CAE (NYSE:CAE)(TSX:CAE) today announced it has concluded a series of long-term commercial training and services contracts adding to its fourth quarter order intake and valued at approximately C$245 million. They span four continents and include a 10-year training provider contract for LAN and TAM Airlines, a contract to supply both ab-initio and type-rating training for new Turkish Airlines pilots, a crew sourcing and services contract with GE Capital Aviation Services, a Long Term Service Agreement with JetBlue Airways for simulator upgrades and a four-year pilot supply agreement with Ryanair.
"These contracts are a testament to CAE's unique ability to offer end-to-end solutions to our airline customers, from ab-initio training to type-rating through to pilot sourcing, and long-term service agreements following the sale of simulators," said Jeff Roberts, CAE Group President, Civil Simulation Products, Training and Services. "We will continue to leverage the capabilities of our recently acquired Oxford Aviation Academy and Parc Aviation and our commercial training network in our commitment to being the partner of choice for airlines on every continent."
LATAM Airlines Group
CAE announced today that is has signed a 10-year contract with LAN and TAM Airlines for training the airlines' pilots and cabin crew. Training will be conducted at CAE training centres in Santiago, Chile; Sao Paulo, Brazil, and Lima, Peru. The new contract expands on previous long-term contracts with LAN and TAM.
In the framework of Turkish Airlines' rapid growth and expansion, Turkish Airlines and CAE have signed a three-year contract to train new Turkish Airlines A320 and B737NG First Officers in a program ranging from ab-initio to type-rating training. Cadet training will start this April at CAE Oxford Aviation Academy in Oxford, UK, and Phoenix, USA, and type-rating training will be conducted in CAE's training centres in Europe. During the first year approximately 100 cadets will commence their training at CAE Oxford Aviation Academy. Turkish Airlines operates CAE-built B737NG and B777 full-flight simulators and is currently a CAE Parc Aviation customer for pilot sourcing.
GE Capital Aviation Services
CAE Parc Aviation has signed a three-year contract with GE Capital Aviation Services (GECAS) to supply technical specialists and provide technical support services, engine management services and ferry flight services. GECAS has been a CAE Parc Aviation customer for 12 years. GECAS is a leading global player in commercial aircraft leasing and financing, with over 1,700 owned and serviced aircraft and approximately 220 customers in over 75 countries.
CAE has signed a Long Term Service Agreement (LTSA) with JetBlue Airways to cover major upgrades and spares services on all its A320 and E190 full-flight simulators (FFSs) and flight training devices (FTDs). Under the five-year service agreement, CAE will perform major upgrades on all JetBlue training devices to align the training equipment with the airline's latest aircraft fleet. In addition, CAE will upgrade all FFS visual systems to CAE's latest visual system. For close to a decade, CAE has been performing Simulator Engineering and Maintenance Services at JetBlue University in Orlando, USA.
CAE has signed a new four-year training services agreement with Ryanair extending a training relationship that has been in place since 2001. The agreement includes the recruitment, selection, and type-rating training of an expected 1,000 new pilot cadets for the B737NG aircraft. Training will be conducted at CAE's training centre in Amsterdam and at Ryanair's training centre at East Midlands airport in the UK.
Date: Mar 12, 2013