The Globe and Mail reports in its Tuesday, May 12, edition that CAE is exploring a potential sale or other options for its Flightscape aviation software business.
The Globe's Nicolas Van Praet writes that CAE said Monday the move is aimed at positioning Flightscape for its next phase of growth while it refocuses on the company's core capabilities. Options for the business include a sale, strategic partnerships or outside investments.
Flightscape is "a strong, differentiated business that may be better positioned for its next chapter through alternative ownership or partnership structures," said CAE chief executive officer Matthew Bromberg.
He is working to boost profits and cash flows after a 15-year expansion left CAE on solid footing but unable to generate high returns from some of its assets. Shareholder Browning West says Mr. Bromberg should be able to double the company's earnings per share over the next three to four years.
Mr. Bromberg announced a transformation plan last fall focused on reducing spending and streamlining operations. In February, he revealed that CAE had identified non-core businesses accounting for about 8 per cent of total revenue for potential divestment.
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