MARKET REPORTIssue 25 September 2010

A PUBLICATION OF SAAB AIRCRAFT LEASING

CENTRAL CONNECT GROUP PROMOTES SAAB 340 FLYING IN THE

SWEDISH REGIONAL NEXTJET EXPANDS ITS SAAB 340 FLEET POLET JOINS THE SAAB 340 FAMILY

SMR_Sept2010_cc.indd 1 8/31/10 10:37 AM MESSAGE FROM CONTENTS Michael Magnusson OLT extends leases on two Saab 2000s ...... 3

Steel heart of the Republic Central Connect Group fl ies Saab 340s These days there is so much discussion, throughout the Czech Republic ...... 4-6 at least in the US, about the economy and if it is really recovering, or are we JOB AIR builds its maintenance presence...... 6 just seeing some short-term positive effects driven by government spending. Wish upon a star I don’t think that there should be any NextJet of Sweden uses an entrepreneurial spirit debate as to whether the business as its guiding star to expand its Saab 340 operation ...... 7-9 is recovering. A quick look at the traffi c numbers, as well as fi nancial results from Jesus Mary Joseph Flight Services takes to the sky ...... 10 last quarter, will clearly show that this Western Air expands its Bahamas network appears to be the case. with more Saab 340s ...... 11 We at Saab Aircraft Leasing (SAL) have recently seen quite an infl ux of inqui- Corporate style fl ying with Club Saab 340 ...... 11 ries for more aircraft. During the early SkyBahamas CEO wins Bahamas summer months it was very quiet, more Chamber of Commerce Industry Award ...... 12 than usual, but in the latter part of the summer, activity picked up considerably. Most are from existing customers looking Argentinean regional airline Sol Líneas Aéreas operates at expanding or swapping out older Saabs for newer models. We can now see that a six-strong Saab 340 fl eet ...... 13 the last quarter of this year will get very busy, which is good for us all. Many are also evaluating buying out their Saabs which shows the confi dence they have in the Polet Airlines adds fi ve Saab 340Bs ...... 13 type. Values of Saab aircraft are holding up, which is also true for other turboprop aircraft. The turboprops have weathered this latest economic storm much better Saab Destination: /Chertovitskoye ...... 14 than narrowbody and regional jets, not to mention corporate aircraft. Saab pilot training stretches across the globe ...... 15 So far this year we have concluded 14 aircraft transactions. Five of these are Saab 2000 extensions or new Saab 2000 leases with existing customers. At the time of Rex opens pilot academy ...... 16 this writing, there are no Saab 2000s available for sale or lease. The entire fl eet is PenAir founder takes the ride of his life ...... 16 active or in the pipeline destined to new customers. At SAL we will have a few com- ing off lease in the next six months. There are about 10 Saab 340As available in pas- Saab Profi le: Scott Grier, Loganair Chairman ...... 17 senger confi guration, and these are very good “entry level” 30-seat aircraft. Many of our successful customers began with Saab 340As, and we have placed four so GE CT7 powers the Saab 340 fl eet ...... 18 far this year. There are only six Saab 340Bs currently advertised, and we have found homes for fi ve to date. Finally we have a grouping of ex-Mesaba 340Bplus’ avail- Saab 340 operators to meet for 2010 conference ...... 19 able. These aircraft are perfect for the customers interested in acquiring a common spec fl eet of modern, relatively low-time aircraft complete with Active Noise Control Mark your calendar ...... 19 Systems in the cabin. These will defi nitely not sit around forever… Saab operators map...... 20 Since our last issue, we have seen a major new customer come into the Saab 340 family. Polet Airlines accepted its delivery of fi ve Saab 340Bs from American Eagle, and these became the fi rst Saab 340s in Russia. While Polet is a Saab 2000 operator, they have decided to extend their fl eet to 30-seaters. Being the fi rst Saab Cover photo: Dalibor Vlcek 340s in Russia, we now have Saab 340s fl ying in 34 countries on six of the seven captured this Saab 340B image continents. Antarctica can’t be too far behind… in Brno, Czech Republic. The Central Connect Airlines’ aircraft is operated on behalf of Czech As you read this latest issue of SMR, we are gearing up for the biennial Saab 340 Airlines. Operators Conference in Florida during the early part of October. If you have not arranged to attend just yet, please do so. It is a great event that will allow you to gain insight on the latest status of the Saab 340 fl eet as well as plans for the future. Market Report is published by The fact that so many vendors attend with senior people also adds value to the Saab Aircraft Leasing event. I and my colleagues at SAL, as well as Saab Support and Services look Editor: Kelly Murphy forward to seeing many of you in Clearwater, Florida. During the autumn, we will Emerald Media also be in attendance at ERA in Barcelona, as well as RAAA in Australia, and the US [email protected] Valuation Conference in Washington, D.C. Europe: Alison Chambers Emerald Media So let’s hope that the “winds of market improvements” will continue to fi ll our sails [email protected] for the rest of the year. Design and Layout: Aeris Graphic Design [email protected]

