May 2020

WestJet Saves 1,000 Pilot Jobs Through ALPA Agreements

Eirtech Aviation Services Expands Scope to Include Flight Test Approvals S7 Technics Launch Complex Aircraft Engine Redelivery Service MTU Maintenance and Aerologic Extend Exclusive GE90-110B Contract Contents

Deutsche Lufthansa AG Negotiates Stabilization Package For The Group 1

IATA: Airline Debt to Balloon by 28% -Heavy New Debt Levels Will Weigh Down.. 2

Boeing Resumes 737 MAX Production 4

Smartlynx Malta Receives Foreign Air Operator Certificate To Conduct Operations.. 5

Triumph Group Reports Progress On Structures Strategic Review 6

Air Serbia Announces Recommencement Of Flights From Niš And Kraljevo 8

MTU Maintenance and Aerologic Extend Exclusive GE90-110B Contract 9

Delta’s 777 Aircraft To Retire By End Of 2020, Simplifying Widebody Fleet Amid.. 10

SWISS To Add New Intercontinental Destinations To Its Cargo-Only Network 11

Qatar Airways and American Airlines Strategic Partnership Begins with Domestic U.S.. 12

Rolls-Royce Proposes Major Reorganisation To Address Medium-Term Impact.. 14

LOTAMS Continues Development Of An Aircraft Maintenance Base At Rzeszów.. 16

Spirit Airlines Announces Offerings Of Common Stock And Convertible Senior.. 18

Eirtech Aviation Services Expands Scope to Include Flight Test Approvals 19

S7 Technics Launch Complex Aircraft Engine Redelivery Service 20

Embraer Delivers Five Commercial and Nine Executive Jets in 1Q20 22

Airbus Orders & Deliveries - April 2020 23

Spirit Aerosystems Adjusts Employment To Align With Lower Market Demand 24

Strong Interest In Services For Temporary Operational Changes From Passenger.. 25

Emirates resumes passenger flights to 9 destinations, including connections.. 26

Boeing Statement on Bond Offering 28

Aerolineas Argentinas And Austral To Merge 29

WestJet Saves 1,000 Pilot Jobs Through ALPA Agreements 30

Aero Norway Invests In Five CFM56-3 Engines To Support Customers 32

Willis Lease Finance Corporation Reports First Quarter Pre-tax Profit of $8.5 million 34 Deutsche Lufthansa AG Negotiates Stabilization Package For The Group

Deutsche Lufthansa is negotiating a at the nominal value of the share, if necessary stabilization package for 9 billion euros with after a capital cut, to create a shareholding of up the Federal Economic Stabilization Fund to 25% plus one share. In addition, conditions in (Wirtschaftsstabilisierungsfonds - WSF) to finance accordance with the EU Temporary Framework the Lufthansa Group. The negotiations and the and WSF Act are provided, including the waiver process of political decision-making are still of future dividend payments. In addition, the WSF ongoing. The negotiations on financing measures is seeking representation within the Supervisory include a silent participation and a secured loan. Board. The Executive Board of Deutsche Lufthansa The conditions are currently being discussed. A AG is continuing negotiations with the aim of stake by the German government in the company’s ensuring the future viability of the company for share capital is also part of the negotiations. the benefit of its customers and employees. In this context, various alternatives of a capital increase are being discussed, including an increase

1 IATA: Airline Debt to Balloon by 28% -Heavy New Debt Levels Will Weigh Down Recovery

The International Air Transport Association (IATA) owed governments and private lenders will mean released an analysis showing that the airline that the crisis will last a lot longer than the time industry’s global debt could rise to $550 billion it takes for passenger demand to recover,” said by year-end. That’s a $120 billion increase over de Juniac. Regional variations The $123 billion in debt levels at the start of 2020. - $67 billion of government financial aid is equal to 14% of 2019’s the new debt is composed of government loans total airline revenues ($838 billion). The regional ($50 billion), deferred taxes ($5 billion), and loan variations of the aid dispersion indicate that guarantees ($12 billion). - $52 billion is from there are gaps that will need to be filled. There commercial sources including commercial loans are still large gaps in the financial aid needed ($23 billion), capital market debt ($18 billion), to help airlines survive the COVID-19 crisis. debt from new operating leases ($5 billion), and accessing existing credit facilities ($6 billion). Financial aid is a lifeline to get through the worst of the crisis without folding operations. But during the re-start period later this year, the industry’s debt load will be near $550 billion—a massive 28% increase Government aid is helping to keep the industry afloat. The next challenge will be preventing airlines from sinking under the burden of debt that the aid is creating,” said Alexandre de Juniac, IATA’s Director General and CEO. In total governments have committed to $123 billion in financial aid to airlines. Of this, $67 billion will need to be repaid. The balance largely consists of wage subsidies ($34.8 billion), equity financing ($11.5 billion), and tax relief/ subsidies ($9.7 billion). This is vital for airlines which will burn through an estimated $60 billion of cash in the second quarter of 2020 alone. Over half the relief provided by governments creates new liabilities. Less than 10% will add to airline equity. It changes the financial picture of the industry completely. Paying off the debt

2 The US government has led the way with its CARES financial aid to airlines now makes economic sense. Act being the main component of financial aid to It will ensure that they are ready to provide job- North American carriers which in total represented supporting connectivity as economies re-open,” a quarter of 2019 annual revenues for the region’s said de Juniac. The Impact of Debt The kind of aid airlines. This is followed by Europe with assistance provided will influence the speed and strength at 15% of 2019 annual revenues and Asia-Pacific of the recovery. IATA urged governments still at 10%. But in Africa, the Middle East and Latin contemplating financial relief to focus on measures America average aid is around 1% of 2019 that help airlines raise equity financing. “Many revenues. Many governments have stepped up airlines are still in desperate need of a financial with financial aid packages that provide a bridge lifeline. For those governments that have not yet over this most difficult situation, including cash to acted, the message is that helping airlines raise avoid bankruptcies. Where governments have not equity levels with a focus on grants and subsidies responded fast enough or with limited funds, we will place them in a stronger position for the have seen bankruptcies. Examples include Australia, recovery,” said de Juniac. A tough future is ahead of Italy, Thailand, Turkey, and the UK. Connectivity us. Containing COVID-19 and surviving the financial will be important to the recovery. Meaningful shock is just the first hurdle. Post-pandemic control measures will make operations more costly. Fixed costs will have to be spread over fewer travelers. And investments will be needed to meet our environmental targets. On top of all that, airlines will need to repay massively increased debts arising from the financial relief. After surviving the crisis, recovering to financial health will be the next challenge for many airlines,” said de Juniac. Last week, the IATA Board of Governors committed to five key principles for the industry re-start. Among these are commitments to the safety and security of staff and travelers, to meeting the industry’s environmental targets and to being a meaningful driver of the economic recovery with affordable connectivity.

