CAE Inc.

CAE Inc.

February 07, 2008 06:15 ET

CAE signs contracts with the government of India to provide pilot training in two national flight academies

NEW DELHI, India, Feb. 7 - (NYSE: CGT; TSX: CAE) - CAE has
signed a contract to become the managing partner of the Indian government's
flight training academy: Indira Gandhi Rashtriya Uran Akademi (IGRUA). CAE has
also formalized and signed a joint venture agreement with the Airport
Authority of India (AAI) to develop the Rajiv Gandhi National Flying Training
Institute (RGNFTI). Memorandums of understanding for these contracts were
announced during the Paris Air Show in June 2007.

The signings were attended by Mr. Ashok Chawla, Secretary, Ministry of
Civil Aviation; Mr. R. K. Singh, Joint Secretary for the Ministry of Civil
Aviation of the Government of India; Dr. K. Ramalingam, Chairman of the
Airports Authority of India (AAI); and Mr. Jeff Roberts, Group President,
Innovation and Civil Training & Services, CAE.

"We are pleased that the government of India has recognized CAE's
expertise in creating and managing world-class flight-training organizations,"
said Mr. Jeff Roberts. "With our long history of serving the Indian market, we
understand that India needs to develop a solid infrastructure and implement
state-of-the-art standards in flight training. These two academies, together
with our upcoming training centre in Bangalore, will help us address the
urgent need for pilots throughout the region."

Mr. Ashok Chawla explained that the government of India and CAE are
working together to create world-class institutions that both enhance the
quality of cadets within India and address the growing shortage of Indian
pilots. There is a requirement of up to 1,000 pilots per year in India over
the next five years to meet the growing needs of the industry. He added that
with these new schools, significant steps were taken towards resolving the
pilot shortage in India.

Over the next ten years, constant growth in air travel is expected to
produce an enormous demand for pilots, cabin crew, maintenance staff and
infrastructure. The Air Passengers Association of India estimates that the
annual air traffic growth rate in the country has been around 26 percent over
the past two years, causing the Indian airline industry to order approximately
400 new aircraft to be delivered by 2010.

Both IGRUA and RGNFTI will become members of the CAE Global Academy,
subject to agreement on the terms and conditions of membership. The CAE Global
Academy is a worldwide network of flight training organizations that offers
pilot candidates an optimized program with standard operating procedures. Once
students have graduated from the Academy, the new first officers may pursue
type-rating in one of CAE's training centres, including CAE's upcoming
training centre in Bangalore. CAE is under contract to recruit, train and
supply more than 800 pilots for commercial airlines.

CAE will transform both schools into centres of excellence for India,
leading the Indian market in the delivery of a complete range of high-quality
aviation training programs.

Managing partner of IGRUA

IGRUA will use CAE's training curriculum, courseware and innovative
training methodologies. Under the terms of the contract, CAE will manage
IGRUA's existing flight school activities, including maintenance of aircraft,
flying operations, air traffic control, runway maintenance, NAV aids, fire
fighting facilities, medical facilities, security, staff and student
facilities, as well as transportation. Indira Gandhi Rashtriya Uran Akademi
(IGRUA) opened in 1986 and is the Indian government's national flying school
located at the Fursatganj Airport in Rae Bareli.

Joint venture with AAI

Under the terms of the contract, the Rajiv Gandhi National Flying
Training Institute will be jointly owned by CAE and the AAI. Located at Gondia
in the State of Maharashtra, the school will operate new aircraft, and will
use CAE's training curriculum, courseware and innovative training
methodologies. The state-of-the-art facility will include a hostel, a library,
a workshop, dining facilities and a sports centre. The joint venture will
manage flying operations, the maintenance of aircraft as well as staff and
student facilities. The total investment for RGNFTI from CAE and AAI is
approximately US$25 million.

About CAE

CAE has been supplying the Indian market with training solutions for the
past 35 years. Over the past year, CAE has undertaken a series of initiatives
to expand its footprint within India's growing aviation market. In February
2007, CAE announced it would establish its first Indian aviation training
centre in Bangalore, India. In July 2007, CAE acquired Macmet Technologies
Ltd., the leading simulation company in India.

CAE is a world leader in providing simulation and modelling technologies
and integrated training solutions for the civil aviation industry and defence
forces around the globe. With annual revenues exceeding C$1 billion, CAE
employs more than 6,000 people at more than 75 sites and training locations in
20 countries. We have the largest installed base of civil and military
full-flight simulators and training devices. Through our global network of
27 civil aviation and military training centres, we train more than
75,000 crewmembers yearly. We also offer modelling and simulation software to
various market segments and through CAE's professional services division, we
assist customers with a wide range of simulation-based needs.

High-resolution downloadable photos of the event will be available on

Contact Information

  • CAE contacts:
    Nathalie Bourque,
    Vice President, Public Affairs
    and Global Communications,


    Pascale Alpha,
    Director, Global Communications,
    mobile +1-514-833-3477,


    Investor relations:
    Andrew Arnovitz,
    Vice President, Investor Relations and Strategy,