CAE Aims for “First-in” Advantage in India

Article Excerpt

CAE INC. $9.55 (Toronto symbol CAE; SI Rating: Above average) is thinking about building a new pilot training facility in India. CAE currently has 22 facilities, mainly in North America and Europe. The new training centre would cost CAE about $90 million, or over five times the $17.8 million or $0.07 a share that CAE earned in its first fiscal quarter ended September 30, 2005. India presently has no such facility and sends its pilots to schools in other countries, so this investment would give CAE a first-in advantage over competitors such as Boeing. It should also pay off quickly, since Indian airlines are expanding rapidly, and plan to hire 3,000 new pilots in the five years. CAE could also use the new school to train pilots for India’s air force. CAE is a buy. buy…

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