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Canadian Company Spotlight


 

AeroMechanical Services Ltd. Website: Click Here

Information As Of May 22, 2008

Exchange: TSX Venture Market Cap: 55 Million
Outstanding Shares: 69.6 Million 52 Low / High: $0.44 / $1.48

Price May 22, 2008: $0.79

AMA Stock Quote and News: Click Here

"With record fuel prices, Airlines are looking for all ways to save on costs. AMA's afirs(TM) technology could prove to be the solution for all airlines in this competitive low profit margin industry."


Overview

AeroMechanical Services Ltd. provides proprietary technological solutions and services designed to reduce costs and improve efficiencies in the airline industry. The company has successfully patented and commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world. Its premier technology, afirs(TM) UpTime(TM), allows airlines to monitor and manage aircraft operations anywhere, anytime, in real-time.


Investment Highlights

  • afirs UpTime can save airlines up to $100,000 – 200,000 USD per aircraft every year. One airline estimates it will save 14 million litres of jet fuel annually through enhanced logistical planning with afirs technology.  Also, airlines will reduce fuel costs through weight savings, as afirs hardware is up to 15 times lighter than the major competing system.

  • The Company signed a contract with the government of China to provide their tools and technology on all commercial aircraft in China.

  • With 29 different airlines around the world using AeroMechanical's afirs technology in close to 700 planes, The Company continues to demonstrate both the need for their technology as well as their potential market share as more airlines come onboard to utilize their technology.

  • AeroMechanical Services Ltd. announced in Mid May that they have received a contract from an African scheduled service and charter airline to outfit nineteen aircraft with AMA's patented afirs(TM) UpTime(TM) system. The contract is for a 5-year term whereby AMA will provide AMA's patented afirs(TM) UpTime(TM) solution on nineteen aircraft.  The gross revenues to AMA under this agreement would be approximately $2,874,200.


Profile

Currently, most of North American and Western Europe use VHF Radio to transmit critical airline operations to ground crews. However, the problems with VHF communications are that airlines need to wait until the aircraft has landed to get this critical information.  Also, there is no VHF infrastructure in certain areas such as China, India, South America and over the Pacific Ocean. 

AeroMechanical Services afirs system overcomes VHF communication lapses because the afirs system uses satellites to beam critical operations information to airlines, anywhere in the globe, at any time.  The afirs system effectively manages fuel consumption, decreases airline delays, improves logistics and safety, and increases efficiency and accuracy in airplane log books. 

The Company signed a contract with the government of China to provide their tools and technology on all commercial aircraft in China.  With record fuel prices, and tight competition, Airlines are looking for all ways to save on costs.  With over 29 different airline carriers using the afirs technology on 700 planes, clearly there is a need and a market for AeroMechanical Services Ltd.'s technology in this competitive low profit margin industry.

afirs UpTime is a satellite-based Automated Flight Information Reporting System (afirs) that allows airlines to manage and monitor aircraft operations anywhere, anytime in real-time.


afirs UpTime

Airlines benefit from afirs UpTime via several methods:

  • Effectively managed and monitored fuel consumption.
  • Decreased delays.
  • Improved logistics and safety.
  • Eliminated rounding errors and biases in reporting.
  • Increased efficiency and accuracy in log books.

afirs UpTime gathers, stores, and transmits data and delivers information to the Company's customers. The solution is a complete system from sensor to end user, with data, voice, and e-mail capabilities:

What data is read, captured, transmitted, and reported?

afirs UpTime reads, stores, transmits and reports the most critical elements of flight operation and maintenance from various sources on the aircraft, including (P)OOOI information, engine trend information, and engine and airframe exceedence information.

How do airlines save money?

afirs UpTime allows airlines to become significantly more profitable by:

  • Reducing fuel costs through weight savings, as afirs hardware is up to 15 times lighter than the major competing system.
  • Enhancing safety through accurate and timely monitoring of aircraft systems.
  • Decreasing delays as a result of enhanced logistics planning capabilities.
  • Reducing fleet under-utilization and eliminating discrepancies with log books.

How much do airlines save?

afirs UpTime can save airlines up to $100,000 – 200,000 USD per aircraft every year. One airline estimates it will save 14 million litres of jet fuel annually through enhanced logistical planning with afirs technology.

Who are the competitors?

The major competitor is an aircraft communication system relying primarily on costly VHF (very high frequency) and HF (high frequency) services allowing for only text-based communications.

