Calgary-based AeroMechanical Services announced Wednesday that it received a purchase order from Sky Blue Technology Development to outfit two Boeing 767 aircraft with AMA's afirs UpTime system.

AMA says it expects the number of afirs UpTime system kits - which allow airlines to monitor and manage aircraft operations in real-time - required by Sky Blue to increase throughout 2008. The company plans to ship the product for installation and activation in September.

Sky Blue is responsible for obtaining the required regulatory approvals and the sales and distribution of AMA's products to customers in China. AMA also reported that the Validation of Supplement Type Certificate has been received from the Civil Aviation Authority of China for the Boeing 767 aircraft to meet the requirements to have the system kits installed in China.

AMA entered into an eight-year contract with Sky Blue in the fall of 2006 where AMA was contracted to provide its afirs UpTime system to Sky Blue's customers, currently 515 aircraft, pending the necessary approvals. The company says if its able to install the system on all 515 aircraft and provide service for the full term of the agreement, the gross revenues would be approximately $35 million to the end of 2010 and annually approximately $15 million per year for the remainder of the contract term.

The AeroMechanical Services Bullboard was buzzing following this morning’s announcement, with some posters giving their thoughts on its potential significance, including tibutch who said: "This is much bigger that I first tought, 35 million for 2 years & 15 million a year there after for 6 years= 90 million + 35 million= 125 million, this is huge & there's the potential to get more from other unsigned airlines. Congrats to all the management & the team, after 3 years it's well rewarded, like they say perseverence, patience, hard work & a great product are a fantastic recipe for success [sic]."

Shares of AeroMechanical Services jumped 24.4% to 56 cents Wednesday morning.