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Issue 22 APRIL/MAY 2009<br />

MARKET REPORT<br />

A PUBLICATION OF SAAB AIRCRAFT LEASING<br />

Delta livery replaces<br />

northwest colors<br />

on SAAB 340Bplus fleet<br />

carpAtair marks 10<br />

years of saab service<br />

murray air expands<br />

saab 340 service under<br />

national airlines<br />

saab 2000s fly joe gibbs’<br />

race teams in corporate<br />

shuttle style


message from<br />

Michael Magnusson<br />

Contents<br />

SAL posts successful 2008 with entire portfolio allocated............ 3<br />

I often get asked these days how the<br />

recession is affecting us, and so far, I<br />

am happy to respond “not that much”.<br />

<strong>Saab</strong> 340s, <strong>Saab</strong> 2000s and <strong>Saab</strong><br />

<strong>Aircraft</strong> <strong>Leasing</strong>’s services are still in<br />

strong demand. Activity associated<br />

with the small percentage of <strong>Saab</strong><br />

340s and <strong>Saab</strong> 2000s available is incredible!<br />

We have at least three to four<br />

prospects with our available portfolio<br />

aircraft and of the eight <strong>Saab</strong> 340s<br />

returned to headlessors over the past<br />

year, all have been placed within 30-60<br />

days. One customer that recently had<br />

to park a few aircraft is now putting<br />

them back into service to cover routes<br />

once flown by a major airline.<br />

Now that we are well into the year 2009, it is apparent that the effects of the<br />

economic down-turn is wreaking havoc on our industry. Traffic is typically falling<br />

about 10 percent for North American and European regions. Thus airlines are<br />

cutting back, especially in international markets. One advantage with being a bit<br />

more “mature” is that I have seen similar scenarios play out before. This downturn<br />

is especially severe, and as usual has an immediate impact on the travel<br />

industry. Air travel is something everyone, whether it’s business or leisure, will<br />

scale back on quickly. It is an easy decision to make. But the advantages of this<br />

sector has already been proven; once people feel a bit more optimistic about the<br />

future, they tend to return to air travel quickly. Airline travel has many examples<br />

of this. Obviously the severity of this global recession makes it more difficult to<br />

predict the pace of the recovery. After September 11, travel did recover quickly.<br />

The real question is “How long will it take this time”.<br />

The advantage with a smaller aircraft like the <strong>Saab</strong> 340 is that it gives an airline<br />

much flexibility to cut capacity while still maintaining a decent service and<br />

frequency. If you are flying larger aircraft, there is less flexibility, unless you are<br />

serving a very large market. Another advantage is that the <strong>Saab</strong> 340 does not<br />

require a large number of passengers to justify adding frequencies or service. As<br />

a matter of fact, we have recently been contacted by two regional air carriers that<br />

specifically want to add <strong>Saab</strong> 340s because of the major airline service reductions.<br />

It will be interesting to see how many more such cases we will see in 2009.<br />

At the upcoming RAA convention in Salt Lake City, Utah, I am sure this will be a<br />

hot subject; legacy carrier cut-backs and the possible effect on regional carriers.<br />

Within <strong>Saab</strong> <strong>Aircraft</strong> <strong>Leasing</strong> (SAL) we continue with our daily work of supplying<br />

our customers with cost-effective aircraft. We had a busy 2008 year end with<br />

deliveries to the Argentine Air Force (see related story on page 12) and aircraft we<br />

remarketed to Air Panama, both new operators of the <strong>Saab</strong> 340. We also continue<br />

to deliver <strong>Saab</strong> 340Bplus-WTs to Rex in Australia. In Europe, we were obviously<br />

sad to see FlyLAL go out of business but at least all four <strong>Saab</strong> 2000s have been<br />

placed with other existing customers. We have worked with FlyLAL for more than<br />

10 years and watched that airline grow, but the new economic climate became<br />

too much for them to overcome. In Australia, we have seen an established <strong>Saab</strong><br />

340 operator, Macair, go out of business as the economic climate took its toll.<br />

But on the flip side of the coin, the <strong>Saab</strong> 340 fleet in the Bahamas keeps growing,<br />

eight <strong>Saab</strong> 340s in service and more on the way. The same holds true in Poland.<br />

With two more acquired from Australia’s Rex, the Polish regional carrier Sprint-<br />

Air will now operate a total of 11 <strong>Saab</strong> 340s. It certainly appears that when one<br />

operator falls on hard times, another carrier is there to grow!<br />

2009 will be an interesting year, and probably one of those years that will be<br />

analyzed for years to come. At SAL, not only will we work harder to avoid becoming<br />

another statistic, but we will also continue to be a leading provider of <strong>Saab</strong><br />

aircraft worldwide. I look forward to seeing many of you at the upcoming RAA in<br />

Salt Lake City to discuss this further!<br />

Delta livery replaces Northwest colors<br />

on <strong>Saab</strong> 340Bplus fleet............................................................................. 4<br />

Carpatair marks 10-year anniversary.................................................... 6<br />

<strong>Saab</strong> 340 operates in National Airlines Air Cargo<br />

forwarding business................................................................................... 9<br />

<strong>Saab</strong> 2000s fly Joe Gibbs’ Race teams in<br />

corporate shuttle style............................................................................. 10<br />

Argentine Air Force to accept two more<br />

<strong>Saab</strong> 340Bs this summer.........................................................12<br />

Western Air grows <strong>Saab</strong> 340 fleet for Bahamian services........... 13<br />

Loganair uses two of its <strong>Saab</strong> 340s for freight flights.................... 13<br />

<strong>Saab</strong> website redesigned www.saabaircraftleasing.com............. 14<br />

Mark your calendar................................................................................... 14<br />

<strong>Saab</strong> destination: Lynden Pindling<br />

International Airport (NAS/MYNN)........................................................ 15<br />

<strong>Saab</strong> operators map................................................................................ 16<br />