Printed in USA September 2010 ©2010 Saab Aircraft Michael Magnusson President and CEO, Saab Aircraft Leasing

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OLT EXTENDS LEASES ON TWO SAAB 2000s

Germany’s second oldest airline, OLT has two of the type which it invitation from Airbus Industries to regional carrier OLT (Ostfriesische maintains in-house at its Emden run shuttle fl ights on the manu- Luft transport GmbH) continues to and Bremen engineering facilities. facturer’s behalf between its UK show its longevity and growth with Recently, OLT extended leases on base at Bristol Filton Airport in the its combined Saab 340 and Saab two of its three Saab 2000s which southwest UK and its manufac- 2000 fl eet. First introducing the fi rst joined the fl eet in 2002 when turing facilities at Bremen, via Saab 340 to its operations in 1999, the company responded to an Hamburg.

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STEEL HEART OF THE REPUBLIC

CENTRAL CONNECT GROUP FLIES SAAB 340s THROUGHOUT THE CZECH REPUBLIC

STORY AND PHOTOS BY ERYL CRUMP

JOSEF HORÑÁK, CHAIRMAN- “Th e Saab 340 is a great plane. I of passengers or cargo. We have SUPERVISORY BOARD AND think it’s a little undeservedly certainly enjoyed our experience FOUNDER OF CENTRAL overshadowed by the boom of of operating and maintaining this CONNECT AIRLINES, IS A the (regional) jet which was type,” he shares with Saab Market GREAT FAN OF THE SAAB deployed on similar routes in Report. 340. HIS AIRLINE, BASED AT the early 1990s at the same time ˇ LEOŠ JANÁCEK AIRPORT, as the Saab was being produced. Th e airline, part of the Central OSTRAVA IN THE CZECH Today, it appears that due to its Connect Group, was founded in REPUBLIC, OPERATES SEVEN economy of operation and reli- December 2003. Central Connect OF THE TYPE ON REGIONAL ability it remains a very important Airlines operates scheduled PASSENGER AND FREIGHT machine in the fi eld of regional fl ights from Ostrava to Vienna. FLIGHTS. airlines whether in the transport Th e twice daily fl ights off er con- JOSEF HORÑÁK nections to Austrian Airlines’

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“The Saab 340 is a great plane. I think it’s a little undeservedly overshadowed by the boom of the (regional) jet which was deployed on similar routes in the early 1990s at the same time as the Saab was being produced…” — Josef Horñák Chairman-Supervisory Board and Founder Central Connect Airlines

network. A similar frequency is “Since the beginning of the opera- Earlier this year, the airline estab- operated to . Th ese fl ights tion, we have put an emphasis on lished Central Charter Airlines, are operated on behalf of Czech quality,” adds Horñák. “Nowadays another company within the Airlines, and one of the Saabs is there are lots of small operators, group to operate charter opera- painted in the fl ag carrier’s colors. who off er enough to solve the tions with two Boeing 737s. How- Flights to Brno, Czech Republic, problem of where and when the ever, Horñák believes the most Split and Zadar — both resorts in service. As for air operations, we signifi cant development of his — are also operated. concentrated on developing the company recently is the construc- Saab 340 aircraft operations. We tion of a new maintenance hangar Th e airline’s latest route is to operate two aircraft for passenger operated by JOB AIR-Central . One of its Saab 340s fl ights and the others for cargo European Aircraft Maintenance has been painted in a striking contracts.” (see sidebar on page 6). “Ostrava!!!” color scheme.

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JOB AIR builds its maintenance presence

“We used an existing project Since its establishment in 1993, JOB AIR has become one of Cen- investor in Iceland who tried tral Europe’s largest maintenance organizations. It was initially something similar about 10 years licensed to maintain and repair L-410 and Jetstream 31 aircraft , ago, but the project failed. How- however, the Saab 340 was added to its license within 18 months. ever, the plan was ready, includ- ing zoning and building permit, Additional approvals were granted, and in 2005 JOB AIR con- so we bought it and the hole in cluded an Approved Training Organization — EASA — Part 147, the ground and built the hangar. Agreement with Saab Aircraft AB. Watching it go up was amazing! Part of the Central Connect Group, the company opened a new Th e entire roof was assembled hangar two years ago at Leoš Janáček Airport in Ostrava capable of on the ground and then, using a accepting large aircraft for repairs and maintenance work. “Th ere computer-controlled hydraulic is great demand for services and repairs to civilian aircraft in the lift er, it was raised up. I admit I Central European region, and our customers include major Euro- didn’t have the nerve to watch, so pean airlines,” notes Horñák. I returned aft er it was completed,” laughs Horñák. Th e company invested 1.05bn Czech crowns (US $5.58m) in the center, which it plans to recoup within fi ve years. Th e project won For the future, Horñák is con- second prize in the prestigious Investor of the Year competition. sidering more regional routes as the Central European economy Th e single span, 11,680sq m/38,320 sq ft hangar can accommodate recovers, but there are no defi nite two widebody or up to six narrowbody aircraft at any one time. plans yet, he notes. Last year the company recruited suffi cient, qualifi ed staff to open the repair center hiring approximately 130 mechanics. Within the fi rst year of operations, the company plans to take on at least 100 more mechanics. Th e target staffi ng level is around 400 people.

