Canada Jetlines (TSXV: JET) Targeting European and U.S. Investors to Fund Launch

CEO Stan Gadek delivered several messages today (November 14th) at Scotiabank’s Transportation & Aerospace Conference, a key one being from where the company expects to secure its major capital commitments.

With a 49% foreign ownership exemption in hand, management has attracted interest from “significant airline investors”. JET is pursuing major European and U.S. investors because of their familiarity with successful Ultra-Low-Cost Airlines. The company is running a data room, which contains a highly detailed business plan with supporting documents that are available for review by qualified funders.

During a one-on-one discussion and Q & A with Scotiabank’s Transportation Analyst Turan Quettawala, Mr. Gadek covered a number of topics, including Westjet’s planned 2018 launch of Swoop.

The discussion is available at the following link:
http://www.platformwebcast.com/scotiabank111417/index10.html

Following the conference, the Canadian Press released the below story under the headline: Canada Jetlines targeting June 1 launch with foreign capital support.

QYOU Media (TSXV: QYOU) – The World Is Watching

Investors frequently tend to only focus on business and financial news as it relates to emerging companies keeping an eye on their investments.

QYOU Media had four significant news releases in the month of October as it shared growth in new global markets as well as announcing the milestone reach of 100 million people.

  • QYOU launches first localized channel in Poland with Mediakraft
  • QYOU set to launch daily esports TV and multiplatform series with Super Channel
  • QYOU strikes again in Portugal with NOWO
  • QYOU Achieves 100 Million Reach Milestone

QYOU Management shared that the reach of these four announcements went far beyond the normal channels of a news release and the summary below has links to 49 additional pieces of coverage across the globe in the month of October.

Click to view summary

 

BTV Video Features Canada Jetlines (TSXV: JET) and its “A-List” Board of Directors

Host Taylor Thoen and BTV – Business Television have produced a video feature which will be broadcast this coming weekend, November 4th and 5th, on BNN – Business News Network.

The seven-minute video highlights Canada Jetlines and its rollout strategy with plans to finally give Canadians a ULCC (Ultra-Low-Cost Carrier) option for inexpensive fares domestically, into the United States and southern sun destinations.

In the piece, Jetlines CEO Stan Gadek describes his hard-working team as “some of the most experienced ULCC executives in the world and we absolutely have the A-list on our board.”

The video features interviews and comments led by Executive Chairman Mark Morabito along with Independent Directors Jason Grant, John Stephenson and Saad Hammad.

View the BTV video below or click here.

 

QYOU Media Secures Bought Deal Financing And Clarus Tech Analyst Calls For “Lots of Catalysts In Second Half”

QYOU Media is adding fuel to its growth engine with this morning’s (October 31) news that it secured a Bought Deal with Clarus Securities that will see the investment firm purchase 13.5 million units for gross proceeds of just over $5 million. The unit is comprised of a common share and a half warrant with each warrant good for 24 months and exercisable at $0.55. There is also an over-allotment provision where an additional two million units could be taken up by Clarus, which would see gross proceeds rise to $5.7 million.

The added bonus with this news is that there has been some “street expectation” that the company would raise additional growth capital, which tends to keep a lot of potential buyers out of the market. Quite simply, once the street knows a company has the funds it requires for the future, people are more comfortable investing in the organization.

This bought deal follows two recent updates from Clarus Technology Analyst Joseph MacKay, who is calling for near-term robust growth.

In addition to his review of Q4/Fiscal 2017 (June 30) results, which saw revenues climb to $1.33 million or 322% over Q4/F2016, Mr. MacKay provided his perspective on the second half of calendar 2017.

He’s looking for the quarter ended September 30th to jump to $2.3 million and the December 31st quarter end at $2.9 million. On a calendar basis, he remains committed to revenues of $7.5 million for 2017 and $15.4 million in 2018. His price target is $1.10 per share.