Cover photo by Mesaba Airlines<br />

Market Report is published by<br />

<strong>Saab</strong> <strong>Aircraft</strong> <strong>Leasing</strong><br />

Editor: Kelly Murphy<br />

Emerald Media<br />

kelly@emeraldmediaus.com<br />

Europe: Alison Chambers<br />

Emerald Media<br />

alison@emeraldmedia.co.uk<br />

Design and Layout:<br />

Aeris Graphic Design<br />

jennifer@aerisgraphicdesign.com<br />

Michael Magnusson<br />

President and CEO, <strong>Saab</strong> <strong>Aircraft</strong> <strong>Leasing</strong><br />

Printed in USA May 2009<br />

©2009 <strong>Saab</strong> <strong>Aircraft</strong>


MARKET REPORT<br />

SAAB AIRCRAFT LEASING POSTS<br />

SUCCESSFUL 2008 WITH ENTIRE<br />

PORTFOLIO ALLOCATED<br />

<strong>Saab</strong> <strong>Aircraft</strong> <strong>Leasing</strong> (SAL)<br />

closed a successful 2008 with<br />

all of its portfolio allocated to<br />

customers.<br />

“Demand for good <strong>Saab</strong> aircraft<br />

continues to be strong and<br />

steady,” said SAL President and<br />

CEO Michael Magnusson. “As<br />

always, we are pleased to see existing<br />

customers extend leases on<br />

our aircraft, while others chose to<br />

add more. During 2008, SAL was<br />

also able to secure new customers,”<br />

he noted, adding “we foresee<br />

a small turnover of our aircraft<br />

during 2009.”<br />

In total, SAL completed 17 aircraft<br />

transactions last year and was limited<br />

by the number of aircraft available.<br />

All six available <strong>Saab</strong> 2000s were<br />

either allocated or extended. OLT<br />

extended one and Air Express two.<br />

Eastern Airways added two, and<br />

Golden Air took delivery of one<br />

<strong>Saab</strong> 2000. In addition, SAL sold<br />

one <strong>Saab</strong> 2000 to Joe Gibbs Racing.<br />

The only two available <strong>Saab</strong> 340Bs<br />

were extended by Loganair. The<br />

only four available <strong>Saab</strong> 340As<br />

were either leased, extended<br />

or sold (Loganair purchased<br />

two, Murray extended one, and<br />

Western Air leased one.) SAL also<br />

refinanced one <strong>Saab</strong> 340A for an<br />

undisclosed customer.<br />

During 2008, SAL successfully<br />

placed two <strong>Saab</strong> 340Bs on behalf<br />

of a third party on long-term lease<br />

with Air Panama which is both a<br />

new customer and a new country<br />

for <strong>Saab</strong>. SAL also placed one <strong>Saab</strong><br />

340A on behalf of Rex with SOL in<br />

Argentina.<br />

SAL’s portfolio at the end of the<br />

year consisted of 125 aircraft<br />

leased to 17 clients in 11 countries.<br />

MARKET REPORT | April/May 2009<br />

3


MARKET REPORT<br />

Delta livery replaceS<br />

northwest colors<br />

on SAAB 340Bplus fleet<br />

PIR<br />

DVL<br />

JMS<br />

ABR<br />

ATY<br />

FSD<br />

GFK<br />

SUX<br />

TVF<br />

MESABA AIRLINES<br />

SAAB 340Bplus ROUTES<br />

NWA<br />

DL<br />

BJI<br />

BRD<br />

INL<br />

STC<br />

MCW<br />

FOD<br />

FSM<br />

MSP<br />

DSM<br />

HIB<br />

DLH<br />

ALO<br />

CID<br />

COU<br />

AEX<br />

EAU<br />

MLU<br />

LFT<br />

YQT<br />

CMX<br />

RHI<br />

CWA<br />

MQT<br />

IMT PLN<br />

ESC<br />

ATW<br />

PIA BMI<br />

CMI<br />

GLH<br />

MEM<br />

PIB<br />

PAH<br />

MKG<br />

AZO<br />

SBN<br />

TUP MSL<br />

CIU<br />

FWA<br />

APN<br />

DTW<br />

TOL<br />

LEX<br />

ATL<br />

TLH<br />

Delta’s red, white and blue signage<br />

appeared at former Northwest<br />

Airlines hubs in Detroit, Memphis<br />

and Minneapolis -St. Paul on April<br />

1, 2009 as part of its $500-million<br />

integration effort. All domestic<br />

airports will be re-branded by<br />

yearend and the two merged<br />

major airlines will operate under<br />

a single operating certificate by<br />

the end of 2009, as well. Some 33<br />

NWA aircraft have already been<br />

repainted with 250 left to complete<br />

before the end of 2010.<br />

CAK<br />

YXU<br />

CRW<br />

TRI<br />

YKF<br />

ERI<br />

LBE<br />

HHH<br />

TPA MCO<br />

CHO<br />

ITH<br />

The largest <strong>Saab</strong> 340Bplus operator<br />

in the world, Mesaba too has been<br />

undergoing a revitalization of its<br />

fleet with all of its 49 <strong>Saab</strong> 340Bplus<br />

aircraft eventually to be repainted<br />

with the Delta livery over the next<br />

two years.<br />

A long history with Northwest,<br />

Mesaba was purchased by the<br />

major airline out of bankruptcy<br />

to ensure its continued ability to<br />

serve the smaller, but important,<br />

cities in Minnesota, North Dakota,<br />

South Dakota, Iowa, Michigan and<br />

other heartland markets.<br />

Now serving as a Delta Connection<br />

carrier, Mesaba’s 49 <strong>Saab</strong> 340Bplus<br />

aircraft fly from Dallas, Memphis,<br />

Atlanta and intra-Florida as part of<br />

the new network and fleet plan that<br />

the merged airlines have launched.<br />

In March the <strong>Saab</strong> 340Bplus’ role<br />

expanded the network by offering<br />

seven daily departures from Delta’s<br />

Atlanta hub and in April six daily<br />

departures for intra-Florida service<br />

including Tallahasee, Tampa<br />

Bay and Ft. Lauderdale (see route<br />

map at left).<br />

The new <strong>Saab</strong> 340plus hub in<br />

Atlanta will replace the 12 ATR<br />

72s that are currently leaving<br />

Delta’s regional fleet. The move has<br />

allowed Delta to restart its lucrative<br />

Hilton Head Island, South<br />

Carolina service which ended in<br />

December. Other short-haul routes<br />

from Atlanta now served by <strong>Saab</strong><br />

340Bplus aircraft include Tri-City.<br />

Don Bornhorst, Senior Vice President-Delta<br />

Connection, in charge<br />

of the nine affiliated regional<br />

partners, tells <strong>Saab</strong> Market Report<br />

“a mainline-like” service remains<br />

the priority at the Connection<br />

level as well as “selling the Delta<br />

experience.”<br />

Mesaba President John Spanjers<br />

echoes Bornhorst’s comments noting<br />

that Mesaba’s 4,000 employees<br />

are integrating into “the Delta<br />

world” and remain focused on<br />

“providing a seamless product” to<br />

