MARKET REPORT - Saab Aircraft Leasing

Issue 26 June 2011MARKET REPORTA PUBLICATION OF SAAB AIRCRAFT LEASINGMESABA’S SAAB 340Bplus’REBRANDED FORUS AIRWAYS EXPRESSSAAB 340 FLIES CARGO INHAWAI‘I AND JAMAICAEMPIRE’S TIM KOMBERECTALKS ABOUT SAABMAINTENANCE WORK

MESSAGE FROMMichael MagnussonFlexibility remains key to SAL’ssuccessHere we are at a new year and a new decadeof regional aviation business. Saab AircraftLeasing concluded last year on a high notewith 30 aircraft transactions including sevenfor Pinnacle Airlines Corp. (a contract for USAirways Express). Total business included 10sales and 20 leases. We conducted businessin various countries: Argentina, Australia,Bahamas, Germany, Mongolia, Sweden, Thailand,the UK and the US. For 2011, we expectactivity to remain high. We began the year withone of the highest-paced deliveries we had ina long time with nine Saab 340Bplus’ delivered in three months.Activity continues as we near the mid-year point with a number of interesting campaignsdeveloping, some in places we have never done business before. This trendagain shows the ever-changing nature of our business and its customers. SAL hopesto announce agreements later in the year.World events affecting the industryAt the same time, we are also reminded once again of how vulnerable our business isto political and other events in the world. Obviously developments in the Middle Eastand North Africa are creating uncertainty that has pushed oil prices to $110/barrelwhich in turn have already caused some of the major US airlines to cut back activity for2011. We have seen the tragic events in Japan unfold which forced us to relocate ourTokyo office to Bangkok until things stabilized. Political and financial pressures in someEuropean countries are affecting the value of the Euro, and in the US, we watched anintense budget debate play out on Capitol Hill that put pressure on the dollar. Fortunately,unemployment is dropping and consumer spending is on an uptick, both ofwhich are vitally important for the recovery of the US economy.As we look at the higher fuel prices, less travel demand and the fluctuating exchangerates that have all affected our dollar-based business, it’s easy to see how unpredictableand challenging the airline business can be. I don’t envy airline managers tryingto predict 2011 or even 2012. Flexibility is the key word.Of course this can be good for us at SAL, since our business is previously operated,fuel-efficient turboprops. It is no secret that used aircraft can be a low-risk option inuncertain times when fuel efficiency is more important than ever. Even though thereare challenges, we can see that our largest customers, Rex and Pinnacle, are doingquite well and adapting to the market realities. Their large fleets of Saab 340s arepart of that flexibility.On the Saab 2000, we see how our long-time customers such as Eastern, Golden andOLT are using the aircraft both on scheduled services, as well as meeting a wide varietyof charter opportunities. All three operators are also using the aircraft to fly on behalf ofoutside contractors, whether its airlines, Airbus or oil companies.We just attended the “spring” ERA meeting in Malta, where we caught up with manyof our European operators. In the US, we attended the 36th Annual RAA Conventionin Nashville mid-May. In what is becoming an annual routine, we were able to meetmany customers and catch up in a relaxed atmosphere. We will also exhibit the Saab2000 at the Paris Air Show. This follows a very successful exhibition at “Aero India” inFebruary with both the Saab 340B and Saab 2000.In closing, you can see that SAL’s flexibility enables us to lay the groundwork for asolid 2011.CONTENTSSaab re-delivers seven Saab 340Bplus’ innew US Airways Express livery. ...............................................3Pinnacle spreads its wings as long-timeSaab 340 operator. ............................................................. 4-5Saab Profi le: Phil Trenary .......................................................5Pulling a Saab 340 in aid of the RNLI ......................................6Calm Air moves Saab 340s to Bearskin Airlines ......................7SkyBahamas Airlines upgrades to a Saab 340B .....................7Empire Aerospace adds the Saab 340to its maintenance portfolio ................................................. 8-9Saab Profi le: Tim Komberec of Empire ..................................9Aloha Air Cargo features Saab 340 Hawaiian-style ...............10Nok Mini marks new routes in Thailand .................................11Exec Direct fi lls cargo niche from Jamaica hub .....................12Vincent Aviation upgrades fl eet with two Saab 340Bs ...........13Saab Destination:Syracuse, New York .............................................................14Support Centers offer Saab operators worldwide service ......15Saab Supplier:Geven seats introduce new level of comfort ..........................16SAL announces much improved activity for 2010 .................17Saab at Aero India 2011 .......................................................18Saab 2000 operators to meet for 2011 conference. .............19Mark your calendar ...............................................................19Saab operators map... ....................................................................... 20Cover photo: Paul BrysonSaab Aircraft Leasing has quicklydelivered seven Saab 340plus’back to Mesaba, which are now inUS Airways Express livery. Havinga hand in this refurb job was TimKomberec’s Empire Aerospace ofCoeur d’Alene, Idaho (in featuredcircle).Market Report is published bySaab Aircraft LeasingEditor: Kelly MurphyEmerald Mediakelly@emeraldmediaus.comEurope: Alison ChambersEmerald Mediaalison@emeraldmedia.co.ukDesign and Layout:Aeris Graphic Designjennifer@aerisgraphicdesign.comMichael MagnussonPresident and CEO, Saab Aircraft LeasingPrinted in USA June 2011©2011 Saab Aircraft