Source: QYOU, Clarus Securities

He also provided comment on last week’s announcement that come January 2018, QYOU is launching a dedicated sports program with Super Channel’s GINX eSports TV Canada. Following the announcement on Heads Up Daily (HUD), management held an investor conference call where it was stated that the company expects revenues of $3 to $5 million just in 2018 from this new program.

Mr. MacKay wrote that management “believes that international revenue in 2019 could reach 4-5x 2018 levels. The mid-point of management’s eSports guidance represents 26% of our 2018 revenue forecast, while a 4-5x increase in 2019 would represent 64%-80% of our 2019 revenue estimate”.

The analyst is forecasting $25 million in revenues for 2019 and this was before the HUD deal was sealed.

It was also reiterated that 70% to 80% of annual revenues are recurring.

To view today’s news release, please click here.

 

QYOU Media’s New International Contracts Prompt Comments From Clarus Analyst

TSXV: QYOU

Since Clarus Securities Technology Analyst Joseph MacKay called for a $1.10 target price on QYOU media in his September initiation coverage, QYOU Media has released news on three international deals, which expand its global reach for its unique programming.

In an updated report released earlier today (October 18), Mr. MacKay discusses QYOU’s  extended international reach due to these new contracts and confirms his Target Price of $1.10.  This would equate to a 189% potential return based on this morning’s $0.38 stock price.

First, there was news of a New focus in India on Sept 13th, then Further Expansion in Portugal with NOWO TV Service on October 10th, and on October 17th, news of Launching QYOU’s First Fully Localized Channel in Poland.   

QYOU’s Best-of-the-Web” short form content for multi screens now reach more than 100 million consumers over six continents. The target audiences are millennials and Gen-Z.

Mr. MacKay has estimated 2017 revenue of  $7.5 million followed by estimated 2018 revenue of $15.4 million and positive EBITDA of  $4.9 million. Details on his first report can be seen here.

“QYOU’s Profitability Is Right Around The Corner”

Pending profitability, recurring revenues, and being THE world leader in short-form video content were the points tabled by QYOU Media’s Chairman G. Scott Paterson in a just released interview with Capital Ideas Media publisher, Mark Bunting.

Mr. Bunting bills the interview as “talking to the charismatic, irrepressible and high-energy Scott Paterson, one of Bay Street’s most prolific dealmakers and the Chairman of QYOU Media. Find out how this company is creating a new MTV by packaging web videos for broadcasters and targeting the millennial market.”

In the writer’s view, Mr. Bunting mentioned MTV, as the founders of that very successful company (and groundbreaking for its time) are the founders of QYOU Media.

In addition to the discussion about the rapid pace of revenue growth, Mr. Paterson makes the following key points, as well as the investment thesis for why people should seriously entertain becoming shareholders.

  • Viewership of short-form video “dwarfs” television viewing
  • Growth of mobile video exceeds cannabis sales at nearly 50% per year
  • QYOU Media partners with “major media conglomerates” such as Sinclair Broadcasting
  • 70% – 80% of QYOU Media revenue is recurring partly due to fees
  • QYOU Media recently launched with Lufthansa Airlines and Buffalo Wild Wings
  • QYOU Media has partnerships with Vodafone, Liberty Sky, Tata and others

Mr. Paterson’s interview is the first segment in the program.

Below is the Financial Model referenced during the interview that illustrates management’s thinking on growth in 2017 and 2018.

As a reminder, Clarus Securities Technology Analyst Joseph MacKay has a $1.10 Target Price on QYOU.  For more information on the Clarus report, please click here. 


On the heels of recently announcing that the company’s premium ‘best-of-web’ video for multiscreen distribution for its programs and linear channels now reaches an addressable audience of more than 100 million consumers across six continents, QYOU added to those numbers today (October 10th) with more news titled, QYOU strikes again in Portugal with NOWO.

Here are some key highlights from today’s news release:

  • QYOU Media’s linear channel will bring best-of-web video content to almost a million additional homes through NOWO TV service.
  • The agreement sees further expansion of the QYOU channel reach across Western Europe.

To read the news release, please click here.