its passengers by flying reliably and<br />

cost-effectively.<br />

“We have more than doubled our<br />

fleet size in a two-year period<br />

increasing from 49 <strong>Saab</strong> 340Bplus’<br />

to 109 aircraft. Over the last two<br />

years, Mesaba has had an incredible<br />

growth cycle and is now<br />

moving into a Delta environment,”<br />

Spanjers notes. Emerging<br />

from bankruptcy in mid-2007,<br />

Mesaba called on its then 3,200<br />

employees to remain dedicated<br />

to a high level of operational<br />

performance for its mainline<br />

FLL<br />

4 MARKET REPORT | April/May 2009


MARKET REPORT<br />

“If Delta seems tougher on its<br />

regional partners...guilty as<br />

charged...we have to maintain<br />

flexibility to meet customer<br />

demands and have a laser-like<br />

focus on reliability and customer<br />

service.”<br />

Don Bornhorst<br />

partner, Northwest. “It is a credit<br />

to our employees...their focus has<br />

allowed us to take on growth and<br />

stay true to our core objective to<br />

be cost competitive.”<br />

Northwest started deliveries<br />

of 36 CRJ900 regional jets in<br />

June 2007 which was completed<br />

in December 2008. Then in<br />

February 2009, Delta moved<br />

five CRJs to Mesaba’s operation<br />

challenging the carrier again to<br />

operate out of a new location –<br />

Salt Lake City and this summer<br />

New York’s JFK airport. Some<br />

19 CRJ200s are also operated by<br />

Mesaba from its Minneapolis<br />

and Detroit hubs.<br />

By the third quarter 2010, the<br />

entire <strong>Saab</strong> 340Bplus fleet will<br />

be repainted in Delta livery and<br />

by this fall all of the 30-seaters<br />

will have undergone an extensive<br />

interior refurbishment program including<br />

new leather seat cushions<br />

and carpeting. “This fits our overall<br />

objective to provide a seamless<br />

service product to our passengers.<br />

We are stepping up our <strong>Saab</strong> cabins<br />

to make sure the experience on<br />

the aircraft is one that they want to<br />

come back to,” says Spanjers.<br />

In addition, new PDAs, developed<br />

by AeroData, have been installed<br />

on each <strong>Saab</strong> aircraft allowing crews<br />

to retrieve real-time, computerized<br />

weight and balance information.<br />

Growing up near the Cincinnati/Northern Kentucky International Airport<br />

in Erlanger, Kentucky, Don Bornhorst caught the aviation bug back then<br />

and immediately became interested in his start-up hometown airline<br />

Comair. As a high-school senior, Bornhorst bought 100 shares in Comair<br />

and followed the airline’s growth in his college years while studying<br />

business at Eastern Kentucky University. A certified public accountant,<br />

Bornhorst joined Comair in 1991 as Manager-Internal Audit and Special<br />

Projects. At age 42, Bornhorst was promoted to President of Comair in<br />

May 2006, after working in every major operating group at the regional<br />

airline. During his 16 years at Comair, he served as CFO, Vice President-<br />

Information Systems and Senior Vice President of Customers with<br />

oversight of Customer Services and In-Flight.<br />

In October 2007, he departed Comair to head Delta Connection program<br />

responsible for the day-to-day operations of its nine affiliated regional<br />

partners.<br />

Photo: Mesaba Airlines<br />

“If Delta seems tougher on its regional partners...guilty as charged...we<br />

have to maintain flexibility to meet customer demands and have a laserlike<br />

focus on reliability and customer service.” he underlines.<br />

MARKET REPORT | April/May 2009<br />

5


MARKET REPORT<br />

Carpatair marks 10-year<br />

aNniversary<br />

story and photos BY eryl crump<br />

Carpatair, one of Europe’s<br />

leading regional airlines celebrates<br />

its 10th anniversary this<br />

year. The Romanian carrier is<br />

looking forward to its second<br />

decade with confidence on the<br />

back of a strong performance<br />

last year.<br />

Despite the economic downturn<br />

and the steep rise in fuel prices<br />

Carpatair recorded a turnover of<br />

€90.5 million representing a 10<br />

percent growth compared to 2007.<br />

The number of passengers carried<br />

rose by 10 percent, and Carpatair<br />

managed to register a “positive<br />

operating result” of more than €3<br />

million.<br />

Carpatair Founder and Chief<br />

Executive Officer Nicolae Petrov<br />

tells <strong>Saab</strong> Market Report:<br />

“Undoubtedly, 2009 will be a very<br />

serious test for everyone. The highs<br />

and lows in the aviation industry<br />

are not unusual phenomena, they<br />

occur suddenly as the turbulence<br />

we often meet in the air.”<br />

In the past, Carpatair had followed<br />

a cautious growth strategy avoiding<br />

excesses. The flexibility and<br />

adaptability are the most valuable<br />

qualities an organization needs<br />

to meet the unforeseeable, Petrov<br />

notes.<br />

“Therefore, this year we speak less<br />

about growth or expansion plans<br />

and more about offering sustainable<br />

and reliable flight services. Following<br />

this policy, Carpatair will focus<br />

on adjusting the network to actual<br />

demand and concentrate on the<br />

quality of the product.”<br />

Carpatair operates services from<br />

its hub at Timisoara to nine Romanian<br />

cities which then connect<br />

to destinations in Italy, Germany<br />

and Greece. Last year, flights were<br />

launched to link the hub with Vienna<br />

and to the Ukrainian cities<br />

of Kiev and Odessa.<br />

“This is our growth strategy: to<br />

unite, through our Timisoarabased<br />

hub, Greece, Germany<br />

and Italy, with the former USSR<br />

countries,” explains Petrov.<br />

Carpatair was formed as Veg Air<br />

in early 1999 by Petrov, who had<br />

earlier founded sister carrier<br />

Moldavian Airlines and initially<br />

operated a single leased Yakovlev<br />

Yak-40 from Moldavian Airlines.<br />

Flights started from Cluj-Napoca<br />

to Venice and Budapest.<br />

Ties to Moritz Suter’s Crossair<br />

One of those investors is Crossair<br />

