july 2020

Launch of OWG, a New

Magnetic MRO Completes ATR Program for

Lufthansa Launches Second Set of Measures of its Restructuring Program SkyCargo Expands Cargo Connectivity to 100 Destinations Contents

MTU Aero Engines Plans to Adjust Personnel Capacity By 10 to 15 Percent by the End.. 1

A Solvent Recapitalisation of 2

CargoAir Orders 11th AEI Classic Freighter Conversion 4

FACC Strengthens Financing Structure and Liquidity 5

MUFG Assists BBAM in Financing Four Aircraft Leased to 6

Gulf Air Operates to 25% of its Network by Resuming Direct Flights to.. 7

Caerdav Builds Commercial Team with Two New Senior Appointments 8

Emirates SkyCargo Expands Cargo Connectivity to 100 Destinations 10

Azul Announces Sale of Equity Stake to Portuguese Government 11

Magnetic MRO Completes ATR Program for Finnair 12

Mesa Air Group Signs Five-Year Cargo Contract with DHL Express, Will Add Boeing.. 13

Launch of OWG, a New Airline 14

Lufthansa Launches Second Set of Measures of its Restructuring Program 16

Hi Fly Converts A380 to Meet Cargo Demands During Covid-19 Crisis 18

KfW IPEX-Bank: Eurocontrol Term Loan Facility 19

Alderman & Co. Survey Reveals a Growing Liquidity Crisis in the Commercial Aviation.. 20

Liebherr Earns Spot in Boeing Premier Bidder Program 21

Jazeera Airways Reveals Schedule to 20 Destinations Starting August 1 22

RUAG MRO International Commissions New Paint Shop 24

HAECO Xiamen Provides Cargo Carriage Solutions to Support Airways’.. 26

AerCap, and Airbus Celebrate Milestone A321LR Sustainable Aviation Fuel.. 27

ATSG’s PEMCO Receives FAA Approval for its -700 FlexCombi™ Conversion.. 28

Cainiao Teams up with Volga-Dnepr Group for a New Cargo Route from China.. 30

Sabena Technics and ASL Extend their ATR Support Agreement 32

Boeing Secures Aircraft Finance Germany Order for Two 737-800 Boeing Converted.. 33 MTU Aero Engines Plans to Adjust Personnel Capacity By 10 to 15 Percent by the End of 2021

· Increased use of flexible measures and voluntary years before air traffic – which is the foundation agreements · Compulsory redundancies are to be on which our activities in series production and avoided Munich, July 6, 2020 – Due to the impact our maintenance business rest – returns to pre- of the coronavirus pandemic on international crisis levels,” said CEO Reiner Winkler. “We have aviation, MTU Aero Engines AG plans to adjust no interest in compulsory redundancies or social its personnel capacities. By the end of 2021, plans, and will coordinate our approach very the company aims to reduce capacity at its carefully with the works council. We want to keep German and international locations by a total as many of our highly qualified colleagues on of around 10 to 15 percent. This will be carried board as possible during and after the crisis. We out largely through individual agreements such will continue to offer our partners and customers as the increased use of partial retirement, early the high level of quality and service they have retirement and other arrangements. The target come to expect.” MTU is currently taking advantage figure will also be reached through measures that of the temporary capacity adjustment options have already been initiated, such as an extensive available through short-time working at its German hiring freeze or waiver to fill vacant positions, as locations. Various measures to reduce capacity well as a reduction in working hours. “As a result are being implemented at the international of the pandemic, the aviation industry will remain locations, where different legal frameworks apply. under pressure for some time to come. It will be

1 A Solvent Recapitalisation of Virgin Atlantic

Virgin Atlantic has reached a major milestone and c.£880m rephasing and financing of aircraft towards securing its future today, by announcing deliveries over the next five years. Shareholders plans for a private-only solvent recapitalisation are providing c.£600m in support over the life of the airline, following the severe impact of the of The Plan including a £200m investment from Covid-19 pandemic on the global economy, the Virgin Group, and the deferral of c.£400m of nation and the travel and aviation industry. A shareholder deferrals and waivers Virgin Atlantic Solvent Recapitalisation of Virgin Atlantic Virgin welcomes new partner Davidson Kempner Capital Atlantic has taken a big step forward in securing Management LP, a global institutional investment its future, by launching a court backed process management firm which is providing £170m of as part of a solvent recapitalisation of the airline secured financing Creditors will support the airline and holiday business, with a Restructuring Plan with over £450m of deferrals The airline continues that once approved and implemented, will keep to have the support of credit card acquirers Virgin Atlantic flying. The Restructuring Plan is (Merchant Service Providers) Lloyd’s Cardnet and based on a five year business plan, and with the First Data. To secure approval from all relevant support of shareholders Virgin Group and Delta, creditors before implementation, the Restructuring new private investors and existing creditors, it Plan will go through a court-sanctioned process paves the way for the airline to rebuild its balance under Part 26A of the Companies Act 2006 (the sheet and return to profitability from 2022. “Restructuring Plan”). With support already secured The recapitalisation will deliver a refinancing from the majority of stakeholders, it’s expected package worth c.£1.2bn over the next 18 months that the Restructuring Plan and recapitalisation in addition to the self-help measures already will come into effect late Summer 2020. taken, including cost savings of c.£280m per year

