AeroMechanical Services Ltd. TSX-V Trading Symbol "AMA"
A Tier 2 Industrial Issuer
CALGARY, March 26 /CNW/ - AeroMechanical Services Ltd. ("AMA") is pleased
to announce we have received an additional contract from the North American
carrier whose signed agreement was announced in the February 19, 2008 press
releases. The new agreement is to outfit nine additional aircraft with AMA's
patented afirs(TM) UpTime(TM) system. This contract is the third and final
contract previously announced in a press release dated November 14th, 2007.
The terms of the contract are as follows: the contract is for a 5-year
term whereby AMA will provide AMA's patented afirs(TM) UpTime(TM) solution on
nine aircraft (with the possibility to increase it as the size of the
carrier's fleet of aircraft increases). If AMA is able to install on both
aircraft and provide service for the full term of the agreement, the gross
revenues to AMA under this agreement would be approximately $ 949,500.
Initially, it is intended that installation on two aircraft would begin on or
about October 2008, a third installation begin on or about November 2008 and
the remaining will be scheduled for after November 2008.
AMA is in the process of acquiring the necessary Federal Aviation
Administration ("FAA") Supplement Type Certificate ("STC") approval to provide
the services to this customer. AMA anticipates receiving a FAA provisionary
installation approval prior to October 2008. Following the installation AMA
will be required to perform a test flight. Upon a successful test flight, AMA
anticipates receiving the complete STC approval on or about January 2009. The
following timeline is subject to change due to the FAA schedule.
This addition increases the total aircraft under contract with AMA to 699
from 29 carriers.
This disclosure as it relates to these agreements is subject to the
When a contract is initially signed, the intended number of aircraft,
pricing and potential installation schedules is agreed to by the parties. The
actual installation schedules as well as the number and types of aircraft are
often revised throughout the term of the agreement as the airline realigns its
fleet of aircraft with its business requirements. Delays in installations can
and do occur which can affect the total value of the contracts such that the
revenues noted above may not be fully achieved. Fulfillment of the contract
terms may also be affected if there are any changes to government statutes,
regulations or rules of the applicable governing bodies. The contract terms
and values disclosed herein are based on the original information available to
AMA upon execution of the contract and are subject to change. For the actual
revenue earned, please see AMA's financial statements including its revenue
recognition policy disclosed within the notes to the Audited Annual Financial
About AeroMechanical Services Ltd.
AeroMechanical Services Ltd. provides proprietary technological solutions
and services designed to reduce costs and improve efficiencies in the airline
industry. The company has successfully commercialized three products and
associated services currently marketed to airlines, manufacturers and
maintenance organizations around the world. Its premier technology, afirs(TM)
UpTime(TM), allows airlines to monitor and manage aircraft operations
anywhere, anytime, in real-time.
afirs, UpTime, FLYHT and aeroQ are Trade Marks of
AeroMechanical Services Ltd.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
For further information:
For further information: on AMS contact: Tom French, CGA, VP Finance &
CFO, AeroMechanical Services Ltd, (403) 291-7427, firstname.lastname@example.org; Bob
Beaty, The Howard Group Inc., Toll Free: 1-888-221-0915,