Investor Communications

FLYHT CEO Letter – Second Edition

March 2, 2016 Subject: Second Edition 2016 CEO Letter to FLYHT Shareholders: Tradeshow Attendance Dear Shareholders and Interested Parties; This second edition of our letter to shareholders will focus on the sales and marketing front, specifically an update from our VP of Sales and Marketing, David Perez, with information on the tradeshows his team is attending. Overall, the team will attend half a dozen shows in a six-month period to target FLYHT’s global markets.

Why does FLYHT attend tradeshows? What is the objective?

FLYHT has been in business for over 18 years and has participated in many industry working groups, international conferences and tradeshows, however is a relatively small player in the global aviation industry. We continue to work hard to educate and help airlines understand our core competencies and offerings. One way that FLYHT is addressing the need for increased awareness about our solutions is through tradeshow attendance. Tradeshows provide FLYHT a great opportunity to:

  • present our solution to a wide group of attendees,
  • share our knowledge of the industry by speaking at the tradeshow or presenting on a panel,
  • allow us to network with other vendors to identify potential partnership opportunities, and
  • allow us to learn about the direction of the market and our competition.

What tradeshows are best for FLYHT?

Not all tradeshows provide FLYHT the best opportunity to demonstrate our capabilities. FLYHT focuses on tradeshows that:

  • are located in areas that allow us to address our target market (mid-tier airlines operating regional aircraft with limited aircraft communications capabilities, i.e. those currently operating without ACARS),
  • have a Flight Tracking or Maintenance, Repair and Overhaul (MRO) theme to the conference, and
  • have a large presence from both Original Equipment Manufacturers (OEM) and airlines.

Recent tradeshow feedback

Aviation Flight Operations & MRO IT Show – Bangkok, Thailand (October, 2015) This show was located in an area that addresses our target market and aligns with our objectives. The conference had good attendance by both mid-tier and top-tier airlines as well as OEMs. Our booth at the show allowed us to demonstrate our UpTimeTM applications and obtain valuable feedback. This feedback has been passed back to our engineering team. This show has also led to follow-up demonstrations and meetings with potential customers/partners in the region including a MRO vendor. NBAA Convention – Las Vegas, Nevada (November, 2015) This show is attended by many OEMs for the business jet community. These OEMs are considering solutions that allow them to improve aircraft tracking, as well as determine the health of the engines. The FLYHT message is tailored to this audience. FLYHT representatives attended the show, however did not exhibit as a cost effective way to meet with potential clients and partners. Many of the conversations from the conference have led to more detailed meetings, including discussions regarding possible integrations and joint solutions with suppliers. MRO Middle East – Dubai, UAE (February, 2016) MROs have expressed interest in working with FLYHT because of FLYHT’s ability to track the health of the aircraft and its engines. This show allowed FLYHT to meet with MRO companies and discuss our capabilities to support their businesses. Similar to the Bangkok show, the booth contained a demonstration of our UpTime user interface and we received positive feedback on our solution. We were able to meet with many of our suppliers but the show attendance was not as strong as we had hoped it would be. Singapore Air Show – Singapore (February, 2016) This show is located in a strategic market for us and aligns with our objectives. FLYHT was invited to participate with the Canadian Trade Commission Pavilion. This was a cost effective way to meet with many airlines and vendors without the overhead of our own dedicated booth. Additionally, the Canadian Trade Commission was able to introduce us to several airline executives in the region. The Trade Commissioners are an important ally to FLYHT and support our overall strategy for the region. This show and the follow-on discussions with airlines in the area have allowed us to market our products and services in this region including the potential to respond to airlines’ request for proposals.

  • Additional tradeshows in 2016: MRO Americas, Dallas, TX, April 2016
  • FLYHT is identifying one or two more shows to attend this calendar year

We believe the work we are doing on the marketing front will increase our market presence and better demonstrate FLYHT’s solution to the industry resulting in new opportunities. Please note that due to the anticipated release of our 2015 annual results on approximately the same schedule as in past years we will not publish an April letter to shareholders and will resume the letters on May 2. Thomas R. Schmutz CEO, FLYHT