CAE deploys a Boeing 767 simulator to support pilot training for MasAir Cargo

Montreal, Canada | June 18, 2021

CAE deploys a Boeing 767 simulator to support pilot training for MasAir Cargo. From left to right: Tereza Paredes (Training Manager, MasAir Cargo), Capt. Victor Peña (Head of Pilot Training, MasAir Cargo), Capt. Guillermo (Training Centre Manager, CAE), Roberto Navarro (Operations Director, Mas Air Cargo), Capt. Cynthia Cano (Chief Pilot, MasAir Cargo), Patrick McCarthy (Strategic Planning Director, MasAir Cargo), Luis Sierra (MasAir CEO), F.O Orlando Cruz (Crew, MasAir)

CAE and MasAir Cargo (MasAir) signed an exclusive five-year aircraft pilot training agreement. As part of this agreement, CAE is providing instructors and flight training equipment to train MasAir’s cargo pilots on the Boeing 767 platform and is deploying a full-flight simulator to CAE’s Mexico training centre in Toluca, southwest of Mexico City.

“Throughout the years, airlines around the world have entrusted CAE to provide the highest level of pilot training and flight simulation technology,” said Nick Leontidis, CAE’s Group President Civil Aviation Training Solutions. “The pandemic has fueled growth in the cargo airline business in the recent months and CAE is thrilled to support MasAir as the airline is further developing its ACMI and Scheduled cargo flight services. Our instructors will be delivering our world-class training experience and we are looking forward to welcoming MasAir’s pilots to our CAE Mexico training centre.”

“Despite the recent significant demand for our Scheduled Cargo and ACMI services, MasAir continues to deliver operational excellence, flight after flight. This strategic agreement with CAE, a leader in pilot training, will enable us to keep an accelerated growth, while maintaining our continuous commitment to achieving the highest standards of safety in the industry,” said Patrick McCarthy, Strategic Planning Director, MasAir Cargo. “Our joint focus on pilot training excellence will help us grow our operations safely and achieve our vision, and we look forward to starting our pilot training program with CAE later this year.”

MasAir pilot training at CAE Mexico is expected to start in July 2021.

About MasAir

Aerotransportes Mas de Carga, SA de CV (dba MasAir Cargo Airline) is a Mexico City-based cargo airline, operating freighter aircraft since 1992. Since 2001, MasAir has been a B767-300Fs operator. An IATA member, MasAir holds IOSA, ISAGO, TCO-EASA, CCAR-129 and IATA-CEIV Pharma certifications. Since December 2018 MasAir is under a new ownership structure and management, with Discovery Americas -a leading Mexican Private Equity Fund- as majority shareholder. MasAir has a scheduled and charter network that spans along the Americas and Europe and is now expanding its new ACMI division with additional freighter aircraft. www.masair.com

CAE reports fourth quarter and full fiscal year 2021 results

All financial information is in Canadian dollars.

Montreal, 19 May 2021 – CAE today reported annual revenue of $3.0 billion, compared to $3.6 billion last year. Annual operating income was $48.4 million and adjusted segment operating income was $280.6 million compared to $590.4 million last year. Adjusted segment operating income excluding COVID-19 government support programs was $153.2 million this year. Annual net loss attributable to equity holders was $47.2 million (negative $0.17 per share) compared to net income of $311.4 million ($1.16 diluted earnings per share) in fiscal year 2020. Adjusted net income was $127.1 million ($0.47 per share) this year, compared to $359.7 million ($1.34 per share) last year. Adjusted net income excluding COVID-19 government support programs was $33.6 million ($0.12 per share) this year.

Fourth quarter fiscal 2021 revenue was $894.3 million, compared with $977.3 million last year. Fourth quarter net income attributable to equity holders was $19.8 million ($0.07 per share) compared to $78.4 million ($0.29 per share) last year. Adjusted net income in the fourth quarter was $63.2 million ($0.22 per share), compared to $122.3 million ($0.46 per share) last year. Adjusted net income excluding COVID-19 government support programs was $35.9 million ($0.12 per share) this quarter.

