EFTA01951649.pdf

To: agationttgmail.com[[email protected]] From: Sent: Wed 10/9/2013 10:13:23 PM Subject: B727 B727enaineinspection.pdf FuelpriceDubia. pdf Jeffrey, how does this email to the Sultan look? can you insert corrections please? I will send after you approve. thx, Larry Dear Sultan, in response to operational cost, Pleas see my comments in BLUE ink to your original email. I have compiled actual cost to address these numbers that were presented to you,. many of these numbers are inflated. I have attached the actual cost of the #2 engine corrosion inspection for your review. Price for #2 engine was $237,000.00 and will not be due until 2021 now, its a 8 year inspection on this engine. Engines #1 and #3 are due every 9 years, and come due 2014, next year. I have included a verbal quote received today from Atlantic Gas Turbines in Miami, price for #1 and #3 engines is $118,500 per engine, however that does not include possible repair of LLP turbine disc that may require additional replacement, "IF" needed price per engine is budged at $225k to MAX of $300k for each engine total, see email below: NOT the $1M per engine your email states below: Engines #1 and #3 are verbally quoted in this email from today: From: Date: October 9. 2013, 5:30:50 PM EDT To Subject: ngines: Repair Estimate Hi Larry, I discussed with Atlantic Gas Turbine Corp today the two 219 engines that will require ASB 6435 HPC Corrosion Inspection and Hot Section Inspection of exposed combustion hardware. They verbally indicated a fixed price to accomplish ASB 6435/ AD HPC Corrosion Inspection HSI Inspection Test/ Fuel and Oil all Build Up ( 100% expendables) parts Strip! Repair and Recoat of HPC Disks Return engine to service. Preserve Long Term Pricing was quoted at $118,500.00 per engine. LLP Replacement wit be considered Over and Above this pricing as will any other requirements to the engine due to exposure for ASB 6435. With replacement of LLPs and possibly requirements to the N1 Compressor! Fan Section due to condition EFTA_R1_00418840 EFTA01951649 a good budgetary estimate for Repair of the engines would be in the range of $ 225K to $300K per engine. AGTC can provide a written quotation at your request. Thanks Michael Maier Dear Sultan, Re the B727 Super VIP, have been trying to put a number on the costs. On first thought is that this a very expensive plane to operate, as it was manufactured in 1969, which makes it 44 years old. Without seeing the current inspection status and what is due, it is hard to put a "cost' to the maintenance requirements. If the aircraft was to be operated on a "Dry Lease" — ( A dry lease is a leasing arrangement whereby an aircraft financing entity, such as GECAS and ILFC (lessor), provides an aircraft without insurance, crew, ground staff, supporting equipment, maintenance, etc.) then you would pay a fixed cost for the "lease" of the aircraft and then be responsible for all other direct operating costs plus maintenance. I have attached a breakdown of what the fixed costs are estimated to be. As you will see this is approx. $1,220,651 per year. FUEL Burn is 1350 gallons per hour fact at Mach .80 and if you fly at Mach .78 fuel burn is 1250 gallons per hour, our aircraft flys at 39,000 and 41,000 ft regularly, some pilots elect to fly lower such as 33,000 and 35,000 feet, this will give you the 1575 gallons per hour your sheet states. The variable costs (ie the cost to fly the aircraft are estimated to be $13,617 per hour) PLEASE NOTE THIS EXCLUDES ANY MAJOR PERODIC MAINTENCE DUE (i.e. Yearly C checks and D checks as well as engine visits. There are No "D" checks on this maintenance program as stated above this aircraft is MSG-3 maintenance specially formulated for Low utilization aircraft. New Gulfstream 550 and similar come from the factory with MSG- EFTA_R1_00418841 EFTA01951650  3. We complete C1 and C2 checks in multiples of two, Next year, 2014 is a light "C" that we budgeted $150,000.00 next heavy "C" check is 2016. MSG-3 programs section each part of the aircraft that is address each 24 months, such as Tail section, Wing internals, Lower Bildge, Fuselage and below floor. We just completed the Lower bilge inspection during this maintenance visit, which required us to remove all the AUX Fuel tanks located in the fwd and aft fuselage, 11 total for inspection and overhaul. The more hours you fly then your hourly cost comes down. However, for example, x2 of the engines are due AD 2003-16-05, this involves a complete engine strip down, and I estimate this will cost approx. $1 mill per engine as well as 3months down time. $1M per engine is not correct, I have attached the