT

�� IN JANUARY 2012 RCA HAD DISCUSSIONS AND SENT A LETTER TO THEIN JANUARY 2012 RCA HAD DISCUSSIONS AND SENT A LETTER TO THECHIEF DIRECTOR FORCE DEVELOPMENT AT SAAF HQ / BASIC FLYINGCHIEF DIRECTOR FORCE DEVELOPMENT AT SAAF HQ / BASIC FLYINGTRAINING DIVISION FALLS UNDER HIS COMMANDTRAINING DIVISION FALLS UNDER HIS COMMAND

�� THE INITIAL RESPONSE WAS FAVOURABLE AND RCA WAS INFORMED THATTHE INITIAL RESPONSE WAS FAVOURABLE AND RCA WAS INFORMED THATEVERY OPTION WOULD BE CONSIDERED & THAT A NEW TENDER WOULD BEEVERY OPTION WOULD BE CONSIDERED & THAT A NEW TENDER WOULD BEISSUED WITHIN THE NEXT THREE MONTHSISSUED WITHIN THE NEXT THREE MONTHS

�� 24 HOURS LATER RCA WAS INFORMED BY SAAF HQ THAT THEY WOULD NOT24 HOURS LATER RCA WAS INFORMED BY SAAF HQ THAT THEY WOULD NOTCONSIDER OUR AIRCRAFT FOR PILOT TRAININGCONSIDER OUR AIRCRAFT FOR PILOT TRAINING

�� NO VALID REASON WAS GIVENNO VALID REASON WAS GIVEN�� THERE WAS NO FURTHER RESPONSE FROM SAAF HQ TO OUR REQUESTSTHERE WAS NO FURTHER RESPONSE FROM SAAF HQ TO OUR REQUESTS

FOR AN EXPLANATION AND OUR REQUEST FOR A MEETING AT THE HIGHEFOR AN EXPLANATION AND OUR REQUEST FOR A MEETING AT THE HIGHESTSTLEVEL TO DISCUSS THE MATTER LEVEL TO DISCUSS THE MATTER

�� THIS IS YET ANOTHER EXAMPLE OF INDIVIDUALS TAKING DECISIONSTHIS IS YET ANOTHER EXAMPLE OF INDIVIDUALS TAKING DECISIONSWITHOUT PROPER KNOWLEDGE OF THE LOCAL INDUSTRYWITHOUT PROPER KNOWLEDGE OF THE LOCAL INDUSTRY

�� THEIR DECISIONS TOTALLY CONFLICT WITH GOVERNMENTTHEIR DECISIONS TOTALLY CONFLICT WITH GOVERNMENT’’S POLICY ANDS POLICY ANDATTEMPTS TO DEVELOP MANUFACTURING CAPABILITIES AND JOB CREATIATTEMPTS TO DEVELOP MANUFACTURING CAPABILITIES AND JOB CREATIONON

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SUMMARY OF LIAISON WITH DTISUMMARY OF LIAISON WITH DTI

RCARCA’’S ATTEMPTS TO SECURE FUNDING FOR EXPANSIONS ATTEMPTS TO SECURE FUNDING FOR EXPANSION

�� IN SEPTEMBER 2010 RCA HELD DISCUSSIONS WITH THE DTIIN SEPTEMBER 2010 RCA HELD DISCUSSIONS WITH THE DTI’’S AEROSPACES AEROSPACEDIVISIONDIVISION

�� ONE YEAR LATER, IN OCTOBER 2011, RCA HAD A MEETING AND DISCUSSIONE YEAR LATER, IN OCTOBER 2011, RCA HAD A MEETING AND DISCUSSIONONWITH DTIWITH DTI’’S AEROSPACE & ADVANCED MANUFACTURING DIVISIONS AEROSPACE & ADVANCED MANUFACTURING DIVISION

�� RCA PROVIDED A DETAILED PLAN FOR THE EXPANSION OF ITS BUSINESSRCA PROVIDED A DETAILED PLAN FOR THE EXPANSION OF ITS BUSINESS�� THERE WAS NO RESPONSE OR FOLLOW UP FROM THE DTITHERE WAS NO RESPONSE OR FOLLOW UP FROM THE DTI�� IN FEBRUARY 2012 RCA SENT A LETTER TO MINISTER DAVIES REQUESTININ FEBRUARY 2012 RCA SENT A LETTER TO MINISTER DAVIES REQUESTINGG

HIS INTERVENTIONHIS INTERVENTION�� RCA WAS THEN CONTACTED BY DTIRCA WAS THEN CONTACTED BY DTI’’S DIRECTOR BUSINESS DEVELOPMENTS DIRECTOR BUSINESS DEVELOPMENT�� DTI AEROSPACE & CSIR / AISI HAD A MEETING REGARDING RCADTI AEROSPACE & CSIR / AISI HAD A MEETING REGARDING RCA’’S PROPOSALS PROPOSAL�� THE MEETING RESOLVED THAT THE DTI & CSIR TEAM WOULD VISIT RCA TTHE MEETING RESOLVED THAT THE DTI & CSIR TEAM WOULD VISIT RCA TOO

FINALISE MATTERS AND FIND A WAY FORWARD FINALISE MATTERS AND FIND A WAY FORWARD (THIS MEETING HAS STILL (THIS MEETING HAS STILL NOT TAKEN PLACE)NOT TAKEN PLACE)

�� IN MARCH 2012 THE DIRECTOR OF DTIIN MARCH 2012 THE DIRECTOR OF DTI’’S INCENTIVE ADMINISTRATIONS INCENTIVE ADMINISTRATIONVISITED RCA TO ADVISE ON THE DTIVISITED RCA TO ADVISE ON THE DTI’’S INCENTIVE / REBATE SCHEMESS INCENTIVE / REBATE SCHEMES

�� IN MARCH RCA APPOINTED CONSULTANTS TO COMPILE A MANUFACTURINGIN MARCH RCA APPOINTED CONSULTANTS TO COMPILE A MANUFACTURINGINCENTIVE PROGRAM APPLICATION (THIS FOR A MAX OF 30% REBATE OINCENTIVE PROGRAM APPLICATION (THIS FOR A MAX OF 30% REBATE ONNCAPEX)CAPEX)

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WHERE TO NOW?WHERE TO NOW?

