FLYHT Aerospace Solutions Ltd.TSX.V: FLY

April 2014

DisclaimerForward Looking Statements

This discussion includes certain statements that may be deemed “forward-looking statements” that are subject to risks and uncertainty. All statements, other than statements of historical facts included in this discussion, including, without limitation, those regarding the Company’s financial position, business strategy, projected costs, future plans, projected revenues, objectives of management for future operations, the Company’s ability to meet any repayment obligations, the use of non-GAAP financial measures, trends in the airline industry, the global financial outlook, expanding markets, research and development of next generation products and any government assistance in financing such developments, foreign exchange rate outlooks, new revenue streams and sales projections, cost increases as related to marketing, research and development (including AFIRS 228), administration expenses, and litigation matters, may be or include forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on a number of reasonable assumptions regarding the Canadian, U.S., and global economic environments, local and foreign government policies/regulations and actions and assumptions made based upon discussions to date with the Company’s customers and advisers, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include production rates, timing for product deliveries and installations, Canadian, U.S., and foreign government activities, volatility of the aviation market for the Company’s products and services, factors that result in significant and prolonged disruption of air travel worldwide, U.S. military activity, market prices, foreign exchange rates, continued availability of capital and financing and general economic, market, or business conditions in the aviation industry, worldwide political stability or any effect those may have on our customer base. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.

Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to have been correct. The Company cannot assure investors that actual results will be consistent with any forward-looking statements; accordingly, readers should not place undue reliance on forward‑looking statements. The forward-looking statements contained herein are current only as of the date of this document. The Company disclaims any intentions or obligation to update or revise any forward-looking statements or comments as a result of any new information, future event or otherwise, unless such disclosure is required by law.

www.flyht.com

AFIRS Technology

“A six pound heavy-weight that will drive a cultural change on how an airline operates and manages its data.”

Works on any aircraft

Continuous monitoring

Safety and economic benefit

Enhances all existing technologies

Global coverage Expanding menu of applications

Offers real-time data transmission

Satellite based Iridium Network

The AFIRS UpTime Solution

FLYHT Products

AFIRS • Regulatory certification for installation on 30 widely used aircraft types• AFIRS 220 1,500,000 flight hour mark• AFIRS 228B in the field and generating revenue• AFIRS 228S Certified for safety services use• AFIRS Dragon for Helicopters and light aircraft

UpTime• Introduced in 2004• Converts small data packets into valuable information• Allows aircraft operators to manage and monitor operations • AFIRS gathers, stores, analyzes and transmits data• UpTime is a client-web interface that delivers information in real-time• Reports to aircraft operators via e-mail, browser or

integrated to systems

Value Add Products

FLYHTStreamTM • An emergency data streaming mode• Can be manually activated by the flight crew, ground support or automatically triggered

by predefined emergency parameters• FLYHTStream sends critical data such as global position, equipment status and black

box information to ground-based operations• Patent pending service uses the Iridium satellite network

Flight Data Management (FDM)• SMS Dashboard

FLYHTFuel • Automatically identify fuel consumption trends

AFIRS Dragon – The Market Entry Product

• Text, Voice and Flight Data, all in one

• Light carry on product

• No STC required

• iPad integrated interface

• Certified by FCC and Iridium

• Battery or power operated

• UpTime enabled

• GAMS (China) compliant

Investor Consideration

•Unparalleled, proprietary, patent pending real-time data streaming technologies

•Commercial today with significant and growing base of customers

•Recognized global leader airline industry with quick payback

•Saving customers money, time and driving efficiencies

•Scales to large multi-aircraft contracts

•Proven recurring revenue model with multi-year contracts

•Absolute customer satisfaction to date

Accomplishments •L-3 Communications selling AFIRS to Airbus for factory installs

•NetJets Europe rolling out on Hawker Fleet

•Patents U.S., Europe, China, Canada, Brazil, India & Turkey

•Market and business drivers accelerating opportunities to scale quickly

•Crossed major barriers to entry in aviation industry including regulatory, technological and customer testing and acceptance

•Strong relationships with regulators in Canada, US, Europe, China, Nigeria and with airframe builders such as Airbus, Alenia Aermacchi, Bombardier, Embraer, AVIC and COMAC

•2014 will be an exciting year

Capital Market ProfileFLYHT provides proprietary technological products and services designed to reduce costs and improve efficiencies in the airline industry. The Company has patented and commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world.