Canada Jetlines (TSXV: JET) – “Fair Value” Is Ten Times Current Stock Price – Fundamental Research

The twenty-one page Fundamental Research report places “Fair Value” of $3.03 on Canada Jetlines’ stock, which is ten times the current trading price in the $0.30 range. While the report looks well into the future with forecast revenue and cash flow growth out to 2025 for Canada’s first Ultra Low Cost Carrier (ULCC), for purposes of this discussion we’ll focus on the Fundamental Research outlook for 2018 and 2019.

As the first two Boeing 737 – 800 NG aircraft are slated to be in the air as of next June, with the fleet growing to six by the end of 2018, we’ll look at the year operations kick off and the full year following start-up.

Fundamental is calling for Canada Jetlines to transport just over 240 thousand passengers in 2018 with revenues of almost $36 million, growing to close to a million passengers in 2019 and revenues of $143 million. Its assumptions call for a base fare of $115 per ticket and ancillary (baggage, food, etc.) revenues of $34 per passenger. It sees EBIT (Earnings Before Interest Taxes) of $4.4 million in 2018 and $18.9 million in 2019. The company currently has 57.6 million shares issued and 94.6 million fully diluted.

Fundamental has listed the following risks:

  • The company is in early stages and has yet to commence operations
  • The existing Air Canada / WestJet duopoly dominates the Canadian aviation market
  • Our valuation is dependent on a 2018 launch. Delays or other changes to the operational timeline could significantly impact our valuation.
  • Access to capital and share dilution

The report looks at the success of ULCC operations in the United States for comparative purposes and a window on the future for Canada Jetlines, which is looking at costs 30% lower than the main Canadian competition.

Source: Fundamental Research – Data gathered from S&P Capital IQ

“ULCCs exhibit significantly higher margins, due to their lower costs. Furthermore, ULCC airlines also appear to be significantly more liquid and solvent than the broader market. Perhaps most important for investors is that ULCCs generate a considerably higher return than the industry average. The ULCC business model has been successful south of the border, but that same success has not yet found its way to Canada.

The competition posed by the existence of multiple ULCCs in the U.S. is noticeably absent; it is estimated that the two largest airlines in Canada control approximately 92% of the domestic aviation market, as measured by available seat miles (ASM). What little is left is held by smaller niche airlines like Porter Airlines and Air Inuit (regional airlines that service Northern Canada), where lack of dense population centers warrants less air traffic and attention from the two major Canadian carriers.”

A major question that the market has, in terms of assessing future valuations and potential returns, is the amount of possible dilution that shareholders could face, as Canada Jetlines will require a significant amount of “start-up” cash to meet the requirements of Transport Canada.

In speaking with management, it was made clear to us that all efforts are directed to securing the bulk of the required capital with a debt instrument and a portion through an equity raise to minimize dilution. The team expects to have these details finalized over the next few months.

Fundamental looked at the valuation impact as it rubbed the crystal ball on potential future dilution.

Source: Fundamental Research

It is well known that WestJet has announced its intent to launch a ULCC. On that point, Fundamental writes:

“Established air carrier WestJet is also gearing up to introduce the ULCC model. Initially aiming for a late 2017 release, WestJet has pushed back their anticipated launch date to summer 2018 (similar to Jetlines), and plans to unveil a 10 plane fleet. This poses a threat to Canada Jetlines, as a ULCC launched under the WestJet umbrella will have access to an established network of resources. However, a recent vote by WestJet pilots to unionize could jeopardize WestJet’s ability to charge ULCC air fares. This is due to common employer status regulations that transfer employment agreements to subsidiaries of parent companies.”

We encourage everyone to read the entire report, which is available by clicking here.

As a closing note, Fundamental’s Disclaimer in part contains the following:

“The analyst and Fundamental Research Corp. “FRC” does not own any shares of the subject company, does not make a market or offer shares for sale of the subject company, and does not have any investment banking business with the subject company. Fees were paid by JET to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring. FRC takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage.

