Canadian Helicopters announces extension of US Air Force contract
Canadian Helicopters the largest helicopter transportation services company operating in Canada, today announced the extension of its US Air Force North Warning System Contracts.
The US Air Force has confirmed that the contracts have been extended to September 30, 2009 subject to delivery by government authorities of final documentation. At that time, it is envisaged that new, longer term contracts will be awarded.
Representing the continuation of a long-standing relationship with the US Air Force, this support agreement is comprised of three separate contracts. Canadian Helicopters will operate up to nine medium and heavy helicopters in providing transportation support to early warning radar sites across the Canadian north.
The aircraft will provide operation and maintenance, construction and fuel re-supply support to the various radar sites and will operateprimarily from five locations. Five aircraft are on dedicated year-round operations and four additional aircraft provide seasonal summer support.
The prime contractor is the Canadian Commercial Corporation, Canada's international contracting agency, which focuses on government-to-government contracting and procurement. The contracts are denominated in US dollars and are comprised of both monthly and hourly revenue components. They incorporate revised pricing, which reflects cost escalations experienced on the former contracts.
The North Warning System (NWS) is a chain of 47 unmanned radar sites supported by five Logistics Support Sites.
The NWS provides aerospace surveillance of Canada and the rest of North America. Constructed between 1986 and 1992, they are part of the NORAD agreement between Canada and the United States and are considered an essential element in guarding Canadian sovereignty.
"Canadian Helicopters has provided transportation support to the North Warning System sites for approximately 18 years," said Don Wall, Senior Executive Vice-President of Canadian Helicopters Income Fund. "We are pleased with this extension of our supply contracts, which signifies the ongoing confidence the US Air Force has placed in the quality of our services and operations and we look forward optimistically to a successful fall renewal."
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