Tuesday, 25 November 2008

AeroMechanical Wins Its First Hercules Contract

AeroMechanical Services Ltd., (TSX:V-AMA)
Basic Shares: 82.5 million
Fully Diluted: 88 million


AeroMechanical flew into brand new skies with the Nov. 25th announcement it is now supplying an unidentified Middle Eastern air force with its breakthrough technology.
Working through a Canadian electronics provider, AeroMechanical's blueboxes, or afirs ™ UpTime ™ system, will be placed on the air force’s C-130 Hercules under a three-year contract worth $1.3 million.

The contract also stipulates AMA can supply more blueboxes as the air force’s fleet expands. First generation Hercules are now roughly 35 years old and there is a major push on around the world - ahead of tougher international air traffic regulations - to upgrade them with modern avionics packages.

AMA hopes to springboard off this contract into other Hercules fleets.

Installing AMA’s patented technology allows users to track their aircraft on a second-by-second basis whether the aircraft is flying – or sitting at a distant airport.

It also allows the aircraft owner to talk to their pilots, no matter where the aircraft is flying.

The technology also monitors hundreds of aircraft functions and alerts the airline or air force instantly if there is an onboard problem.

Knowing where the aircraft is at all times and knowing what problems it might be in gives aircraft operators a huge edge in scheduling, maintenance and safety.

But if it is a military Hercules, AMA’s technology won’t help when missiles and bullets are hitting the aircraft.

According to international statistics, 11 of the first 233 Hercules built were shot down in war zones.

At the same time, though, 19 of those original behemoths are sitting comfortably in a museum while the remainder are still at work in the skies.

Of the 2,324 Hercules accounted for around the world, 43 were shot down and 41 ended up in museums.

Another interesting fact about these giant workhorses is many operators expect to keep flying them for 50 years, compared to the average useful life of 30 years for many passenger jets.

To view the entire news release, please click here.