CAE announces (TSE:CAE) civil aviation and defence contracts worth $475m

Flight training specialist CAE Inc (TSE:CAE, Mkt cap 4.96B, P/E 21.20, Div/yield 0.08/1.73, EPS 0.88, Shares 268.50M) has signed a series of aviation training contracts worth more than C$250m with airlines and business aircraft operators around the world.

CAE announces TSE:CAE civil aviation and defence contracts $475m

CAE announces (TSE:CAE) civil aviation and defence contracts worth C$475m

Announcing the new contracts last week, the Canadian company said that they include cadet-to-captain training programs, crew resourcing services, and the sale of 12 full-flight simulators (FFS), bringing the total number of FFS sales announced so far this fiscal year to 38.

Among the latest FFS customers are Xiamen Airlines and Shanghai Eastern Flight Training Co in China, Korean Air in South Korea, Sriwijaya Air in Indonesia, and Southwest Airlines in the United States.

Ab-initio pilot training and resourcing agreements were signed with Jetstar Airways Australia and Jetstar Airways Japan, and CAE signed airline and business aviation pilot training contracts with Jet Airways in Asia, Smart Aviation in the Middle-East and Redstar Aviation in Europe.

CAE also announced last week that it had won defence contracts valued at more than C$175m to provide new simulation products, simulator upgrades and training support services for global military customers.

These contracts include a French Air Force ground-based training system for Babcock France, a C295 full-flight simulator for Airbus Defence & Space, and continuing simulator upgrades as well as training support services on the MH-60 Seahawk for both the United States Navy and Royal Australian Navy.

"The contract with Babcock France is a strategic win in Europe that will provide the French Air Force with a modernised training solution for future fighter pilots," commented Gene Colabatistto, CAE group president for Defence & Security. "We have been Airbus' long-time training partner on the C295 program and are pleased we will continue to support the training required on this platform, which now will also include the Royal Canadian Air Force following Canada's selection of the C295 for its Fixed-Wing Search and Rescue program.

"Global militaries and original equipment manufacturers continue to recognize CAE's expertise and experience as a training systems integrator on enduring platforms, and this continues to provide us a healthy pipeline of opportunities around the world."

Montreal based CAE Inc. (TSE-CAE) provides training for the civil aviation, defense and security, and healthcare markets. The Company designs and integrates training solutions. The Company operates through three segments: Civil Aviation Training Solutions, Defense and Security, and Healthcare. It provides integrated training solutions to three markets, such as the civil aviation market, which includes aircraft manufacturers, commercial airlines, regional airlines, business aircraft operators, civil helicopter operators, third-party training centers, flight training organizations, maintenance repair and overhaul organizations and aircraft finance leasing companies; the defense and security market, which includes defense forces, original equipment manufacturers (OEMs), government agencies and public safety organizations, and the healthcare market, which includes hospital and university simulation centers, medical and nursing schools, paramedic organizations, defense forces, medical societies and OEMs. More from Reuters » 

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