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

  • Final testing of Bombardier's C Series to begin
  • Fracking study finds methane emissions lower than EPA estimates
  • Scientists Use Machine Learning to Automate Atomic-Scale Manufacturing
  • Engineers Canada calls for more women to enter profession
  • Manufacturing continues to grow but exports decline, increasing Canada's trade deficit in February
  • Toronto company seeking to market energy storage system
  • Steel producers, clean tech, IT see reason to support the federal budget
  • Volkswagen hit with $14.7 billion in fines, compensation over emissions scandal
  • TransCanada will use railroads if Keystone pipeline not approved
  • Moon Race 2: Nasa plans moon lander for 2024; Orion Spacecraft already complete
  • Bombardier to hit business jet targets: aiming for US$8.5 billion annually by 2020
  • Breakthrough vehicles that dare to change the auto industry: 1300 hp EVs and 300 km ranges
  • Study on the Effects of Space on Humans Has Interesting Results
  • BC sees 100,000 LNG jobs, $1 trillion in revenues
  • Enbridge pipeline reversal approved by National Energy Board
  • CFB Goose Bay awards $100 million service contract to Serco
  • Largest biomass power plant in NA set to open in Atikokan
  • Little support in auto industry for Canada/Korea free trade deal
  • 200 days in lockup: Four volunteers live in simulated moon lab in preparation for future moon mission
  • Toronto an ideal location for Amazon HQ 2: If Amazon needs to hire tech employees, GTA and Canada has the edge
Scroll to Top