AeroMechanical Services Ltd.

AeroMechanical Services Ltd.

November 29, 2011 07:06 ET

AeroMechanical Services Signs New AFIRS 220 Contract in Nigeria

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2011) - AeroMechanical Services Ltd. (TSX VENTURE:AMA) (the "Company" or "AMA") has signed a contract with a Nigerian airline for the Automated Flight Information Reporting System ("AFIRS™") 220.

The contract requires AMA to install the AFIRS 220 on six Fokker 100 aircraft for a leading domestic operator in Nigeria. The airline runs many flight segments a day and will use AFIRS to automate data, gain operational data accuracy from its aircraft and increase operational efficiency. The customer will benefit from all AFIRS features, including automated Out, Off, On and In times, engine trending, airframe and engine exceedances, flight tracking and satellite voice communications.

The airline is another operator in Nigeria taking steps to follow the recommendations of Dr. Harold Demuren, Director General of the Nigerian Civil Aviation Authority ("NCAA"), to implement a flight tracking system to increase safety and improve airline operational efficiency.

"We are pleased to welcome another Nigerian customer," said Bill Tempany, CEO of AMA. "The Company has made strong headway in Nigeria in 2011, including selling AFIRS to two airlines and establishing two operations command centres. We plan to continue building relationships in this expanding market in the New Year."

AMA will provide equipment and services to the airline over a five year contract. Installations are scheduled to begin in the first quarter of 2012. If AMA completes installation on all contracted aircraft and provides recurring service for the full term of the agreement, gross revenue to AMA will be approximately $855,240 USD, excluding optional services. AMA holds all necessary certifications for the Fokker 100 aircraft.

This disclosure as it relates to this agreement is subject to the following disclaimer:

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. Fulfilment 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 Statements.

About AeroMechanical Services

AeroMechanical Services Ltd., under the brand name FLYHT™, provides proprietary technological products and services designed to reduce costs and improve efficiencies in the airline industry. The Company has patented and commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world. Its premier technology, AFIRS™ UpTime™, allows airlines to monitor and manage aircraft operations anywhere, anytime, in real-time. If an aircraft encounters an emergency, AMA's triggered data streaming mode, FLYHTStream™, automatically streams vital data, normally secured in the black box, to designated sites on the ground in real-time. The company has been publicly traded on the TSX Venture Exchange since 2003 under the trading symbol AMA.

AFIRS, UpTime, FLYHT, FLYHTStream and aeroQ are trademarks of AeroMechanical Services Ltd.

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Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Contact Information

  • AeroMechanical Services Ltd.
    Thomas R. French, CGA
    VP Finance and CFO

    Barnes Communications Inc.
    Colin Languedoc
    Senior Consultant
    416-367-5000 ext. 225