CAE to acquire Lockheed Martin flight training division

CAE-flight-simulator-Lockheed-Martin-Boeing-Airbus-aerospace-industry-Canada-EDIWeekly

CAE of Montreal has reached a conditional agreement to purchase US defence contractor Lockheed Martin’s Commercial Flight Training division. CAE did not disclose details of the transaction, saying only that the “relatively small, bolt-on acquisition” would allow it to expand its customer installed base of commercial flight simulators. CAE also obtains a number of “useful assets.” These include full-flight simulators, parts and equipment, facilities, technology and a “talented workforce.” The Lockheed division has full flight simulators for Boeing’s 737, 767, 777, and 787, as well as for Airbus A320, A330, and A340.

Lockheed Martin only recently got into the flight simulation market. This exit move is consistent, industry observers say, with its strategy of refocusing on its core aerospace and defence business.

CAE is the dominant player in the full flight simulator market, which, according to Flight Global, sees only forty to fifty transactions on average per year. CAE has accounted for about half of these, selling directly to airlines and third-party lessors, as well as to several joint-venture training centres. However, market research firm GrandView Research reported in May, 2015, that the market is expected to grow, with North America, particularly CAE, continuing to dominate. The market is highly concentrated and characterized by frequent mergers and acquisitions, GrandView says, listing Lockheed Martin as one of the key players, after CAE. Others include Rockwell Collins, Thales Training and Simulation, and L-3 Communications.

CAE reported revenue of $616.3 million for the quarter ended December 31, 2015, an increase of 10 per cent over the same period the previous year. Revenue for the first nine months of its current fiscal year was $1.7 billion, 11 per cent higher than in the previous year. The company has 160 sites and training locations around the world and boasts the world’s largest installed base of flight simulators.

Did you miss this?

Other Popular Stories

  • NASA Keeping an Eye on Tesla Roadster
  • Researchers fly first hybrid-electric aircraft with in-flight battery recharging
  • FirstEnergy of Calgary to host ninth London Global Energy Conference
  • Researchers claim potential improvement in solar cell efficiency
  • Natural Resource GDP increased 0.4%, led by Energy subsector at 0.7% — Statscan
  • Study on the Effects of Space on Humans Has Interesting Results
  • Plastics use in cars to nearly double in four years: report
  • GM investing $250 million at Ingersoll plant
  • Green building booming but Canadian companies lag in R&D
  • Ontario vs Canada: Ontario challenges the Federal Carbon Tax in court; a threat to manufacturing and jobs, they say
  • Consumer spending drives strong GDP growth in second quarter
  • Aerospace industry trade war? $2 billion at stake as Canadian Foreign Affairs Minister reviews Boeing sole sourcing
  • Ontario to invest $900 million in energy-saving retrofits in social housing, rental stock
  • Regina refinery will reuse all water with GE wastewater technology
  • Ford reveals C-MAX Solar Energi Concept car
  • Zero-emissions vehicle strategy by 2018 for Canada with major boost to zero emissions infrastructure
  • Engineers Design Self-Eating Rocket Engine for Launching Satellites into Orbit
  • Bombardier to build MRO facility in China
  • Ontario trade mission to Korea focused on nuclear industry
  • Five Seasons Ventures Invests in European Food and AgriTech
Scroll to Top