Earlier this year, JOB AIR, along with its parent company, joined the European Regional Airlines Association (ERA).

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SMR_Sept2010_cc.indd 6 9/1/10 1:01 PM MARKET REPORT WISH UPON A STAR

NEXTJET OF SWEDEN USES AN ENTREPRENEURIAL SPIRIT AS ITS GUIDING STAR TO EXPAND ITS SAAB 340 OPERATION STORY AND PHOTOS BY ERYL CRUMP

SWEDISH REGIONAL AIRLINE In August, eight more Saab 340s operated by NextJet to a total to Trondheim in Norway and NEXTJET IS EXPANDING were added to NextJet’s fleet of 13.” started a service from Stock- RAPIDLY. SINCE ITS 2002 after agreements were concluded holm Bromma to London City LAUNCH, THE AIRLINE HAS with Air Åland, Gotlandsflyg, The new agreements call for airport,” notes Ivarsson. The FOCUSED PRIMARILY ON Kalmarflyg and Smålandsflyg. service from Stockholm-Arlanda latter service is being operated DOMESTIC ROUTES IN THE and Bromma to Visby (Gotlands- with two BAe RJ85 aircraft. NORTH OF SWEDEN. IN Chief Executive Officer Magnus fl yg), Mariehamn to Arlanda and ADDITION, NEXTJET HAS Ivarsson tells Saab Market (Air Åland) and from One of NextJet’s investors is MORE THAN DOUBLED ITS Report: “NextJet will be the Bromma to Kalmar (Kalmarfl yg) Björn Ulvaeus, a former member FLEET OF SAAB 340S, AND operator on their routes and and Småland (Smålandsfl yg) of pop group ABBA, however, LAUNCHED ITS FIRST SERVICE networks. We already operated from Bromma. the singer is not an active mem- OUTSIDE SCANDINAVIA TO five Saab 340s, but the new air- ber of the airline’s management. LONDON CITY. craft will bring the total number “We have also extended our Östersundflight from Bromma Ivarsson explains: “At present,

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SMR_Sept2010_cc.indd 7 9/1/10 1:01 PM MARKET REPORT “Our objective is to provide a competitive service where we are keenly conscious about the wishes of our passengers and partners.”

Magnus Ivarsson CEO NextJet

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we operate one regular inter- ary, and the schedule is integrat- ated by our regular network but national route as well as regular ed with SAS and other airlines also on charter services for the charter operations throughout operating from Copenhagen. Th e Swedish national cross-country Europe. Th e entrepreneurial service improvement coincided team. We do this in the capacity spirit is our guiding-star as we with the airline’s reservation of one of the team sponsors,” says pursue our journey to develop system being fully integrated Ivarsson. our products. We are constantly into global distribution service evaluating the market in order Amadeus. NextJet also operates several to fi nd new business concepts domestic routes subsidized by that fi t into our business model, “NextJet has long seen the poten- the Swedish government from ultimately making travelling tial in Östergötland and is now Stockholm-Arlanda Airport. more fl exible and effi cient for choosing to invest big, in order Th ese are mainly operated by 68- our passengers. Our objective is to meet market demand for more seat BAe ATPs. Th e airline also to provide a competitive service fl ights to Copenhagen,” says continues to operate two 19-seat where we are keenly conscious Ivarsson. NextJet’s new reserva- Beech 1900s and two executive about the wishes of our passen- tion system is fully integrated jet aircraft . gers and partners.” with Amadeus, meaning an increased presence of the agents Characterizing NextJet’s develop- and signifi cantly simplifying ment as “new generation way,” travel beyond Copenhagen with Ivarsson underlines that this such airlines SAS. thinking has quickly resulted in the acquisition of a considerable “We have for over a year worked share of the market. “We are to implement the new book- proud of our present position, ing system and are now ready. but we are continually striving to Th is will facilitate the booking improve and be at the forefront process for agents. Th is is also an with service for our passengers.” important condition which is the basis for our focus on increased Prior to the London service, traffi c,” explains Ivarsson. which began on August 16, the airline’s only other international Th e busy Saab 340s also fl y service was from Linköping, charter services with one of Sweden and Copenhagen, Den- the aircraft featuring a special mark. Frequency was increased Swedish ski team color scheme. to three times daily in late Febru- “Echo Papa is not only oper-