estimate for the corrosion inspection just completed on #2 engine, This requirement on #2 engine is 8 year intervals, next due is 2021. Total price for #2 engine which has 35,190 hours corrosion inspection was $237,000.00 total, (I am in the process of obtaining a firm price for engine #1 and #3 which have a total time of only 3720 hours from the same shop that completed our #2 engine). Down time is quoted as 35 - 40 days. I also see a "C" check is due in Feb 2014 — on a 1969 vintage aircraft, you are looking at an open cheque book. TRAINING: There is mention of Crew Training at a cost of $99,000.00 per year, I use FAA approved PanAM Flight academy in Miami training my pilots for $6,500 for TOTAL for all three crew member,. FUEL Pricing: I have firm fuel price for today in Dubai at $3.30 per gallon, and Paris is $5.90, your email below indicates an average fuel price of $7.38 I have attached quote. insurance cost for 2013 was $125,000 BOEING VIP SUPER 727 ESTIMATED VARIABLE COSTS PER HOUR EFTA_R1_00418842 EFTA01951651  Corporate Fuel (1) $11,623.50 Fuel Additives 0.00 Lubricants 0.00 Maintenance Labor (2) 427.50 Parts Airframe/Eng/Avion (3) 197.43 Engine Restoration (4) 627.06 Thrust Reverser Allowance 12.54 Propeller Allowance 0.00 APU Allowance 68.97 Major Periodic Maintenance 0.00 Misc Exp. Landing/Parking 216.21 - Crew Expenses 290.58 - Supplies/Catering 153.30 - Other 0.00 Total Variable Cost/Hour $13,617.09 Cost per Nautical Mile $31.30 Average Speedats (5) 435.00 REFERENCE Size of operation: Date: 10/6/2013 Currency: $ 1. Fuel Cost 7.38 Gallons/Hour Blk Fuel/Flt Time 1,575 EFTA_R1_00418843 EFTA01951652  +15% 2. Maint Labor Cost per Hr 90.00 Maint. Hrs/Flt Hours 4.75 Aircraft Model Year 1984 3. Ind Engine Parts Cost No Engine Model JT8D-17 & 217C 4. Overhaul Cost Source Estimated 5. Block Speed Source Mftr Data ANNUAL FIXED COSTS B727 VIP Super 27 Corporate Crew Salaries - Captain (6) $161,000 - Co Pilot 120,000 - Flt Attendant 90,000 - Flt Eng/Other 0 - Benefits 111,300 Hangar - Typical 179,600 Insurance - Hull (7) 160.000 Single Limit Liability 16,000 Recurrent Training EFTA_R1_00418844 EFTA01951653  99,000 Aircraft Modernization (8) 75,000 Navigation Chart Service 15,001 Refurbishing (9) 179,550 Computer Maintenance Program (10) 13,500 Weather Service (11) 700 Other Fixed Costs 0 Frac Mgmt Fee/Yr + Tax 0 Total Fixed Cost/Year $1,220,651 REFERENCE Size of operation: Date: 10/612013 Currency: $ 6. Crew Salary Source 12 NBAA Number of Crew 3 7. Ins Hull Value/Frac Share Cost $8,000,000 Hull Insurance Rate (%) 2.00 8. Modernization 10 Yr Avg 9. Refurbish Labor Hrs/Seat 105 10. Comp Mx Program Source Typical 11. Weather Service Source Typical ANNUAL BUDGET B727 VIP Super 27 EFTA_R1_00418845 EFTA01951654 Corporate Utilization - Nt. Miles 175,000 - Hours 402 Variable Cost 5,474,070 Fixed Cost 1,220,651 Total Cost (No $6,694,721 Depreciation) - Per Hour 16,654 - Per Nt. Mile 38.28 - Per Seat Nt. Mile 2.01 Total Cost (No Depreciation) 6,694,721 Book Depreciation (12) 800,000 Total Cost (Book $7,494,721 Dep.) - Per Hour 18,644 - Per Nt. Mile 42.86 - Per Seat Nt. Mile 2.26 Total Cost (No Depreciation) 6,694,721 EFTA_R1_00418846 EFTA01951655  Market Depreciation (13) 320,000 Total Cost (Market $7,014,721 Dep) - Per Hour 17,450 - Per Nt. Mile 40.11 - Per Seat Nt. Mile 2.11 REFERENCE Size of operation: Date: 10/6/2013 Currency: S 12. Book Depreciation Rate 10 13. Market Depreciation Rate 4 GENERAL COMPARISON B727 VIP Super 27 Corporate Cabin Height (Ft) 6.90 - Width 11.50 - Length 92.70 Cabin Volume (Cu. Ft.) 6,425.00 Cabin Door Height (Ft.) 6.00 - Width 2.80 Baggage - Int. (Cu.Ft.) 10.00 - External 750.00 Typical Crew/Pass Seating 3/ 19 EFTA_R1_00418847 EFTA01951656  Weight - Max Take-off (Lbs.) 194,800 - Maximum Landing 158,000 - Basic Operating 115,000 - Usable Fuel 77,260 Payload-Full Fuel (Lbs.) 3,240 Maximum 26,000 Certified Yes IFR Certified Yes Price - New (Corporate)/1000 $0 - Pre Owned Rngt1000 5000 / 8000 Years Produced 1968 1984 PERFORMANCE COMPARISON B727 VIP Super 27 Corporate Range - NBAA IFR Res (N. Mi.) -4 Passenger 3,900 - Ferry Range 4,050 Range - 30 Min. Res (N. Mi.) 0 -4 Passenger 0 - Ferry Range 0 EFTA_R1_00418848 EFTA01951657 Balanced Field Length (Ft.) 5,550 Landing Distance - FAR 91 2,250 Landing Distance - FAR 121 3,750 Landing Distance - FAR 135 2,813 Rate of Climb (Ft/Min) 2.380 One Engine Out 0 Cruise Speed - Max (KTAS) 485 - Normal 465 - Long Range 455 Stall Speed (IAS) 0 Ceiling Certified MTOW (Ft.) 42,000 - Service 42,000 - Service OEI 31,000 Ceiling Service HIGE (Helicopter Only) 0 Ceiling Service HOGE (Helicopter Only) 0 EFTA_R1_00418849 EFTA01951658