Issue 26 June 2011 MARKET REPORT A PUBLICATION OF SAAB AIRCRAFT LEASING

MESABA’S SAAB 340Bplus’ REBRANDED FOR US AIRWAYS EXPRESS

SAAB 340 FLIES CARGO IN HAWAI‘I AND JAMAICA

EMPIRE’S TIM KOMBEREC TALKS ABOUT SAAB MAINTENANCE WORKK

SMR_May2011 cc.indd 1 5/31/11 5:03 PM MESSAGE FROM CONTENTS Michael Magnusson Saab re-delivers seven Saab 340Bplus’ in new US Airways Express livery...... 3 Flexibility remains key to SAL’s success Pinnacle spreads its wings as long-time operator...... 4-5 Here we are at a new year and a new decade of regional aviation business. Saab Aircraft Saab Profi le: Phil Trenary ...... 5 Leasing concluded last year on a high note with 30 aircraft transactions including seven Pulling a Saab 340 in aid of the RNLI ...... 6 for Pinnacle Corp. (a contract for US moves Saab 340s to ...... 7 Airways Express). Total business included 10 sales and 20 leases. We conducted business SkyBahamas Airlines upgrades to a Saab 340B ...... 7 in various countries: Argentina, Australia, Bahamas, , Mongolia, , Thai- Empire Aerospace adds the Saab 340 land, the UK and the US. For 2011, we expect to its maintenance portfolio ...... 8-9 activity to remain high. We began the year with one of the highest-paced deliveries we had in Saab Profi le: Tim Komberec of Empire ...... 9 a long time with nine Saab 340Bplus’ delivered in three months. features Saab 340 Hawaiian-style ...... 10 Activity continues as we near the mid-year point with a number of interesting cam- paigns developing, some in places we have never done business before. This trend Nok Mini marks new routes in Thailand ...... 11 again shows the ever-changing nature of our business and its customers. SAL hopes to announce agreements later in the year. Exec Direct fi lls cargo niche from Jamaica hub ...... 12

World events affecting the industry Vincent Aviation upgrades fl eet with two Saab 340Bs ...... 13 At the same time, we are also reminded once again of how vulnerable our business is to political and other events in the world. Obviously developments in the Middle East Saab Destination: and North Africa are creating uncertainty that has pushed oil prices to $110/barrel Syracuse, New York ...... 14 which in turn have already caused some of the major US airlines to cut back activity for Support Centers offer Saab operators worldwide service ...... 15 2011. We have seen the tragic events in Japan unfold which forced us to relocate our Tokyo offi ce to Bangkok until things stabilized. Political and fi nancial pressures in some Saab Supplier: European countries are affecting the value of the Euro, and in the US, we watched an Geven seats introduce new level of comfort ...... 16 intense budget debate play out on Capitol Hill that put pressure on the dollar. For- tunately, unemployment is dropping and consumer spending is on an uptick, both of SAL announces much improved activity for 2010 ...... 17 which are vitally important for the recovery of the US economy. Saab at Aero India 2011 ...... 18 As we look at the higher fuel prices, less travel demand and the fl uctuating exchange rates that have all affected our dollar-based business, it’s easy to see how unpredict- Saab 2000 operators to meet for 2011 conference...... 19 able and challenging the business can be. I don’t envy airline managers trying to predict 2011 or even 2012. Flexibility is the key word. Mark your calendar ...... 19

Of course this can be good for us at SAL, since our business is previously operated, Saab operators map...... 20 fuel-effi cient . It is no secret that used aircraft can be a low-risk option in uncertain times when fuel effi ciency is more important than ever. Even though there Cover photo: Paul Bryson Saab Aircraft Leasing has quickly are challenges, we can see that our largest customers, Rex and Pinnacle, are doing delivered seven Saab 340plus’ quite well and adapting to the market realities. Their large fl eets of Saab 340s are back to Mesaba, which are now in part of that fl exibility. US Airways Express livery. Having a hand in this refurb job was Tim On the Saab 2000, we see how our long-time customers such as Eastern, Golden and Komberec’s Empire Aerospace of OLT are using the aircraft both on scheduled services, as well as meeting a wide variety Coeur d’Alene, Idaho (in featured circle). of charter opportunities. All three operators are also using the aircraft to fl y on behalf of outside contractors, whether its airlines, Airbus or oil companies. Market Report is published by We just attended the “spring” ERA meeting in Malta, where we caught up with many Saab Aircraft Leasing of our European operators. In the US, we attended the 36th Annual RAA Convention Editor: Kelly Murphy in Nashville mid-May. In what is becoming an annual routine, we were able to meet Emerald Media many customers and catch up in a relaxed atmosphere. We will also exhibit the Saab [email protected] 2000 at the Paris Air Show. This follows a very successful exhibition at “Aero India” in Europe: Alison Chambers February with both the Saab 340B and Saab 2000. Emerald Media [email protected] In closing, you can see that SAL’s fl exibility enables us to lay the groundwork for a solid 2011. Design and Layout: Aeris Graphic Design [email protected]

Printed in USA June 2011 ©2011 Saab Aircraft Michael Magnusson President and CEO, Saab Aircraft Leasing

SMR_May2011 cc.indd 2 5/31/11 5:03 PM MARKET REPORT SAAB RE-DELIVERS SEVEN SAAB 340Bplus’ IN NEW US AIRWAYS EXPRESS LIVERY