QYOU Media Is A BUY – Clarus Securities Research – Target Price 170% Above Current Market

Joseph MacKay who is the Technology Analyst for Clarus Securities has just initiated coverage on QYOU Media with a $1.10 Target Price, calling it Undervalued; “QYOU is trading at 4.4x and 1.8x 2018E and 2019E EV/EBITDA in a sector that typically trades at 8.0x-12.0x. We believe that as revenue ramps in 2H17 and as the company becomes EBITDA positive in Q1/18, this valuation discrepancy will disappear.”

As of this writing, the stock was trading in the $0.40 range with Clarus accounting for approximately 40% of the volume of close to 400 thousand shares.

QYOU Media, which is lead by the team that steered MTV, Atlantic Records and Lionsgate Digital to great success, has already created over 5,000 hours of original programming with its “Best-of-the-Web” video content for multiscreen distribution that targets the millennial and Gen-Z market through global content providers on any device. Its programming is now aired in more than 30 countries.

QYOU has proprietary technology that underpins its ability to identify premium “best-of-the-web” content.

Mr. Mackay commented that the low valuation comes from a lack of investor knowledge as QYOU is new to the market as it only began trading in March of this year with the completion of a Reverse Take-Over and it has a short history of publicly reporting financial results.

Below are the analyst’s forecasts through 2019, which call for more than a doubling of revenues in 2018 compared to this year and a healthy jump to more than $25 million in 2019. Mr. MacKay’s statement that the company is slated to become EBITDA positive in Q1/2018 also reflects management’s public position.

Mr. MacKay notes QYOU’s marquee customers, which speaks to the quality and attractiveness of the programming. He noted a few major names; “QYOU provides content to Sinclair’s TV station, “TBD”, which will be available over-the-air in 81 U.S. markets by the end of 2017. With Tata Sky, QYOU is providing content to 17M connections while with Ericsson, QYOU’s content has been added to Ericsson’s new delivery platform which is being rolled out to over 40 service providers”.

The market tends to embrace companies with a strong recurring revenue stream. QYOU is now at the front end of that growth, which prompted the comment from the analyst that, “With the typical contract 2-4 years in length, 70-80% of QYOU’s revenue is recurring on an annual basis. Based on our forecast, QYOU will be EBITDA positive in Q1/18 and will generate $4.9MM in EBITDA in 2018 up from negative $2.7MM in 2017”.

To view QYOU’s latest investor presentation and other related material, please visit: https://howardgroupinc.com/qyou-media/

Cormark Analyst – Canada Jetlines “Could Prove a Profit Challenge to Incumbents”

Yesterday (September 11, 2017) was a busy and fruitful day for Canada Jetlines’ senior management and board of directors. The entire team assembled in Toronto and hosted its first news conference. Click here to view the news conference.

The team also met with investment advisors and Transportation Analysts, one of them being David Tyerman from Cormark Securities. He used the opportunity to feature Canada Jetlines in his team’s “Morning Meeting Notes.”

In the piece titled “Air Transport – Jetlines ULCC Announces Launch Program”, he makes the case that Canada Jetlines “could prove to be a profit challenge to incumbents.” Specifically using the United States’ Ultra Low Cost Carrier (ULCC) market as an example, “We are seeing this in the current U.S. airline price war, which was sparked by incumbent, United Continental, trying to fend off ULCC, Spirit. JET’s announcements may suggest future similar challenges in Canada.

Although, Canada Jetlines is just under a year from having planes in the air. Mr. Tyerman states, “We remain constructive on Air Canada (AC), WestJet (WJA) and Transat (TRZ) from a recommendation standpoint in the short term due to current positive market dynamics (reasonably rational competition) and the CAD tailwind and for AC, benefits from internalization of its loyalty program (probably in the 2022 timeframe). But longer term, risks are brewing from potential ULCC competition, WJA’s long-haul expansion, potential international long-haul ULCC competition and possibly from reduced competitiveness against international carriers.

