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AeroMechanical Services Ltd.                                                                 Iridium Developments         ...
AeroMechanical Services Ltd.afirs 228B                                                   afirs 228S                       ...
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Fall 2010 Overview


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Fall 2010 Overview

  1. 1. AeroMechanical Services Ltd. Iridium Developments Fall 2010 Update Iridium is increasing its bandwidth capabilities in 2 ways. It is currently Investor Brief offering a marine product called While the global economic recovery is delayed and will apparently take time to return to previous levels, recovery in parts of the aviation industry has Openport, which provides 128 Kbps IP begun, which will unlock funds for purchases of afirsTM UpTimeTM over the next 6-24 months. Having just returned from the Farnborough connection “Always on” and 3 voice International Air Show where we exhibited with our partner L-3 Communications; there were many signs of market improvement with new airplane channels. The aviation version is being orders, aftermarket product and services up ticks, and a renewed optimism. Major airlines are reporting profits, air cargo traffic is picking up again, perfected by Live TV, who are developing and business aircraft utilization is recovering. Therefore, financial footing is being established in the industry for an acceleration of our growth. and certifying a “hat” size antenna that During the period that the industry has been slowly regaining its financial health, we have been actively building the foundation for our future – in the fits under small radome or collocated with marketplace, in our technology development, and in our staff and processes. For example, the AerCap relationship announced in February, Ku-band antenna. The onboard terminal although delayed by events in Europe, will, when consummated, engage us with a major lessor and Airbus, as well as providing a launch of our afirs LRUs weigh less than 25lbs and will be 228 product that is fully compliant with Europe’s new regulations. Also in Europe in Q2, we successfully completed the in-service-evaluation of afirs certified along with the antenna for UpTime on an aircraft owned by the world’s largest fleet operator of business aircraft, demonstrating an impressive array of financial and operational various aircraft models. This will give the benefits that establish a solid business case for equipping that fleet. only full global coverage “high speed” Our team, in cooperation with CMC Electronics, has successfully completed upgrades of several C-130 Hercules aircraft and the military end data system on the planet. In addition, customer formally accepted the first 2 (of 20) upgraded aircraft in July, establishing the credibility of afirs UpTime and AMA in that market space. Iridium has recently announced that it Finally, moving half way around the globe, the long-awaited approval to use Iridium for commercial aviation in China has occurred and we are now has completed its financing to launch the receiving orders as operators in China start to train installation teams. In the last 6 weeks, we have received orders for 4 kits from 2 airlines, have constellation of satellites required for received payment for and shipped 3. We also recently made a trip to China to demonstrate the fully functional systems. FLYHTStreamTM and NEXT, their latest offering for global FIRSTTM are of keen interest to both our end users and the government. The plan is for each airline to build out by fleet type until all of their planes voice and data transfer. We are excited have afirs installed. We are cautiously optimistic that the full roll out in China has commenced. to add these two capabilities to our product offering to our clients. Our sales strategy is being revised to target specific industry segments with tailored solutions. The Bombardier Dash-8 Operators Conference in June was the first industry event where we rolled out this new approach, and it has already produced results with a contract for 34 aircraft signed July 28 with one of the largest and most active airlines in Scandinavia. An important Middle East customer installed its first 3 (of 10) systems after a year of bureaucratic delay and will increase its order as its fleet expands. In