MARKET REPORTSAAB RE-DELIVERS SEVENSAAB 340Bplus’ IN NEWUS AIRWAYS EXPRESSLIVERYWHILE IT’S NOT EXACTLY RARE FOR ANAIRLINE TO LEASE AN AIRCRAFT THEYHAD PREVIOUSLY RETURNED, SAABRECENTLY SEALED A UNIQUE DEAL TORE-DELIVER SEVEN FORMER MESABASAAB 340Bplus AIRCRAFT BACK TOMESABA – BUT THIS TIME IN US AIRWAYSEXPRESS LIVERY. ORIGINALLY THESAAB 340Bplus LEASES WERE HELD BYNORTHWEST AIRLINES, THEN BY DELTAAFTER THE CARRIERS MERGED, ANDDURING THE OVERALL PROCESS, MESABAWAS ACQUIRED BY PINNACLE AIRLINESCORP. IN JULY 2010.With US Airways launching expanded serviceat New York’s LaGuardia airport on April 1,Saab organized a fast-paced delivery of theaircraft to Mesaba with five in February and theremaining two in March.Pinnacle and Mesaba defined a workscopepackage of maintenance tasks to be completedon the aircraft before they were scheduled fordelivery. Three separate Maintenance, Repairand Overhaul Centers (MROs) undertook thework including Embraer Aircraft MaintenanceServices in Nashville, TN, C & L Aerospace inBangor, ME and Empire Aerospace in Coeurd’Alene, ID. A Saab representative stationed ateach of these facilities oversaw and monitoredthe workscope completion.All aircraft feature fresh paint in US AirwaysExpress livery, with either new, or deep-cleanedinteriors, and include newly painted sidewallsand new carpet. The livery work was handledby Embraer Aircraft Maintenance Service’spaint shop and Allied Painters in Everett, WA.MARKET REPORT | June 20113

MARKET REPORTPINNACLE SPREADSITS WINGS AS LONG-TIMESAAB 340 OPERATOR“I’ve been areal believerin turbopropaircraft for along time. Itdoes a job noother aircraftcan do.”Phil TrenaryIN JUNE 2007, SAABFEATURED PHIL TRENARYAND MIKE COLGAN ON THECOVER OF MARKET REPORTGIVING READERS AN INSIGHTON HOW TWO LONG-TIMESAAB 340 OPERATORS FOUNDCREATIVE AND STRATEGICSOLUTIONS TO GROW THEIRAIRLINES WITH PINNACLE’SACQUISITION OF COLGAN.Fast-forward four years, Pinnaclenow operates feeder service forDelta, United/Continental andUS Airways through its Colganand Mesaba subsidiaries with afleet of Saab 340s and the largerBombardier Q400s.With over 7,700 employees anda combined fleet of 202 regionaljets and 79 turboprops, Pinnacleis now the largest Saab 340 operatorworldwide and will fly theturboprop in numerous majorcarrier liveries.Adding Colgan and Mesaba tothe Pinnacle family has allowedthe company to reach its endgoal: two strong operators withone flying turboprops and theother regional jets. “I’ve beena real believer in turbopropaircraft for a long time. It doesa job no other aircraft can do,”outgoing President and CEO PhilTrenary shares with SMR.Marriage made in heavenWith two aircraft turbopropmodels in his fleet—the largerQ400 and the Saab 340, Trenary sawthe “marriage made in heaven”when the company purchasedtwo long-time Saab operators—Colgan in 2007 and Mesaba inJuly 2010. Pinnacle now operatesa total of 59 Saab 340s.“We’ve had a long-term relationshipwith Saab, and they havebeen good partners and friends.We look forward to continuingthat relationship,” says Trenary,underlining that the Saab 340 isan economical and fuel-efficientturboprop with one of the strongestsupport service programs inplace, even though the aircraft isno longer being manufactured.Having recently completed apilot agreement with all threecarriers, the next step is to physicallymove the headquarters ofthe three carriers and its threecultures to one location. DowntownMemphis was selected,4 MARKET REPORT | June 2011

