EFTA00621671.pdf

TAKING You UNDER OUR WING ACASS CANADA LTD AIRCRAFT VALUATION REPORT GULFSTREAM GIV sn1085 PRESENTED TO JEGE LLC LARRY VISOSKI January 2014 EFTA00621671  2 ACASS GIV sn1085 VALUATION REPORT TABLE OF CONTENTS p.3 FEATURED AIRCRAFT — GIV sn1085 p.4 PRE -OWNED GIV MARKET p.6 RECENT SALES 13 • 7 MARKET NOTES & VALUATION p.8 AIRCRAFT BLUEBOOK VALUATION The information contained in the report has been collected from various sources (Spec sheets. AMSTAT. JETNET. Aircraft Blue Book. Vrel. Gulfstrearri, Conklin 8 de Decker. etc) and is beloved to be correct. However. ACASS Canada Ltd. does not warrant the accuracy d the source material and assumes no responsibility in connection with the use of this report. In ol error or omission. our liability. if PAGE 2 OF 8 any. is limited and may not, in any event exceed the amount paid. where applicable. for the service during the period covered by the report in which the enor or omission Goa:red. EFTA00621672  3 ACASS GIV sn1085 VALUATION REPORT FEATURED AIRCRAFT Aircraft Type: Gultstream GIV Serial Number: 1085 Registration: N212JE Year of Manufacture: 1988 Entry Into Service: 1988 Airframe: + Total Time: 8.943 hrs ± Landings: 4.001 Additional Information: + 13 passenger interior DU885 upgrade + New interior 2013 + New exterior paint 2013 • HAPP RRCC. MSP • GOGO WiFi The information contained in the report has been collected from various sources (Spec sheets. AMSTAT. JETNET. Aircraft Blue Book. VrelGuffstream. Conklin 8 de Decker. etc) and is believed to be correct. However. ACASS Canada Ltd. does not warrant the accuracy of the source material and assumes no responsibility in connection with the use of this report. In case of error or omission. our liability. if PAGE 3 OF 8 any. is limited and may not. in any event exceed the amount paid. where applicable. for the service during the period covered by the report in which the error or omission °caned. EFTA00621673  4 ACASS GIV snl 0 8 5 VALUATION REPORT PRE -OWNED GIV MARKET 4- 24 (13%) out of an active fleet of 187 GIV aircraft are currently on the market. Highest Ask Price: USD $9M Average Ask Price: USD $6.2M Lowest Ask Price: USD $3.75M 4- Average time on market is 533 days. Current Pre-Owned GIV Aircraft on Market Year Of Manufacture/ Entry lotal Time Entry to Serial Si Registration Ask Price Into Service (hrs) Market 1986/1986 1010 XA-AVZ Unk 9M 16/Oct/13 1987/1988 1016 N21FJ 8,374 Make Offer 30/Jan/13 1987/1987 1022 N663PD 11,181 Make Offer 21/Apr/09 1987/1987 1029 f4442F 9,290 6.95M 12/Jul/11 1988/1988 1036 N4SAC 12,222 4.975M 31/May/13 1987/1988 1041 N888FR 8,784 Make Offer 4/Jun/12 1987/1987 1042 N889TC 10,485 4.45M 10/Sep/13 1988/1988 1046 38-PGF 7,232 Make Offer 25/Jun/13 1988/1988 1064 XA-AEX Unk Make Offer 1/Aug/13 1988/1988 1067 N200LC 8,553 5.995M 25/Sep/13 1988/1988 1069 NI113PD 10,157 6.495M 15/Jan/10 1988/1988 1076 N338MM 8,593 6.5M 18/Nov/13 1988/1988 1080 M-YGIV 8,382 Make Offer 5/Nov/13 1988/1988 1081 XA-RCM 11,566 Make Offer 4/Aug/11 1988/1988 1082 N384MS 8,315 Make Offer 8/Sep/11 1989/1989 1094 N818BX Unk 8.5M 25/Jun/13 1989/1989 1107 N84£IGF 10,071 3.75M 20/Mar/09 1989/1989 1113 XA-LIS 8,588 SM 5/Dec/13 1989/1989 1116 N305TC 11,172 Safe Pending 1/Apr/10 1990/1991 1137 N777TC 10,365 6.095M 23/Oct/13 1990/1990 1141 N7291Y 9,657 Make Offer 21/Sep/12 1990/1991 1151 N109ST 8,172 6.4M 18/May/12 1991/1991 1171 N3SA 6,301 Make Offer 18/Dec/13 1992/1994 1188 N102AK 2,350 Make Offer 27/Mar/13 The information contained in the report has been collected from various sources (Spec sheets. AMSTAT. JETNET. Aircraft Blue Book. Wel Gutfstream. Conklin & de Decker. etc) and is beloved to be correct. However. ACASS Canada Ltd. does not warrant the accuracy of the source material and assumes no responsibility in connection with the use of this report. In of error or omission. our liability, if PAGE 4 OF 8 any. is limited and may not. in any event exceed the amount paid, where applicable. for the service during the period covered by the report in which the error or omission ciocurect EFTA00621674  5 AGARS GIV sn1 0 85 VALUATION REPORT PRE -OWNED GIV MARKET The GIV market has remained moderately steady over