DTN News: Montreal Firm Gets $250 Million Contract To Provide Training For Chinooks
Source: DTN News / The Canadian Press
(NSI News Source Info) MONTREAL, Canada - March 23, 2010: M
ontreal's CAE Inc. has been awarded a $250-million federal contract to provide training services for new helicopters.
Public Works Minister Rona Ambrose made the announcement in Montreal today. The flight-simulation company will provide training for 15 new military helicopters, Chinook CH147Fs, ordered by Ottawa last year.
CAE (TSX:
CAE.TO) will help with weapons-system training, tactical flight training, gunnery training, and a virtual simulator.
The federal government ordered $1.5-billion worth of Chinooks from the Boeing Co. last year.
The announcement had already been the subject of rumours, and CAE shares enjoyed only a minor uptick in early trading today.
The military contract is a major boost to Montreal-based CAE, a global leader in aircraft simulator technology and services, which has felt the negative impact of the recession on its civil aviation business.
The Chinook contract, as well as a similarly large contract announced last year for the new Hercules C-130J transport aircraft, help offset the slump in civil aviation, CAE president and chief executive officer Marc Parent said Tuesday at a ceremony in a hangar at the company's facility in a suburb of Montreal.
Federal Public Works Minister Rona Ambrose said the government is committed to maintaining and creating jobs in the domestic aerospace defence industry.
“This government has a military procurement policy that is very robust,” she said at the event.
The Chinook contract to CAE was widely expected, but UBS analyst Tasneem Azim said in a note Tuesday that it “will be well received by investors as it reinforces CAE's market leadership in the military segment. CAE's strength in the military (typically defensive in nature) has partially offset weakness in the civil segment, and has contributed to CAE's earnings resilience through the downturn.”
The contract announced Tuesday is for 15 Chinook helicopters that were purchased from Boeing Co. of Chicago in a transaction valued at $1.5-billion.
The CAE contract falls under the federal program known as Operational Training Systems Provider (OTSP).
The first phase is for the design and development of a Chinook training suite, including a weapons systems trainer, a tactical flight training device and other simulation systems.
In 2014, the second phase kicks in with a 20-year in-service support program for the aircrew training program.
About 240 jobs are expected to be created as a result of the Chinook project, with companies besides CAE – in Ontario, Quebec and Atlantic Canada – getting sub-contracts.
CAE's annual revenue tops $1.6-billion and it employs about 6,500 people.
Related CAE News:
CAE wins Indonesian order
CAE wins deal with China Eastern
CAE buys two Montreal-based firms
Source: DTN News / The Canadian Press
(NSI News Source Info) MONTREAL, Canada - March 23, 2010: M
ontreal's CAE Inc. has been awarded a $250-million federal contract to provide training services for new helicopters.
Public Works Minister Rona Ambrose made the announcement in Montreal today. The flight-simulation company will provide training for 15 new military helicopters, Chinook CH147Fs, ordered by Ottawa last year.
CAE (TSX: CAE.TO) will help with weapons-system training, tactical flight training, gunnery training, and a virtual simulator.
The federal government ordered $1.5-billion worth of Chinooks from the Boeing Co. last year.
The announcement had already been the subject of rumours, and CAE shares enjoyed only a minor uptick in early trading today.
The military contract is a major boost to Montreal-based CAE, a global leader in aircraft simulator technology and services, which has felt the negative impact of the recession on its civil aviation business.
The Chinook contract, as well as a similarly large contract announced last year for the new Hercules C-130J transport aircraft, help offset the slump in civil aviation, CAE president and chief executive officer Marc Parent said Tuesday at a ceremony in a hangar at the company's facility in a suburb of Montreal.
Federal Public Works Minister Rona Ambrose said the government is committed to maintaining and creating jobs in the domestic aerospace defence industry.
“This government has a military procurement policy that is very robust,” she said at the event.
The Chinook contract to CAE was widely expected, but UBS analyst Tasneem Azim said in a note Tuesday that it “will be well received by investors as it reinforces CAE's market leadership in the military segment. CAE's strength in the military (typically defensive in nature) has partially offset weakness in the civil segment, and has contributed to CAE's earnings resilience through the downturn.”
The contract announced Tuesday is for 15 Chinook helicopters that were purchased from Boeing Co. of Chicago in a transaction valued at $1.5-billion.
The CAE contract falls under the federal program known as Operational Training Systems Provider (OTSP).
The first phase is for the design and development of a Chinook training suite, including a weapons systems trainer, a tactical flight training device and other simulation systems.
In 2014, the second phase kicks in with a 20-year in-service support program for the aircrew training program.
About 240 jobs are expected to be created as a result of the Chinook project, with companies besides CAE – in Ontario, Quebec and Atlantic Canada – getting sub-contracts.
CAE's annual revenue tops $1.6-billion and it employs about 6,500 people.
Related CAE News:
CAE wins Indonesian order
CAE wins deal with China Eastern
CAE buys two Montreal-based firms
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