PAL Aerospace Signs C$750M RCAF CT-142Q Training Deal

On July 15, 2026, PAL Aerospace and SkyAlyne announced an approximately C$750 million agreement to modify and support the Royal Canadian Air Force (RCAF) CT-142Q Citadel fleet, securing a major component of Canada’s Military-Aircraft pilot training overhaul.

According to a press release issued by PAL Aerospace, the contract tasks the Exchange Income Corporation subsidiary with aircraft missionization, in-service support, and the delivery of Wings Standard training for Air Combat Systems Officers (ACSOs) and Airborne Electronic Sensor Operators (AES Ops). This agreement forms a critical segment of the 25-year Future Aircrew Training (FAcT) program, which the Government of Canada awarded to SkyAlyne in May 2024 to consolidate and modernize initial aircrew training.

Fleet modifications and training scope

Under the terms of the agreement, PAL Aerospace will perform extensive modifications to the RCAF CT-142Q Citadel aircraft. The CT-142Q is a specialized military variant of the De Havilland Dash 8-400 Multi-Sensor Aircraft Trainer. The fleet consists of three aircraft and is based at 402 Squadron in Winnipeg, Manitoba.

Beyond physical aircraft modifications, PAL Aerospace will take on the responsibility of providing frontline instruction. The company will deliver Wings Standard training to the next generation of RCAF ACSOs and AES Ops. The contract also includes long-term in-service support to maintain the operational readiness of the fleet throughout the FAcT program lifecycle.

“PAL Aerospace is proud to be joining SkyAlyne in delivering this nationally important program for the Royal Canadian Air Force,” said Simon Carroll, President of PAL Aerospace. “We are excited to be chosen to make these critical contributions to the success of FAcT and deeply appreciate the trust placed in our team to evolve and provide frontline instruction.”

SkyAlyne General Manager Kevin Lemke stated that PAL Aerospace’s expertise in modification and in-service support will be a critical factor in the success of the all-Canadian team delivering the FAcT program.

The Future Aircrew Training transition

The overarching FAcT program represents a fundamental shift in how the RCAF prepares its personnel. SkyAlyne, a joint venture between CAE and KF Aerospace, secured the 25-year Contracts to serve as the sole initial aircrew training system for the Canadian military.

The program is currently undergoing a multi-year transition phase. During this period, the Canadian government and its industry partners are consolidating several existing, disparate training frameworks into a single modernized system. The integration of PAL Aerospace into the SkyAlyne consortium secures the specialized sensor operator and combat systems training segments of the broader curriculum.

AirPro News analysis

We view the formalization of this C$750 million subcontract as a critical milestone in the FAcT program’s transition phase. By bringing PAL Aerospace into the SkyAlyne fold, the consortium secures domestic expertise in special-mission aircraft modifications and sensor operator Training. The decision to utilize the De Havilland Dash 8-400 platform for the CT-142Q Citadel role ensures commonality and leverages an established Canadian aerospace supply chain. As the RCAF moves toward a unified training architecture, the performance and reliability of these modified Dash 8-400 trainers will be a key metric in evaluating the overall success of the 25-year FAcT initiative.

Sources: PAL Aerospace