2 Decisive action underpins the Restructuring Plan as 2019 despite its smaller scale, demonstrating Global aviation was one of the first industries productivity and efficiency improvements. The impacted by the Covid-19 pandemic and will be airline will operate a streamlined fleet of 37 one of the last to fully recover. From the start, the twin engine aircraft following the retirement airline took decisive action to ensure its survival. of 7 x 747s and 4 x A332s by Q1 2022, with In March, the Leadership Team took voluntary rescheduled delivery of outstanding A350s and pay cuts and since April, more than 80% of the A339s. Returning to the skies From 20 July Virgin workforce has benefitted from the Government’s Atlantic will restart passenger flying and has a Coronavirus Job Retention Scheme, supporting vital role to play in supporting the UK economy efforts to preserve cash and minimise costs. In Q2, as it recovers from the impact of the pandemic. flying fell by 98% and in the second half of 2020, Virgin Atlantic and Virgin Atlantic Holidays capacity is expected to reduce by at least 60% will continue to support global supply chains compared to 2019, with pre-crisis levels of flying and flying customers safely to the places they unlikely to return until 2023. With the suspension love to travel. While demand will be slow to of passenger flying in April, the airline delivered recover, Virgin Atlantic will ensure its customers an unparalleled network of cargo-only flying, always feel confident to fly by continuing to operating more than 1400 cargo flights in April, prioritise the health, safety and security of its May and June. In May, the difficult decision was people and customers throughout their journey. taken to reshape and resize in order to emerge from Sustainability remains central to the airline, and the crisis sustainably profitable, and regrettably its simplified fleet will be 10% more efficient than the airline had to reduce the number of people it it was pre-crisis. Shai Weiss, CEO, Virgin Atlantic employs by 3,550 [1] across all functions. Having commented: “Few could have predicted the scale closed its London Gatwick base, while retaining a of the Covid-19 crisis we have witnessed and slot portfolio at the airport to protect opportunities undoubtedly, the last six months have been the for future growth, leisure flying is now consolidated toughest we have faced in our 36-year history. at London Heathrow and Manchester. By 2022 We have taken painful measures, but we have Virgin Atlantic will fly the same number of sectors accomplished what many thought impossible.

3 Orders 11th AEI Classic Freighter Conversion

Aeronautical Engineers, Inc. (AEI) is pleased to strong collaboration between our companies, and announce the company has signed a contract to firmly believe in the capabilities of AEI and their provide Bulgaria-based CargoAir with a B737-400SF authorized AEI Conversion Center, Commercial freighter conversion. The aircraft (MSN 28882) Jet.” AEI’s B737-400SF shall provide CargoAir with is scheduled to commence modification in mid- a highly flexible Ancra CLS capable of carrying September 2020. All modification touch labor will multiple ULD’s including: (10) 88”x125” ULDs in be performed by Commercial Jet at their Dothan, P1 to P10 or (10) 88”x108” in P1 to P10 and (1) Alabama facility. “CargoAir is a long-time and highly 53”x88”x64” Pallet or AEP/AEH or 60.4”x61.5” valued customer of AEI’s,” said Robert Convey, AEI AKE/LD3 or 61.5”x88”x56”H AYY in P11 This Senior Vice President of Sales and Marketing. “The unique flexibility has been designed by AEI to airline currently operates 3 AEI B737-300SF and allow cargo operators to immediately adapt to 7 AEI B737-400SF freighters.” “AEI and CargoAir multiple ULD configurations at a moment’s notice. have had a successful partnership dating back When combined with proven reliability, the AEI to 2009,” said Mr. Angel Petrov, CargoAir Ground Converted B737-400SF will allow CargoAir to keep Operations & Commercial Director and Purchase their aircraft – “In the air, generating revenue”. & Fleet Acquisitions Director. “We appreciate the

4 FACC Strengthens Financing Structure and Liquidity

-Bond for EUR 90 million successfully redeemed coming year, we can thus secure the necessary -New EUR 60 million financing line completed liquidity for the undiminished continuation of Against the background of considerable challenges our cost reduction program. The program, which posed by COVID-19, FACC AG is strengthening its is expected to generate total annual savings of financing structure and liquidity. The company is up to EUR 50 million, is already beginning to take thus preparing itself for the further implementation effect in some areas”. In order to prepare itself even of the cost reduction program started in 2019. As better for the serious effects of the pandemic on planned, FACC AG redeemed the corporate bond the aviation and aerospace industry, FACC recently (ISIN: AT0000A10J83) issued in 2013 for 90 million defined an additional “corona savings program” euros on 24 June 2020. In addition to existing of EUR 15 million, which is also already being syndicated credit lines, the basis for this was a implemented. In addition, FACC is planning talks promissory note loan for EUR 70 million issued in with the core banks in fall about the temporary July 2019. Practically at the same time as the bond adjustment of the current syndicated financing was repaid on time, negotiations were concluded to the changed conditions caused by COVID-19. on a new additional financing line with a volume of Aleš Stárek: “With all these measures to strengthen EUR 60 million as part of the COVID-19 assistance our liquidity, we are also improving our starting of the Austrian Kontrollbank (OeKB). FACC Chief position to overcome the Corona crisis. A further Financial Officer Aleš Stárek commented: “Despite positive factor in this regard is our solid equity the expected revenue and earnings losses due to ratio, which we would like to maintain by waiving COVID-19 in the current and probably also in the the dividend payment for the 2019 financial year”.

5 MUFG Assists BBAM in Financing Four Aircraft Leased to Delta Air Lines

Mitsubishi UFJ Financial Group (MUFG) was Olivier Trauchessec, Managing Director and Global mandated as a Lead Arranger and Structuring Head of Origination and Structured Solutions for Agent by BBAM Aircraft Leasing and Management Aviation at MUFG. BBAM is the leading provider to provide financing for four aircraft on long-term of asset origination and management services leases to Delta Air Lines. As part of the transaction, in the aircraft industry and had more than $28.9 MUFG is providing a senior secured term loan billion in assets under management as of March 31, facility for a portion of BBAM’s managed fleet. 2020. Delta Air Lines is one of the world’s largest “We are pleased to assist BBAM in financing a airlines by revenues and passenger volume. MUFG portfolio that includes three Airbus A321-200 is one of the world’s largest financial institutions airliners and one Boeing B737-900ER airliner,” says by assets, with approximately $3.1 trillion.1

6 Operates to 25% of its Network by Resuming Direct Flights to and from Abu Dhabi and Dubai

Manama, Kingdom of Bahrain – 02 July 2020: Gulf will operate to 25% of its original network. Being Air, the national carrier of the Kingdom of Bahrain, one of the few airlines that continued operations is proudly announcing that it will resume its direct in the last 3 months, Gulf Air continuously works Abu Dhabi closely with the and Dubai governments flights with authorities scheduled throughout the operations destinations starting on its network from 5 July to resume 2020. Gulf operations Air has been as soon as operating airports open. direct flights Gulf Air boasts between the a flexible and Kingdom agile network of Bahrain by immediately and the adapting to United Arab government Emirates orders and since 1954 civil aviation and both directives Abu Dhabi around its and Dubai network and has have always been responsive been key to continuous successful changes routes within and updates the Gulf Air’s regarding network. The airline currently flies to and from operations to and from its network destinations. London, Paris, Frankfurt, Manila, Athens, Cairo Updates are constantly added on gulfair. and several destinations in Pakistan and with the com/covid19 including travel advice, network addition of Abu Dhabi and Dubai services, Gulf Air and new health and safety procedures.

