Erickson Air-Crane Inc.
) has entered into a five-year lease contract from Los Angeles
County that has an annual value of $2.7 million. The three-year
contract includes two optional years thereafter. Per the
contract, the company will provide Los Angeles County a provision
for aerial firefighting services, including personnel, equipment,
tools, material, maintenance and supervision required to support
The greater Los Angeles area is one of the most densely populated
regions in the U.S. and is one of the most fire-prone areas too.
Specifically, Erickson will provide one S-64 helicopter equipped
with the company's proprietary 2,650-gallon fire suppression
system, a detachable water tank with multiple refill options and
eight coverage levels for targeted fire suppression.
The S-64 helitanker and an additional S-64 for urban firefighting
will be operated from Van Nuys airport. During the contractual
service period, the equipment will be available for fire
suppression efforts 24x7.
Erickson Air-Crane has a 13-year tie with Los Angeles Area Fire
Authorities. The company has seasonal firefighting contracts with
the U.S. Forest Service, Los Angeles City, and Los Angeles County
Being a leading global provider of aviation services, the company
has continuously been receiving contracts. Recently, the company
received a new five-year contract to provide comprehensive
replenishment and logistics services to Military Sealift Command.
Prior to that, it received a modification contract from the
Helicopter Transport Services for adjustments and modernization
of seven CH54B tail boom and pylon assemblies.
Despite Erickson Air-Crane's continuous contract wins, the
company is vulnerable to defense budget cuts and sequestration.
Erickson Air-Crane presently retains a short-term Zacks Rank #3
Among the stocks worth considering in the space are
Huntington Ingalls Industries, Inc.
Lockheed Martin Corp.
Northrop Grumman Corp.
), all with a Zacks Rank #2 (Buy).
ERICKSON AIR-CR (EAC): Free Stock Analysis
HUNTINGTON INGL (HII): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
To read this article on Zacks.com click here.