January 12, 2011
by CANADIAN PRESS
MONTREAL: CAE’s sales of aircraft simulators are expected to take off in the coming year or so after the leading global manufacturer sold another five devices to various airlines for $65 million.
The Montreal-based aerospace simulator and training firm said the five CAE 7000 Series Level D full-flight simulators were sold to Qantas Airways, to the Shanghai Eastern Flight Training Centre, which is a division of China Eastern Airlines, and to an unnamed customer in India.
The latest round of sales lifts the company’s overall full-flight simulator sales to 22 for the fiscal year that ends March 31, it said.
“These agreements reflect the continued air traffic growth in Australia, China and India,” said CAE Group president of civil simulation products Jeff Roberts.
The Quantas Airways order is scheduled for delivery in 2012 while the Shanghai Eastern Flight Training Centre will start receiving its order this year with completion targeted for next year.
The Indian customer will get its equipment later this year.
With a couple of months remaining in its fiscal year, industry analysts believe CAE is on track to beat its forecast for the sale of about 25 simulators this year.
A rebound in orders for Boeing and Airbus planes should translate into strong CAE simulator sales, said Cameron Doerksen of National Bank Financial.
“We believe that in the next cycle peak CAE can exceed its last full flight simulator order peak of 37 (in fiscal 2008),” he wrote in a report.
Boeing’s new aircraft orders were up 138% in 2010 and Airbus will likely report much higher orders. Airbus also won a 180-plane order from India’s Indigo Airlines for its new A320 re-engined plane.
Simulator sales typically flow out of aircraft sales with one simulator sold for each 30 aircraft.
© The Canadian Press