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AeroMechanical Services Signs AFIRS 220 Contract with Nigerian Airline

By on September 14, 2011

AeroMechanical Services Ltd. has signed a $440,000 USD contract with a Nigerian airline for the Automated Flight Information Reporting System (“AFIRS(TM)”) 220.

The contract requires AMA to install the AFIRS 220 on a total of five Boeing 747 and 767 aircraft for a well established airline with over 30 years of operations in Nigeria, North Africa and the Middle East.

The airline is one of the first to implement the recommendations of Dr. Harold Demuren, Director General of the Nigerian Civil Aviation Authority, to implement a flight tracking system to increase safety and improve airline operational efficiency in the country. The airline will primarily use the AFIRS 220 for global flight tracking and satellite voice communications. AFIRS’ other functions including engine trending, airframe and engine exceedances, and Out, Off, On and In times are available to the customer at any time.

“We are pleased to see the continued interest in AFIRS from Nigerian airlines,” said Bill Tempany, Chairman and CEO of AMA. “AFIRS, in combination with the operations centres already established, will provide valuable information to aid in the airline’s operations. The addition of the 747 to our list of Supplemental Type Certificates is exciting because there are many 747 aircraft in service that we will work on installing AFIRS technology.”

AMA established its first operation command centre in Nigeria in April 2011, and opened a second as announced on August 15, 2011. The facilities provide real-time weather and flight tracking information to Nigerian airlines.

AMA will provide equipment and services to the airline over a five year contract. All installations are scheduled to be completed in October and November of 2011. 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 $440,000 USD, excluding optional services. AMA holds all necessary certifications for the Boeing 767 and has commenced the approval process for the Boeing 747.

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.