Monday, 8 September 2008

AeroMechanical Sees Order Size Jump From Large European Carrier

AeroMechanical Services Ltd.,
(TSX:V-AMA)

Basic Shares: 81 million

Fully Diluted: 93 million

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A large but unidentified European airline liked the first 10 installations of AeroMechanical's patented technology so much that its come back for more, 20 in fact.

Today's (Sept. 8th) AMA announcement was that the additional 20 afirs(TM) UpTime(TM) systems could reap $2.934 million over the life of the seven year contract if all installations proceed as planned. The expectation is that the contract for this latest batch of 20 and the earlier contract for 10 units will be extended to cover the life of the fleet, which can run up to 30 years.

The news that the full fleet for this low-cost carrier, which flies Airbus 320 aircraft, will be covered with AMA's technology comes at a most welcome time. Given the negative market sentiment created by the slump in many major economies around the world, plus the impact of high fuel costs on airlines, this type of news can assure the market that airlines are still looking past the current malaise and understand the benefits of AMA's technology.

It also shows this carrier has seen the fuel, maintenance and scheduling savings AMA's technology can bring when it matters most - in tough market conditions.

This will be a timely boost for AMA's sales teams as they continue to work around the world with other airlines and with aircraft manufacturers.

With these additional 20 installations, the total aircraft under contract to AMA now stands at 746 from 32 airlines.

To read the news release please click here.