TES Aviation Group General Presentation

OUR VISION

ULTIMATE Total Engine Support

TES Aviation Group 2013

A Joint Venture Company of…

35% 40% 25%

TES Powerplant Consultants worldwide

Shop Visits, Deliveries/

Consultancy Projects managed in last 18

months

Engines Torn down in

the last 18 months

Engines under TES Management

Sq ft of Worldwide Facilities – UK, Singapore,

USA, New Zealand, Amsterdam

Stub Time Lease Engines

Engine Type Summary

Total APU

V2500-A5

V2500-A1

RR Trent 700

TRR Trent 500

RB211-535E4

PW6000 PW4000-100

PW4000-94

PW127

PW125B

PW120

GE90

CFM56-7

CFM56-5C

CFM56-5B

CFM56-5A

CFM56-3

CF6-80E CF6-80C2 CF34-10

CF34-3

The 10,000 sq ft Dallas office is the latest TES franchise to open and will play a major part in supporting the delivery of innovative fleet management solutions, quality overhauled material supply and stub-time lease engine provision all aimed at driving down the cost of ownership for the growing TES client base. With offices opening around the globe, TES gets one step closer to its vision of providing the Ultimate Total Engine Support while continuing its mission of providing platform solutions to global aircraft engine partners underpinned by organisational excellence.

30,000 sq ft corporate office space combined with a 100,000 sq ft warehouse and operations area

9,000 sq ft facility providing warehousing, logistics, parts and engine storage

State of the art facility providing support to the Asia Pacific region

Providing Platform Solutions To Global Aircraft Engine Partners Underpinned By Organisational Excellence

TES PRODUCT

FOCUS

Internal focus of all aspects of aero engine ownership allows TES to be innovative in our support of customers

Category 1 Products PW4000 (94”) CF6–80C2 CFM56-3 CFM56-5B CFM56-7B RB211-535E4 V2500 A5/D5

Category 2 Products PW4000 (100”&112”) CF6–80E CFM56-5A CFM56-5C

CF6-80C2

CFM56-3

CFM56-5B

RB211-535E4

PW4000

CFM56-7B

V2500

TES ASSET

PURCHASE

TES are actively sourcing and reviewing all current and projected opportunities of asset purchase….

TES work closely with managed Fleet customers to evaluate planned lease and material requirements. TES utilise this transparency to secure assets in support of all planned maintenance activities in support of customer needs.

Many global opportunities are highlighted through relationship with DVB.

TES are interested in and welcome discussions on all opportunities!

TES have been and desire to further expand our reaches in an attractive exit strategy for all fleet phase out and renewal goals.

TES IT

SYSTEMS

- Engine Fleet Planning and Costing

IT Systems help reduce risk and error by minimising human interface…..

- Quantum Component Inventory Management

- Financial System Management

- Project Management System

- Q Pulse Quality Management System

EFPAC Customers - Rolls Royce - Aeromexico - Snecma - Willis - Air New Zealand - KLM City Hopper - Jet2.com - Monarch - TES Aviation Group

- Knowledge management system software offering complete asset risk management.

- Lease engine portfolio management system

- Residual planning and engine condition value analysis

- Integrated with TES customer programs and systems

- Maintenance reserve and cash flow management

- Invoice analysis and engine cost modelling

- Material scrap rates and demand forecasting

EFPAC Reports include: - Cash flow forecast charts - Individual detailed shop visit cost predictions - Full 5 year engine removal plans (or any other period you wish to see) - CPH analysis - Maintenance reserve accrual charts

The Aircraft Engine Management System

The custom built engine fleet planning and costing software, providing excellence in the technical and financial management of aircraft engines.

Specifically designed for power plant engineers and finance departments, EFPAC's integrated financial and technical data allows easy engine removal planning and financial forecasting in addition to the following:-

EFPAC comes complete with a full suite of financial and technical reports, ensuring that all essential information is readily available.