3 Boeing Resumes 737 MAX Production

RENTON, Wash., May 27, 2020 – Boeing [NYSE: BA] temporary suspension of production that began has resumed production of the 737 MAX at the in January, mechanics and engineers collaborated company’s Renton, Washington factory. The 737 to refine and standardize work packages in each program began building airplanes at a low rate position of the factory. New kitting processes will as it implements more than a dozen initiatives also ensure that employees have everything they focused on enhancing workplace safety and need at their fingertips to build the airplane. “The product quality. “We’ve been on a continuous steps we’ve taken in the factory will help drive journey to evolve our production system and make our goal of 100 percent quality for our customers it even stronger,” said Walt Odisho, vice president while supporting our ongoing commitment and general manager of the 737 program. “These to workplace safety,” said Scott Stocker, vice initiatives are the next step in creating the optimal president of 737 Manufacturing. The 737 program build environment for the 737 MAX.” During the will gradually ramp up production this year.

4 Smartlynx Malta Receives Foreign Air Operator Certificate To Conduct Operations In Us Airspace

ACMI and charter provider, SmartLynx Malta, with GlobalX. The received certificate is a result received the Federal Aviation Administration (FAA) of our team’s effort which, despite the turmoil approval, enabling the airline to conduct passenger caused by the ongoing pandemic, stayed on the and cargo operations to, from, and transiting planned course of effective development strategy. the United States. The airline underwent several We would also like to express our gratitude to US months-long process of application, followed by authorities for making the process go seamlessly. inspections and checks to ensure full compliance Approval to operate in the US is increasing with US aviation regulatory bodies. SmartLynx our competitiveness and complementing our Airlines CEO, Mr. Zygimantas Surintas, comments expansion plans to new markets.” SmartLynx Malta on the latest accomplishment: “The received FAA was established in April 2019 and has already approval is a major milestone in our company’s obtained the Foreign Air Operator Certificate history. It was a crucial step enabling us to fully issued by the Canadian Ministry of Transport. follow through the recently signed agreement

5 Reports Progress On Aerospace Structures Strategic Review

Triumph Group, Inc. (NYSE: TGI) (“Triumph” or program. Triumph also resolved open commercial the “Company”) today provided an update on issues and secured price increases on work it its strategic review of its Aerospace Structures retains. The transaction is expected to close in subsidiary. In April 2019, Triumph announced early fiscal year 2021 and will help to reduce it was undertaking a comprehensive review the Company’s debt and inventory levels. of its structures business as it focuses on its • Secured purchase orders from Boeing core systems and product support markets and Commercial Airplanes across multiple programs capabilities. The Company has divested its 10 to maintain economical production levels build-to-print machine shops, five fabrication and provide support to its lower-tier supply shops, two metal finishing facilities, and its two chain. Triumph and Boeing also resolved million square foot Nashville large structures plant. open claims and deferred a majority of its Furthermore, the transition of the Bombardier advance repayments out of fiscal year 2021. Global 7500 wing program, G-650 wing box assembly operation, and Embraer E2 fuselage • Reached contract have all been completed to their new agreement with Israel owners. Earlier this year, Triumph completed Aviation Industries its final B747 fuselage panels in its Hawthorne to accelerate transfer California factory which is planned to be closed of the G280 wing later this calendar year. The transition of its B767 program to IAI and structural assembly work out of its Grand Prairie Korean Aerospace Texas plant is nearing completion in anticipation Industries by of concluding all production activities in early July 2020. Only calendar year 2021. Over 1,000,000 annual hours two completed of structures work has been outsourced as part of wings remain to the Company’s actions to improve its profitability be delivered from and cash flow. In recent weeks, the Company Triumph’s Tulsa also entered into the following agreements plant which will further reduce debt and move the after which it will company towards its future state as a leading be closed. All provider of systems and aftermarket services: design support and scheduled warranty • Reached agreement in principle to sell obligations will be its G650/G700 wing business to Gulfstream transferred to IAI. which will conclude its obligations on the

6 Taken together, the Company’s comprehensive de- nacelle components were received over the last risking actions will reduce the number of Aerospace two years from defense and commercial customers Structures sites from 34 to 9, reduce occupied with life of contract value of over $1 billion. space by 4.4 million square feet, and reduce Daniel J. Crowley, President and CEO of Triumph staffing levels by over 4,000 employees. Structures Group, stated, “Our Aerospace Structures team has related revenue declined by $600 million, from executed with discipline, stabilizing the business $2,200 million in fiscal year 2019 to $1,600 million while delivering on customer commitments, and in fiscal year 2020, while improving Company exiting loss-making and non-strategic programs. EBITDAP margins by 3%. Its Aerospace Structures Their demonstrated ability to divest non-core subsidiary also improved from significant cash use operations while developing next-generation over the same period to generating positive cash composites and thermoplastic process capabilities from operations. As part of its strategic review, reflects Triumph’s value-creation drive. Despite the Company is advancing the sale of additional recent market headwinds, we have been able to non-core Structures sites through investment reposition programs and factories with strategic banker Lazard in the calendar year 2020 timeframe. buyers who are committed to the structures market These transactions will be announced as they and want to invest in these businesses for the occur. Aerospace Structures, while down-sizing, benefit of all stakeholders. We look forward to continues to win new business to enhance its value. completing our review in calendar year 2020.” New awards for composite parts including engine

7 Air Serbia Announces Recommencement Of Flights From Niš And Kraljevo

After receiving approval from the Ministry of from Niš and Kraljevo. This is great news for our Construction, Transport and Infrastructure, Air passengers from south and south-western Serbia, Serbia, the national airline of the Republic of who have eagerly awaited this development. Serbia, will again be operating flights from Niš and During the past two and a half months, we have Kraljevo. Air Serbia will recommence operations been inundated with questions about when we from Niš again starting from 16 June, and aircraft will be restart flights from these two cities. For of the Serbian national airline would start taking all of us at Air Serbia, it is a great pleasure that off from Kraljevo again on 30 June 2020. In the I can confirm that we recommence flying on period between 16 and 30 June, flights from the 16th of June from Niš and the 30th of June Niš to Frankfurt (Hahn) and Nuremburg will be from Kraljevo. Families and friends will be able re-introduced, while after 1 July, it will also be to see each other again, and they will certainly possible to fly to Hannover, Salzburg and Tivat. be followed by business people and tourists,” As for Kraljevo, it is planned to re-launch the said Duncan Naysmith, Air Serbia CEO. He added flights to Vienna as of 30 June. The exact flight that the recommencement of flights to other schedule and weekly frequency will be announced destinations from Niš and Kraljevo will be worked on airserbia.com shortly. “Conditions have been on in the coming period, with careful monitoring met for the gradual recommencement of flights of the situation and consideration of all factors.

