FR

Year in review

Our Civil Aviation Training Solutions business made significant progress in fiscal year 2016. Some of the key highlights include:

10.4%
revenue growth

12.8%
segment operating income growth 1

1.18
book-to-sales ratio 2

$3.1 billion
backlog 3

53
full-flight simulators sold,
an industry record

7
new simulators deployed across our global network

(1) Segment operating income (SOI) is a non-GAAP measure and our key indicator of each segment’s financial performance. This measure gives us a good indication of the profitability of each segment because it does not include the impact of any items not specifically related to the segment’s performance. We calculate it by taking the operating profit and excluding the impact of restructuring costs.
(2) The book-to-sales ratio is a non-GAAP measure calculated as total orders divided by total revenue in a given period.
(3) Backlog is a non-GAAP measure that represents the expected value of orders we have received but have not yet executed.

With our recent acquisition of Lockheed Martin Commercial Flight Training, we have expanded our simulator installed base by some 50 simulators, mostly at customer sites but also across our training network.

Upset recovery

Loss of Control In Flight (LOC-I) is the primary cause of aircraft fatalities worldwide. In line with upcoming regulatory changes proposed by the International Civil Aviation Organization (ICAO), European Aviation Safety Agency (EASA) and Federal Aviation Administration (FAA), we delivered simulators equipped with Upset Prevention and Recovery Training (UPRT) capable instructor stations this year. In April 2016, we began developing UPRT simulators for business aviation.

Upset recovery

In March 2016, we partnered with JetBlue in its Gateway Select program. This program will make pilot training more accessible to a broader range of candidates by removing some of the social and economic barriers to becoming a pilot. JetBlue chose CAE to deliver this cadet training, building on our 10-year relationship as the operator of JetBlue University in Orlando.

Training agreements

In fiscal 2016, we signed or renewed numerous training services agreements, including long-term commercial pilot training agreements with leading European airlines such as Turkish Airlines and Air Europa.

We strengthened our longstanding relationship with Vueling Airlines by signing a new pilot and cabin crew training services contract. To meet the Spanish carrier’s growing training requirements, we will expand capacity at our Barcelona training centre. KLM Cityhopper, KLM Royal Dutch Airlines’ regional subsidiary, chose us to support its Embraer 170/190 training needs across Europe. Japan Airlines extended our Multi-crew Pilot License (MPL) training agreement to incorporate an additional 100 cadets, further strengthening the ‘training partner of choice’ relationship we have been fostering since 2013.

Upset recovery

Sharper focus on instructors

Our 2,000 instructors are core to executing our training strategy. We have implemented a number of initiatives to improve our instructor capability under our new training organization.