SOURCE: Aerospace Product International

April 15, 2008 11:37 ET

API to Provide Total Supply Chain Management to Lufthansa's Airline Training Center - Arizona (ATCA)

MEMPHIS, TN--(Marketwire - April 15, 2008) - Aerospace Products International, Inc. ("API"), a wholly-owned subsidiary of First Aviation Services Inc. (PINKSHEETS: FAVS), a leading supplier of innovative distribution and supply chain services for the aviation industry, announces a long-term agreement with Airline Training Center Arizona, Inc. ("ATCA"), a wholly-owned subsidiary of Lufthansa Flight Training GmbH, a Lufthansa German Airlines company (FRANKFURT: LHAN). As part of the preferred supplier/preferred customer contract, API will provide all spare parts forecasting, procurement, and delivery services, including on-site inventory and program management at ATCA's Goodyear, AZ facility.

API's inventory management expertise forms the foundation of the API-ATCA partnership. API's robust demand forecasting and inventory planning capabilities will provide ATCA with high levels of guaranteed, in-stock (on-site) product availability. Furthermore, API will consign spares inventory to ATCA's Goodyear, AZ location, providing extra value by reducing ATCA's working capital investments.

API's Electronic Supply Program ("ESP") solution will track ATCA inventory levels in real time and capture all usage information by serial/lot number and work order or aircraft tail number in order to provide ATCA with valuable data for management decisions. ESP is API's web-based inventory management service that capitalizes on easy-to-use technologies, including handheld Pocket PCs/barcode scanners and a hosted database, to allow customers to track inventory transactions, view global inventory status and automatically replenish stocks. Both ATCA and API will capitalize on ESP's automated replenishment and shelf-life management features to maximize product availability and generate increased cost-efficiencies. Implementation of ESP requires no IT investment. ESP is web-based and can be used from any computer with Internet access. API also helps implement ESP, including stockroom set-up, barcoding, and inventory planning.

Ultimately, API's management of ATCA's entire supply chain will provide ATCA with one, consolidated source for all aircraft spares and related MRO supplies.

"The Lufthansa family of companies are known as market leaders throughout the aerospace industry. ATCA's selection of API speaks volumes of API's ability to provide reliable delivery of product at a low total cost, ultimately providing tremendous value to the aviation community," says Dr. Ahmed Metwalli, API's President and Chief Operating Officer. "We are proud and excited to have been selected by ATCA to provision and manage their material requirements."

"As Lufthansa's Pilot School in Goodyear, Arizona we operate and maintain more than 70 single and twin engine aircraft. Reliable spare part procurement is essential to fulfill our stringent training schedule. We are confident that with API's expertise and infrastructure we will greatly improve this reliability as well as keep the cost at a manageable level," adds Bjorn Suren, Vice President and CFO of ATCA.

API offers worldwide customer service 24 hours per day, 7 days per week, 365 days per year (+1.888.API.24X7 or +1.901.365.3470 extension 2171) through strategically located distribution centers and partnerships in the USA, Canada, China, Philippines and Europe.

About Aerospace Products International

Aerospace Products International, Inc., headquartered in Memphis, Tenn., is the leading provider of innovative distribution and supply chain services for the aviation industry. API distributes aircraft parts and related products and components to manufacturers, maintenance providers, and operators of some of the most widely used commercial, corporate and general aviation aircraft. In addition to its product supply services, API offers the aviation industry extensive supply chain management and third-party logistics services and solutions, including forecasting and procurement services, inventory management, rotables management, and product sales. API also offers overhaul and repair services for brakes and starters/generators, and builds custom hose assemblies. Its parent company, First Aviation Services Inc., is a worldwide leader in providing services to the aviation industry. More information is available at http://www.apiworldwide.com and http://www.firstaviation.com.

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