8 MTU Maintenance And Aerologic Extend Exclusive GE90-110B Contract

Hannover, 14 May, 2020 – MTU Maintenance, the Michael Schreyögg, Chief Program Officer, MTU global leader in customized solutions for aero Aero Engines. “We specialize in engine solutions engines, and its valued, long-term customer across the lifecycle and look forward to supporting Aerologic GmbH have renewed their exclusive Aerologic’s GE90 fleet with our excellent technical GE90-110B contract by a further twelve years. The expertise. MTU is the leader in tailoring services contract encompasses multiple aspects of MTU to each and every engine in the fleet, proactively Maintenance’s PERFORMPlus offering, including maximizing engine usage and significantly engine trend monitoring, fleet management and reducing cost for its customers.” MTU Maintenance on-site support as well as spare engine provision. has completed over 20,000 shop visits in 40 years Aerologic is a 50/50 joint venture between DHL and currently has 30 engine models in its portfolio Express and Lufthansa Cargo based at Leipzig/Halle – including the GE90-110 /115B. It performs over Airport in Germany. The cargo expert boasts the 1,000 shop visits per year at its worldwide locations. most modern freighter fleet in Europe, made up GE90 shop visits are performed in Hannover, of solely Boeing 777F aircraft capable of carrying Germany, where MTU’s team specializes in flexible full cargo loads of over 100 tonnes to a range of and customized workscoping for these engines – around 9,000 kilometres. “We are delighted to have having completed over 100 shop visits to date. renewed our GE90 agreement with Aerologic,” says

9 Delta’s 777 Aircraft To Retire By End Of 2020, Simplifying Widebody Fleet Amid COVID-19

Delta plans to retire its 18 widebody Boeing 777s first entered the fleet in 1999 and grew to 18 by the end of 2020 as a result of the COVID-19 aircraft, including 10 of the long-range 777-200LR pandemic. The retirement will accelerate the variant, which arrived in 2008. At the time, aircraft airline’s strategy to simplify and modernize its was uniquely positioned to fly non-stop between fleet, while continuing to operate newer, more Atlanta and Johannesburg, South Africa, Los cost-efficient aircraft. “We’re making strategic, Angeles to Sydney and other distant destinations. cost-effective changes to our fleet to respond Delta will continue flying its fleet of long-haul next to the impact of the COVID-19 pandemic while generation A350-900s, which burn 21% also ensuring Delta is well-positioned for the less fuel per seat than the 777s they will replace. recovery on the backside of the crisis,” said Gil Despite a reduction in international passenger West, Delta’s Chief Operating Officer. “The 777 travel, the 777 fleet has been the workhorse of has been a reliable part of Delta’s success since it Delta’s cargo, mail and U.S. citizen repatriation joined the fleet in 1999 and because of its unique operations amid the pandemic. Since late April, operating characteristics, opened new non-stop, the widebody jet has flown dozens of trips from ultra-long-haul markets that only it could fly at Chicago and Los Angeles to Frankfurt to deliver that time.” Last month, Delta announced plans to mail to U.S. military troops abroad; operated accelerate the retirement of the MD-88 and MD- between the U.S. and Asia to deliver thousands 90 fleets to June. Since the onset of the COVID-19 of pounds of critical, life-saving supplies to aid in situation, Delta has reacted quickly by parking the COVID-19 response; and carried thousands of aircraft and considering early aircraft retirements U.S. citizens back to the U.S. from Sydney, Mumbai, to reduce operational complexity and cost. To date, Manila and other cities around the world. More the airline has parked more than 650 mainline specific details of the timing of the 777’s exit and regional aircraft to adjust capacity to match from the fleet will be disclosed at a later date. reduced customer demand. The Boeing 777-200

10 SWISS To Add New Intercontinental Destinations To Its Cargo-Only Network

Since the end of March, SWISS and its Swiss SWISS) and Mumbai (thrice weekly). At the end WorldCargo division have operated more than 200 of June, another 160 cargo flights are expected cargo-only flights, transporting over 4,000 tonnes to be carried out on behalf of various private of cargo between Asia and Switzerland. Most of companies and public institutions. These will the goods transported included medicines and include the first-ever services to destinations such medical supplies to support Switzerland and its as Toronto and Shenzhen. The first of four such population. By including further intercontinental flights from Zurich to Toronto was conducted on destinations to the SWISS route network, the 12 May, and ten cargo-only flights will be operated company’s airfreight division, Swiss WorldCargo, to Shenzhen from 22 May onwards. All these can expand its services and, as of 15 May, will services will be performed with Boeing 777-300ER also offer frequent flights to Hong Kong (twice aircraft. In addition, preparatory work is underway weekly), New York JFK (four times weekly) for the conversion of 4 Boeing 777-300ER. The Johannesburg (weekly, performed initially by Economy Class seats would be removed in order Edelweiss as cargo-only flight and from June by to increase the cargo volume on the aircraft.

11 Qatar Airways And American Airlines Strategic Partnership Begins With Domestic U.S. Codeshare

Qatar, Doha – Qatar Airways is pleased to announce to government approvals. Qatar Airways Chief that the first stage of the strategic partnership Commercial Officer, Mr. Simon Talling-Smith said: with American Airlines has begun with Qatar “This codeshare is just the first step in renewing Airways placing its code on American Airlines’ our long-term strategic partnership with American domestic flights, strengthening connectivity Airlines. The rollout of this domestic codeshare and creating hundreds of new travel options demonstrates our airlines are confident about the for passengers. The codeshare will be rolled out future and during this difficult time we continue in phases over the next few weeks and once to focus on how we can enhance the customer completed, will see Qatar Airways’ code placed on experience for our millions of passengers. As two over 1000 of American Airlines’ domestic flights of the strongest airlines in the world, I have no connecting with Qatar Airway’s 10 U.S. gateways. doubt that we will overcome the current challenge Flights are already available for sale, with the and be well positioned to continue providing our first codeshare flights having started recently on passengers the reliable, safe and award-winning 17 May 2020. The first phases of the codeshare service that they have come to trust from us.” will see Qatar Airways’ passengers able to book American Airlines Senior Vice President of Network travel on American Airlines’ extensive domestic Strategy, Vasu Raja said: “We are pleased that connections via Chicago (ORD) and Dallas (DFW) we’ve reached this important milestone with Qatar to 200 cities including Miami (MIA), Houston (IAH), Airways. We look forward to welcoming Qatar Atlanta (ATL), Detroit (DTW), Minneapolis/St.Paul Airways passengers throughout our domestic (MSP), Seattle (SEA), and San Francisco (SFO). network as we continue to focus on the wellbeing Additional cities, including destinations in Central of our customers, team members and the America, and the Caribbean will be added, subject communities we serve during this uncertain time.

