CAE announces raft of contracts worth C$175 million

Air July 31, 2017

CAE, the Canada-headquartered global leader in training for the civil aviation, defence and security markets has announced it has been awarded defence contracts on a range of platforms valued at more than C$175 million to provide simulation products, training services and in-service support for global military customers.

The contracts, awarded during CAE’s fiscal year 2018 Q1, involve a deal with Lockheed Martin to support the development of five C-130J fuselage trainers for the US Marine Corps (USMC) and US Air Force Special Operations Command; L-3 MAS to continue providing CF-18 in-service support services for the Royal Canadian Air Force’s CF-18 fleet; and Airbus Defence and Space to provide in-service support for the C295W Fixed-Wing Search and Rescue training programme for the Royal Canadian Air Force.

One of the most significant of the contracts with Lockheed Martin sees CAE USA supporting the development of four KC-130J fuselage trainers (FuT) for the Marines. CAE will leverage the design of the CC-130J FuT delivered to the Royal Canadian Air Force and provide a range of simulation systems for the USMC KC-130J FuTs, including instructor operator station (IOS), aircraft interface monitor, virtual cargo compartment and virtual simulator.

The KC-130J FuTs will be delivered to Marine Corps Air Stations in Cherry Point, Miramar and Iwakuni, Japan during 2020 and 2021, as well as to Naval Air Station Fort Worth, Texas in 2022.

“These orders augment the long-term, recurring revenue profile of our defence business,” said Gene Colabatistto, CAE’s Group President, Defence & Security. “Original Equipment Manufacturers and global militaries continue to recognise our training and simulation experience on enduring platforms, such as the C-130J, which combined with a positive defence environment, continues to provide us a healthy pipeline of opportunities around the world.”