�� RCA IS LOCAL COMPANY THAT HAS A PROVEN TRACK RECORDRCA IS LOCAL COMPANY THAT HAS A PROVEN TRACK RECORD�� THE COMPANY HAS A PROVEN PRODUCTTHE COMPANY HAS A PROVEN PRODUCT�� THE COMPANY IS ACTIVELY INVOLVED IN THE ADVANCETHE COMPANY IS ACTIVELY INVOLVED IN THE ADVANCE

MANUFACTURING SECTOR IDENTIFIED BY GOVERNMENTMANUFACTURING SECTOR IDENTIFIED BY GOVERNMENT’’S IPAPS IPAP�� THE COMPANY CAN MAKE A VERY POSITIVE CONTRIBUTION TOTHE COMPANY CAN MAKE A VERY POSITIVE CONTRIBUTION TO

INCREASING SAINCREASING SA’’S MANUFACTURING CAPABILITIESS MANUFACTURING CAPABILITIES�� THERE IS A DEMAND IN SA FOR THE PRODUCTS BEINGTHERE IS A DEMAND IN SA FOR THE PRODUCTS BEING

MANUFACTURED BY RCAMANUFACTURED BY RCA�� FOUR YEARS LATER, VERY LITTLE PROGRESS HAS BEEN MADE ANDFOUR YEARS LATER, VERY LITTLE PROGRESS HAS BEEN MADE AND

WE ARE STILL BATTLING TO GET KEY ROLE PLAYERS AND DECISIONWE ARE STILL BATTLING TO GET KEY ROLE PLAYERS AND DECISIONMAKERS TO RECOGNISE THE MERITS AND BENEFITS OF WHAT RCAMAKERS TO RECOGNISE THE MERITS AND BENEFITS OF WHAT RCAHAS TO OFFERHAS TO OFFER

�� IN FACT OUR EXPERIENCE UP TO NOW INDICATES THAT THERE ISIN FACT OUR EXPERIENCE UP TO NOW INDICATES THAT THERE ISVERY LITTLE INTEREST IN SUPPORTING LOCAL COMPANIES TOVERY LITTLE INTEREST IN SUPPORTING LOCAL COMPANIES TOACHIEVE THE GOALS AND OBJECTIVES OF GOVERNMENTACHIEVE THE GOALS AND OBJECTIVES OF GOVERNMENT’’SSINDUSTRIAL POLICY ACTION PLANINDUSTRIAL POLICY ACTION PLAN

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TRAINING OF SOUTH AFRICAN AIRWAYS PILOTSTRAINING OF SOUTH AFRICAN AIRWAYS PILOTS

�� SAA IS REOPENING ITS PILOT TRAINING ACADEMYSAA IS REOPENING ITS PILOT TRAINING ACADEMY�� TRAINING 150 TO 250 NEW CADET PILOTS A YEAR AS FROM 2013TRAINING 150 TO 250 NEW CADET PILOTS A YEAR AS FROM 2013�� SAA REQUIRES 45 NEW PILOTS A YEAR TO FULFIL ITS GROWTH NEEDSSAA REQUIRES 45 NEW PILOTS A YEAR TO FULFIL ITS GROWTH NEEDS�� THE AIRLINE CLOSED DOWN ITS CADET TRAINING PROGRAM IN 2006 DUE THE AIRLINE CLOSED DOWN ITS CADET TRAINING PROGRAM IN 2006 DUE TOTO

BUDGETARY CONSTRAINTSBUDGETARY CONSTRAINTS�� SA AIRWAYS AND SAAF ARE NOW WORKING TOGETHER TO FORM ANSA AIRWAYS AND SAAF ARE NOW WORKING TOGETHER TO FORM AN

INTEGRATED PILOT DEVELOPMENT PROGRAM INTEGRATED PILOT DEVELOPMENT PROGRAM �� SAA IS LOOKING TO FORM A PARTNERSHIP WITH A LOCAL COMPANY TOSAA IS LOOKING TO FORM A PARTNERSHIP WITH A LOCAL COMPANY TO

PROVIDE SUCH TRAINING / TENDER WAS RECENTLY RELEASEDPROVIDE SUCH TRAINING / TENDER WAS RECENTLY RELEASED�� THIS PROVIDED YET ANOTHERR OPPORTUNITY FOR A LOCAL COMPANY TOTHIS PROVIDED YET ANOTHERR OPPORTUNITY FOR A LOCAL COMPANY TO

PROVIDE THE AIRCRAFT REQUIRED FOR TRAININGPROVIDE THE AIRCRAFT REQUIRED FOR TRAINING�� WILL WE SEE AIRCRAFT BEING IMPORTED TO MEET THE REQUIREMENT TOWILL WE SEE AIRCRAFT BEING IMPORTED TO MEET THE REQUIREMENT TO

THE DETREMENT OF LOCAL MANUFACTURERS OR WILL WE SEETHE DETREMENT OF LOCAL MANUFACTURERS OR WILL WE SEEGOVERNMENT IMPLEMENTING ITS PREFERRED PROCUREMENT POLICIES?GOVERNMENT IMPLEMENTING ITS PREFERRED PROCUREMENT POLICIES?