12 This is just the beginning of a strong partnership widespread praise and thanks from passengers and and we have a very bright future ahead of us.” governments worldwide, as the foremost airline Further expansion of the strategic partnership* taking people home. The airline’s cargo division will include Qatar Airways placing its code on continues to operate a significant schedule with American’s international flights to North, Central almost 175 flights per day. The cargo operator and South America and Europe, and American has worked closely with governments and NGOs Airlines placing its code on Qatar Airways flights to transport over 175,000 tonnes of medical and between the U.S. and Qatar and beyond to a range aid supplies to impacted regions around the of destinations in the Middle-East, Africa and world on both scheduled and charter services, the Asia. Both airlines will also continue exploring the equivalent of roughly 1,750 fully loaded Boeing opportunity for American Airlines to operate flights 777 freighters. A multiple award-winning airline, between the U.S. and Qatar, along with a number Qatar Airways was named ‘World’s Best Airline’ of joint commercial and operational initiatives to by the 2019 World Airline Awards, managed by further strengthen this renewed partnership. Qatar the international air transport rating organisation Airways continues to operate approximately 150 Skytrax. It was also named ‘Best Airline in the scheduled flights per week to over 30 destinations. Middle East’, ‘World’s Best Business Class’, and The airline recently announced plans to gradually ‘Best Business Class Seat’, in recognition of its rebuild its network in line with passenger demand ground-breaking Business Class experience, Qsuite. evolution and the expected relaxation of entry It is the only airline to have been awarded the restrictions around the world. By the end of June coveted “Skytrax Airline of the Year” title, which the airline plans to expand its network to 80* is recognised as the pinnacle of excellence in the destinations. The national carrier of the State airline industry, five times. Hamad International of Qatar has built a strong level of trust with Airport (HIA), the airline’s home and hub, was passengers, governments, trade and airports as recently ranked “Third Best Airport in the World”, a reliable partner during this crisis. With its plans among 550 airports worldwide, by the SKYTRAX for expanding its network and strengthening World Airport Awards 2020. Rising from fourth airline partnerships, the airline is well positioned position in 2019 to third in 2020, HIA has been to continue delivering on its mission to the airline steadily rising in the ‘World’s Best Airports’ rankings travellers can trust. By maintaining 24/7 operations since the start of its operations in 2014. In addition, in recent months, including the provision of over HIA was voted the ‘Best Airport in the Middle East’ 200 charter flights globally, Qatar Airways’ efforts for the sixth year in a row and ‘Best Staff Service to repatriate over one million people has received in the Middle East’ for the fifth year in a row.

13 Rolls-Royce Proposes Major Reorganisation To Address Medium-Term Impact Of Covid-19

The impact of COVID-19 on Rolls-Royce and the reorganisation of our business to adapt to the new whole of the aviation industry is unprecedented. level of demand we are seeing from customers. As We have already taken action to strengthen the a result, we expect the loss of at least 9,000 roles financial resilience of our business and reduce from our global workforce of 52,000. In addition our cash expenditure in 2020. It is, however, to the savings generated from this headcount increasingly clear that activity in the commercial reduction, we will also cut expenditure across plant aerospace market will take several years to return and property, capital and other indirect cost areas. to the levels seen just a few months ago. We must now address these medium-term structural changes, as demand from customers reduces significantly for our civil aerospace engines and aftermarket services. Warren East, Rolls-Royce, CEO said: “This is not a crisis of our making. But it is the crisis that we face and we must deal with it. Our airline customers and airframe partners are having to adapt and so must we. Being told that there is no longer a job for you is a terrible prospect and it is especially hard when all of us take so much pride in working for Rolls-Royce. But we must take difficult decisions to see our business through these unprecedented times. Governments across the world are doing what they can to assist businesses in the short-term, but we must respond to market conditions for the medium-term until the world of aviation is flying again at scale, and governments cannot replace sustainable customer demand that is simply not there. We have to do this right, which means we will work closely with our employee and trade union representatives as appropriate, look at any viable alternatives to mitigate the impact, consult with everyone affected and treat our people with dignity and respect.” We are proposing a major

14 The proposed reorganisation is expected to to deal with the current situation. Our Defence generate annualised savings of more than £1.3bn, business, based in the UK and US, has been of which we expect headcount to contribute robust during the pandemic, with an unchanged around £700m. The cash restructuring costs related outlook, and does not need to reduce headcount. to these actions are likely to be around £800m, As part of the reorganisation, we will ensure with outflows incurred across 2020 to 2022. The that our internal Civil Aerospace supply chain proposed reorganisation will predominantly continues to support our defence programmes affect our Civil Aerospace business, where we and explore any opportunities to move people will carry out a detailed review of our facility into our Defence business. Due to the need to footprint. It will also have implications for our consult with the appropriate employee and trade central support functions. Our Power Systems union representatives, we are not providing business and ITP Aero are currently developing, further details of the impact of the proposed negotiating and executing extensive measures reorganisation on specific sites, or countries, at this stage. The restructuring announced on 14 June 2018 will transition into this wider proposed reorganisation. Focused predominantly on reducing the complexity of our support and management functions, the programme has substantially delivered on its objectives. Warren East added: “The strategic choices that we have made over the last few years have helped us to respond rapidly to COVID-19 and the synergies between our divisions leave us well placed to capitalise on the long-term potential of our markets. The world on the other side of this pandemic will need the power that we generate to fuel economic recovery. I absolutely believe the call for that power to be more sustainable will be stronger than ever. This plays to our strengths. We must ensure that we are able to continue to innovate and play our leading role in enabling the vital sectors in which we operate achieve net zero carbon emissions. We have emerged from troubled times before, to achieve incredible things. We will do so again.”

15 LOTAMS Continues Development Of An Aircraft Maintenance Base At Rzeszów-Jasionka Airport

LOT Aircraft Maintenance Services (LOTAMS) is the implementation of the LOTAMS base project in continuing works related to the construction of Jasionka. Forecasts determining the time of return a modern service base - hangars for narrow and of aviation to the state before the epidemic are wide-body aircraft at the Rzeszów-Jasionka Airport. not certain due to the lack of sufficient data on Information about the start of the investment the virus itself, needed for econometric models. process was officially disclosed in October 2019 Finding effective treatments or inventing a vaccine during Congress 590 by Aleksandra Juda - President will be most important for the economy to recover, of the Board of LOTAMS. Dynamic growth in the bringing among others increase in air connections. aviation industry and huge demand for MRO Unfortunately, we will feel negative effects in the services (maintenance, repair and overhaul) were near future. That is why we make optimal decisions forecast then. Although the current situation in a broader economic aspect. The economy is caused by the coronavirus epidemic changes these developing in the cycles of prosperity and crisis. forecasts, the LOTAMS investment is included in An outbreak of coronavirus will cause economic the Company’s long-term development strategy slowdown, and is being continued. The investment of LOTAMS possibly and Polish Aviation Group will be one of the most leading to significant in the aviation industry in Europe - recession confirms Aleksandra Juda, President of the Board of for a short LOTAMS. Aviation was grounded literally overnight. period. Restrictions aimed at minimizing the number of In such a cases of COVID-19 result in a decrease in demand situation, for air transport services. This will translate into development the financial situation not only of the airlines of activities themselves, but also of companies such as LOTAMS. stimulating Changes in the aviation market are inevitable. The the economy Rzeszów Airport not only wants to rebuild its pre- is priority. pandemic position in terms of passenger traffic, The but also continues to diversify the Company’s investment revenue sources - said Adam Hamryszczak, in Rzeszów president of Rzeszów-Jasionka Airport. Everything is the best points to the fact that only the strongest players example will survive on the aircraft maintenance market, of this. which is why we are pleased with the progress in

