1. CAE secures $270M CAD contract with Australia's RAAF for F-AMTS. 2. The contract spans 10 years, enhancing air mission training capabilities. 3. Partnership includes key industry organizations, indicating collaborative innovation. 4. Over 40 skilled jobs will be created in Victoria, Australia. 5. First graduates expected from new training system in 2028.
FAQ
Why Very Bullish?
This significant contract positions CAE for strong revenue growth, similar to past successful contracts expanding their market presence.
How important is it?
This contract solidifies CAE's position in defense training, enhancing growth and stability prospects.
Why Long Term?
The contract's 10-year duration ensures sustained revenue and market influence well into the future.
CAE Secures Major Contract to Transform Air Mission Training for Australia
CAE Inc. (NYSE: CAE) (TSX: CAE) has officially announced a significant contract with the Commonwealth of Australia, granting it the responsibility to implement the Future Air Mission Training System (F-AMTS) under Project AIR5428 Phase 3 for the Royal Australian Air Force (RAAF). This contract, valued at over $270 million CAD, marks a pivotal advancement in next-generation air mission training capabilities for the Australian Defence Force.
Details of the Future Air Mission Training System
The F-AMTS signifies a significant evolution in training methodologies for the RAAF’s mission aircrew. CAE will collaborate with key industry partners, including Nova Systems, Adacel, DXC Technology, Milskil, MMCLD, Airflite, and Seeing Machines, to deliver a state-of-the-art, integrated training system. This modern system incorporates:
- Advanced learning environments
- Comprehensive courseware
- Synthetic ground and airborne training elements
This framework is designed to mimic operational complexities faced by aircrew in real-world scenarios, enhancing the training experience.
Strategic Benefits for the Australian Defence Force
The training system will be implemented at RAAF Base East Sale in Victoria, Australia, working alongside the Commonwealth of Australia. It aims to develop critical roles across various specialties such as:
- Airborne Electronics Analysts
- Operations Officers
- Air Mobility Officers
- Air Traffic Controllers
- Air Battle Managers
- Maritime Patrol and Response Officers
- Weapon Systems Officers
- Electronic Warfare Officers
The F-AMTS is designed to provide an engaging learning experience and also includes post-graduate instructor training, equipping educators with effective teaching tools.
Leadership Insights on the Contract
France Hébert, President of Defense & Security – Canada and International at CAE, emphasized the importance of understanding operational complexities: "Achieving mission readiness for today's rapidly evolving defence and security landscape requires a training partner who deeply understands the complexity and challenges faced in operations." He added, "CAE is proud to deliver a future-ready training system that combines innovation, technical advantage, and trusted partnerships to help the Australian Defence Force to raise, train, and sustain skilled personnel."
Longstanding Partnership and Future Growth
This latest contract further strengthens CAE's enduring relationship with the RAAF, which dates back to 1994, successfully training generations of Australian military aircrew. The implementation of the F-AMTS is expected to create over 40 new skilled jobs within CAE in Victoria, Australia, with the first group of students anticipated to graduate by 2028.
About CAE
CAE is dedicated to enhancing global safety through advanced training, simulation, and critical operations solutions. With a workforce of approximately 13,000 employees across 240 locations in over 40 countries, CAE empowers aviation professionals and defense forces worldwide. For nearly 80 years, CAE has prioritized innovation and quality, setting the standard in high-fidelity flight simulation and training solutions.