CAE nabs 20-year deal to make Canadian military flight simulators

CAE president and CEO Robert Brown, left, and Prime Minister Stephen Harper pose with a miniature version of the company's flight simulator on Friday in Montreal.(CBC) Montreal-based CAE will build state-of-the-art flight simulators for the Canadian Forces as part of a 20-year deal worth nearly $330 million, the federal government announced Friday.

Prime Minister Stephen Harper made the announcement at the company's headquarters in the Montreal borough of Ville St-Laurent.

Harper said the project is part of his government's plan to stimulate the Canadian economy and protect jobs across the country.

"Not only does today's announcement ensure that the men and women of the Canadian Forces get the best flight training, it will also create well-playing jobs now and for the 20-year length of the contract," said Harper.

CAE leads a pan-Canadian team that will build simulators for the Hercules C-130 aircrew.

The team includes:

Xwave of St. John's, N.L.Montreal-based Bombardier.Atlantis Systems International of Brampton, Ont.Cascade Aerospace of Abbotsford, B.C.

CAE says the contract will create and sustain 330 jobs for the first three years and 50 jobs for the next 20 years in various Canadian locations.

The 50 long-term jobs will be located at a soon-to-be-built training facility at CFB Trenton. The facility is expected to be ready in 2012.

Contract includes simulators, training systems

CAE will provide two full-mission simulators, one flight training device, three procedures trainers and one fuselage trainer.

Work will be subcontracted to the partner companies.

CAE chief executive Robert Brown said the 7,000-employee company is proud to help prepare the Canadian Forces for its missions abroad.

He said the company will also be able to "leverage the valuable experience of this program to contracts with other nations."

CAE shares, halted pending the announcement, gained 12 cents after the news to close at $7.57 on the Toronto Stock Exchange, with a 52-week range between $13.95 and $5.62.

With files from the Canadian Press