Founder Moritz Suter. He recalls:<br />

“One day, Nicolae walked into my<br />

office and asked whether he could<br />

lease a <strong>Saab</strong> 340 aircraft. At the<br />

time, Moldavian Airlines operated<br />

the Yak-40 that, despite its three<br />

jet engines, was much slower,<br />

used about three times more fuel<br />

and had five seats less than the<br />

turboprop.<br />

“Nicolae wanted to change to a<br />

modern and fuel-efficient western<br />

aircraft. As a young, dynamic,<br />

western-oriented entrepreneur<br />

he convinced me very quickly;<br />

we speak the same language, and<br />

moreover he is a most likeable<br />

person. So I agreed to lease the<br />

<strong>Saab</strong>. At that time Moldavian<br />

Airlines’ capital was very thin,<br />

6 MARKET REPORT | April/May 2009


MARKET REPORT<br />

“…we had to choose<br />

a new aircraft type<br />

to replace the 340s.<br />

The solution, I believe,<br />

was innate: the <strong>Saab</strong><br />

2000, the <strong>Saab</strong> 340’s<br />

bigger sister.”<br />

Carpatair Founder and Chief Executive Officer<br />

Nicolae Petrov<br />

MARKET REPORT | April/May 2009<br />

7


MARKET REPORT<br />

Carpatair’s growth<br />

strategy is to<br />

connect Greece,<br />

Germany and Italy<br />

with the former USSR<br />

countries through<br />

its Timisoara hub<br />

sometimes they had troubles in<br />

paying the lease rates, which is why<br />

I suggested to Nicolae that I would<br />

assemble a group of loyal investors,<br />

among my good old friends to<br />

generate the necessary increase in<br />

share capital and put the company<br />

on a sound financial basis.”<br />

Petrov agreed. While the Yak was<br />

“reliable and robust,“ the time for<br />

such airplanes was long gone.<br />

“As an airplane, the <strong>Saab</strong> 340 was<br />

our natural choice. The fleet of<br />

Carpatair reached a maximum<br />

of eight such airplanes. By 2003,<br />

when the number of destinations<br />

increased and diversified,<br />

the necessity of an airplane with<br />

more seats and a greater range,<br />

greater cruising speed and better<br />

equipped technically became<br />

apparent.<br />

“Then again, we had to choose a<br />

new aircraft type to replace the<br />

340s. The solution, I believe, was<br />

innate: the <strong>Saab</strong> 2000, the <strong>Saab</strong><br />

340’s bigger sister. The <strong>Saab</strong> 2000<br />

with its 50 seats, superior flight<br />

performance, advanced technical<br />

equipment, enhanced safety<br />

systems, comfort and economics<br />

proved fully compatible with our<br />

enlarged regional routes network<br />

and fit in perfectly.<br />

“Thus, we went on replacing<br />

the <strong>Saab</strong> 340 with the <strong>Saab</strong> 2000<br />

aircraft, which was completed in<br />

December 2007,” Petrov underlines.<br />

In December 1999, after the Swiss<br />

and Swedish investors took a 49%<br />

stake in the company, the airline<br />

adopted its present title.<br />

Suter explains, “Carpatair follows<br />

the niche market concept just as<br />

Crossair did. It links all important<br />

Romanian cities with its hub<br />

in Timisoara, and from there all<br />

of Romania with the destinations<br />

in western Europe that are<br />

relevant for the country and<br />

its economy. At one of our last<br />

shareholders meetings, Georg<br />

Wiederkehr made the true comment<br />

that Carpatair is all that is<br />

left over from good old Crossair.”<br />

8 MARKET REPORT | April/May 2009


MARKET REPORT<br />

<strong>Saab</strong> 340 operates in<br />

national airlines air cargo<br />

forwarding business<br />

BY kelly murphy<br />

Murray Air, a DC-8 freight operator, and its sister company, Murray<br />

Aviation, a Part 135 passenger and freight carrier, merged operations in<br />

April 2005 under Murray Air’s newly acquired Part 121 certificate. The<br />

Ypsilanti, Michigan-based companies, run by Murray brothers Preston<br />

and Mark since 1985, successfully steered the two operations through<br />

the post-September 11 aviation downturn and decided the merger would<br />

provide the company with long-term growth and viability in the industry.<br />

Becoming a private pilot in the late<br />

1960s, Preston Murray had always<br />

envisaged himself working in commercial<br />

aviation. At age 36, he left<br />

a government job in Washington,<br />

DC, and started living that dream<br />

by obtaining a Part 135 certificate<br />

and then expanding to a Part 121<br />

certificate. “I ended up selling to<br />

National Airlines as part of a strategic<br />

positioning. I saw comparable-sized<br />

airlines struggling to keep their doors<br />

open. National Airlines needed a 121<br />

National Airlines CEO Preston Murray<br />

certificate and more lift, and we saw<br />

the opportunity to share a similar business culture and a productive<br />

agreement for both companies.”<br />

Murray underlines the measure of success is apparent in the complimentary<br />

relationship that has strategically placed both companies in a<br />

strong position. All key employees were also maintained post-merger.<br />

Murray continued to work on his ratings and actually received his ATP<br />

captain rating and flew the line until 1993. He also owned a Beech<br />

King Air and flew it himself until 1994.<br />

Asked for his future airline industry predictions, Preston offers “…<br />

you’re trying to forecast what the levels of aviation activity will be<br />

related to the equation “will there be more people or goods flown” or<br />

“will there be more goods flown than people” either way the sum of<br />

this is “more goods and people will be moved by air transport, so it’s a<br />

good business to be in and has a strong future.”<br />

In November 2006, the right opportunity did appear and Orchard Park,<br />

New York-based National Airlines purchased Murray. A freight forwarder<br />

with offices throughout Europe, the Middle East and Asia, National<br />

is a major supplier of transportation services to the US military. Murray<br />

Air, with its three DC-8 cargo aircraft, one <strong>Saab</strong> 340 and one Jetstream<br />

