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New Aircraft are Key to Renewed Growth in the Flight Simulation Market

VLJ's and Others Expected to Generate Growth in North American Ground-based Flight Simulators and Simulation Solutions Market

PALO ALTO, Calif. – September 14, 2006 – Even as rising fuel costs and turbulent airline profits have decreased demand for ground-based flight simulation solutions, the entry of very light jets (VLJs) and wide and narrow-body aircraft such as Boeing 787 and Airbus 380 in North America will regenerate opportunities for comprehensive, integrated flight simulators and simulation solutions for airlines and operators.

Over 70 orders to date of the Boeing 787 Dreamliner for Air Canada, Continental Airlines and Northwest Airlines, and 20 orders of Airbus 380 freighters for air cargo services FedEx and UPS will significantly add to the market’s growth potential. The introduction of approximately 2,000 VLJs into the commercial aviation market during the forecast period is likely to open another new aircraft segment for flight simulation training solutions (FSTSs) providers.

New analysis from Frost & Sullivan (www.aerospace.frost.com), North American Commercial & Military Ground-Based Flight Simulation Markets, reveals that revenues in this market totaled $2.01 billion in 2005 and can reach $2.78 billion in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the North American Commercial & Military Ground-based Flight Simulation Market, then send an e-mail to Tolu Babalola, Corporate Communications, at This e-mail address is being protected from spambots. You need JavaScript enabled to view it with the following information: full name, company name, title, telephone number, e-mail address, city, state, and country. The brochure will be e-mailed to you upon receipt of this information.

Commercial pilots rely on ground-based flight simulation solutions to train for passenger safety and familiarity with the continuous advancements in aircraft technologies. Considering this, the advent of new aircraft will require innovative simulation solutions addressing technological changes in avionics, flight characteristics and handling. The enormity of the Airbus 380 alone will challenge the skills of experienced and less-experienced pilots as well as bolster the need for flight simulation and training.

“The future of North American commercial ground-based flight simulation lies in the introduction of new wide and narrow-body aircraft such as the Boeing 787 and Airbus 380,” notes Frost & Sullivan Research Analyst Garrick Ngai. “Notably, simulator manufacturers are starting to pursue the VLJ and wide and narrow-body aircraft segments which are expected to grow significantly over the next six years.”

Notwithstanding these market drivers, issues such as the overcapacity and over saturation of full flight simulators (FFS) as well as airline financial difficulties are likely to continue to hinder the growth of the North American commercial and military ground-based flight simulation market. In the light of continuing difficulties, airlines have little money to invest in any new $11 million FFS or other FSTSs. High simulator costs in conjunction with the highest simulator concentration worldwide have made it difficult for manufacturers to sell in North America.

“Despite present challenges, especially financial, North American commercial pilots and airframes are quickly aging and therefore, creating a significant impetus to acquire new simulators toward the end of the decade,” explains Ngai. “For the ground-based flight simulation market, fostering close aircraft original equipment manufacturer, supplier and airline relationships is an effective method of offering integrated simulation solutions to clients.”

In addition, market diversification and business development strategies are critical to market growth. Simulator manufacturers must diversify beyond specialized niches and leverage new segments, such as VLJs, in order to capture all possible revenue in an otherwise mature North American market.

The North American Commercial & Military Ground-Based Flight Simulation Markets is part of the Modeling, Simulation & Training Subscription, which also includes research in the following markets: world visual simulation markets, U.S. military training & simulation markets, and world markets for military pilot training. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Analyst interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

North American Commercial & Military Ground-Based Flight Simulation Markets
F898-16

Contact:
Tolu Babalola
Corporate Communications – North America
P: 210.477.8427
F: 210.348.1003
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Srividhya Parthasarathy
Corporate Communications – Europe
P: + 91 44 42044668
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Donna Jeremiah
Corporate Communications – Asia Pacific
P: +603 6304 5832
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Sharmin Jassal
Corporate Communications – Australia
P: +61 2 8247 8900
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