Largest Deal to Date – FLYHT Receives Multi-Million Dollar Order For 146 AFIRS Units

This morning, investors woke up to details on a substantial order that President Matt Bradley mentioned on FLYHT’s second quarter conference call.

Here are the details:

  • Single largest order in company history.
  • Avmax owns six aircraft and will equip its current and future leased fleet, for a total fleet size of 146 aircraft over a seven-year term.
  • The revenue during the seven years to FLYHT will be approximately $4.3 million USD, “optional” services could up the total to $8.3 million USD.
  • This order once fully realized increases FLYHT’s install base by over 35%

Of special note, Avmax Canada and R1 Airways Vice President Al Young, provided FLYHT’s technology with a glowing endorsement in the news release, “Avmax did an extensive review of products in the market and AFIRS was selected because it met all of our business needs. FLYHT’s solution was superior to the other products we evaluated in the market,”

To view the full news release, please click here.

Canadian Aviation Leaders FLYHT and Avmax Partner to Improve Aircraft Tracking and Data on 146 Aircraft

CALGARY, ALBERTA (Sept. 28, 2015) – FLYHT Aerospace Solutions Ltd. (TSX VENTURE:FLY)(OTCQX:FLYLF) (“FLYHT”) and Avmax Group Inc. (“Avmax”) today announced an agreement for the Automated Flight Information Reporting System (AFIRSTM) 228 for the two airlines Avmax owns, as well as its current and future leased fleet, for a total fleet size of 146 aircraft over a seven-year term.

Avmax operates two airlines, R1 Airlines (“R1”) and Chad Airlines (“Chad”), with a total fleet of six aircraft and the remainder are part of their leasing program. AFIRS will be installed on Bombardier CRJ’s and DHC-8 aircraft. Avmax’s primary interest in AFIRS was to satisfy the demands of their oil and gas contracts. Avmax will benefit from FLYHT’s flight data monitoring, which provides real-time engine and airframe exceedance information to maintenance and operations teams to alert them of any issues and enable them to provide timely service to the aircraft. Avmax will also benefit from FLYHT’s global voice and two-way text messaging to communicate with the aircraft.

“Avmax did an extensive review of products in the market and AFIRS was selected because it met all of our business needs. FLYHT’s solution was superior to the other products we evaluated in the market,” remarked Al Young, VP of Avmax Canada and R1 Airlines. “We will be able to provide world-class solutions, not only to our own fleet, but also to those aircraft that are leased to other airlines and give us higher visibility and data on our assets. We anticipate high cost savings on engine repairs as well as the other advantages of the product for operations, communications and maintenance support.”

For the R1 and Chad fleet of aircraft, Avmax will utilize FLYHT’s next generation Aircraft Situation Display (“ASD”). This solution will provide real-time flight following, routine aircraft notifications, aircraft health exceedance alerts and the ability to call or send text messages to the aircraft. The alerting function is unique in the global aviation industry, and notifies the airline when there is an abnormal situation on board the aircraft so they can respond in a timely manner. Avmax will use three minute position reports for flight following, which exceeds the current proposed 15 minute position reports by the International Civil Aviation Organization GADSS (Global Aeronautical Distress and Safety System).

“As two Calgary-based aviation companies, FLYHT is excited that Avmax chose us after a competitive evaluation process,” stated David Perez, VP of Sales and Marketing at FLYHT. “FLYHT continues to show the market the value of AFIRS and our next generation solutions. This partnership with Avmax will provide both companies with new capabilities that we can offer the market. Avmax is the world’s largest private owner/operator of Bombardier equipment and FLYHT is very excited to be part of their long term strategy to grow that position. Our ability to meet regularly will assist FLYHT in developing high value, high return applications on this global platform.”

FLYHT will provide equipment and services to the leasing company on a seven-year contract with automatic yearly renewals after the initial term. FLYHT already has the required supplemental type certificates (“STCs”) to install on the Bombardier CRJ aircraft and the DHC-8-100/200/300 certification will be completed by Avmax in Q4 of 2015. Avmax also holds Design Approval Organization status which means it meets Transport Canada’s standards and expedites the STC process. The first five to seven installations are anticipated to begin in the fall of 2015 with the schedule still to be determined for the remaining leased aircraft.

If FLYHT completes installation on all 146 contracted aircraft and provides recurring revenue services for the full term of the agreement, revenue to FLYHT will be approximately $4.3 million USD, excluding any optional services on the leased fleet (which, if added, could bring the total value of the agreement to $8.3 million USD). FLYHT will provide AFIRS 228 units and the services mentioned above, and Avmax will provide kits and installation services.

About FLYHT Aerospace Solutions Ltd.
FLYHT provides proprietary technological products and services designed to reduce costs and improve efficiencies in the airline industry. The Company has patented and commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world. Its premier technology, AFIRS™ UpTime™, allows airlines to monitor and manage aircraft operations anywhere, anytime, in real time. If an aircraft encounters an emergency, FLYHT’s triggered data streaming mode, FLYHTStream™, automatically streams vital data, normally secured in the black box, to designated sites on the ground in real-time. The Dragon is FLYHT’s latest product, a revolutionary light weight portable satellite communications device that blends existing FLYHT technology with that of the iPad.

AFIRS, UpTime, the Dragon, FLYHTStream and AeroQ are trademarks of FLYHT Aerospace Solutions Ltd.

Contact Information

Avmax

Business Development
Tobin Shackelford
1 406 453 2344
Tobin.Shackelford@Avmax.com

Media Relations
Tara Brown
1 403 250 3185 ext 227
Tara.Brown@Avmax.com

FLYHT Aerospace Solutions Ltd.

Nola Heale, CA
Chief Financial Officer
403-291-7425
nheale@flyht.com 

Investor Relations
The Howard Group Inc.
Dave Burwell
Vice President
(888) or (403)-221-0915
dave@howardgroupinc.com

Bristol Institutional Relations
Glen Akselrod
President
(905) 326–1888
glen@bristolir.com

Kin Communications Inc.
Fred Leigh
(866) or (604) 684-6730
FLY@kincommunications.com

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

As Soon As FLYHT Shows That It Can Make Money It Should Skyrocket: Alex Ruus on BNN

Last night on Canada’s Business News Network, Alex Ruus, Portfolio Manager, Arrow Capital Management appeared on Market Call Tonight. In response to a question from a viewer on FLYHT Aerospace, below is a summary of his comments :

  • Full disclosure, earlier this month I bought a little bit for a couple of portfolios.
  • Frustrating in the last year, we own a lot of stock. Down in the last year. Symptomatic of the market we’re in right now.
  • Urge to hold on.
  • Pretty good news coming in the next six months. As soon as this company shows that it can make money it should skyrocket because if you look at the business model, it is a high recurring revenue type business.
  • Very difficult industry to break into. Aerospace industry. Remarkable that FLYHT has actually gotten to where they have.
  • Pipeline as big as it has ever been.
  • Last quarter they lost money, so investors are taking a wait and see attitude.
  • Based on my knowledge, really good things are happening right now, and the next year and as the coming quarters come out, you should start to get rewarded. You have to be patient and for a big institution manager like myself, it is easy to be patient because I’m confident and know the company well. But a lot of retail investors don’t have the patience.

To watch the spot, please click here.