CAE-China Southern JV grows amid strong demand for aviation training in China
24 December 2003 - 2:58AM
PR Newswire (US)
CAE-China Southern JV grows amid strong demand for aviation
training in China MONTREAL, Dec. 23 /PRNewswire-FirstCall/ --
(NYSE: CGT; TSX: CAE) - CAE and China Southern Airlines are growing
their joint venture business by adding an Airbus A321 full-flight
simulator to the Zhuhai Xiang Yi Aviation Technology training
centre in Zhuhai, Guangdong province, China. China Southern
Airlines and China Northern Airlines, along with other airlines
within the China Southern group, are expected to begin training on
this device in September 2004. Over the life of the fifteen-year
joint venture, which was announced in November 2002, the A321
simulator is expected to yield average annual revenues of C$3
million. CAE holds a 49 per cent equity interest in the company
resulting from the joint venture, with China Southern holding the
remaining 51 per cent. "Adding to our simulator fleet signals that
demand for the joint venture's services is strong," said Gary
Scott, CAE's group president for civil simulation and training.
"We're confident of continued growth in the Chinese market, as the
country sets out to transform itself into one of the world's
largest aviation markets. Demand for training equipment and
services will follow suit." "This joint venture is meeting both
companies' expectations," said Yan Zhi Qing, chairman, China
Southern Airlines. "It helps to further validate that China
Southern is a major player in the worldwide aviation market." The
A321 is slated to become the seventh full-flight simulator housed
at the 10-bay centre. The sale of this simulator, which will be
equipped with the CAE Tropos(TM) visual system, marks the 12th
order that CAE has received this fiscal year. It had won a total of
11 competed orders for all of last fiscal year. The CAE-China
Southern joint venture is an outgrowth of CAE's strategy to form
training alliances with established airlines, including ones with
Emirates of the Middle East, Italian flag carrier Alitalia and
Spain's Iberia Airlines. CAE has an installed base of more than 100
full-flight simulators in its global network of training centres,
with 20 locations on four continents. China Southern Airlines
connects more than 80 cities throughout Asia and around the globe,
transporting over 19 million passengers annually. Under an industry
restructuring, China Southern Airlines recently united with China
Northern Airlines and Xinjiang Airlines to form the China Southern
Air Holding Company, comprising a fleet of over 180 aircraft with
40 per cent of China's domestic market share. CAE is a leading
provider of integrated training solutions and advanced simulation
and controls technologies to civil aviation, military and marine
customers. The company generates annual revenues in excess of C$1
billion and employs about 6,000 people in Canada, the United States
and around the globe. High-resolution downloadable photos are
available in the Photo Gallery section of CAE's Web site:
http://www.cae.com/en/photos.shtml DATASOURCE: CAE INC. CONTACT:
Media contacts: Johanne Denault, Manager, Public Relations, (514)
341-6780 ext. 4889, or Arthur C. Perron, Vice-President, Government
and Media Relations, (514) 341-6780 ext. 5370, ; Investor
relations: Andrew Arnovitz, Director, Corporate Communications and
Investor Relations, (514) 734-5760,
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