Here is an excerpt from the Cormark report on how Canada Jetlines is positioning itself against West Jet, Air Canada and other Ultra Low Cost Carriers.

Yesterday’s news conference resulted in a number of media outlets featuring the company, below is a select list of articles including links.

September 11, 2017 – BNN
Canada Jetlines CEO outlines plan for summer 2018 ultra-low-cost carrier launch

September 11, 2017 – Financial Post
Canada Jetlines promises base fares below $100 out of Hamilton and Waterloo

September 11, 2017 – Global News
Canada Jetlines to offer low-cost flights from Hamilton and Waterloo

September 11, 2017 – CBC
‘A rebellion against high fares’: New low cost airline launching in Hamilton

September 11, 2017 – The Globe and Mail
Startup Canada Jetlines plans to offer base fares below $100, CEO says

September 11, 2017 – SKIES
Canada Jetlines launches low-fare ‘rebellion’

Canada Jetlines – “We’re Going To Start A Rebellion Against High Air Fares In Canada”

TSXV: JET

This was the core theme as Stan Gadek, CEO of Canada Jetlines, spoke to members of the press and media this morning (September 11) on the heels of the announcement that the new airline will offer ultra-low fare service from both John C. Munro Hamilton International Airport and Region of Waterloo International Airport when it begins flight operations in Summer 2018.

Mr. Gadek said the target date to be in the air is June 1st, 2018, starting with two Boeing 737-800NG aircraft, then adding two more by August, and another two aircraft by November. Below are the route maps that will expand in conjunction with the addition of aircraft.

[URIS id=17446]

He spoke at length about cost control to ensure that “we will always have the lowest airfare” and that the company’s modeling is looking for a Cost Per Seat Mile of 9.5 cents, which is lower than any of the Ultra-Low Cost Carriers in the United States and considerably under Westjet’s 12.5 cents.

To view the news conference and follow-up questions, see below or click here.

Mr. Gadek was asked about Westjet’s plans to launch a low cost airline in the summer of 2018, which he addressed in detail and also cited the example of how American Airlines tried to go head to head with Jet Blue when it launched its initial operations in the United States. His answer starts at the 21 minute mark.

Further to the entire issue of cost control, the new arrangements with Hamilton and Waterloo airports are important components of the business case and certainly so in comparison to basing operations at Toronto’s Pearson International airport. Of note is the fact that there is a “catch basin” of four million people within a 90 minute drive from John C. Munro Hamilton International Airport and Region of Waterloo International Airport.

A promotional video that Hamilton produced covers all of its advantages, with these points reflecting Canada Jetlines’ decision to base operations from there as well as Waterloo Regional.

Following the news conference and a round of interviews, Mr. Gadek was off to BNN TV where he sat down with Michael Hainsworth and told him that Canada Jetlines’ airfares would be as “low as the cost of a pair of jeans”.  

To view BNN interview, please click here

Canada Jetlines CEO Significantly Increases Share Position

JET:TSX-V

Stan Gadek only stepped into his role as CEO on June 1st of this year, and he’s wasting little time in building a material position in what will be Canada’s first Ultra Low-Cost Carrier airline.

In a clear affirmation of his belief in the future, during July Mr. Gadek purchased 500 thousand shares at $0.20 each and has just acquired an additional 1.9 million shares in a private purchase from the company’s former CEO. Mr. Gadek now owns 2.4 million shares and has made a significant capital investment.

He is now the single biggest insider shareholder right behind Executive Chairman Mark Morabito who owns just over 2.6 million shares. Dixon Lawson who is VP of Strategic Planning and Cost Control also owns a healthy position of 1.22 million shares.

To review Mr. Gadek’s previous highly successful career in the U.S. airline industry as well as  view his interview on BNN TV the day after his official appointment, please click here.

 

CEMATRIX Corporation (CVX:TSXV) Releases Project Videos

It has been well discussed in the past as to the wide variety of uses and multiple benefits of cellular concrete, especially when having to deal with less than stable soil conditions.