TES SALES

CONSIGNMENT

The Material Operations department at TES offer complete management and re-marketing of customer surplus aircraft engine and component material available for re-sale

- Management of inspection, repair and modification process for all components using internal and external resources to maximise re-marketability

- Compilation of all necessary trace and regulatory paperwork associated with each component

- Management of all logistical requirements

- Storage of all material in secured bonded stores

- Maintenance of accurate inventory listings through specialised software, detailing location and condition of each component

- Regular communication and monthly reporting to each customer, detailing sales prices achieved, costs incurred, and current/remaining inventory listing

Full Service Support including:

TES PORTFOLIO

MANAGEMENT

Designed to produce Lower Cost of Ownership for all Operators and Lessors….

ENGINE SPECIALISTS Offering Complete Engineering Solutions in:

- Shop Visit Management (SVM)

- Aircraft Transitions (Engines) – Deliveries/Redeliveries

- ‘Ad Hoc’ Consultancy

- Long term client Fleet Management Programs – Airlines/Lessor

Airlines are increasingly implementing fleet renewals through operating leases rather than shoulder the burden of direct purchase which invariably restricts operating cash-flow.

Greatest Asset in TES’ Portfolio….Experienced Staff and Established processes, backed by trusted financial support from DVB

TES ENGINE LEASE

TES focus on core products for lease support in the RB211-535E4, CF6-80C2, CFM56-3B and PW4000

- Full teardown capabilities controlled in an EASA145 approved facility for RB211-535E4

TES ENGINE

TEARDOWN

- Component change and borescope capability for: RB211-535E4, PW4000, CFM56 and CFM6-80

- Additional products teardown capability under review

- Full engine storage capability including preservation and logistics

- TES have available engine shipping stands for the RB211-535E4, CFM56-3, CFM56-5C, CF6-80C2, V2500, and PW4000

- EASA 145 Approved Maintenance Organisation - Approval No. UK.145.01226

TES vendor repair management services are utilised on TES owned assets. Vendor repair managers communicate frequently with the material sales team to ensure priority components are dispositioned accordingly in a cost/time effective manner.

TES’ diverse portfolio of Approved Vendors are tailored for EASA, FAA and CAAC requirements and provide customers with a single source for all repair needs. To name a few ATI, TAT, IAT, TOS, CHROMOLLOY, HONEYWELL, TRIUMPH, HAMILTON SUNSTRAND.

TES repair engineers have extensive MRO experience, allowing for effective AD, SB and P/N upgradeability control allowing for accurate cost modelling and marketability

TES have established solid relationships with many MRO’s through experience on owned assets, with the likes of AMECO, HAESL, ESA, MTU, LHT, SRT, IBERIA etc.

Brokered Repair Management services - Caters for lack of in-house expertise or frees up internal resources if present. Operating on a ‘nothing to lose’ philosophy, all stages of component repair are managed with minimal, in any, input required from customer.

TES PARTS REPAIR

Why Consider TES for Repair Vendor

Management?

TES CLIENT

ACTION PLANS TES Aviation Group is continually working with clients to enhance their operation and support in the drive to reduce the cost of their operation.

This is achieved through various methods but one of the key initiatives is the Power Plant Review Board (PPRB)

This regular forum looks at all aspects of the operation of engines covered by a Fleet Management Programme not only from a technical view point but also commercial.

This interaction with customers is expanded to look at fleet expansion or renewal projects to provide, once again, detailed technical aspects combined with commercial considerations

TES PARTS SALES

All material is sold in serviceable/overhauled condition to our customers utilising TES comprehensive fleet management, MRO’s, Airlines and independent suppliers.

All material is certified with FAA/EASA/CAAC certification as required by the customer.

TES Aviation Group prides itself on the high standard of all certification and trace paperwork, managed in accordance with stringent internal quality procedures.

A significant number of engine and piece part consignment projects have been undertaken on behalf of our customers, with material being sold through our extensive network of sales outlets built up over years of trading.

