CAE Boosts Stake In Simcom Joint Venture

CAE announced on Nov. 4 that it will spend $230 million to raise its ownership stake in the Simcom Aviation Training joint venture.

The Canadian company expects the investment to be accretive to earnings and free cash flow in the first full-year post transaction.

Private jet company Flexjet will retain a minority stake in Simcom as part of the transaction, while CAE and Simcom will both extend their respective exclusive business aviation training services agreement with Flexjet and its affiliates by five years.

Simcom operates four training centers in the U.S., the newest of which is in Lake Nona, Florida.

The transaction is expected to strengthen CAE’s presence in its core business aviation training market, while increasing its footprint in the fast-growing fractional jet and charter aviation market. North American fractional operators recorded a 12.4% annual gain in flight activity from January to June, according to Ohio-based aviation consultancy Argus International.

Alexandre Prévost, CAE’s division president of business aviation, said that the company is pleased to extend its long-running partnership with Flexjet, “one of the leading and fastest-growing private jet companies.” In August, the UK’s City A.M. reported that the London-based division of Flexjet, which operates in the fractional ownership market, posted a turnover of £40.9 million ($53.3 million) for 2023, up from £38.4 million a year earlier.