April 6, 2020 | Local, Aerospace
CAE announced that it has taken a series of flexible measures to protect its financial position in response to the COVID-19 crisis and mitigate the impact on its employees. The measures include temporarily suspending its common share dividend and share repurchase plan, as well as temporarily laying off 2,600 of its 10,500 employees and placing another 900 employees on a reduced work week. CAE also announced that, in an effort to help save lives, it is developing an easy-to-manufacture ventilator which will provide life support to patients in intensive care.
“CAE continues to support its customers as the training services we provide are considered essential around the world. Our civil aviation operations are most affected by the unprecedented disruption of the global air transportation system. At the same time, our defence and security operations are less impacted because CAE provides mission critical services worldwide,” said Marc Parent, CAE's president and CEO. “We entered this crisis from a position of strength with a leading market position, a balanced business with recurring revenue streams, and a solid financial position. Taking decisive yet flexible action will help to protect our people and operations over the short-term and gives us the necessary agility to resume long-term growth when global air travel returns. Our employees have always been at the core of CAE's success, we regret the hardship these temporary measures will cause those affected, especially during these difficult times, and we are grateful to all our employees for their contribution and dedication.”
To mitigate the number of temporary layoffs, CAE significantly reduced capital expenditures and R&D investments. The company also announced cost-containment measures, including salary freezes and salary reductions for staff not affected by reduced work weeks (50 per cent for the CEO and executive team, 30 per cent for vice-presidents, 20 per cent for directors and managers, and 10 per cent for group leaders and employees).
CAE is working to access government emergency relief measures and wage subsidy programs in its main operating jurisdictions and will assess their impact on its mitigation plans. As details of government assistance programs around the world are finalized, CAE will do everything it can to recall as many employees as possible.
CAE's board of directors has approved the suspension of dividend payments to common shareholders until further notice and will review this position on a quarterly basis. Core to its capital allocation priorities, CAE remains committed to paying dividends over the long-term that are commensurate with the long-term growth of its business and will seek to resume dividend payments as soon as it is appropriate.
CAE's board of directors has also approved the temporary suspension of all share repurchases under its normal course issuer bid program.
In civil aviation, training is highly regulated, and for pilots to remain active and to continue to hold their certifications, they must train regularly — usually every six to nine months. While training activities related to new pilot training have decreased substantially, many airlines and business jet operators have continued to conduct recurrent training to maintain the certification of their existing pilots. Two-thirds of CAE's more than 50 civil training centres worldwide continue to be operational, however training utilization is lower than usual as a result of restrictions from border closures and lockdowns that have forced temporary closures and disruptions to operations.
In defence and security, as underscored by governments worldwide, CAE's work is considered essential, and its employees are deployed worldwide to actively support training and readiness requirements. Over 90 per cent of CAE's operational sites are still delivering services to support defence forces who must always be prepared and ready in the interest of national security.
To help in the fight against COVID-19, CAE Healthcare engineers and scientists have designed in 11 days a simple, maintainable, easy-to-manufacture ventilator prototype to provide life support to patients in intensive care. CAE is currently sourcing components in order to begin production of this ventilator as soon as it is approved by Health Canada.
“CAE has employees around the world, and we are all proud of the impact we can have by putting our expertise to work to create a ventilator that can help save lives in the fight against COVID-19,” said Parent. “Once this prototype is approved by public health authorities, we are looking at manufacturing thousands of units in our Montreal plant and in other sites over the next few months.”
CAE is also providing complimentary training seminars on how to prepare healthcare workers in the fight against COVID-19. The CAE team is launching simulation-based training solutions, both web and hardware based, to train personnel in the safe practice of ventilation and intubation, which is key to saving lives. This is even more critical right now when ventilation and intubation is being done by healthcare professionals who are not trained for these complex procedures.
https://www.skiesmag.com/press-releases/cae-to-implement-temporary-layoffs-amid-covid-19-pandemic
October 19, 2023 | Local, Land
Today, the Honourable Bill Blair, Minister of National Defence, and General Wayne Eyre, Chief of the Defence Staff, visited Garrison Petawawa where the first four new Armoured Combat Support Vehicles (ACSVs) were officially accepted by the Canadian Army.