Due to visibility of Shop Visit material requirements for TES Fleet Management customers, TES actively pursues the market for all opportunities of Asset purchase to support future SV’s through material supply

WIN - Can be achieved for both parties through effective material procurement and management

WIN

TES QUALITY SYSTEMS

Industry Certifications show a commitment to Quality that other organisations and customers can rely on…..

The majority of accreditations are voluntarily implemented, highlighting TES’s desire to provide and operate under safe and effective working practices.

TES are currently certified with the following:-

ISO 9001 - Quality management system

FAA AC 00-56A - A voluntary industry distributor accreditation programme

EASA 145 approved to carry out: Borescope inspections on RB211-535E4, PW4000-94” series, CF6-80C2 and CFM56 series Component removal and replacement Fan blade changes Fan modules changes Gearbox module changes

Approval No. UK.145.01226

Engine Fleet Management - Reporting

Monthly Report • Fleet Summary table • Engine Condition and Health Monitoring • Critical Airworthiness Document Inspection & Tracking • Life Limited Parts Status • Fleet Campaign Status

Quarterly Report

• Detailed engine removal plan • Cash Flow Forecast / Maintenance Budget Forecast

Quarterly PPRBTM agenda and minutes (Powerplant Review Board)

• Customer Operational Review vs Worldwide Fleet • Shop Visit Summary • Engine Management Program Control and update • ETOPS and Fleet Campaigns

The Outcome As a result of the maintenance reserve rates that had been previously agreed, and the premature removal of the engines driven by the return conditions, the expected shortfall in maintenance reserves of approximately $500K per engine was eliminated completely, removing $2M of unexpected cash liability from the operator.

CASE STUDY - Savings through Active Fleet Management

TES saved an operator $2M of lost revenue through active fleet management services

The Scenario The operator had leased 2 aircraft (4 engines) across a 5 year lease term. The lease return conditions for the aircraft required that all engines were to have operated less than X hours and X cycles since performance restoration shop visit at the point of lease return. The aircraft had been leased prior to the introduction of the TES Fleet management Program, and as the operator had little experience with the engine model concerned, had agreed lease terms which were not in their favour. As a result, the operator was faced with approximately $2M in exposure of which they were unaware.

TES’s Service Following a review of the lease agreement and using TES experience of the engine model concerned, TES subsequently identified that the lease return conditions previously agreed were unnecessary. Based on the on-wing performance of the engines and the projected condition at lease return, TES advised the operator that the shop visits required to meet return conditions were unnecessary and subsequently renegotiated successfully the return conditions with the Lessor on behalf of the operator in order to eliminate the shop visit requirement.

Shop Visit Management – TES Service

Engine Maintenance Contract Negotiation. Removal reason / technical status review (Maintenance and Performance). Engine Workscope definition to achieve build and lease objectives. Engine shop incoming inspection oversight. Disassembly control “Dirty Condition inspection” – Workscope amendment. Material Management – 80% of maintenance cost. Timely technical, commercial and financial decision making. Test Cell overview / review. Engine Release paperwork verification. Invoice Review and Negotiation, Warranty Claims, Material Scrap Review

Case Study

Shop Visit Management – TES Objectives

Management by experienced and professional engineering staff. Complete logistic, technical, financial and commercial control. Optimisation of Engine Workscopes – Operating and Lease Conditions. Optimisation of build material objectives – “Run Vs New” Minimise Engine Maintenance Cost Exposure – Cost of Ownership Removal of operational burden from the airlines Senior Management.

Main Objective = Maintain reliability and reduce cost exposure

Shop Visit Management - Reporting

Detailed Engine Workscope – Optimised and Controlled Cost estimation and update. Regular shop visit status reporting (Financial risks, logistics, TAT etc) Dirty Condition Reporting – At point of engine disassembly Invoice Review document - amounts authorised and disputed Detailed Post Shop Visit Report – Technical, Financial and Commercial

Comprehensive Reporting throughout the Shop Visit process to ensure 100% visibility

CASE STUDY - Savings through Engine Shop Contract Negotiation / Tender TES saved an operator over $2M through negotiation of the terms of an MRO repair contract.