the last six (6) months: with twenty-five to thirty aircraft available each month buyers have a wide variety of options. Aircraft on Market by Month 30 29 28 27 26 25 24 23 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Ask prices climbed in September and October due to the withdrawal sn1020 asking $4.2M and the introduction of sn1010 asking $9M. The average ask price has since returned to the low $6M range and is expected to continue on its current downward trend. Average Ask Price By Month $7,200,000 $7,000,000 $6,800,000 $6,600,000 $6,400,000 $6,200,000 $6,000,000 $5,800,000 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 The information contained in the report has been collected from various sources (Spec sheets. AMSTAT. JETNET. Aircraft Blue Book. VrelGuffstream. Conklin 8 de Decker. etc) and is believed to be correct. However. ACASS Canada Ltd. does not warrant the accuracy al the source material and assumes no responsibility in connection rah the use of this report. In case of error or omission. our liability. it PAGE 5 OF 8 any. is limited and may not. in any event exceed the amount paid. where applicable. for the service during the penod covered by the report in which the error or omission occurred. EFTA00621675  6 ACASS GIV sn1085 VALUATION REPORT RECENT SALES We see that the GIV market had low sales activity over the summer and fall months with just five (5) sales in five months. However, as the year came to a close five (5) aircraft were sold in December and an additional two (2) have sold this January. Recent sales include: • Sn 1072 sold for $4.5M USD in January. Ask price was $4.95M USD. • Sn 1099 sold for $4M USD in January. Ask price was $4.2M USD. • Sn 1057 sold for $3.5M USD in December. Ask price was $4M USD. • Sn 1123 sold for inventory in December. market value was $5M USD. Ask price was $5.795M USD. • Sn 1150 sold for $5.7M USD in November. Ask price was $6.5M USD. • Sn 1155 sold for $5.2M USD in September. Ask price was $5.895M USD. • Sn 1025 sold in the mid to high 5M USD range in August. Ask price was $6.495M USD. • Sn 1063 sold for $5.5M USD in April. Ask price was $6.295M USD. Aircraft Sold By Month 6 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 The information contained in the report has been collected from various sources (Spec sheets. AMSTAT. JETNET. Aircraft Blue Book. VrelGuffstream. Conklin 8 de Decker. etc) and is believed to be correct. However. ACASS Canada Ltd. does not warrant the accuracy of the source material and assumes no responsibility in connection with the use of this report. In case of error or omission. our liabiliy. if PAGE 6 OF 8 any. is limited and may not. in any event exceed the amount paid. where applicable. for the service during the period covered by the report in which the error or omission occurred. EFTA00621676  7 ACASS GIV sn1085 VALUATION REPORT MARKET NOTES & VALUATION 9- The GIV market currently shows 13% of the active fleet available for sale. The typical target for a balanced market is 10%. Should inventory levels continue to rise in 2014, this market will trend towards a buyer's market. 9- Average time on market for the GIV is 533 days. 4- A recent sale comparable to sn1085 is sn1150 which sold for USD $5.7M in November. This aircraft had 8.915hrs TTAF. G450 interior refurb. 100% engine coverage and is enrolled on HAPP. 9- It should be noted that of the recent aircraft sales, none have sold above USD $6M. 4- A comparable on market aircraft is sn1076 which currently has 8,593hrs TTAF. interior and paint updated 2012 and is not enrolled on any programs. The ask price is USD $6.5M and the take price is in the USD $4M range approximately USD $1M below the Aircraft Bluebook value. 4- Value for GIV according to the Aircraft Bluebook has consistently trended downwards by a factor of $266.000 USD per quarter for aircraft having entered service in 1988. 