Airlines Adopt AeroMechanical Services' New Program to Cut Fuel Bills and Greenhouse Gas Emissions

    AeroMechanical Services Ltd.                 TSX-V Trading Symbol "AMA"
    A Tier 2 Industrial Issuer

    CALGARY, Oct. 23 /CNW/ - 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
    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
    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
    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

    About AeroMechanical Services

    AeroMechanical Services Ltd. is one of the world's leading providers of
real-time data communications for the aerospace industry. AeroMechanical is
based in Calgary, Alberta, Canada. The Company also has service locations in
the United States, China and Switzerland. AeroMechanical proudly serves a
global list of clients from over ten countries. AeroMechanical was founded in
1998 and has been publicly traded on the Toronto Venture Exchange (TSX.V: AMA)
since March 2003.

              afirs, UpTime, FLYHT and aeroQ are Trade Marks of
                         AeroMechanical Services Ltd.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.

    %SEDAR: 00016486E

For further information:

For further information: on AMA contact: Richard Hayden, President,
AeroMechanical Services Ltd, (403) 291-7446,,; Thomas French CGA, VP Finance & CFO, AeroMechanical
Services Ltd, (403) 291-7427,,; Bob
Beaty, The Howard Group Inc., Toll Free: 1-888-221-0915,,

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