Cobham to keep flying miners in Australia

Cobham said its aviation division has secured a multi-million dollar extension on a contract to fly miners to remote parts of Western Australia.

The firm said it would continue to offer 'fly-in fly-out' services to transport BHP Billiton workers to mines at Yandi and Area C, 1,100 km northeast of Perth.

The deal is worth AUD$65m and builds on services Cobham has provided to companies operating in the Pilbara area of the country since 2003.

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The contract is a bit of good news for investors who were faced with a gloomy update from the firm earlier in November.

At the time the firm predicted a drop in revenues next year as it is hit by the fall in US defence spending.

It also said that a change in its sales mix and new investments would mean lower operating margins next year than are expected in 2012.