�� THIS PROVIDES ANOTHER OPPORTUNITY FOR THE PC TO ACT AS ANTHIS PROVIDES ANOTHER OPPORTUNITY FOR THE PC TO ACT AS ANINTERFACE BETWEEN RCA, SOUTH AFRICAN AIRWAYS & THE SAAFINTERFACE BETWEEN RCA, SOUTH AFRICAN AIRWAYS & THE SAAF

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ADVANCED TRAINING PLATFORMSADVANCED TRAINING PLATFORMS

�� ATOATO’’ss IN SA OPERATE AN AGEING FLEET OF AIRCRAFTIN SA OPERATE AN AGEING FLEET OF AIRCRAFT�� THESE AIRCRAFT ARE FAR REMOVED FROM THE MODERNTHESE AIRCRAFT ARE FAR REMOVED FROM THE MODERN

TECHNOLOGY THAT STUDENT PILOTS WILL BE FACED WITH IN THETECHNOLOGY THAT STUDENT PILOTS WILL BE FACED WITH IN THEFUTUREFUTURE

�� SA NEEDS TO PRODUCE SUCH TRAINING PLATFORMS THAT ARE INSA NEEDS TO PRODUCE SUCH TRAINING PLATFORMS THAT ARE INLINE WITH WORLDLINE WITH WORLD--WIDE TRENDSWIDE TRENDS

�� THIS CREATES A VALUABLE OPPORTUNITY FOR RCA & GOVERNMENTTHIS CREATES A VALUABLE OPPORTUNITY FOR RCA & GOVERNMENT�� TO WORK TOGETHER TO SATISFY THE NEEDS AND STIMULATE THETO WORK TOGETHER TO SATISFY THE NEEDS AND STIMULATE THE

MANUFACTURE AND CERTIFICATION OF MANUFACTURE AND CERTIFICATION OF SASA’’ss OWN FULLY CERTIFIEDOWN FULLY CERTIFIEDAIRCRAFT EQUIPPED WITH GLASS COCKPITSAIRCRAFT EQUIPPED WITH GLASS COCKPITS

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ADVANCED TRAINING PLATFORMSADVANCED TRAINING PLATFORMSGLASS COCKPITS / ELECTRONIC FLIGHT INFORMATION SYSTEMSGLASS COCKPITS / ELECTRONIC FLIGHT INFORMATION SYSTEMS

�� A GLASS COCKPIT FEATURES ELECTRONIC (DIGITAL) INSTRUMENT DISPLAA GLASS COCKPIT FEATURES ELECTRONIC (DIGITAL) INSTRUMENT DISPLAYSYS�� SYMPLIFYING AIRCRAFT OPERATION AND NAVIGATIONSYMPLIFYING AIRCRAFT OPERATION AND NAVIGATION�� ALLOWING THE PILOT TO FOCUS ON THE MOST PERTINENT INFORMATIONALLOWING THE PILOT TO FOCUS ON THE MOST PERTINENT INFORMATION

�� INCREASING SAFETY, EFFICIENCY AND SITUATIONAL AWARENESSINCREASING SAFETY, EFFICIENCY AND SITUATIONAL AWARENESS�� THE GLASS COCKPIT HAS BECOME STANDARD IN COMMERCIAL & GENERAL ATHE GLASS COCKPIT HAS BECOME STANDARD IN COMMERCIAL & GENERAL AVIATIONVIATION�� NOW BEING USED EXTENSIVELY IN TRAINING AIRCRAFTNOW BEING USED EXTENSIVELY IN TRAINING AIRCRAFT

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RCARCA’’s PRODUCTION BUILT AIRCRAFTs PRODUCTION BUILT AIRCRAFTA RANGE OF A RANGE OF VANVAN’’ss RV TWO & FOUR SEAT AIRCRAFTRV TWO & FOUR SEAT AIRCRAFT

�� RCA IS THE ONLY APPROVED MANUFACTURER OF THE RCA IS THE ONLY APPROVED MANUFACTURER OF THE VANVAN’’ss RV AIRCRAFTRV AIRCRAFT

�� MODERN GLASS COCKPITS (EFIS) ARE STANDARD EQUIPMENTMODERN GLASS COCKPITS (EFIS) ARE STANDARD EQUIPMENT�� THE RV RANGE HAS RECEIVED WORLDTHE RV RANGE HAS RECEIVED WORLD--WIDE ACCLAIM WIDE ACCLAIM –– 7 600 CURRENTLY FLYING7 600 CURRENTLY FLYING�� MORE THAN 17 000 MORE THAN 17 000 VANVAN’’ss RV KITS SOLD WORLDRV KITS SOLD WORLD--WIDEWIDE�� A TECHNOLOGICALLY ADVANCED TRAINING PLATFORM TO MEET ALL REQUIRA TECHNOLOGICALLY ADVANCED TRAINING PLATFORM TO MEET ALL REQUIREMENTSEMENTS

�� MANUFACTURED UNDER SACAA NTCA CATEGORYMANUFACTURED UNDER SACAA NTCA CATEGORY�� REQUIRES FULL TYPE CERTIFICATION FOR INTERNATIONAL ACCEPTANCEREQUIRES FULL TYPE CERTIFICATION FOR INTERNATIONAL ACCEPTANCE

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RCARCA’’s AERO MEDICAL LIFE SUPPORT SYSTEMSs AERO MEDICAL LIFE SUPPORT SYSTEMSTHE ONLY MANUFACTURER OF EMS INTERIORS IN AFRICATHE ONLY MANUFACTURER OF EMS INTERIORS IN AFRICA

�� AERO MEDICAL LIFE SUPPORT SYSTEMS FOR ROTOR & FIXED WING AIRCRAAERO MEDICAL LIFE SUPPORT SYSTEMS FOR ROTOR & FIXED WING AIRCRAFTFT

�� ESSENTIAL FOR THE EVACUATION & TRANSPORTATION OF PATIENTS BY AIESSENTIAL FOR THE EVACUATION & TRANSPORTATION OF PATIENTS BY AIRR�� SEVERAL SYSTEMS ARE IN SERVICE WITH SA RED CROSS & EMS OPERATORSEVERAL SYSTEMS ARE IN SERVICE WITH SA RED CROSS & EMS OPERATORSS�� VAST INTEREST SHOWN BY AIRCRAFT MANUFACTURERS SUCH AS AGUSTAVAST INTEREST SHOWN BY AIRCRAFT MANUFACTURERS SUCH AS AGUSTA�� AN IDEAL OPPORTUNITY FOR RCA TO EXPAND ITS MANUFACTURING CAPABIAN IDEAL OPPORTUNITY FOR RCA TO EXPAND ITS MANUFACTURING CAPABILITYLITY