16 We cannot stop it, because it would mean giving the Polish economy. Ultimately, we will employ up counteracting the negative effects of recourse 1,500 employees in Rzeszów within a decade. in the aviation industry and the loss of funds Our project will be a priority development factor invested - adds Aleksandra Juda. Grounding and will contribute to increasing the investment air communication will have serious economic potential of the Podkarpackie region - Marcin consequences not only for operators but also for Kwietniak, Director of the LOTAMS Sales and other branches of aviation: handling operators, Marketing Office. At the beginning of April 2020, OEM suppliers and MRO service providers to which LOTAMS selected a Contract Engineer and signed LOTAMS belongs. With this in mind, proactive a contract with SAFEGE S.A.S., which provides its management models should be developed by the clients with services in the field of design and companies for the period of economic stagnation investor supervision as well as their investment and for the time of re-development. Hence, it will management. The Contract Engineer has started be necessary to introduce optimization processes the process of obtaining consent for environmental and savings, and on the other hand to maintain conditions for the implementation of the project staff and service capabilities - investment in and initiates subsequent stages of the investment Rzeszów is precisely the possibility of operating process. The first stage of building the aircraft at the time of recovery from the crisis. LOTAMS maintenance base is at an advanced stage. The belongs to the leaders of the MRO industry. It Company received support, not being public aid is a brand that is valued and known globally, as from the ERF (Enterprise Restructuring Fund), for evidenced by numerous inquiries the implementation of the investment. Last year, a coming to us from around the preliminary contract was signed for the purchase world. And I’m not just talking of real estate from the manager of the Rzeszów- about the period before the Jasionka Airport (EPRZ). The functional concept outbreak. Even now, we are of the database has already been developed receiving inquiries for servicing (authors are Alton Aviation Consultancy and wide-body passenger aircraft Ghafari Associates). On April 15, 2020, the Civil in 2021-2022. Airlines, when Aviation Authority issued a decision authorizing resuming their operations, won’t major operational and technical changes in do it immediately in 100%. They the features of the Rzeszów Jasionka Airport will strategically select their (EPRZ), consisting of changing the airport border, fleet by selecting aircraft that location of the airport fence, border of the will be less costly to maintain. airport aviation part and patrol route. This is in These will be newer generation line with the assumptions of the project and the machines with less maintenance preliminary purchase agreement for the property, requirements, but still requiring concluded between the managing body of the it. The investment in Rzeszów is Rzeszów-Jasionka Airport, LOTAMS and Polish a tailor-made product adapted Aviation Group. This year in May the purchasing to support modern aircraft procedure has been started the selection of models. Most importantly it the designer - the works are very advanced. is a strategic investment for

17 Spirit Airlines Announces Offerings Of Common Stock And Convertible Senior Notes Due 2025

Spirit Airlines, Inc. (NYSE: SAVE)(“Spirit”) ”) today nor the Convertible Notes Offering is conditioned announced that it has commenced an underwritten upon the closing of the other offering. Citigroup, public offering of 12,000,000 shares of its common Morgan Stanley and Barclays are acting as joint stock (the “Common Stock Offering”) and an book-running managers and representatives of underwritten public offering of $150,000,000 the underwriters for the Common Stock Offering aggregate principal amount of convertible senior and the Convertible Notes Offering. Deutsche notes due 2025 (the “Convertible Notes” and Bank Securities is also acting as a joint book- such offering, the “Convertible Notes Offering”). running manager for the offerings. We have filed Spirit intends to grant the underwriters a 30-day a registration statement (including a prospectus) option to purchase up to 1,800,000 additional and preliminary prospectus supplements with the shares of common stock in the Common Stock SEC for the offerings to which this communication Offering and a 30-day option to purchase up relates. Before you invest, you should read the to $22,500,000 aggregate principal amount of applicable preliminary prospectus supplement additional Convertible Notes, solely to cover over- and the prospectus in that registration statement allotments, in the Convertible Notes Offering. and other documents we have filed with the SEC Spirit expects to use the net proceeds from the for more complete information about us and these Common Stock Offering and the Convertible offerings. You may get these documents free by Notes Offering for general corporate purposes. visiting EDGAR on the SEC website at www.sec.gov. The closing of neither the Common Stock Offering

18 Eirtech Aviation Services Expands Scope to Include Flight Test Approvals

Eirtech are pleased to announce that EASA has some cases it is needed to support a specific approved an expansion in capabilities to permit the customer requested modification to the aircraft. approval of flight tests. Flight tests are sometimes This new privilege will allow Eirtech to define required by EASA and the FAA for demonstration the requirements and perform all the necessary of compliance for testing to support aircraft modifications. the more significant When requested, modifications Eirtech can now being requested provide a turn- by our customers. key solution for Having this internal customers which capability allows would include; Eirtech to control developing a flight the test programme test plan, approving without the test conditions, involvement of taking part in the test another approved flight and ultimately test house, and hence approving the performance of the modification. control the costs and timings of any tests” For Director of Engineering, Mr Keith McKerchar more information please contact [email protected] said “While flight testing can be expensive, in

19 S7 Technics Launch Complex Aircraft Engine Redelivery Service

S7 Technics specialists perform redelivery of term conservation, for the purpose of further CFM56-3/-5B/-7B leasing engines and ensure storage. Kirill Khilevich, sales Director of S7 their proper storage. In the current situation with Technics aircraft engine repair services, thinks the worldwide spread of the virus, passenger that this service has quite high demand and at traffic has significantly decreased and many the moment several requests have already been airlines are have to return aircraft or leased received from airlines for a complex service for engines. This often requires work on their long- performing redelivery on aircraft engines.

20 “Usually, this kind of work is performed on a The complex service of engine redelivery is also removed engine abroad. The lease contract will provided on the Customer’s facilities. S7 Technics’ not be closed until the engine is fully equipped, facilities are certified by EASA, Bermuda DCA, inspected and declared as serviceable. Our the Russian Aviation Authority, and a number of advantage is that we do all necessary work before other national aviation authorities to carry out returning the maintenance for different types of Boeing, Airbus, engine to the Embraer and Sukhoi Civil Aircraft airliners. There lessor. This saves are three heavy maintenance bases located at time, money, and Moscow (DME), Novosibirsk (OVB) and Mineralnye also allows you Vody (MRV) airports and several line maintenance to close the lease stations across Russia. Company holds EASA- contract and stop 145, EASA 147, EASA-21G&J approvals as well paying the rental as Bermudan, Russian and some other countries fee” - commented certificates. S7 Technics’ Moscow (DME) base is Kirill Khilevich. ISO certified under EN 9110:2016 quality system Each engine is standard. The company’s scope of work includes released with heavy maintenance (up to and including D-Checks), an EASA Form 1 engine hospital repairs, line maintenance, certificate. It gives structural repairs, engineering services (including the opportunity to modification under EASA Part 21J and interior the next operator components manufacture under EASA Part 21 to install the G), component repairs, aircraft painting services engine on aircraft and training services (under EASA Part 147 and and continue its Russian FAR-289). The company aims for ongoing operation. The improvement of its products, partially supported lessor can find by joint projects with OEMs. The company delivers a new lessee as its services to Russian airlines (S7 Airlines, Aeroflot soon as possible Group, Air Astana and others) and to carriers from and continue to Europe, Asia, and the Middle East, providing its receive payments clients with over 100 heavy maintenance forms from the aircraft and over 1000 light maintenance forms per year. engine leasing. For more information about S7 Technics and All necessary its services, please visit: www.s7technics.ru equipment was purchased and currently available at S7 Technics home bases in Moscow and Mineralnye Vody. Up to three engine shop specialists required to prepare the engine for lease return. It takes about 3-6 days to complete the full range of works.