FLYHT Aerospace Solutions Ltd.300E, 1144 – 29th Avenue NECalgary, Alberta, Canada T2E 7P1Telephone: 1-403-250-9956Facsimile: 1-403-291-9717Email: info@flyht.com

• Regulatory Filings: SEDAR• Incorporated: September 17th 1998• Transfer agent: Valiant Trust Company - 1-866-313-1872 or inquires@valianttrust.com• Auditors: KPMG

FLYHT’s headquarters are located in Calgary, AB, Canada and has been since inception in 1998. The Calgary office has 42 of the 47 employees; we have representation in China, the Middle East, South America, Africa, United States and Europe. The Company has been publicly traded on the Toronto Venture Exchange since March 2003, as AMA and since May 2012 under FLY

Capital Market Profile……cont’dat April 17, 2014

Share Price $0.54

Market Capitalization (per TSX:V) $88.0 million

52 week low $0.135 high $0.80

Shares (per TSX:V) 163.0 million

Share Structure – At December 31, 2013** Management, Directors and Officers

Diluted 180.2 million

Institutional Ownership % Approx. 40.0%

Insider Holdings** 4.4%

2010 2011 2012 2013 % Improvement

Revenue $4.7 $5.5 $6.5 $8.0 23.7%

R&D Expenditures $5.8 $3.3 $2.4 $2.1 9.4%

Loss (before R&D) $3.2 $3.2 $2.5 $1.8 24.0%

Net Loss $9.0 $6.5 $4.9 $4.1 16.8%

Disputed AP $0.0 $1.8 $1.8 $1.8

Financial Results Snapshot– ($millions)

One Year Performance

                                                                                                      

                                                                                                                                                                                                                                                          

                                                                                      

Competitive Analysis

• No other product offers breadth of AFIRS

• Satcom only included Aircell, Skytrac, Latitude, Guardian• ACARS over Iridium include ICG and Avionica • FLYHTStream has no competitor• Real time FOQA has no installed competitors• EFB connections have no installed competitors

• AFIRS is certified for all of the above

• Patents and patent pending exist on the technology

• Proven cost savings

• OEM installs help the buying decision

Market Drivers •Need for better communications acknowledged in FANS and CPDLC

•BEA report on AF447 disaster and recommendations leads to mandates

•Pilots want iPads not luggage

•Customer evaluations show savings of $100,000 per plane per year

•Airlines save money with better and more timely information

• reduce turn around time

•  reduce fuel consumption

• have the right people in the right place at the right time

• reduce repair costs by having better information to make decisions

• Regulatory environment is a natural barrier to entry

• FLYHT holds patents on its technologies

• Obtained nearly 60 Supplemental Type Certificates (STC) for 30+ models

•Required for installation on each aircraft type

•Additional STCs are pending or in progress

•A decade of developing industry relationships

•Went through strenuous due diligence processes by customers, partners and regulators

Massive Barriers To Entry

Business Model

Certify and Sell Kits

Build Applications

Recurring Revenue

• AFIRS™ 220• AFIRS™ 228B• AFIRS™ 228S

• Fuel management• Engine trending

• Cockpit data• Exceedence

reporting

• Bill for hourly flight usage per

month • Monthly charges

for applications

Hardware Software Usage

Recurring Revenue Model

• Sell AFIRS with necessary engineering package to install and activate

• $35 to $60 thousand per aircraft for retrofit

• Factory install at Airbus gets royalties from L3

• Provide various functions on usage basis

• Operational features to provide cost savings for customer

• Voice and data connectivity to the cockpit for safety

• Average recurring revenue greater than $1200 per month per aircraft

• Recurring revenue gross margin 80%

Avionics Investment drives Recurring Revenue

20042005

20062007

20082009

20102011

20122013

20142015

20162017

-$1,000

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000 R&D Exp Recurring Rev Hardware Rev

• R&D investment creates significant recurring revenue opportunities

• Hardware asset life of 10-30 years creates large, long term recurring revenue streams

• AFIRS 220

• $1.2 mm investment

• $15 mm hardware revenue

• $75 to $100 mm in recurring revenue at 80% margin.

M2M

Flight FollowCommunicate & Log

Notify and Alarm Air Frame Exceedance

UpTimePresent

ControlEngine Trend

Fuel

FDM

Optimize

BPIVa

lue

to C

usto

mer

Turning Data into Information

Customer Feedback

•“FIRST is a key element to any fuel conservation initiative, it is the big “M” within the PEMC framework – Plan, Execute, Measure, Correct. And the system does it accurately and timely, always.