WHILE IT’S NOT EXACTLY RARE FOR AN Pinnacle and Mesaba defi ned a workscope each of these facilities oversaw and monitored AIRLINE TO LEASE AN AIRCRAFT THEY package of maintenance tasks to be completed the workscope completion. HAD PREVIOUSLY RETURNED, SAAB on the aircraft before they were scheduled for RECENTLY SEALED A UNIQUE DEAL TO delivery. Th ree separate Maintenance, Repair All aircraft feature fresh paint in US Airways RE-DELIVER SEVEN FORMER MESABA and Overhaul Centers (MROs) undertook the Express livery, with either new, or deep-cleaned SAAB 340Bplus AIRCRAFT BACK TO work including Embraer Aircraft Maintenance interiors, and include newly painted sidewalls MESABA – BUT THIS TIME IN US AIRWAYS Services in Nashville, TN, C & L Aerospace in and new carpet. Th e livery work was handled EXPRESS LIVERY. ORIGINALLY THE Bangor, ME and Empire Aerospace in Coeur by Embraer Aircraft Maintenance Service’s SAAB 340Bplus LEASES WERE HELD BY d’Alene, ID. A Saab representative stationed at paint shop and Allied Painters in Everett, WA. NORTHWEST AIRLINES, THEN BY DELTA AFTER THE CARRIERS MERGED, AND DURING THE OVERALL PROCESS, MESABA WAS ACQUIRED BY PINNACLE AIRLINES CORP. IN JULY 2010.

With US Airways launching expanded service at New York’s LaGuardia airport on April 1, Saab organized a fast-paced delivery of the aircraft to Mesaba with fi ve in February and the remaining two in March.

MARKET REPORT | June 2011 3

SMR_May2011 cc.indd 3 5/31/11 5:03 PM MARKET REPORT

PINNACLE SPREADS ITS WINGS AS LONG-TIME SAAB 340 OPERATOR

“I’ve been a IN JUNE 2007, SAAB erator worldwide and will fl y the Colgan in 2007 and Mesaba in FEATURED PHIL TRENARY in numerous major July 2010. Pinnacle now operates AND MIKE COLGAN ON THE carrier liveries. a total of 59 Saab 340s. real believer COVER OF MARKET REPORT GIVING READERS AN INSIGHT Adding Colgan and Mesaba to “We’ve had a long-term relation- in turboprop ON HOW TWO LONG-TIME the Pinnacle family has allowed ship with Saab, and they have SAAB 340 OPERATORS FOUND the company to reach its end been good partners and friends. aircraft for a CREATIVE AND STRATEGIC goal: two strong operators with We look forward to continuing SOLUTIONS TO GROW THEIR one fl ying turboprops and the that relationship,” says Trenary, long time. It AIRLINES WITH PINNACLE’S other regional jets. “I’ve been underlining that the Saab 340 is ACQUISITION OF COLGAN. a real believer in turboprop an economical and fuel-effi cient does a job no aircraft for a long time. It does turboprop with one of the stron- Fast-forward four years, Pinnacle a job no other aircraft can do,” gest support service programs in other aircraft now operates feeder service for outgoing President and CEO Phil place, even though the aircraft is Delta, United/Continental and Trenary shares with SMR. no longer being manufactured. can do.” US Airways through its Colgan and Mesaba subsidiaries with a Marriage made in heaven Having recently completed a Phil Trenary fl eet of Saab 340s and the larger With two aircraft turboprop pilot agreement with all three Bombardier Q400s. models in his fl eet—the larger carriers, the next step is to physi- Q400 and the Saab 340, Trenary saw cally move the headquarters of With over 7,700 employees and the “marriage made in heaven” the three carriers and its three a combined fl eet of 202 regional when the company purchased cultures to one location. Down- jets and 79 turboprops, Pinnacle two long-time Saab operators— town Memphis was selected, is now the largest Saab 340 op-

4 MARKET REPORT | June 2011

SMR_May2011 cc.indd 4 5/31/11 5:03 PM MARKET REPORT

SAAB PROFILE:

Phil Trenary

PHIL TRENARY’S PASSION FOR AVIATION BEGAN WHEN HE WAS 15-YEARS-OLD GROWING UP IN OKLAHOMA. HE DREAMED ABOUT BEING AN AIRCRAFT MECHANIC BECAUSE “WORKING ON AIRPLANES WAS BETTER THAN WORKING ON TRACTORS.” HIS UNCLE, WHO OWNED A 1946 TAYLORCRAFT IN DISREPAIR, SAID “IF YOU CAN PUT IT BACK TOGETHER, YOU CAN KEEP IT AND LEARN HOW TO FLY.” AND SO THE YOUNG TRENARY DID JUST THAT AND OBTAINED HIS PILOT’S LICENSE. “THAT’S WHEN I REALLY FELL IN LOVE WITH BEING IN THE AIR AND THE FLYING PART OF IT.” His fi rst memorable job was as plan is in place. “It marries up people…that is the rule of a fl ight instructor at Oklahoma perfectly. Th e plan is in place commitment. My favorite say- State where Trenary eventually and ready for new business ing is Winston Churchill’s “… became the department head. coming in. It’s a good time for never, never give up.” He moved on to become a pilot a new person to come in, get for Petroleum where he fl ew their feet on the ground, and What is your biggest international and domestic op- really get to know the airlines challenge? erations for the major compa- and be ready to compete.” I think it’s been the labor ny and then became involved issues of pilots. I have such ad- in their leasing, charter and Saab Market Report asked the miration for pilots, and I was and by the end of 2011 Pinnacle FBO business in the late 1970s. long-time Saab 340 opera- very disappointed that it took Airlines Corp. will literally be His fi rst airline job started in tor a few questions before he so long to get this last contract integrated as an airline with the 1984 in Stillwater, Oklahoma departed. fi nalized. While it turned out city at this location. when Trenary founded Exec well, I was very frustrated that What inspires you? Express Inc. which later moved the process didn’t go faster and “We’re taking the best of the best Seeing the diff erence avia- to Fort Worth, Texas and be- with fewer bumps in the road. and moving to a common culture tion makes in people, if it’s in came . which is Pinnacle Airlines Corp. your blood you’ll continue to What is the best career advice Th at’s very diffi cult to do when At press time, Trenary an- pursue it. It requires a lot of you ever received? you are spread apart. Th e new nounced he would be leaving responsibility and work to pur- My greatest mentors have high quality work location is a Pinnacle on March 24, 2011, sue a career in this industry, been my parents. They gave vertical structure where all the “to pursue other interests.” He but you are part of a system, me two completely different employees are brought together shared with SMR the move has an incredible fraternity that work perspectives. My mother naturally, and employees can been discussed with the board people are passionate about taught me how to treat people, walk to 40 diff erent restaurants over time but “something was whether they are fl ying the and my father taught me to and work in a common area,” always hanging out there that aircraft or moving bags. I feel push, push – don’t waste your shares Trenary. Th e move to was incomplete.” Now at the fortunate to be a part of this life in a job you are not happy downtown Memphis will begin end of the 2011 fi rst quarter, fraternity and see the impact it with. I’ve been doing this for in September and be completed Trenary notes that everything has on people. over 30 years, and all that by yearend. is stable – it is the year of the time I’ve never not hopped What is the most important integration transition, the SMS out of bed looking forward to trait needed to succeed? safety program is complete, go to work…even with all the Believing in what you are the labor agreements have challenges. doing and believing in your been done, and the transition

