Two contracts totalling revenues of approximately $26 million over
MONTREAL, Oct. 15 /CNW Telbec/ - Canadian Helicopters Income Fund (TSX: CHL.UN) announces Notices of Intent to Award Contracts from the United States Transportation Command ("USTRANSCOM") in respect of two of Canadian Helicopters' former contracts involving support of the North Warning System. Canadian Helicopters has been selected as the "successful offeror" with regard to the Rotary Wing Bulk Fuel and Supplemental Rotary Wing contracts, subject to customary U.S. government approval of operational funding for each fiscal year and conclusion of definitive contracts.
USTRANSCOM's decision was taken following a competitive bidding process pertaining to the services provided under each of the two contracts, in which Canadian Helicopters tendered proposals and actively participated. A total of four aircraft from the existing fleet of Canadian Helicopters will be used for the operations.
The Rotary Wing Bulk Fuel contract for the re-supply of fuel to the North Warning System radar sites represents revenues of approximately $18.1 million over five years, while the Supplemental Rotary Wing contract represents revenues of approximately $7.8 million to Canadian Helicopters over the same period, assuming all option periods are exercised and expected hours are flown.
The contracts are seasonal with various commencement dates in the spring and summer of 2010. The contracts are for a one-year base period with four one-year extensions at the option of USTRANSCOM, for a total of five years. They are denominated in Canadian dollars and comprised of hourly revenue components. A minimum number of hours per year are specified.
The prime contractor is the Canadian Commercial Corporation, Canada's international contracting agency, which focuses on government-to-government contracting and procurement.
"These agreements represent a continuation of our long term relationship with the U.S. military," said Don Wall, Senior Executive Vice-President of Canadian Helicopters Income Fund. "We are pleased with these notices to renew our supply contracts, which signify the ongoing confidence that USTRANSCOM has placed in the quality of our services and operations."
ABOUT CANADIAN HELICOPTERS INCOME FUND
Through Canadian Helicopters Limited, Canadian Helicopters Income Fund is the largest helicopter transportation services company operating in Canada and one of the largest in the world based on the size of its fleet. From over 40 base locations across Canada, Canadian Helicopters provides helicopter services to a broad range of sectors, including emergency medical services, infrastructure maintenance, military support, utilities, oil and gas, forestry, mining and construction. In addition to helicopter transportation services, Canadian Helicopters operates three flight schools and provides third party repair and maintenance services. With over 60 years of experience, Canadian Helicopters is an industry leader in establishing safety standards and operating procedures.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements relating to the future of the contractual relationship between Canadian Helicopters and the U.S. military and expected revenues from the contracts. Such forward-looking statements are subject to certain risks and uncertainties, and actual results or events may differ materially. Consequently, readers should not place any undue reliance on such forward-looking statements. The forward-looking statements relate to the date on which they were made. Canadian Helicopters disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise unless being required by applicable laws.
SOURCE HNZ Group Inc.
For further information: For further information: Canadian Helicopters Income Fund: Jean-Pierre Blais, President, (450) 452-3007; Don Wall, Senior Executive Vice-President, (780) 429-6919