Nigeria, the stage is set for success with our hard-fought win to provide the first-ever flight tracking center for Nigerian airspace. Also in Africa in July we signed a second airline contract that was driven by flight tracking Barriers to Entry – the STC requirements. TC OEM Order On the technology side, our unique data streaming technology, FLYHTStream, has been validated by two independent working groups in Europe, the EASA VSTC Aircraft Types – Oceanic Position Tracking Improvement Management Initiative (OPTIMI) for improved tracking of aircraft, and the French Bureau d’ Enquetes et d’ (Transport FAA (US) # In Service Backlog (Europe) (China) STC approvals Canada) End Q1 2009 Analyses (BEA) team investigating the tragic accident of Air France 447. We received considerable attention from the industry during and after the A A A A Airbus A319, A320, A321 3500 2497 Farnborough Air Show as a result of the positive reports from these independent evaluations. A I I Airbus 330 582 418 On the operations front, we have strengthened our software development and program management competencies and team which will allow us to A A A A Boeing B737-200, -300, -400, -500, -600, -700, -800 5300 2203 better meet the growing demands of our customer base. Our cash invested includes programmed one-time development expenditures on the new A A A Boeing 757-200 (C-33A military) 1015 0 afirs 228 which are necessary to get this critical product to market in a timely manner. As the order book rebuilds, shipments ramp up, and our A A A A Boeing 767-200,-300 917 67 major product development project gets completed, the pressure on financial resources will be reversed accordingly. A A A Bombardier DHC-8-100, -200, -300 805 500 I A A A Bombardier DHC-8-400 Bombardier CRJ100, 200, 440 200 1470 200 FLYHTStream Mode A A DC-10 (KC-10 military) 206 0 Why is real-time data and position so important? FLYHTStream mode provides real-time awareness at all times, and support during abnormal A Fokker 100 264 40 situations. A A A Hawker Beech 750, 800XP, 850XP, 900XP 700 200 FLYHTStream mode is activated via pre-defined criteria, cockpit crew, or ground staff. Using visual and aural alerts, ground staff is notified in the A Viking Air DHC-7 (LSTC) 90 0 operations center with urgent e-mails and text messages sent to mobile phones. Upon activation, live data streaming begins. Data is reconstructed I Embraer Legacy 600 175 and displayed on the ground. Maintenance, Operations, or OEMs troubleshoot the issue. Data streaming is terminated when it is no longer required. A = Approved I = In process P = Pending submittal 15,224 6,125 FLYHTStream also provides first level immediate position and data reconstruction in the event of an incident or accident. Partners Statistics Automated Flight Information Reporting System (afirs) UpTime GuestLogix TM • L-3 Communications Net Debt and True Working Capital as of June 30, 2010 afirs UpTime main features include flight watch/fleet monitoring, exception reporting, performance and maintenance W/C $ 2,777,722 trending, fuel management(2% – 5% savings), in-flight credit card validating, data streaming (real-time position and FDR Hawker Beechcraft Services (HBS) • Live TV Modified W/C $ 5,134,726 data in abnormal situations), and multi-function communications (Voice, Data, and Text integrated). Sierra Nevada Corporation (SNC) • Meggitt Long Term Debt $ 269,794 Civil Aviation Authority of China (CAAC) • Aviation Data Communication Corporation (ADCC) Capitalization: Shares Outstanding Today afirs 220 afirs 228 Basic 103.6 million 8.7 lb Box 6.4 lb Box The unique features of afirs UpTime include no gaps anywhere on the globe, no ground Fully Diluted 116.2 million infrastructure or IT staff required, no licenses and no additional ground hardware required, Contact Information Management, Directors, and Officers > 6.2% 700+ Ordered 30+ Customers 40 Ordered 2 Customers on-board and on delivery configurability, and a path to full EU compliance. WEB: 6 Continents 2 Continents EMAIL: TSX - V: AMA Oct 19, 2010 Revision A PHONE: 1.866.250.9956 © 2010 AeroMechanical Services Ltd. PROPRIETARY INFORMATION. Strictly confidential and may not be distributed without written consent from AeroMechanical Services Ltd. © 2010 AeroMechanical Services Ltd. PROPRIETARY INFORMATION. Strictly confidential and may not be distributed without written consent from AeroMechanical Services Ltd.