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JESUS MARY JOSEPH FLIGHT SERVICES TAKES TO THE SKY

Jesus Mary Joseph Flight Services, Oklahoma. Th e background of fl ights for the Navy Research Lab has enjoyed destinations ranging LLC (aka JMJ Flight Services) the fl ight team fi ts perfectly into for experimental Research and from the new Cowboy’s Stadium has taken the Saab 340A to new Bay Electric’s business needs to Development mission. To date, in Dallas, and the island of Ber- heights with a fi tting role at this operate on and around mainly US three multi-week mission sets muda, to the beautiful beaches of unique fl ight department. As military installations. have been completed leading to Montego Bay, Jamaica. one of only fi ve true corporate signifi cant test results with some confi gured Saab 340s, the aircraft Last year, the Saab became the minor modifi cations to the Saab’s “Th is Saab is the smartest, most is owned and operated by John F. fi rst general aviation aircraft , on “aerodynamic characteristics”. effi cient aircraft I have been a part Biagas, President and CEO of Bay multiple trips, to park/land at the Th e fl ights are very challenging of,” states JMJ Chief Pilot Erik Electric Company Inc., a large US Air Force’s outlying base in as the aircraft is being fl own in Doye. “For a company based on government general contractor. Curacao in the Southern Carib- confi gurations never seen by a the East Coast and mostly fl ying bean. Other military installations Saab before. to and from Lake Charles, LA While the Saab 340A calls Land- frequently visited by this Part – the ability to carry 19 people mark Aviation in Norfolk, VA, its 91 aircraft , include Fort Knox’s From research fl ights to is second to no other general home base, you will fi nd it mostly Goodman AAF, Fort Campbell, private destinations aviation aircraft ; especially con- operating out of Atlantic Aviation Fort Benning and Pease AFB. Th e During research fl ights, the Saab sidering we have an operating in Newport News, VA. Th e fl ight fl ight department logged a record 340A has fl own in restricted cost of less than $1,000 per fl ight department is a two-man op- year in 2009 with nearly 400 fl ight airspace around Dahlgren Missile hour. Saab 340A-050 should roll eration consisting of Chief Pilot/ hours with 2010 expected to be Range and Patuxent River Naval over 14,000 hours total time in Director-Operations Erik Doye just as busy. Air Station. Th e enormously suc- 2010/2011. Whether it is business, and Captain/Director of Main- cessful tests have produced results pleasure or the occasional test tenance/IA Mechanic Timothy An average, non-stop fl ight is which will lead to several large fl ight – Saab 340A-050 is versatile Miller. Th e two-pilot team has about 3 hours with destinations and exciting new missions in the and always gets the job done suc- over 38 years of combined mili- ranging from Quebec City, near future. It is not always busi- cessfully and with style. Its worth tary service. Canada, Bermuda, Curacao, ness fl ying, as this Saab has been to this company has been price- and a 5 hour 45 minute nonstop labeled as the “family station wag- less,” concludes Doye. Before linking up in the Saab, from San Angelo, TX to Newport on” fl ying many retreats for the Doye and Miller’s paths origi- News, VA. Th is past year, JMJ Young Presidents’ Organization nally crossed while fl ying the Flight Services teamed up with (YPO) local chapter in Southeast Boeing 707 in the same US Navy FGI Associates (and Miguel Virginia - where the owner now squadron out of Tinker AFB, Iturmendi) fl ying government test serves as a chairman. Th e aircraft

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WESTERN AIR EXPANDS ITS BAHAMAS NETWORK WITH MORE SAAB 340s

Western Air has recently grown its Saab 340 fl eet and operates fi ve Saab 340As and now three Saab 340Bs throughout . Th e 100 percent Bahamian owned company off ers service to Nassau, Freeport and the . Based at the San Andros Airport (MYAN), Western Air built a new hangar and passenger waiting facility to accommodate its expansion.

CORPORATE STYLE FLYING WITH CLUB SAAB 340

Europe has its fi rst corporate style Atlantic to its new base at Zurich, and a lavatory in the aft section. Saab 340 available for contract . or charter hire. Club Saab 340, Since early 2010, the aircraft has registered in Liechtenstein, ob- Configured with a corporate in- operated fl ights from the Swiss tained the aircraft from Napleton terior, the Club Saab 340 features airport to many airports in the Aviation Group last December 15 leather seats, a galley and lug- region. and fl ew the aircraft across the gage storage in the forward area

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SKYBAHAMAS CEO WINS BAHAMAS CHAMBER OF COMMERCE INDUSTRY AWARD

Th e Bahamas Chamber of Commerce (BCOC) recognized Randy Butler as 2010 Entrepreneur of the Year praising his contribution to the development of the aviation profession throughout the Bahamas. Captain Butler, CEO and President of Saab 340 operator SkyBahamas, became the fi rst Bahamian to be designated as a Pilot Examiner by the UK Airport Authority in 1996 and was the fi rst Manger of Public Safety at the Lynden Pindling International Airport. (See Saab Market Report story on page 15 of the October 2009 issue)

Flying four Saab 340s and one Beech 1900D, SkyBahamas operates daily fl ights from Nassau to inter-island destinations including , Bimini, Freeport, Grand Bahamas, Marsh Harbour, Abaco and Arthur’s Town and New Bight, Cat Island.