21 Embraer Delivers Five Commercial and Nine Executive Jets in 1Q20

São José dos Campos - Brazil, May 12, 2020 – were also negatively impacted by the conclusion Embraer (NYSE: ERJ; B3: BOVESPA: EMBR3) delivered of the separation of Embraer’s Commercial a total of 14 jets in the first quarter of 2020, of Aviation unit in January. During the first quarter, which five were commercial aircraft and nine were Embraer Executive Jets announced that the new executive Phenom 300E was granted its Type Certificate by jets (five ANAC (National Civil Aviation Agency of Brazil), light and EASA (European Union Aviation Safety Agency) four large). and the FAA (Federal Aviation Administration). As of March The new Phenom 300E is the recently enhanced 31st, the version of the Phenom 300 series, which was the firm order most delivered business jet series in the 2010s. backlog Also in this period, Emgepron, a Brazilian state- totaled USD owned company linked to the Ministry of Defense 15.9 billion. through the Brazilian Navy Command, and Águas Historically, Azuis, a company created by thyssenkrupp Embraer Marine Systems, Embraer Defense & Security seasonally has fewer deliveries during the first and Atech, signed the contract to build four quarter of the year, and in 2020 in particular, the state-of-the-art Tamandaré Class Ships, with commercial aircraft deliveries in the first quarter deliveries scheduled between 2025 and 2028.

22 Airbus Orders & Deliveries - April 2020

THE MONTH IN REVIEW: APRIL 2020 Airbus logged 930 A350 XWBs, 642 A220s and 251 A380s. In net orders in April for nine commercial aircraft April, 12 A320neo Family aircraft were delivered. from its A320 product line from Avolon. By April For Airbus widebody aircraft, one A350 XWBs 30th, Airbus’ gross orders in 2020 totalled 365 was provided in the A350-900 configuration; aircraft. After cancellations the net orders stand along with one A330ceo. Among the month’s at 299 aircraft. During the month, 14 deliveries notable deliveries was the first 100% e-deliveries were made from the A320, A330 and A350 XWB to Pegasus Airlines. Airbus’ backlog of aircraft aircraft families. Business in April brings the remaining to be delivered as of 30th April stood at overall total orders logged by Airbus since its 7,645, comprised 6,217 A320 Family aircraft, 529 creation to 20,407 commercial aircraft, which A220s, 322 A330s, 568 A350 XWBs and nine A380s. includes 15,572 A320 Family aircraft, 1,819 A330s,

23 Spirit AeroSystems Adjusts Employment to Align With Lower Market Demand

Spirit AeroSystems [NYSE: SPR] announced today work. Spirit’s global sites are reviewing workforce it will reduce employment at sites supporting requirements and will announce their plans in commercial programs a result of lower demand the coming weeks. As Spirit continues to respond for commercial airplanes. Spirit is a supplier to to the COVID-19 pandemic by changing its work Airbus and Boeing, both of which announced practices to keep employees safe, the company lower production rates for commercial aircraft is also working directly to contribute to the due to the impact of COVID-19 on the aviation fight against COVID-19. Spirit has developed a industry. “Our actions follow reduced demand partnership to manufacture medical devices in from our customers, who have lowered production Wichita. Approximately 700 employees will be rates as demand for new airplanes declines due transferred to this temporary special project that to the impact of COVID-19,” said Tom Gentile, is expected to last through October and may President and CEO, Spirit AeroSystems. “In addition go longer, depending upon demand. Spirit will to reducing employment, we are taking other have more information to share on the medical initiatives to lower costs and preserve liquidity, device partnership in the near future. Spirit’s which included raising $1.2 billion in high yield work on defense programs will not be impacted secured second lien bonds in April. We are focused by these announced employment reductions and on ensuring Spirit AeroSystems remains a healthy those operations will continue uninterrupted. business and emerges from this crisis with a Additionally, some employees currently supporting bright future.” As part of the overall employment commercial programs may be transferred to reductions, Spirit offered a voluntary layoff to available defense work, mitigating the number of union represented employees in Wichita, Kan. employees who may be affected by these workforce earlier this week. Today Spirit issued a notice to actions. “While we are faced with difficult decisions the State of under the Worker Adjustment during this unprecedented time in our industry, and Retraining Notification (WARN) Act of layoffs we remain focused on maintaining operations to affecting approximately 1,450 hourly and salaried support our customers, including the critical work employees at its site in Wichita. Spirit’s Wichita we do on national security programs,” Gentile said. employees affected by these layoffs are expected “I remain confident in the future of the aviation to begin exiting the company May 15. Later this industry and believe in our ability as a company month, smaller reductions will occur at Spirit’s to weather this pandemic and emerge stronger.” remaining U.S. sites that perform commercial

24 Strong Interest In Services For Temporary Operational Changes From Passenger To Cargo Aircraft

much more than just taking out seats, you need engineering experts who know exactly what the challenges are and how to document the technical solutions so correctly that the aviation authorities agree. The current exemption and our solution for it can be transferred to our Supplemental Type Certificate (STC) at a later point of time without major adjustments. This means that anyone who opts for LHT’s exceptional solution now can easily switch to the permanent First agreement for technical and engineering STC solution later.” Normally, an support on an Airbus A380 Enquiries from more aircraft that has been granted an approval for than 40 airlines More than 15 projects already in passenger transport cannot simply be loaded realization Lufthansa Technik’s new technical and with cargo in the cabin, as the approval criteria engineering services for temporary operational for passenger cabins and cargo compartments changes from passenger to cargo aircraft have met are completely different. For example, cargo with great interest in the aviation market. So far, has a different floor load, i.e. the structural load the cabin modification experts of the company capacity of a passenger aircraft is lower than have received enquiries from more than 40 airlines. that of a cargo aircraft. While for passenger More than 15 projects for different aircraft types transport rescue routes must be kept clear and are already in the implementation phase. A special the oxygen supply must be ensured for each highlight is the support of the operational change individual, special fire protection measures must of a first Airbus A380 of an undisclosed customer be taken on board a freighter. All these criteria, with which Lufthansa Technik has now been and some more, must be taken into account and awarded. “Over the past days, we have received incorporated into the technical documentation strong interest from different airlines regarding by suitably qualified engineers and approved. our passenger to freighter service capabilities,” Lufthansa Technik is currently working flat out to explained Henning Jochmann, Senior Director obtain STCs for all common aircraft types so that Aircraft Modification Base Maintenance at airlines all over the world can quickly convert Lufthansa Technik. “As the workscope comprises their passenger aircraft into auxiliary freighters.

