The big picture: Exchange Income Corp.’s PAL Aerospace has struck a deal with SkyAlyne to take on a major chunk of the RCAF’s 25-year pilot and aircrew training program.

Driving the news: PAL Aerospace and SkyAlyne have jointly agreed to enter into a contract worth roughly $750 million, covering aircraft modification, in-service support and training under the Future Aircrew Training (FAcT) program. Finalization is expected over the next several months.

Catch up quick: The Government of Canada awarded the FAcT contract to SkyAlyne, a joint venture between CAE and KF Aerospace, in late May 2024. It’s a 25-year initiative transitioning to become the RCAF’s sole ab-initio aircrew training program.

By the numbers:

  • $750 million — value of PAL Aerospace’s portion of the contract
  • 25 years — length of the FAcT program
  • 2 — aircrew roles trained under the deal: Air Combat Systems Officers and Airborne Electronic Sensor Operators

What PAL Aerospace is doing:

  • Modifying all RCAF CT-142Q Citadel aircraft
  • Delivering Wings Standard training to Air Combat Systems Officers and Airborne Electronic Sensor Operators for the life of the contract
  • Providing in-service support for the fleet

What they’re saying:

Simon Carroll, PAL Aerospace president: “PAL Aerospace is proud to be joining SkyAlyne in delivering this nationally important program for the Royal Canadian Air Force. We are excited to be chosen to make these critical contributions to the success of FAcT and deeply appreciate the trust placed in our team to evolve and provide frontline instruction to the next generation of Canadian Air Combat Systems Officers and Airborne Electronic Sensor Operators. This responsibility reflects the strength of our people, the depth of our experience, and our shared commitment to supporting Canada’s operational readiness.”

Kevin Lemke, SkyAlyne general manager: “SkyAlyne is incredibly proud of the all-Canadian team that has come together to deliver the Future Aircrew Training program. We are excited to welcome PAL Aerospace more formally into that team. Their proven expertise in modification, in-service support and training will be an important part of ensuring Canada’s military pilots and aircrew have access to the best possible training solutions, today and for decades to come.”

What’s next: PAL Aerospace will work with SkyAlyne to shift toward initial operating capabilities, aiming for a smooth transition while preserving RCAF operational readiness.

Bottom line: A Canadian aerospace player just secured a nine-figure, multi-decade foothold in the country’s next-generation pilot training pipeline.