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AeroMechanical > Message
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Re: What's up with the share price?

Posted by: hedzupp on April 24, 2008 09:58PM

In response to: Re: What's up with the shar... by cheapseats

So, is Air China a client of AMS? Possibly you know better than I. I've never seen any reference to them in AMA's press releases, but that's part of the dilemma, no one seems to know who the other Chinese clients are.

For what it's worth, I understand that the Air China/China Eastern connection was squelched by China Eastern. China Eastern is, however, still looking for a strategic partnership with Singapore Airlines in order to improve its financial and management position. They originally had an offer from Singapore last year but China Eastern's minority shareholders rejected it. I think they're still hoping for a better financial offer from Singapore. CE has been a chronic money bleeder until 2007 when they finally got into the black, and they're back borrowing significant sums to finance new aircraft deliveries.

One thing for sure, both Singapore and Air China are already customers of some ARINC services as are virtually all major carriers, so I don't know if their influence would help or hinder AMA's cause when it comes to actually getting AFIRS installed in the China Eastern fleet. ARINC are hands down the industry leaders in air/ground communications and even Mr Tempany acknowledges that AMA does not realistically view the majors with their entrenched ARINC systems as a probable market at this point.

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