PICTURED LEFT TO RIGHT: PHILIP SIMON, BCOC EXECUTIVE DIRECTOR; DR. SOPHIA ROLLE, CHAMBER WEEK 2010 CHAIR; CAPTAIN RANDY BUTLER OF SKYBAHAMAS; AND KHAALIS ROLLE, BCOC PRESIDENT

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AFTER THEIR MOST RECENT TWO SAAB 340A DELIVERIES (MSN 012/025), SOL LÍNEAS AÉREAS HAD ALL OF THEIR SIX SAAB 340As GATHERED TOGETHER ALONG WITH THEIR CREWS ON A QUIET, WARM SATURDAY. THE ARGENTINEAN REGIONAL OPERATES ITS FLEET FROM ITS ROSARIO, ARGENTINA BASE, AND ITS HUB IN AEROPARQUE – BUENOS AIRES’ DOWNTOWN AIRPORT. SOL OPERATES OVER 40 DAILY FLIGHTS.

WELCOME TO THE SAAB 340 FAMILY! POLET AIRLINES ADDS FIVE SAAB 340Bs

Moscow-based Polet took delivery of five Saab 340Bs from American Eagle making it the first airline to operate the type in Russia. Polet says it has plans to acquire 15 of the 34-seaters. PHOTO: CHAD ROWE The turboprops were ferried to Polet’s Voronezh base in July/ August 2010. Polet plans to increase capacity on regional routes from the city, re-introduc- ing services to Kursk and Lipetsk and/or introducing new regional services in Siberia. The Russian regional carrier already operates a fleet of five Saab 2000s.

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SMR_Sept2010_cc.indd 13 8/31/10 10:40 AM MARKET REPORT PHOTO: SERGEY CHERNYSHOV SAAB DESTINATION

BY PAUL BRYSON

Voronezh/Chertovitskoye (IATA: VOZ/ICAO: UUOO)

The Russian Federation is surrounded by 37,000 km/23,000 mi of tourism companies. Last year, a three-month program improved coastline and includes 11 different time zones that stretch from runway surfaces, drainage systems, fencing and security roads. A new UTC+2 through UTC+12. Because of the vast distances found in terminal is also being considered that would allow the facilities to the Russian Federation, most travelers consider air travel an essential handle up to 2.5 million annual passengers, a major increase from its form of transportation. With 1,232 airports, Russia was ranked num- current capabilities of 300,000. ber 6 in the world in 2008 with 596 of those paved and 636 unpaved. This Saab Market Report Destination will focus on one of those paved The military also utilizes space at VOZ. The 455th Bomber Aviation airfields which is situated about 15 km/8 mi from the city center of Regiment is headquartered at VOZ and operates the Sukhoi-24 which Voronezh, Voronezh International Airport (VOZ). is being replaced by the Sukhoi-34. They share the field with the 5 ODRAO (5th Separate Long Range Reconnaissance Aviation Squad- Also known as Chertovitskoye Airport, VOZ’s existing airport ron) unit, who employ the Antonov-30, a type also flown by Polet. complex opened to the public in 1971 and is home base to Saab 340 and Saab 2000 operator, Polet Air Company. Polet, also a 51 percent The town of Voronezh is a city and administrative center of Voronezh stakeholder of VOZ, launched its Saab 2000 service in 2006, and the oblast (region) of Russia and is located on the banks of the Voronezh aircraft quickly became the core of its passenger operations. Dur- River about 470 km/292 mi from . Voronezh city is the cul- ing the 2009 third quarter, Polet scheduled 625 flights out of VOZ to tural, industrial and scientific center of the region. Its population in domestic and international destinations. International destinations 2008 was 840,000 people. include airports in , , the Czech Republic, Kazakhstan Just how big is the Russian Federation? The two most widely sepa- and a 1,985 km/1,230 mi flight to Munich, . VOZ also offers rated points are approximately 8,000 km/5,000 mi apart and occur airline service on the Armenian carrier Armavia. between its westernmost point, located on the northern boundary The runways at VOZ, which fully support instrument procedures with on a spit of land on the Baltic Sea and the southeastern with navigational aids on the field, are 2,300 m/7,546 ft in length. most point on the southern portion of the Kuril Islands (near Hok- Companies that make VOZ their base include private aircraft charter kaido Island, ). services, warehouse storage facilities, hotel/conference centers and PHOTO: FYODOR BORISOV

