Home' Asian Aviation : AAV October 2011 Contents 32 AsianAviation | OCTOBER 2011
n Aug ust, Canadian flight-simulator
manufacturer CAE announced an increase
in its profit for the first quarter of the
current fiscal year – the three-month period
ended 30 June – led, the company said, by
increased demand from the civil sector.
The rebound in travel demand that had followed
the slump of 2008-2009 was having a beneficial effect
on the training and simulation sector.
“ We had good performance this quarter, led by our
civil business, which continues to benefit from the
commercial aerospace up -c ycle and our leadership
positions in emerging markets,” said Marc Parent,
CAE’s president and chief executive officer. “Full-
flight simulator sales are off to a strong start and
we signed three pivotal joint-venture agreements,
including the total outsourcing of training by AirAsia,
one of the world’s fastest growing airlines.”
The company said net income in the period rose
to C$43.1 million (US$41.5 million), from C$37.2
million in the same period a year earlier. CAE’s
revenue for the quarter was C$427.9 million, 17
percent higher than C$366.4 million reported in the
first quarter last year.
Revenue for the company’s combined civil segments
increased 19 percent in the first quarter to C$210.1
million, compared with C$176.9 million a year earlier.
Operating profit totalled C$45.2 million, or 21.5
percent of revenue, compared with C$36.4 million,
or 20.6 percent of revenue, in the year-earlier period.
“Civil market activity strengthened for CAE during
the first quarter with 11 full-flight simulator orders
for customers in Asia , Europe, and the Americas,” the
company said. “ We also renewed and added a range
of training contracts expected to generate C$104.9
million in future revenue.”
The company announced in the period that it
would double to eight the number of locations in its
global network offering business-aviation training ,
including the addition of centres in Asia and South
America. In the commercial aviation sector, the
company had announced three major joint-ventures
during this year’s Paris Air Show in late June.
First, was a joint venture with Malaysia’s AirAsia
to provide the Kuala Lumpur-based low-cost carrier
and other third-party customers with training for
pilots, cabin crews, maintenance personnel and
ground ser vices staff. In addition, the company
launched a new joint-venture training centre in
Delhi, India, with Interglobe, parent company of
IndiGo Airlines. It also announced a third joint
venture with Mitsui to establish and operate a
training centre in Japan in supp ort of the upcoming
Mitsubishi Regional Jet (MRJ).
CAE received C$229.8 million in combined civil-
segment orders in the first quarter.
Montreal-based CAE, founded in 1947, is a
world-leading provider of simulation and modelling
technologies and integrated training ser vices –
primarily to the civil aviation industr y, but also
to defence forces around the globe. The company
employs more than 7,500 people at more than 100
sites and training locations in over 20 countries.
Nearly 90 percent of its annual revenue comes from
worldwide exports and international activities.
CAE has the world’s largest installed ba se of civil
and militar y flight simulators and a broad global
aviation training network of 32 civil aviation,
military and helicopter training centres, where the
company trains more than 80,000 civil and military
cre wmembers annually. Approximately half of the
company’s revenue comes from simulation products,
software and simulator updates, and the balance from
ser vices including training , maintenance, aviation
ser vices and professional ser vices.
The company is the largest provider of commercial
and helicopter aviation training ser vices in the world
and the second-largest provider of business aviation
training ser vices.
“ We lead the market in the high-growth emerging
regions of Latin America, China, Southeast Asia,
India and the Middle East,” CAE says. “ Through our
broad global network of training centres we ser ve all
se ctors of civil aviation including general aviation,
major and regional airlines, helicopter operators and
CAE now operates 160 full-flight simulators
(FFSs) and provides aviation training and ser vices
in approximately 20 countries around the world, at
aviation-training centres, flight-training organizations
(FTO) and third-party locations. The company has
CAE sees rising
Emerging markets such as China, India and South-East Asia will
be key drivers in future demand for flight simulators, according to
manufacturer CAE, writes Andrzej Jeziorski.
Simulator maker CAE has benefited from last year ’s rebound in air travel demand.
“We had good performance this quarter, led by our civil
business, which continues to benefit from the commercial
aerospace up-cycle and our leadership positions in emerging
markets.” – Marc Parent, CAE president & CEO
30/09/11 9:33 PM
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