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CAE awarded contract from SkyAlyne to support Canada';s Future Aircrew Training (FAcT) Program

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CAE has secured a 25-year sub-contract valued at approximately $1.7 billion from SkyAlyne to support the Royal Canadian Air Force's (RCAF) Future Air Crew Training (FAcT) program. The contract involves providing comprehensive aircrew training, including live flying, simulation, and ground school training. CAE will develop and deliver simulators and training devices for various aircraft fleets at Moose Jaw, Saskatchewan and Southport, Manitoba over the next 5 years.

The company is also expected to sign a follow-on order for sustainment-related in-service support services. This contract extends CAE's presence at 15 Wing Moose Jaw, where it currently operates the NATO Flying Training in Canada (NFTC) program. The FAcT program aims to modernize and recapitalize the RCAF's training system, ensuring the readiness of Canada's next generation of military personnel.

CAE ha ottenuto un sottocontratto di 25 anni del valore di circa 1,7 miliardi di dollari da SkyAlyne per supportare il programma di Futuro Addestramento degli Equipaggi Aerei (FAcT) della Royal Canadian Air Force (RCAF). Il contratto prevede la fornitura di un addestramento completo per gli equipaggi aerei, inclusi volo dal vivo, simulazione e addestramento a terra. CAE svilupperà e fornirà simulatori e dispositivi di addestramento per varie flotte di aeromobili a Moose Jaw, Saskatchewan e Southport, Manitoba nei prossimi 5 anni.

Si prevede inoltre che l'azienda firmi un ordine successivo per servizi di supporto in servizio legati alla sostenibilità. Questo contratto estende la presenza di CAE presso la 15 Wing Moose Jaw, dove attualmente gestisce il programma NATO Flying Training in Canada (NFTC). Il programma FAcT mira a modernizzare e ricapitalizzare il sistema di addestramento della RCAF, garantendo la prontezza della prossima generazione di personale militare canadese.

CAE ha asegurado un subcontrato de 25 años valorado en aproximadamente 1.7 mil millones de dólares de SkyAlyne para apoyar el programa de Futuro Entrenamiento de Tripulaciones Aéreas (FAcT) de la Fuerza Aérea Canadiense (RCAF). El contrato implica proporcionar un entrenamiento integral para la tripulación aérea, incluyendo vuelo en vivo, simulación y formación en tierra. CAE desarrollará y entregará simuladores y dispositivos de entrenamiento para varias flotas de aeronaves en Moose Jaw, Saskatchewan y Southport, Manitoba, durante los próximos 5 años.

Se espera que la compañía también firme un pedido de seguimiento para servicios de soporte en servicio relacionados con el mantenimiento. Este contrato extiende la presencia de CAE en la 15 Wing Moose Jaw, donde actualmente opera el programa de Entrenamiento Aéreo de la OTAN en Canadá (NFTC). El programa FAcT tiene como objetivo modernizar y recapitalizar el sistema de entrenamiento de la RCAF, asegurando la preparación de la próxima generación de personal militar canadiense.

CAE는 약 17억 달러 규모의 25년 하도급 계약을 SkyAlyne으로부터 확보하여 캐나다 공군(RCAF)의 미래 항공 승무원 훈련(FAcT) 프로그램을 지원합니다. 이 계약에는 실제 비행, 시뮬레이션 및 지상 교육을 포함한 종합적인 항공 승무원 훈련 제공이 포함됩니다. CAE는 향후 5년 동안 사스카체완 주 무스 제아와 매니토바 주 사우스포트에서 다양한 항공기 플릿을 위한 시뮬레이터와 훈련 장치를 개발하고 제공합니다.

이 회사는 지속 가능성과 관련된 서비스 지원을 위한 후속 주문도 체결할 것으로 예상됩니다. 이 계약은 CAE가 현재 NATO 비행 훈련 프로그램(NFTC)을 운영하고 있는 15 Wing Moose Jaw에서의 존재를 확장합니다. FAcT 프로그램은 RCAF의 훈련 시스템을 현대화하고 재무장하여 캐나다의 차세대 군 인력의 준비 태세를 보장하는 것을 목표로 하고 있습니다.