�� HUGE POTENTIAL FOR THE SALE OF CUSTOMISED SYSTEMS INTERNATIONALHUGE POTENTIAL FOR THE SALE OF CUSTOMISED SYSTEMS INTERNATIONALLYLY�� AS WITH THE RCA AIRCRAFT AS WITH THE RCA AIRCRAFT -- FUNDING IS REQUIRED FOR INTERNATIONALFUNDING IS REQUIRED FOR INTERNATIONAL

CERTIFICATION OF THE AERO MEDICAL LIFE SUPPORT SYSTEMSCERTIFICATION OF THE AERO MEDICAL LIFE SUPPORT SYSTEMS

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CONSTRAINTS & PROBLEMS ENCOUNTEREDCONSTRAINTS & PROBLEMS ENCOUNTEREDARMS DEAL OFFSET FUNDSARMS DEAL OFFSET FUNDS

�� RCA HAS ALWAYS BEEN PROACTIVE IN PROMOTING THE CONCEPT OF RCA HAS ALWAYS BEEN PROACTIVE IN PROMOTING THE CONCEPT OF LOCALLY PRODUCED AIRCRAFT & ASSEMBLIES FOR EXPORTLOCALLY PRODUCED AIRCRAFT & ASSEMBLIES FOR EXPORT

�� BUT MANY DOORS HAVE BEEN CLOSED ON USBUT MANY DOORS HAVE BEEN CLOSED ON US�� MANY COMPANIES WERE TO HAVE BENEFITTED FROM THE MANY COMPANIES WERE TO HAVE BENEFITTED FROM THE ““ARMS DEALARMS DEAL””

OFFSET PROGRAMOFFSET PROGRAM�� NUMEROUS DISCUSSIONS WERE HELD WITH THE DTI TO SECURE FUNDSNUMEROUS DISCUSSIONS WERE HELD WITH THE DTI TO SECURE FUNDS�� ATTEMPTS BY RCA TO BE CONSIDERED FOR FUNDING FAILEDATTEMPTS BY RCA TO BE CONSIDERED FOR FUNDING FAILED�� THE REASON GIVEN AT THE TIME THE REASON GIVEN AT THE TIME –– ALL OFFSET FUNDS HAD BEEN ALLOCATED & NOALL OFFSET FUNDS HAD BEEN ALLOCATED & NO

FURTHER FUNDS WERE AVAILABLEFURTHER FUNDS WERE AVAILABLE�� YEARS LATER A VERY DIFFERENT PICTURE HAS EMERGEDYEARS LATER A VERY DIFFERENT PICTURE HAS EMERGED�� FOREIGN COMPANIES THAT BENEFITTED FROM THE DEAL HAVE ONLY INVESFOREIGN COMPANIES THAT BENEFITTED FROM THE DEAL HAVE ONLY INVESTED ATED A

PORTION OF WHAT THEY WERE SUPPOSED TOPORTION OF WHAT THEY WERE SUPPOSED TO

�� THE PROMISE OF MANY THOUSANDS OF JOBS BEING CREATED HAS NOT THE PROMISE OF MANY THOUSANDS OF JOBS BEING CREATED HAS NOT MATERIALISEDMATERIALISED

�� OFFSET CREDITS HAVE ALSO BEEN GIVEN TO THESE COMPANIES TOTALLINOFFSET CREDITS HAVE ALSO BEEN GIVEN TO THESE COMPANIES TOTALLINGGBILLIONS OF RANDSBILLIONS OF RANDS

�� THERE ARE MORE QUESTIONS THAN ANSWERS & LOCAL COMPANIES THAT COTHERE ARE MORE QUESTIONS THAN ANSWERS & LOCAL COMPANIES THAT COULDULDHAVE MADE A VALUABLE CONTRIBUTION TO HAVE MADE A VALUABLE CONTRIBUTION TO SASA’’ss ECONOMY HAVE ONCE AGAIN BEENECONOMY HAVE ONCE AGAIN BEENLEFT WANTINGLEFT WANTING

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CONSTRAINTS & PROBLEMS ENCOUNTEREDCONSTRAINTS & PROBLEMS ENCOUNTERED

APPLICATION FOR FUNDING THROUGH THE DTI & IDCAPPLICATION FOR FUNDING THROUGH THE DTI & IDC

�� IPAP CALLS FOR THE SCALING UP OF EFFORTS TO PROMOTE LONGIPAP CALLS FOR THE SCALING UP OF EFFORTS TO PROMOTE LONGTERM INDUSTRIAL DIVERSIFICATIONTERM INDUSTRIAL DIVERSIFICATION

�� UNFORTUNATELY, THE IDEALS AND GOALS OF IPAP ARE FARUNFORTUNATELY, THE IDEALS AND GOALS OF IPAP ARE FARREMOVED FROM THE REALLITY OF WHAT COMPANIES ARE FACEDREMOVED FROM THE REALLITY OF WHAT COMPANIES ARE FACEDWITHWITH

�� GOVERNMENT & MINISTERS HAVE THE RIGHT IDEAS BUT THATGOVERNMENT & MINISTERS HAVE THE RIGHT IDEAS BUT THAT’’SSWHERE IT STOPSWHERE IT STOPS

�� THOSE RESPONSIBLE FOR IMPLEMENTING POLICY HAVE VERYTHOSE RESPONSIBLE FOR IMPLEMENTING POLICY HAVE VERYLITTLE KNOWLEDGE ABOUT CERTAIN INDUSTRIES & THEIR SPECIFICLITTLE KNOWLEDGE ABOUT CERTAIN INDUSTRIES & THEIR SPECIFICREQUIREMENTS REQUIREMENTS –– ESPECIALLY IN AVIATIONESPECIALLY IN AVIATION

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CONSTRAINTS & PROBLEMS ENCOUNTEREDCONSTRAINTS & PROBLEMS ENCOUNTERED

APPLICATION FOR FUNDING / TECHNOLOGY INNOVATION AGENCYAPPLICATION FOR FUNDING / TECHNOLOGY INNOVATION AGENCY(DEPARTMENT SCIENCE & TECHNOLOGY)(DEPARTMENT SCIENCE & TECHNOLOGY)

