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Aerospace

L-3 acquires CTC Aviation Group

L-3 Communications has acquired UK-headquartered CTC Aviation Group - now known as L-3 CTC Ltd - for £143 million ($220m).

Above: The CTC Group Administration Centre and Crew Training Centre, Nursling, Southampton.

L-3 CTC is a high-quality, global airline pilot training and crew resourcing specialist that offers customised and innovative solutions to major airlines and retail customers globally. This acquisition expands L-3’s Commercial Aviation Training business, which also includes L-3 Link UK, a provider of world-class flight training simulation devices, aftermarket solutions and training, to encompass a growing portfolio of airline and third-party training company customers.

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Above: CTC Aviation instructor and trainee.

“This acquisition is a very good fit with our strategy of expanding our international and commercial presence by focusing on higher-margin businesses with number one or two positions in the markets we serve,” said Michael T. Strianese, L-3’s chairman, president and chief executive officer. “L-3 CTC has a worldwide reputation for excellence and strengthens our Link Simulation & Training and Link UK businesses with value-added synergies for total training solutions across a wide range of military and commercial platforms. This addition will solidify L-3’s position as a global leader in commercial flight simulation and training, while delivering value to our customers and shareholders.”

CTC Aviation - now L-3 CTC Ltd - and L-3 Link UK, will retain their individual brands and strengths as independent operational entities, while continuing to focus on and serve their existing customers and markets.

CTC Aviation recently secured an exclusive agreement with its long-standing partner airline, British Airways, to deliver Airbus A320 training for both newly-qualified and experienced pilots. This is the first time that the UK flag carrier airline has committed to an exclusive partnership with an independent training provider. The company has centres in the UK (Bournemouth,  Dibden Manor and Southampton), New Zealand and the US.

Other recent deals for CTC have included Virgin Atlantic and a new sponsored training initiative with its longest and most established customer airline EasyJet, to offer the UK’s first airline-supported degree for airline pilots in partnership with Middlesex University.

L-3 expects that the synergistic collaboration of these two businesses will enable new and innovative approaches to vertically integrated training, resourcing and simulation solutions - including airline pilot training, graduate placement services and flight simulation equipment -  with the business spanning all customer requirements, to deliver innovative capabilities, value and a strong emphasis on customer service.

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Of particular significance will be the further expansion of airline relationships for ab initio graduate placement opportunities, coupled with further investment in latest-generation training devices for the delivery of future airline pilot training.

“We are really excited about this next chapter in CTC Aviation’s global growth. Our two organisations share the same ‘committed to excellence’ culture and exacting focus on the customer. I am looking forward to what the future holds for our companies, our staff and – most importantly - our customers,” said Rob Clarke (right), President of CTC Aviation. “We are now in a position to be able to bring our tailored, solutions-based approach to an even wider global market – our Partner airlines and our individual retail customers.”

“Driven by a focus on the customer, quality, service and safety, this new partnership of world-class training devices and training delivery places L-3 Link UK and L-3 CTC in the unique position to provide customers with totally scalable training solutions whatever their requirements,” said Alan Crawford, managing director of L-3 Link UK. “This acquisition also enables L-3 to build on strategic partnerships with key growth airlines in an environment where a global shortage of pilot training resources and increased pilot demand are driving the growing need for tailored pilot training solutions. We look forward to working very closely with L-3 CTC to bring to our customers the unique propositions that can only be delivered by a customer-focused training and resourcing solutions company.”

L-3 CTC will be integrated into the Precision Engagement & Training sector, which is part of L-3’s Electronic Systems segment.

Headquartered in New York City, L-3 employs approximately 45,000 people worldwide and is a prime contractor in aerospace systems and national security solutions. L-3 is also a leading provider of a broad range of communication and electronic systems and products used on military and commercial platforms. The company reported 2014 sales of $12.1 billion.

 

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