CAE buys out AirAsia’s stake in joint venture

PILOT TRAINING

investments” on a regular basis.

“This stake sale is just part of our long-term plan to monetize all our assets. We are also working on several other divestments of valuable assets including our leasing arm, which is imminent.”

AirAsia, a low-cost carrier that launched in 2001 in Malaysia and services a network 120 destinations, also extended existing training contracts with CAE through to 2036.

CAE has joint-venture training centres located around the world. Earlier this month, CAE signed a memorandum of understanding with Singapore Airlines to establish a joint venture for pilot training in Singapore.

According to a report released in June by CAE, about 255,000 pilots must enter the global commercial aviation profession in the next 10 years in order to meet growing passenger demand and replace retiring pilots.

Asia’s surging middle class in particular has provided CAE with a thriving market for its aviation training technology. The AsiaPacific region, where a growing middle class has helped boost demand for low-cost air travel, is expected to see the strongest increase in pilot demand as it remains the fastest growing for air travel, according to CAE’s report.

CAE reported a slight decline in its first-quarter results earlier this month, with net earnings coming in at $64.4 million, or 24 cents per share, compared with $69.3 million, or 26 cents per share, a year earlier. Revenues also decreased from $696.9 million to $651.6 million.