MARKET REPORT | June 2011 5

SMR_May2011 cc.indd 5 5/31/11 5:03 PM MARKET REPORT Photo: RNLI/Richard Smith

PULLING A SAAB 340 IN AID OF THE RNLI

LOGANAIR DONATED ITS SAAB Local newspaper reporter Grant Th e RNLI has saved more than 340 OPERATING ON BEHALF OF Smith of Th e Courier reported 139,000 lives since its foundation FOR A FUND-RAISING 15 men used their strength to in 1824. Th rough the years, there EVENT IN EASTERN SCOTLAND haul the 13-ton Saab 340 along have been countless stories of AT DUNDEE AIRPORT DURING the taxiway. Th e plane pull lasted courage against a background of THE FOURTH QUARTER 2010. about three minutes with the Saab technological developments and A LIFEBOAT CREW FROM 340 traveling 541 ft /165 m. Th eir social change. Th e Broughty crew BROUGHTY FERRY, NEAR eff orts raised about USD$3300/ is the busiest in Scotland with 103 DUNDEE, PROVED THEY £2000 for the Royal National launches last year. HAD PULLING POWER WHEN Lifeboat Institution (RNLI) which THEY SWAPPED THEIR ALL- relies entirely on public donations WEATHER LIFEBOAT FOR A to run its life-saving service. PLANE AT DUNDEE AIRPORT.

6 MARKET REPORT | June 2011

SMR_May2011 cc.indd 6 5/31/11 5:03 PM MARKET REPORT

CALM AIR MOVES SAAB 340s TO BEARSKIN AIRLINES

Long-time Saab 340 Canadian op- and Northern Ontario since 1993. erator Calm Air wet-leased a Saab 340 to Bearskin Airlines expand- Also operating the smaller 19-seat ing Bearskin’s northern Ontario Metro, Bearskin will use the Saab service to include Montreal. 340 on routes needing increased capacity. A second Saab 340 will be On May 1, Bearskin launched added in September 2011. Named after ’s Bearskin Lake service between Waterloo Inter- Founded in 1963, Bearskin Airlines is one of Canada’s oldest regional national Airport and Montreal “We’re excited to be moving into airlines offering more than 100 scheduled daily fl ights to 17 destina- Trudeau International Airport the next chapter for Bearskin off ering fi ve daily roundtrip fl ights. Airlines,” says Bearskin President tions from Winnipeg in the west to Ottawa in the east. The Waterloo Th e 34-seater will also be used for Harvey Friesen. “Th e Saab 340 Region is the southernmost destination served. Named after the off ers enhanced comfort for many service between Winnipeg, Red Northern Ontario community of Bearskin Lake, the airline is owned by Lake, Sioux Lookout and Th under loyal customers who have sup- Exchange Income Corporation (EIC) of Winnipeg. EIC also owns Perim- Bay. Bearskin Airlines has pro- ported our (northwestern) Ontario vided a direct link between Ottawa company since 1963.” eter Aviation, and Calm Air.

SkyBahamas Airlines launched service to its fi rst destination on March 25 to Fort Lauderdale Executive. The Nassau-based regional upgraded one of its three Saab 340As to the Saab 340B model. The airline operates regular fl ights into Exuma and has expanded its routes to Freeport, Grand Bahama; Bimini; Marsh Harbour, Abaco; New Bight and Arthur’s Town, Cat Island and its latest addition, Providenciales, Turks & Caicos.

MARKET REPORT | June 2011 7

SMR_May2011 cc.indd 7 5/31/11 5:04 PM MARKET REPORT

EMPIRE AEROSPACE ADDS THE SAAB 340 TO ITS MAINTENANCE PORTFOLIO OFFERING ALL KINDS OF SAAB 340 SUPPORT SERVICES IS A KEY COMPONENT IN THE SUCCESS OF BUILDING AN EVER-EXPANDING WORLDWIDE SAAB 340 CUSTOMER LIST. AN INTEGRAL SERVICE IS MAINTENANCE COMPLETED BY A NUMBER OF ESTABLISHED FACILITIES ACROSS THE GLOBE. (SEE PAGE 15 FOR A MAP OF SAAB EXPERIENCED SUPPORT CENTERS) IN THIS ISSUE OF SMR, WE WILL FEATURE THE US LOCATIONS AND ONE OF THE NEWEST MAINTENANCE PROVIDERS: EMPIRE AEROSPACE.