The Scenario The operator had recently introduced a new engine type into their fleet and was looking to implement a long term repair contract with a single MRO for the future maintenance of their engines. The operator was not experienced with the engine type concerned and mindful of TES experience in successfully negotiating terms of repair agreements, requested TES to conduct a tender process to include negotiation of contract terms on the operator’s behalf.

TES’s Service TES contacted each of the MRO’s which held approvals for repair of the engine model concerned and requested a commercially competitive proposal based on fleet size and anticipated shop visit schedule, which TES had previously defined. Upon receipt of each proposal, TES compared the different terms using a pre-defined model and TES experience of each MRO and prepared a shortlist of potential candidates for the operator. Following an agreement of the shortlist, TES undertook a phased negotiation process advising each MRO of the shortfalls in their proposed terms, and negotiating in each area until the desired outcome was achieved. Following a pre-agreed period of negotiation with all short listed MRO’s, the successful MRO was identified and terms were agreed that presented both limited risk to the operator and reduced cash outlay at each shop visit event.

The Outcome As a result of the improved contract terms negotiated by TES in the final agreed contract, a total of approximately $2M in reduced maintenance cost across the operators shop visit program was achieved.

“Ad Hoc” Consultancy

Access to TES knowledge and experience beyond the contract. Provide flexibility to contract TES “project by project”. Typical Projects :

• On site technical inspections – Aircraft Transitions • Engine Shop Quality Audits • Engine Repair Contract Negotiation • Engine Valuations etc

Flexibility to benefit from TES extensive knowledge base

TES can tailor a flexible “helpdesk” package which offers clients the opportunity to draw on the wide range of TES experience on an ad-hoc basis. All clients also benefit from a dedicated Program Manager who as a single and focused point of contact, is well placed to be responsive to all the needs of the client.

Consultancy Helpdesk

Case Study

Savings through Documentation Inspection TES saved a leasing company $870K through diligent inspection of engine documentation.

The Scenario A Lessor had recently deployed TES to overview an engine shop visit that was being performed by one of their Lessees. This was to ensure that the workscope carried out by the Lessee met their obligations in accordance with the terms previously agreed between both parties. The engine completed repair and the MRO shop visit records were provided to TES by the Lessor for review.

TES’ Service TES conducted a full review of the post-shop visit documentation, checking all areas of the paperwork for accuracy, including the AD status, LLP status, SB status, LLP back to birth trace, on-off logs and test cell results. Following this review, TES discovered that a turbine blade had been installed that did not meet the build goal for the engine. TES had previously agreed the maximum threshold for turbine blade life with the MRO, although the MRO had not followed this agreement and only upon inspection of the post shop visit documentation was it identified that this was the case. The number of hours and cycles accumulated on the blade at installation did not conform to the soft life management program currently in place for this part and therefore TES recommended that the blade be removed from the engine and replaced with a suitable part at the expense of the MRO.

The Outcome As a direct result of TES’ documentation review, a premature engine removal for HPT blade deterioration was avoided at an anticipated cost of $870K.

Transition Management & Repossessions of A/C Engines

TES is able to draw on extensive experience in the field of transition management performed for both Airlines and Lessors alike TES engineering team consists of seasoned professionals with the skills necessary to ensure that all physical and documentation requirements necessary to ensure a seamless transition are met. In unfortunate circumstances where an aircraft has been, or is expected to be repossessed, TES has the necessary experience to provide the required level of engine support, whilst simultaneously demonstrating an appreciation of the sensitive issues associated with the transition.

TES understands that from a Lessor perspective, ensuring a seamless transition of serviceable aircraft between parties is vital to realise maximum operational value from both the engines and aircraft asset as a whole

TES possesses considerable experience in the management of commercial conditions associated with engine transitions. TES can provide support with technical interpretation of commercial conditions attached to a lease or sale/purchase agreement. TES provides operators reassurance that all technical and commercial considerations required to mitigate exposure to the airline during the transition process are addressed.

Case Study

Savings through A/C Engine Transition Management TES saved a Lessor $1.5M through management of an aircraft transition.