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SAAB PILOT TRAINING STRETCHES ACROSS THE GLOBE

Oxford Aviation Academy (OAA) • Computer IBM 6000 • Display configuration Wide 180x40 Stockholm, Sweden • Display configuration 4 Monitors (3 FOV Eva Steffner channels) • EFIS Collins Pro Line 4, AP, F/D - Sales Manager • TCAS, debriefing video equipment, Collins Pro Line 4 www.oaa.com wake turbulence, TAWS, FMS • FMS Collins FMS 4200 tel +46 (0) 70 997 4771 Universal UNS 1-K • TCAS, GPWS, Windshear, ACAS Fit level 7.0, HUD Flight Dynamics 2900, 1 Saab 340B simulator 1 Saab 2000 simulator WXRadar • Qualification / Certification level • Qualification / Certification level JAR EASA STD 1A level CG STD 1A DG • Manufactured by GML with Image • Manufactured by FSI with Image Generator SP1 - T Night/Dusk, Generator RSI Raster xT SAAB 340 SIMULATOR AT Texture • Motion 6 DOF Hydrostatic • Computer Concurrent 3200-2000 OXFORD • Motion 6 DOF Hydrostatic

Pan Am International Flight Academy Minneapolis, MN Gary Anderson - Sr. Director of Operations Greg Darrow (JAC) - Sr. Director of Sales Kagoshima, Japan www.panamacademy.com tel +81 (3) 3747 3454 tel +1 866 255 1890 1 Saab 340B simulator 1 Saab 340B simulator • Manufactured by CAE with • FAA level D SPX500/180 • Manufactured by CAE with MaxVue • Level JCAB PII • Windshear/circling approach • EFIS single/dual que

1 Saab 340A/B simulator • FAA level C/D • Manufactured by FSI with SPX200 • Windshear/circling approach • EFIS single/dual que

AMR Eagle Flight Academy Dallas/Ft. Worth tel +1 817 967 5691

1 Saab 340B simulator • FAA level D • Manufactured by CAE with SPX 200T/1W

FlightSafety International Houston, TX - Saab 2000 Program Manager Ansett Flight Simulation Center www.flightsafety.com Anthony Graham tel +1 772 564 7650 Melbourne, Australia tel +1 314 442 3300 - Center Manager Jennifer Sheridan tel +1 713 393 8100 1 Saab 2000 simulator - Customer Liaison Officer Saint Louis, MO • FAA level D www.ansettsimulators.com Peter Van Arsdale 1 Saab 340A/B simulator • Manufactured by FSI with Chroma tel +61 3 9373 8005 - Program Manager • FAA level D View +1 314 442-3300 • Manufactured by FSI with Vital VII • EICAS v6.0, FADEC v5.3, TCAS II 1 Saab 340A/B simulator • Dry lease only v7.0, Honeywell TAWS installed • Manufactured by FSI with Vital VIII 1 Saab 340A/B simulator • Not EASA approved, is Swedish CAA • Level 5 or FAA level D equivalent • FAA level D Vero Beach, FL (LFV) approved training device • Manufactured by FSI with Vital VII Terry Hibler • Joint Malmö Aviation - FSI EASA • Upgrading to a Vital VIII (higher res, - Director of Regional Airline Marketing approved training program available more detail, better signage) George Ebert • Dry lease available

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REX OPENS PILOT ACADEMY

Th e Australian Airline Pilot Acad- City Council install an Instrument designed to cater for the complete emy (AAPA), a wholly-owned sub- Landing System (ILS), technology academic and physical well-being sidiary of Regional Express (Rex), which will enable the city’s airport of the cadets. It boasts a swim- celebrated the offi cial opening of to remain open during adverse ming pool, gym and outdoor its brand new Wagga Wagga based weather conditions such as fog and sports facilities alongside modern campus on May 27, 2010. Aft er heavy rain. classrooms and well-equipped commencing operations in Man- individual bedrooms. galore, Victoria, Rex announced A growth spurt for Australia’s plans in April 2009 to construct a aviation industry Rex is Australia’s largest independ- pilot training academy at Wagga Together, AAPA and the ILS rep- ent regional airline operating a Wagga airport in New South Wales resent a major boost for regional fl eet of more than 40 Saab 340s to take advantage of the excellent aviation and continued growth on some 1,300 weekly fl ights to airport facilities, good fl ying con- of Australia’s aviation industry. 35 destinations throughout New ditions and close proximity to its Th e installation of ILS — a $1.63 South Wales, Victoria, Tasmania, heavy maintenance base. Th e $12 million project — will support 15 South Australia and Queensland. million state-of-the-art campus jobs, and the Academy is expected Th e Rex Group comprises Region- to create a further 75 ongoing jobs al Express, air freight and charter REX HOSTS AN was completed in about a year. OPENING DAY within the local community. operator Pel-Air Aviation and CELEBRATION OF THE On the day of the opening, it was Dubbo-based regional airline Air Th e Academy features complete AAPA’S WAGGA WAGGA announced that the Rudd Labor Link, as well as the pilot academy. and integrated facilities right at BASED CAMPUS Government will provide almost $1.1 million to assist Wagga Wagga the airport and a campus that is

PENAIR FOUNDER TAKES THE RIDE OF HIS LIFE

PENAIR’S ORIN AND Orin Seybert, the founder of of the fi rst sled to take off in him growing up in Pilot Point DANNY SEYBERT PenAir—Alaska’s largest regional Iditarod XXXVIII. Serving as the for nearly two decades. Tradition SHOW THEIR PROUD airline serving Southwestern 2010 Iditarod Honorary Musher, continues at PenAir as Orin’s son SPONSORSHIP OF THE Alaska, the Aleutians and Pribilof the 78-year-old retired CEO of Danny now runs the airline, and IDITAROD Islands—took the ride of his life PenAir has been transporting the Iditarod remains “the Last on March 6, 2010 in the basket sled dogs that meant so much to Great Race on Earth.”

