The agreement, which does not have a fixed term, encompasses potential system deployments on more than 3,000 vehicles across as many as seven major US airports. The maximum value of the agreement, if the airline elects to place purchase orders for all proposed system elements, exceeds US$7m.
The initial statement of work under the agreement, valued at more than US$500,000, calls for ID Systems to deploy its AvRamp VMS at one US airport. Product shipments under this initial statement of work are expected to commence before the end of this year.
"This is the second major airline to deploy our AvRamp system, which we believe makes ID Systems the leading provider of wireless VMS technology in the US aviation market," commented Kenneth Ehrman, ID Systems' chairman and CEO. "The aviation market represents a largely untapped growth opportunity for us, with hundreds of thousands of vehicles used in airport operations around the world. We are confident we will execute on this new contract with the best practices we are implementing under our IDSY 2.0 initiative, and we should be in a strong position to capitalise on this multi-million dollar opportunity.
"The award of this contract follows a successful pilot deployment earlier this year, where we were able to demonstrate the compelling value of our solution. We are providing a cloud-hosted version of AvRamp for the airline, reflecting the rapidly growing trend of implementing VMS as a service. This helps reduce the customer's upfront capital investment, decrease the customer's IT workload and make customer support easier and more effective."
ID Systems, which specialises in wireless applications, has executed a master licence agreement and initial statement of work with a leading global airline to implement its AvRamp wireless vehicle management system on aircraft ground support equipment and other airport vehicles.
