Orbital Corporation Secures Propulsion Service Contract
The company will provide engine support for American Aerospace Technologies as part of a new fleet agreement.
Updated on Oct. 23, 2026 in Electric Vehicles
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Orbital Corporation has entered into a Power by the Hour propulsion support agreement with American Aerospace Technologies Inc. for its AiRanger aircraft. The deal includes maintenance and performance services, replacing traditional upfront equipment sales models.
Why it matters
This contract structure seeks to reduce initial propulsion costs for operators while establishing a steady service-based income stream for the manufacturer. By retaining ownership of its engines, Orbital Corporation shifts its business focus toward long-term maintenance support.
The contract is valued at US$2.6 million and requires a minimum of 200 engine hours per aircraft monthly. Additionally, five Gen II Power Management Systems were purchased for US$60,000.
The players
Orbital Corporation
An engine manufacturer that provides propulsion systems and maintenance support for various aerial platforms.
American Aerospace Technologies Inc.
An aerospace company that operates unmanned aerial systems for various commercial and governmental applications.
The details
Under the terms of the agreement, Orbital Corporation provides comprehensive engine maintenance, overhaul, and replacement services for the AiRanger fleet. The deal ensures performance support for these unmanned aerial vehicles through the end of 2027.
Timeline
The US Coast Guard issued a request for information in April 2026.
The AiRanger aircraft fleet is scheduled to reach 10 units by May 2027.
The initial contract term is set to conclude on 31 December 2027.
Roadmap
This deal marks a transition for Orbital Corporation toward a service-based business model for its propulsion systems. It follows the scaling trajectory of the AiRanger aircraft platform as it expands its fleet size.
The transition to a service-based model aims to lower the barrier for fleet operators to deploy advanced drone technology. Potential users of these aircraft may benefit from reduced initial capital requirements for propulsion equipment.
The takeaway
This partnership highlights a broader industry shift toward subscription-style maintenance models for specialized hardware. Operators looking to manage long-term costs should monitor how these service structures influence fleet scalability.
Further reading
For more information on the evolution of propulsion and power systems in the industry, visit the Electric Vehicles section.
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