�� IN 2010 RCA MADE APPLICATION TO TIA TO FINALISE DEVELOPMENTIN 2010 RCA MADE APPLICATION TO TIA TO FINALISE DEVELOPMENTOF THE AERO MEDICAL LIFE SUPPORT SYSTEMS & FOR THEOF THE AERO MEDICAL LIFE SUPPORT SYSTEMS & FOR THECERTIFICATION OF THE PRODUCT FOR EXPORTCERTIFICATION OF THE PRODUCT FOR EXPORT

�� THE SYSTEM WAS ALREADY MANUFACTURED & TESTEDTHE SYSTEM WAS ALREADY MANUFACTURED & TESTEDOPERATIONALLY BY SA RED CROSSOPERATIONALLY BY SA RED CROSS

�� RCARCA’’s APPLICATION WAS UNSUCCESSFULs APPLICATION WAS UNSUCCESSFUL�� THE RESPONSE FROM TIA WAS AS FOLLOWS:THE RESPONSE FROM TIA WAS AS FOLLOWS:

““FUNDING FOR EXPANSION & INTERNATIONAL CERTIFICATION WITHFUNDING FOR EXPANSION & INTERNATIONAL CERTIFICATION WITH

A LACK OF RESEARCH & DEVELOPMENT LEADING UP TO AA LACK OF RESEARCH & DEVELOPMENT LEADING UP TO A

TECHNOLOGY INNOVATION DOES NOT FALL WITHIN THE MANDATETECHNOLOGY INNOVATION DOES NOT FALL WITHIN THE MANDATE

OF THE TIAOF THE TIA””

�� CLEARLY TIA MISSED THE POINT COMPLETELY AS MILLIONS HADCLEARLY TIA MISSED THE POINT COMPLETELY AS MILLIONS HADALREADY BEEN SPENT ON R&D ALREADY BEEN SPENT ON R&D

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CONSTRAINTS & PROBLEMS ENCOUNTEREDCONSTRAINTS & PROBLEMS ENCOUNTERED

APPLICATION FOR FUNDING THROUGH THE IDCAPPLICATION FOR FUNDING THROUGH THE IDC

�� IN 2011 RCA MADE APPLICATION TO THE IDC FOR FUNDING TOIN 2011 RCA MADE APPLICATION TO THE IDC FOR FUNDING TOEXPAND THE MANUFACTURING FACILITIES & PRODUCTION OF AEXPAND THE MANUFACTURING FACILITIES & PRODUCTION OF AFLEET OF AIRCRAFT FOR SALE & LEASE TO FLEET OF AIRCRAFT FOR SALE & LEASE TO ATOATO’’ss & THE SAAF& THE SAAF

�� THIS APPLICATION WAS ALSO UNSUCCESSFULTHIS APPLICATION WAS ALSO UNSUCCESSFUL�� THE RESPONSE FROM IDC WAS AS FOLLOWS:THE RESPONSE FROM IDC WAS AS FOLLOWS:

““THE CURRENT APPLICATION FALLS OUTSIDE THE IDCTHE CURRENT APPLICATION FALLS OUTSIDE THE IDC’’ss

INVESTMENT MANDATEINVESTMENT MANDATE””

�� ONCE AGAIN THE TREMENDOUS BENEFITS AND POTENTIAL HADONCE AGAIN THE TREMENDOUS BENEFITS AND POTENTIAL HADBEEN OVERLOOKEDBEEN OVERLOOKED

�� WE FIRMLY BELIEVE THAT IMPORTANT DECISIONS AND THE FATEWE FIRMLY BELIEVE THAT IMPORTANT DECISIONS AND THE FATEOF A COMPANYOF A COMPANY’’S FUTURE ARE BEING LEFT UP TO INDIVIDUALSS FUTURE ARE BEING LEFT UP TO INDIVIDUALSWHO ARE NOT IN TOUCH OR IN TUNE WITH GOVERNMENTWHO ARE NOT IN TOUCH OR IN TUNE WITH GOVERNMENT’’SSPOLICY POLICY

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CONSTRAINTS & PROBLEMS ENCOUNTEREDCONSTRAINTS & PROBLEMS ENCOUNTERED

APPLICATION FOR REBATES THROUGH DTIAPPLICATION FOR REBATES THROUGH DTI’’s INCENTIVE PROGRAMSs INCENTIVE PROGRAMS

�� AVIATION IS A DIVERSE, SPECIALISED & COMPLEX INDUSTRY MADEAVIATION IS A DIVERSE, SPECIALISED & COMPLEX INDUSTRY MADEUP OF MANY DIFFERENT FACETS, IE;UP OF MANY DIFFERENT FACETS, IE;

�� DESIGN OF NEW COMPONENTS & ASSEMBLIESDESIGN OF NEW COMPONENTS & ASSEMBLIES�� RESEARCH & DEVELOPMENT OF PRODUCTSRESEARCH & DEVELOPMENT OF PRODUCTS

�� TECHNICAL DRAWINGSTECHNICAL DRAWINGS

�� CERTIFICATION OF NEW PRODUCTSCERTIFICATION OF NEW PRODUCTS

�� MANUFACTURE OF AIRCRAFT ASSEMBLIES & COMPONENTSMANUFACTURE OF AIRCRAFT ASSEMBLIES & COMPONENTS

�� MAINTENANCE OF AIRFRAMES, ENGINES & AVIONICSMAINTENANCE OF AIRFRAMES, ENGINES & AVIONICS

�� TRAINING OF APPRENTICES & PILOTS TRAINING OF APPRENTICES & PILOTS

�� DTIDTI’’s MANUFACTURING INCENTIVE PROGRAM (MIP) PROVIDES As MANUFACTURING INCENTIVE PROGRAM (MIP) PROVIDES AMAXIMUM REBATE OF 30% ON CAPITAL EXPENDITUREMAXIMUM REBATE OF 30% ON CAPITAL EXPENDITURE

