EFTA02383566.pdf

From: Barry J. Cohen < Sent: Monday, August 7, 2017 7:45 PM To: Jeffrey E. Subject: Engine Plans Banks don't require it. But they increase the amortization on the loan with no program. Our consultants say they agree with you on the RR program helping to boost the owner to the top of the list when it comes to service and repairs. However, they have not observed that prospective buyers have concerns about planes whose owners don't take the program. They say as long as the owner is US corporate or US very high net worth, they will ask questions about not being on the program, but provided the answers are appropriate, it doesn't impact value. Nonetheless, I think we should take it, because especially as the plane ages, the odds are you recoup the expenditure on resale. The gift tax case was a from a brief mention in a tax publication that someone was reading. We're trying to track it down. From: jeffrey E. [mailto:[email protected]] Sent: Monday, August 07, 2017 3:39 PM To: Barry J. Cohen aliMIEMI > Subject: Re: FW: Honeywell APU Maintenance Plan (MSP) i also thought . banks usually require engine insurance if they are going to finance in addtion have you found the case where the guy paid gift taxes but was charged with fraud . ? On Mon, Aug 7, 2017 at 3:35 PM, Barry J. Cohen < > > wrote: yup From: jeffrey E. [mailto:[email protected] <mailto:[email protected]> ] Sent: Monday, August 07, 2017 3:34 PM To: Barry J. Cohen < <mailto Subject: Re: FW: Honeywell APU Maintenance Plan (MSP) EFTA_R1_01400247 EFTA02383566  exactly, take it On Mon, Aug 7, 2017 at 3:29 PM, Barry J. Cohen <Ma > wrote: FYI From: Tom Mitchell Imailto 1 Sent: Monday, August 07, 2017 2:55 PM ...I. I •• To: Barry J. Cohen -- ; John Castrucci > Cc: Lee Rohde >; Laurie Nutter >> Subject: Honeywell APU Maintenance Plan (MSP) Hi Barry and John, The Honeywell Auxiliary Power Unit (APU), which you probably know is a mini-turbine engine, has a similar maintenance program as Rolls Royce. The name of the program is "MSP" which stands for Maintenance Service Plan. MSP has mirrored most other programs including Rolls Royce. I have listed bullet items for you to consider and will of course be happy to answer additional questions you might have. The current Buy-In for this APU is $60,000 which includes a 20% discount being offered by Honeywell. • MSP essentially covers all the labor and parts costs required of an APU during a shop visit (shop visit = equals major disassembly) along with a rental APU. • The current (basic) MSP cost is $100.62/hour and subject to an annual CPI escalator. • MSP Gold adds removal and installation labor coverage plus routine inspections for an additional $13.56/hour. (MSP Gold = $114.18/hour) * MSP Gold plus Logistical Support adds road trip logistical support coverage for an additional $6.19/hour. MSP Gold with Logistical support = $120.37/hour General information: 2 EFTA_R1_01400248 EFTA02383567  If APU utilization stayed consistent with the GV, it would generate approximately /2 hour use for every flight hour. The APU is "on-condition" meaning its performance is monitored to require a shop visit. Historically, APUs do require shop visits between 2,500 hours and 4,000 hours due to normal wear and tear. The cost of a normal shop visit would vary from $150, 000 - $450,000. Unscheduled APU failures can occur and repair costs tend to run $200,000 - $850,000 (maximum but not common). Regards, Tom please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved 3 EFTA_R1_01400249 EFTA02383568  please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved 4 EFTA_R1_01400250 EFTA02383569