MARKET REPORTSAABPROFILE:Phil Trenaryand by the end of 2011 PinnacleAirlines Corp. will literally beintegrated as an airline with thecity at this location.“We’re taking the best of the bestand moving to a common culturewhich is Pinnacle Airlines Corp.That’s very difficult to do whenyou are spread apart. The newhigh quality work location is avertical structure where all theemployees are brought togethernaturally, and employees canwalk to 40 different restaurantsand work in a common area,”shares Trenary. The move todowntown Memphis will beginin September and be completedby yearend.PHIL TRENARY’S PASSION FOR AVIATION BEGAN WHEN HE WAS 15-YEARS-OLD GROWING UPIN OKLAHOMA. HE DREAMED ABOUT BEING AN AIRCRAFT MECHANIC BECAUSE “WORKING ONAIRPLANES WAS BETTER THAN WORKING ON TRACTORS.” HIS UNCLE, WHO OWNED A 1946TAYLORCRAFT IN DISREPAIR, SAID “IF YOU CAN PUT IT BACK TOGETHER, YOU CAN KEEP ITAND LEARN HOW TO FLY.” AND SO THE YOUNG TRENARY DID JUST THAT AND OBTAINED HISPILOT’S LICENSE. “THAT’S WHEN I REALLY FELL IN LOVE WITH BEING IN THE AIR AND THEFLYING PART OF IT.”His first memorable job was asa flight instructor at OklahomaState where Trenary eventuallybecame the department head.He moved on to become a pilotfor Petroleum where he flewinternational and domestic operationsfor the major companyand then became involvedin their leasing, charter andFBO business in the late 1970s.His first airline job started in1984 in Stillwater, Oklahomawhen Trenary founded ExecExpress Inc. which later movedto Fort Worth, Texas and becameLone Star Airlines.At press time, Trenary announcedhe would be leavingPinnacle on March 24, 2011,“to pursue other interests.” Heshared with SMR the move hasbeen discussed with the boardover time but “something wasalways hanging out there thatwas incomplete.” Now at theend of the 2011 first quarter,Trenary notes that everythingis stable – it is the year of theintegration transition, the SMSsafety program is complete,the labor agreements havebeen done, and the transitionplan is in place. “It marries upperfectly. The plan is in placeand ready for new businesscoming in. It’s a good time fora new person to come in, gettheir feet on the ground, andreally get to know the airlinesand be ready to compete.”Saab Market Report asked thelong-time Saab 340 operatora few questions before hedeparted.What inspires you?Seeing the difference aviationmakes in people, if it’s inyour blood you’ll continue topursue it. It requires a lot ofresponsibility and work to pursuea career in this industry,but you are part of a system,an incredible fraternity thatpeople are passionate aboutwhether they are flying theaircraft or moving bags. I feelfortunate to be a part of thisfraternity and see the impact ithas on people.What is the most importanttrait needed to succeed?Believing in what you aredoing and believing in yourpeople…that is the rule ofcommitment. My favorite sayingis Winston Churchill’s “…never, never give up.”What is your biggestchallenge?I think it’s been the laborissues of pilots. I have such admirationfor pilots, and I wasvery disappointed that it tookso long to get this last contractfinalized. While it turned outwell, I was very frustrated thatthe process didn’t go faster andwith fewer bumps in the road.What is the best career adviceyou ever received?My greatest mentors havebeen my parents. They gaveme two completely differentwork perspectives. My mothertaught me how to treat people,and my father taught me topush, push – don’t waste yourlife in a job you are not happywith. I’ve been doing this forover 30 years, and all thattime I’ve never not hoppedout of bed looking forward togo to work…even with all thechallenges.MARKET REPORT | June 20115

