PAL Aerospace, a subsidiary of Exchange Income Corporation, has reached an agreement with SkyAlyne for a contract valued at approximately $750 Million to provide modification, in-service support, and training services for the Royal Canadian Air Force Future Aircrew Training (FAcT) program. The agreement is anticipated to be finalized over the next several months and will see PAL Aerospace deliver critical support for the RCAF CT-142Q Citadel fleet.

The Government of Canada awarded the FAcT contract to SkyAlyne, a joint venture between CAE and KF Aerospace, in late May 2024. This 25-year initiative is currently in a multi-year transition period to become the sole ab-initio aircrew training program for the RCAF, modernizing pilot and aircrew training for the next generation of aviators.

Under the agreement, PAL Aerospace will provide all aircraft modifications for the RCAF CT-142Q Citadel. The company will also deliver Wings Standard training to all Air Combat Systems Officers and Airborne Electronic Sensor Operators through the life of the contract, along with In-Service Support for the operation of the fleet.

"PAL Aerospace is proud to be joining SkyAlyne in delivering this nationally important program for the Royal Canadian Air Force," said Simon Carroll, President, PAL Aerospace. He emphasized that the responsibility reflects the strength of the team and their commitment to supporting Canada’s operational readiness.

SkyAlyne General Manager Kevin Lemke welcomed PAL Aerospace to the team, noting their proven expertise in modification, in-service support, and training will be vital for ensuring Canadian military pilots and aircrew receive the best possible training solutions for decades to come.

Exchange Income Corporation will discuss the agreement in greater detail during its second quarter results conference call on August 12, 2026.

Key Contract Details

Exchange Income Corporation subsidiary PAL Aerospace has secured a contract with Air Greenland to modify and configure two DHC-8-200 aircraft for Maritime Domain Awareness operations in Greenland. The agreement covers aircraft modification, configuration, integration, and related support activities tailored to Air Greenland’s operational requirements. This partnership aims to establish a modern capability operated from Greenland while developing local competencies and creating long-term value for the region.

PAL Aerospace will provide mission systems integration and related software capabilities as part of the aircraft missionization program. Drawing on its experience in special mission aviation, the solution will support the collection, coordination, and use of operational information in accordance with Air Greenland’s requirements. The program will be supported throughout its service life, including training, technical support, software support, future modifications, supply chain support, and scheduled maintenance activities.

Key Program Details

Executive Commentary

"Greenland’s mission is one we understand well," said Simon Carroll, President, PAL Aerospace. "Between our own northern operations and our jointly executed taskings in the North Sea with the Netherlands Coastguard, we’ve learned what it takes to find what you’re looking for in this part of the world. This program will deliver that capacity for Greenland."

"This partnership brings together Air Greenland’s decades of operational experience in the Arctic with PAL Aerospace’s long-standing expertise in special mission aircraft," said Jacob Nitter Sørensen, Chief Executive Officer, Air Greenland. "Together, we are establishing a modern capability that will be operated from Greenland, while developing local competencies and creating long-term value for Greenland and the Arctic. We look forward to working closely with PAL Aerospace to deliver this important programme."

Exchange Income Corporation is a diversified acquisition-oriented company focused on opportunities in the Aerospace & Aviation and Manufacturing segments. PAL Aerospace is a Canadian-owned and operated global aerospace and defence company specializing in intelligence, surveillance, and reconnaissance, in-service support solutions, aircraft engineering and modification, and crew resource management training.