31, offers both air cargo transport and convenient corporate shuttle and<br />

charter services primarily for the automotive industry. Murray Air is also<br />

a member of the US Military’s Civil Reserve Air Fleet (CRAF) program.<br />

“The buyout took us from a domestic carrier to an international operation<br />

with presence in some 60 countries around the world from Orchard<br />

Park, New York to Frankfurt in Europe, Dubai in the Middle East and<br />

Kuala Lumpur in Asia,” Preston tells <strong>Saab</strong> Market Report, adding the<br />

corporate identity also shifted with Mark departing the company and<br />

Preston agreeing to remain as CEO of National Airlines. In 2008, Preston<br />

took over as CEO of the parent company, National Air Cargo.<br />

With a corporate philosophy of “we provide solutions”, National Airlines<br />

President Tom Quehl is Murray’s former director of operations. Some<br />

500 employees are based in various offices worldwide with about 100<br />

dedicated to the airline scheduled passenger service operation and the<br />

remaining in the air cargo forwarder company.<br />

The comfort and convenience of the corporate shuttle service have<br />

provided an essential part of the auto manufacturer’s corporate plan to<br />

remain cost-effective while withstanding the downsizing of this industry.<br />

Operating from Ypsilanti’s Willow Run Airport, just south of Detroit,<br />

the <strong>Saab</strong> 340 has provided employees the ability to efficiently move from<br />

plant sites to executive offices.<br />

Forecasting a strong year in 2009, Preston acknowledges that the company<br />

is also seeking additional government work to offset the downsizing<br />

auto industry.<br />

A participant of the <strong>Saab</strong> customer support program, Parts Exchange<br />

Program (PEP), Murray notes that “PEP has been very helpful and<br />

cost-effective and saves us a lot of money.” The <strong>Saab</strong> 340 is on long-term<br />

