Wednesday, 31 March 2010

AeroMechanical Scores One Two Punch in Nigeria

AeroMechanical Services Ltd.
(TSX:V-AMA)
Basic Shares: 103.6 million
Fully Diluted: 115.4 million
Management, Directors, and Officers > 6.2%

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The ink was barely dry on the March 30th announcement that AeroMechanical (AMA) was chosen to build a flight operations centre in the Nigerian city of Lagos when it was announced that a Nigerian airline signed up to install AeroMechanical’s blue box technology on board its entire fleet.

The five-year contract with the unidentified airline – that could result in $2.5 million in gross revenues - was announced March 31st, the day after the flight operations centre news release was issued.

In the previous March 30th news release about the flight operations centre, AMA said all Nigerian-registered civil aircraft will be ordered to install equipment like AMA’s blue box so the newly-built operations centre can identify the aircraft flying through its airspace and that aircraft’s location, direction and speed.

As a result of that requirement, AMA stated that it hoped a number of Nigerian airlines would come knocking on its Calgary doors in order to comply with the Nigerian directive.

So to be able to announce a one /two business punch – first a contract to build a flight operations centre and then an airline ordering the technology needed to digitally speak to the operations centre - is a coup for any business.

The Nigerian airline will be using AMA’s technology not only to be identified by the operations centre but also to monitor the physical health of thousands of critical components on each of its aircraft in near real time.

The airline will also be able to watch where its fleet of aircraft are flying in Nigeria and around the world and communicate with its pilots anywhere and at any time.

It will also have the option of using AMA’s technology to monitor fuel useage on each aircraft.
And the airline will – with the flick of a switch – be able to add AMA’s ability to turn a black box live.

By that I mean the millions of bits of critical information flowing into a black box about an aircraft’s functions can be broadcast back to earth in near real time when that aircraft experiences a major malfunction.

So instead of having all that vital information just being recorded in the black box for later retrieval and inspection by air accident investigators, those same investigators can examine the data broadcast to earth stations to perhaps determine why the aircraft crashed without having to retrieve the on-board black box.

To view the full news release on the Nigerian airline contract, please click here.