Based at Coeur d’Alene Airport such is structured to meet the “Saab has a tremendous re-mar- in northern Idaho, Empire Aero- aggressive schedules of regional keting program, and prides itself space is a new provider of Saab operations. that their aircraft are delivered 340 heavy checks and mainte- better than brand new. We have nance work. Known for its turbo- “We’ve invested in significant a similar philosophy at Empire prop work, Empire also services tooling and training for the and want airplanes to leave here the ATR 42/72 and Bombardier Saab 340, and we’re pleased better than when they get here,” Dash 8 series for maintenance that the company saw the need shares Komberec. and modification. to add another vendor to pro- vide Saab 340 maintenance,” Other US locations for Saab Empire is a Part 145 Repair Sta- Empire CEO Tim Komberec Maintenance tion attached to a Part 121 air tells SMR. In the Northeast, C&L Aviation carrier, , and as Services of Bangor, Maine,

8 MARKET REPORT | June 2011

SMR_May2011 cc.indd 8 5/31/11 5:04 PM MARKET REPORT

SAAB PROFILE: Tim Komberec EMPIRE CEO

“We can do that!” is the company motto emblazoned on Empire Aerospace’s marketing materials as well as the guiding force for its more than 300 employees. Its CEO, Tim Komberec, has drawn from his extensive aviation background to lead the company’s growth over the past 10 years. Empire started as a FedEx Feeder Operator in 1988 operating Cessna 208 aircraft . In 1989, FedEx added the Fokker F27 to its fl eet, and in 2004, the F27 was phased out and replaced by ATRs. With a new facility available at the Coeur d’Alene Airport in northern Idaho, Empire Aerospace was born to fi ll a niche in the MRO market to provide a high level of service to turboprop custom- continues to be a large supplier ers. “Because we had years of expertise fl ying turboprops, we knew of parts for both the Saab 340 SAAB 340s RECEIVE we could off er excellent nose-to-tail service,” notes Komberec. aircraft and its GE CT7 power- MAINTENANCE WORK AT plant. The company was previ- VARIOUS US FACILITIES. A longtime aviator, Komberec used his GI bill when he got out of ously known as Telford Aviation (TOP TO BOTTOM), EAMS the US Army in 1970 to learn how to fl y and to obtain his ratings. Services but was acquired by IN NASHVILLE, TN; C&L His fi rst commercial airline pilot job was for Cascade Airways fl ying Brisbane, Australia-based parts AEROSPACE GROUP IN Beech 1900s. Aft er the airline shut its doors in 1984, he worked the company C&L Aerospace Group. BANGOR, ME; AND EMPIRE operations side with both in Billings, Montana then Embraer Aircraft Maintenance AEROSPACE IN COEUR a new startup airline called NPA, a United Express Jetstream opera- Services’ (EAMS) facility in Nash- D’ALENE, ID tor. He then joined Empire as Director-Operations in 1993, but aft er ville, houses numerous 18 months left to join another startup carrier called Western Pacifi c Saab aircraft jobs. With more than Airways in Colorado Springs, Colorado. He was later enticed to re- 300 employees on-site, it remains turn to Empire “which had a good fi nancial and customer base, yet the facility with the longest- was relatively small with unique opportunities. I agreed and never standing relationship with Saab looked back.” heavy maintenance work. Located on the Nashville airport property, While Komberec acknowledges there has been some tough eco- EAMS off ers various services nomic times “we’ve continued to foster those quality customer including component and paint relationships and made our own economic reality.” services.

MARKET REPORT | June 2011 9

SMR_May2011 cc.indd 9 5/31/11 5:04 PM MARKET REPORT ALOHA AIR CARGO FEATURES SAAB 340 HAWAIIAN-STYLE

IN THE HAWAIIAN LANGUAGE, time that the aircraft will call the Aloha Same Day, the Saab will THE WORD “ALOHA” TAKES ever-growing collection of islands supplement the existing service ON MANY DIFFERENT “Home” or “Kauhale”. with better frequency and even MEANINGS. AFFECTION, additional destinations includ- LOVE, PEACE, COMPASSION AAC’s lineage dates back many ing Lihue (currently only off ered AND MERCY ARE A FEW OF years as a business unit of the with overnight service), Lanai and THE COMMON MEANINGS, now defunct Aloha Airlines. For Molokai. Th e latter two destina- BUT THE MOST POPULAR more than 60 years, Aloha Airlines tions are smaller airports, which USE OF “ALOHA” THESE provided service within Hawai‘i will be only accessible to the Saab. DAYS IS THAT OF A SIMPLE and to the US mainland. During GREETING, “HELLO”. the fi rst quarter of 2008, Aloha Along with the Saab 340A Cargo WE WOULD LIKE TO SAY Airlines was one of the many aircraft , AAC’s fl eet consists of “ALOHA” TO THE NEWEST businesses that fell prey to record four Boeing 737-200 freighters MEMBER OF THE SAAB setting fuel prices and aggressive that were originally Quick Change FAMILY, ALOHA AIR CARGO. competition. Even though the (QC) aircraft , but have been fully THEIR SAAB 340A CARGO passenger airline’s doors closed converted to the freighter ver- SERVICE OUT OF HONOLULU forever, a Seattle-based conglom- sion. Th is mixed fl eet of large and COMMENCES IN JUNE 2011. erate of transportation, energy and small aircraft will provide AAC’s Aloha Air Cargo (AAC) captures real estate companies, Saltchuk customers with fl exibility for their quite a few fi rsts within the Saab Resources, saw the cargo business varying shipping needs. family. Not only will this be the unit as a meaningful service to the AAC also provides maintenance fi rst Saab 340A Cargo service in Islands, and purchased AAC. and engineering services to airlines Hawai‘i, this operation will also Saab 340 to build Aloha in the State of Hawai‘i through its serve as the fi rst Saab 340 opera- same day service Aloha Tech Ops division. tion on the Hawaiian Islands. Even According to Michael Orozco, though the Saab has seen the sun- AAC’s Marketing Manager, the For more information about Aloha rise over the Koolau Mountains Saab 340A Cargo will be used to Air Cargo please visit their website many times while parked on the build its customer base for the at www.alohaaircargo.com. ramp at Honolulu International current Aloha Same Day service Airport en route to Asia and the off ering. As demand increases for Pacifi c Rim, this will be the fi rst

