CAE sells equity stake in ZFTC joint venture with China Southern Airlines
CAE and China Southern Airlines have concluded a sale and purchase agreement which involves China Southern Airlines acquiring CAE's 49% equity stake in the jointly-held Zhuhai Flight Training Centre, or ZFTC, for $96M, excluding post closing adjustments. As part of the transaction, both companies have reached an agreement on the outsourcing to CAE of the third-party training excess capacity conducted at China Southern Airlines' ZFTC facility. This also allows CAE greater flexibility to address the broader aviation training market in China. China Southern Airlines will concentrate internally on its own training and will continue to look to CAE as its partner for services and support of its simulation needs.