7 Caerdav Builds Commercial Team with Two New Senior Appointments

Independent MRO and ATO, Caerdav, has welcomed “I was attracted to Caerdav’s ambitious plans, two new senior members to its commercial team, especially for the MRO side of the business, and it’s highlighting the company’s strong position in the exciting to be a part of that. I’m looking forward industry and its ambition for continued growth. to working on diversifying our product offering, Richard Pitts-Robinson joins as Caerdav’s new ensuring we are able to provide our customers Business Development Manager, with Gary Munro with an unrivalled range of value-added services. taking the role of Commercial Executive. Both bring a wealth of experience and have been charged with the task of further developing the business. Formerly Head of Commercial Sales at Aviation Services, Pitts-Robinson has nearly eight years’ industry experience, initially working on the training side of the business before moving into the company’s MRO arm, where his focus was primarily on heavy and base maintenance opportunities for narrowbody and regional aircraft. He says of his appointment: “My work at Flybe has given me some insight into what an airline is looking for from an independent MRO like Caerdav. This puts me in a strong position to help drive the business forward, and to secure a wide range of new partnerships with airlines and lessors worldwide.

8 ” A keen sportsman, Pitts-Robinson ran six half Munro is keen to bring those skills to the aviation marathons in 2019 and is a big fan of surfing sector. He says: “I relish taking on new challenges, and cycling. He is married with a two-year old and the chance to switch to a completely different son. Working closely with Pitts-Robinson in the industry was something I couldn’t resist. That said, commercial team, Gary Munro is making his first I’ve built my career around developing genuine foray into aviation with Caerdav, though he brings relationships with my customers, and I believe that with him vast sales experience from a wide and approach is the same no matter what sector you’re varied range of industries. After 14 years working working in. Munro will act as a liaison and point for an alpine sports company, he joins Caerdav from of contact between Caerdav and its customers, the motor trade, having spent two years as a Sales working on building lasting partnerships with Executive for Porsche, and three years with BMW existing clients, as well as finding new business and before that. A customer-focused sales professional, developing new relationships. “Coming into the business during the COVID-19 pandemic posed its own set of challenges, but it has given me the time to learn the trade and to truly understand what Caerdav is about. With both myself and Richard joining the commercial team, it’s a huge statement of intent for the business; I’m excited to be involved and look forward to what the future holds,” adds Munro. A father of two, Munro is also into sports, particularly golf, where he plays off an impressive three handicap. With years in the alpine sports industry, he is also a qualified ski instructor.

9 Emirates SkyCargo Expands Cargo Connectivity to 100 Destinations

Dubai, UAE, 05 July 2020- Emirates SkyCargo (PPE) and pharmaceuticals to food and outsized will be operating scheduled cargo flights to machinery and components. The freight division 100 destinations across six continents during of Emirates offers an innovative range of cargo the month of July 2020. Some of the new cities capacity options for businesses and exporters on added to the air cargo carrier’s network include its modern, wide-body aircraft fleet. In addition Accra, Algiers, Athens, Fort Lauderdale, Glasgow, to loading of cargo in the belly hold, Emirates Larnaca, Los Angeles, Male, Moscow (SVO), Phnom SkyCargo has introduced loading of select cargo on Penh, Rome, Santiago, Sialkot and Tunis. Emirates the passenger seats and in the overhead bins of the SkyCargo’s network expansion is in response to passenger cabin of its Boeing 777-300ER aircraft. the growing economic activity and demand for Recently the carrier also modified 10 Boeing 777- air cargo capacity from markets across the world 300ER aircraft from its fleet by removing seats along with Emirates’ increased passenger flight from the Economy Class in the passenger cabin to operations. By offering multiple daily or weekly make room for additional cargo. Emirates SkyCargo cargo flight frequencies to major production and also operates 11 Boeing 777 F full freighters consumer markets, the carrier is helping facilitate currently deployed to over 30 destinations every supplies of goods required for combatting the week. Emirates SkyCargo places a strong emphasis current pandemic as well as machinery and on the safety of operations. Working with its equipment required for manufacturing and partners, including ground handlers, the carrier several key economic sectors across global trade has introduced a number of strict guidelines lanes. In addition to scheduled services, Emirates on cabin loading of cargo covering the type of SkyCargo also operates a number of special permitted cargo as well as proper packaging and charter flights every week to transport a range of handling in accordance with IATA guidelines. commodities from Personal Protective Supplies

10 Azul Announces Sale of Equity Stake to Portuguese Government

São Paulo, July 3, 2020 – Azul S.A. (“Azul”) principal amount plus accrued interest of the bond announces today that it has reached an agreement corresponds to approximately R$680 million. The with the Portuguese Government that will enable a transaction remains subject to Azul’s required vital capital injection into TAP SGPS (“TAP”). As part corporate approvals, including shareholders’ of the agreement, Azul agreed to sell its current approval at an extraordinary shareholders indirect participation representing 6% in TAP meeting. “As many other airlines worldwide, TAP for approximately R$65 million and to withdraw has been severely impacted by the Covid-19 conversion rights of its €90 million secured 2026 crisis. With the aid provided by the Portuguese senior bond. In addition, all other contractual government we are able to ensure the continuation conditions remain reinforced, including its status of TAP thereby guaranteeing the integrity of of senior creditor, 7.5% annual interest rate, and our bond”, said John Rodgerson, CEO of Azul. collateral including TAP’s loyalty program. The

