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Aviation History
1994
1994 - 1722.PDF
NEWSMAKERS GLOBAL AMBITIONS Louis Le Portz has pushed Thomson Training and Simulation (TTS) into second place in the world commercial- simulation business rankings since he joined the division in January 1992. He is now preparing for the future. Things have moved fast since Louis Le Portz took over the Simulation division of Thomson-CSF 30 months ago, declaring that there was "only room for two major players" in the commercial-simulation business. The prophesy became reality when the French com pany purchased the Hughes Rediffusion simulation busi ness in December 1993, leaving Thomson-CSF and Canadian-based CAE con trolling the bulk of the world's commercial and non-US military-simulation market. Le Portz is full of enthusiasm for Thomson's position following its spending spree over the last few years — during which it also picked up Link-Miles in the UK. "We have a full range of civil and military products now... we're virtually a 'one-stop shop' for the aerospace industry." TTS is now undergoing a period of consolidation, says Le Portz. "We have time to do that, because civil and military business remains quite slow. It's an ideal moment to develop the synergies within the group, and elaborate our strategies, so that we're ready for the future." He likens events over the last few years to a game of rugby foot ball. "You score a try, then you convert it to get more points. We've scored the tries, now we're converting them." The division's strategy reflects that of the whole Thomson group. "There are two key things," says Le Portz. "First, we concentrate on our core businesses. Simulation is one of them. Second, in select ed businesses, we have decided that we will be number one in Europe, and not less than num ber two in the world..That explains everything the group has been doing over the last few years." The absorption of former arch-competitor Rediffusion, and the creation of Thomson Training and Simulation, based at Rediffusion's old home at Crawley, has, admits le Portz, resulted in what he calls a "cul tural challenge". "Rediffusion had its own culture, and they are proud of that. I have explained that they should remain proud — but also that we must evolve." TTS is extremely well placed to compete with CAE, says Le Portz, because it can take advantage of the other parts of the Thomson group, which does 80% of its business overseas. "That gives us a huge international network to draw on. We also plough 25% of our revenues back into research and development each year, which means we have a won derful tool to make sure we're at the leading edge of technolo gy. That's what the simulation business demands." Thomson, like CAE, has one major area of weakness, which Le Portz says he has accepted. "We remain shut out of the US military-simulation market, because it is so protective." While there are opportunities for purchasing US-based simu lation companies, he says that he sees "no point" in doing so. "There are always niche areas where we can pick up some business." Apart from that, and a con tinuing problem with sales in China — the result of France's sale of Dassault Aviation Mirage 2000s to Taiwan — Le Portz expresses satisfaction with the TTS portfolio, which is split about 50/50 between civil and military sales. Main areas of near-term growth include the regional-aircraft simulation market "...which we intend to attack quite specifi cally", and the growing demand for helicopter simula tors, reflecting the increasing need for helicopter training. The full-flight commercial- aircraft simulator business "remains flat", says Le Portz, "and I expect it to stay that way for several years, at between 20-30 sales a year. But we see a new growth area in less expen sive, portable devices for pilot training. Training hours will climb...my personal feeling is that the simulation business will evolve towards the training business. We'll do what Flight Safety International did 20 years ago, which is to sell training hours, and deliver pilots. We'll chal lenge FSI on that." TTS has kicked off the trend towards "dry train ing", with its recent pur chase of Orbit Flight Training at East Midlands Airport. This is already equipped with a pair of Boeing 737 simulators, to which Thomson is adding a Boeing 777 sim ulator of its own, due for delivery in 1995. Le Portz is unflustered by the decision of former Rediffusion image-gener ator supplier Evans & Sutherland (E&S) to become independent. "TTS is investing heavily in its own visual prod ucts, and there will be a new development of our Space visu al system at the Farnborough air show. Our strategy is that it is mandatory to master the visuals market. We did not want to buy E&S because it gave us no added value. But E&S can continue to propose its systems to us, and we will support all previous contracts using their equipment. We have a good relationship." "I like the simulation busi ness because it is a daily chal lenge," says Le Portz. "We're playing some very strong com petitors, but we have excellent people to do it with." BY JULIAN MOXON • "We have a full range of civil and military products now...we're virtually a 'one stop shop' for the aerospace industry" Louis Le Portz 20 FLIGHT INTERNATIONAL 20-26 July, 1994
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