SPREAD YOUR WINGS

TABLE OF CONTENTS
01 COMPANY OVERVIEW

02 BUSINESS JETS ACQUISITIONS

03 INTERNATIONAL TRANSATIONS AND AIRCRAFT SALES

04 PRE-PURCHASE INSPECTIONS

05 MAINTENANCE

06 10 STEPS TO SET UP A FLIGHT DEPARTMENT

07 AVIATION ASSETS PORTFOLIO

COMPANY OVERVIEW
 FIELDS
Founded by Jay
Faria in 1989 in Expanded to US in 30+ years of
Belo Horizonte, 2008 experience
Brazil
COMMERCIAL
Over 300 aircraft
Over 350 clients imported and
Global operations
served exported to more
TECHNICAL
than 25 Countries

Technical team of aeronautical

engineers and aircraft mechanics, FINANCIAL

with more than 90 years of combined

experience in aviation
 PORTFOLIO OF SERVICES
FINANCIAL LEGAL
Aircraft Transactions Import and Export
Market Forecasting Federal Aviation Agencies Regulations
Valuations, Appraisals and Depreciations Insurance
Investment in Aviation Assets for Resale Litigation Technical Support
Operational Costs
FIELD
MANAGEMENT Boreoscope Inspection
Compressor “Top case” repair
Aircraft Operations
Engine, Components and Airframe Maintenance
Manufacture Maintenance Programs
MAINTENANCE
Warranty Programs
Scheduled and Non-scheduled Inspections
Avionics repair, removal and installations
CONSULTANCY
PARTS
Acquisitions and Exit Strategies
Aviation Assets Advisory Garmin Dealer
Economical Repair Analysis Sales
Sourcing
Operational Risk Analysis Evaluation
 SCOPE OF SERVICES
Investment in
Aircraft Acquisition Aircraft
Remarketing Aviation Assets for Exit Strategies
Consultancy Maintenance
Sale

Manufacture Technical Aspects:

Upgrades and Warranty
Maintenance Current/Future Records
Retrofit values Programs
Programs

Airframe and
Delivery & Re
Engines
Storage Programs Ferry Flights Hangar Services Delivery
Maintenance
Inspections
Programs

Technical
Inspections
 CUSTOMERS
UBS

BNP Paribas

Morgan Stanley

Deutsche Bank

Natixis
 Airtrade
Jay Faria

AirTrade
AAC Tradewinds
Capital
Aircraft Mgmnt Maintenance Portfolio Management

Real Assets Credit

Portfolio Portfolio
Aircraft Maint. & Insurance

CORPORATE STRUCTURE
ORGANIZATIONAL CHART
 MEET THE TEAM

Jay Faria Andrea Faria Harry Driscoll

President & Commercial Vice President & Operations Manager
Director Managing Director

Selma Soti Damien Schaefer Raphaela Brant

General Manager European Sales Finance Manager
Manager
 MEET THE TEAM

Gustavo Zummel Obadias Pires Wilton Alves

AirTrade Capital Aircraft Mechanic Aircraft
Maintenance
Planner

Taciana Faria Gina Levine Luciene Vieira

Legal Associate Administrative Procurement
 FACILITY
Fort Lauderdale Executive Airport (KFXE)
1550 NW 62nd St. Hangar 18
Fort Lauderdale, FL 33309
 HIGHLIGHTS OF OUR AVIATION HISTORY
ACQUISTION CONSULTANCY More than 400 contracts in the last 30+ years.

30+ years of consecutive work with more than 300 aircraft

MAINTENANCE serviced.

We have been personally in over 50 countries performing

GLOBAL OPERATIONS aviation businesses.

Our technical team is composed of qualified professionals and

HIGHLY QUALIFIED TEAM certified by manufacturers and aviation authorities.
 AVIATION MARKET
• There is no geographical effect (if Europe is in • Market is fully audited and controlled.
crisis, fly to China!). • Number of aircraft sold and delivered are fully disclosed
• The business jet market is expected to grow and can be researched and analyzed, which allows a
41% on the US and 108% Worldwide over the complete view of the market.
next 20 years.
• Price fluctuations are very low (history). Depreciation is
predictable (appreciation is the case!).
• Aircraft are serialized, what allows a full view of the
market trends.
BUSINESS JETS ACQUISITIONS
AIRTRADE MARKET EXPERIENCE SUMMARY
30+ years of aviation activities
Business Aircraft Imports & Exports to 18 countries:
Aruba China Mexico
Belgium Cook Islands New Zealand
Bolivia Ecuador Russia
Brazil France San Marino
Canada Germany Spain
Cayman Islands Italy United Kingdom
 MARKET SUMMARY
LIGHT & MIDSIZE JETS