�� 70% OF OUR BUSINESS IS PRIMARILY ABOUT DESIGN, R&D AND70% OF OUR BUSINESS IS PRIMARILY ABOUT DESIGN, R&D ANDCERTIFICATION BEFORE MANUFACTURE COMMENCESCERTIFICATION BEFORE MANUFACTURE COMMENCES

�� DTIDTI’’s REBATE SCHEME EFFECTIVELY OFFERS 30% OF 30% OF THEs REBATE SCHEME EFFECTIVELY OFFERS 30% OF 30% OF THEBUSINESSBUSINESS

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HOW TO OVERCOME THE PROBLEMSHOW TO OVERCOME THE PROBLEMS

�� DISCRETIONARY FUNDING IS REQUIRED TO MEETDISCRETIONARY FUNDING IS REQUIRED TO MEET

THE GOALS & OBJECTIVES OF GOVERNMENTTHE GOALS & OBJECTIVES OF GOVERNMENT’’SS

INDUSTRIAL POLICY ACTION PLANINDUSTRIAL POLICY ACTION PLAN

�� THIS WILL LEAD TO THE DEVELOPMENT & SUSTAINABLETHIS WILL LEAD TO THE DEVELOPMENT & SUSTAINABLE

GROWTH OF AN INDUSTRY THAT WILL MAKE AGROWTH OF AN INDUSTRY THAT WILL MAKE A

MEANINGFUL CONTRIBUTION TO JOB CREATION ANDMEANINGFUL CONTRIBUTION TO JOB CREATION AND

SKILLS DEVELOPMENTSKILLS DEVELOPMENT

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SUPPLYING LOCAL DEMANDSUPPLYING LOCAL DEMAND

�� RCARCA’’S VISION & EXPANSION PLAN IS IN TUNE WITH GOVERNMENTS VISION & EXPANSION PLAN IS IN TUNE WITH GOVERNMENT’’SSINDUSTRIAL POLICY ACTION PLANINDUSTRIAL POLICY ACTION PLAN

�� INTERVENTION IS REQUIRED TO MAKE IT POSSIBLEINTERVENTION IS REQUIRED TO MAKE IT POSSIBLE�� THE IMPORTATION OF RAW MATERIALS & AVIATION GRADE ALUMINIUM ISTHE IMPORTATION OF RAW MATERIALS & AVIATION GRADE ALUMINIUM IS

ONE OF THE BIGGEST OBSTACLESONE OF THE BIGGEST OBSTACLES�� SA SA ISIS IN A POSITION TO PRODUCE THESE MATERIALSIN A POSITION TO PRODUCE THESE MATERIALS�� BUT A MANUFACTURING PLANT HAS NOT YET BEEN SET UPBUT A MANUFACTURING PLANT HAS NOT YET BEEN SET UP�� IT REQUIRES A PARTNERSHIP WITH GOVERNMENT TO DO SOIT REQUIRES A PARTNERSHIP WITH GOVERNMENT TO DO SO�� COSTS IN THE INDUSTRY WILL BE REDUCEDCOSTS IN THE INDUSTRY WILL BE REDUCED�� IT WILL INITIATE THE MANUFACTURE OF RAW MATERIALSIT WILL INITIATE THE MANUFACTURE OF RAW MATERIALS�� IT WILL INCENTIVISE OTHER TO DEVELOP A SUSTAINABLEIT WILL INCENTIVISE OTHER TO DEVELOP A SUSTAINABLE

INDUSTRYINDUSTRY�� PARTNERSHIP AGREEMENTS HAVE WORKED IN OTHER COUNTRIESPARTNERSHIP AGREEMENTS HAVE WORKED IN OTHER COUNTRIES�� AIRBUS SUBCONTRACTS THE MANUFACTURE OF COMPONENTS TOAIRBUS SUBCONTRACTS THE MANUFACTURE OF COMPONENTS TO

MANY OTHER LOCAL COMPANIES IN EUROPEMANY OTHER LOCAL COMPANIES IN EUROPE�� WHY CANWHY CAN’’T WE DO THE SAME IN SOUTH AFRICA?T WE DO THE SAME IN SOUTH AFRICA?�� IN THE USA, EUROPE AND OTHER IN THE USA, EUROPE AND OTHER ““BRICBRIC”” COUNTRIES, AVIATION HASCOUNTRIES, AVIATION HAS

BEEN SUPPORTED BY THEIR GOVERNMENTS BEEN SUPPORTED BY THEIR GOVERNMENTS –– THE SAME NEEDS TOTHE SAME NEEDS TODONE IN SOUTH AFRICA DONE IN SOUTH AFRICA

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MEETING THE CHALLENGE MEETING THE CHALLENGE –– THE RCA SOLUTIONTHE RCA SOLUTION

�� ROBIN COSS AVIATION HAS A BUSINESS PLAN & ROBIN COSS AVIATION HAS A BUSINESS PLAN & ““AN ACTION PLANAN ACTION PLAN”” THATTHATADDRESSES THE NEEDS OF THE INDUSTRYADDRESSES THE NEEDS OF THE INDUSTRY

�� IT WILL CREATE AN INDUSTRY OF STRATEGIC IMPORTANCEIT WILL CREATE AN INDUSTRY OF STRATEGIC IMPORTANCE�� THIS IS A DYNAMIC APPROACH TO CREATE THIS IS A DYNAMIC APPROACH TO CREATE ““INFINITE OPPORTUNITIESINFINITE OPPORTUNITIES””�� IT WILL MAKE A HUGE CONTRIBUTION TO MEANINGFUL JOB CREATION ANDIT WILL MAKE A HUGE CONTRIBUTION TO MEANINGFUL JOB CREATION AND

SKILLS DEVELOPMENTSKILLS DEVELOPMENT�� IT WILL DIVERSIFY OUR LOCAL AVIATION INDUSTRY AND GROW OURIT WILL DIVERSIFY OUR LOCAL AVIATION INDUSTRY AND GROW OUR

EXPORT POTENTIALEXPORT POTENTIAL�� IT WILL BUILD LONGIT WILL BUILD LONG--TERM INDUSTRIAL CAPABILITY & GROW SOUTH AFRICATERM INDUSTRIAL CAPABILITY & GROW SOUTH AFRICA’’SS

