CALGARY, Alberta--()--AeroMechanical Services Ltd. (TSX-V: AMA) (the "Company" or "AMA") has signed a contract with a French charter airline to install AMA’s next generation product, the Automated Flight Information Reporting System ("AFIRSTM") 228, including its first Aircraft Communications Addressing and Reporting System (“ACARS”) over Iridium implementation on the Boeing 737 aircraft.
“We are pleased to have a launch Boeing 737 customer for the AFIRS 228 system and our ACARS over Iridium solution”
The contract requires AMA to install AFIRS 228 on three Boeing 737-800 aircraft and to provide AFIRS Global Voice and ACARS over Iridium services. The established carrier uses the three contracted aircraft on many long-haul international routes to leisure destinations. The operator is interested in the Company's ACARS over Iridium solution, whereby the AFIRS 228 transfers data from the ACARS communications system via the Iridium Satellite network. The system has no gaps in coverage and it assures that all messages are delivered to the airline in real-time to maximize safety, and improve operations and maintenance. Additional services will be defined in the future, with associated recurring revenue.
"We are pleased to have a launch Boeing 737 customer for the AFIRS 228 system and our ACARS over Iridium solution," said Bill Tempany, Chairman and CEO of AMA. "We are in discussions with the client to provide additional services offered by the AFIRS equipment, which would see our revenue grow from this initial installation of AFIRS 228 hardware."
The agreement for AFIRS 228 equipment and telephone service is valued at approximately US$134,000, excluding optional services. The 228 Supplemental Type Certificates are in the final stages of completion and aircraft installations are scheduled to begin in the third quarter of 2011.
The Boeing 737 family is the most prolific and popular airliner in the world today, with over 6,000 in airline and special mission service and 2000 on order.
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. Fulfilment 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
AeroMechanical Services Ltd., under the brand name FLYHTTM, provides proprietary technological products and services designed to reduce costs and improve efficiencies in the airline industry. The Company has 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. If an aircraft encounters an emergency, AMA’s emergency data streaming mode, FLYHTStream™, automatically streams vital data, normally secured in the black box, to designated sites on the ground in real-time. The company has been publicly traded on the TSX Venture Exchange since 2003 under the trading symbol AMA.
AFIRS, UpTime, FLYHT, FLYHTStream and aeroQ are trademarks of AeroMechanical Services Ltd.
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