Magellan Aerospace awarded engine maintenance contract option year for CF-188 F404

TORONTO, April 29, 2015 /CNW/ - Magellan Aerospace ("Magellan") announced today the award of an option year related to the contract for engine repair and overhaul ("R&O") of the F404 engine that powers Canada's fleet of CF-188 Hornet aircraft.  The one-year, follow-on option year commenced on 1 April 2015, and has projected value added revenue of CDN $16 million.  The work will be carried out at Magellan's facility in Mississauga, Ontario.

Under the terms of the contract, the Corporation will provide maintenance, engineering, material management, provision of Field Service Representatives, and Publication support for the CF-188 F404 engine and ancillary components

"Magellan Aerospace is an approved source for F404 and J85 engine repair and has been the RCAF's choice for F404 engine repair and overhaul service for more than 30 years.  This continuing relationship with Canada's Air Force demonstrates confidence in Magellan's world class technical experience and value in terms of competitive pricing", said Mr. Phil Underwood, President and Chief Executive Officer of Magellan Aerospace.

In addition to supporting Canada's CF-188 F404 fleet, Magellan is a proven supplier, as well as Centre of Excellence, in the worldwide F404 engine R&O support market.  There are approximately 4,000 F404 engines currently in service in 15 countries around the world.

About Magellan Aerospace

Magellan Aerospace is a global, integrated aerospace company that provides complex assemblies and systems solutions to aircraft and engine manufacturers, and defence and space agencies worldwide. Magellan designs, engineers, and manufactures aeroengine and aerostructure assemblies and components for aerospace markets, advanced products for military and space markets, industrial power generation, and specialty products. Magellan is a public company whose shares trade on the Toronto Stock Exchange (TSX: MAL), with operating units throughout Canada, the United States, the United Kingdom, India, and Poland.

Forward Looking Statements

Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. When used herein, words such as "expect", "anticipate", "estimate", "may", "will", "should", "intend", "believe", and similar expressions, are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the Corporation in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Corporation believes are appropriate in the circumstances. Many factors could cause the Corporation's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including those described in the "Risk Factors" section of the Corporation's Annual Information Form (copies of which filings may be obtained at www.sedar.com). These factors should be considered carefully, and readers should not place undue reliance on the Corporation's forward-looking statements. The Corporation has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Magellan Aerospace Corporation

Mr. Daniel Zanatta, Vice President, Business Development, Marketing and Contracts, Magellan Aerospace, Ph. 905 677 1889 x300; Mr. John Dekker, Chief Financial Officer and Corporate Secretary, Magellan Aerospace, Ph. 905 677 1889 x224