TECHNOLOGY BASETECHNOLOGY BASE�� THE ACTION PLAN WILL RESOLVE PROBLEMS AND CONSTRAINTS THAT HAVETHE ACTION PLAN WILL RESOLVE PROBLEMS AND CONSTRAINTS THAT HAVE

LIMITED THE DEVELOPMENT OF A DYNAMIC INDUSTRY WITH HUGELIMITED THE DEVELOPMENT OF A DYNAMIC INDUSTRY WITH HUGEPOTENTIALPOTENTIAL

�� RCA WISHES TO PARTNER WITH THE GOVERNMENT TO SPEARHEAD THERCA WISHES TO PARTNER WITH THE GOVERNMENT TO SPEARHEAD THEACTION PLAN THAT WILL PROVIDE SOLUTIONS FOR:ACTION PLAN THAT WILL PROVIDE SOLUTIONS FOR:

THE STRATEGIC GROWTH OF THE INDUSTRY THE STRATEGIC GROWTH OF THE INDUSTRY

ENHANCE & ACCELERATE ECONOMIC GROWTHENHANCE & ACCELERATE ECONOMIC GROWTHCREATE SUSTAINABLE WEALTHCREATE SUSTAINABLE WEALTH

IMPROVE THE QUALITY OF LIFE OF MANY SOUTH AFRICANSIMPROVE THE QUALITY OF LIFE OF MANY SOUTH AFRICANS

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MEETING THE CHALLENGE MEETING THE CHALLENGE –– THE RCA SOLUTIONTHE RCA SOLUTION

OTHER BENEFITS INCLUDE:OTHER BENEFITS INCLUDE:

�� TAKING A WIDER SPECTRUM OF SA INDUSTRY INTO HIGHER TECHNOLOGYTAKING A WIDER SPECTRUM OF SA INDUSTRY INTO HIGHER TECHNOLOGYDEVELOPMENT & MANUFACTUREDEVELOPMENT & MANUFACTURE

�� CREATE A PLATFORM TO PROVIDE HIGHERCREATE A PLATFORM TO PROVIDE HIGHER--VALUE ACTIVITIESVALUE ACTIVITIES�� TURN SATURN SA’’S AVIATION INDUSTRY INTO A NATIONAL ECONOMIC ASSETS AVIATION INDUSTRY INTO A NATIONAL ECONOMIC ASSET�� ENSURE THAT OUR TECHNOLOGY RESOURCES ARE BETTER DEVELOPED,ENSURE THAT OUR TECHNOLOGY RESOURCES ARE BETTER DEVELOPED,

FOCUSED AND UTILIZEDFOCUSED AND UTILIZED�� BUILD THE CAPACITY TO MANUFACTURE AVIATION PARTS, COMPONENTS &BUILD THE CAPACITY TO MANUFACTURE AVIATION PARTS, COMPONENTS &

ASSEMBLIES FOR EXPORTASSEMBLIES FOR EXPORT�� ENSURE THAT SA BECOMES MORE COMPETITIVE ON THE INTERNATIONALENSURE THAT SA BECOMES MORE COMPETITIVE ON THE INTERNATIONAL

MARKETMARKET�� BUILD OUR MANUFACTURING CAPABILITIES TO MASTER ADVANCEDBUILD OUR MANUFACTURING CAPABILITIES TO MASTER ADVANCED

TECHNOLOGY DOMAINSTECHNOLOGY DOMAINS�� DECENTRALISE THE INDUSTRY AND ALLOW SMALLER COMPANIES TO DECENTRALISE THE INDUSTRY AND ALLOW SMALLER COMPANIES TO

COMPETE IN AN INDUSTRY THAT UP UNTIL NOW HAS BEEN DOMINATED BCOMPETE IN AN INDUSTRY THAT UP UNTIL NOW HAS BEEN DOMINATED BYYA FEW LARGE PLAYERSA FEW LARGE PLAYERS

�� CREATE CLUSTERS OF HIGH TECHNOLOGY INDUSTRY TO INCREASE LOCALCREATE CLUSTERS OF HIGH TECHNOLOGY INDUSTRY TO INCREASE LOCALCONTENT AND PROVIDE ADDED VALUECONTENT AND PROVIDE ADDED VALUE

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MEETING THE CHALLENGE MEETING THE CHALLENGE –– THE RCA SOLUTIONTHE RCA SOLUTION

WHAT IS REQUIRED?WHAT IS REQUIRED?

�� THE LOCAL AVIATION INDUSTRY NEEDS TO BECOME ANTHE LOCAL AVIATION INDUSTRY NEEDS TO BECOME AN

EXPORTER OF COMPLETE AIRCRAFT, AVIATION PARTS,EXPORTER OF COMPLETE AIRCRAFT, AVIATION PARTS,COMPONENTS & ASSEMBLIES RATHER THAN ANCOMPONENTS & ASSEMBLIES RATHER THAN AN

IMPORTER OF PRODUCTSIMPORTER OF PRODUCTS

�� IT REQUIRES GOVERNMENT INTERVENTIONIT REQUIRES GOVERNMENT INTERVENTION

�� IT REQUIRES TECHNOLOGY TRANSFER AGREEMENTSIT REQUIRES TECHNOLOGY TRANSFER AGREEMENTS

WITH WELL ESTABLISHED INTERNATIONAL COMPANIESWITH WELL ESTABLISHED INTERNATIONAL COMPANIES

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�� THE BIGGEST CONSTRAINT FACING THE SUCCESSFULTHE BIGGEST CONSTRAINT FACING THE SUCCESSFUL

IMPLEMENTATION OF THE PROJECT IS ACCESS TO ANDIMPLEMENTATION OF THE PROJECT IS ACCESS TO ANDDISCUSSION WITH DECISION MAKERS, KEY ROLEDISCUSSION WITH DECISION MAKERS, KEY ROLE