  2. 2. AeroMechanical Services Ltd.afirs 228B afirs 228S afirs 228U Hawker Beechcraft Hawker Beechcraft Services Offers Satellite Monitoring System on Hawker 125 Series Aircraft Hawker Beechcraft Services (HBS) is offering automated flight information reporting on fielded Hawker 125 series business jets (900XP, 850XP, 800XP and 750) through an agreement with FLYHT. The monitoring service, afirs UpTime, helps ensure operational readiness by recognizing and transmitting relevant engine and aircraft data that, if left undetected or unaddressed, might otherwise result in an unscheduled maintenance event and impact aircraft availability and dispatch reliability. In addition, Hawker Spiral 1 Spiral 2 UniLink* Beechcraft is equipping its demonstrator aircraft with the system to allow the company to educate customers on system utilization. Same as afirs 228B plus: Same as afirs 228S plus: “By installing the afirs UpTime system, our operators can be proactive about troubleshooting maintenance issues and taking necessary actions to reduceVoice, data, text, operations and maintenance unscheduled downtime,” said Christi Tannahill, HBS vice president, Global Customer Support. “Our customers will have real-time access to experts with no gaps inreporting, QAR, fuel management; real-time  second Iridium channel  all ATS messaging coverage and we’ll be able to deliver a new dimension of customer service and safety.”data and position streaming; wireless datatransfer and file uploads; MCDU integration;  certified for safety service voice and  CPDLC FLYHT’s afirs collects, analyzes, and delivers aircraft health and status, including position, to operator-designated internet (IP) addresses from any location globally via the Iridium satellite constellation and FLYHT’s UpTime web-hosted data delivery system. Satcom voice and real-time connectivity for Electronic Flight Bag (EFB)real-time transaction processing data messaging  path to full ATN compliance applications are also available. (may allow removal of one HF radio subject  Link 2000+ supported The system processes critical engine and aircraft parameters, as well as aircraft status. Airframe and engine data that exceed limits designated in the Aircraft Flight to completion of Iridium safety service Manual or specified by the operator are transmitted via afirs UpTime to one or more IP addresses, designated by the operator. The transmission is certification) completed in less than 15 seconds, without requiring pilot action. For situations requiring detailed analysis, position and aircraft status, data can be sent to any IP address, either automatically based upon pre-established conditions, or by instructions from ground-based personnel or the flight crew. Optional fuel ARINC 600 form factor  ARINC 600 form factor  ARINC 600 form factor management programs and Iridium voice service can also be added. 2 MCU; 6.7 lbs  2 MCU; 6.9 lbs  2 MCU +1MCU; 10.9 lb (note potential additional weight savings by (note potential additional weight savings removal of HF radio) by removal of HF radio) OPTIMI Program Available Q1 2011  Available Q3 2011  Available Q4 2011 International Aviation Body Cites Advantage of AeroMechanical Technology In an interim report on the feasibility of implementing improved aircraft tracking services across the Atlantic and on-demand data streaming, the European Oceanic Upgradeable to 228S or to 228U (UniLink)  Upgradeable to 228U (UniLink)  Full ATN and CPDLC functions Position Tracking Improvement & Monitoring (“OPTIMI”) program has cited AeroMechanical’s technology as a readily available solution for the airline industry. AMA’s before end of 2012 involvement with the OPTIMI program was the direct result of the company’s efforts to assist in improving the safety and rescue efforts should an event such as the tragic loss of AF447 in June 2009 be repeated. The objective of the OPTIMI Project is to “conduct a study that will analyze and demonstrate the feasibility of implementing oceanic flight tracking services and the afirs 228SU CPDLC Data Link & downlinking of safety data in the Atlantic areas of the NAT, EUR, and AFI ICAO regions at a reasonable cost and within a limited timeframe (2011).” “AMA’s technology is a valid option for consideration within the OPTIMI project as being universally available to civil and