Tuesday, 9 February 2010

AeroMechanical Positioned For Passenger To Freighter Conversion Market

AeroMechanical Services Ltd. (TSX:V-AMA)
Basic Shares: 103.1 million
Fully Diluted: 117.6 million
Management, Directors, and Officers > 7.1%

AMA is on the verge of establishing a beachhead in the massive global push to convert passenger aircraft to freighters. This is based on today’s announcement that an agreement will be signed (subject to board ratification) with Netherlands based AerCap Holdings to install AMA’s bluebox (AFIRs) technology on an initial number of its aircraft under the Passenger to Freighter (P2F) program.

The news release did not provide details on the value of the agreement as it is still subject to ratification of the boards of each company and is to be completed before the end of March.
AMA’s equipment and services are for Airbus A320 and A321 aircraft.

AerCap is a NYSE (AER) listed company that, according to its website: “is an integrated global aviation company with a leading market position in aircraft and engine leasing, trading and parts sales. AerCap also provides aircraft management services and performs aircraft maintenance, repair and overhaul services and aircraft disassemblies. Our portfolio consists of 291 aircraft and 92 engines that are either owned, on order, under contract or letter of intent, or managed”. http://www.aercap.com/

In addition, AMA’s technology will be introduced to AirCap’s global customers.

AMA is currently developing its next generation AFIRs avionics technology that will ensure aircraft in the P2F program are compliant with new European Union requirements. The company’s objective is to have the upgraded AFIRs technology completed before year end.

To learn more about the P2F program that calls for the ultimate conversion of approximately 1300 aircraft: http://www.eads.com/1024/en/businet/aeronaut/efw/fields/freighter.html

To read the news release click here.