10 MARKET REPORT | June 2011

SMR_May2011 cc.indd 10 5/31/11 5:04 PM MARKET REPORT

NOK MINI MARKS NEW ROUTES IN THAILAND WITH SPECIAL BLESSING

Nok is the name of a colorful, small Th ai bird, hence the colorful paint schemes emblazoned Chiang Rai Saab 340 on Nok Mini’s Saab 340Bplus’. C208 Pai Mae Nan Operating two Saab 340Bplus’ from its main Hong Son Phrae base at Bangkok’s downtown Donmuang Air- Chiang port, Nok Mini recently increased its network Mai Udon Thani with a regional hub at Chiang Mai, Thailand’s Mae Sot Sakon Nakhon

second largest city. Further expansion plans Khon Kaen A THAI TRADITION IS TO HAVE A call for the airline’s remaining Cessna Cara- Roi Et BUDDHIST MONK BLESS A NEW vans to be replaced with additional Saab 340s THAILAND AIRCRAFT BEFORE ITS FIRST in the not too distant future. FLIGHT Bangkok Nok Mini is a privately owned airline and operates as a code-share partner to Nok Air- NOK MINI ROUTES lines, Thailand’s leading low cost carrier.

Nok Mini CEO Dr. Jain Charnnarong notes, “we selected the Saab 340Bplus for its pas- senger appeal, low operating cost and low fuel Th e Royal Th ai Air Force also operates the consumption, and it will allow Nok Mini to Saab 340Bplus in AWACS and staff transport be successful in the very competitive aviation versions. market in Th ailand.”

MARKET REPORT | June 2011 11

SMR_May2011 cc.indd 11 5/31/11 5:04 PM MARKET REPORT EXEC DIRECT FILLS CARGO NICHE FROM JAMAICA HUB

A NEW JAMAICAN-BASED AIR With an Aviation Management customer support, and 15%-20% CARGO OPERATOR, EXEC degree from Florida Institute of more volume capacity than its DIRECT AVIATION SERVICES, Technology, he began his aviation primary competitor the Embraer WAS PREPARING TO LAUNCH career a dozen years ago. Clarke 120.” With the goal to establish ITS OPERATION AT PRESS tells Saab Market Report that when both scheduled and non-sched- TIME. BASED IN KINGSTON, he was a pilot fl ying Beech 1900s uled key regional air cargo markets THE STARTUP CARRIER WILL for TCI SkyKing, from the Kingston, Jamaica hub, BEGIN CARGO OPERATIONS he recognized an opportunity for Clarke recognizes that Amerijet, WITH SERVICE TO CURACAO. a regional cargo operator. In 2007, based in Miami with its larger FOUNDER AND PROGRAM he left the airline to pursue his Boeing 727s and 767s, is Exec MANAGER KAMAL CLARKE dream. Direct’s primary competitor. SAYS HE HAS FUTURE PLANS TO ADD FT. LAUDERDALE, With “Designed to Deliver” as the “We would love to see four to CAYMAN, HAITI, BAHAMAS, company motto, Clarke founded six Saabs in our fl eet in the near TURKS & CAICOS, DR AND Exec Direct Aviation and selected future,” Clarke shares. OTHER DESTINATIONS the Saab 340 as his aircraft of THROUGHOUT LATIN AMERICA. choice because “it has better

12 MARKET REPORT | June 2011

SMR_May2011 cc.indd 12 5/31/11 5:04 PM MARKET REPORT MAGAZINE WINGS NEIL/PACIFIC ROB PHOTO: VINCENT AVIATION UPGRADES FLEET WITH TWO SAAB 340Bs

