CAE lands sim contract

 - March 26, 2008, 11:27 AM

Simulator maker CAE last month announced that Bombardier has awarded the company the simulation development contract for the CRJ900 regional jet and upgrades to four CRJ700 simulators. In addition, Calgary-based airline WestJet has agreed to purchase a Boeing 737-700 flight simulator for installation at the airline’s training facility.

The announcement came on the heels of the release of CAE third-quarter earnings statement, which showed the company posted a 45-percent increase in earnings for the quarter. The Canadian company attributed the gain to higher operating margins and cost reductions within its civil and military simulation units.

CAE’s recent success was highlighted in late December when it announced its decision to acquire Dallas-based SimuFlite from GE Capital. Under terms of the $247 million purchase agreement, GE Capital will provide $60 million in financing. The acquisition of SimuFlite makes CAE the world’s second-largest provider of flight-training services to third parties. FlightSafety International remains the largest.