“CAE demonstrated mettle and resiliency during the fiscal year by successfully confronting the challenges of COVID-19, and at the same time, seizing on opportunities to fundamentally strengthen the Company for the future,” said Marc Parent, CAE’s President and Chief Executive Officer. “We harnessed our One CAE culture and secured highly strategic growth opportunities, launched new digitally-enabled services and software solutions, innovated business processes, structurally lowered our cost base, and bolstered key talent – all of which give us greater potential than ever before for higher growth and profitability in the years ahead.”

Marc Parent added, “Turning to our results, given the magnitude of COVID-19 impacts, I am especially pleased with what we have been able to deliver in fiscal 2021. In the face of the biggest-ever shock in the history of civil aviation and major disruptions across the defence and healthcare markets, CAE rebounded to quarterly profitability and positive free cash flow(9) after only our first quarter. Our recovery momentum has continued into the fourth quarter with average training network utilization of 55% and sequentially higher margins in Civil, order bookings to sales breaking above 1.1x in Defence, and record quarterly revenue in Healthcare. For CAE overall, we generated $0.22 adjusted EPS in the quarter and $0.47 adjusted EPS for the year. We also generated strong annual free cash flow of $347 million, serving as a testament to CAE’s resiliency as a good port in a storm.”    

On CAE’s outlook, Marc Parent added, “we are making important progress to galvanize CAE as an industrial technology leader and position the Company for higher growth. This includes the integration of our four recent acquisitions in Civil that will strengthen our offering and expand our addressable market with highly innovative software solutions. In Defence, the opportunity to acquire L3Harris’ Military Training business will significantly accelerate our Defence growth strategy and align us more closely with national defence priorities. In addition, we maintain the financial flexibility and bandwidth to continue to cultivate a pipeline of sustainable growth opportunities, including the deployment of expansion capital and customer outsourcings. We expect strong growth in fiscal year 2022, with the slope of recovery continuing to depend on the timing and rate at which travel restrictions and quarantines can be safely lifted in our various geographies and normal activities resume in our end markets. For the long-term, we are more confident than ever that CAE will emerge from this period in a position of even greater strength.”

Civil Aviation Training Solutions (Civil)

Fourth quarter Civil revenue was $388.2 million, down 6% compared to the preceding quarter, and down 36% compared to the same quarter last year. Operating income was $40.5 million compared to $48.4 million in the third quarter and $151.5 million in the fourth quarter last year. Fourth quarter Civil adjusted segment operating income was $66.6 million (17.2% of revenue), compared to $62.0 million (15.0% of revenue) in the third quarter and $153.6 million (25.5% of revenue) in the fourth quarter last year. Adjusted segment operating income excluding COVID-19 government support programs was $46.9 million (12.1% of revenue) this quarter and $58.4 million (14.2% of revenue) in the third quarter. Fourth quarter Civil training centre utilization(10) was 55% and has trended at a similar level since the end of the quarter.

Annual Civil revenue was $1,412.9 million, down 35% compared to last year. Annual operating income was $6.5 million compared to $473.3 million last year, and annual adjusted segment operating income was $164.3 million (11.6% of revenue) compared to $479.4 million (22.1% of revenue) last year. Adjusted segment operating income excluding COVID-19 government support programs was $100.7 million this year (7.1% of revenue). Annual Civil training centre utilization was 47%.

During the quarter, Civil signed training solutions contracts valued at $385.8 million, including long-term training services agreements and the sale of 4 full-flight simulators (FFSs)(11). For the year, Civil booked orders for $1.3 billion, demonstrating CAE’s continued momentum as the training partner of choice for airlines, business jet operators and pilots worldwide. These included 11 FFS sales and comprehensive, long-term training agreements with customers worldwide, including Iberia, Líneas Aéreas de España, Azul Brazilian Airlines, Bundeswehr in Germany, Virgin Atlantic, Alitalia and Air France. In fiscal year 2022, Civil expects to maintain its leading share of the available FFS sales and expects to deliver upwards of 30 FFSs to customers worldwide.

The Civil book-to-sales(8) ratio was 0.99x for the quarter and 0.89x for the last 12 months. The Civil backlog at the end of the year was $4.3 billion, which is down 20% from the prior year period.