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SAAB PROFILE:

BY ERYL CRUMP Scott Grier Loganair Chairman

Loganair Chairman Scott Grier has been involved with the airline, Eu- “It was like starting all over again. But I always knew I could win back rope’s largest operator of Saab 340s, for over 30 years. some — if not all — of the routes, we had lost,’’ says Grier. Th e upside was the company was so small at the time of the buy-out that he did not Th e airline started fl ying in 1962 as the air taxi service of Logan Con- need institutional support. He completed the deal with Stephen Bond of struction, and quickly entered Highland legend by operating in the spirit Bond Helicopters, who now owns 30 percent of the company to Grier’s of aviation pioneer Captain Ernest Edmund (Ted) Fresson, who took his 70 percent. It was crucial at the time of the buy-out that it held on to the fl ying circuses barnstorming around Scotland in the 1930s. existing BA franchises, now handed over to Flybe.

Grier, who grew up a short hop from Glasgow airport, initially wanted Of the airline’s 16 Saab 340s, 14 fl y under Flybe colors with tickets to be a schoolteacher but instead trained as an accountant. He came to booked via Flybe. However, British Airways still off ers tickets on its Loganair in 1975, although he admits to having “no great attraction to routes if they are combined with a British Airways’ fl ight. “It works well the fl ying business.” By that time, the company had fallen — almost by for both of us,” Grier tells Saab Market Report. “We are subsidized on default — into the ownership of the Royal Bank of Scotland prospering some routes, such as Tiree and Barra, and the Isles’ Councils support under the bank’s John Burke, who was himself an aviation enthusiast. inter-island services, but everything else is at our own commercial risk.” Loganair entered scheduled services on “social need’’ routes, which Brit- ish Airways was increasingly keen to off -load. However, in the late 1970s Loganair, which carries 500,000 passengers a year, has recorded a profi t the bank’s board questioned the ownership of an airline, and in 1983, sold in all but one year (2000-2001) since the management buy-out. the company to British Midland. Grier secured 25 percent of the equity, in addition to the fl eet, and the network grew. In 2010, Grier is keen to add more routes outside of Scotland and beef up its new freight business to bring more diversity to a business focused on Facing particular hostility when operations were moved to Manx Air- scheduled Highlands and Islands services. “It became clear to the board lines’ Isle of Man base, Grier was forced into substantial redundancies two or three years ago that while we are focused on the Highlands and at the airline. Watching these developments with growing dismay, Grier Islands we do need more than that. We expect, when we see things pick fi rst proff ered plans for a management buy-out in 1994. Twice rebuff ed, up, to do more scheduled services cross border.” In the current fi nancial he succeeded in 1997. But by then the airline was down to six aircraft year, Grier anticipates “modest passenger growth.” operating on a scatter of thin and unattractive routes.

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GE CT7 POWERS THE SAAB 340 FLEET

For over two decades, GE’s CT7 powerplant continues its reputation as a fuel effi cient, compact and lightweight turboprop engine for the Saab 340 series aircraft .

At cruise, the 30-seat Saab 340 burns approximately 100 US gallons per hour, a testament to the CT7’s effi ciency and the reason why Saab selected the engine during initial design.

Developed as a turboshaft engine, the CT7 was a derivative of the T700 for the Blackhawk, Sea Hawk, Apache, Super Cobra, EH-101 and S-92 helicopters. While the Saab 340 was GE’s fi rst application for the CT7, it was followed by CASA’s CN235 in 1984.

Since its mid-1970s market introduction, GE has shipped more than 12,000 CT7/T700 engines. Approximately 1,100 engines were manufactured for the Saab 340 program specifi cally.

Th e age distribution on the CT7-5A engines show that the majority of engines have accumulated between 22,000 and 32,000 hours with the CT7-9B recording between 11,000 and 24,000 hours.

Many improvements have been implemented over the years, and GE continues to closely monitor the reliability drivers for all CT7 turboprop engines. As issues are identifi ed, GE’s process develops economic and operational improvements as required.

