AeroMechanical Services Ltd. (TSX.V:AMA) Signs Agreement With Large Scandinavian Airline
Press Release Source: AeroMechanical Services Ltd. On Wednesday July 28, 2010, 7:06 am
CALGARY, Alberta--(BUSINESS WIRE)--AeroMechanical Services Ltd. (TSX VENTURE: AMA - News) is pleased to announce it has signed a contract to install afirs™ UpTime™ on 34 turboprop aircraft, the entire fleet of a regional Scandinavian airline that is a subsidiary of an international aviation holding company. The operator has been in business for over seventy-five years and is one of the region’s largest carriers, with over 300 daily departures to national and international locations.
The contract includes real time flight following and cockpit voice services anywhere in the world, operational data reporting, aircraft exceedance reporting, with the option of adding AMA’s FLYHT Fuel Management System and FLYHTStream™ in the future without any additional airborne hardware. Dash 8 operators are able to take advantage of AMA’s full suite of solutions developed for this popular aircraft type.
The customer is eager to use AMA’s solutions to automate processes for increased operational awareness and accuracy. The airline’s goal with the afirs installation is to improve processes, thereby becoming more efficient and increase profits.
The terms of the contract are as follows: AMA will be providing its patented afirs UpTime on 34 aircraft over a 5-year term. Installations are scheduled to begin around August 31, 2010 and if AMA is able to install on all contracted aircraft and provide recurring service for the full term of the agreement, the gross revenue to AMA will be approximately USD $4,353,360, excluding optional services. AMA holds all the necessary certifications to provide services to this customer.
This disclosure as it relates to this agreement is subject to the following disclaimer:
When a contract is initially signed, the intended number of aircraft, pricing and potential installation schedules is agreed to by the parties. The actual installation schedules as well as the number and types of aircraft are often revised throughout the term of the agreement as the airline realigns its fleet of aircraft with its business requirements. Delays in installations can and do occur which can affect the total value of the contracts such that the revenues noted above may not be fully achieved. Fulfillment of the contract terms may also be affected if there are any changes to government statutes, regulations or rules of the applicable governing bodies. The contract terms and values disclosed herein are based on the original information available to AMA upon execution of the contract and are subject to change. For the actual revenue earned, please see AMA’s financial statements including its revenue recognition policy disclosed within the notes to the Audited Annual Financial Statements.
About AeroMechanical Services Ltd. www.amscanada.com
AeroMechanical Services Ltd. provides, under the brand name FLYHT, proprietary technological solutions and services designed to reduce costs and improve efficiencies in the airline industry. The company has successfully patented and commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world. Its premier technology, afirs UpTime, allows airlines to monitor and manage aircraft operations anywhere, anytime, in real-time.
afirs, UpTime, FLYHT, FLYHTStream and aeroQ are Trade Marks of AeroMechanical Services Ltd.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Contact:
AeroMechanical Services Ltd.
Tom French, CFO, 403-291-7427
tfrench@amscanada.com
or
The Howard Group Inc.
Bob Beaty, Toll Free: 1-888-221-0915
Info@howardgroupinc.com
www.howardgroupinc.com
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