Since the end of the quarter, in the Advanced Air Mobility market, CAE announced that it has been selected by Jaunt Air Mobility to lead the design and development of the Jaunt Aircraft Systems Integration Lab (JASIL) for the company’s new all-electric vertical take-off and landing (eVTOL) aircraft, the Journey aircraft. By leveraging CAE’s 70+ years of experience in high-fidelity simulation, CAE will work hand-in-hand with Jaunt to bring best-in-class simulation and modeling to the aircraft development program from inception.

Link to full Press Release

CAE’s diversity and inclusion efforts recognized

  • Receives Silver Parity Certification from Women in Governance
  • Included in Bloomberg Gender Equality 2021 Index for third consecutive year

Montreal, Quebec, Canada, May 6, 2021

CAE was awarded the Silver-level certification by Women in Governance for its efforts in promoting gender parity in the workplace. The company was also included in the Bloomberg Gender Equality Index for the third consecutive year.

CAE received its certification at Women in Governance’s 2021 Annual Recognition Gala which was held today and featured, as honorary co-presidents, Marc Parent, CAE’s President and Chief Executive Officer, and Maria Della Posta, President of Pratt & Whitney Canada.

“Diversity and inclusion is part of our values and a strategic priority for CAE,” said Marc Parent. “We are committed to advancing equality between women and men in the workplace and to encourage other business leaders to make a similar commitment. In the past few years, CAE has made progress in the attraction, development and retention of female talent and in promoting gender parity within our organization. We have launched unconscious bias training for all employees as well as a series of internal programs to equip and inspire women to take ownership of their careers within the company. In addition to our Professional Women’s Network, we launched another employee resource group (ERG), voted by employees and focused on Women in Aviation and Technology. Externally, our CAE Women in Flight scholarship program encourages more women to aspire to become professional pilots.”

The Women in Governance Parity Certification serves to recognize organizations that have achieved results by articulating a commitment to gender parity in the workplace, integrating it to the ecosystem of the organization and implementing mechanisms to achieve that commitment and sustain it over time. CAE was awarded the Bronze-level certification in September 2019.

This award follows the recognition CAE received earlier this year as one of 380 firms worldwide selected for inclusion in Bloomberg’s 2021 Gender-Equality Index (GEI). The GEI tracks the performance of public companies committed to disclosing their efforts to support gender equality through policy development, representation and transparency.

CAE is a signatory of the United Nations Women Empowerment Principles as part of its ongoing commitment to promoting gender equality and the empowerment of women in the workplace.

About CAE

CAE is a high-tech company at the forefront of digital immersion, providing solutions to make the world safer. Backed by more than 70 years of innovation, we continue to reinvent the customer experience and revolutionize training and operational support solutions in the civil aviation, defence and security, and healthcare industries. We are the partner of choice for customers around the world who operate in complex, often dangerous and highly regulated environments where success is critical. As a result of our customers’ ongoing need for our solutions, more than 60% of CAE’s revenue is generated from recurring business. We have the largest global presence in the industry, with approximately 10,000 employees in 160 locations and training centres in more than 35 countries. www.cae.com

CAE announces the appointment of Mary Lou Maher to CAE’s Board of Directors

CAE announced today the appointment of Mary Lou Maher, FCPA, FCA, as a new member of CAE’s Board of Directors.  

“We are very pleased to welcome Mary Lou Maher to CAE’s Board of Directors, she brings with her over 35 years of experience in finance, risk management, risk governance, diversity and inclusion, and human resources management,” said the Honourable John Manley, Chair of CAE’s Board of Directors.   

Mary Lou Maher was Canadian Managing Partner, Quality and Risk for KPMG Canada and Global Head of Inclusion and Diversity for KPMG International from 2017 to February 2021. Over her 38 years at KPMG she has held various executive and governance roles including Chief Financial Officer and Chief Human Resources Officer.  

Ms. Maher created KPMG Canada’s first ever National Diversity Council and was the 2019 recipient of the Wayne C. Fox Award for Distinguished Alumni from McMaster University in recognition of her work on diversity and inclusion. She was inducted into the WXN Top 100 Most Powerful Women in Canada, received a Lifetime Achievement Award from Out on Bay Street (Proud Strong), and the Senior Leadership Award for Diversity from the Canadian Centre for Diversity and Inclusion.