25 Emirates Resumes Passenger Flights To 9 Destinations, Including Connections Between UK And Australia

• From 21 May, Emirates will operate to: who wish to return to Dubai. Adel Al Redha, London Heathrow, Frankfurt, Paris, Milan, Madrid, Emirates’ Chief Operating Officer said: “We are Chicago, Toronto, Sydney and Melbourne* pleased to resume scheduled passenger services to these destinations, providing more options • Offers seamless connection in Dubai for for customers to travel from the UAE to these customers flying between the UK and Australia cities, and also between the UK and Australia. Dubai, UAE: 13 May 2020 – Emirates has announced We are working closely with the authorities to its plan to operate scheduled flight services from plan the resumption of operations to additional 21 May to nine destinations: London Heathrow destinations. We have implemented additional Frankfurt, Paris, Milan, Madrid, Chicago, Toronto, measures at the airport in coordination with the Sydney and Melbourne.* The airline will also offer relevant authorities in respect to social distancing connections in Dubai for customers travelling and sanitization. The safety and wellbeing of between the UK and Australia. These flights our employees, customers and communities, will be available for booking on emirates.com. remain our top priority.” Repatriation flights In Travellers will only be accepted on these flights if addition to the scheduled services, Emirates will they comply with the eligibility and entry criteria also continue to work closely with embassies and requirements of their destination countries. This consulates to facilitate repatriation flights for includes an approval from the Federal Authority visitors and residents wishing to return home. for Identify and Citizenship (ICA) for UAE residents

26 This week, the airline plans to operate flights from in the airport to ensure travellers maintain a safe Dubai to Tokyo Narita (15 May), Conakry (16 May), distance. For health and safety reasons and to and Dakar (16 May).* Health and safety on Emirates minimise interaction on-board, Emirates will offer a The safety and wellbeing of passengers and modified in-flight service that focuses on reducing employees is Emirates’ top priority. In preparation contact and infection risk. Magazines and print for the resumption of flight services, the airline reading material will not be available during this has already enhanced various precautionary time. Cabin baggage have to be checked-in, and measures throughout the customer journey. customers can only bring essential items such At Dubai International airport, customers and as a laptop, handbag, briefcase or baby items on employees will have their temperatures checked board. Emirates has initiated a stringent safety via thermal scanners. Protective barriers have programme to ensure aircraft cabins remain clean been installed at check-in counters to provide and sanitary. The airline’s modern aircraft cabins additional safety during interaction. Gloves have been fitted with advanced HEPA air filters and masks are mandatory for all customers and which remove 99.97% of viruses and eliminate employees at the airport. In addition, Emirates’ dust, allergens and germs from cabin air for a cabin crew, boarding agents and ground staff healthier and safer on-board environment. After its who interact directly with travellers will don journey and on landing in Dubai, each aircraft will personal protective equipment (PPE) including a go through enhanced cleaning and disinfection protective disposable gown and safety visor. Social processes to ensure safety and proper sanitation. distancing protocols will also be implemented. For more information on Emirates and on how At this airport, this includes physical indicators to book flights, please visit emirates.com. being placed on the ground and at waiting areas

27 Boeing Statement on Bond Offering

CHICAGO, April 30, 2020 - We’re pleased with the Congress and the Federal Reserve. As a result of response to our bond offering today, which is the response, and pending the closure of this one of several steps we’re taking to keep liquidity transaction expected Monday, May 4, we do not flowing through our business and the 17,000 plan to seek additional funding through the companies in our industry’s supply chain. The capital markets or the U.S. government options robust demand for the offering reflects strong at this time. The bond offering includes debt support for the long-term strength of Boeing and instruments with an aggregate principal amount of the aviation industry. It is also in part a result of $25 billion across seven tranches with maturities the confidence in the market created by the CARES ranging from three to 40 years. We will continue Act and federal support programs that have been to assess our liquidity position as the health crisis put in place - a testament to the Administration, and our dynamic business environment evolve.

28 Aerolineas Argentinas And Austral To Merge

The Argentine government plans to merge which owns both airlines, aims to benefit from Aerolineas Argentinas and Austral Lineas Aereas to synergies and reduce overhead, in part by utilizing cope with the impact from the coronavirus crisis. a common maintenance facility and joining pilots “Companies that do not adapt to the needs of their and cabin crew. The merger will allow the creation times disappear, “ warns Group CEO Pablo Ceriani, of new business units in aircraft maintenance who supports the combination of Aerolineas with and cargo, further expanding the opportunities the subsidiary airline unit. Ceriani expects several for the company. The process will begin at the critical months ahead, months without income or next shareholders’ meeting and it is estimated regular operations, which will impact the industry that it will have concluded by the end of 2020. and the economy in general. The government,

29 WestJet Saves 1,000 Pilot Jobs Through ALPA Agreements

Today, WestJet announced it has reached an and Chief Operating Officer. “We thank ALPA for agreement with the Airline Pilot Association (ALPA), the joint effort in working with us to assist our to save more than 1,000 pilot jobs at WestJet, airline in remaining flexible and competitive. Our WestJet Encore and Swoop amidst the COVID-19 pilots will be a critical element of our recovery crisis. The airline had previously confirmed that and retaining these important roles leaves us 1,700 pilots across WestJet, WestJet Encore and better positioned to recover strongly and return Swoop had received layoff notifications, effective WestJet to a global airline.” Said ALPA MEC Chair, either May 1 or June 1, 2020. “I’m pleased that representing WestJet and Swoop, Captain Dave ALPA and WestJet, through robust negotiations Colquhoun, “The agreement we have reached is and collaboration have come together to due to the dedication of the WestJet executive minimize the impact of the unprecedented and the WestJet pilots, in a time where everyone COVID-19 pandemic on our pilot groups,” said is making sacrifices to protect our airline. Jeff Martin, WestJet Executive Vice-President,

30 ALPA’s elected leadership appreciates the time terms to the current agreements. WestJet continues and effort that was involved in working together to work collaboratively with its employee and to minimize the impact to our members and we labour groups as well as all levels of government look forward to the time when all of our pilots, and to minimize the impact of the COVID-19 crisis to many of the other WestJetters who are casualties of the airline and its employees. WestJet is utilizing this crisis, are back to work at WestJet.” Said ALPA the Government of Canada’s Canada Emergency MEC Chair, representing WestJet Encore, Captain Wage Subsidy (CEWS) to assist in navigating this Ryan Leier, “On behalf of WestJet Encore pilots, I pandemic while work is not available due to the am pleased we were able to successfully reach an downturn in demand for air travel. Where it is of agreement. We recognize that these are uncharted benefit to the employee, WestJet will use CEWS skies as we deal with the effects of COVID-19 and to keep the inactive employee on the payroll to this agreement will help our pilots and the airline ensure they remain connected to the company. get through this together.” The agreement allows ALPA will communicate specific details to WestJet, the WestJet Group of Companies to retain pilots WestJet Encore and Swoop Pilots and WestJet across the three groups, through the amendment of will not be providing further information.