Source: AMSTAT
Date: September 5th, 2018
 MARKET SUMMARY
MIDSIZE JETS

Source: AMSTAT
Date: September 5th, 2018
MARKET SUMMARY
HEAVY JETS

Source: AMSTAT
Date: September 5th, 2018
 PRACTICAL ASPECTS ON AIRCRAFT ACQUISITIONS
PRE-PURCHASE
LOI CLOSING
INSPECTION
Price Scope Date

Pre-Purchase Seller
Inspection Return To Service
Responsibilities
Special Reqs. Of Buyer
Terms Importing Country Responsibilities

Offer Valid Until Acceptance Flight Delivery Receipt

Acceptance Letter Acceptance Letter Funds Availability

Place
 INTERNATIONAL TRANSACTIONS,
AIRCRAFT SALES, AND A VISION FOR THE FUTURE
 AVIATION MARKET
INTERNATIONAL TRANSACTIONS
In business relations with different nations,
there are some barriers that we shall consider
when perfecting an international transaction:

Education Registration

Language Culture Trust Title

HUMAN
FACTOR LEGISLATION
 AIRCRAFT SALES PROCESS
ADVERTISEMENT

Where to How to
Advertise? Advertise?
AIRCRAFT SALES PROCESS
TITLE SEARCH

Liens

Registry Pending Invoices

International Engines Title

AIRCRAFT SALES PROCESS
PURCHASE AGREEMENT:
TIMING & TIMES

For Aircraft For the

Delivery Deposit

For the Pre-

For Closing Purchase
Inspection

For
For Aircraft
Payment of Acceptance
Balance
 AIRCRAFT SALES PROCESS
PRE-PURCHASE AGREEMENT & INSPECTION

Scope

“RTS”

Scope x Annual Inspection

Airworthiness Items x Non-Airworthy

No Go Items

Special Reqs. Of Importing Country

Bilateral Agreement

Work Scope x Airworthiness Reqs.

Acceptance Flight
AIRCRAFT SALES PROCESS

Export Deregistration
Certificate of
Airworthiness

Ferry Flight x Ferry

Permit x C/A
 FOREX
Forex: USD x RUB

Hedging

Currency Risks
Forex: EUR x RUB
Source: www.bloomberg.com

Escrow in
Currencies Other
Than US Dollars
Forex: EUR x USD

Source: www.bloomberg.com
 A VISION FOR THE FUTURE

Imports Fractional
X Ownership Rationalization Cost of Fuel
Export Outside USA of Costs
PRE-PURCHASE INSPECTIONS
 CASE 1 CORROSION- PIPER ARROW
• Corrosion found on left main spar wing inside
the Wheel Well.
• Compartment of landing gear is difficult and
complicated access in this aircraft.
• Importance of cleaning before inspection.
 CASE 2 BOOT REPAIR KING AIR C90

• Hard to know if de-icer boot is damaged unless you Maintenance Manual and Repairs for
turn on the engines and do an air cycle of boots or
a functional test in a maintenance facility. all Black Pneumatic De-icers
• Often, patches are put on boots, but when air cycle BEFORE
is done, the patch bursts, causing pressure loss in
the system.
• Since system works with low pressure, with this
rupture, the system cannot inflate all the boots.
• $8,000 repair cost per wing.
CASE 2 BOOT REPAIR KING AIR C90

AFTER
 CASE 3 - AD 2014-15-15 – BEECHJET 400
• Upon checking logbooks, AD 2014-15-15 had not
been done but was not due.
• Decided to check, added to Pre-Purchase
Inspection.
• After reading the AD, it was found that it “was
prompted by multiple reports of fatigue cracking
in the horizontal stabilizer ribs”.
• Ribs replacement = $85,000
• Added as condition for pre-purchase this
replacement
• 1 – Boroscope inspection; or
• 2 – X-RAY inspection
• Sent to Beechcraft to perform this AD, where
cracks were found in the horizontal stabalizor’s
ribs by boroscope inspection.
 IMPORTANCE OF HAVING A THROUGH AND
EXPERIENCED PRE-PURCHASE INSPECTOR

