Cae Inc (TSE:CAE) balance sheet is to receive a boost of $100 million the company having received a series of defense contracts. In addition, the company is also to carry out a number of training programs having signed deals with a number of airlines both in North America and in Asia. Training programs are expected to inject an additional $300 million.

Defense Contracts

The training and simulator company is to provide KC-135 tanker aircrew training services to the United States Air Force. CAE is to work closely with USAF personnel to provide classroom and live flying instructions. The deal also involves providing training services to T-44C aircrew members of the United States Navy.

The agreement will also allow CAE to carry out long-term maintenance and provide support services to a number of helicopter simulators. Buoyed by the agreements, head of Defense and security, Gene Cola expects the contracts to act as a long-term recurring revenue source. The contracts should also help highlight the credibility of the company’s training programs.

“Our large installed base of existing training devices and simulation systems provide ongoing upgrade and update opportunities along with long-term service and support business. We are pleased to continue our support of the United States Air Force as their training partner on the MQ-1 Predator/MQ-9 Reaper remotely piloted aircraft, which is the world’s largest RPA training program,” said Mr. Colabatistto.

The company has also inked a deal with the Australian Armed Forces whereby it will furnish the force with the latest generation CAE GESI command and staff training system.

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UAE Contract

In June Cae Inc (TSE:CAE) successfully won a contract to furnish the UAE Joint Aviation Command with a suite of helicopter Simulators and training devices. For the Northstar Aviation 407MRH helicopter, the company is to design and manufacture a fixed based Level 7 equivalent flight training device. The company is also required to provide a suit of debriefing systems as part of the deal. The contract is valued at about $145 million.