MONTREAL - Canada's Department of National Defence has named flight simulator specialist CAE Inc. (TSX:CAE) as prime contractor for a program called the Air Force Integrated Information and Learning Environment (AFIILE).
The win was among a series of military contracts, with total value of $106 million, announced Wednesday by the Montreal-based training and simulator company, including $71 million in firm orders with an additional $35 million in contract options.
"We continue to see strong opportunities in the global military market for our portfolio of products and services, as evidenced by these contracts...," Marc Parent, president of CAE's simulation products and military training and services division.
"It is encouraging to see defence forces looking more and more to modelling, simulation and support services to address challenges such as maintaining readiness, high operational demand on aircraft and increasing fuel costs."
In addition to acting as lead on AFIILE, CAE also won a one-year contract from U.S. defence contractor L-3 Communications (NYSE:LLL) to continue providing avionics software upgrades, integrated logistics support and data management services for the Canadian Forces CF-18 aircraft.
CAE said the U.S. Navy exercised a contract option for the manufacture of another MH-60R tactical operational flight trainer and has also granted it a new five-year contract to provide services for a range of U.S. Navy and U.S. Marine Corps training devices.
CAE will also provide updated software for Eurofighter Simulation Systems and C2 Technologies has subcontracted the company's U.S. division to provide contract aircrew training and courseware development services for the United States Air Force's A-10 and EC-130 training program.
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