The federal government is contributing $250 million to Montreal aerospace company CAE.
The money will go toward 'Project Innovate’, CAE's latest research and development program.
The initiative aims to develop new flight simulation software and update existing simulation technologies for civil and military aircraft.
“This new technology will have a wide-ranging impact, from advancing military training capabilities to prolonging the lifespan of aircrafts, all while reducing carbon and noise emissions in the process,” said federal infrastructure minister Denis Lebel, who made the announcement at CAE headquarters in St. Laurent Thursday.
The $250 million is a repayable investment being made through the federal government's "Strategic Aerospace and Defence Initiative".
Lebel said Ottawa wants to ensure Canada remains a world leader in the aerospace industry, in the face of growing competition from other markets.
"That's very expensive to invest in research and for us it's important to keep Canada well-represented all around the world with this competition, which is very very strong for the moment," he said.
The company's chief financial officer couldn't guarantee the injection of federal cash will create new jobs, noting job creation will depend on the market and the number of simulators the company will be able to sell.
The five-and-a-half year project will have a total cost of just over $700 million.