She is a member of the World Economic Forum focused on Human Rights – the business perspective, the Alzheimer’s Society of Toronto, and has served on other not-for-profit boards including as Chair of Women’s College Hospital and member of the CPA Ontario Council.

Ms. Maher holds a Bachelor of Commerce degree from McMaster University and holds the designation of FCPA, FCA.

For more on CAE’s Board of Directors, click here

About CAE

CAE is a high technology company, at the leading edge of digital immersion, providing solutions to make the world a safer place. Backed by a record of more than 70 years of industry firsts, we continue to reimagine the customer experience and revolutionize training and operational support solutions in civil aviation, defence and security, and healthcare. We are the partner of choice to customers worldwide who operate in complex, high-stakes and largely regulated environments, where successful outcomes are critical. As testament to our customers’ ongoing needs for our solutions, over 60 percent of CAE’s revenue is recurring in nature. We have the broadest global presence in our industry, with approximately 10,000 employees, 160 sites, and training locations in over 35 countries. www.cae.com

CAE expands its digital solutions portfolio with the addition of RB Group

Building a comprehensive suite of software applications for operators and their crew members

Montreal, Quebec, Canada, April 6, 2021 (NYSE: CAE; TSX: CAE) – CAE announced today the expansion of its digital solutions portfolio with the addition of RB Group, a leading provider of fully integrated award-winning solutions that modernize the way airlines and business aircraft operators interact with their crew. This announcement further supports CAE’s expansion into digital flight crew management and represents another important milestone in the Company’s goal to unite operators and crew in a single, interconnected digital ecosystem.

“Over the past two years, CAE has been focused on unifying a digital flight operations ecosystem with the goal of delivering a holistic suite of solutions designed to improve operations and enhance crew experience. As they prepare for return to flight, crew members will be able to manage and schedule their activities more effectively and operators will have integrated tools to connect and engage with crews like never before,” said Nick Leontidis, CAE’s Group President, Civil Aviation Training Solutions. “This acquisition is a natural evolution of our business and our commitment to operators, pilots, and crew around the world. We’re excited about integrating RB Group’s technical expertise to serve operators and crew members everywhere.”

Following the acquisition of Merlot Aero’s crew management and optimization software in December 2020, the addition of RB Group enhances CAE’s product portfolio with powerful digital tools that further improve airline operations and crew work-life balance. The suite of applications includes a digital logbook, and the award-winning crew engagement RosterBuster app.

With over 400,000 users globally and over 500 airlines currently supported, the RosterBuster crew app empowers aviation professionals with relevant and instant information and allows users to connect to their airline operations, communicate with fellow crew members, and manage their busy day-to-day lives with ease.

To discover CAE’s pilot and crew apps and Crew Management System, visit https://www.cae.com/crew-engagement

About CAE

CAE is a high technology company, at the leading edge of digital immersion, providing solutions to make the world a safer place. Backed by a record of more than 70 years of industry firsts, we continue to reimagine the customer experience and revolutionize training and operational support solutions in civil aviation, defence and security, and healthcare. We are the partner of choice to customers worldwide who operate in complex, high-stakes and largely regulated environments, where successful outcomes are critical. As testament to our customers’ ongoing needs for our solutions, over 60 percent of CAE’s revenue is recurring in nature. We have the broadest global presence in our industry, with approximately 10,000 employees, 160 sites, and training locations in over 35 countries. http://www.cae.com

Leonardo and CAE team up to support International Flight Training School in Italy

March 29, 2021

The International Flight Training School (IFTS) will relocate in 2022 to Decimomannu Italian Air Force Base (Sardinia Region – South Italy), shown here in this artist rendering.

The M-346 advanced jet trainer will be used at the International Flight Training School (IFTS) for Phase IV lead-in fighter training.

The International Flight Training School features a comprehensive M-346 ground-based training system, including full-mission simulators, jointly developed by CAE and Leonardo.

Leonardo and CAE today announced the two companies have created a joint venture called Leonardo CAE Advanced Jet Training Srl to support the operations of the International Flight Training School (“IFTS”) in Italy. The joint venture will provide training support services, including full maintenance and operation of the M-346 aircraft and its ground-based training system, as well as operation of IFTS base facilities.