Liability:
Seller
X
Costs Buyer

Safety

Airtrade Aviation has 30+

Years of Experience with PPI
MAINTENANCE
Falcon 2000 Major Inspections
Citation Jet Structural Repair
S76C++ Redelivery
Seneca V: Imports/Exports
Learjet 60XR Major Inspections
Hawker 750 & Learjet 40XR:
Cross Border Transactions
 Citation Jet in Paris:
Boroscope Inspection
 Gulfstream 650ER:
Most Expensive Executive Jet Ever Built
Agusta 109: European Import
Agusta 109: European Import
 10 STEPS TO SET UP
A FLIGHT DEPARTMENT
 10 STEPS
Insurance Programs

Parts Airports

Hangar/
Maintenance
Storage

Buying or
HR
Leasing

Corporate
Flight Aviation
Fuel
Department Authority
 10 STEPS
Insurance Programs

Parts Airports

Hangar/
Maintenance
Storage

Buying or
HR
Leasing

Corporate
Flight Aviation
Fuel
Department Authority
 FUEL

Contracts

Fuel
Cards

FBO
Agreements
 10 STEPS
Insurance Programs

Parts Airports

Hangar/
Maintenance
Storage

Buying or
HR
Leasing

Corporate
Flight Aviation
Fuel
Department Authority
HUMAN RESOURCES

Training

Crew

Pilots
 10 STEPS
Insurance Programs

Parts Airports

Hangar/
Maintenance
Storage

Buying or
HR
Leasing

Corporate
Flight Aviation
Fuel
Department Authority
 MAINTENANCE

Regulations

Mechanics x
Repair x Factory
Service Centers
 10 STEPS
Insurance Programs

Parts Airports

Hangar/
Maintenance
Storage

Buying or
HR
Leasing

Corporate
Flight Aviation
Fuel
Department Authority
PARTS

Used
Parts

PMA

Parts Program
&
Traceability
 10 STEPS
Insurance Programs

Parts Airports

Hangar/
Maintenance
Storage

Buying or
HR
Leasing

Corporate
Flight Aviation
Fuel
Department Authority
 INSURANCE

Liability

War
&
Confiscation
International
Validation
 10 STEPS
Insurance Programs

Parts Airports

Hangar/
Maintenance
Storage

Buying or
HR
Leasing

Corporate
Flight Aviation
Fuel
Department Authority
PROGRAMS

Avionics

Engines

Airframe
 10 STEPS
Insurance Programs

Parts Airports

Hangar/
Maintenance
Storage

Buying or
HR
Leasing

Corporate
Flight Aviation
Fuel
Department Authority
 AIRPORTS

Landing
Fees

Handlings

International
Operations
 10 STEPS
Insurance Programs

Parts Airports

Hangar/
Maintenance
Storage

Buying or
HR
Leasing

Corporate
Flight Aviation
Fuel
Department Authority
HANGAR / STORAGE

Hangar
Programs

Storage
Programs
 10 STEPS
Insurance Programs

Parts Airports

Hangar/
Maintenance
Storage

Buying or
HR
Leasing

Corporate
Flight Aviation
Fuel
Department Authority
 BUYING OR LEASING

Bridge Loans

Leasing
Companies

Financial
Institutions
 10 STEPS
Insurance Programs

Parts Airports

Hangar/
Maintenance
Storage

Buying or
HR
Leasing

Corporate
Flight Aviation
Fuel
Department Authority
 AVIATION AUTHORITY

Certificate
Operations Of
Airworthiness
Advantages of
Offshore
Registrations
Regulations

