Wednesday, 5 December 2007

AeroMechanical's Big Bird Lands In China

AeroMechanical Services (AMA - TSX V)

AeroMechanical CEO Bill Tempany has been in a holding pattern over China trying to land his business in that booming economy for at least a couple of years.

Well, the Chinese company AMA has been working with to install AeroMechanical's (AMA) tracking, sensoring and communication technology on board China's civil airline fleet finally gave him permission to land.

The breakthrough came in the form of 10 purchase orders to install AMA's patented solutions on new generation 737 passenger jets.

But with those purchase orders in hand, Mr. Tempany still has his gaze firmly set on the bigger opportunity - China's entire fleet of 1,100 commercial aircraft.

There is one point to remember. Chinese regulatory authorities still have to clear a satellite frequency AMA requires for its technology, which gives airlines a real-time view of how each of their aircraft is operating anywhere on the globe.

But the Chinese company actually handling the sales and coordinating installations was so confident that approval was imminent, it issued the purchase orders so the technology would be in China and ready to roll out the second regulatory approval is granted.

The market obviously likes the news as in the first hour more than 1.3 million shares traded hands with the stock moving from the $0.50 to $0.60 range.

To read the full press release please click here.