CAE signs military contracts worth $200-million

Flight simulator and training company CAE Inc. has won a number of military contracts valued at about $200-million, including two awarded by the United States.

The Montreal-based company will develop a full-mission KC-130J simulator for the Kuwaiti air force under a contract awarded by the U.S. Navy's foreign military sale program. The simulator will be delivered in 2015 to Al Mubarak Air Base near Kuwait International Airport.

The U.S. Air Force has also exercised its option for a third year of KC-135 tanker aircrew training services. CAE will perform a range of simulator upgrades for the U.S. Air Force under that contract.

Gene Colabatistto, head of CAE's military products and services group, said Kuwait joins a long list of customers who have selected CAE for C-130 training systems and services.

"The Middle East and Asia are markets that are increasingly offering a solid pipeline of opportunities and we are seeing some good potential for upgrade business as defence forces look to leverage simulation-based training for more of their training requirements," Mr. Colabatistto said.

CAE said Monday that it has also signed long-term training service contracts with an Asian military customer, which wasn't identified in the company's announcement.

Under the Asian contract, CAE will provide training on helicopter and fixed-wing aircraft over the next 25 years.

CAE is a global leader in modelling, simulation and training for civil aviation and defence. It employs nearly 8,000 people at more than 100 sites and training locations in some 30 countries.