CAE (NYSE:CAE)(TSX:CAE) announced today a series of training solution contracts with airlines and aircraft manufacturers valued at more than C$130 million. The diversity of these agreements highlights the span of CAE's full range of training equipment and programs that cover the entire career life cycle of professional pilots, from cadet to captain and crew sourcing. They include:
"We are thrilled to support the fleet growth of our long-standing airline customers by offering the most flexible array of training equipment and cadet-to-captain training solutions to the market," said Nick Leontidis, CAE's Group President, Civil Aviation Training Solutions.
The six full-flight simulators (FFSs) sales bring the total number of FFS sales announced to date in fiscal 2016 to 15. The FFSs are at list prices, which 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 these contracts, some customers are providing part of the OEM content.
Shanghai Eastern Flight Training Center: four full-flight simulators
Shanghai Eastern Flight Training Center (SEFTC), the training centre subsidiary of China Eastern Airlines, has ordered four CAE 7000XR Series FFSs equipped with CAE Tropos-6000XR innovative visual systems, as well as two CAE Simfinity 400XR Integrated Procedures Trainers (IPTs).
Three of the four devices are for the new Boeing 737 MAX aircraft, and this order represents the first MAX operator to order its own training equipment. The fourth device is a Boeing 777 FFS. The complete suite of training equipment will be delivered to SEFTC's facilities in Shanghai. SEFTC has purchased 27 full-flight simulators from CAE.
Airbus: A320 full-flight simulator sale
CAE has signed a training equipment agreement with Airbus Asia Training Centre (AATC) in Singapore for an A320 CAE 7000XR full-flight simulator (FFS) and an A320 Airbus Pilot Transition (APT) Trainer. The A320 CAE 7000XR FFS will be equipped with the latest CAE Tropos 6000XR visual system which offers unprecedented realism. The CAE 7000XR FFS will be ready for training at the end of March 2016.
"We are looking forward to the opening of our new training centre in Singapore and are delighted to offer state-of-the-art technology to our customers," said Captain Yann Lardet, General Manager at Airbus Asia Training Centre. "The inauguration of the A320 FFS supports the industry's training requirements and demand for excellence."
CAE and Airbus have also signed a frame contract at the Paris Airshow in June, which enables Airbus to expedite procurement of flight simulation devices for their customers, Airbus training centres and their affiliates worldwide.
NITA: B737NG full-flight simulator sale
NITA has ordered one Boeing 737NG full-flight simulator (FFS) which will be installed at the Ulyanovsk Higher Civil Aviation School in Ulyanovsk, Russia. The FFS will be ready-for-training in April 2016. NITA has been a customer of CAE since 2011.
Eastern Air Lines Group: B737NG Pilot Training
Eastern Air Lines Group announced today that it has selected CAE for the provision of Boeing 737NG training services under an exclusive five-year agreement.
"We are honored that Eastern has selected CAE as its training partner of choice and we are proud to take part in the new takeoff of Eastern Air Lines," said Nick Leontidis, CAE's Group President, Civil Aviation Training Solutions. "We are proud that Eastern crew will receive world-class training as part of their new beginning. To that end, we wish our partners at Eastern a lot of success".
"We are pleased to team with CAE, the world's leading training provider, for our training needs," said Ed Wegel, Eastern's President and CEO. "CAE enables us to more efficiently plan and schedule our training as well as contain training costs as we seek to grow the airline. We will be acquiring up to 20 737-800s, both Next Gen and MAX aircraft, in our next growth phase, and as our flight training requirements increase, we expect to grow this partnership with CAE".
Eastar Jet: B737NG Pilot Training
Eastar Jet has selected CAE for the provision of Boeing 737NG training services under an exclusive five-year agreement. Pilots began their first training at the CAE Seoul training center, Korea in 2013. Under this contract renewal, a total of 1,400 training hours are expected to be completed in the first year.
"We are pleased to expand our partnership with CAE and to continue offering excellent quality training to our pilots," said Kim Min Sik, Vice president of Eastar Jet. "CAE has been Eastar Jet's partner of choice for training solutions since 2013 and we are looking forward to the next five years together."
A320 crew provision
CAE Parc Aviation has been selected to provide A320 crews in support of ongoing fleet expansion at an undisclosed airline in Asia. As part of the agreement, a minimum of 30 new pilots will be recruited over the next 6 months. The A320 is one of the most common short haul aircraft in the region leading to high demand for suitably qualified pilots on type. CAE Parc Aviation has been selected by the airline as it has the resources and global footprint to ensure that the airline has sufficient crews to meet its aircraft delivery schedule.
Date: Sep 8, 2015