Thursday, 13 June 2013

FLYHT - LOM Confirms China Aircraft Satcom Mandate

FLYHT Aerospace Solutions Ltd. 
TSX Venture: FLY  
Shares Issued: 140,386,166  
Fully Diluted: 179,132,626
In an update released to clients of Loewen, Ondaatje, McCutcheon (LOM) Ltd., Senior Technology Analyst Noel Atkinson confirmed that they have “independently obtained the CAAC (Civil Aviation Administration of China) implementation policy dated January 2013 that states 50% of Chinese commercial transport aircraft are to be equipped with a satcom unit by 2015 and 100% by the end of 2017.”

The report continued, “Perhaps a couple of hundred Chinese aircraft already have an Inmarsat satcom solution for FANS 1/A (Future Air Navigation Systems) compliance, but we believe at least 1,450 existing aircraft or new deliveries will need to install satcom units during the 2014-2015 period. Our forecast calls for FLYHT to capture only 13% of that opportunity, but we believe the Company could potentially far surpass our baseline estimate. We also expect a further 1,950 new or existing aircraft in China will need to install a satcom unit in the 2016-1017 period.”

LOM currently has a 1-year price target for FLYHT at $0.40.

To view the full report, please click here