To make it easier to appreciate the scope and complexity of the type of projects that CEMATRIX has successfully tackled, the company recently completed a series of videos that highlight major pours at bridge sites, refineries, utility corridors and roadways.

Use the link below to access five separate videos, one of which details the process from “A to Z”.

https://howardgroupinc.com/cematrix-corporation/

FLYHT Aerospace – Boeing Test Draws Attention Of Avionics Magazine

FLYHT Aerospace has been featured in the August/September edition of Avionics Magazine online as a result of an August 10, 2017 announcement, regarding the company’s collaboration with Boeing.

The article specifically states, “FLYHT Aerospace Solutions is supplying its UpTime™ Cloud automated flight information reporting product and management platform to Boeing as part of its upcoming flight test program on a FedEx 777. FLYHT is participating in the Boeing ecoDemonstrator Program to collect data and produce test reports necessary to demonstrate autonomous distress tracking and the timely recovery of flight data to help drive industry standardization and requirements. The company’s portion of the ecoDemonstrator Program was initiated in April and is expected to be completed in 2018.”

About Avionics Magazine

Avionics is the leading source for global aviation technology intelligence, covering the latest developments with the connected aircraft, NextGen, avionics innovation and global air traffic management modernization. More than a magazine, this is the platform for in-depth analysis on the global aircraft electronics market, used by top avionics executives, engineers, pilots and professionals throughout the value chain.

This site generates 56,000 page views per month, with 21,770 unique visitors. 41% of our visitors come from international sources

To read the article in its entirety, please click here.

 

FLYHT Aerospace Second Quarter Conference Call Now Available Online

We’re keenly aware that at first blush investors will see a decrease in revenue and an increase in expenses over last quarter and immediately jump to the conclusion that something’s wrong with the company. However, once the time is taken to dig into the numbers and listen to today’s (August 17th) conference call, the quarterly results are a minor bump in the road. The uptrend is fully expected to continue, which has seen seven consecutive record quarters and four profitable quarters.

Plain and simple the second quarter was impacted by the following:

  • The first half of the year is cyclically slower than the second half for FLYHT.
  • Revenue was $3.4 million, which is only 4% lower than the same quarter a year ago. The revenue shortfall relative to last year was in FLYHT’s recognition of AFIRS™ hardware units. According to Tom Schmutz on the conference call earlier today, “We recognized 17 units this quarter compared to 27 a year ago. However, June was a very strong month; where we recognized 60% of the revenue from AFIRS units, but April and May were slow. The recognition rules vary according to use case and situation, so it can get complicated and timing does play a part in when we can recognize both the hardware and the resulting services.”
  • It’s important to note that the other revenue categories were up this quarter.  Schmutz stated, “The Voice and Data services revenue component, which is the Software as a Service component, was up 14% over Q2 2016 and Parts sales, which includes the IP license payments for our shipments to A320 and A330 production and retrofit, was up 31% over Q2 2016.”
  • The second quarter bears the weight of non-cash charges from issuance of stock options. In this regard, Mr. Schmutz stated, “It would be nice to be able to spread these non-cash charges across the year, rather than burden one quarter, but it is not practical from an accounting standpoint to do so. These options are very important to the business because they are the primary method at the board and management’s disposal to attract and motivate the quality people that we need to be successful in this very competitive business. When we take the non-cash charge out of the quarter, we were slightly negative at $330k, which again results from a shortfall of recognizing AFIRS kits in the quarter.”  
  • Also in the second quarter of 2016 FLYHT recorded a sale of Intellectual Property for $3.2 million.
  • With the total revenues for the first half of 2017 things are looking very positive. Schmutz addressed this point on the call by stating, “Overall the first half total revenues are 16% better than this time last year. The AFIRS hardware revenue is within 1% of last year, Voice and Data Service revenue is up 11%, and Parts revenue is up 41%, relative to last year…Historically, our business is cyclical; the first half of the year traditionally lags the second half for overall revenues. We are therefore optimistic for the second half of the year. On the very good news front, June hardware recognition was brisk, and the value and quantity of shipments in June and July have been exceptional. In fact, during July, I believe set a company record for the value of units that we shipped; and we are actually ahead of estimated 2017 budget through July for the value of shipped units. We are therefore optimistic that the AFIRS revenue will catch up to where we planned it to be in the third quarter of this year.”
  • Sales have been progressing well both in the quarter and year to date. Addressing this Mr. Schmutz said, “During the second quarter, we have received sales orders in new contracts or purchase orders for nearly USD $5 million for Parts, AFIRS Hardware and Voice & Data contracts. During the first quarter, we had new orders for a little over USD $5.6 million. This brings us to over USD $10.5 million in new sales orders for the first half of the year, which exceeds our revenue for the same period, so we are looking good from a book to bill ratio at the midpoint in the year.
  • The sales backlog is growing and is stronger than ever. To this point, Mr. Schmutz stated, “The sales Backlog, which I reported earlier this year exceeds $25 million and creates significant optimism for our ability to achieve future revenue goals. Bottom line, we have a very exciting sales funnel and I hope to be bringing new sales news quite soon.”

