L-3 Communications To Supply Airbus Flight Simulator To ANA

L-3 Communications Inc. (NYSE:LLL) announced that its unit, Commercial Training Solutions (L-3 CTS), has received a contract from All Nippon Airways (ANA) to build and deliver an Airbus (OTC:EADSY) A320 Full Flight Simulator (FFS).

The flight simulator is a cost-effective way of training pilots in light of a potential surge in air travel over the next two decades.

First RealitySeven A320 FFS for ANA

The Airbus A320 FFS will be based on L-3 Communications’ RealitySeven flight training simulation solution and will be installed at ANA’s Tokyo, Japan training facility. The device will be ready to provide training to pilots starting Sep 2017.

The RealitySeven A320 FFS will join an existing RealitySeven B787 FFS at ANA’s training center. ANA’s existing fleet currently consists of aircraft manufactured by The Boeing Company (NYSE:BA) and Airbus. So, training pilots in an A320 stimulator will help familiarize them with the real equipment.

Why L-3 Communications?

L-3 Communications was selected to supply the flight stimulator on the back of its high-quality solutions and support, which will allow ANA to meet its pilot training requirements.

Previously, L-3 CTS had delivered commercial training solutions to customers in North America, Europe, Asia, Africa, the Middle East and the Pacific Rim. The unit specializes in a full spectrum of state-of-the-art training solutions, including ab-initio training, airline training, training centers and high-fidelity simulation products.

Our View

ANA has recently faced troubles with the 787 Dreamliner and is planning to replace nearly 100 Rolls Royce (LON:RR) Engines in its existing 787 fleet. The ongoing issues with the Boeing planes could be diverting ANA’s attention toward Airbus.

Per the outlook provided by Boeing, from the present to 2035, the aviation industry will require more than two million new aviation personnel, including 617,000 commercial airline pilots, 679,000 maintenance technicians and 814,000 cabin crew.

Clearly, flight simulators will be the need of the hour during this period. Going forward, we expect L-3 CTS to witness a steady stream of orders from customers across the globe with this rise in demand for flight simulators.

Zacks Rank & Key Picks

L-3 Communications currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the aerospace & defense industry is Ducommun Inc. (NYSE:DCO) with a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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