Home' Asian Aviation : AAV May 2010 Contents AsianAviation | MAY 2010 39
Training & Simulation
market setbacks, newly revised forecasts from major
aircra OEMs [Original Equipment Manufacturers]
still point to an approximate doubling of the global
aircra eet over the next two decades."
e Canadian company's SP/C business was hit
by a slowdown in new simulator orders because
airlines tightened their purse strings as the global
crisis took hold.
"As well, we are experiencing an additional degree
of pricing pressure in the current down-cycle for the
sale of simulation products as a result of CAE and our
competitors pursuing fewer market opportunities,"
e company predicted that it would win orders
for about 20 new simulators this year. "We believe
that in the medium-to-long term, the aerospace
business, and more speci cally the training products
and ser vices segments, will continue to experience
growth," the company said.
CAE backs up its optimism about the future
by pointing out that manufacturers still have
strong order backlogs, even though new orders
slowed because of the recession and a number of
carriers deferred delivery schedules. "Boeing and
Airbus continue to work through lower but still
record backlog levels and this may help generate
opportunities for our full portfolio of training
products and ser vices," CAE said.
In 2009, Boeing reported 142 net orders, while
Airbus received 271. Deliveries stood at 481 for
Boeing and 498 for Airbus.
Another positive sign for the simulator industry is
the arrival in the market of numerous new aircra
types, such as the Boeing 747-8 and 787, Airbus
A350XWB, Embraer 190, Embraer Phenom 100 and
300, Dassault Falcon 7X, Mitsubishi Regional Jet and
the Bombardier CSeries. All of these newcomers will
"drive worldwide demand for simulators and training
ser vices", CAE predicted.
"One of our strategic priorities is to partner
with manufacturers to strengthen relationships
and position ourselves for future opportunities,"
the company said. "During scal 2010, we signed
contracts with Bombardier to use our modelling
and simulation expertise to support the design,
development and validation of the new CSeries
aircra , and we will also develop the CSeries FFS."
CAE also has a joint venture with Embraer that
is starting to provide training for the Phenom 100
Very-Light Jet (VLJ) and its larger stablemate, the
Emerging markets such as South-East Asia, India
and the Middle East are a further source of optimism
for CAE. ese are expected to grow faster in the
coming years than the world's mature markets, while
simultaneously liberalising their aviation policies to
stimulate the industry.
"We expect these markets to drive the long-term
demand for FFSs and training centres," CAE said.
Among CAE's recent successes in Asian markets
has been a February contract with Malaysia's AirAsia
to provide multi-crew pilot licence (MPL) training
for the carrier's student cadets in a 56-week beta
programme designed to International Civil Aviation
Organisation (ICAO) standards. Successful
candidates will then progress to AirAsia's initial
operating experience (IOE) programme for the
Airbus A320 single-aisle jetliner.
HATSOFF for India
e Canadian company is also on track to open
India's rst Level D helicopter simulator training
facility in a joint venture with Hindustan Aeronautics
(HAL), called the Helicopter Academy to Train by
Simulation of Flying (HATSOFF). e CAE-built
simulator for the venture was shipped to India in
" e rst cockpit for the simulator represents the
Bell 412 helicopter, and is scheduled to be ready for
training this summer," CAE said.
Also in February, CAE announced a contract with
Japan's Skymark Airlines to supply the carrier with a
CAE 7000 series full- ight simulator for the Boeing
737-800 jetliner. e carrier already had one CAE
737-800 simulator, which was delivered in 2009. e
latest order brought the Canadian company's total for
the current scal year to 16.
Earlier this year, in January, CAE had announced
the sale of two CAE 7000 series FFSs to China's
Shanghai Eastern Flight Training (SEFTC), the
training subsidiary of China Eastern Airlines. e
contract was valued at about C$30 million at list
prices, with one of the simulators representing an
A320 and the other a widebody A330.
At the same time, however, CAE announced the
cancellation of one simulator order that was sold in a
previous scal year.
e new simulators are to be delivered to SEFTC in
2011, adding to the company's existing six CAE-built
FFSs at its facilities in Shanghai Pudong Waigaoqiao
Free Trade Zone. ese include four A320 simulators,
one A330/340 device and a Boeing 737.
e Canadian company said there is more comfort
to be found for simulator manufacturers in long-
term growth forecasts for air travel demand and the
resultant demand for trained crew members.
"Over the past 20 years, air travel grew at an average
4.8 percent [per annum] and we expect that over the
next 20 years both passenger and cargo travel will
meet or slightly exceed this growth," the company
said. However, it cautioned: "Possible impediments
to the steady growth progression in air travel include
major disruptions like regional political instability,
acts of terrorism, pandemics, a sharp and sustained
increase in fuel costs, major prolonged economic
recessions or other major world events."
All of these things, the events of the past decade
have proved, can and most likely will happen at some
point. ough next time the industry will almost
certainly be better prepared, having learned from
bitter experience. ●
CAE has had recent successes in Asia, including follow on orders for one
A320 and one A330 simulator from Shanghai Eastern Flight Training.
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