11 Magnetic MRO Completes ATR Program for Finnair

Magnetic MRO, a Total Technical Care and asset Norra was signed in spring 2019 and the first management organization, has announced the aircraft was delivered from Magnetic MRO’s Tallinn recent successful completion of ATR program for hangars to the customer on May 8th 2019. The Finland flag carrier, Finnair. During the course of agreement included painting 11 of the ATR aircraft the program, the total amount of 12 aircraft has into the Finnair livery. In addition to the new livery, received interior modifications and 11 of them the aircraft will receive full interior refurbishment. has also left the company’s hangars in Tallinn with For Magnetic MRO’s Interior team, this project a new livery. involved “Finnair ATR producing 72 interior the largest and exterior number of new refurbishment details for an program was aircraft that a complex the company process which has ever involved manufactured multiple for a single Magnetic MRO interior project, departments, like new kick including strips, stickers, painting, line latches and maintenance hinges for and interior overhead production. bins, and The synergy other design between them elements. was outstanding thus we are extremely happy „Can’t claim that I would be a paint expert, with the results and the positive feedback received but I did use up a couple of boxes of red tape from our client,”, shared Rihards Priedkalns, Aircraft on paint inspections in my delivery days. So Paintshop Manager at Magnetic MRO. The contract accepting something this good with only maybe for complete paint work, full interior refurbishment a total of 50 cm red tape needed for the entire and maintenance on all 12 of the airline’s ATR 72 aircraft, was something new to me,” shared fleet operated for Finnair by its partner company Pauliina Heikkilä, Finnair’s representative.

12 Mesa Air Group Signs Five-Year Cargo Contract with DHL Express, Will Add Boeing 737-400F Aircraft to Fleet

• Adding two Boeing 737-400F to fleet. • Five-year around the world. Mesa is well-suited for this new contract with service scheduled to start October mission, and this is just the beginning of what we 2020. • Opening a new crew and maintenance believe will be a long and productive relationship base in Cincinnati. Mesa Air Group, Inc. (NASDAQ: with DHL.” “This new cargo operation opens new MESA) today announced plans to begin providing doors for Mesa,” said Brad Rich, Executive Vice air cargo service for DHL Express with Boeing President and Chief Operating Officer. “We are 737-400F cargo aircraft. Under the agreement, proud to offer new opportunities to our employees Mesa will operate two cargo aircraft from DHL as we enter the cargo industry. In particular, Mesa Express Americas global hub at Cincinnati/Northern pilots will now have the ability to earn a 737 type Kentucky International Airport for a five-year term. rating and receive the highest pay in the regional The company will lease the aircraft from DHL with industry, all without leaving the company.” “I’d like the first scheduled to be in service this October. to thank all the people at Mesa, their counterparts “We are very excited to enter the cargo market at DHL and the FAA, who worked hard to bring this and diversify our business. Flying under contract program to fruition,” said Captain Mike Ferverda, on behalf of DHL is essentially the same business Senior Vice President of Regulatory Affairs, who model Mesa has operated under for over 20 years,” is leading Mesa’s 737 certification process. “While said Jonathan Ornstein, Chairman and Chief much of the industry is challenged given the Executive Officer. “Cargo transport plays a critical present COVID environment, we are pleased to role in the health of communities and economies expand our growth opportunities with this project.”

13 Launch of OWG, a New Airline

A unique travel experience to tropical destinations working since 2018 to create a new airline that Against all odds, a new airline called OWG will soon will position them in the tourist flight market. The take off in Quebec, offering flights to Southern company invested more than $1 million in a think destinations. This new initiative is the fruit of tank to reinvent the way things are done in this Nolinor Aviation’s continued expansion into a industry. They analyzed the best airlines in the new market. For the past 27 years, Nolinor has world to establish the values and mission behind offered charter transportation solutions, mainly the new OWG brand. As OWG President Marco to the Far North, with its fleet of some ten Boeing Prud’homme explains, “The flight portion of your 737s. The Nolinor Aviation team has been secretly trip should be an integral part of your vacation.

14 Traditional airlines have chosen to cut the quality standards against COVID-19, the OWG crew will of their services year after year with no regard benefit from the expertise developed by Nolinor for the passenger experience. Our goal is to win Aviation during the crisis, while they continued to the hearts of Quebecers with a new airline whose serve certain northern destinations by applying mission is to get travellers excited again.” A unique the highest standards in terms of health and travel experience for vacationers Early this year, safety. OWG is reinventing the travel experience the carrier acquired a fleet of Boeing 737-400s by placing its passengers at the heart of its actions and began to transform them so they meet the and the company logo’s design perfectly represents company’s high service and safety standards. this brand spirit. OWG will begin operations Unlike many airlines, the aircraft used by OWG in the coming months and the destinations will be tracked in real-time using a sophisticated will be announced shortly. OWG received the communication system. In order to offer authorization from the Minister of Transport to competitive rates, OWG has opted for the proven provide regular international flight service on July Boeing 737-400 aircraft (158 seats). The interior 6th 2020. You can follow the OWG launch on our of each plane was refurbished with new, lighter website, OWG.com About OWG: OWG is a new and sturdier seats. All of this work represents an airline established by Nolinor Aviation. OWG will investment of several millions of dollars. In addition offer regular flights to some destinations in the to these technological innovations, the new brand Caribbean with its fleet of Boeing 737-400 that can is counting on the quality of its team to provide accommodate 158 passengers. For more details, a travel experience that will exceed customer visit OWG.com or follow @owg on Instagram. expectations. With respect to in-flight protection

