TORONTO, Sept. 24 /CNW/ - Vector Aerospace Helicopter Services - Fleetlands (www.vectoraerospace.com) has been awarded an initial contract by Boeing to carry out major modification packages on UK MoD Chinook helicopters.
The work is part of the MoD's investment in Chinook helicopters to enable them to operate more effectively in Afghanistan and bring the entire fleet to a common configuration standard. Work will begin at Fleetlands before the end of this year.
The modification programme involves the integration of a new 'glass cockpit' into the Chinook aircraft which together with an engine upgrade and existing work to upgrade other onboard systems will provide an increase in the capability of the aircraft. The initial contract value is approximately $10M CDN and Vector is the preferred supplier for the remaining aircraft in the MoD fleet. Terms are agreed with Boeing for the first tranche of aircraft Contract award for the follow on aircraft is expected in 2010 with an estimated aggregate value of $40 to $50M CDN, over a multi-year term, for full fleet embodiment.
Vector UK Managing Director Tim Rice said, "This win is another significant milestone for our UK operations, which provide helicopter, component and engine services to a growing customer base. Our relationships with the platform manufacturers, MoD, and the Service customer are our number one priority and we believe this is playing a major role in our success to date."
Declan O'Shea, President and Chief Executive Officer of Vector, said: "We are delighted to deepen our long-term partnership with Boeing in the development of the Chinook European Centre of Excellence at our Fleetlands facility. Our primary objective continues to be the support of the MoD and the safety of its Service men and women."
Vector Aerospace Corporation is an independent provider of aviation repairs and overhaul services. Through facilities in Canada, the United States, the United Kingdom and Africa, Vector provides services to commercial and military customers for various types of gas turbine engines, components and helicopter airframes. It also provides information technology solutions to an international customer base. The Company has approximately 2,500 employees.
This news release contains certain information that may constitute forward looking information within the meaning of applicable securities laws. These statements are based on current expectation, related to the markets in which Vector operates, its financial condition and its general business. By their very nature, forward-looking statements involve inherent risks and uncertainties that the expectations will not be achieved. Indeed, the forward-looking statements herein, including, without limitation, anticipated future growth and earnings and licence term, may differ materially from actual results or events. While Vector considers the assumptions on which these statements are made to be reasonable, based on information currently available to it, they may prove to be incorrect and readers are cautioned, therefore, not to place undue reliance on these statements as a number of important factors could cause actual results to differ materially from those expressed in such forward-looking statements.
These factors include, without limitation, global and local political and economic factors and future demand for Vector's services. Readers should also refer to Vector's continuous disclosure materials filed with Canadian Securities Regulatory Authorities for additional information with respect to certain of these risk factors. A discussion of risk factors is contained in Vector's 2008 Annual Report which is available on Vector's website and on SEDAR. Readers should not place undue importance on forward looking information and should not rely upon this information as of any other date. While Vector may elect to, it is under no obligation and does not undertake to update or revise this information at any particular time, except as required by law.
SOURCE VECTOR AEROSPACE CORPORATION
For further information: For further information: Declan G. O'Sheam, President and CEO, Vector Aerospace Corporation, (416) 640-2121; Randal L. Levine, Senior Vice-President and Chief Financial Officer, Vector Aerospace Corporation, (416) 640-2120; www.vectoraerospace.com