Registrations
AVIATION ASSETS PORTFOLIO
 The information presented in this document is highly sensitive and confidential and it is to be used by authorized parties for determining their preliminary indication of
interest in acquiring an executive aircraft portfolio.
Airtrade Aviation and other sources provided the information contained in the Presentation. Estimates and projections contained herein have been prepared by the
management of Airtrade Aviation and involve significant elements of subjective judgment and analysis that are based on certain assumptions. Actual results may vary
from estimates and projections, and these variations may be material. The projections, market assumptions and certain other statistics included in this Presentation are
based upon a number of estimates and assumptions which, although considered reasonable, are inherently subject to significant business, economic and competitive
uncertainties and contingencies, all of which are difficult to predict and many of which are beyond the control of Airtrade Aviation . Both the provider of this Presentation
and Airtrade Aviation expressly disclaim any and all liability which may be based on such information, errors therein or omissions therefrom. The recipient shall be entitled
to rely solely on the representations and warranties made in any final agreement, if any.
No representations or warranties, expressed or implied, are made as to the accuracy or completeness of the information contained in this Presentation, and nothing
contained herein shall be relied upon as, a promise or representation, as to the past or the future conditions or performance. The Presentation does not purport to
contain all the information that may be required to fully evaluate the Airtrade Aviation opportunities or a potential business relationship, and any recipient thereof should
conduct their own independent analysis and due diligence process.
In furnishing this Presentation, no obligation is established to provide the recipient with access to any additional information. This Presentation does not purport to
contain all of the information that may be required to evaluate the opportunity or a similar transaction and any recipient hereof should conduct its own independent
analysis of the opportunity. The right is expressly reserved, without having to give reasons thereof, at any time and in any respect, to terminate the discussions with any or
all prospective interested parties, to negotiate with any individual party with respect to a transaction or to change without prior notice any procedures which may have
been established.
THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITY.
All communications, inquiries and requests for additional information should be directed as follows:

Jay Faria
[email protected]

Notice – Confidentiality and Disclaimer

 “WHAT” – The Asset Class – Aviation Assets

Aviation Assets can be seen as a Hybrid of Real Assets and PE

• Real Assets Angle: resilient capital gains (through buying and selling):
“The only bad time to buy an aircraft is later”(If you know what/how to buy).

• PE Angle: income (through effective marketing & operations)

“If you don’t know who you are, this is an expensive place to find out.”

• Historical, pre-Covid19 returns for properly managed pre-owned portfolios:

20%+ annual returns, 2yr-5yr exit horizon.
 “WHAT” – Aviation Industry Overview

Military Aviation General Aviation

Commercial Aviation
- Aerial combat
- Airlines (Mainlines & Regional): - Business or pleasure flights: FAA
- Cargo transportation Part 91
scheduled flights, FAA Part 121 &
- Reconnaissance missions (intel Part 125 - Emergency medical evacuations
gathering)
- Charter Flights: non-scheduled - Airborne law enforcement
- Training military pilots and other flights, FAA Part 135 - Crop dusting operations
personnel
 “WHAT” – The Asset Class – Executive Aviation Industry
Landscape

• Owners & • Charter Operation

• (Part 135)
• Sales Channels • Users
• Fleet Managers

Direct
Sales
Owned Fleet

Brokerages

Broker Membership
Managed Fleet
Programs

Jet Cards

Leased Fleet Ownership

Programs
“WHAT” – The Asset Class – Executive Aviation Industry Landscape

Market is fully audited and controlled.

Number of aircraft sold and delivered are fully disclosed and

can be researched and analyzed, which allows a complete view
of the market.

Aircraft are serialized, what allows a full view of the market

trends.
“WHY” – Investment Thesis – Executive Aviation Forecasts

• The midsize executive aircraft segment has strong

potential for growth.

• In particular, global UHNWIs (High Net Worth

Individuals) that were not regular private flight users
before COVID-19 are increasingly resorting to midsize
aircraft acquisitions and charter flights.
• Pre-COVID19, the
business jet market
was expected to grow
to 13,500 jets in
2032. It got to 13,700
precisely in 2019.
“WHY” – Investment Thesis – Executive Aviation Forecasts
“Who” – The Management Team
“How” – The Business Model
 “How” – The Business Model

The Key Performance Drivers

Charter
Aircraft
Operation • Management of Executive Aircraft as an investment
Remarketing portfolio is a balancing act.

