$2m to $20m contractsOne of these contracts could change things here real fast!
The Environmental Protection Agency in the United States has recently issued new guidelines with respect to de-icing methods that when effective will require commercial airports to capture and collect substantial percentages of the glycol utilized during the de-icing process. The Company believes that this will have a positive impact on its business in the future, as airports determine the way in which they will reduce the amount of glycol used and recovered from their de-icing operations.Recognizing that the sales cycle for a new technology product of this nature in the airline industry will average two to three years, the objective is to increase the number of opportunities to maximize the potential for sales in the future. The process involved for an airport to make a decision on Radiant’s de-icing system is complex, with many factors, which vary considerably for each situation. These factors include the size of the airport, the existence of a dominant airline and the number of airlines using it, winter schedules and historic weather patterns, the status of existing facilities and chemical containment systems, pollution levels, FAA approvals, space availability, long range planning and funding. In addition, the number of Radiant de-icing systems and the product configurations that may be required to fulfill an airport’s needs is a major factor; the number can range from one to eight or more, and the total cost per system for an airport ranges from $2 million to $20 million.
The Company has identified and advanced opportunities in the United States military sector in the past, through a series of successful tests with the U.S. military. With relatively limited resources and large market opportunities to be pursued in the commercial airline industry, the Company maintains a modest level of activity in this market, which may become a higher priority in the future.