CAE identified as strategic partner by the Government of Canada for the Future Fighter Lead-in Training program

Rhea-AI Summary

CAE has been selected as a strategic partner by the Government of Canada for the Future Fighter Lead-in Training (FFLIT) program, which will prepare pilots to operate Canada's CF-35A fighters. The program aims to provide advanced training with cutting-edge technology for the Royal Canadian Air Force (RCAF).

This partnership follows CAE's recent achievements, including a C$11.2 billion, 25-year contract for Canada's Future Aircrew Training Program through SkyAlyne (CAE's joint venture with KF Aerospace) in May 2024, and a subsequent $1.7 billion sub-contract signed in October 2024 for RCAF pilot training.

As one of Canada's largest defence contractors, CAE brings extensive experience in delivering defence capabilities, including NATO Flying Training in Canada. The company operates across 240 sites in 40 countries, supporting over 70 different platforms.

Positive

• Secured strategic partnership for FFLIT program with Canadian Government
• Recently awarded C$11.2B contract for Future Aircrew Training Program
• Obtained $1.7B sub-contract for RCAF pilot training
• Position as one of Canada's largest defence contractors strengthened

Negative

• None.

Insights

Defense Industry Analyst

This strategic partnership announcement represents a significant milestone for CAE, building upon their already substantial position in military training. The selection as a strategic partner, rather than through a traditional competitive bid process, signals the government's confidence in CAE's capabilities and creates a strong competitive moat in the defense training sector.

The timing is particularly strategic, coming after CAE's C$11.2 billion Future Aircrew Training (FAcT) Program contract and C$1.7 billion sub-contract secured in 2024. This creates a powerful synergy effect, as CAE can leverage existing infrastructure and expertise across programs, potentially improving operational efficiency and margins.

The FFLIT program's focus on 5th generation fighter training is particularly noteworthy for three reasons:

• It positions CAE at the forefront of advanced military training technology, creating high barriers to entry for competitors
• The program's integration with CF-35A training requirements ensures long-term relevance as more nations adopt 5th generation fighters
• The expertise gained can be exported to other NATO allies, potentially leading to additional international contracts

The partnership structure suggests this could evolve into another multi-billion dollar, multi-decade program, similar to the FAcT contract. CAE's expanding role in critical defense infrastructure strengthens its position for future military modernization programs, both in Canada and internationally.

• Future Fighter Lead-in Training program (FFLIT) to support the next generation of Royal Canadian Air Force fighter pilot training

MONTREAL, Feb. 12, 2025 /PRNewswire/ - (NYSE: CAE) (TSX: CAE) – Today, CAE has been identified as a strategic partner to the Government of Canada to work with the Royal Canadian Air Force (RCAF) to design and co-develop the Future Fighter Lead-in Training (FFLIT) program, which will prepare and train pilots to operate Canada's advanced fighters. 

Leveraging CAE's extensive expertise and experience, this partnership will help streamline discussions and enable the acceleration of initial operational capability of the state-of-the-art FFLIT program. Additionally, the FFLIT program will support the long-term success of Canada's CF-35A capability by providing continuous fighter-pilot training with cutting-edge technology and innovative training methods. FFLIT will equip fighter-pilot candidates with the advanced skills needed to operate the complex and significantly capable CF-35A in an ever-evolving operational environment.

"We are honoured to be entrusted by the Government of Canada to play a critical role in strengthening the 5^th Generation fighter capabilities of the Royal Canadian Air Force," says Marc Parent, CAE's President and Chief Executive Officer. "This decision underscores CAE's position as a global leader in training and innovation, and our steadfast commitment to those who protect our country and its allies. CAE is committed to being among Canada's top defence partners and showcasing how private and public sector collaboration can work together to meet current and future global security challenges. For over 75 years, CAE has been at the forefront of supporting the RCAF, a legacy that will continue as we play this key role in the ongoing modernization of the Canadian Armed Forces. This is only the beginning of what we can achieve together."

"We are proud to have been identified as a strategic partner and look forward to building on our long-standing relationship with the Government of Canada", says France Hébert, Vice-President and General Manager, CAE Defence & Security Canada. "This collaboration will ensure that the next generation of Royal Canadian Air Force pilots receive the best possible fighter training, right here in Canada, from a leader in training that understands the mission, the responsibility, and the stakes".

"Today's announcement highlights Canada's commitment to building long-term capacity for our Royal Canadian Air Force personnel, ensuring they receive the training they need to keep Canadians safe, while creating good jobs across the country", The Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant. "This investment also showcases how modern procurement strategies can support economic growth and national security, while ensuring our military is ready for the challenges it faces in an ever-changing environment."

As one of Canada's largest defence contractors, and a global leader in flight training and simulation, CAE has extensive experience in delivering defence capabilities, including North Atlantic Treaty Organization (NATO) Flying Training in Canada, the Operational Training System Provider and the previous generation of fighter lead-in training (FLIT) for the RCAF and NATO allies.

In May 2024, CAE announced that SkyAlyne, its joint venture with KF Aerospace, was awarded a C$11.2 billion, 25-year contract for Canada's Future Aircrew Training (FAcT) Program. This transformative initiative reimagines training for the Royal Canadian Air Force (RCAF) by consolidating three aircrew training operations under SkyAlyne and Canada's joint management. Building on this milestone, in October 2024, CAE signed a 25-year sub-contract valued at approximately $1.7 billion from its SkyAlyne joint venture, to provide the RCAF with modern, state-of-the-art pilot training.

CAE is proud to continue its legacy of world-class expertise in civil aviation and military training. With a network of 240 sites, in 40 countries, and over 70 different platforms across domains, CAE is best placed to assist Canada with the transition to the 5th Generation modernization of pilot training. 

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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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

View original content:https://www.prnewswire.com/news-releases/cae-identified-as-strategic-partner-by-the-government-of-canada-for-the-future-fighter-lead-in-training-program-302374858.html

SOURCE CAE Inc.

FAQ

What is the value of CAE's Future Aircrew Training Program contract with Canada?

CAE's joint venture SkyAlyne was awarded a C$11.2 billion, 25-year contract for Canada's Future Aircrew Training Program in May 2024.

How much is CAE's sub-contract for RCAF pilot training worth?

CAE signed a 25-year sub-contract valued at approximately $1.7 billion in October 2024 for RCAF pilot training.

What is CAE's role in the Future Fighter Lead-in Training program?

CAE will work as a strategic partner with the Royal Canadian Air Force to design and co-develop the FFLIT program, preparing pilots to operate Canada's CF-35A fighters.

How many training sites does CAE operate globally?

CAE operates across 240 sites in 40 countries, supporting over 70 different platforms across domains.

What is SkyAlyne in relation to CAE?

SkyAlyne is CAE's joint venture with KF Aerospace that was awarded the Future Aircrew Training Program contract.