Montreal, November 19, 2007 – (NYSE: CGT; TSX: CAE) – CAE and AirAsia have signed a contract which gives CAE the responsibility of managing AirAsia’s Type Rating Training Organization (TRTO) located at the AirAsia Academy, KLIA Kuala Lumpur to provide pilot training for all of AirAsia’s current and future pilots. CAE will also market excess training capacity of AirAsia’s TRTO to third parties. The contract is valued at more than C$50 million (about RM175 million) over 10 years.
Starting in 2008, CAE will begin offering the pilot training services at AirAsia’s six-bay simulator training centre at AirAsia Academy, which is located near the KLIA Low Cost Carrier Terminal in Kuala Lumpur. The TRTO is equipped with three simulators: two Airbus A320s belonging to AirAsia and a Boeing 737-300 owned by CAE. As part of the agreement, CAE will add another Airbus A320 simulator and an Airbus A330 simulator within the next 14 months. CAE will conduct initial Type Rating and Cross Crew Qualification (CCQ) courses for Airbus A320, Airbus A330, and Boeing 737 aircraft exclusively for AirAsia.
Dato’ Tony Fernandes, Group Chief Executive Officer of AirAsia Berhad said: “We have always believed in investing in the future of our people and our training center, and will continue to produce pilots that contribute to Malaysia and the aviation industry. We are glad our early vision in investment is reaping rewards. We have never compromised on our training standards thus we strongly believe CAE’s extensive expertise and vast experience are able to escalate AirAsia’s standards to greater heights. This training will provide the necessary tools for our pilots to ensure that the highest quality and safety standards are always met.”
“This contract will allow us to concentrate on our core business of flying our passengers safely while entrusting CAE to provide us with best-in-class training services. This move is in accordance with our goal in developing a ready pool of pilots to serve our ever expanding fleet and route expansion. And of course, the cost-efficient business model they offer is certainly a bonus to us!” concluded Dato’ Tony.
Captain Subramaniam Cumaraswamy, Head of Type Rating Training Organization (TRTO) of AirAsia Academy said: “Excellent aviation training standards are essential for better professionalism as it will be reflected through our people. The new training managed by CAE’s experts reflects AirAsia’s commitment to Malaysia and to the regions where we fly to and provide the best for our passengers. Thus we are very excited about this new undertaking by CAE as they have been maintaining our simulators for the past four years and are doing a great job at it. We have established a good working relationship with them since then.”
“We are delighted to have been chosen by AirAsia, Asia’s leading and largest low cost carrier. This is testimony to the success of our relationship and we look forward to continuing to provide AirAsia with quality and cost-effective training solutions to meet their growing needs,” said Jeff Roberts, Group President, Innovation and Civil Training & Services at CAE. “This contract reinforces our presence in this important market, and significantly boosts our footprint in Southeast Asia.”
Southeast Asia is one of the fastest growing markets for aviation in the world and one experiencing a severe shortage of pilots. More than 1,000 pilots will be required per year in the region over the next 20 years to meet the expanding needs of the industry. Within the next few months, CAE will be looking at significantly increasing its presence in the region by selecting a location for its principal South-East Asian hub, where an aviation centre of excellence will be established for the delivery of world class aviation pilot, maintenance, and cabin crew training. This location will also act as CAE’s regional hub for Multi-Crew Pilot License (MPL) and Airbus original equipment manufacturer (OEM) training.
CAE offers training services for pilots and maintenance technicians via a network of 24 aviation training centres to a range of clients worldwide. To address the worldwide shortage of pilots, CAE founded the CAE Global Academy, a global network of flight training organizations. One of the founding members of the CAE Global Academy, HM Aerospace, is located in Malaysia.
About AirAsia
AirAsia was recognized at the 2007 Frost & Sullivan Industrial Technologies Awards. The coveted Human Capital Development Award is presented to AirAsia Academy in recognition of the airline’s demonstration of excellence in improving their training quality and human capital development within the industry. AirAsia has consistently shown innovation in competitive strategies to stay ahead in this challenging market to emerge as the leading contender for this Award.
AirAsia has carried over 40 million passengers to date, grown from a 2-aircraft fleet to 62 today and now has the most extensive low cost route network in the region of over 80 routes – all within the grasp of six years in operation. The airline today is proud to be a truly ASEAN airline with its network stretches across 10 ASEAN countries.
In 2006, AirAsia added 13 brand new Airbus A320 aircraft to its fleet. The aircraft proves to be a winning choice as AirAsia guests enjoy bigger seating capacity, wider aisles, greater comfort and a quieter ride. Airbus A320 is reputed to be the most modern and sophisticated aircraft of its class, with high reliability and low operating costs. With 24 Airbus A320 now in operation, AirAsia will be adding 126 more to its fleet up to 2014, giving it the largest, youngest and most modern fleet in the region. For more information, log on to www.airasia.com.
About CAE
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 approximately 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. www.cae.com
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AIRASIA Media contacts:
Sherliza Zaharudin
My Office No : +603 8660 4264
My Email : sherlizazaharudin@airasia.com
Janet Leow
My Office No : 603 8660 4265
My Email : janetleow@airasia.com
Andrea Liong
My Office No : 603 8660 4287
My Email : liongwoenyee@airasia.com
Mazlan Rasheed
My Office No : 603 8660 4263
My Email : mazlanrasheed@airasia.com
CAE contacts:
Nathalie Bourque, Vice President, Public Affairs and Global Communications, +1-514-734-5788,
nathalie.bourque@cae.com
Investor relations: Arnovitz, Vice President, Investor Relations and Strategy, 1-514-734-5760, andrew.arnovitz@cae.com