The IFTS, a unique partnership between the Italian Air Force (ItAF) and Leonardo, has been created to deliver a comprehensive lead-in to fighter training to the Italian Air Force and foreign customers. The IFTS advanced training program, based on the Phase IV of the Italian Air Force syllabus, can rely on the M-346 ground-based training system, including the advanced full-mission simulator jointly developed by Leonardo and CAE.

The IFTS is currently located at 61st Wing – Galatina  (Apulia Region – South Italy) Italian Air Force Base and will be relocated, starting from 2022, to Decimomannu Italian Air Force Base (Sardinia Region – South Italy) where a groundbreaking ceremony was held in December 2020 to formally begin construction on a modern flight training campus.

“Our commitment to deliver to the IFTS customers a best-in-class training capability is further demonstrated by the choice of CAE as our IFTS partner. The joint venture represents the ideal framework to further leverage our successful collaboration on the M-346 ground-based training system, while ensuring us the agility and flexibility to meet challenging and tailored customer requirements,” said Leonardo Aircraft Division Managing Director, Marco Zoff. “Leonardo, CAE and the Italian Air Force’s world-renowned excellence will guarantee advanced top level training for the modern air forces at reduced cost in order to satisfy a growing demand in advanced flight training.”

The industrial partnership between Leonardo and CAE in the form of the joint venture will manage and conduct the day-to-day operations of the IFTS. The IFTS will operate a fleet of 22 M-346 advanced jet trainers, an aircraft that features a range of embedded training capabilities enabling extensive live, virtual and constructive training. Training will be delivered by a cadre of active-duty Italian Air Force and highly experienced international former military instructor pilots.

“CAE and Leonardo have a longstanding industrial relationship and we are pleased to invest jointly with Leonardo and the Italian Air Force in this groundbreaking public-private partnership to operate the International Flight Training School,” said Marc-Olivier Sabourin, Vice President and General Manager, Defence & Security International, CAE.  “The partnership between Leonardo and CAE will support the M-346 Integrated Training System, which is a pivotal element of a modern and innovative Lead-In to Fighter Training (LIFT) program for next generation pilots.”

About Leonardo

Leonardo, a global high-technology company, is among the top ten world players in Aerospace, Defence and Security and Italy’s main industrial company. Organized into five business divisions, Leonardo has a significant industrial presence in Italy, the United Kingdom, Poland and the USA, where it also operates through subsidiaries that include Leonardo DRS (defense electronics), and joint ventures and partnerships: ATR, MBDA, Telespazio, Thales Alenia Space and Avio. Leonardo competes in the most important international markets by leveraging its areas of technological and product leadership (Helicopters, Aircraft, Aerostructures, Electronics, Cyber Security and Space).

Listed on the Milan Stock Exchange (LDO), in 2019 Leonardo recorded consolidated revenues of €13.8 billion and invested €1.5 billion in Research and Development. The company has been part of the Dow Jones Sustainability Index (DJSI) since 2010 and has been named as sustainability global leader in the Aerospace & Defence sector for the second year in a row of DJSI in 2020.

Learn more at www.leonardocompany.com

CAE reports third quarter fiscal 2021 results

  • Revenue of $832.4 million up 18% vs. second quarter and down 10% vs. third quarter last year
  • EPS of $0.18 ($0.22 before specific items(1)) vs. negative $0.02 ($0.13 before specific items) in the second quarter and $0.37 ($0.37 before specific items) in the third quarter last year
  • Operating profit(2) of $82.9 million vs. $28.2 million in the second quarter and $154.9 million in the third quarter last year
  • Segment operating income before specific items(3) of $97.2 million vs. $79.3 million in the second quarter and $157.2 million in the third quarter last year
  • Net cash provided by operating activities of $234.8 million vs. $45.6 million in the second quarter and $322.1 million in the third quarter last year
  • Positive free cash flow(4) of $224.0 million vs. $44.9 million in the second quarter and $275.3 million in the third quarter last year
  • Issued $495.3 million in common equity and announced three acquisitions: Flight Simulation Company B.V., TRU Simulation + Training Canada Inc., and Merlot Aero Limited

CAE today reported revenue of $832.4 million for the third quarter of fiscal 2021, compared with $923.5 million in the third quarter last year. Third quarter net income attributable to equity holders was $48.8 million ($0.18 per share) compared to $97.7 million ($0.37 per share) last year. Net income before specific items(5) in the third quarter of fiscal 2021 was $60.0 million ($0.22 per share) compared to $99.4 million ($0.37 per share) last year. 

