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
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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).