31 Aero Norway Invests In Five CFM56-3 Engines To Support Customers

Stavanger, May 4th 2020: Aero Norway, the the team has been praised by several customers for independent engine MRO provider, has invested in not having shut-down operations and continuing five more CFM56-3 engines which it will introduce engine MRO services during this time of crisis. into its refurbish and sell programme. The original plan was to undertake a total of six refurbish and sell CFM56-3 engines for 2020 however to support its customers and fill the slots caused by deferred -5B/-7B workscopes caused by COVID-19, five more -3 engines have been added to their portfolio. Throughout March and April, the Company has inducted mostly CFM56- 3 engines for repair and overhaul as the COVID-19 pandemic has seen operators of the classic freighters burn more hours than ever before to support today’s increased cargo demand. It will continue to do so throughout this year as engine maintenance requirements from freighter customers are set to increase, and the acquisition of five serviceable engines will help these operators sustain seamless flight maneuvers. Neil Russell, Chief Operating Officer at Aero Norway, says

32 “Whilst other engine shops have closed their invest in its in-house repair processes.This includes facilities, we have developed solutions with the the installation of a new, state-of-the-art highspeed Norwegian Government’s policies and procedures grinder and the Company is currently in process of to ensure that all employees and everyone involved replacing its plasma spray machine, including HVOF in the business stays safe, yet still able to fully (High-Velocity Oxygen Fuel) capability. “With our maintain our operation.” Aero Norway focuses ongoing and recent investments, motivated people heavily on lean production whilst maintaining and continuous improvement, we strive to find competitive turn-around times and to achieve the best ways to deliver engine MRO services of these standards the organisation continues to outstanding quality” Russell explains. “Although the CFM56-3 is a legacy product for Aero Norway, we have the skilled technicians to extract the best EGT margins and consequently generate greater efficiencies and economies for our freighter customers. We’re renowned for that.” The newly re- built CFM56-3 engines bring another dimension to what Aero Norway can offer within its diversified portfolio of specialist CFM56 engine family services. Russell adds that leasing companies have a precise need for CFM56-5B and -7B engine overhauls right now. “Our loyal customers in the aircraft/engine leasing industry are keeping us fairly busy. Currently, some of our lessor customers are under immense pressure to be ready to re-position serviceable aircraft and engines when the critical COVID-19 situation passes.”

33 Willis Lease Finance Corporation Reports First Quarter Pre-Tax Profit Of $8.5 Million

COCONUT CREEK, FL — May 5, 2020 — Willis disassembly facility in the United Kingdom.” Lease Finance Corporation (NASDAQ: WLFC) First Quarter 2020 Highlights (at or for the today reported first quarter pre-tax profit and periods ended March 31, 2020, as compared total revenues of $8.5 million and $81.6 million, to March 31, 2019, and December 31, 2019): respectively. The Company’s first quarter 2020 • Total revenue was $81.6 million in the first pre-tax results were impacted by both lower quarter of 2020, a 21.4% decrease when compared revenue in the core leasing business, which was to $103.8 million in the same quarter of 2019. influenced by a reduction in reported asset usage and reduced spare parts sales, and the one- • Lease rent revenue was $46.4 time expense associated with our Willis Engine million in the first quarter of 2020. Structured Trust II re-financing. Aggregate lease rent and maintenance reserve revenues were $66.9 • Maintenance reserve revenue was $20.5 million for the first quarter of 2020. “The Company million in the first quarter of 2020, a decrease experienced another quarter of profitability of $4.8 million, or 19.0%, compared to $25.4 but on lighter revenues primarily driven by the million in the same quarter of 2019. Long term decline in global flight traffic, which led to lower maintenance reserve revenue increased to $8.6 maintenance revenues and spare parts sales,” million for the first quarter of 2020, compared said Charles F. Willis, Chairman and CEO. “We to $7.8 million in the comparable prior period. recognize that the COVID pandemic is putting a Short term maintenance reserve revenue, which lot of strain on our lessee customer base and we is influenced by lease asset usage, decreased to do not see that correcting quickly. We therefore $11.9 million for the first quarter of 2020 compared remain highly focused on protecting our business to $17.6 million in the comparable prior period. while continuing to deliver for our customers.” • Spare parts and equipment sales were $9.1 “Like the rest of the world, our business, our million in the first quarter of 2020, compared to people and our customers have been negatively $17.5 million during the same quarter of 2019. affected by this incredible pandemic,” said Brian R. Hole, President. “But we are working harder than • Gain on sale was $2.1 million in the ever to deliver all that our Platform has to offer first quarter of 2020, reflecting the sale of in support of our customers, providing liquidity seven engines compared to $9.6 million in the through asset financings, asset management same quarter of 2019, reflecting the sale of and technical services for repositioning assets, six engines, six aircraft, and two airframes. surplus material to lower maintenance costs and even opening a new aircraft storage and

34 • Other revenue increased to $3.5 million in • The Company maintained $362 million of the first quarter of 2020, compared to $3.0 million undrawn revolver capacity at March 31, 2020. in the same quarter of 2019, primarily reflecting • Diluted weighted average interest revenue from our Notes receivable. earnings per common share was $0.56 • Income before income taxes was $8.5 for the first quarter of 2020, compared to million in the first quarter of 2020, compared $3.35 in the similar period in 2019. to $27.8 million in the same quarter of 2019. • Book value per diluted weighted • Our equipment held for operating lease average common share outstanding decreased portfolio was $1.698 billion at March 31, 2020, to $57.64 at March 31, 2020, compared compared to $1.651 billion at December 31, 2019. to $57.83 at December 31, 2019.

• The book value of lease assets we own Balance Sheet directly or through our joint ventures was $2.0 As of March 31, 2020, the Company’s $1.698 billion billion at March 31, 2020. As of March 31, 2020, equipment held for operating lease portfolio the Company also managed 451 engines, aircraft consisted of 260 engines, 10 aircraft and 11 and related equipment on behalf of third parties. other leased assets. As of December 31, 2019, • The Company completed a $366.2 the Company’s $1.651 billion equipment held million re-financing of Willis Engine for operating lease portfolio consisted of 263 Structured Trust V (formerly known as engines, 10 aircraft and 11 other leased assets. Willis Engine Securitization Trust II).

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