Monday, 6 April 2009

AMA Lands Another Middle East Airline Customer

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

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Much of the world is in the grips of a miserable recessionary flu.

But AeroMechanical found yet another customer in a region that isn't bedridden.

The Middle East.

The latest of three recently announced contracts in that region is to a Middle East carrier that has a mixed fleet of Boeing 767, 737 an Airbus A320 aircraft.

The contract could be worth up to $2.62 million over the length of the five-year deal.

The unidentified airline was interested in AMA's ability to quickly pinpoint where its aircraft are burning excessive fuel. In addition, the airline will benefit from the other capabilities of AMA's technology to better handle maintenance, scheduling and to communicate with its pilots where ever they are flying in the world.

On the flip side, employing AMA's technology also allows the airline to significantly cut its carbon footprint, given that a large passenger jet emits between 1,300-2,000 tonnes of CO2 per aircraft every year.

AMA's technology can help an airline reduce an aircraft's fuel burn by up to 5%. But assuming a more conservative 3% cutback, the airline could cut each of its aircraft's carbon footprint by 39 to 60 tonnes every year.

Using the same calculations, an airline with 100 aircraft could cut its carbon emissions by up to 6,000 tonnes, not to mention the millions of dollars in savings to its fuel bill and the avoidance of the new carbon tax announced by the EU last year.

AMA has made major strides with its new fuel program in helping airlines get a handle one of their largest expenditures.

As mentioned earlier, this is the third of three airline relatively recent contracts in the region.

Last November, AMA announced it signed a contract with a leading Canadian electronics provider which was modernizing a Middle Eastern military organization's fleet of Lockheed Martin C-130H Hercules aircraft.

Before the latter contract, a different Middle East airline installed AMA's technology.

To read the full news release on this latest business development, please click here.