lease and “has been a great airplane for us. I would look to add more,<br />

but the key is the return of the economy and the related increase in<br />

commercial business.”<br />

MARKET REPORT | April/May 2009<br />

9


MARKET REPORT<br />

SAAB 2000s FLY<br />

JOE GIBBS’ RACE TEAMS IN<br />

CORPORATE SHUTTLE STYLE<br />

BY kelly murphy<br />

NASCAR racing has become<br />

the second largest sport in the<br />

United States, after professional<br />

football, with an average<br />

75 million TV spectators for<br />

each race. The racing season<br />

runs from mid-February until<br />

mid-November during which<br />

there are 36 races held around<br />

the continental United States.<br />

While the majority of actual<br />

races take place on Sundays,<br />

teams need to be positioned by<br />

Thursday to prepare. The fuel<br />

efficient and fast <strong>Saab</strong> 2000 is<br />

the workhorse for Joe Gibbs<br />

Racing which includes three<br />

Sprint Cup race teams and two<br />

Nationwide teams.<br />

The Joe Gibbs Racing Flight<br />

Department is now operating its<br />

two <strong>Saab</strong> 2000s and eight-seat<br />

Lear 31As much like an airline<br />

would, Director-Aviation Ivan<br />

Beach tells <strong>Saab</strong> Market Report.<br />

Along with his Chief Pilot, Mark<br />

Thorpe, and his Flight Standards<br />

Captain, Doug Runyon, he has<br />

implemented a standardization<br />

program including standardized<br />

cockpit procedures, system<br />

checks and cockpit flows on both<br />

aircraft types. The JGR flight department<br />

is currently working on<br />

a Safety Management System.<br />

Moving nearly 100 race team<br />

members and executives 36<br />

weekends out of the year, the<br />

Concord, North Carolina-based<br />

Flight Department has relied<br />

heavily on the <strong>Saab</strong> 2000’s “great<br />

speed and tremendous fuel efficiency”<br />

to run a reliable corporate<br />

shuttle service, says Beach.<br />

Each <strong>Saab</strong> 2000, configured with<br />

43 and 44 seats, logs about 360<br />

flight hours annually, with the<br />

Lear accumulating 400 hours.<br />

Flights from Concord are as<br />

far west as Ontario, CA, as well<br />

as other key cities: Las Vegas,<br />

NV, Phoenix, AZ and Montreal,<br />

Canada.<br />

10 MARKET REPORT | April/May 2009


MARKET REPORT<br />

Flight department run as<br />

a team<br />

“We are one team,” Beach says,<br />

explaining how every person in<br />

the flight department is incorporated<br />

into the overall structure<br />

with delegated responsibility<br />

and authority to do their job. “As<br />

a team, we value the efforts of<br />

every member of the department<br />

from aircraft cleaners to managers,”<br />

he explains.<br />

Drawing on his 30+ years of<br />

flying for four airlines, Beach is<br />

also a retired Army helicopter<br />

pilot who commanded an Apache<br />

helicopter battalion as well as an<br />

Aviation Brigade. He retired as<br />

a full Colonel. Beach is rated in<br />

the A330, A320, B727, B737, G-1,<br />

YS-11, <strong>Saab</strong> 2000 and six different<br />

military helicopters that include<br />

the Apache and Cobra attack helicopters.<br />

He has over 21,000 flight<br />

hours in his logbook.<br />

Similarly, Chief Pilot Mark Thorpe<br />

and Flight Standards Captain<br />

Doug Runyon are high-time former<br />

airline pilots. Thorpe is a rated<br />

<strong>Saab</strong> captain, and Runyon is dual<br />

qualified as a <strong>Saab</strong> captain and<br />

Lear 31 captain. Runyon has the<br />

additional distinction of being the<br />

only <strong>Saab</strong> 2000 simulator check<br />

airman in the US outside of Flight<br />

Safety International. Working very<br />

closely with his Director-Maintenance<br />

Steve Cole, Beach is also<br />

assisted by Jan Eads, a long-time<br />

aviation coordinator and scheduler<br />

for owner Joe Gibbs.<br />

Beach attributes much of the<br />

Department’s success to the<br />

highly motivated and professional<br />

<strong>Aircraft</strong> Maintenance Technicians<br />

who are on staff. “I haven’t seen a<br />

group of aircraft maintainers with<br />

this level of commitment since my<br />

Army days,” he notes.<br />

Beach adds the <strong>Saab</strong> 2000’s surplus<br />

power will allow expanded seating<br />

as needed if the race team<br />

expands. “We could go up to 45<br />

seats, even 58, if a fourth team<br />

comes up,” he underlines. “The<br />

<strong>Saab</strong> 2000 is simply the best<br />

airframe available for our mission<br />

profile in every respect. Its<br />

combination of speed, short field<br />

capability, payload, fuel efficiency<br />

and low hourly operating cost are<br />

at the top of its class. As our Chief<br />

Pilot says, “the next best airplane<br />

for our mission doesn’t exist.”<br />

“The next<br />

best<br />

airplane<br />

for our<br />

mission<br />

doesn’t<br />

exist.”<br />

Chief Pilot Mark Thorpe<br />

JGR Flight Department<br />

(Left to right) JGR<br />

Flight Department<br />

members: Chief<br />

Pilot Mark Thorpe,<br />

Director-Aviation Ivan<br />

Beach and Director-<br />

Maintenance Steve<br />

Cole<br />

MARKET REPORT | April/May 2009<br />

11


MARKET REPORT<br />

Argentine Air Force to<br />

accept two more<br />

<strong>Saab</strong> 340Bs this summer<br />

<strong>Saab</strong> 340B parked in<br />

Comodoro Rivadavia<br />

hangar<br />

<strong>Saab</strong> <strong>Aircraft</strong> <strong>Leasing</strong> (SAL) in cooperation<br />

with <strong>Saab</strong> Aerotech will<br />

deliver the third and fourth <strong>Saab</strong><br />

340B in June and July 2009. The<br />

first two aircraft were delivered<br />

in the fourth quarter of 2008. The<br />

deliveries are a culmination of a<br />

four-year process to select a new<br />

middle-size transport aircraft for<br />

the Argentine Air Force.<br />

The total budget for the aircraft<br />

and logistics support package is<br />

approximately $34 million spread<br />

over five years.<br />

The <strong>Saab</strong> 340Bs will be used to<br />

serve remote areas in the Patagonia<br />

region in southern Argentina,<br />

replacing aging Fokker F27s. The<br />

Argentine Air Force ran an international<br />

RFP process in order to<br />

select the best package of aircraft<br />

and support services. SAL was declared<br />

the winner in late 2007 and<br />

a final agreement was formalized<br />

for four completely overhauled<br />

<strong>Saab</strong> 340B aircraft together with<br />

a complete logistic package of<br />

spares, manuals, tools, ground support<br />

equipment, training of pilots<br />

and mechanics, <strong>Saab</strong> on-location<br />

technical support as well as a Parts<br />

Exchange Program (PEP) on the<br />

rotables including propeller and<br />

landing gear.<br />

All four aircraft will be based and<br />

maintained in Comodoro Rivadavia.<br />

The <strong>Saab</strong> 340Bs will be operated<br />

by the Air Force-managed airline<br />

Lineas Aéreas del Estado (LADE)<br />

serving the Patagonia region. For<br />

this reason all aircraft will have<br />

gravel modification as well as<br />

expanded communication equipment.<br />

They will also meet the latest<br />

civilian requirements on TCAS-2,<br />

TAWS, expanded DFDR and reinforced<br />

cockpit doors.<br />

<strong>Saab</strong> <strong>Aircraft</strong> <strong>Leasing</strong> and <strong>Saab</strong><br />

Aerotech have also secured <strong>Saab</strong><br />

340B contracts from the Swedish<br />

Air Force as well as the Japanese<br />

Coast Guard.<br />

Project teams from<br />

the Argentine Air<br />

Force and <strong>Saab</strong><br />

<strong>Aircraft</strong> <strong>Leasing</strong> pose<br />

in front of the <strong>Saab</strong><br />

340B during a delivery<br />

in Nashville<br />

12 MARKET REPORT | April/May 2009


MARKET REPORT<br />

WESTERN AIR GROWS SAAB 340 FLEET<br />

FOR BAHAMIAN SERVICES<br />

by Kelly Murphy<br />

At press time, Western Air of the Bahamas was anticipating delivery of<br />

its fifth <strong>Saab</strong> 340A for its growing intra-island route network throughout<br />

Nassau, Freeport and the Exumas.<br />

One of its more popular <strong>Saab</strong> 340 routes, Nassau-Freeport offered three<br />

times daily, is boasting a 75-85 percent load factor, President Rex Rolle<br />

tells <strong>Saab</strong> Market Report. Other services include twice daily service to<br />

Congo Town and Andros Town from Nassau.<br />

Western Air <strong>Saab</strong> 340s at Andros Airport<br />

Having launched <strong>Saab</strong> 340 service last year with its first two 33-seaters,<br />

Western Air also operates eight 19-seat Fairchild Metros for scheduled<br />

passenger service, and one 12-seat Fairchild Merlin IV and one 7-seat<br />

Piper Chieftain for corporate or executive charter flights.<br />

Nearly two years ago, Western Air established an on-demand executive<br />

charter division called Vision Air with three 19-seat Beech 1900Cs.<br />

Plans to build a Freeport facility<br />

The 100% Bahamian owned company is based at the San Andros Airport<br />

(MYAN) featuring a new hangar and passenger waiting facility. Rolle has<br />

plans to build a similar facility on three leased acres in Freeport including<br />

a 16,800 square foot hangar and 9,000 square feet of FBO area. Future<br />

destinations include Cap-Haitien, Santo Domingo and Turks and Caicos.<br />

“We have a very good relationship with <strong>Saab</strong>,” Rolle says, adding “the<br />

fuel burn between the <strong>Saab</strong> 340 and the smaller 19-seat Beech 1900C is<br />

almost the same.”<br />

(See related story in <strong>Saab</strong> Market Report, December 2007, page 3)<br />

