Manufacturer and pilot training company CAE Inc. has achieved its full-year target by selling four full-flight simulators and four trainers worth a combined $50-million to airlines in Asia and Europe.
The Montreal-based company said the orders bring total sales for the fiscal year ending March 31 to 27 units, easily in line with its target for sales in the "mid-twenties."
The flight training subsidiary of German airlines Deutsche Lufthansa AG ordered a CAE 5000 Airbus A320 simulator and three procedures trainers for delivery by the end of 2011.
China's Xiamen Airlines ordered two CAE 7000 Boeing 737NG simulators and a maintenance trainer. One simulator will be delivered in 2011. Delivery of the second will be determined in the future.
An Airbus A320 simulator was also sold to an undisclosed airline in Asia, for delivery in the second half of 2011.
Jeff Roberts, CAE president of civil simulation products, training and services, said the orders reinforced Lufthansa and Xiamen's trust in CAE.
"As global airlines add new aircraft and routes to meet growing demand for air travel, particularly in the emerging regions, they look to advanced simulation-based training to meet regulatory requirements and enhance safety and efficiency," he stated.
Lufthansa has purchased more than 30 CAE Level D simulators since 1980, including four CAE 5000 Series units, for its A320 and Bombardier Dash 8-Q400s.
Two CAE-built B737 simulators were delivered to Xiamen Airlines in 2008, along with a virtual maintenance trainer for the Boeing 757.
Benoit Poirier of Desjardins Securities said the latest contracts means the number of simulators ordered exceeds his own expectations of 23.
While CAE hasn't yet disclosed its order guidance for fiscal 2012, Mr. Poirier is forecasting 27 orders. A total of 31 orders per year should be sustainable in the coming years based on Airbus and Boeing 20-year delivery outlooks and CAE's 73-per-cent market share, he wrote in a report.
Although the U.S. government faces pressure to reduce spending and Congress has yet to approve the fiscal 2011 budget, Mr. Poirier said he expects military revenues will grow by 9 per cent next year.
"(This) would be a robust achievement in light of uncertainties surrounding defence budget cuts."
CAE is the world's largest flight simulator company with $1.5-billion of annual revenue from simulator sales and training for civil and military aviation organizations around the world.
It employs more than 7,500 people at more than 100 sites and has training locations in more than 20 countries.