SOURCE: Global Aircraft Solutions, Inc.

February 26, 2008 08:30 ET

Global Aircraft Solutions Announces the Sale of a 737-200 to Canadian North

TUCSON, AZ--(Marketwire - February 26, 2008) - Global Aircraft Solutions, Inc. (OTCBB: GACF) today announced that it has sold one 737-200 aircraft (SN 23074) to Canadian North for $2.8 million plus additional MRO services which are to be provided by Global's wholly owned subsidiary, Hamilton Aerospace Technologies, Inc. The Company has used $730,000 of the sale proceeds to permanently reduce the principal amount of its senior debt which currently stands at $9 million.

Global also announced that, after numerous contract extensions, it had defaulted Pamir Airways, the undisclosed buyer of two 737-200 aircraft previously referenced in the Company press release dated October 16, 2007. In its default notice to Pamir, Global notified Pamir that Global was excused from any obligations arising from the Purchase Agreement between the parties, and that Global was retaining $1.5 million in deposits from Pamir as liquidated damages.

John Sawyer, President of Global Aircraft Solutions, commented, "We are pleased to have sold the first of the five 737-200 aircraft we received as part of our settlement agreement with BCI. We have also executed letters of intent and accepted deposits on two additional 737-200s and one MD82. We hope to finalize and announce these additional sales transactions shortly. Once completed, the sale of these aircraft will allow the Company to continue improving its operating liquidity and further reduce its senior debt."

Additionally, management is advising its shareholders that that the Company anticipates booking a loss for its fiscal year ending December 31, 2007. This aniticipated loss is principally a result of liquidity problems and reduced revenues due to delays in closing certain aircraft sales transactions and non-performance by the customer on aircraft sales that were signed in 2007. One-time finance costs and the anticipated write-off of some significantly past due receivables are also expected to contribute to a loss projected for the fourth quarter 2007.

Ian Herman, Chairman and Chief Executive Officer of Global Aircraft Solutions, stated, "2007 was a difficult year for the Company, and which we anticipate will show a loss for the first time since 2003. However, given the refinancing we were able to complete at the end of 2007, and the aircraft sales and maintenance business we now have in hand and have pending, I am confident that Global will return to profitability in 2008, starting with the first quarter of this year."

About Global Aircraft Solutions, Inc.

Global Aircraft Solutions, Inc. is an integrated aviation company engaged in aircraft trading, aircraft parts sales, and scheduled maintenance, repair and overhaul (MRO) services for commercial airlines, charter airlines and aviation leasing companies. Hamilton Aerospace and World Jet, both wholly owned divisions of Global Aircraft Solutions, operate from facilities comprising approximately 25 acres located at Tucson International Airport. These facilities include hangars, workshops, warehouses, offices and other buildings. Notable customers include Avolar Airlines, Jetran International, Goodrich Corporation, AAR, the Mexican Government, Afrijet Airlines, Pegasus Aviation, Aloha Airlines, Alant Soyuz, United Breweries Holdings and Global Aircraft Leasing Partners.

Global's website is located at www.globalaircraftsolutions.com. The Hamilton Aerospace website is located at www.hamaerotech.com.

Safe Harbor

Except for the historical information presented, this press release contains "forward-looking statements" made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 or regulations thereunder including, but not limited to expected and estimated revenue and earnings. Forward-looking statements are made based upon management's expectations and belief concerning future developments and their potential effect upon the Company. There can be no assurance that future developments will be in accordance with management's expectations or that the effect of future developments on the Company will be those anticipated by management.

The words "believes," "expects," "intends," "plans," "anticipates," "hopes," "likely," "will," and similar expressions identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company or its subsidiaries or industry results, to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements. These risks include the economic health of the airline industry, demand for Global Aircraft Solutions' services, and competitive pricing pressures.

In addition, other risks are detailed in Global's Form 10-K for the year ended December 31, 2006, and Global's Form 10-Q for the quarter ended September 30, 2007. These statements speak only as of above dates, and Global disclaims any intent or obligation to update them.

Contact Information

  • Contact:

    Global Aircraft Solutions
    Ian Herman
    (520) 275-6059
    Email Contact

    or

    Alliance Advisors, LLC
    Alan Sheinwald
    (914) 669-0222
    Email Contact