LOGANAIR uses two of its SAAB 340s<br />

for freight flights<br />

story and photos BY eryl crump<br />

Two of Loganair’s hard-working<br />

<strong>Saab</strong> 340s are carrying out new<br />

tasks for the airline.<br />

Since last December, the Glasgowbased<br />

airline has stationed its two<br />

<strong>Saab</strong> 340As at Aberdeen Airport<br />

after winning a contract to carry<br />

letters and parcels on behalf of<br />

the Royal Mail. Both aircraft have<br />

been adapted to the freight only<br />

role and carry out nightly return<br />

flights from Aberdeen to Edinburgh<br />

and East Midlands Airport.<br />

Loganair, which last year signed a<br />

franchise agreement with leading<br />

UK regional airline Flybe, are operating<br />

the aircraft in their own right<br />

and both carry their logo only.<br />

In early March, a third freight<br />

carrying <strong>Saab</strong> 340 was drafted in<br />

by Loganair after the airline was<br />

awarded another mail contract.<br />

This aircraft is based at Inverness<br />

and operates a triangular flight<br />

each night from the Highland city<br />

to Benbecula and Stornoway in the<br />

Western Isles.<br />

Skyways Aviation has arranged<br />

the ACMI lease of the <strong>Saab</strong> 340A<br />

freighter from Avion Express of<br />

Lithuania. Skyways Aviation has<br />

worked with Loganair for many<br />

years, having previously placed<br />

three aircraft and a GE CT7 engine<br />

with the Scottish airline. Loganair<br />

has also called upon the company<br />

several times since to source<br />

ACMI cover for its short-term<br />

aircraft requirements.<br />

Loganair operates a total of 14<br />

<strong>Saab</strong> 340Bs on scheduled passenger<br />

services.<br />

Loganair’s <strong>Saab</strong> 340A at Glasgow airport (above)<br />

and at Inverness airport (below)<br />

MARKET REPORT | April/May 2009<br />

13


MARKET REPORT<br />

SAAB website redesigned<br />

www.saabaircraftleasing.com<br />

Visit the redesigned<br />

<strong>Saab</strong> <strong>Aircraft</strong><br />

<strong>Leasing</strong> website<br />

featuring the new<br />

<strong>Saab</strong> Group<br />

corporate identity.<br />

MARK YOUR CALENDAR…<br />

<strong>Saab</strong> Booth at RAA<br />

Annual Convention in<br />

Indianapolis May 2008<br />

MAY<br />

May 5-8<br />

May 18-21<br />

SEPTEMBER<br />

September 14-16<br />

OCTOBER<br />

October 1-2<br />

October 7-9<br />

October 20-22<br />

October 26-27<br />

NOVEMBER<br />

November 2-4<br />

November 15-17<br />

RACCA<br />

Scottsdale, AZ<br />

RAA Annual Convention<br />

Salt Lake City, UT<br />

<strong>Saab</strong> 2000 Operators Conference<br />

Linköping, Sweden<br />

RAAA Coolum<br />

QLD, Australia<br />

ERA General Assembly<br />

Interlaken, Switzerland<br />

NBAA Convention<br />

Orlando, FL<br />

US Valuation Conference<br />

Washington, DC<br />

SpeedNews Regional & Corporate Aviation<br />

Conference<br />

Rancho Mirage, CA<br />

ATAC 2009 Annual General Meeting<br />

Quebec City, QC<br />

14 MARKET REPORT | April/May 2009


MARKET REPORT<br />

saab destinations<br />

BY paul bryson<br />

Lynden Pindling International Airport (NAS/MYNN)<br />

A famous quotation reads<br />

‘Desperate times call for<br />

drastic measures’ and in this<br />

desperate day of increasing<br />

financial turmoil that has<br />

touched almost every part of<br />

the globe, our drastic measure<br />

will require a journey into<br />

the beautiful, sun-drenched<br />

islands of the Bahamas. This<br />

SMR Destination will find us at<br />

the Lynden Pindling International<br />

Airport (NAS).<br />

The airport was founded in 1957<br />

and opened its doors at once for<br />

the tourist trade. It wasn’t until<br />

almost 50 years after the airport<br />

was developed, that it was officially<br />

renamed from the Nassau International<br />

Airport to the Lynden<br />

Pindling International Airport.<br />

This move commemorated Sir<br />

Lynden Oscar Pindling, who<br />

served as the first black Premier of<br />

the Colony of the Bahama Islands<br />

(1967-1969). “Sir Lynden”, the first<br />

Prime Minister of the Bahamas<br />

(1969-1992), was instrumental<br />

in attaining The Bahamas their<br />

independence.<br />

NAS is home to numerous<br />

<strong>Saab</strong> operators<br />

The airport is located on the western<br />

side of New Providence Island<br />

and offers flights to many of the 31<br />

districts in the Bahamas. NAS is<br />

home to two <strong>Saab</strong> 340 operators,<br />

Western Air and SkyBahamas, and<br />

it also serves as a cargo destination<br />

for <strong>Saab</strong> 340A cargo operator,<br />

IBC Airways out of Ft. Lauderdale,<br />

FL. Western Air currently operates<br />

two <strong>Saab</strong> 340As with plans to<br />

bring three more on line shortly.<br />

They have scheduled service into<br />

San Andros, Bimini, Exuma, and<br />

Freeport, and they also run charter<br />

flights down to Haiti several times<br />

weekly. SkyBahamas operates<br />

three <strong>Saab</strong> 340As and serves<br />

Exuma, Freeport, Abaco, and<br />

Bimini.<br />

There are two modern, paved runways<br />

available with the longest one<br />

at 11,353 ft. This generous distance<br />

will accommodate large aircraft<br />

