Airlines Adopt AeroMechanical Services' New Program To Cut Fuel Bills And Greenhouse Gas Emissions

Calgary, AB - AeroMechanical Services (AMA) uses patented technology and global aviation expertise to cut multi-million-dollar airline fuel bills by up to three to five per cent.

Airlines employing technologies developed by AeroMechanical Services Ltd, a world leader in providing real-time data communications and tracking for the aerospace industry, are reducing fuel consumption by up to three to five percent through the application of AeroMechanical's proprietary hardware, software and management expertise known as Total Fuel Management Information (TFMI). In addition to cost savings, users of AeroMechanical's TFMI are lowering carbon emissions and greenhouse gases generated by the aviation industry.

Richard Hayden, President of AeroMechanical, who has previously introduced successful high-value-added monitoring and tracking technologies into the helicopter community, described the new TFMI initiative as follows. "AeroMechanical's end-to-end afirs(TM) UpTime(TM) data capture and information delivery system provides operators and OEM's with a wealth of information that can lead to better operational and maintenance practices. Our strategy is to unlock all the benefits inherent in this information by developing high-value-added applications that respond to the critical issues facing our customers. None today is more critical than reducing fuel expenses".

"Our Total Fuel Management Information program is the latest, but certainly not the last, such action we're taking to align with our customers' needs. Fuel consumption cost savings go straight to the bottom line, and there are numerous opportunities to make safe but effective changes in operation procedures and maintenance planning to cut fuel consumption, as well as greenhouse gases that are a direct byproduct of the fuel burned. Under TFMI, AeroMechanical is introducing a consulting service, on a fee-for-service basis, as a complement to our patented products and information services, that will assist airlines in identifying opportunities to reduce fuel consumption, develop implementation roadmaps, and follow up with quantitative measurement of the degree of success of the initiatives to assist in full optimization. We have engaged recognized and accomplished industry experts to provide this service, and expect that if our TFMI program is widely adopted, our contribution to our customers could be measured in hundreds of millions of dollars saved and tons of greenhouse gases avoided."

AeroMechanical's initial product to be rolled out for launch customers under the TFMI initiative is branded as FIRST (Fuel Initiative Reporting System Tracker), which defines specific procedural changes, acquires and processes data associated with these procedures, and automatically analyzes and reports results in a form useful to managing the airline operation.

Two Canadian airlines that have deployed afirs UpTime are the first to report the impressive results achieved through the application of TFMI to their operations. Canadian North Airlines is experiencing reductions in fuel consumption that are anticipated to save the airline approximately 5% in fuel costs, amounting to roughly $250,000 per aircraft annually. Skyservice Airlines, based in Toronto, an early adopter of afirs UpTime, also reports similar reductions in fuel consumption rates through use of information from afirs UpTime and an advanced flight management system.

Skyservice Airline President and CEO Rob Giguere said, "In order to make effective and informed decisions, Skyservice requires accurate and timely fuel utilization data. AeroMechanical's Total Fuel Management Information system is the first and only suite of products we have seen that provides the comprehensive level of detail we need."

"At a time when fuel prices play such an important part in our profitability, Canadian North is very pleased to work with AeroMechanical Services," said Tracy Medve, the airline's President. "Canadian North Airlines is not only targeting a five per cent savings in fuel as a result of this program, we also hope to achieve significant reductions in greenhouse gases - both of which are extremely important to us as an operator flying in Canada's northern territories."

In addition to the high and volatile price of fuel, greenhouse gas emissions are becoming an increasingly important issue for the aviation industry everywhere in the world. Under the Europe Union's Emissions Trading Scheme (EU ETS) that is expected to be fully in place in 2011, all airlines flying through EU airspace must monitor and annually report their CO(2) emissions. Airlines must also reduce their emissions by 3% in 2011 and by 5% in 2013, levels that are consistent with the fuel savings expected under full implementation of TFMI. Many of AeroMechanical's present customers, which number more than 30 airlines worldwide, are evaluating the benefits of TFMI, including the system's ability to measure and reduce emissions.

Captain Marcel Martineau, Senior Aviation Consultant and world-renowned authority on fuel management, stated, "I have been working with AeroMechanical Services for some time now to help define a valuable solution for airlines. In my extensive experience with evaluations at numerous airlines, I am convinced that problems in accessing real, accurate and timely data make it difficult for airlines to manage a very expensive resource-fuel. The products of AeroMechanical Services, in addition to providing invaluable communication and operational control information, form the first system I have seen anywhere that can meet the challenge of providing essential and timely fuel management information."

Captain Martineau spent many years developing fuel optimization procedures for Air Canada and has worked with dozens of other airlines around the world to maximize their efficiencies in fuel utilization and greenhouse gas reductions.

AeroMechanical's recently restructured management team and new advisors were selected to link the capabilities of the company to the needs of the aviation community in today's environment of costly fuel and needed attention on emissions.

In addition to Mr. Hayden, a recognized leader in aircraft and engine condition monitoring who now leads the company as its President, AeroMechanical is pleased to announce that Matthew Bradley has been promoted to Vice President of Operations and will lead the TFMI initiative. Mr. Bradley will be responsible for the rollout and continuous improvement of the fuel management information products. Prior to joining AeroMechanical, Mr. Bradley worked at Skyservice Airlines, where he oversaw implementation of a very successful fuel management program tied to the deployment of afirs UpTime and advanced flight management systems. Mr. Bradley, a graduate of University of Toronto and a successful top-rated CF-18 pilot and commercial airline Captain, joined the company following 10 years with Skyservice where, following his flying career, he successfully led the implementation of the afirs UpTime system and Skyservice's fuel management program. Mr. Bradley stated, "I applied AeroMechanical's products and services to the real world of airline operations, and I was so impressed that now I am delighted to be part of the company."

Jack Olcott, formerly President of the National Business Aviation Association (NBAA), a recognized authority in the field of business jets and now a Member of the Aeromechanical Services, Ltd., Board, observed that "AeroMechanical's ability to provide instantaneous capture and transmission of an aircraft's condition, including its location, its airworthiness and its crew status, is a resource that is aligned with emerging trends in aircraft management, fuel efficiency, emissions and security. I believe AeroMechanical is well positioned to make a significant contribution to all aspects of aviation."

SOURCE: AeroMechanical Services Ltd.