CAE';s SkyAlyne joint venture awarded C$11.2-billion, 25-year contract for Canada's Future Aircrew Training Program

Rhea-AI Summary

CAE's SkyAlyne joint venture has secured a C$11.2-billion, 25-year contract for Canada's Future Aircrew Training (FAcT) Program. This initiative aims to overhaul and consolidate aircrew training operations for the Royal Canadian Air Force (RCAF), enhancing mission readiness. SkyAlyne, a partnership between CAE and KF Aerospace, was chosen as the preferred bidder in July 2023. The FAcT Program will provide comprehensive training including live flying, simulation, and ground school training, managed from Ottawa and operating at multiple locations including 15 Wing Moose Jaw and 17 Wing Winnipeg. The program promises to modernize RCAF's training systems and processes.

Positive

• Secured a C$11.2-billion contract, guaranteeing long-term revenue.
• 25-year duration ensures sustained business stability.
• Consolidation of training operations could lead to improved efficiency and cost savings.
• Modernization of training systems aligns CAE with future defense needs.
• Collaboration with KF Aerospace strengthens industry partnerships.

Negative

• High dependency on a single, long-term contract could be risky if terms or conditions change.
• Significant upfront investment required for the development and implementation of new training systems.
• Potential delays or issues in the project could impact financial performance.

MONTREAL, May 29, 2024 /PRNewswire/ - (NYSE: CAE) (TSX: CAE) – CAE announced that its SkyAlyne joint venture was today awarded a C$11.2-billion, 25-year contract for Canada's Future Aircrew Training (FAcT) Program. 

"CAE has proudly worked alongside the Royal Canadian Air Force (RCAF) for more than 75 years to design and deliver training, services, and technologies that support the mission readiness of Canada's aviators," said Marc Parent, CAE's President and Chief Executive Officer. "Today's announcement regarding the Future Aircrew Training Program is a significant achievement in the ongoing modernization efforts of Canada's defence forces. FAcT is a transformational win for SkyAlyne and CAE, laying the groundwork for training technologies and processes enabling mission readiness. As an industry leader in civil and defence simulation training and critical operations, CAE is proud to be part of the future of aircrew training to Canada."

This transformative initiative reimagines training for the RCAF, consolidating three aircrew training operations under SkyAlyne and Canada's joint management. SkyAlyne, a partnership with KF Aerospace of Kelowna, BC, was selected in July 2023 as the preferred bidder for FAcT after a rigorous process.

The FAcT Program is a significant step forward to prepare Canadian military Pilots, Air Combat Systems Officers, and Airborne Electronic Sensor Operators for tomorrow's challenges. Under the FAcT Program, SkyAlyne – in collaboration with the RCAF – will design, develop, and deliver a comprehensive training and support system, including live flying, simulation, ground school training, and a suite of in-service support functions.

Centrally managed from Ottawa, the FAcT Program will revamp and expand upon current training services currently provided by CAE and KF Aerospace, with operations set to continue at 15 Wing Moose Jaw, Southport (Portage la Prairie) and 17 Wing Winnipeg. The program includes the establishment of a complete training enterprise at all three operating locations helping ensure the RCAF maintains the highest standards of excellence and innovation.

A photo is available at CAE's Multimedia Centre.

About CAE

At CAE, we equip people in critical roles with the expertise and solutions to create a safer world. As a technology company, we digitalize the physical world, deploying software-based simulation training and critical operations support solutions. Above all else, we empower pilots, cabin crew, maintenance technicians, airlines, business aviation operators, and defence and security forces to perform at their best every day and when the stakes are the highest. Around the globe, we're everywhere customers need us to be with approximately 13,000 employees in more than 240 sites and training locations in over 40 countries. CAE represents more than 75 years of industry firsts—the highest-fidelity flight and mission simulators as well as training programs powered by digital technologies. We embed sustainability in everything we do. Today and tomorrow, we'll make sure our customers are ready for the moments that matter.

Read our FY23 Global Annual Activity and Sustainability Report.

About SkyAlyne

Truly Canadian Training | SkyAlyne brings together two Canadian companies with unmatched experience and capabilities in delivering innovative pilot and aircrew training in Canada. Currently, CAE and KF Aerospace deliver all phases of pilot training to the Royal Canadian Air Force (RCAF) through the NATO Flying Training in Canada (NFTC) program managed by CAE, and the Contracted Flying Training and Support (CFTS) program managed by KF Aerospace. Website.

About Future Aircrew Training (FAcT)

The Future Aircrew Training (FAcT) Program combines Royal Canadian Air Force (RCAF) pilot and aircrew training. Website

CAE Contacts: 

General Media:
Samantha Golinski, Vice President, Public Affairs & Global Communications, +1-438-805-5856, samantha.golinski@cae.com 

Investor Relations:
Andrew Arnovitz, Senior Vice President, Investor Relations and Enterprise Risk Management, +1-514-734-5760, andrew.arnovitz@cae.com

Trade Media:
Wendy Stough, Director, Marketing and Communications,+1-813-233-6409, wendy.stough@caemilusa.com

View original content:https://www.prnewswire.com/news-releases/caes-skyalyne-joint-venture-awarded-c11-2-billion-25-year-contract-for-canadas-future-aircrew-training-program-302158406.html

SOURCE CAE Inc.

FAQ

What is CAE's recent contract award?

CAE's SkyAlyne joint venture was awarded a C$11.2-billion, 25-year contract for Canada's Future Aircrew Training (FAcT) Program.

What is the duration of CAE's contract for Canada's Future Aircrew Training Program?

The contract is for a duration of 25 years.

Who are the partners in the SkyAlyne joint venture?

SkyAlyne is a joint venture between CAE and KF Aerospace.

When was SkyAlyne selected as the preferred bidder for the FAcT Program?

SkyAlyne was selected as the preferred bidder in July 2023.

What are the components of the Future Aircrew Training Program?

The FAcT Program includes live flying, simulation, ground school training, and in-service support functions.

Where will the FAcT Program operations be based?

Operations will be centrally managed from Ottawa with locations at 15 Wing Moose Jaw, Southport (Portage la Prairie), and 17 Wing Winnipeg.