In regard to operations, Mr. Schmutz provided a broad overview of all the things the company is working on.

  • “Operationally, FLYHT has a wonderful opportunity, having signed agreements for two trials to test Autonomous Distress Tracking and Timely Access to Flight Data features of our product which will satisfy requirements levied by the International Civil Aviation Organization (or ICAO) for new aircraft in service by 2021.  FLYHT recently announced the U.S. patent for our FLYHTStream™ capability which is also registered in China and some other countries. It is awesome to see these patented capabilities that FLYHT has been offering commercially within the industry for several years being recognized as a potential solution for the way aircraft will operate soon and beyond.”
  • “One trial is being conducted by FLYHT and Boeing on a FedEx B777. The second trial is with industry heavyweights and has not been announced yet, but we hope it will be soon. Both trials will use our real-time data streaming capability and will use either satellite constellations from Iridium or Inmarsat or, in the case of Boeing, both. We have modified the AFIRS unit so that is can stream over different technologies; so, we can use the organic Iridium resources inside the AFIRS or we can use alternate communication resources that may exist on the aircraft. The data sets from these trials will validate this fantastic approach to the connected flight deck and will be used to drive industry standards with FLYHT serving as the streaming technology expert in these trials.  The logistics and planning phases for both trials are underway; we expect to have conducted flight tests for one of the trials in this calendar year and early next year for the other trial. It is also wonderful to see FLYHT working directly with these large corporations and not through intermediaries; to me this speaks volumes about the maturation process that FLYHT has undergone the past few years and I am very proud to be able to represent our company to these organizations.”

Listen below to today’s second quarter conference call in its entirety or click here.

Alex Ruus On BNN: “Air Canada Would Be Smart To Add FLYHT Onto Their Fleet”

Almost without exception, Arrow Capital Portfolio Manager Alex Ruus receives a question about FLYHT Aerospace during his many appearances on Canada’s Business News Network (BNN). Yesterday was no different as he detailed a number of positives in response to a caller’s query about the company. Here are some highlights:

  • Great little company.
  • Just recently emerged into profitability.
  • This is the type of leader of tomorrow we like to invest in.
  • It’s a very cheap stock right now, it trades at a market cap of under $50 million.
  • They provide what I call smart black box streaming. It would help deal with issues like MH-370 that disappeared five years ago and still hasn’t been found. That would never have happened if it had the FLYHT equipment on. More importantly it is an economic sale to the airline. They sell their product to the airline, a streaming service and it helps them maximize profitability of their planes.
  • They are on the assembly line of Airbus on the A-320 line and we think they could have some breakthroughs with other OEMs in the next year or two, as well as they could get some very big airline customers.
  • They have about 1,000 units out in the market so far and they get a recurring revenue stream off of each of those units.
  • I think a company like Air Canada would be smart to add FLYHT onto their fleet because we think that would allow them to increase their utilization of assets.

To view the full segment, please click here.