CAE Signs Contracts for Three Full-Flight Simulators, Reports 34 FFS Orders in Fiscal 2009

Strategic Insights -

CAE has signed contracts to design and manufacture three full-flight simulators (FFSs) valued at C$33 million at list prices over the past month. This brings the company's total orders for FFSs in fiscal 2009 to 34, despite a contract being terminated and then sold to an undisclosed customer. The new contracts are with first-time simulation equipment customers Avianca Airlines and Sofia Flight Training, as well as Emirates-CAE Flight Training (ECFT). CAE's diversified business portfolio is expected to help the company navigate the challenging civil aviation market ahead.

Key Takeaways:

  • CAE has signed contracts for three FFSs and associated training devices valued at C$33 million at list prices.
  • The contracts are with Avianca Airlines, Sofia Flight Training, and Emirates-CAE Flight Training (ECFT), all first-time simulation equipment customers for CAE.
  • Despite the termination of a contract with Flight Training Finance (FTF), CAE will report 34 FFS orders in fiscal 2009, up from 35 initial orders.
  • CAE's diversified business portfolio is expected to help the company succeed in the challenging civil aviation market.
  • The company has a strong backlog of orders, with CAE 5000 Series A320 FFSs and related training devices to be delivered to Avianca in 2009, and a CAE 7000 Series A320 FFS to be delivered to ECFT in early 2010.

Statistics:

  • CAE has received orders for 34 FFSs in fiscal 2009.
  • The contracts are valued at C$33 million at list prices.
  • CAE employs approximately 7,000 people at more than 75 sites and training locations in 20 countries.
  • As of 2009, CAE has the largest installed base of civil and military full-flight simulators and training devices.
  • CAE trains more than 75,000 crewmembers yearly through its global network of 27 civil aviation and military training centres.
  • The company has annual revenues exceeding C$1.4 billion.

Sources:

  • CAE Inc.
  • Market Wire, April 01, 2009
  • Comtex SmarTrend Alert, March 28, 2009 (available at www.mysmartrend.com)