9- The Aircraft Bluebook and Aircraft Value Reference (Vref) are quarterly publications that assess the current retail and wholesale values for various aircraft. Though publications such as the Aircraft Bluebook and Vref are commonly used, actual aircraft pricing is decided in the market place. According to Aircraft Bluebook and Vref. Average valuations for sn1085 are: Average Retail Valuation: USD 36.8M Average Wholesale Valuation: USD $5.5M Assumptions: For the purpose of this valuation. ACASS assumes: 4- Specifications, airframe hours and equipment lists are such as provided or found on JETNET andlor AMSTAT. + No damage, accident or incident history. 4- Maintenance is current and up to date as per the manufacturer's requirements. + Airframe, engines and APU are enrolled on maintenance programs. Valuation: Given current market conditions and GIV sn1085's position amongst the competition, we value the aircraft between USD $5.5M and USD $6.0M. ACASS recommends an initial ask price of USD $6.95M with the expectation of closing in the range specified above. The information contained in the report has been collected frorn various sources (Spec sheets. AMSTAT. JETNET. Aircraft Blue Book. VrelGuffstream. Conklin 8 de Decker. etc) and is believed to be correct. However. ACASS Canada Ltd. does not warrant the accuracy cif the source material and assumes no responsibility in connection with the use of this report. In case of error or omission. our liadliy. it PAGE 7 OF 8 any. is limited and may not. in any event exceed the amount paid. where applicable. for the service during the penod covered by the report in which the error or omission °mitred. EFTA00621677  8 ACASS GIV snl 085 VALUATION REPORT AIRCRAFT BLUEBOOK VALUATION elezeloth& PRICE DIGEST' tear era seicatoec cam Aircraft Bluebook January 20, 2014 GulfStream 1988 -G-IV Buecus744 Model GULF STREAM G4V Year 19IMI Seed Number 1113e through DM Trend 267400 Engine TakeoliPcmer RR 4y10,8M DUN, 14c6114 Areetsgre Overhaul I-Inherent $001100 Engne TEO Hass MM Max Seals 21 Base Average Equipment nay eptipped 041 systems Ens soon et. RYER LNG A es RR Corpoitte Care AFIT cl- 10% Or esS Witless ewe pert 6 interior Frey, Inventions ADs 8 SIM Complied Recent ADs 12-6-17 12-28.15 094.1 09-21.10 07.12.25 08-184 0544 0576-14 0444 092910 04493 01.8-13 01.18.5 00.7-25 95-264 9922-1 94-144 9414 94.1.4 93-4.2 93-23.1 93-104 93-74 91-25-5 91-104 992918 9924 69-4-10 89.204 89-242 89.240 88-20.4 8924 Bluebook Notes J59 Programs writable, rerer toArgot artirtonenco Sedum ti dams NOTE: NonStenciacilnWes mey Elect villa Rolls Royce 56 TAY-7040SO MUMS engne MA. inspect/an el 4000 lain a 10 years. vitchecia rams ad Maintenance Programs Eniceeecn Maintenance kora YES Aircraft Bluebook Values -1NInter 2013 Vol. 13-04 f woof Kew Lot Standard F Way Novelist Average Average Retail Price Averege1Aticilasele Price Price Epiip Price Published Roles 115,797,0i:000 S17)30080003 144•0410041 $3,818,00000 Total Time Al Frame 57.00 $0.00 143.00•411 138,16000 (59430 Yes) Snot MAN Overhaul - 93.00 50.00 SOS 10.03 Enginet MOOD Firs) Since moo Overall • $3.00 $0.00 Wag 10.03 Engine 2 (4000,3 Firs) Anionit Upgrade 30.00 93.00 $1,016.11441.01 1750,030.00 0000 WFi 83.00 93.00 1440.000.40 1375,000.00 72 morel inspection 83.0) 10.00 $4111.909110 9000,000.00 Hes NewPail 83.00 10.00 $112.6•0•01 184,375.00 Has Rawl:Senor 83.00 WOO $12.6110.110 1459.375.00 lotel 115,797011000 117.800poem 11,9611141048 35,822,910 CO Pleats Read The Award Beek.* Is aeogneci aria developed co e scrum M the putchaserstnereoi to assa them in mimng ar t a a market accrue or stria dee MICH% bit Is raneed rely es a glide and is not to te corm:hied to Feted all lad= imal•ed in tra appraisalpoxes:01cm pmactiar arcial All pnces In the Diges1 are corroder-ea a reptesentei‘e &reser mead herein *2013Penton Inc AA noes resayed Page I o12 The information contained in the report has been collected from various sources (Spec sheets. AMSTAT. JETNET. Aircraft Blue Book. Vrel, Gulfstream. Conklin 8 de Decker. etc) and is beloved to be correct. However. ACASS Canada Ltd. does not warrant the accuracy of the source material and assumes no responsibility in connection with the use of this report. In of error or omission. our liability, if PAGE 8 OF 8 any. is limited and may not. in any event exceed the amount paid. where applicable. for the service during the period covered by the resod in which the enor or omission carrot EFTA00621678