Drone Delivery Canada Corp. today announced that, with the assistance of its sales agent Air Canada, it has executed a Letter of Intent with Drones Express Inc. for what it describes as a multi-year, multi-route Condor drone delivery project in Quebec.
Under the terms of the LOI, Drone Delivery Canada (DDC) explains the parties are cooperating to work towards a binding definitive agreement, which will set out the terms and conditions respecting drone delivery using multiple DDC Condor drones.
Implementation of the project is expected to begin in early summer 2021, with all operations conducted in accordance with the Canadian Aviation Regulations and Transport Canada flight authorizations. The expected term of the agreement is to be 10 years with a total revenue over the term to DDC of $3.6 million, plus other potential service revenues.
The Drones Express solution provided by DDC would use the latter company’s proprietary DroneSpot depots to service multiple coastal communities on multiple routes along the Lower North Shore region of Quebec. It would DDC’s patented and proprietary FLYTE system, in a SaaS model. DDC will provide implementation and commissioning of the system, training, technical support, managed services and remote monitoring from its Operations Control Centre in Vaughan, Ontario.
“Market response to our pre-selling of the Condor solution has been favourable in Canada and internationally, and we are excited to announce our first potential Condor project. This is a pivotal milestone for us,” said Michael Zahra, president and CEO. DDC. “We are pleased to be working with Drones Express on this innovative commercial opportunity to service the needs of rural communities in Quebec, with potential further network growth in the future.”
Drones Express expects to expand this initial solution to more Condor drones, more communities, and more routes over time as this first project gains momentum during the term.
“The current Canadian regulation regulatory framework allows the use of drones operating beyond visual line of sight [BVLOS], only in rural Canada for low-risk operations in remote and isolated regions of Canada. Our expertise lies in servicing remote communities in Québec,” said François Bertrand, CEO of Drones Express. “Using drones to transport cargo and courier parcels is an innovative, reliable, economical and fast transport solution, and [in] the Lower North Shore of Quebec, is an ideal region for the implementation of such an initiative. We are ready for the challenge – a first in Canada.”