CAE wins $90M contract from Lockheed Martin
Simulators will help train Hercules maintenance crews
Montreal-based aircraft simulator company CAE said Monday that it has won a $90 million contract from Lockheed Martin.
The deal is for maintenance training for Canada's new fleet of 17 CC-130J Hercules transport aircraft.
It is CAE's second major CC-130J contract. Last year, the Canadian government awarded a direct aircrew training contract under a separate program.
The maintenance training system that CAE has developed saves costs by allowing technicians to be trained and certified without needing to access actual aircraft.
The contracts will give the company "a key role in helping prepare our Canadian Forces to fly, maintain and support Canada's new fleet of Super Hercules aircraft," said Martin Gagné, president of CAE's military products, training and services group.
The contract will have two phases. Over the next three years, CAE will design and manufacture a CC-130J maintenance training suite that includes two fuselage systems and one cockpit system.
After that's delivered in 2013, CAE will provide upgrades and maintenance of its training systems until mid-2016.
The contract will create about 70 jobs during the initial phase and 20 permanent jobs once maintenance training begins in Trenton, Ont.
CAE's shares closed up four cents at $9.60 Monday on the Toronto Stock Exchange.
With files from The Canadian Press