Wednesday, 5 March 2008

China Could Lead AeroMechanical To The Holy Grail



(TSX:V - AMA)
Remember the old line that there is always a silver lining to every storm cloud?
AMA's March 5th Webcast took that one step further by providing a golden lining to the announcement that final approval for the China deal is rescheduled to June 30th.
No doubt investors will be disappointed to hear that the regulatory approval that would allow AMA's technology to be installed on a large percentage of China's vast civil aviation fleet - the approval investors were expecting last month - is now put over to the predicted date in the summer.
But the gold lining is that once that long sought-after regulatory approval is granted, the Webcast participants said China's civil aviation authority will send a formal request to Boeing and Airbus to install AMA's technology at the factory level on all new planes China orders.
That's what AMA CEO Bill Tempany said in summing up answers provided by executives from Skyblue, AMA's joint venture business partner in China.
"I think what you said," Mr. Tempany said to the Skyblue executives "is that as soon as (the) approval is done, there will be a formal request to put it (AMA's technology) on their production lines?"
The rest of the Webcast participants - Michael Fang, AMA's Vice President-China, and Skyblue's President and COO - agreed.
AMA has been trying for years to tap into the Holy Grail of the airline business by getting the large aircraft manufacturers to install AMA's blue box on the factory floor.
Then AMA wouldn't have to wait for individual airlines to bring their contracted aircraft in for the lengthy mandatory maintenance and safety checks that are required before its technology can be installed.
The only issues on the factory floor, will be plant schedules.
Mr. Fang, acting as translator for the Skyblue executives, added to the factory installation issue by stating that an "informal" request by China's civil aviation authority has already been sent to Boeing and Airbus to, "look at AMA's technology on their production (lines.)"
The factory installations came up during a lengthy question period that followed the Webcast.
The Chinese executives predicted that regulatory approval will come by June 30th, followed by first payments to AMA on July 15th.
To hear the entire Webcast and questions please dial either (416) 640-1917 or (877) 289-8525 and enter the passcode 21265096 followed by the pound sign.