August 10, 2024 | Local, Other Defence
News release 45-day consultation on economic security open until September 23 August 9, 2024 - Ottawa, Ontario - Global Affairs Canada Supply chain disruptions, rising protectionism and unfair trade practices can undermine Canada’s access to international trade markets, compromise our supply chains and harm our national security. They can also hurt Canadian competitiveness, jobs and economic prosperity. Canada is continuously looking to promote resiliency and a level playing field while ensuring its economy remains competitive and secure. Today, the Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, announced the launch of public consultations on potential new measures to advance and defend Canada’s economic security interests. The consultations, which will be held over 45 days from August 9, 2024 to September 23, 2024, will help assess whether Canada has the best tools to promote economic prosperity and resilience. As a trading nation, Canada’s prosperity relies on a system of rules and institutions that provides predictability and stability for international trade and investment. Canada remains firmly committed to supporting an open, fair and inclusive rules-based international trade system. To participate in these consultations, please read the privacy notice statement and send your written submission to the email address indicated on the consultations web page before September 23, 2024. Canada also launched on July 2, 2024, consultations on potential policy responses to unfair Chinese trade practices in electric vehicles (EV). This was a separate consultation led by the Department of Finance Canada. The consultations closed on August 1, 2024. Quotes “We are engaging with Canadians to ensure that our economy remains strong and secure in the face of policies and practices that can undermine our competitiveness and prosperity. We are seeking Canadians’ views on ways in which we can improve our economic security toolkit to advance Canada’s growth and defend its economic interests.” - Mary Ng, Minister of Export Promotion, International Trade and Economic Development Related products Public consultations on potential new measures to advance and defend Canada’s economic security interests Privacy notice: Public consultations on potential new measures to advance and defend Canada’s economic security interests https://www.canada.ca/en/global-affairs/news/2024/08/launch-of-public-consultations-on-potential-new-measures-to-advance-and-defend-canadas-economic-security-interests.html
May 8, 2019 | Local, Aerospace
DANIEL LEBLANC The American government is once again urging Canada to acquire U.S.-built fighter jets to replace its fleet of CF-18s, one day after it emerged the Pentagon recently threatened to pull the F-35 out of the $26-billion competition for new aircraft. The contradictory messages from the U.S. government showcase how the Americans are trying to prevent a tendering process that would favour European manufacturers at the expense of either the Lockheed Martin F-35 or the Boeing Super Hornet. The Canadian government is weeks away from launching a competition for 88 new fighter jets, with the two American firms set to enter into a competition against the Swedish Gripen and the Eurofighter Typhoon, which is built by a consortium that includes Airbus. In a statement on Tuesday, the American government called on Canada to make sure its fighter jets can operate alongside U.S. military aircraft around the world. The “crucial” point, according to the American government, is Canada's participation in the North American Aerospace Defence Command (NORAD) that controls the Canadian and American airspace. Only U.S.-built fighter jets currently operate in NORAD and European aircraft would face technological hurdles in gaining the ability to fully integrate into the bi-national military alliance. “We continue to believe in the importance of NATO and NORAD interoperability as a crucial component of Canada's acquisition of defence assets,” said Joseph Crook, a spokesman for the U.S. embassy in Ottawa. Mr. Crook added the American government remains “hopeful that U.S. firms are able to participate in open and transparent competition processes that can support Canada's NATO and NORAD obligations, especially when it comes to co-operative engagement capabilities.” On Monday, the Macdonald-Laurier Institute published letters from American officials who warned their Canadian counterparts last year that the F-35 might be pulled from the competition unless Canada's requirements for industrial benefits were modified. The American government is concerned about Canada's Industrial and Technological Benefits (ITB) policy, which requires the winner of the contract to invest the equivalent of the acquisition cost in Canada. Built by Lockheed Martin, the F-35 is a stealth aircraft developed by an international consortium of allied militaries under a program that specifically rejects the application of traditional industrial benefits. Canada has been a member of the program since 2006. In an interview after a cabinet meeting on Tuesday, Defence Minister Harjit Sajjan said he has sought to reassure the Americans by pointing out that the Canadian government will focus mostly on technical capabilities in deciding which aircraft to purchase. “First of all, the capabilities of the aircraft is the number one priority. Making sure we meet the needs of the Canadian Armed Forces – the Air Force in this particular case – is the number one priority. We will always make sure that will happen,” Mr. Sajjan said. He added that obtaining benefits for the Canadian economy is also important, while suggesting the matter will have less importance in the final weighting of the bids. “This obviously factors into the equation, but the capability requirements for the Canadian Armed Forces is always the number one priority,” he said. In a speech laying out his foreign-affairs policy on Tuesday, Conservative Leader Andrew Scheer said he will seek to modernize the NORAD alliance if his party forms the next government, including through the purchase of fighter jets that can defend North America alongside the U.S. fleet. “I will act to select a new fighter jet through an open competition and make sure the new jets are interoperable with our American allies,” Mr. Scheer said. Vice-Admiral Mathias Winter of the U.S. Navy said in a letter last December that Canada has received US$1.3-billion in economic benefits from its participation in the F-35 program to this point. “The F-35 supplier team will submit an F-35 offer only if (1) the ITB requirement is waived entirely and (2) there is no future ITB obligation arising from selecting the F-35,” Vice-Adm. Winter said in his letter. https://www.theglobeandmail.com/politics/article-us-government-urges-canada-to-acquire-american-fighter-jets-in-2/