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Wed, Oct 08, 2014

CAE, JAL Form Joint Venture

Will Provide Flight Crew Training Services Across Northeast Asia

CAE has signed a joint venture agreement (JV) with Japan Airlines (JAL) to provide flight crew training services across Northeast Asia, excluding China.

Once the training services agreement is signed on March 31, 2015, Japan Airlines will conduct all its training at the CAE-JAL Joint Venture starting in April 2015. This JV will also include training services for third-party customers currently training with CAE in Northeast Asia. The equally-owned JV will initially be comprised of JAL's existing training center located in Tokyo, Japan, as well as CAE's training centre in Northeast Asia.

"We are extremely honored to join forces with Japan Airlines, one of the longest-standing and largest airlines in the world, and to become their Partner of Choice in training," said Nick Leontidis, CAE Group President, Civil Simulation and Training. "The decision by JAL to conduct its pilot training through this partnership with CAE marks a major milestone for our company and underscores CAE's key differentiators in the marketplace. The JV leverages the strengths of our combined companies to provide best-in-class training solutions for a wide range of aircraft. CAE is dedicated to offering customers in the growing Northeast Asian market the most innovative training solutions to achieve the highest levels of safety and efficiency."

Subject to applicable regulatory approvals, the JV will start operations in April 2015. It will initially offer initial and recurrent training to JAL and third-party customers, with a total of 12 simulators. CAE and Japan Airlines have enjoyed a progressively more comprehensive relationship over the last three decades. JAL purchased its first full-flight simulator from CAE thirty years ago. Last year, CAE and JAL entered an agreement whereby JAL outsourced the responsibility for Ab-Initio pilot cadet training to CAE using CAE's Multi-Crew Pilot License training program.

FMI: www.cae.com

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