The Scenario The Lessor was in the process of taking redelivery of an aircraft in preparation for onward lease to another operator. TES were contracted to manage the transition of the engines ensuring that all contractual return conditions were satisfied and that the engines were in the condition required to meet the delivery conditions agreed between the Lessor and the next operator.

TES' Service TES conducted a thorough review of all engine documentation for accuracy and completeness, producing an engine delivery documentation package that the Lessor could provide to the next operator to facilitate the transition. TES also provided on site presence during the transition process, including overview of engine ground runs, borescope inspections, external hardware inspections and component inventory checks.

The Outcome During the inspections, TES discovered documentary evidence pointing to an internal oil leak. Following further on wing tests, it was confirmed that an internal oil leak had occurred and as a result the engine would not satisfy the lease return conditions. The engine was subsequently routed to shop in order to rectify the leak at the expense of the operator. The resulting shop visit cost was approximately $1.5M, which had the leak remained undetected during the transition process, would have been the responsibility of the Lessor during the next lease term.

Engine Fleet Management

Overhauled Material Support

Lease Engine Support

Airline/Lessor Customer

Engine Fleet Management Programs

“Turn-key” solution with an experienced team that can take over management IMMEDIATELY

Program Manager (For each Airline/Lessor

Customer)

Engine Specialists

Rolls Royce Pratt & Whitney GE /CF6/CF34 CFM56-3/5/7 IAE-V2500 APU’s

Engine Records Manager

Documentation & Control

Material Management

Parts Sourcing & Supply

EFPAC Technical & Commercial Forecasting

Asset Management Engine Lease

35 Engineers in support from OEM, MRO and

Airline backgrounds

Resource flexibility to “ramp up support” when the pressure is on & adapt to changing engine fleet profiles - without the in-house costs & structure

SV Forecast

MRO Contract Negotiation

Spare Engine Provisioning

Material Support

A/C delivery/re-delivery forecast

Delivery/Re-delivery Compliance

A/C Lease Contract Negotiation

SV Management

Reliability Program

Engine Management Program

Engine Fleet Planning & Costing System forecasting

Reliability Program

SB / AD Status Monthly Utilisation Thrust ratings BSI reports EGTM, vibration, N1/2/3 speeds and fuel flow Oil consumption rates On-wing maintenance data

Engine health/trend monitoring & recommendations Quarterly Powerplant Review Board forum (AD & SB incorporation recommendations) ETOPS Status Assessing fleet trends and Corrective on wing and off wing actions (Fleet Campaigns)

Benefits

Trends highlighted and trouble shooting facilitated to prevent UER’s – $500k+ per event Reliability Statistics managed below industry rates to maintain competitive edge. (Dispatch Reliability/UER/ABTO/IFSD etc) Cost vs benefit justification made for each SB recommended for inclusion in the EMP (Decisions recorded at PPRB Mtg) TES OEM GTA’s (CFMi) permit TES to interact directly with OEM Tech Support and lessons the burden on the client. TES are EASA145 approved for Engine Borescoping (CFM Series ; PW4000, RB211-535, CF6-80C2). Our systems and procedures are compliant with Part M, Sub Part G regulations.

Inputs Outputs

Engine Management Program (EMP)

OEM conference attendance OEM GTA subscription Chapter 5 limits TES Engine guidelines documents TES knowledge base (IP)

Baseline workscope for engine maintenance Baseline service bulletin standard for engine maintenance Definition of the standard practices, processes and procedures to be employed during engine maintenance

Inputs Outputs

Benefits

EMP built on TES “Total” Experience (Engine Portfolio : 600+ engines ; 100+ Maintenance Events/Yr) EMP Optimised for Clients needs and tailored to their individual operation (Regulatory Compliance and Commercial Sense) Baseline SB definition can save $50k per engine maintenance event through elimination of unnecessary application. Material Hardware standards fully understood and documented to drive reliability and lower cost of operation $$$$ TES investment in OEM GTA’s ensures the experience of our team grows to be able to provide the most current advise and recommendations. (Direct access to conferences, training, manuals and OEM technical support) Compliance with regulatory obligations to demonstrate maintenance standards compliance