Operating profit this quarter was $82.9 million (10.0% of revenue), compared to $154.9 million (16.8% of revenue) in the third quarter of fiscal 2020. Restructuring costs of $14.3 million were recorded this quarter whereas there were no restructuring costs in the third quarter of fiscal 2020. Third quarter segment operating income before specific items was $97.2 million (11.7% of revenue) compared with $157.2 million (17.0% of revenue) last year. Backlog(6) remains solid at $7.8 billion. All financial information is in Canadian dollars unless otherwise indicated.Summary of consolidated results

(amounts in millions, except operating margins and per share amounts) Q3-2021 Q3-2020Variance %
Revenue$832.4 $923.5 (10%)
Operating profit$82.9 $154.9 (46 %)
Segment operating income(7) (SOI)$97.2 $154.9 (37%)
Segment operating margins%11.7 %16.8  
SOI before specific items$97.2 $157.2 (38 %)
Segment operating margins before specific items%11.7 %17.0  
Net income$49.7 $99.8 (50 %)
Net income attributable to equity holders of the Company$48.8 $97.7 (50%)
Basic and diluted earnings per share (EPS)$0.18 $0.37 (51%)
Net income before specific items$60.0 $99.4 (40 %)
EPS before specific items$0.22 $0.37 (41%)
Order intake(6)$710.7 $1,106.6 (36%)
Total backlog$7,820.1 $9,434.3 (17 %)
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CAE awarded contract from Boeing to develop P-8A operational flight trainer for Royal New Zealand Air Force

Montreal, February 8, 2021

CAE will design and manufacture a P-8A flight simulator for the Royal New Zealand Air Force similar to the P-8A operational flight trainer shown above already delivered to the U.S. Navy.

On the eve of the start of the CAE OneWorld 2021 virtual conference and tradeshow, CAE today announced that during its fiscal third quarter Boeing ordered a P-8A operational flight trainer (OFT) for the Royal New Zealand Air Force (RNZAF).

CAE will design and manufacture the hardware for the RNZAF’s P-8A flight simulator.  In addition, CAE will develop a suite of P-8A Aircraft Equipment enhanced Desktop Environment (AeDTE) trainers, which will be used as role playing stations during training of P-8A aircrews.  The P-8A OFT and AeDTEs are scheduled for delivery to RNZAF Base Ohakea in 2023.

The CAE OneWorld virtual conference and tradeshow begins tomorrow and will feature a range of panel discussions, conference presentations, and product demonstrations on the latest digital innovations for military training and simulation.  CAE OneWorld 2021 is free to all attendees who register (https://www.caeoneworld2021.com/) and will remain online for one month.

“We are pleased to continue supporting Boeing on the development of training systems for the international customers acquiring the next-generation P-8 maritime patrol aircraft,” said Daniel Gelston, Group President, Defence & Security, CAE.  “We are a strategic partner to the New Zealand Defence Force due to the critical training services we provide across a range of platforms such as the T-6C, SH-2G, and NH90.  We look forward to the P-8 being added to the list of training systems that CAE has played a role in delivering to support the safety, training and readiness of Royal New Zealand Air Force aircrew.”

The P-8A OFT for the RNZAF will be similar to the P-8A OFTs that CAE and Boeing have already developed for the U.S. Navy, Royal Australian Air Force, Indian Navy, and Royal Air Force.  CAE designs and manufactures the P-8 OFT hardware to Level D standards, the highest qualification for flight simulators. CAE also provides the 737-800 OFT software baseline and simulation-based software lab environment that is used for the P-8 OFT development and integration tasks. CAE then delivers the simulators to Boeing, who designs, installs and integrates software specific to the P-8 aircraft.

CAE awarded subcontract from Lockheed Martin to build C-130J simulators for binational French/German C-130J squadron

Under subcontract to Lockheed Martin, CAE will design and manufacture a C-130J full-mission simulator for the binational French and German C-130J training facility.