•The dash-board functionality gives the Operations Manager the right information at the right time to make the best decisions. Now it is possible to act, on the spot, using actual and unbiased data.

•Also, the “what-if” capacity is widely used in scenario analysis, my company can discuss different operation scenarios and operation policies with immediate calculation of potential savings, without the need to perform special test flights or waiting for new flight data.

•FLYHT knowledge and flexibility to accommodate specific requirements is remarkable and makes the AFIRS and FIRST solutions a “must have” solution to the aviation companies engaged to be the most efficient as possible in terms of fuel usage”

Using Information to Monitor

Company Making Opportunities

• Airbus factory and fleet installs

• China with Satcom mandate

• C130 upgrade programs

• Business aviation evolution

China Opportunity

• China has mandated satellite communications for all aircraft

• Benefits of FLYHT - Iridium relationship now recognized and approved

• Inmarsat is the alternative satellite system, but Iridium is more reliable and economical

• Exclusive distribution agreement with SkyBlue Technologies (Gov’t owned)

• 30 installed to date on 7 carriers

• Large potential is realistic but forecasting and timing are difficult

C130 Up Grades

• 2,442 on the planet in service

• Major overhaul centers

• CMC in Montreal

• 20 installed at RSAF

• IAccess in California

• 6 shipped

• Snow Aviation in Cincinnati

Business Aircraft Strategy

• NetJets is a Berkshire Hathaway company

• Largest global fractional operator

• Total global fleet – 650+ business jets

• Conducted 2 Year in Service Trial

• Initial Contract (Europe) – Hawker Beechcraft

• 10 operational

• $6 million 5 year contract

• $2k/month/aircraft once installed

• Contract represents less than 5% of total global fleet

• OEM’s being approached as NetJets refreshes it’s fleet

2014 Management Objectives

• Ramp up China installs to meet mandate

• Install on 2 business aircraft OEMs

• Expand service modules to increase revenues

• Pursue additional commercial OEM opportunity

• FY2014 positive results from operations

Officers/Senior Management

Bill Tempany, Chief Executive OfficerMr. Tempany has more than 35 years of senior management experience in hi-tech companies and more than 15 years’ experience in the public markets. He has been CEO of FLYHT since March 2003 and added President to his title January 1, 2012. He was founder, President and CEO of Fintech Services Ltd., President and founder of QByte Services Ltd. (now owned by IBM), and a consultant in the international oil and gas industry to companies such as Ziff Energy Group and Petrobras.

Matt Bradley, PresidentMr. Bradley has more than two decades of experience in military and civilian aviation. He worked with Skyservice Airlines for the last 10 years as a Captain and Check Pilot. With Skyservice, he worked extensively in the area of fuel management, implementing a satellite communication and fuel efficiency initiative that saved the airline over 3% of the annual fuel budget.

Thomas French, CGA, Chief Financial OfficerMr. French is a Certified General Accountant with more than 30 years of experience. He has worked in global aviation and is experienced in dealing with a number of multinational companies. Most recently, Mr. French was the CFO for Eagle Copters Ltd., a privately held aircraft and parts manufacturing, sales, leasing, and heavy overhaul organization.

Derek Graham, Chief Technical OfficerMr. Graham has more than 10 years of combined aeronautical satellite product development and management experience, Derek brings extensive depth and leadership to the FLYHT Team. Derek has previously worked at a major avionics manufacturer for 10 years in product line Management and development responsible for a line of successful aviation Iridium and Inmarsat communications products

Officers/Senior Management……cont’d

Jeff Brunner, P.Eng., VP Certification Engineering and China OperationsMr. Brunner is a professional engineer with over 18 years of experience in the aviation industry. After receiving avionics engineering and aircraft maintenance training from Southern Alberta Institute of Technology, Mr. Brunner worked in aircraft maintenance before completing a bachelor’s degree in mechanical engineering from the University of Calgary. He joined FLYHT in 2005, initially serving as head of the Company’s engineering department, where he led the initiative to have FLYHT certified by Transport Canada as a Design Approval Organization (DAO). Mr. Brunner is also a Transport Canada delegate under FLYHT’s DAO.

Kent Jacobs, Technical FellowMr. Jacobs is a professional pilot with a computer science degree who was the first employee of FLYHT. He is the founding developer of the AFIRSTM system. What started out as a box that fit in a coat closet, the AFIRS system is now the size of a loaf of bread, is installed on aircraft and is the center of FLYHT’s business. Kent is also the lead developer of the Fuel and FLYHTStreamTM systems.