• Managers must choose the timing for Capital Gains

(through aircraft trading) and Income (through Charter
Operations).
“How” – Execution: Airtrade and its Ecosystem
 “How” – Execution: Aircraft Remarketing Case 1

CASE 1 – CITATION JET 1999

MAR 03, 2011 APR 24, 2011

INVESTMENT $ 1,537,000 SALES REVENUE $ 1,670,000

Acquisition value $ 1,525,000 Gross revenue $ 133,000

Re-marketing expenses $ 12,000 20% Fee (Airtrade) $ 26,600

NET REVENUE $ 106,400

$106,400
NET REVENUE

6.9%
RETURN ON INVESTMENT

52 DAYS
 “How” – Execution: Aircraft Remarketing Case 2

CASE 2 – CITATION JET 1997

JAN, 2013 JUN, 2013

INVESTMENT $ 1,120,000 SALES REVENUE $ 1,450,000

Acquisition value $ 1,080,000 Gross revenue $ 330,000

Re-marketing expenses $ 40,000 20% Fee (Airtrade) $ 66,000

NET REVENUE $ 264,000

$264,000
NET REVENUE

24.4%
RETURN ON INVESTMENT

180 DAYS
 “How” – Airtrade Capital Partners & Airtrade Aviation

Airtrade Capital
Partners
Portfolio Management

Investors
Airtrade
Aviation Capital
Asset Management

ACP Fund I ACP Fund II ACP Fund …

Aircraft Portfolio – Closed Aircraft Portfolio - $30mm+ Aircraft Portfolio - Future
 “How” – Portfolio Strategic Allocation

Light & ‘Superlight’ Midsize & ‘Supermid’ Large/Long Range

- Up to 19,000lb MTOW - 19,000 to 45,000lb MTOW - 45,000 to 115,000 MTOW
- Up to 8 Pax, generally - Up to 12 Pax, generally - Up to 19 Pax
- Up to 1,500nm range, generally - Up to 4,000nm range - Up to 8,000nm range
- Price: $1mm-$5mm, pre-owned - Price: $5mm-$10mm, pre- - Price: $7mm+
- Examples: Learjet 31, Learjet owned
- Examples: Challenger 600/Global
35/36, Beechjet, Citation CJ, - Examples: Hawker, Citation series, Gulfstream G-IV/G-V/
Embraer Phenom 100 & 300 Longitude, Challenger 300/350, G650/G700, Falcon 7x/8x/10x,
Falcon 2000/900, Gulfstream Embraer Legacy 600/650
G280, Legacy/Praetor 450/500
 “How” – Portfolio Tactical Allocation

Tactical Allocation Sample $20mm Portfolio:

Main features 6 Aircraft
• 3 Light Aircraft:
• Optimal returns resulting from
optimal aircraft model choice • $2mm/aircraft
• $3,000/hr
• Balance between commercial, • 70 hr/mo
financial and operational • 2 Midsize Aircraft:
parameters • $4mm/aircraft
• $4,500/hr
• Main parameters • 70 hr/mo
• Acquisition Price • 1 ‘Supermid’ Aircraft
• Market Demand (hr/month) • $6mm/aircraft
• Market Flight Price ($/hr) • $7,000/hr
• Maintenance Cost ($/hr) • 70 hr/mo
“How” – Execution: Charter Operation

Unleveraged Scenario
• The numbers presented have been calculated based on a minimum
of 70 hours flight per month for 01 aircraft, which is the number of
hours the charter company is willing to guarantee.

• The results demonstrated on the sheet below were calculated base

on an initial equity investment of $4mm and its return after 36
months of charter operation.

• The scenario assumes zero leverage and a conservative 25%

depreciation on one $4mm aircraft over 03 years.

From Aircraft Charter

Operation From Aircraft
Sale
“How” – Execution: Charter Operation

Leveraged Scenario
• The numbers presented have been calculated based on a minimum of 70
hours flight per month for 02 aircraft, which is the number of hours the
charter company is willing to guarantee.

• The results demonstrated on the sheet below were calculated base on an

initial equity investment of $4mm and its return after 36 months of charter
operation.

• The scenario assumes $2mm leverage per aircraft and a conservative 25%
depreciation on two $4mm aircraft over 03 years.

Exit
Year # 1 Year # 2 Year #3
(Aircaft Sale)
Pretax Income 1,075,597.39 1,120,397.52 1,165,197.65 n/a

Cash Flow 1,075,597.39 1,120,397.52 1,165,197.65 4,800,008.00

ROI (yearly) 26.9% 28.0% 29.1% n/a

IRR 26.5%

From Aircraft Charter From Aircraft

Operation Sale
 THANK YOU!

Corporate Office 1550 NW 62nd St. Hangar 18

3511 Silverside Rd, # 105 www.airtradeaviation.com Fort Lauderdale, FL 33309
Wilmington, DE 19810 - USA +1 (954) 271-7100