15 Lufthansa Launches Second Set of Measures of its Restructuring Program

Effects of the coronavirus pandemic make Group Executive Board and responsible for Airline restructuring in the companies and central Resources & Operations Standards. It also includes departments of Lufthansa Group inevitable restructuring programs that are already underway “ReNew” restructuring program headed by Dr. at the Group’s airlines and service companies. Detlef Kayser The Executive Board of Deutsche Lufthansa AG has approved a second set of measures as part of its overall restructuring program in the wake of the coronavirus crisis. With the first set of measures launched in early April it had been decided, among other things, to reduce the fleet by 100 aircraft and not to resume the flight operations of Germanwings. Following the approval by Lufthansa shareholders of the stabilization measures of the German federal government and the commitments made by the governments of Austria and Switzerland, the Group’s financing is currently secure. However, the complete repayment of government loans and investments, including interest payments, will place an additional burden on the company in the coming years, making sustainable cost reductions inevitable for this reason as well. The comprehensive restructuring program entitled “ReNew” is scheduled to run until December 2023 and is headed by Dr. Detlef Kayser, Member of the Lufthansa

16 These will continue unchanged. In detail, the quickly as possible to avoid a further increase in following resolutions were adopted by the Group interest charges (restructuring program element Executive Board and communicated internally: “RePay”). The number of leadership positions Following the downsizing of the Executive Board throughout the Group will be reduced by 20 of Deutsche Lufthansa AG, the executive board percent. The administration of Deutsche Lufthansa and management bodies of the subsidiaries will be AG will be reduced by 1,000 positions. The process reduced in size compared with 2019. In a first step, of transforming Lufthansa Airline into a separate the number of board members was reduced by one corporate entity is being accelerated. The already position each at AG, LSG Group, planned reduction of sub-fleets and the bundling and Lufthansa Aviation Training. Government loans of flight operations will be implemented. This and equity participations are to be reduced as measure includes the long- and short-haul leisure business at the Frankfurt and Munich hubs. At Lufthansa alone, 22 aircraft have already been phased out ahead of schedule, including six Airbus A380, eleven Airbus A320 and five -400 aircraft. The financial planning up to 2023 provides for the acceptance of a maximum of 80 new aircraft into the Lufthansa Group carriers’ fleets. This will reduce the investment volume for new aircraft by half. Due to the long-term effects of the coronavirus pandemic, which are particularly serious for air travel, there is a calculated personnel surplus of at least 22,000 full-time positions in the companies of Lufthansa Group even in the period following the crisis. Nearly all airlines worldwide are currently affected by personnel surplus. In contrast to many of its competitors, Lufthansa will continue to avoid layoffs wherever possible. This requires agreements on crisis-related measures with unions and social partners representing the Lufthansa employees. So far, negotiations have only been successful with the UFO cabin union.

17 Converts A380 to Meet Cargo Demands During Covid-19 Crisis

Hi Fly has created extra cargo capacity by temporarily removing economy seats of some of its aircraft, including the iconic A380 “Save the Coral Reefs”, to meet the high demand during covid-19 crisis. The Hi Fly Airbus A380-800 (9H-MIP) is now able to offer more than 300m3 of volume capacity and close to 60 tons of cargo.

18 KfW IPEX-Bank: Eurocontrol Term Loan Facility

The mandated lead arrangers HSBC, KBC Bank NV network as part of a Covid-19 financial relief and KfW IPEX-Bank closed the first disbursement package. This term loan with a tenor until end under a term loan facility amounting to EUR 272m of March 2022 aims to mitigate the financial for Eurocontrol on 30 June 2020. Eurocontrol, impact of the COVID-19 crisis in a number of the European Organisation for the Safety of Air Eurocontrol’s member states resulting from the Navigation, is an intergovernmental organisation decline in air traffic and the deferral of payment headquartered in Brussels. It was founded in of route charges. The term loan facility enabled 1963 and has 41 member states consisting of all Eurocontrol to make optional financial liquidity European Union member states and neighbouring available to these member states and their air countries. On behalf of its member states navigation service providers. KfW IPEX-Bank has Eurocontrol amongst other things is entrusted to acted as coordination and structuring agent invoice and collect route charges from airspace and KBC Bank NV has acted as facility agent. users such as airlines. The Eurocontrol member As counsel Baker McKenzie Brussels advised states approved signing of a term loan facility the borrower while White & Case London and to support the continuous operation of safe and Brussels advised the mandated lead arrangers. effective air navigation services in the European

19 Alderman & Co. Survey Reveals a Growing Liquidity Crisis in the Commercial Aviation Industry

DANBURY CONNECTICUT--JULY 14, 2020 – Alderman levels until 2022. Suppliers are looking to cut & Company® a specialized provider of investment expenses ahead of future declines. Financing for banking services to the middle market of the suppliers is not expected to come from banks. global aerospace and defense industry, today “We wanted to get at the heart of both the micro published the results of a recent proprietary and macro-economic issues industry stakeholders survey highlighting the growing liquidity crisis and government officials are facing in light of in the commercial aviation industry. In June, COVID-19,” said Alderman & Company CEO, Bill Alderman & Company surveyed 65 companies Alderman. “The pandemic has caused the most in the middle market of the commercial aviation significant downturn in the history of commercial supply chain. These companies included-but aviation and we want to help companies within were not limited to-manufacturers, distributors, the supply chain pivot to cope.” This is the and service providers (such as maintenance and second in a series of surveys the company plans repair). Key findings included: Airline passenger to conduct regarding the pandemic’s impact on traffic is not expected to return to pre-pandemic the commercial aviation industry supply chain.