CAE has been awarded a subcontract from Lockheed Martin to support the design, development and manufacture of a suite of C-130J training devices for the binational French and German C-130J training facility to be located at Evreux-Fauville Air Base in Normandy, France. 

Under terms of the subcontract, CAE will manufacture a C-130J full-mission simulator capable of reconfiguring between the C-130J-30 airlifter and KC-130J tanker aircraft.  CAE will also provide a C-130J fuselage trainer to be used for training loadmasters.  The training devices will be delivered in 2023, ahead of the planned opening of the new training facility where French and German aircrews and maintainers will begin training in 2024.

As the prime contractor, Lockheed Martin has overall responsibility for delivery of the training devices, the learning management system, courseware and options for five years of training services. 

“This award continues the longstanding relationship between Lockheed Martin and CAE on the design and development of training systems for all variants of the C-130J Super Hercules,” said Dan Gelston, Group President, Defence & Security, CAE.  “CAE is honored to support Lockheed Martin in welcoming both France and Germany to the long list of global operators who train their aircrew on CAE-built C-130J simulators and training devices.”

The French and German binational C-130J squadron consists of a combined 10 Super Hercules aircraft, including C-130J-30 airlifters and KC-130J tankers. France and Germany operate the fleet under a unique partnership where the countries share the aircraft, which are used for aerial refueling, air drop and cargo missions.

Lockheed Martin and CAE have designed and developed a range of C-130J training systems for global militaries, including all branches of the United States Air Force, the U.S. Marine Corps, Royal Air Force, Italian Air Force, Indian Air Force, Royal Australian Air Force, Kuwait Air Force and Royal Canadian Air Force. In addition, CAE built the C-130J/LM-100J full-mission simulator used at Lockheed Martin’s own Hercules Training Center (HTC) located in Marietta, Georgia.

CAE expands into crew management and optimization software with Merlot acquisition

  • Accelerates expansion into software-enabled civil aviation services
  • Strengthens CAE’s digital flight operations portfolio
  • Expands addressable market in airline crew operations and optimization software
  • Represents CAE’s third announced acquisition since November

Montreal, Quebec, Canada, December 22, 2020 (NYSE: CAE; TSX: CAE)

CAE announced today the acquisition of Merlot Aero Limited (Merlot), a leading civil aviation crew management and optimization software company for US$25 million, plus additional consideration of up to US$10 million in the form of an earn-out.  The acquisition marks CAE’s expansion into digital flight crew management and represents an important milestone in the Company’s goal to unify the digital flight operations ecosystem. 

The acquisition of Merlot’s industry-leading crew optimization software allows CAE to provide an end-to-end offering of digitally-enabled crew performance software and expertise that extends from training through optimized crew operations and is unrivaled in the industry.

“This acquisition further expands our reach beyond pilot training and into the rapidly growing market for digitally-enabled crew optimization services. As we demonstrated with our acquisitions of FSC, TRU Canada, and now Merlot, we are focused on deploying the capital we recently raised to strengthen our position and expand our suite of solutions for our aviation customers,” said Marc Parent, CAE President and CEO. “We are thrilled to integrate Merlot’s capabilities and expertise in crew optimization technology to serve global operators as they look for flight operations efficiencies.”Pioneering a digital flight operations ecosystem

Over the past two years, CAE has been steadily unifying the digital flight operations ecosystem with the goal of delivering a holistic suite of solutions designed to improve operations and enhance the crew experience. Our vision began in 2018 with the acquisition of Pelesys, an aviation training courseware developer and publisher, with one of the most comprehensive training and compliance systems in the industry, and was expanded with the launch of CAE RiseTM, the Company’s predictive management and training visibility system. 

In 2018, CAE announced a commitment to invest C$1 billion in digital transformation over 5 years and in 2019  launched a new Flight Services organization to facilitate the Company’s expansion into crew management to support the growth of the Company’s core pilot training market, while expanding into an attractive new adjacency.

The unprecedented disruption caused by COVID has only accelerated customer demand for these services and the acquisition of Merlot marks another milestone in CAE’s journey to pioneer the development of a digital flight operations ecosystem.

For more information about CAE’s digital crew management solutions, visit these pages.