The afirs UpTime system sets itself apart from the competitors with our patented technology and LIVE REAL-TIME communication.


Other Products

Underfloor Stowage Unit

AMS’s Underfloor Stowage Unit is the ideal space for all the mandatory manuals and equipment stipulated by new security regulations imposed after 9/11.

Lightweight and easy to install, the stowage unit can easily be accessed from the cockpit even when the jump seat is being used. This unit is available for select CRJ, Challenger, and DHC-8 models.

Key benefits of the Underfloor Stowage Unit include:

Easy access to key manuals during flight

  • Reach all your manuals while seated.
  • Access manuals even when the jump seat is in use.
  • Keep the cockpit organized with everything in its place.

Improved cockpit security

  • Significantly increased stowage on the flight deck without accessing the main cabin.
  • Convenient divider allows for multiple uses of stowage unit.
  • Optional Locking Mechanism.

Reduced costs

  • Decrease wear and increase life of flight manuals.
  • Keep accumulated water off the floor and out of the compartment with the built-in drainage system.
  • Remove unit quickly for access to E-bay.

Easy installation

  • Ready to install kit, complete with required STCs.
  • Modified floor panel enables installation in a few hours.

AeroQ™ Cabin Cleaning System

The result of several years of research and development work, the AeroQ Cabin Cleaning System is designed to reduce the risk of infection from surfaces in passenger aircraft due to biofilm infestations.

Tests have proven it to be highly effective against a large number of pathogenic organisms, including those that cause a variety of gastrointestinal infections, tuberculosis, and other respiratory infections. AeroQ could also be effective in combating diseases such as pandemic influenza and avian flu. The solutions used in the AeroQ Cabin Cleaning System are currently being tested in Boeing labs to ensure their safe use on Boeing aircraft.


Partnerships

AMS has strategic partnerships with sales and service organizations worldwide including Meggit, Europe’s top provider of high-tech products and systems for the aerospace industry, and Hawker Pacific, the largest aviation sales and support company in South-East Asia, the Pacific, and the Middle East. Specializing in global reach, AMS has identified two major markets in Asia – China and India - as the two fastest growing aviation markets in the world.


Recent News and Press Releases

 
Management Team

Bill Tempany, CEO

Bill has more than 30 years of senior management experience in hi-tech companies and more than 10 years' experience in the public market. Mr. Tempany has been the CEO of AMS since March 2003.

He was founder, President, and CEO of Fintech Services Ltd. (now Sylogist Ltd. TSX.V:SYZ), President and founder of QByte Services Ltd. (now owned by IBM), and a consultant in the international Oil and Gas industry to companies such as Ziff Energy and Petrobras.

Darryl Jacobs, President

Darryl has been involved in aerospace business development, aircraft maintenance and manufacturing management, and research development in North and South America, Europe, Africa, the Middle East, and Asia for more than 18 years. Mr. Jacobs is past president of the Alberta Aerospace Association and well-versed in the activities of the aerospace industry and government policy in Alberta, Canada as well as internationally.

Tom French, CFO

Tom is a Certified General Accountant with 26 years of experience. He has worked in global aviation and is experienced in dealing with a number of multi-national companies. Most recently, Mr. French was the CFO for Eagle Copters Ltd., a privately held aircraft and parts manufacturing, sales, leasing, and heavy overhaul organization.

John Brom, COO & Strategic Initiatives

30 years experience in commercial aviation in the engineering, maintenance and airline operations departments. A long time afirs UpTime user and proponent with a keen instinct for helping airlines save money.

Pat Sandall, Vice President Sales and Marketing

Pat has over 22 years of experience in various business development and sales management positions. Prior to joining AMS, Ms. Sandall was very focused and effective at establishing strategies and building relationships with executives to provide solutions for their business needs at IBM.


Contacts

AeroMechanical Services Ltd.

300, 2421 - 37 Ave NE
Calgary, AB Canada T2E 6Y7
Telephone: 1-403-250-9956
Toll-free: 1-866-250-9956
Facsimile: 1-403-291-9717
Email: support@amscanada.com


SEDAR Filings

AMA filings with SEDAR can be found here. All Fillings are current and the Company is fully reporting.


FORWARD LOOKING STATEMENTS

This report includes forward-looking statements that reflect AeroMechanical Services Ltd. current expectations about its future results, performance, prospects and opportunities. AeroMechanical Services Ltd. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause AeroMechanical Services Ltd.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.


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AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for AeroMechanical Services Ltd. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

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