Total fl eet statistics Highest Engines Highest cycle Hours time engine Shipped (cycles) (hours)

CT7-5A (Saab 340A) 410 10.8m 48,424 52,861

CT7-9B (Saab340B/Bplus) 705 16.8m 43,538 47,317

(GE provided data through May 2010)

GE offers ECMP for engine overhauls More than 95 percent of all CT7 engines are on GE’s Engine Care Maintenance Plan (ECMP). Th e plan covers overhauls of engines for a fi xed hourly rate. For additional charges, customers can secure coverage for line replacement unit (LRU) repairs and consumables replenishment, and gain access to spare engines. Th e program is successful and enables aircraft to move between customers with ease. ECMP also protects operators against any surprises. GE has approved two locations for CT7 overhauls, including Strother in the US and H&S in the UK.

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SAAB 340 OPERATORS TO MEET FOR 2010 CONFERENCE

October 4-7 Clearwater Beach, FL

Saab 340 vendors, suppliers, associates and operators come together for this excellent opportunity to share ideas and best practices. GE Commercial Engine and Dowty Propeller divisions will present information on the CT7 engine and propeller systems focusing on maintenance and operational information to provide maximum time on wing and reduction in the cost of ownership.

Numerous workshops, presentations and team building events will take place throughout the week. Contact the conference team at [email protected] or +1 703 406 7235 for more information.

MARK YOUR CALENDAR…

SEPTEMBER 15-17 RAAA Convention Queensland, Australia 22-24 ERA General Assembly Barcelona, Spain OCTOBER 4-7 Saab 340 Operators’ Conference Clearwater Beach, Florida 4-5 US Valuation Conference 2010 Washington, DC 19-21 NBAA Convention Atlanta, Georgia

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OPERATIONAL STATUS SAAB 340 408 operational aircraft 63 operators in 34 countries 13.87 million fl ight hours 15.47 million fl ights SAAB 340 SAAB 2000 SAAB 2000 58 operational aircraft SAAB 340 & 2000 12 operators in 10 countries 1.26 million fl ight hours 1.22 million fl ights

(as of June 2010)

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

Aerolineas Sosa Honduras 1 TAG Guatemala 1 NextJet Sweden 11

Air Panama Panama 2 Transwest Air Canada 2 OLT Germany 2 3

Air Sunshine USA 3 Vigo Jet Mexico 1 Overland Airways Nigeria 1

Bimini Island Air USA 3 Western Air Bahamas 8 Polet Airlines Russia 5 5

Calm Air Canada 6 RAF-AVIA 2

Calspan USA 1 Europe & Africa Robin Hood Aviation Austria 2

Caribair Dominican Rep. 2 Airfast Congo 1 Ryjet Spain 1

Colgan Airways USA 34 Avion Express 4 SkyTaxi Poland 2

Connect Air Canada 1 Avitrans Nordic Sweden 6 Solinair 3

Delta Connection USA 32 Carpatair Romania 10 South Airlines Ukraine 2

Flight Works USA 1 Central Connect Airlines Czech Republic 7 SprintAir Poland 12

Florida Coastal USA 3 Club Saab 340 Liechtenstein 1 Swedish Air Force Sweden 6

Hendrick Motorsports R USA 3 CTK Network Aviation Ghana 2 Asia-Pacific

IBC Airways USA 10 Darwin Airline Switzerland 6 Air Rarotonga Cook Islands 1

JMJ Flight Services USA 1 Direct Aero Services Romania 4 Eznis Airways Mongolia 4

Joe Gibbs Racing USA 2 DOT Lithuania 2 Happy Air Thailand 1

Líneas Aéreas del Estado Argentina 4 Eastern Airways Great Britain 8Hokkaido Air System Japan 3

Pacific Coastal Airlines Canada 6 Estonian Air Regional Estonia 2 Japan Air Commuter Japan 11

Pegasus Air Cayman Islands 1 Fleet Air 2 Japan Civil Aviation Bureau Japan 2

PenAir USA 12 Georgian Int’l Airlines Georgia 2 Japan Coast Guard Japan 4

Provincial Airlines Canada 2 Golden Air Sweden 3 8 Nok Mini Thailand 2

SST Aero Services USA 2 Loganair Great Britain 16 Pakistan Air Force Pakistan 3

Saint-Ex Mexico 2 Mali Air Express Mali 2 Pel-Air Australia 3

SkyBahamas Bahamas 4 Moldavian Airlines Moldavian Rep 2 Regional Express Australia 46

SOL Argentina 6 MRK Ukraine 2 Royal Thai Air Force Thailand 1

Saab Aircraft Leasing Saab Aircraft Leasing Saab Aircraft Leasing Saab Support and Services Saab Support and Services 21300 Ridgetop Circle Torshamnsgatan 32A 4-7-13-205 Meguro 21300 Ridgetop Circle SE-581 88 Linköping Sterling, Virginia 20166 SE-164 84 Stockholm, Meguro-ku, 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: +46 8 463 1409 Fax: +81 3 3792 4315 Fax: +1 703 406 7222 WWW.SAABAIRCRAFTLEASING.COM

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