CAE a obtenu un sous-contrat de 25 ans d'une valeur d'environ 1,7 milliard de dollars de SkyAlyne pour soutenir le programme de Formation des Équipes Aériennes Futures (FAcT) de la Force Aérienne Canadienne (RCAF). Le contrat implique la fourniture d'une formation complète pour le personnel aérien, y compris des vols en direct, des simulations et de la formation au sol. CAE développera et fournira des simulateurs et des dispositifs de formation pour diverses flottes d'aéronefs à Moose Jaw, Saskatchewan et Southport, Manitoba, au cours des 5 prochaines années.

L'entreprise devrait également signer une commande de suivi pour des services de soutien en service liés à la durabilité. Ce contrat étend la présence de CAE à la 15 Wing Moose Jaw, où elle gère actuellement le programme d'Entraînement Aérien de l'OTAN au Canada (NFTC). Le programme FAcT vise à moderniser et à recapitaliser le système de formation de la RCAF, garantissant ainsi la préparation de la prochaine génération de personnel militaire canadien.

CAE hat einen 25-Jahres-Untervertrag im Wert von ungefähr 1,7 Milliarden Dollar von SkyAlyne gesichert, um das zukünftige Ausbildungsprogramm für Luftcrews (FAcT) der Royal Canadian Air Force (RCAF) zu unterstützen. Der Vertrag umfasst die Bereitstellung umfassender Schulungen für das Luftpersonal, einschließlich Live-Flug, Simulation und Bodentraining. CAE wird in den nächsten 5 Jahren Simulatoren und Ausbildungsgeräte für verschiedene Flugzeugflotten in Moose Jaw, Saskatchewan und Southport, Manitoba entwickeln und bereitstellen.

Das Unternehmen wird auch voraussichtlich einen Folgebestellung für unterstützende In-Service-Dienstleistungen unterzeichnen. Dieser Vertrag erweitert die Präsenz von CAE in der 15 Wing Moose Jaw, wo es derzeit das NATO Flying Training in Kanada (NFTC) Programm betreibt. Das FAcT-Programm zielt darauf ab, das Ausbildungssystem der RCAF zu modernisieren und zu kapitalisieren, um die Einsatzbereitschaft der nächsten Generation kanadischer Militärsicherzustellen.

Positive
  • Secured a 25-year sub-contract worth approximately $1.7 billion
  • Expected follow-on order for sustainment-related in-service support services
  • Extends CAE's long-standing presence at 15 Wing Moose Jaw
  • Opportunity to deliver advanced training products and services for RCAF
Negative
  • None.

Insights

This contract is a significant win for CAE, representing a substantial $1.7 billion in revenue over 25 years. The deal strengthens CAE's position in the military training sector and provides long-term revenue visibility. Key points:

  • Initial $1.7 billion sub-contract with potential for additional follow-on orders
  • 25-year duration provides stable, long-term cash flow
  • Extends CAE's presence at 15 Wing Moose Jaw
  • Includes development and delivery of simulators and training devices

The contract's size relative to CAE's $5.93 billion market cap is notable, potentially boosting investor confidence. The expected follow-on order for sustainment services could further increase the total contract value. This deal reinforces CAE's market leadership in military training solutions and should contribute positively to the company's financial performance over the long term.

This contract marks a significant milestone in Canada's military aircrew training modernization efforts. The Future Aircrew Training (FAcT) program represents a comprehensive overhaul of the Royal Canadian Air Force's training capabilities. Key implications:

  • Enhances RCAF's ability to train pilots, Air Combat System Officers and Airborne Electronic Sensor Operators
  • Introduces state-of-the-art simulation and training technologies
  • Consolidates training under a single provider model, potentially improving efficiency
  • Strengthens Canada's domestic defense industry capabilities

The partnership between CAE and KF Aerospace through SkyAlyne leverages the strengths of two leading Canadian aerospace companies. This approach aligns with Canada's strategy to support its domestic defense industry while ensuring high-quality training for its armed forces. The contract's long-term nature also provides stability and continuity in military training programs, which is important for maintaining operational readiness.

MONTREAL, Oct. 1, 2024 /PRNewswire/ - CAE announced today that it has signed a 25-year sub-contract valued at approximately $1.7 billion from SkyAlyne, a joint venture between CAE and KF Aerospace, to provide the Royal Canadian Air Force (RCAF) with modern, state-of-the-art pilot training.

As a major subcontractor to the Future Air Crew Training (FAcT) program, CAE will deliver over the course of the contract term comprehensive aircrew training including live flying, simulation, and ground school training. This will extend CAE's long-standing presence at 15 Wing Moose Jaw where CAE currently operates the NATO Flying Training in Canada (NFTC) program.