Inputs Outputs

Technical : Utilisation Hrs & Cyc Thrust rating Trend Monitoring LLP Stack Tech Publications – AD’s etc Engine Condition – BSI Detailed EFPAC Workscoping Models Operational : C-Check / D-Check Slots Aircraft Availability Commercial : Lease Return Conditions Lease Engine Availability Financial : Maintenance Reserve Provision P&L Considerations Lease engine rates Detailed EFPAC Costing Models TES Intellectual Property (IP)

Removal / Maintenance Schedule Staggered for lease engine availability Scheduled to fit aircraft down time Optimised based on technical condition Scheduled to deliver end of lease objective Clarity of Lease engine requirements & policy High level Workscope per event Workscope to deliver future operation. Optimised to fit MR levels / Lease conditions Optimised for P&L considerations Maintenance costs per event Material scrap rates defined based on known condition Costing models deliver costs by workscope Financial Projections: Maintenance Budget Cash Flow Reports Engine Lease Costs Maintenance Reserve Status and Draw down Cost per hour

Engine Fleet Planning and Costing system forecasting

Removal/SV Forecast

Engine Fleet Planning and Costing system forecasting Contd…

Benefits

EFPAC system “Built on TES Expertise” provides a secure centralised source for all engine technical and commercial data Proprietary costing models ensure accurate projection and PREDICTABILITY of future maintenance exposure – NO SURPRISES TES expertise delivers optimised and adaptable removal programs to ensure lowest cost of operation $$$$ Lease engine reduction by appropriate removal stagger based on known conditions (approx $250k per lease per event) Lease Redelivery Planning to ensure compliance with end of lease conditions – Unforeseen maintenance ($1M+ per event) Lease negotiation – Eliminate need for a shop visit or obtain MR “Top Ups” based on forecast ($500k to $1.5M per event) Proactively projects shortfalls in Maintenance Reserves – to plan additional accrual or work scope change to mitigate shortfall Advanced visibility of fleet requirements to facilitate advanced discounted material procurement Negotiation of VERY competitive lease terms – We provide the tools through accurate forecasting to establish the best deal Financial considerations can be made according to operator preference – P&L impact etc

MRO Contract Negotiation

Structured proposal assessment process Negotiation and assessment of relative benefits being offered. Bottom line financial analysis and impact over the term of the contract Assessment of relative benefit of T&M vs. CPH TES experience with the maintenance providers ability to deliver the clients priorities

Shop Visit Schedule Detailed workscopes per event Detailed RFQ document Marking matrix based on RFQ Weighting based upon Clients Priorities

Inputs Outputs

Benefits

Presentation of SV forecasts as part of the RFQ entices MRO’s to submit competitive bids based on known facts. Removal plan & workscope knowledge utilised to negotiate key terms with maximum financial impact. Accurate maintenance projections enable TES to present the pitfalls or advantages of CPH contracts over T&M Market knowledge gained through numerous RFQ projects performed for a range of clients across a spectrum of engine types Negotiation of a contract mindful of Client priorities (Cost/Quality/TAT etc.)

$Saving per event of TES negotiated contract = $110k

SV Management

Technical condition at removal Build life objectives Engine Removal Records Engine Airworthiness Records (AD / SB / LLP etc) On watch items Engine Management Program (EMP) Financial and MR Status Commercial lease conditions Pre-provisioned material

Detailed engine workscope tailored to meet build objectives. Ongoing Management by experienced Powerplant Consultants. Workscoping decisions based on technical / commercial and financial awareness. Documentation and technical assessment of material supply. Communication of budget/estimate status and impact of decisions throughout the shop visit Onsite presence during key phases of maintenance Detailed invoice review and negotiation Scrap material assessment Regular reporting

Inputs Outputs

Benefits

$100k (Average saving per ESV event)

