Montreal's CAE sells six flight simulators worth $90M
Indonesia's Lion Air Group bought four units from world's flight simulator leader
MONTREAL—Flight training and simulator company CAE Inc. has sold six full-flight simulators valued at more than $90-million to Indonesia’s Lion Air Group and other unnamed customers.
The Asian carrier ordered four simulators.
The contracts bring total simulator sales this fiscal year to 33.
The Montreal-based company expects to sell a record 40 units this year, up from 35 a year ago.
Industry analysts say CAE is well-positioned to maintain its global leadership despite intensifying competition that is cutting prices and hurting margins.
The company has a large installed base of simulators, a low cost base and an unparalleled ability to also offer pilot training services, according to Cameron Doerksen of National Bank Financial.
CAE Inc. has produced nearly half of all civil aircraft simulators operating around the world.
Excluding business jets and helicopter simulators, it dominates with a 56 per cent share of the market.
Its next closest rival, L-3 Link, has a 26 per cent share, followed by Flight Safety International, which doesn’t focus on commercial planes, at 10 per cent.
CAE employs about 8,000 people at more than 100 sites and training locations in approximately 30 countries.