CALGARY – AeroMechanical Services Ltd. has signed a US$6-million agreement with business jet operator NetJets Europe to provide upgraded automated flight information reporting systems for 30 aircraft.
The Calgary-based flight technology firm said it will install its AFIRS system on Hawker Beechcraft aircraft as part of the five-year contract.
The systems reduce fuel consumption and will help NetJets, the largest business jet operator in Europe, to meet its goal of reducing emissions.
AFIRS provides real-time data from the aircraft fleet, enhanced flight data monitoring and fuel management. Its FLYHStream position and data streaming provides enhanced troubleshooting and emergency management.
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“NetJets Europe is the European leader in business aviation and we are proud to have met their standards and expectations through our collaborative in-service evaluation,” said AMA chief executive Bill Tempany.
System installations will begin in April and be activated upon receipt of all necessary certifications.
AMA (TSXV:AMA) will initially receive US$1 million to US$2 million over the first few months of the contract and payments for recurring revenue services as incurred.
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The total value of the contract does not include optional upgrades and services, the company said.
The total contract could exceed US$6 million but NetJets has asked that the exact value not be disclosed.
AMA and NetJets Europe have conducted an in-service evaluation of the company’s various services since September 2009, AMA’s first business jet installation.
The updated AFIRS system that will be installed will provide compliance with Europe’s new air traffic control regulations set to come into force in February 2015.
NetJets Europe, financially backed by Warren Buffett’s Berkshire Hathaway, operates 150 aircraft.
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