including the French carrier, XL<br />

Airways’ 364-seat Airbus 330.<br />

Even though most aircraft services<br />

are available at NAS, don’t expect<br />

to find a large variety of boutiques,<br />

restaurants, duty free shops or<br />

even business/conference facilities<br />

within the terminal walls. These<br />

services, which are found outside<br />

the airport grounds, are a major<br />

contributor to the local economy.<br />

In 2008, an airport expansion<br />

top to bottom:<br />

IBC Airways loading cargo at NAS<br />

SkyBahamas readies for take-off at NAS<br />

Western Air <strong>Saab</strong> 340 parked at Andros<br />

Photo: Kelly Murphy Photo: Paul Aranha<br />

Photo: Kelly Murphy<br />

project was approved and for the<br />

next few years NAS will undergo<br />

changes including 10 jet-bridge<br />

capable gates, four of which will<br />

accept a Boeing 747 sized aircraft<br />

and one that will greet the world’s<br />

largest commercial airliner, the<br />

Airbus 380. Expect to see much of<br />

the new design to incorporate the<br />

local colors and textures of native<br />

Bahamian art.<br />

The Bahamas always has something<br />

new to discover, and in 1492<br />

when Christopher Columbus<br />

journeyed to the New World,<br />

he set foot on the island of San<br />

Salvador in the Bahamas and<br />

remarked “baja mar”. The translation<br />

“shallow water” or “shallow<br />

sea” is another of Columbus’ great<br />

discoveries<br />

MARKET REPORT | April/May 2009<br />

15


MARKET REPORT<br />

OPERATIONAL STATUS<br />

SAAB 340<br />

414 aircraft in service<br />

58 operators in 31 countries<br />

13.4 million flight hours<br />

14.9 million flights<br />

SAAB 2000<br />

58 aircraft in service<br />

14 operators in 10 countries<br />

1.2 million flight hours<br />

1.2 million flights<br />

SAAB 340<br />

SAAB 2000<br />

SAAB 340 & 2000<br />

(as of March 2009)<br />

Operator Country 340 2000<br />

Americas<br />

Operator Country 340 2000 Operator Country 340 2000<br />

Americas<br />

Europe & Africa<br />

AeroMexico Connect Mexico 2<br />

Air Panama Panama 2<br />

Bimini Island Air USA 2<br />

Calm Air Canada 6<br />

Caribair Dominican Rep. 2<br />

Colgan Airways USA 34<br />

Corporate Express Canada 1<br />

Ginn Development USA 2<br />

Hendrick Motorsports USA 3<br />

IBC Airways USA 9<br />

JMJ Flight Services USA 1<br />

Joe Gibbs Racing USA 2<br />

Líneas Aéreas del Estado Argentina 2<br />

Mesaba Airlines USA 49<br />

Murray Aviation USA 1<br />

Napleton Aviation Group USA 1<br />

Pacific Coastal Airlines Canada 8<br />

Pegasus Air Cayman Islands 1<br />

Peninsula Airways USA 10<br />

Prince Edward Air Canada 1<br />

Provincial Airlines Canada 2<br />

Saint-Ex Mexico 3<br />

SkyBahamas Bahamas 3<br />

TAG Guatemala 1<br />

Transwest Air Canada 3<br />

Vigo Jet Mexico 1<br />

Western Air Bahamas 4<br />

Europe & Africa<br />

Air Express Sweden 2<br />

Airfast Congo 1<br />

Avion Express Lithuania 3<br />

Avitrans Nordic Sweden 13<br />

Carpatair Romania 12<br />

Central Connect Airlines Czech Republic 7<br />

CTK Network Aviation Ghana 2<br />

Darwin Airline Switzerland 4<br />

DOT Lithuania 2<br />

Eastern Airways Great Britain 8<br />

Estonian Air Regional Estonia 2<br />

Fleet Air Hungary 2<br />

Golden Air Sweden 4 6<br />

Kenya Airways Kenya 2<br />

Loganair Great Britain 16<br />

Mali Air Express Mali 2<br />

MRK Ukraine 2<br />

NextJet Sweden 4<br />

Norse Air South Africa 3<br />

NRT Gabon 2<br />

OLT Germany 2 3<br />

Overland Airways Nigeria 1<br />

Polet Airlines Russia 6<br />

RAF-AVIA Latvia 2<br />

Robin Hood Aviation Austria 2<br />

Ryjet Spain 1<br />

SkyTaxi Poland 2<br />

Solinair Slovenia 3<br />

South Airlines Ukraine 2<br />

Sprint Air Poland 11<br />

Swedish Air Force Sweden 9<br />

Asia-Pacific<br />

Air Rarotonga Cook Islands 1<br />

Eznis Airways Mongolia 3<br />

Hokkaido Air System Japan 3<br />

Japan Air Commuter Japan 11<br />

Japan Civil Aviation Bureau Japan 2<br />

Japan Coast Guard Japan 4<br />

Pakistan Air Force Pakistan 1<br />

Pel-Air Australia 3<br />

SOL Argentina 4<br />

WWW.SAABGROUP.COM<br />

WWW.SAABAIRCRAFTLEASING.COM<br />

<strong>Saab</strong> <strong>Aircraft</strong> <strong>Leasing</strong>, Inc.<br />

21300 Ridgetop Circle<br />

Sterling, Virginia 20166<br />

USA<br />

Tel: +1 703 406 7200<br />

Fax: +1 703 406 7224<br />

Moldavian Airlines Moldavian Rep 2<br />

<strong>Saab</strong> <strong>Aircraft</strong> <strong>Leasing</strong><br />

Postal address:<br />

Box 7774,<br />

103 96 Stockholm, Sweden<br />

Street address:<br />

Sveavägen 17, 11th Floor<br />

111 57 Stockholm, Sweden<br />

Tel: +46 8 463 1400<br />

Fax: +46 8 463 1409<br />

<strong>Saab</strong> <strong>Aircraft</strong> <strong>Leasing</strong><br />

4-7-13-205 Meguro<br />

Meguro-ku, Tokyo<br />

Japan 153-0063<br />

Tel: +81 3 3792 4300<br />

Fax: +81 3 3792 4315<br />

Regional Express Australia 38<br />

<strong>Saab</strong> Aerotech of<br />

America, LLC<br />

21300 Ridgetop Circle<br />

Sterling, Virginia 20166<br />

USA<br />

Tel: +1 703 406 7200<br />

Fax: +1 703 406 7222<br />

<strong>Saab</strong> Aerotech<br />

SE-581 88 Linköping<br />

Sweden<br />

Tel: +46 13 18 00 00<br />

Fax: +46 13 18 51 15

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