FLYHT Aerospace Solutions Ltd. has announced a restructuring of its business operations to significantly reduce expenditures.
“We have reached an exciting and critical juncture in the 25-year history of FLYHT,” said Mary McMillan, interim CEO and executive chair of the board.
“After several years of hard work, the development of the AFIRS Edge product line is functionally complete. This milestone represents a significant achievement for our team and our company. As we move forward, we must now sharpen our focus, energy, and resources around sales and delivering our contracted backlog towards achieving positive EBITDA on a sustainable basis. There is both an opportunity and an imperative to retool the organization to focus on delivery of the promised returns to all our stakeholders while achieving significant cost savings.”
Added McMillan, “Unfortunately, fallout from these actions involves parting ways with some team members who have played critical roles in getting us to where we are today. Their individual contributions cannot be understated, and I want to express my sincerest gratitude for their performance and commitment to FLYHT.”
Concluded McMillan, “We are able to make this organizational change because we have substantially completed what we set out to do with the Edge: develop an industry leading 5G compatible wireless QAR (WQAR) and aircraft interface device (AID). We are releasing the 4MCU plug-in-replacement version, the Edge+, which we believe addresses the present and future requirements of the global airline community. The Edge+ is a world class ‘plug and play’ version which we believe will rapidly penetrate the market. Now is the time to focus on introducing the Edge products to the wider marketplace, deliver and grow our contracted backlog, including our weather portfolio and SATCOM solutions.”
To support this sharpened focus, Darrel Deane will take on the role of chief revenue officer (formerly vice-president, Solutions) and Gurjot Bhullar will take on the role of chief operating officer (formerly vice-president, Operations).
These reductions will impact 20 percent of FLYHT’s workforce, and is expected to contribute to fixed cost savings of $1.75 million CAD on an annualized run-rate basis.
FLYHT expects to record a one-time restructuring expense of approximately $770,000 in Q3 2024 related to the reduction in force, which includes severance payments and benefits to affected employees.
This press release was prepared and distributed by FLYHT.
