Indonesia's Lion Group Signs Contract Valued at C$47 M With CAE

CAE (NYSE:CAE)(TSX:CAE) today announced that it has sold four full-flight simulators and four training devices to Lion Group, a Pan-Asian airline group that includes Indonesia's largest airline Lion Air. The contract is for four full-flight simulators (FFSs) for the Airbus A320 aircraft with options for another four. The four flight training devices are CAE Simfinity™ Airbus Pilot Transition trainers. The contract is valued at C$47 million at list prices. List prices include the value of OEM aircraft-specific data, parts and equipment (DP&E), normally procured by CAE in the manufacture of its simulators. In the case of this contract, Lion Group is providing part of the OEM content.

"Lion Group invests heavily in pilot training and this latest contract with CAE is testimony to that," said Lion Group president director Rusdi Kirana. "Our pilots are trained to the highest international standards."

CAE not only provides training equipment to Lion Group, but highly skilled and experienced training personnel and support staff from CAE are also stationed at Lion Group's simulator training centre in Jakarta.

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Lion Group is an important customer for CAE in Asia. The largest airline in the group, Lion Air, today operates 67 Boeing 737-900ERs, 19 Boeing 737-800s, 10 Boeing 737-300/400s and two Boeing 747-400s. Meanwhile, the group's feeder airline, Wings Air, operates 20 ATR 72-500s and four ATR 72-600s. Its full-service carrier Batik Air, operates four 737-900ERs. The group also has affiliates overseas: Malaysia's Malindo Air, which has six 737-900ERs and three ATR 72-600s; and Thai Lion Air, which has two 737-900ERs.

Lion Group placed an order in March for 234 Airbus narrow-bodies. The group's first A320s are to be delivered in the second half of 2014 and will be assigned to Batik Air.

CAE will be delivering the first A320 FFS to Lion Group in February 2014. It will be installed at Lion Group's simulator centre, in Bandara Mas in Jakarta, which currently has three CAE-built 737NG FFSs and one ATR 72-500 FFS.

"Lion Air has been a long-standing partner with CAE so we are very proud to be a part of their ongoing success," said Nick Leontidis, CAE's Group President, Civil Simulation Products, Training and Services. "By leveraging our broad portfolio of products and services, we continue to provide the highest quality, most reliable training solutions that are tailored to customers' specific needs and support their growth."

Source: CAE Inc.
Date: Nov 8, 2013