Passionate about aircraft and with a background in both airline man- PALM TREE PARADISE: agement and fl ying, Peter Vincent established Vincent Aviation in New VINCENT AVIATION’S Zealand launching operations in 1992. With bases in Wellington, New HANGAR AT ITS DARWIN BASE Zealand and Darwin, Australia, his company has become well-known for its resource industry charters and Aircraft , Crew, Maintenance and Insur- ance (ACMI) operations. EAST TIMOR IS THE Vincent Aviation recently added two Saab 340Bs to its fl eet to replace Flying Services Vincent EASTERN PART OF THE smaller, 19-seat Beech 1900s with aircraft provided for ACMI operations Aviation offers: ISLAND OF TIMOR, WHICH to Timor Air, an operating unit of Vincent Aviation. Th e new national • Passenger Air Charter Services LIES BETWEEN THE SOUTH carrier for the Democratic Republic of Timor-Leste (East Timor) will • Scheduled Passenger Services CHINA SEA AND THE INDIAN provide connections to Darwin and Dili starting May 20, the Independ- • Dedicated Contracted Air OCEAN. IT IS AN ISLAND IN THE ence Day for Timor. Transport Capability INDONESIAN ARCHIPELAGO, • Medivac Air Capability LOCATED ABOUT 400 MILES Th e second Saab 340B will be deployed on mining charter contracts in • Priority VIP Aircraft Charter NORTHWEST OF AUSTRALIA Australia’s northern territories. • Specialized Freight Air Charter • Maritime and Terrestrial Rescue Th e aircraft are the fi rst to display Vincent Aviation’s distinct new livery e s Dili East Timor and Aerial Surveillance which will also be painted on the other 12 aircraft in the combined Aus- a Timor tralian and New Zealand fl eet in the near future. • Supply Dropping • Airline Training Services Darwin “Th e Saab 340B has allowed us to extend our network with the longest • Confi dential Air Support route now fl ying 3.5 hours,” says Vincent, adding “we have had a long, (Military/Police/Prisoner successful history as a specialist charter operator and the Saab 340B has Transfer) already proven to be a great performer on the challenging Australian • Aircraft Maintenance and Australia outback routes.” Aircraft Management

MARKET REPORT | June 2011 13

SMR_May2011 cc.indd 13 5/31/11 5:04 PM MARKET REPORT

SAAB DESTINATION BY PAUL BRYSON

Syracuse, New York - USA (IATA: SYR ICAO: KSYR)

In 1927, the Mayor and a former World War I fl yer, Charles Hanna, be- lieved that in order for the Syracuse, New York area to develop econom- ically, it would require aid from its own airport, one that did not exist yet. Th e land required for the airfi eld, soon to be known as Syracuse City Airport at Amboy, was quickly secured for $50,000. By 1928, the fi rst boost to the Syracuse area’s developing business environment came by the way of Ford Tri-motors and the US Airmail services.

The next few years brought many a spectator, as well as many avia- tion celebrities to the recently christened SYR. Among these names were Charles A. Lindbergh, Amelia Earhart and Wiley Post. Barn- storming and aviation shows were major events as well as significant sources of income.

As was common with most every business in the United States at the outbreak of WW II, things changed quickly at SYR. The field was transformed into a flight training center and a B-17/B-24 bomber base with many major improvements authorized, including five runways. At the end of WW II, the City of Syracuse took the facili- ties back and in 1949, SYR opened to the public. A few years later the field was given its current name in honor of the area’s Congress- man, Clarence E. Hancock. Today, the airport offers two asphalt runways one of which is 7500 ft/2290 m in length and the other at 9003 ft/2740 m.

Currently, Pinnacle Holding’s, Colgan Airways and Mesaba Airlines both offer scheduled service into SYR. Colgan flies the Saab 340Bs that average 19 flights weekly from SYR to Boston’s Logan Airport, and Mesaba enlists its Saab 340Bplus’ 26 times per week to New York’s La Guardia airport.

The Syracuse area is well-known for its heavy snowfalls, and the area receives about 115 in/290 cm of snow annually. Because an enormous amount of emphasis at SYR is placed on training and proper snow

removal equipment, the airport is rarely closed for more than a total of HOPSON

24 hours annually due to snowfalls. In fact, SYR is so serious about its JEFF

continual operations, that they house the world’s largest snowplow which is 32 ft /10 m wide. PHOTOS:

14 MARKET REPORT | June 2011

SMR_May2011 cc.indd 14 5/31/11 5:04 PM MARKET REPORT

SUPPORT CENTERS OFFER SAAB OPERATORS WORLDWIDE SERVICE

EUROPE ASIA-PACIFIC AREA Saab Support & Services Worland Aviation Linköping, Sweden Townville, Australia www.saabgroup.com www.worlandaviation.com.au

TAM STAECO Örebro, Sweden Jinan, Peoples Republic of China www.tam.se www.staeco.com

