CAE (NYSE: CAE; TSX: CAE) today announced that it has won defence contracts, included as part of its second quarter order intake, valued at more than C$100 million to provide training services and simulation products for global military customers.
Some of the key contracts include the United States Air Force exercising another option year for CAE USA to continue providing comprehensive training services as part of the KC-135 Aircrew Training System (ATS) program; the United States Navy exercising another option year for CAE USA to continue providing T-44C aircrew training services; and a five-year contract to provide maintenance and support services on the German Air Force's Eurofighter training devices.
"The delivery of training services such as classroom and simulator instruction as well as upgrades and maintenance support is an important part of our strategy to be a full-service training systems integrator," said Gene Colabatistto, CAE's Group President, Defence & Security. "We are continuing to pursue a range of long-term training services contracts and expect the delivery of services to make up a growing percentage of our business portfolio as defence forces look to leverage the support and expertise of industry."
U.S. Air Force KC-135
The U.S. Air Force has exercised the option for the sixth year of aircrew training services provided by CAE USA as the prime contractor on the KC-135 Aircrew Training System (ATS) program. CAE USA will continue to provide classroom and simulator instruction as well as upgrades, maintenance, and support of all KC-135 aircrew training devices. CAE USA provides KC-135 aircrew training services at Altus Air Force Base, Oklahoma; Fairchild Air Force Base, Washington; Grissom Air Reserve Base, Indiana; Hickam Air Force Base, Hawaii; Kadena Air Base, Japan; MacDill Air Force Base, Florida; March Air Force Base, California; McConnell Air Force Base, Kansas; Mildenhall Air Base, United Kingdom; Milwaukee Air National Guard Base, Wisconsin; Pease Air Force Base, New Hampshire; Pittsburgh Air National Guard Base, Pennsylvania; Scott Air Force Base, Illinois; and Seymour-Johnson Air Force Base, North Carolina.
U.S. Navy T-44C
The U.S. Navy has exercised the option for the second full-year of comprehensive T-44C aircrew training services provided at Naval Air Station (NAS) Corpus Christi in Texas. CAE USA provides T-44C aircrew training services under a contractor-owned, contractor-operated training program. CAE is providing classroom and simulator training for more than 500 students annually to support the Navy's T-44C aircraft, which is used for multi-engine intermediate and advanced flight training.
German Air Force Eurofighter
CAE will continue providing a range of maintenance and in-service support services for the German Air Force's Eurofighter training devices as part of an industry team in Germany. CAE will have specific responsibility for maintaining the Eurofighter visual systems, including CAE Medallion-6000 image generators as well as projector and display systems. The maintenance and in-service support services will be performed on-site at Laage, Neuburg, Noervenich and Wittmund, which are the four Eurofighter main operating bases in Germany.
Date: Oct 6, 2015