CALGARY, April 1 - AeroMechanical Services Ltd. ("AMA") has learned via a press report on March 20th, 2008 that a customer of AMA, Aloha Airlines ("Aloha"), filed for Chapter 11 bankruptcy protection on March 20th, 2008. A subsequent press release on March 31st, 2008 announced that Aloha was ceasing passenger operations after March 31st, 2008 but plans to continue operating its cargo operations as well as special operations while the U.S. Bankruptcy Court seeks bids from potential buyers. At present time, AMA has received no formal documentation or notices from Aloha regarding its relationship with AMA.
AMA's financial exposure to this sad turn of events in the airline industry is difficult to fully determine as the formal plans for the entire Aloha aircraft fleet are unknown at this time. However, for the fiscal year 2007 gross revenue invoiced to Aloha amounted to 9% of cash based revenue. At present time, the accounts receivable from Aloha to AMA are considered current with only the January and February 2008 balances outstanding (a total of $47,061.03 amount outstanding).
Bill Tempany, CEO of AMA is quoted as saying "It is sad for everyone at AMA that Aloha will not presently be continuing its passenger operations. Aloha has been a great partner during our 4-year relationship. We continue to appreciate the support of Aloha.
While Aloha represents a large number of the total aircraft shipped with AMA (26%), the revenues from Aloha amounted to a small portion of AMA's total revenues. Aloha had contracted with AMA at lower rates than what we are currently contacting at as they were AMA's initial launch customer on many fronts and the agreements originally entered into reflect such conditions."
As new information is received by AMA on this matter we will update the public accordingly.
About AeroMechanical Services Ltd.
AeroMechanical Services Ltd. provides proprietary technological solutions and services designed to reduce costs and improve efficiencies in the airline industry. The company has successfully 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.
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.
Contactson AMS contact: Tom French
CGA
VP Finance & CFO
AeroMechanical Services Ltd
(403) 291-7427
tfrench@amscanada.com
Bob Beaty
The Howard Group Inc.
Toll Free: 1-888-221-0915
Info@howardgroupinc.com
www.howardgroupinc.com