20 Liebherr Earns Spot in Boeing Premier Bidder Program

Liebherr-Aerospace announced it has earned a Aerospace Toulouse SAS, Liebherr’s center of spot in the Boeing Premier Bidder Program. The excellence for air management systems based in program recognizes and rewards consistently high Toulouse (France) signs responsible for the 747- performing Boeing Commercial Airplanes suppliers 8 air-conditioning system and engine bleed air and gives them an opportunity to increase their system; and fuel tank pressure regulating valves business with Boeing. Toulouse (France), July 2020 for the 777-200LR as well as for the KC-46. “We are – Liebherr supplies Boeing with major systems extremely proud to have been selected for the and components for various aircraft programs: Boeing Premier Bidder Program. Over the years, Liebherr-Aerospace Lindenberg GmbH, Lindenberg sharing a same ambition and through mutual (Germany), Liebherr’s center of excellence for effort, Boeing and Liebherr have developed a flight controls, actuation, gears and gearboxes, proactive, open and trustful relationship. With our landing gear systems and electronics, produces for liaison office in Everett, we are ensuring a high the 777X the folding wing tip actuation, high-lift proximity between both companies during ongoing actuators (leading edge actuators built to spec, as well as possible future aircraft programs. We trailing edge actuators built to print) as well as are able to provide Boeing with a high level of the power drive unit and hydraulic motor for the support and reactivity”, states Nicolas Bonleux, leading edge actuation system. For the 777 / 777X Chief Commercial Officer, Liebherr-Aerospace & the company provides the main gear steering Transportation SAS. Liebherr joins approximately system, for the 787 Dreamliner, the nose wheel 100 suppliers that have met and/or sustained steering remote electronic unit and for the KC-46 the high quality and delivery criteria required the refueling hose drum drive system. Liebherr- for inclusion in the Premier Bidder Program.

21 Reveals Schedule to 20 Destinations Starting August 1

Kuwait, July 15, 2020: Jazeera Airways today back into Kuwait. We anticipate demand will be announced its schedule for the six-month period strong in August and our schedule focuses on the starting from August 1, 2020, revealing flights most desirable routes – whether people want to to 20 destinations, including high-demand cities fly to visit the family or for medical, touristic and of Dubai, Riyadh, Beirut, Istanbul and Amman. business purposes.’’ “We’ve implemented a range Jazeera Airways Chief Executive Officer, Rohit of health and safety measures in our terminal T5 Ramachandran, said: “We are all very pleased to and on-board our aircraft, to ensure the wellbeing be resuming our flights and serving our customers of our passengers. Aircraft cabins are particularly after a suspension of over four months at Kuwait safe environments with highly efficient air filters International Airport. During this period, we which remove 99.97% of airborne microbes.’’ continued to operate by supporting repatriation Safe check-in procedures Passengers must check- and expatriation flights. Now we can welcome in online and download their boarding pass on citizens and residents who want to travel out and the Jazeera App or print it from the website.

22 Check-in is also available up to 48 hours prior removing dust, allergens, bacteria, viruses and to the flight departure at the T5 Car Park, other irritating particles. Constant airflow ensures where passengers can drop their baggage and that the cabin air is refreshed every 90 minutes collect their boarding pass. When arriving at T5, throughout the flight. Precautionary measures passengers can proceed directly to immigration. Jazeera Airways’ crew full protective gear which Aircraft and terminal disinfection The airline is disinfected before boarding flights. A second performs an anti-viral disinfection program disinfection is performed when disembarking. in which it sprays the cabins after each flight, Passengers are mandated to wear medical face as well as fumigates them using anti-viral masks and gloves at all times. Supported by Kuwaiti high pressure disinfection sprays on seats and non-profit organizations, passengers receive a throughout the cabin. Disinfectant chemicals hygiene pack and pre-packed closed food bags used are internationally approved and safe for all to avoid risk of contamination. Social distancing passengers. The aircraft’s air filters in on-board markers are on the floor throughout the terminal filtration systems are also replaced frequently, to maintain a safe distance from other passengers.

23 RUAG MRO International Commissions New Paint Shop

Oberpfaffenhofen, Germany, 20 July 2020. RUAG or cabin components. “The new facility allows us to MRO International has made a sustainable carry out even the most demanding of paint jobs investment in the future of the Oberpfaffenhofen to the highest quality,” says Stefan Schulz, Team site by commissioning a new combined painting Leader Paint Shop. In addition to the high technical and drying shop for aircraft components. standard, the closed arrangement of the two Customers benefit from the highest quality booths is particularly advantageous since it enables and reduced throughput times. RUAG MRO a direct transition from the painting to the drying International’s aircraft painting facility in process. This eliminates the risk of contamination Oberpfaffenhofen near Munich has recently and helps save time: “While one component is been equipped with a new combined painting drying in the second booth, we can get on with and drying shop. After a two-week test phase in painting the next component in the first booth,” June, the aircraft painting specialists at RUAG explains Stefan Schulz. Customers who have their MRO International have now started operations. aircraft or components painted at RUAG’s one-stop The shop consists of a paint spraying booth shop benefit from the highest-quality workmanship and a drying booth directly adjacent to it, and on individual and very demanding paint jobs, offers sufficient space for painting larger aircraft combined with shorter throughput times which components such as elevators and rudders, flaps lead to an increased availability of their aircraft.

24 The paint shop is also state-of-the-art in terms of develops and supports simulation and training environmental protection, energy consumption systems and solutions for international security and occupational safety, and clearly exceeds forces. Highly specialized in the support of the applicable requirements in these areas. aircraft and helicopters throughout their entire RUAG MRO International offers specialized life cycle, the company includes maintenance, one-stop shop business aircraft solutions at repair and overhaul services, upgrades, and the Munich- Oberpfaffenhofen, Germany, where all development, manufacture and integration of required services are performed within one single subsystems and components in their service downtime, suiting individual customer schedules. portfolio. In addition, as the manufacturer (OEM) The comprehensive portfolio includes line, base of the Dornier 228, a versatile aircraft for special and heavy maintenance (MRO) checks, cabin missions as well as passenger and cargo operations, interior restyling and refurbishment, avionics and RUAG International focuses on customer support system upgrades, component services, aircraft solutions, including OEM services. Moreover, painting, modifications, pre-purchase inspections RUAG MRO International is a developer, OEM (PPI), AOG, and support and consulting. RUAG and system support provider for simulation and MRO International is an Authorized Service Center training systems technology for live, virtual and for Embraer, a Service Center for Bombardier, and constructive (LVC) training. Complex and flexible is certified for the Gulfstream G550. RUAG MRO functions, and a holistic approach, support realistic International is an independent supplier, support training scenarios, adapted to mission goals, at provider and integrator of systems and components individual, team and unit instruction levels. for civil and military aviation worldwide. It also

