RE:RE:RE:airasia advocates for easing of travel restrictionsIt has been a while since Flyht acquired PWS and got their order book for the PWS product line.
If memory serves, there are FlightLink boxes to deliver along with Tamdar sensors. The order size was effectively doubled about a month after the acquisition. There could well be an opportunity to include Flyht's recently acquired WVSS-II sensors, which would be new.
The end number 190 is probably stale, and all is predicated on AirAsia returning to full strength.
As a refresher, here are two dated articles from that time...
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https://seekingalpha.com/article/4271464-flyht-saas-for-airlines-and-extraordinary-acquisition-seen Greatest Acquisition Ever
Author Christopher Hampton, 2019-06-21: “(Flyht) turned a corner on October 10, 2018 with an acquisition that the market has yet to digest, or I think really even understand—likely because it is hard to believe. It wasn't until I had a call with the CEO that I was sure I understood the terms correctly.
The background necessary to understand this acquisition is that the counterparty, Panasonic Avionics, was devastated by a bribery probe. New management came in to try to find new homes for areas of the business, along with their contractual commitments and the employees working in those areas. FLYHT was deemed (by both parties) to be uniquely well suited to take on the business and operational functions of Panasonic Weather Solutions (“PWS”). (
This article from Avionics International offers a clearer sense of the value of the acquisition, versus FLYHT’s release announcing it.)
Another key factor was that Panasonic (“PAC”) was never able to make money with PWS. They tried to sell weather forecasts, competing with government agencies. FLYHT is instead selling the raw data, to those government agencies (and other clients). FLYHT integrated it with their other system-monitoring hardware, allowing aircraft to anticipate conditions that will cause wing icing and other issues.
So if you read management’s explanation of the acquisition and think, “it sounds like PAC is
paying FLYHT to acquire PWS,” you are correct. PAC will pay FLYHT subsidies totalling USD$3.3 million (potentially $4.3 million) “to keep the asset acquisition cash-flow neutral” and help ensure successful integration. That it despite the fact that in addition to acquiring their licenses, tech, and employees, FLYHT also acquired $20 million in contracts from PAC that
immediately doubled their revenue while providing a new long-term revenue stream that is highly complementary to their existing business
. So, to reiterate, “FLYHT is paying no monetary consideration to PAC for the PWS assets.” Nor are they giving PAC any FLYHT stock (so the acquisition is also non-dilutive). Nor is FLYHT assuming any liabilities.”
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https://www.aviationtoday.com/2018/12/13/airasia-flyht-agree-services-190-aircraft/ aviationtoday.com article dated 2018-12-13...
FLYHT Aerospace Solutions reached an agreement with AirAsia to more than double the installation base for its weather and flight tracking services on the operator's fleet to 190 aircraft.
FLYHT picked up AirAsia as a customer with its October acquisition of Panasonic Weather Services (PWS), taking on the latter's 2015 contract with the airline to supply FlightLink Iridium satcom aircraft tracking, tropospheric airborne meteorological data reporting (TAMDAR) sensor data and AirMap displays to 90 equipped AirAsia aircraft. The new agreement between FLYHT and AirAsia expands that deal by 100 additional planes.
In addition to the increased scope, FLYHT will also provide additional services to the Asian airline. It developed an STC for the Airbus A320neos featured in AirAsia's fleet, shortly after the extension was signed, according to FLYHT CFO Alana Forbes. FLYHT will also update the AirMap display to integrate real-time TAMDAR weather data, a benefit that Forbes said will apply retroactively to those aircraft that have already been upgraded as well as the remaining 110.
The FlightLink system provides voice and data communication as well as ICAO-compliant GPS-based flight tracking and alert capabilities. The system will now keep AirAsia's aircraft connected 24 hours a day to aid in maintenance and fleet management.
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