|NEWS & EVENTS|
|Stratech Aerospace Unveils Plans for Growth|
Singapore, 4 February 2013 – Singapore Exchange Mainboard-listed Stratech Systems Limited today unveils plans for the growth of Stratech Aerospace Pte. Ltd. In the plan, Stratech Aerospace will establish a network covering key regions with significant potential for the aerospace industry. Stratech Finance is also being set up to provide financing options for clients.
Stratech Aerospace, headquartered in Singapore, is a wholly-owned subsidiary of Stratech Systems Limited. Its objective is to spin out the iFerret™ intelligent Airfield/Runway Surveillance and Foreign Object & Debris (FOD) Detection System in key aviation markets. This is done via licensing, alliances and strategic joint ventures.
Stratech Aerospace Middle East will be established to form part of the Stratech Aerospace network. The aviation industry in the Middle East is expected to grow strongly1 , with a steady stream of investments in the pipeline to cope with increasing passenger and cargo traffic, supported by rapidly developing economies. Countries like the UAE, Qatar and Saudi Arabia have also been actively promoting tourism in their countries, which will likely contribute to sustained growth in air traffic in the region. Airports in the Middle East are expected to handle 400 million passengers annually by 20202. An estimated 1,580 new aircraft are expected to be delivered to this region over the next couple of decades.
To establish itself in this rapidly growing region with 1,200 airports and at least 68 military airbases, Stratech has formed partnerships with Modern Times Technical Systems (MTTS) and Bayanat Airports Engineering & Supplies Co LLC in the Kingdom of Saudi Arabia and the United Arab Emirates respectively. These partners will help to promote iFerret™ to the airports in their territories, where the aviation authorities have been placing great emphasis on flight safety.
The network will also specifically cover another key market, the U.S. The U.S. is the largest economy in the world, and also the country with the most number of airports.
In March 2012, iFerret™ received US Federal Aviation Administration (FAA) accreditation when the FAA published a Performance Assessment Report stating that iFerret™ had fulfilled all performance requirements listed in the Advisory Circular (AC) 150-5220-24, Airport Foreign Object Debris (FOD) Detection Equipment. This was significant because compliance with the AC is mandatory for US airports acquiring FOD detection equipment through the Airport Improvement Program (AIP) or the Passenger Facility Charge (PFC) Program. Airports are now able to use these funds to offset the cost of installing iFerret™. In May, the FAA also granted iFerret™ Buy American Waiver, which will allow iFerret™ to be used on AIP funded projects without having to receive separate waivers for each project.
The AIP provides grants to qualifying airports for improvement projects that enhance airport safety, capacity, security, and environmental concerns. The PFC allows the collection of PFC fees, commonly known as airport tax, to fund approved projects. The FAA’s directions on specifications and funding of FOD detection systems are commonly adopted as the de-facto standards by many airports globally.
Two other markets that will be covered in the network include China and Europe. China, the most populous country in the world, has been experiencing economic growth that is expected to persist in the foreseeable future. An increasingly affluent population has heightened demand for both domestic and international air traffic. In June, the Chinese aviation authorities had announced plans for 70 new airports in the following 3 years, to bring the total number of airports in China to more than 2303.
Europe is home to many of the major airport hubs and airlines in the world. Countries like the UK, France, Germany, Spain, the Netherlands, Italy and Switzerland have airports that have consistently been ranked among the busiest in the world. Most of these prominent airports have yet to install automated FOD detection systems. The Stratech Aerospace HQ in Singapore will continue to work on other regions not specifically covered in the network. This includes countries in the Asia Pacific (including Australia), South America and Africa.
Stratech Aerospace will also be offering leasing options through Stratech Finance. Stratech Finance’s objective is to promote the sales of products like iFerret™ by providing long-term and flexible financing for their acquisition. It aims to provide flexible financing arrangements to make iFerret™ affordable to airports, making it more widely-adopted, and consequently further improving the level of safety in aviation globally.
Stratech is a global leader in intelligent Vision. To strengthen this position, Stratech Aerospace plans to set up a Centre of Excellence for Video Analytics, which will be a Research & Development centre for video analytics to further enhance the leadership. The Centre’s work will include developing enhancements to the FOD detection capabilities of iFerret™ as well as complementary video analytics features which will augment iFerret™’s operations, for example safety and security surveillance in the airport’s airside environment.
Stratech Executive Chairman, Dr. David K.M. Chew, commented, “With this set of plans, I believe we have a comprehensive approach with customised solutions to market iFerret™ to each of the four markets with huge potential. Stratech Aerospace HQ in Singapore will continue to work on the other markets that we had been actively pursuing, and in so doing we are targeting many of the world’s key airport hubs concurrently.”
“We will also be engaging with military clients, besides clients in civil aviation. Most military aircraft operate with single engines, and carry onboard payloads with hefty explosive power. The consequences of FOD damage to these aircraft are therefore in no way less than those for commercial planes. Also, most advanced air forces maintain fleets of aircraft and equipment that are worth many billions of dollars. Spending a small proportion of that amount to maintain such costly equipment would make financial sense. We therefore see good potential for iFerret™ to play an important role in military airbases as well”, Dr. Chew added.
Stratech Systems Limited