25 HAECO Xiamen Provides Cargo Carriage Solutions to Support Cathay Pacific Airways’ Covid-19 Operational Demands HAECO Xiamen, a member of the HAECO Group, with Boeing’s Multi Operator Message (MOM- announced today it has provided Cathay Pacific MOM-20-0239-16B) guidelines. The modification Airways (“Cathay Pacific”) with a successful design kit was directly sourced and fabricated on site engineering and certification solution that will by HAECO Xiamen. In addition, HAECO Xiamen allow the airline to utilise sections of its Boeing has obtained HKCAD’s minor change approval 777 passenger cabins in order to carry cargo. The for Cathay Pacific, which allows cargo to be modification is covered by a Supplemental Type placed on the seats of the airline’s Certificate (“STC”) and has been directly approved aircraft. This second modification kit, again by the Hong Kong Civil Aviation Department fabricated by HAECO Xiamen, includes cargo (“HKCAD”). It also uses HAECO Xiamen’s HKCAD bags secured onto the existing seat structures. Part 21J Design Organisation Approval (“DOA”). It has been reclassified by HKCAD as a minor The scope of work involves removing economy change on a time-limited basis. Both solutions and premium economy seats to install cargo will allow Cathay Pacific to utilise a greater bags, which are secured with cargo nets and number of its aircraft for cargo-bearing flights, straps, and other associated safety equipment. enabling the airline to carry more essential goods The modification has been designed to be in line internationally during the COVID-19 pandemic.

26 AerCap, Air Transat and Airbus Celebrate Milestone A321LR Sustainable Aviation Fuel Delivery Flight

AerCap Holdings N.V. (“AerCap”) (NYSE: AER), the generate significant fuel savings while reducing the world’s largest Airbus A320neo Family lessor, environmental impact of its operations. AerCap is has today announced the delivery of two new committed to facilitating the move towards more A321LRs on operating lease to Air Transat. Air sustainable air travel underpinned by its target to Transat has today operated the world’s first transition its fleet to approximately two-thirds new A321LR delivery flight from the Airbus facility technology aircraft by 2021.” “We are delighted in Hamburg to , Canada, using a blend to welcome the fifth and sixth Airbus A321LRs to of sustainable aviation fuel (SAF). The flight, our fleet today and to be, together with AerCap, totalling 3115 nautical miles (5769 kilometres), the first Airbus customer to take advantage of the had a carbon neutral footprint with the airline new SAF delivery option at its Hamburg plant,” said purchasing carbon credits to offset the Co2 Jean-François Lemay, President of Air Transat. “This emissions from the fossil fuel portion burned initiative is part of our commitment to reducing during the delivery flight. “We are very pleased our own carbon footprint while contributing to to be a part of this historic milestone, working the achievement of the airline industry’s ambitious together with our partners at Airbus and with our decarbonization targets. In addition, the A321LR long-time customer, Air Transat, to help them meet is the ideal aircraft for the transformation of our their sustainable growth ambitions,” said Philip fleet and the relaunch of our flight operations Scruggs, President and Chief Commercial Officer on July 23, thanks in particular to its medium of AerCap. “The A321LR, with up to 15 percent capacity, extended range and fuel efficiency.” lower fuel consumption, will allow Air Transat to

27 ATSG’s PEMCO Receives FAA Approval for its Boeing 737-700 FlexCombi™ Conversion Program

Air Transport Services Group, Inc. (NASDAQ:ATSG) announced today that the U.S. Federal Aviation Administration has approved its Passenger-to-FlexCombi™ conversion program for the Boeing 737-700 Next Generation aircraft. ATSG said the FAA issued a Supplemental Type Certification for its unique conversion design for the Boeing 737-700, offering customers two different main-deck freight and passenger configurations as well as full-freighter mode. The aircraft will be marketed as B737- 700FC (FlexCombi™). PEMCO Conversions, a division of ATSG subsidiary Pemco World Air Services, Inc., developed and managed the program from its headquarters in Tampa, FL. “To reach this moment in the development of our 737-700 passenger- to-freighter conversion program solidifies our presence as a global leader in the marketplace,” said Mike Andrews, director of conversion programs for PEMCO.

28 “We are pleased with the performance of our Tampa 35,000 pounds of payload in seven pallet positions; cargo conversion team and continue to develop or full-freighter mode consisting of a 3,370-cubic- innovative products meeting increased customer foot cargo hold for up to 40,000 pounds of payload demand for 737 conversions.” The launch customer in eight pallet positions. The available positions will for the PEMCO B737-700FC is Bahrain-based accommodate 88” x 125” or 88” x 108” pallets, with Chisholm Enterprises, an internationally recognized the seventh and eighth positions accommodating provider of tailored aviation and business solutions smaller pallets. PEMCO also is developing a B737- in the Middle East. Its subsidiary Texel Air, a non- 700F full-freighter conversion program. Those scheduled cargo airline, will operate the B737- freighters would feature nine pallet positions, 700FC from Bahrain International Airport. PEMCO up to 45,000 pounds of payload, and 3,844 cubic General Manager Jeff Becker added, “Chisholm is feet of total volume. The available positions will a great partner that provides unique services in accommodate 88” x 125” or 88” x 108” pallets, its market, so the flexibility of our 737 conversion with the ninth position accommodating a smaller products continues to meet Chisholm’s needs as pallet. PEMCO is the global leader in narrow- its fleet grows.” Now that the 737-700 conversion body passenger-to-freighter aircraft conversions, program has received FAA approval, PEMCO plans having developed over 70 STCs and modified to seek certification from the European Aviation over 350 aircraft. PEMCO’s 60-plus customers Safety Agency and the Civil Aviation Administration select the company’s passenger-to-freighter of China. The PEMCO B737-700FC (FlexCombi™) conversions for their superior cargo door and offers three configurations: a 24-seat cabin plus loading systems, superior operating functions, a 2,640-cubic-foot cargo hold for up to 30,000 on-time turnaround, and PEMCO’s track record pounds of payload in six pallet positions; a 12-seat of 2 million hours of safe, reliable operation. cabin plus a 3,005-cubic-foot cargo hold for up to

