Carson Air has been awarded a long term contract to provide fixed wing medevac coverage for the whole of British Columbia.
The contract has an initial 10 year term plus options, and requires a fleet of new King Air aircraft to service the province. The purchase of these new aircraft will make EIC one of the largest King Air operators in the world.
This scope of operation led to EIC's decision to purchase a full motion simulator for pilot training to support all of its King Air operations. The simulator not only provides more training time for pilots but also significantly reduces fuel burn and corresponding GHG emissions for both training and travel to training.
“EIC is excited to expand its medevac business with one of the largest long term government contracts in its history,” says CEO Mike Pyle. “Historically, this work in British Columbia has been divided into multiple contracts with different suppliers. Carson Air has now been awarded a contract to provide medevac services throughout the Province, evidencing the quality of its work and the confidence placed in us by the British Columbia government.”
He continues: “The investment in this contract is significant at approximately $200 million. We have contracted directly with the OEM for the new King Air aircraft. It will take a period of time to obtain the aircraft from the OEM and modify them with the latest medical interiors. In preparation for the potential award of this contract we purchased slots at the OEM to ensure we can meet the Province's timelines.”
“The aircraft will be phased into service once received and when the medevac conversions are complete,” adds EIC president Carmele Peter. “It is important to note the existing fleet of aircraft is still in very good condition and will be deployed in other aviation opportunities in Canada. The full financial impact of this contract will not be evident in our results until all the new aircraft are modified and put into service, and the existing aircraft are deployed into other opportunities.”
Pyle concludes: “Our medevac operations have provided consistent, reliable profitability in all economic environments. We are interested in pursuing growth in this segment of our business, and this contract is a massive step forward in our strategy. Further details will be provided during our Q2 conference call.”