SHAH ALAM: ISS contract for Cougars extended. The In-Service Support (ISS) contract for the RMAF 12 Airbus EC725 helicopters have been extended for another three years. The ISS contract had been awarded to a Boustead Heavy Industries Corporation Bhd (BHIC) subsidiary company, BHIC Aeroservices Sdn Bhd, since 2014.
We refer to the announcements made on 21 March 2014 and 21 July 2017 on the receipt of a Letter of Award (“LOA”) by BHIC AeroServices Sdn Bhd (“BHICAS”) from the Ministry of Defence Malaysia (“MOD”) in relation to the provision of maintenance and supply of spares for the Royal Malaysian Air Force EC725 Helicopters via In-Service Support (“the ISS Contract”).
BHICAS is a joint venture between BHIC Defence Technologies Sdn Bhd (51 percent), Prestige Pillar Sdn Bhd (30 percent) and Airbus Helicopters Malaysia Sdn Bhd (19 percent).
The Company wishes to announce that BHICAS has accepted a letter dated 12 August 2020 from MOD for the extension of the ISS Contract for another three (3) years, effective from 1 April 2020 (“the Extended LOA”) with an additional ceiling contract value of RM113.2 million. The new total ceiling contract value is RM548.2 million only.
Apart from the extension of the Contract period and revision of Contract value, there are no significant differences between the substance of the Contract and the Extended LOA.
The Extended LOA will contribute positively to the earnings of BHIC Group for the financial year ending 31 December 2020 to 31 December 2023.
None of the directors or substantial shareholders of the Company, or persons connected with them have any interest, direct or indirect, in the Extended LOA.
This announcement is dated 1 September 2020
Like most of RMAF maintenance contract, the ISS contract was directly negotiated with BHIC Aeroservices as it had partnered with Airbus Helicopters, the OEM of the EC725. For the record, RMAF currently operates 12 EC725, operated by two squadrons, No 10 at the Kuantan airbase with six airframes while the No 5 Skuadron in Labuan airbase has four.
The EC725, designated as H225M by Airbus Helicopters, are the only operational helicopters in RMAF currently. The Nuri has been grounded since early last year.
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