PLAYERS AND DISCRETIONARY FUNDINGPLAYERS AND DISCRETIONARY FUNDING

�� RCA NEEDS TO BE PROVIDED WITH AN OPPORTUNITY TORCA NEEDS TO BE PROVIDED WITH AN OPPORTUNITY TOPRESENT ITS PROPOSALS & ACTION PLAN TO RELEVANTPRESENT ITS PROPOSALS & ACTION PLAN TO RELEVANT

STAKEHOLDERS TO DETERMINE THE WAY FORWARDSTAKEHOLDERS TO DETERMINE THE WAY FORWARD

�� RCA WOULD LIKE TO SPEARHEAD THE RELATIONSHIPRCA WOULD LIKE TO SPEARHEAD THE RELATIONSHIPWITH GOVERNMENT TO CREATE A MEANINGFULWITH GOVERNMENT TO CREATE A MEANINGFUL

PARTNERSHIP WHICH WILL BE AN INSPIRATION TOPARTNERSHIP WHICH WILL BE AN INSPIRATION TO

OTHERSOTHERS

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ROBIN COSS AVIATION RESPECTFULLY REQUESTS THE PORTFOLIOROBIN COSS AVIATION RESPECTFULLY REQUESTS THE PORTFOLIOCOMMITTEE TO ACT AS THE INTERFACE BETWEEN RCA & OTHERCOMMITTEE TO ACT AS THE INTERFACE BETWEEN RCA & OTHERGOVERNMENT DEPARTMENTS AND TO PROVIDE OVERSIGHT ANDGOVERNMENT DEPARTMENTS AND TO PROVIDE OVERSIGHT ANDASSISTANCE WITH THE FOLLOWING:ASSISTANCE WITH THE FOLLOWING:

�� CONSULTATION WITH THE MINISTER OF DEFENCE TO PROVIDE A LOCALLY CONSULTATION WITH THE MINISTER OF DEFENCE TO PROVIDE A LOCALLY BUILT AIRCRAFT FOR THEIR PILOT TRAINING REQUIREMENTS BUILT AIRCRAFT FOR THEIR PILOT TRAINING REQUIREMENTS

�� CONSULTATION WITH SA AIRWAYS TO PROVIDE A LOCALLY BUILT AIRCRAFTCONSULTATION WITH SA AIRWAYS TO PROVIDE A LOCALLY BUILT AIRCRAFTFOR THEIR PILOT TRAINING REQUIREMENTS FOR THEIR PILOT TRAINING REQUIREMENTS

�� DISCUSSION WITH RELEVANT ROLE PLAYERS TO ENSURE THATDISCUSSION WITH RELEVANT ROLE PLAYERS TO ENSURE THATPREFERRED PROCUREMENT BECOMES A REALLITYPREFERRED PROCUREMENT BECOMES A REALLITY

�� CONSULTATION WITH THE DEFENCE REVUE COMMITTEE REGARDINGCONSULTATION WITH THE DEFENCE REVUE COMMITTEE REGARDINGPREFERRED LOCAL PROCUREMENTPREFERRED LOCAL PROCUREMENT

�� ACCESS TO DISCRETIONARY OR DONOUR FUNDING THAT WE MIGHTACCESS TO DISCRETIONARY OR DONOUR FUNDING THAT WE MIGHTNOT BE AWARE OFNOT BE AWARE OF

�� CONSULTATION & INTERACTION WITH KEY ROLE PLAYERS THAT WILL ENABLCONSULTATION & INTERACTION WITH KEY ROLE PLAYERS THAT WILL ENABLE E RCA & ITS SUBRCA & ITS SUB--CONTRACTORS TO ENTER THE GLOBAL SUPPLY CHAINCONTRACTORS TO ENTER THE GLOBAL SUPPLY CHAIN

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ROBIN COSS AVIATION CAN SEE AMAZING OPPORTUNITIES TO EXPAND &ROBIN COSS AVIATION CAN SEE AMAZING OPPORTUNITIES TO EXPAND &DEVELOP THE LOCAL AVIATION INDUSTRY BUT CANNOT DO IT ON ITS OWNDEVELOP THE LOCAL AVIATION INDUSTRY BUT CANNOT DO IT ON ITS OWN

IT REQUIRES THE INVOLVEMENT & SUPPORT OF GOVERNMENT & INDIVIDUALIT REQUIRES THE INVOLVEMENT & SUPPORT OF GOVERNMENT & INDIVIDUALSSTO JOIN HAND AND CREATE AN EMPLOYMENT PLATFORM FROM WHICH MANYTO JOIN HAND AND CREATE AN EMPLOYMENT PLATFORM FROM WHICH MANYSOUTH AFRICANS WILL BENEFITSOUTH AFRICANS WILL BENEFIT

RCARCA’’S PASSION, DEDICATION AND EXPERIENCE CAN BE HARNESSED TO ACTS PASSION, DEDICATION AND EXPERIENCE CAN BE HARNESSED TO ACTAS A CATALYST TO GROW THE AVIATION COMMUNITY AND OPEN UP NEWAS A CATALYST TO GROW THE AVIATION COMMUNITY AND OPEN UP NEWBUSINESS CLUSTERS THAT WILL SPREAD THE WEALTH AND GROW THEBUSINESS CLUSTERS THAT WILL SPREAD THE WEALTH AND GROW THEKNOWLEDGE BASE OF OTHERSKNOWLEDGE BASE OF OTHERS

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That Concludes Our PresentationThat Concludes Our PresentationTOTO

Portfolio Committee For Trade & IndustryPortfolio Committee For Trade & Industry

Thank you for the opportunity and we trust that every effort wilThank you for the opportunity and we trust that every effort will be made l be made to assist RCA in its attempts to expand and develop the local avto assist RCA in its attempts to expand and develop the local aviation iation

industry in line with the governmentindustry in line with the government’’s Industrial Policy Action Plan.s Industrial Policy Action Plan.

We look forward to further interaction with the Portfolio CommitWe look forward to further interaction with the Portfolio Committee and tee and hope that you will see Robin Coss Aviation ashope that you will see Robin Coss Aviation as

““THE POSTER BOYS FOR SUCCESSTHE POSTER BOYS FOR SUCCESS””