Aurigny Guernsey, Channel Islands www.aurigny.com

AMERICAS Embraer Aircraft Maintenance Services Nashville, TN www.embraer.com

C&L Bangor, ME www.claerospace.com

Discovery Air Quebec City, Canada www.discoveryair.com

Empire Aerospace Hayden, ID www.empireaerospace.com

Saab Support & Services Sterling, VA www.saabgroup.com

Worldwide Aircraft Services Springfield, MO

AFRICA ExecuJet Aviation Group Lanseria, South Africa www.execujet.net

MARKET REPORT | June 2011 15

SMR_May2011 cc.indd 15 5/31/11 5:04 PM MARKET REPORT SAAB SUPPLIER: GEVEN SEATS INTRODUCE NEW LEVEL OF COMFORT

GEVEN SEAT FEATURES

DESIGN • New, stylish appearance with groove shape • Increased passenger comfort by improved cushions foams and special backrest shape • Reduced weight • High-strength aluminum alloy primary structure • Structure and mechanisms validated by dynamic, static, cyclic and abuse testing One of the many positive results associated with the biennial Saab 340 • Reduced number of parts by Operators’ Conference is the interaction that Saab has with its worldwide using same elements in both operators. Customers use this forum to express concerns, comments and single and double seats even frustrations of either their single or multiple Saab 340 fl eet. • Simplifi ed design for easy maintenance and inspection During the 2008 conference, operators were keen on Saab identifying • Anti-corrosion surface cost-eff ective solutions that would improve ATA 25-20 reliability (Pas- treatment senger Compartment). At the time, it was determined that most dispatch • Avoidance of special tools for reliability reports were caused by passenger seats and overhead bin maintenance procedures component failure. Today, Saab is pleased to report an improving trend with ATA-25-28-00, stowage, while a stabilizing trend develops for the STANDARD FEATURES • Leather or fabric covers passenger seats. • Fire blocking polyurethane As a result of these meetings, Saab has together with Geven, an aircraft foams interior company, decided to look into the possibility to introduce new • Rear trays passengers seats for the Saab 340 and Saab 2000. Based in Naples, , • Injection molded arm caps Geven has been in the aviation industry for 30 years and uses their • Aisle bumper strips • Literature pockets knowledge, experience and cutting edge technology to maintain a high • Life vest pockets level of customer support and satisfaction. While the 2010 Saab 340 • Anti-rattle seat tracks fi ttings Operators’ Conference was in full swing, Geven and Saab unveiled a • Handicapped aisle armrest proposed design on new, modern seats.

Th ese possible enhancements to the Saab aircraft cabin boast very few OPTIONAL FEATURES • Vacuum formed polycarbonate parts, as compared to the current products available to the Saab 340 and back shroud Saab 2000, and would increase dispatch reliability and reduce direct • Mechanically controlled maintenance costs. Additionally, the seats are anticipated to be around recline 10-15% lighter than the typical seat found in the Saab family of tur- • Foldable central armrest boprops. Th is weight saving can quickly be translated into additional • Backrest featuring break-over payload and/or fuel which can increase revenues and enhance market • Retractable coat-hook catchment areas. Finally, an ancillary product of the redesigned seat • Cup-holder on backrest backs, includes extra legroom creating a new level of passenger comfort. • Handicapped aisle armrest • Antimacassar and Velcro strip For more information on these seats, please contact • A rear table with 2" slide In the US: • Seat belts George Caracost at [email protected] or +1 703 406 7304 • Life vest Rest of the world: • Ashtrays Per Skogsberg at [email protected] or +46 13 183928 Or email: [email protected]

16 MARKET REPORT | June 2011

SMR_May2011 cc.indd 16 5/31/11 5:04 PM MARKET REPORT

SAL ANNOUNCES MUCH IMPROVED ACTIVITY FOR 2010

Saab Aircraft Leasing (SAL) completed a total of 30 new aircraft transactions in 2010, nearly dou- ble the amount recorded in 2009.

In total, SAL recorded 30 transactions, including 10 sales, 18 leases (either new or extensions), and two third-party placements. Some 23 were Saab 340 transactions, which comprises the largest share of SAL’s portfolio. Th e Saab 340 transactions included 10 sales, two extensions and 11 new leases. Of the seven Saab 2000 transactions, SAL recorded six lease extensions as well as one new lease.

SAL completed the following transactions in 2010:

Eznis (Mongolia) purchased one Saab 340Bplus Eastern (Great Britain) extended leases on four Saab 2000s Golden Air (Sweden) leased an additional Saab 2000 (Great Britain) extended leases on two Saab 340Bs Nok Mini (Thailand) leased two Saab 340Bplus’ OLT (Germany) extended leases on two Saab 2000s PenAir (USA) purchased one Saab 340A for cargo conversion Pinnacle (USA) agreed to lease seven Saab 340Bplus for US Airways Express operations Regional Express (Australia) to purchase four Saab 340Bs and one Saab 340Bplus at lease termination SkyBahamas (Bahamas) purchased one Saab 340A Outside investor purchased two Saab 340Bs

In addition, SAL remarketed two Saab 340As on behalf of AeroCentury to SOL (Argentina)

“A developing trend continued in 2010 showing resurgence in the turboprop market as both regional and major airlines adjusted their fl eet planning,” notes Michael Magnusson, President and CEO, Saab Aircraft Leasing. He underlines, “as larger legacy airlines are withdrawing from many regional markets, this void can be aptly fi lled by many of our operators fl ying the Saab 340 today. For example, Pinnacle has leased seven Saab 340Bplus aircraft for its US Airways Express operation.”

Saab Aircraft Leasing manages a portfolio of 110 Saab 340 and Saab 2000 aircraft which are leased to 15 airlines around the world. With 25 employees, its head-offi ce is located outside of Washing- ton, DC with regional offi ces in Stockholm, Sweden, Tokyo, Japan and Nairobi, Kenya.

SOME OF SAL’S 2010 TRANSACTIONS INCLUDED: EZNIS OF MONGOLIA PURCHASING ONE SAAB 340Bplus BRINGING ITS TOTAL TO FOUR; SAAB 2000 ACTIVITY LAST YEAR INCLUDED LEASE EXTENSIONS FROM EUROPEAN OPERATORS: EASTERN AND OLT; AUSTRALIAN OPERATOR REGIONAL EXPRESS PURCHASED FOUR SAAB 340Bs AND ONE SAAB 340Bplus

MARKET REPORT | June 2011 17

SMR_May2011 cc.indd 17 5/31/11 5:04 PM MARKET REPORT

AERO INDIA 2011

SAAB ATTENDED THE EIGHTH EDITION OF THIS BIENNIAL EVENT FEBRUARY 9-13 IN BENGALURU, INDIA FEATURING DISPLAYS OF THE WORLD’S LEADING AEROSPACE COMPANIES. ALONGSIDE THE SAAB GRIPEN DISPLAY, THE SAAB 340 AND SAAB 2000 DEBUTED AT AERO INDIA. THE SAAB 2000 IS A CANDIDATE FOR THE INDIAN NAVY’S REQUEST FOR INFORMATION (RFI) FOR MEDIUM RANGE MARITIME RECONNAISSANCE (MRMR) AIRCRAFT. THE 30+ SEAT SAAB 340 WAS VIEWED BY THE INDIAN COAST GUARD IN ASSOCIATION WITH THE INDIAN COMPANY, PUNJ LLOYD

