CAE says it has secured a $300-million deal to keep training U.S. Air Force crews on the C-130 Hercules through 2035, even as a new U.S. procurement order targets Canadian companies.
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Montreal-based CAE says it has won a $300-million contract to continue training U.S. Air Force crews on the C-130 Hercules military transport aircraft, extending a role the company says it has held since 2018.
The company said the agreement is being granted to its American defence division and continues CAE’s work as the main contractor responsible for training U.S. aircrews on the aircraft, with an emphasis on instruction for multiple crew roles.
CAE said training for pilots, flight engineers and navigators will be conducted at U.S. Air Force bases across several states. The company listed Little Rock, Arkansas, as one location, along with Georgia, Wyoming, Minnesota and Missouri.
Under the contract, CAE said the training work is scheduled to run through 2035, outlining a long-term commitment tied to the Air Force’s ongoing readiness and aircraft operations.
The announcement comes after a U.S. policy move by President Donald Trump that, CAE says, bans Canadian companies from federal government procurement. The timing places the company’s award against the backdrop of heightened trade tensions between Canada and the United States.
CAE said the Sept. 16 presidential decree bars federal government procurement of Canadian items. However, the company said it remains unclear whether the order would apply to services specifically, rather than goods, or whether Canadian firms that operate through U.S. subsidiaries would be covered by the restriction.
The company’s statement suggested the scope of the procurement ban is a key point for understanding how the contract was able to proceed despite the stated Canadian procurement restrictions.
The announcement also landed as trade negotiations between Canada and the United States reportedly broke down last month, setting the stage for further escalation described as part of an ongoing trade war.
For Canadian readers, the contract is notable because it signals that at least one major defence-services provider tied to Canadian operations may still be able to secure U.S. federal work, depending on how procurement rules are interpreted and enforced.
In practical terms for the Canadian aviation and defence sector, CAE’s ability to maintain a training pipeline through 2035 could affect how companies plan cross-border corporate structures and bid strategies during periods when government purchasing rules shift.
The situation also underscores how policy changes can create uncertainty for suppliers on both sides of the border, particularly when it is not immediately clear whether restrictions reach the service contracts that support aircraft training and readiness.
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