Thursday, 19 February 2009

AMA Moves Ahead In China And With Old Customer

AeroMechanical Services Ltd. (TSX:V-AMA)
Basic Shares: 82.5 million
Fully Diluted: 88 million
One of China's major airlines gave two thumbs up on the performance of two AeroMechanical (AFIRs) blue boxes it installed, while another old customer outside China liked its blue boxes so much, it ordered two more.

The developments in China were detailed in a February 19th news release that was simultaneously issued out of the Chinese city of Shanghai and Calgary.

Shanghai Airlines (SAL) reported it installed and tested two AMA blue boxes in two Boeing 767 aircraft that are part of SAL's extensive fleet.

This now gives SAL the ability to talk to their pilots no matter where those pilots are flying - at any spot around the globe.

Mr. Xie Jin Yi, Director of the Operations Control Centre (OCC) representing the Shanghai OCC dispatchers said:

"This is a valuable improvement in our operational control and flight watch capabilities."

The installations come under the umbrella of a 2006 contract that calls on AMA to install its breakthrough technology on up to 515 Chinese aircraft.

If all the installations occur under the full contract terms, AMA's gross revenue would be roughly $35 million by the end of 2010 and $15 million per year thereafter for the remainder of the contract term.

In another development, China's Civil Aviation Authority completed its review of the Verified Supplemental Type Certificates. That review now clears the way for AMA's blue boxes to be installed on Chinese-registered, Boeing 757 aircraft.

Outside China, a current and unidentified AMA customer, ordered two more AMA blueboxes to be installed on two new aircraft it just purchased.

This customer flies for the United Nations in Africa and the total value of this extended contract to cover the additional aircraft could be in excess of $200 thousand.

To read the full news release, please click here.