29 Cainiao Teams up with Volga-Dnepr Group for a New Cargo Route from China to Europe to Accelerate Cross-Border Logistics Volga-Dnepr Group (the Group), one of the leading and introduction of digital solutions. Starting groups of worldwide, together from An-124-100, we have then begun operating with its strategic partner, CargoLogicAir, continues other freighters within the Group for Cainiao to expand its partnership with Cainiao Network to guarantee a greater choice and convenience (Cainiao), pursuing the growing demand for through our CargoSupermarket concept. e-commerce shipments. On July 14, AirBridgeCargo Airlines (ABC), part of VDG, operated its first flight for Cainiao from Hong Kong (China) to Madrid (Spain), while also providing capacity on the way back from Spain. ABC’s Boeing 747 freighter carried over 100 tonnes of parcels, all of which contained high-tech products and consumer goods exporting from the sellers on AliExpress e-commerce platform. Starting from weekly frequency, the flights will be gradually increased till three in August. Apart from that, the flight will be operated via Liege (Belgium) that has been another popular e- commerce destination within VDG’s network. The parcels will be quickly distributed all over Europe after arriving in Liege and Madrid, through Cainiao’s network of trucking and terminal distribution in Europe, ensuring the delivery timeframes of the whole process from China to Europe are kept within 10 days. Madrid will complement existing ABC Northern destinations in Spain, Zaragoza, while offering the options to deliver to Southern and Central Spain from the Hong Kong catchment area. “Since 2018, we have been closely working with Cainiao Network to develop fast, flexible, and cost-efficient solutions. This included expansion of our network, realignment of commercial and operational issues, choice of the most appropriate freighter type,

30 We will further support Cainiao with the fleet flights to safeguard cross-border logistics and help of best-in-class 39 freighters to accommodate Chinese merchants sell globally.” The new route will e-commerce volumes, which have tripled within the support cross-border deliveries, which have been Group for the first five months of 2020 and reached booming for the last years and intensified during the level of 20,000 tons,” highlighted Tatyana the Covid-19 lockdown period when consumers Arslanova, Executive Operating Officer, Volga-Dnepr refocused from offline to online shopping. Group. “Cainiao has been working with partners globally to raise logistics efficiency and optimize user experience,” said William Xiong, Cainiao’s Chief Strategist and General Manager of Export Logistics. “This year, Cainiao plans to launch 1260 chartered

31 Sabena Technics and ASL Airlines Extend their ATR Support Agreement

ASL Airlines Ireland Ltd has extended its strong in these challenging times. With our customized partnership with the European MRO for the support PBH program, we are able to keep component of their fleet of four ATR 42-300F and twelve ATR supply, repair & overhaul costs optimized while 72-200F. Within the scope of this contract, Sabena maintaining high reliability, fleet performance and technics will provide the airline with a large range timely AOG support” said Philippe Delisle, Chief of solutions including full PBH support, pool Operating Officer of Sabena technics. “ASL Airlines access as well as repair and overhaul of rotable Ireland Ltd are pleased to join forces with Sabena components. Sabena technics will be servicing ASL’s technics for Rotable Component Support on our fleet of ATRs from its Dinard site, which benefits fleet of ATR Aircraft. We look forward to working from a recognized expertise in regional aircraft together to ensure that our customers continue types. “We are proud to count ASL Airlines as one of to benefit from ASL’s industry leading levels of our most important European cargo operators for operational reliability, safety and customer’s the past 15 years and this agreement demonstrates satisfaction” said Cormac Martin, Logistic Manager their confidence in the quality and efficiency of of ASL Airlines Ireland Ltd. Sabena technics our solutions. It is a true mark of trust, especially currently have over 220 aircraft under PBH support.

32 Boeing Secures Aircraft Finance Germany Order for Two 737-800 Boeing Converted Freighters

SEATTLE, July 23, 2020 — Responding to strong 2018, the 737-800BCF is now operated by 10 near and long-term express cargo demand, Aircraft customers across four continents. Boeing has Finance Germany (AFG) signed an agreement ramped up production in response to increased with Boeing [NYSE: BA] for two 737-800 Boeing demand with 132 orders. To date, the company Converted Freighters (BCF). Based on the popular has delivered 34 737-800BCFs. “Aircraft Finance Boeing Next-Generation 737, the 737-800BCF Germany is known for creating bespoke solutions offers operators newer technology, lower fuel that allow their customers to win in a dynamic consumption and better reliability than other market. We are pleased that they are investing in standard-body freighters. Primarily used to carry the 737-800BCF,” said Ihssane Mounir, Boeing’s express cargo on domestic or short haul routes, senior vice president of Commercial Sales and the airplane is capable of carrying up to 23.9 tons Marketing. “The 737-800BCF capitalizes on the (52,800lbs) and flying up to 2,000 nautical miles Next-Generation 737’s efficiency and unmatched (3,750 km). “We are always looking for the best reliability and the converted freighter program is way to invest and deploy aircraft that support a great way to extend the life of the platform. The our customers,” said Peter Koster, AFG’s Head Boeing freighter family, which includes production of Freighter Trading. “The 737-800BCF gives us and converted freighter options, provides more the opportunity to serve a growing market with than 90 percent of the world’s freighter capacity, a workhorse that can reliably and efficiently fit offering an unmatched selection of capacity into most operators’ fleets.” First delivered in and capability with superior economics.

33 [email protected] +2 01021400441 www.avimeter.com Cascade 101, Mahe- Seychelles