Calgary, Alberta – April 5, 2012 — AeroMechanical Services Ltd. (TSX-V: AMA) (the “Company” or “AMA”) has signed a contract with a Canadian charter airline for the Automated Flight Information Reporting System (“AFIRSTM“) 228B on two Boeing 737-700 aircraft.
The airline operates Canadian domestic and international charter flights for a variety of organizations and groups.
“We welcome this operator as our ninth Canadian customer,” commented Matt Bradley, VP of Business Development at AMA. “Our customer base is made up of airlines from around the world, and we are always happy to support and provide services to a fellow Canadian.”
The airline will benefit from all of the AFIRS services in their operation. AFIRS will enable Out, Off, On and In times, real-time flight following and 24/7 connectivity between the aircraft and operations through the Iridium satellite communications system. Other optional services include engine trending, and airframe and engine exceedances. The AFIRS 228B is provisioned to integrate with other equipment on the aircraft and will provide a future ready capability for the operator.
AMA will provide equipment and services to the airline over a three-year contract. Installations are scheduled to begin in the second quarter of this year. If AMA completes installation on all contracted aircraft and provides recurring service for the full term of the agreement, gross revenue to AMA will be approximately $136,000 USD, excluding optional services. The installations will commence upon AMA receiving all necessary certifications for the Boeing 737-700 and no issues are anticipated for the completion of the certifications.
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 triggered 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.
AeroMechanical Services Ltd.
Thomas R. French, CGA
VP Finance and CFO
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