Graham Ingham, Director, Service and SupportMr. Ingham has over 20 years of civil aviation experience. During the course of his career, he has flown many types of transport category aircraft that includes the B727, B737 and A320/A330 aircraft. Additionally he has held several Managerial positions which include Manager, Flight Training for Skyservice Airlines, Training/Check Pilot A320 and most recently Director, Flight Operations for First Air.

Michael Fang, Vice President China OperationsMr. Fang is an Avionics Engineer with more than 15 years of work experience in the Chinese aerospace industry. He has worked with both the Chinese Airlines and Chinese government regulators. He holds an MBA from the Haskayne School of Business at the University of Calgary.

Board of DirectorsBill Tempany- President and CEO, Audit CommitteeMr. Tempany has more than 35 years of senior management experience in hi-tech companies and more than 15 years experience in the public markets. He has been CEO of FLYHT since March 2003. He was founder, President, and CEO of Fintech Services Ltd. (now Sylogist Ltd.), President and founder of QByte Services Ltd., and a consultant in the international oil and gas industry to companies such as Ziff Energy Group and Petrobras.

Mike Brown – Governance Committee, Compensation Committee Mr. Brown is a lawyer with the firm of Geselbracht Brown and practices in the areas of Business Law, Real Estate Law, Wills & Estates and Civil Litigation. Mr. Brown is currently Chair of the Board of Governors of Vancouver Island University (V.I.U.) and was a strong leader in the logistical and legal challenges of the transition of V.I.U. from a university college to full university status. During that process he was instrumental in the creation and implementation of a governance process for the new V.I.U. Within his community he has also been actively involved with the United Way, the Nanaimo Dragon Boat Festival Society, Crime Stoppers, the Nanaimo Rotary Club and the Nanaimo Chamber of Commerce. Mr. Brown is a graduate of the Faculty of Law at the University of Ottawa. He has served on the FLYHT board of directors since March 2003.

Richard Hayden Mr. Hayden, an engineer by training (BS, Norwich University; MS, Purdue University), has led the development and successful transition of new monitoring and diagnostic technologies and products in the aviation field for 25 years. As founder and CEO of Technology Integration Inc., he provided vision and collaborated with end users, OEMs, and industry partners to optimize product capabilities and suitability, as well as building staff and partners who created two innovative products that are now industry standards. Mr. Hayden was with Meggitt, a U.K.-based supplier of aviation products from 2002 until June 2008. He joined the FLYHT board in July 2008.

Board of Directors……cont’dJack Olcott – Governance Committee, Compensation Committee Mr. Olcott was educated as an aeronautical engineer (BSE & MSE, Princeton University; MBA, Rutgers University) and has a certificate in leadership training from the Kennedy School of Government of Harvard University. Mr. Olcott began his career in business aviation and was involved with creating a flight research laboratory at the Indian Institute of Technology/Kanpur. He also obtained and managed flight mechanics contracts issued by NASA and private industry. In the early 1970′s Mr. Olcott began a career in aviation journalism where he was Editor and Publisher of Business & Commercial Aviation magazine and a Vice President of McGraw-Hill’s Aviation Week Group. Mr. Olcott joined the National Business Aviation Association as President in 1992 and held that position until 2003. He is currently President of General Aviation Company. He joined the board of directors of FLYHT in May 2008.

Paul Takalo – Audit CommitteeMr. Takalo is a Chartered Accountant who was employed with Grant Thornton from 1985 to 2005 and spent the last five years of his time there as Audit Partner. From July to November 2005 Mr. Takalo provided consulting service. Since November 2005 he has held the position of Vice President, Finance with Standen’s Limited. Mr. Takalo has been on the FLYHT board of directors since May 2008.

Doug Marlin – Chairman, Audit Committee, Governance Committee, Compensation Committee Mr. Marlin has been President of Marlin Ventures Inc., a Canadian-based consulting firm, since January 1997. He is a Director of Zed.i Solutions Inc. as well as a Director for JDA Software Group Inc. Mr. Marlin was previously President of JDA Software Ltd. from 1981 to 1996. He has served on the FLYHT board of directors since March 2003.

Jacques Kavafian – Governance Committee, Compensation CommitteeMr. Kavafian is an independent business man., based in Richmond Hill, ON. He is well known to the investment, aviation and travel communities with more than 26 years of experience as an analyst on Bay Street, covering companies in the airline, aerospace and leisure industries. He was Vice-President and Analyst with Research Capital from August 2004 to October 2009. Mr. Kavafian joined the FLYHT board of directors in December 2010.