18 MARKET REPORT | June 2011

SMR_May2011 cc.indd 18 5/31/11 5:04 PM MARKET REPORT

SAAB 2000 OPERATORS TO MEET FOR 2011 CONFERENCE

June 7–9 Linköping, Sweden

Saab 2000 vendors, suppliers, associates DOT SECRETARY RAY LAHOOD (L) TALKS TO SAL PRESIDENT and operators will gather in the heart MICHAEL MAGNUSSON AT THE SAAB BOOTH DURING THE of Linköping for this biennial 2011 RAA ANNUAL CONVENTION IN NASHVILLE, TENNESSEE event with this year’s theme: safety.

Numerous workshops, presentations and team building events will take place throughout the week.

Contact the conference team at [email protected] and fi nd the latest conference updates at www.saabgroup.com.

MARK YOUR CALENDAR…

JUNE OCTOBER 7-9 SAAB 2000 OPERATORS’ CONFERENCE 10-12 NBAA CONVENTION Linköping, Sweden Las Vegas, Nevada 20-26 PARIS AIR SHOW NOVEMBER Le Bourget, France 13-15 ATAC GENERAL MEETING SEPTEMBER Montreal, Quebec 7-9 RAAA CONVENTION 13-17 DUBAI AIR SHOW Coolum, Queensland, Australia Dubai, UAE 28-30 ERA GENERAL ASSEMBLY Rome, Italy

MARKET REPORT | June 2011 19

SMR_May2011 cc.indd 19 5/31/11 5:04 PM MARKET REPORT

OPERATIONAL STATUS SAAB 340 402 operational aircraft 69 operators in 37 countries 14.13 million fl ight hours 15.77 million fl ights SAAB 340 SAAB 2000 SAAB 2000 58 operational aircraft SAAB 340 & 2000 14 operators in 10 countries 1.30 million fl ight hours 1.26 million fl ights

(as of March 2011)

Operator Country 340 2000 Operator Country 340 2000 Operator Country 340 2000 Americas Americas Europe & Africa

Aerolineas MAS Dominican Rep. 1 SOL Argentina 6 OLT Germany 1 3

Aerolineas Sosa Honduras 1 TAG Guatemala 1 Overland Airways Nigeria 1

Air Panama Panama 2 Transwest 2 Polet Airlines Russia 5 5

Air Sunshine USA 3 Vigo Jet Mexico 1 RAF-AVIA Latvia 2

Aloha Air Cargo USA 1 Western Air Bahamas 4 Robin Hood Aviation Austria 2

Bimini Island Air USA 2 Europe & Africa Ryjet Spain 1

Calm Air Canada 6 Airfast Congo 1 Saab Corporate Sweden 1 1

Calspan USA 1 Avion Express Lithuania 4 SkyTaxi Poland 2

Colgan Airways USA 33 Romania 10 Solinair 3

Connect Air Canada 1 Central Connect Airlines Czech Republic 9 South Airlines Ukraine 2

Delta Connection USA 19 Club Saab 340 Liechtenstein 1 SprintAir Poland 12

Exec Direct Jamaica 1 CTK Network Aviation Ghana 2 Swedish Air Force Sweden 5

Flight Works USA 1 6 Asia-Pacific

Hendrick Motorsports R USA 3 Direct Aero Services Romania 4 Air Rarotonga Cook Islands 1

IBC Airways USA 11 DOT Lithuania 2 Eznis Airways Mongolia 4

JMJ Flight Services USA 1 Eastern Airways Great Britain 8 Happy Air Travel Thailand 1

Joe Gibbs Racing USA 2 Estonian Air Regional Estonia 2 Hokkaido Air System Japan 3

Líneas Aéreas del Estado Argentina 4 Fleet Air 2 Japan Air Commuter Japan 11

Mesaba USA 7 Golden Air Sweden 4 9 Japan Civil Aviation Bureau Japan 2

Pacific Coastal Airlines Canada 6 Loganair Great Britain 16 Japan Coast Guard Japan 4

Pegasus Air Cayman Islands 1 Mali Air Express Mali 2 Nok Mini Thailand 2

PenAir USA 11 Moldavian Airlines Moldavian Rep 1 Pel-Air Australia 3

Provincial Airlines Canada 2 MRK Ukraine 2 Regional Express Australia 46

SST Aero Services USA 2 NextJet Sweden 13 Royal Thai Air Force Thailand 2

SkyBahamas Bahamas 3

Saab Aircraft Leasing Saab Aircraft Leasing Saab Aircraft Leasing Saab Support and Services Saab Support and Services 21300 Ridgetop Circle Torshamnsgatan 30C 4-7-13-305 Meguro 21300 Ridgetop Circle SE-581 88 Linköping Sterling, Virginia 20166 SE-164 40 Kista Meguro-ku, Tokyo Sterling, Virginia 20166 Sweden USA Sweden Japan 153-0063 USA Tel: +46 13 18 00 00 Tel: +1 703 406 7200 Tel: +46 8 463 1400 Tel: +81 3 3792 4300 Tel: +1 703 406 7200 Fax: +46 13 18 51 15 WWW.SAABGROUP.COM Fax: +1 703 406 7224 Fax: +81 3 3792 4315 Fax: +1 703 406 7222 WWW.SAABAIRCRAFTLEASING.COM

SMR_May2011 cc.indd 20 5/31/11 5:04 PM