Canadian government, CAE sign contract

A $329.5 million contract between the Canadian government and St. Laurent-based aeronautics firm CAE for the latter to supply training systems and services to military planes was portrayed as a kick in the pants to the struggling Canadian economy in the face of recession by Prime Minister Stephen Harper at a press conference earlier this afternoon, but the deal has been in negotiations for over a year. “About a year and a half ago, we were told that we were the only ones that qualified (among the firms that bid for the contract),” CAE’s VP of public affairs, Nathalie Proulx, told The Chronicle.

Still, with 330 jobs expected to be created over the next three years and 50 more over the next 20, the mood was jubilant at the Dorval-adjacent company today, with hundreds of its employees gathered to greet the Prime Minister and Minister of Public Works and Government Services Christian Paradis to flashing lights and loud, cheerful music. “(This contract) will strengthen Canada’s reputation as a leader in the aerospace industry,” Harper told the crowd.

He added the government would be making similar announcements for different sectors of the ailing economy across the country over the next few weeks. “There will be a lot of announcements in the future,” he said. “This government is committed to stimulating the economy,” Paradis said, adding the 390 jobs to be created by the deal would be both within Montreal and the rest of Quebec and Canada as well.

CAE’s chief executive Robert Brown said the deal should allow his firm to negotiate similar ones with other countries. “The (company’s) Canadian success story would not have been written without the continued support of the Canadian government,” he added, before presenting Harper with a model of the C-130J airplane simulator.

The announcement comes after a tough few weeks for aeronautics firms. Bombardier laid off 700 employees at its Dorval operations last month, and Pratt and Whitney warned it is on the verge of laying off about 1,000 employees worldwide over the next few months.