As part of this sub-contract, CAE will initially develop and deliver a range of simulators and training devices to be installed in Moose Jaw, Saskatchewan and at Southport, Manitoba for the various aircraft fleets being procured for the RCAF under the FAcT program. These training devices are expected to be delivered over the next 5 years.

In addition to this initial approximately $1.7 billion sub-contract, CAE is also expected to sign a follow-on order in the near term involving sustainment-related in-service support services. 

"The FAcT program launches a new era in Canadian military aircrew training, and CAE is proud to be delivering advanced products and services that will enable the most extensive training system recapitalization ever undertaken by the RCAF," said Marc Parent, CAE's President and Chief Executive Officer. "For more than 75 years, CAE has put the readiness and safety of military pilots and service members at the forefront of its training and simulation development. With FAcT, our priority will be to ensure the RCAF has the depth and the technical advantage it needs to support the mission readiness of Canada's next generation of military personnel."

SkyAlyne unites leading Canadian defence and aviation companies, CAE and KF Aerospace, in a joint venture designed to provide the RCAF with turnkey training operations delivered by a single provider. The partnership combines the expertise of both organizations' highly successful and longstanding RCAF pilot training programs, while expanding training capabilities for Air Combat System Officers (ACSO) and Airborne Electronic Sensor Operators (AES Op) under an innovative and cost-effective single schoolhouse model for aircrew training.

"As the world we live in continues to change and evolve, the RCAF needs the most capable and well-trained aircrew that can excel in challenging and dynamic global environments. Together with partners like CAE, SkyAlyne is providing the RCAF with a world-leading training system that will set a new standard," explained Kevin Lemke, General Manager of SkyAlyne. "The team supporting SkyAlyne includes leaders from coast-to-coast-to-coast and the personnel at CAE are among the best of the best. CAE's contributions to the FAcT program will be immense."

For nearly a quarter of a century, CAE has provided best-in-class pilot training trusted by the RCAF at 15 Wing Moose Jaw as part of the NFTC program. CAE is proud to continue this legacy of excellence and to participate in the overall delivery of the transformative FAcT program as Canada's premiere military training partner.

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 FY24 Global Annual Activity and Sustainability Report

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About SkyAlyne: The Future of Aircrew Training
SkyAlyne is the Future Aircrew Training (FAcT) program provider for the Royal Canadian Air Force. SkyAlyne is a team of defence, training, simulation, and aviation industry experts assembled from across Canada, working to prepare the next generation of RCAF pilots and aircrew. SkyAlyne was formed in 2018 as a partnership between CAE and KF Aerospace, two Canadian aviation, training, and defence leaders. The partnership was built to jointly answer the call for the Government of Canada's FAcT program. In 2023 SkyAlyne was named the preferred bidder, and in 2024, was officially contracted to deliver the FAcT program. 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:
Anna Cristofaro, Lead, Marketing and Communications
+1-263-999-8271, anna.cristofaro@cae.com

SkyAlyne Contact:
Harrison Ruess, Head of Communications, Collaboration, and Stakeholder Relations
H.Ruess@SkyAlyne.ca

Cision View original content:https://www.prnewswire.com/news-releases/cae-awarded-contract-from-skyalyne-to-support-canadas-future-aircrew-training-fact-program-302264667.html

SOURCE CAE Inc.

FAQ

What is the value and duration of CAE's contract for the FAcT program?

CAE has signed a 25-year sub-contract valued at approximately $1.7 billion from SkyAlyne for the Future Aircrew Training (FAcT) program.

What services will CAE provide under the FAcT program contract?

CAE will provide comprehensive aircrew training, including live flying, simulation, and ground school training, as well as develop and deliver simulators and training devices for various aircraft fleets.

Where will CAE deliver the training devices for the FAcT program?

CAE will deliver simulators and training devices to be installed in Moose Jaw, Saskatchewan and at Southport, Manitoba for the RCAF's various aircraft fleets under the FAcT program.

How long has CAE been involved in RCAF pilot training at 15 Wing Moose Jaw?

CAE has been providing pilot training for the RCAF at 15 Wing Moose Jaw for nearly a quarter of a century as part of the NATO Flying Training in Canada (NFTC) program.

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