Singapore Airlines (SIA) and CAE (NYSE:CAE)(TSX:CAE) have signed a Memorandum of Understanding (MOU) to establish a joint venture for pilot training in Singapore. The joint venture will initially focus primarily on providing simulator training for Boeing aircraft types, supporting SIA Group airlines and other operators' pilot training needs in the region.
The equally-owned joint venture centre will operate out of the Singapore Airlines Training Centre (STC) located near Changi Airport. SIA will initially transfer four of its full-flight Boeing aircraft simulators to the venture, while additional CAE-built training equipment will be acquired progressively. The training facility will provide a full range of initial type rating and recurrent training programmes for Boeing 737 MAX, 747, 777 and 787 aircraft types.
"The long-term prospects for the aviation sector are positive, and we are confident that the new flight training joint venture with CAE will further enhance Singapore's position as a leading aviation hub. With the SIA Group expanding its fleet to drive additional growth, the joint venture will help keep pace with our own training requirements as well as those of other airlines in the region. This investment with CAE, one of the world's leading civil aviation training organisations, is also in line with our push to drive revenue-generation from new adjacent businesses. Together with CAE's expertise, we are positive that it will be a leading training facility for Boeing aircraft types in the Asia-Pacific region," said Singapore Airlines CEO, Mr. Goh Choon Phong.
"Building on our relationship of more than 40 years, we are extremely honoured to join forces with Singapore Airlines and welcome this opportunity to leverage the strengths of our combined organisations to support the growing pilot training needs in the Asia-Pacific region - one of the fastest growing markets in commercial aviation," said CAE's President and CEO, Mr. Marc Parent.
"This new joint venture will deliver best-in-class training, and will be an asset in supporting the growth of Singapore Airlines, one of the world's premier carriers. CAE is dedicated to offering customers the most innovative training solutions to achieve the highest levels of safety and efficiency."
The closing of the transaction is subject to execution of definitive transaction documents and customary closing conditions, including regulatory approvals. Subject to approvals, operations are expected to begin by the end of the year.