military operators within reasonable ACARS over Iridium timeframes,” the preliminary report stated. The team that is conducting the research study defined AMA’s afirs UpTime as a medium term solution stating, “Short term refers to trials in 2010 and implementation in 2011. Medium term refers to trials in 2011 and implementation after 2012.” Efforts to organize an OPTIMI trial with one or more existing AMA customers are underway. AMA has proven technology (patented and with further patents pending) that can automatically stream vital data normally secured in the black box as well as position information to multiple designated ground sites when a potential malfunction is detected aboard an aircraft. The streaming can also be manually triggered by the flight crew or ground based operations personnel. OPTIMI is one program being implemented by the SESAR (Single European Sky ATM Research) Joint Undertaking. The members of OPTIMI include Air France, Airbus, AirEuropa, CEDAR Consortium SITA, and other European Air Traffic control agencies. AMA is the sole non-European member included in the consortium and the sole datalink specialist. Note that neither SESAR nor OPTIMI specifies equipment, but rather fully evaluates NATS candidate solutions and issues recommendations regarding implementation feasibility and impact. The OPTIMI working group stated in its preliminary report that, “This solution offers great flexibility and is unique in its ability to AFR NAV  5 Air Navigation Service Providers covering use a wide range of events to trigger alerts/position reports Business Model Typical Benefits Quantified Margins on Recurring automatically. Down linking FDR data during specific periods is the North Atlantic, Europe and Africa regions Services ~77% also potentially of great value. This system does not require AE AENA  2 Major Airlines Our business model is similar to that of mobile ACARS or FANS1/A equipage; rather it monitors ARINC 429 phone and cable companies. We charge a and 717 databuses and transmits selected data in accordance  Summary of cost savings per aircraft-10 years Dash-8 Operator Gross Margin Analysis by Product 1 Aircraft Manufacturer one-time charge for the aircraft kit ($40 - $60k), ROI 19:1 Savings approach $89/flight hour with rules embedded in the onboard software. The (streamed generating a 5 to 25 year recurring service Install Kit aircraft) data is stored in a secure location and can be  80% Prof. Services delivered to any computer in the world securely and within 1 Specialist Datalink Avionics Company GM (%) after commissions,warranty and revenue. Our value added services include: $58,500, 2.8% $46,800, 2.2% $13,650, 0.6% 70% Global voice afirs box seconds”. The report further states that “International aviation $121,875, 5.8% $6,210, 0.3% 60% UpTime data  authorities have approved AMA’s technology for installation in contingency reserves Fleet watch  $682,500, 32.2% 50% UpTime Fuel tools S IT A A IR B U S 1 Communications Service Provider $229,320, 10.8% over 25 aircraft types/models and by different governing bod- UpTime Fuel tools, 77%  FLYHTStream 40% ies, thus certifying the system for world-wide use,” the reported UpTime data, 77% Prof. Services, 38%  Global voice, 40% afirs box , 58% 30% added. Referring to AMA’s unique data streaming solution, the 1 Specialist Aviation Consultancy  Fuel Management / ETS compliance Install Kit, 23% $348,119, 16.4% 20% OPTIMI report stated, “This process can be set up to only  Credit card validation $609,375, 28.8% 10% transmit in abnormal situations, thereby reducing data volume  2 Ground Systems Manufacturers and cost.”  0% Text Messaging to and from the cockpit OOOI-Maint.Svgs Manual data Svgs Dispatchability Hot Section Life Fuel Savings Auto Trend OOOI-Crew Svgs QAR UER avoidance 1 Product AMA was selected and awarded a subcontract as a member of FLYHT IN D R A  Global Satellite phone coverage CEDAR (Critical Event Detection and Reporting) consortium to support OPTIMI. © 2010 AeroMechanical Services Ltd. PROPRIETARY INFORMATION. Strictly confidential and may not be distributed without written consent from AeroMechanical Services Ltd. © 2010 AeroMechanical Services Ltd. PROPRIETARY INFORMATION. Strictly confidential and may not be distributed without written consent from AeroMechanical Services Ltd.