Tuesday, 26 August 2008

China's Great Wall Opened to AeroMechanical

AeroMechanical Services Ltd., (TSX:V-AMA)
Basic Shares: 81 million
Fully Diluted: 93 million

It’s here.

The first order from China for the 515 aircraft under contract to install AeroMechanical’s (AMA) communications and monitoring technology arrived.

AMA announced Aug. 27th that its Chinese customer, Sky Blue Technology Development Co., issued a purchase order for two of AMA’s afirs(TM) UpTime(TM) systems (nicknamed, blueboxes) to be fitted on to two Boeing 767 passenger jets.
Skyblue, which covers regulatory approval and the sale and distribution of AMA’s products to Chinese airlines, also stated it expects the number of blueboxes required will increase throughout this last half of the year.

AMA had expected this first order to come through last month but some Chinese officials asked its airlines to delay any changes in their communications devices while the Olympics were on from Aug. 8th to Aug. 24th.

If AMA is able to install its blueboxes on all 515 aircraft under the full term of the contract, gross revenues would be about $35 million to the end of 2010 and $15 million per year thereafter until the multi-year contract ends.
The contract runs for eight years from 2006 and is renewable in eight-year increments. It is anticipated that this will be renewed as it is a key component to the air traffic control programs that China is working on rolling out.
To read the entire press release, please click here.