Repair process proactively managed, not left in total control of repair facility – (potential $500k + escalation if left unmanaged) Workscopes optimised and disassembly controlled to meet operational need (Lease obligations, time on wing requirement etc.) Technical findings throughout the management process analysed with consideration for the best commercial outcome. Hardware standards and repairability of material assessed based on actual condition and durability required for future Continual visibility of the financial position of your asset within the MRO – “Big picture” commercial decisions made Maintenance of TRT focus, limiting lease engine costs

Material Support

Expected Material Scrap Rates per event Material volume expectation defined Material Supply agreements finalised Material supply policy defined (Direct to MRO / Client) Pre provisioning policy agreed TES asset purchases to deliver client requirements

Pre – Provisioning of material Material documentation fully verified to TES Standard Logistics & Quality control TES Program Manager not conflicted to buy TES Material Material supplied to deliver program objectives otherwise not offered. Deliver WIN-WIN-WIN product

Inputs Outputs

Benefits

Flexibility to accommodate changes in material requirement due to altered redelivery dates, workscope escalation, OEM imposed limitations on LLP’s etc. TES has and continues to purchase whole engine assets for teardown to support future material requirements of Clients (aided by DVB support) Ability for provision of Category 2 and 3 parts in addition to Category 1, in order to fit maximum USM for delivery of lowest maintenance cost achievable Can supply direct to MRO through strategic alliances to improve cash flow for operator

$150k

(Very conservative saving per ESV event)

Spare Engine Provisioning

Shop Visit Schedule Long / Short Term Requirement

Technical needs assessment (Life, standard etc) Location & provision of spare engines (TES or Others) Negotiation of lease conditions with other providers Establishment of a TES lease engine GTA Potential Guaranteed access agreements Logistics management

Inputs Outputs

Benefits

Low ‘green’ time remaining tear down candidate engines allow TES to offer very flexible return conditions (based on SV forecast) Advance spare engine requirements highlighted and provisioned in time for requirement All engines serviceable under EASA/FAA 145 requirements Logistics headaches taken care of by TES experienced team GTA arrangements create ease of re-leasing

$30K (Example saving of using TES lease engine against current market rates, per ESV event)

A/C Lease Contract Negotiation

Pre Purchase LOI’s Lease contracts Pre – Purchase Engine Records SV forecast and Removal Schedule

Negotiation of Technical Delivery and Redelivery terms based upon actual condition. Negotiation of MR rates and structure based upon know maintenance schedule throughout lease. Verification of documentation standard requirements based upon condition of those delivered with the aircraft. Assessment of Engine Standard and suitability and durability for the clients operation

Inputs Outputs

Benefits

Lease commencement safe in the knowledge you have the best deal and major liabilities limited. Terms defined that reflect asset condition not general market rates. Terms that permit sensible draw down of agreed Maintenance Reserves Clarity of expected return condition with which to accurately project maintenance cost exposure across the lease

Huge Financial Exposure of getting it wrong - $1M+ per engine

Signed LOI’s / Lease Agreement Detailed Historical Engine Records SV forecast and Removal Schedule

Assessment of Engine standard and suitability and durability for the clients operation Verification that technical delivery condition matches that in the LOI Detailed records review to ensure airworthiness and confirm re-delivery requirements match those presented at delivery. Physical engine inspections, performance runs and test flights…confirm current airworthiness and future on wing capability Identification of issues with high technical / commercial and financial impact to the client for negotiation. Definition of Exceptions to the lease prior to aircraft acceptance Compilation of an Engine Delivery File

Delivery/Re-delivery Compliance

Inputs Outputs

Benefits

Potential Liability Huge - $500k + (i.e. Damage out of or close to AMM not captured prior to delivery causing early engine removal)

Verification and resolution that the assets condition being received match the terms of the lease and definition of any exceptions Technical acceptance by experienced staff to mitigate clients liability across the lease (Technical and Commercial) Burden of such resource intensive activity taken by TES

TES Aviation Group – Providing platform solutions to global aircraft

engine partners underpinned by organisational excellence

www.tes-uk.com