CAE and Leonardo Expand M-346 Integrated Training System

CAE Inc. and Leonardo S.p.A. announced an expanded collaboration agreement on July 22, 2026, at the Farnborough International Airshow to develop a next-generation technology roadmap for the M-346 Integrated Training System (ITS). The partnership will integrate Live, Virtual, and Constructive (LVC) environments to prepare military aviators for increasingly autonomous and artificial intelligence-enabled battlespaces.

The agreement builds on the existing joint operation of the International Flight Training School (IFTS) located in Decimomannu, Sardinia, Italy. According to the joint press release, the companies will focus on advancing the M-346 Block 20 system features and expanding Live Synthetic Integration (LSI) capabilities to meet evolving tactical training requirements for global air forces.

Advancing the M-346 Integrated Training System

The technology roadmap outlined by CAE and Leonardo targets the integration of advanced simulation with live flight operations. As military aviation shifts toward next-generation air operations, the training syllabus must adapt to environments where pilots manage complex, automated mission systems rather than focusing solely on aircraft handling.

Pascal Grenier, President of CAE Defense & Security, highlighted the operational focus of the expanded partnership in the company’s official statement.

“Our longstanding collaboration with Leonardo and the International Flight Training School (IFTS) stands as the premier example of combining highly sophisticated simulation technologies and live flight training to deliver world-class pilot instruction and operational readiness.”

Grenier added that future battlespaces will place unprecedented demands on pilots, requiring training environments that build judgment, adaptability, and decision-making skills. Stefano Bortoli, Managing Director of Leonardo Aeronautics, noted that the agreement will strengthen the development of highly skilled pilots for current and future operational requirements.

Expanding Global Footprint and Financial Context

The Farnborough announcement follows a series of recent international agreements involving the M-346 platform. On May 26, 2026, ITPS Canada ordered Leonardo M-346 T Block 20 advanced jet trainers. Subsequently, on July 21, 2026, Leonardo signed a procurement contract with PT ESystem Solutions and the Ministry of Defence of the Republic of Indonesia for M-346 F aircraft to fulfill Indonesian Air Force training and combat requirements.

Leonardo also utilized the Farnborough event to highlight its broader defense sector momentum. On July 22, 2026, the manufacturer signed a separate agreement with Lockheed Martin to strengthen maintenance, repair, and overhaul (MRO) services for the C-130J Super Hercules across Europe and the Middle East and North Africa regions.

The press release detailing the CAE partnership also provided an update on Leonardo’s financial standing. The company reported 2025 new orders totaling €23.8 billion, an order backlog of €46.6 billion, and consolidated revenues of €19.5 billion.

AirPro News analysis

We view this expanded CAE and Leonardo partnership as a necessary evolution in military flight training. As sixth-generation fighter programs and collaborative combat aircraft concepts mature, the cognitive load on pilots will shift heavily from basic airmanship to systems management and tactical battle management.

By embedding LVC and LSI technologies directly into the M-346 ITS roadmap, Leonardo and CAE are positioning the platform to remain relevant against emerging clean-sheet trainer designs. The recent string of international orders for both the trainer and fighter variants of the M-346 indicates that the airframe still has significant market runway, provided the synthetic training environment keeps pace with frontline combat systems.

Sources: Leonardo Press Release