MARKET REPORTPhoto: RNLI/Richard SmithPULLING A SAAB 340 INAID OF THE RNLILOGANAIR DONATED ITS SAAB340 OPERATING ON BEHALF OFFLYBE FOR A FUND-RAISINGEVENT IN EASTERN SCOTLANDAT DUNDEE AIRPORT DURINGTHE FOURTH QUARTER 2010.A LIFEBOAT CREW FROMBROUGHTY FERRY, NEARDUNDEE, PROVED THEYHAD PULLING POWER WHENTHEY SWAPPED THEIR ALL-WEATHER LIFEBOAT FOR APLANE AT DUNDEE AIRPORT.Local newspaper reporter GrantSmith of The Courier reported15 men used their strength tohaul the 13-ton Saab 340 alongthe taxiway. The plane pull lastedabout three minutes with the Saab340 traveling 541 ft/165 m. Theirefforts raised about USD$3300/£2000 for the Royal NationalLifeboat Institution (RNLI) whichrelies entirely on public donationsto run its life-saving service.The RNLI has saved more than139,000 lives since its foundationin 1824. Through the years, therehave been countless stories ofcourage against a background oftechnological developments andsocial change. The Broughty crewis the busiest in Scotland with 103launches last year.6 MARKET REPORT | June 2011

MARKET REPORTCALM AIR MOVES SAAB 340sTO BEARSKIN AIRLINESLong-time Saab 340 Canadian operatorCalm Air wet-leased a Saab340 to Bearskin Airlines expandingBearskin’s northern Ontarioservice to include Montreal.On May 1, Bearskin launchedservice between Waterloo InternationalAirport and MontrealTrudeau International Airportoffering five daily roundtrip flights.The 34-seater will also be used forservice between Winnipeg, RedLake, Sioux Lookout and ThunderBay. Bearskin Airlines has provideda direct link between Ottawaand Northern Ontario since 1993.Also operating the smaller 19-seatMetro, Bearskin will use the Saab340 on routes needing increasedcapacity. A second Saab 340 will beadded in September 2011.“We’re excited to be moving intothe next chapter for BearskinAirlines,” says Bearskin PresidentHarvey Friesen. “The Saab 340offers enhanced comfort for manyloyal customers who have supportedour (northwestern) Ontariocompany since 1963.”Named after Canada’s Bearskin LakeFounded in 1963, Bearskin Airlines is one of Canada’s oldest regionalairlines offering more than 100 scheduled daily flights to 17 destinationsfrom Winnipeg in the west to Ottawa in the east. The WaterlooRegion is the southernmost destination served. Named after theNorthern Ontario community of Bearskin Lake, the airline is owned byExchange Income Corporation (EIC) of Winnipeg. EIC also owns PerimeterAviation, Keewatin Air and Calm Air.SkyBahamas Airlines launched service to its first Floridadestination on March 25 to Fort Lauderdale Executive.The Nassau-based regional upgraded one of its three Saab340As to the Saab 340B model. The airline operates regularflights into Exuma and has expanded its routes to Freeport,Grand Bahama; Bimini; Marsh Harbour, Abaco; New Bight andArthur’s Town, Cat Island and its latest addition, Providenciales,Turks & Caicos.MARKET REPORT | June 20117

MARKET REPORTEMPIRE AEROSPACEADDS THE SAAB 340TO ITS MAINTENANCEPORTFOLIOOFFERING ALL KINDS OF SAAB 340 SUPPORT SERVICES IS A KEY COMPONENT IN THESUCCESS OF BUILDING AN EVER-EXPANDING WORLDWIDE SAAB 340 CUSTOMER LIST. ANINTEGRAL SERVICE IS MAINTENANCE COMPLETED BY A NUMBER OF ESTABLISHED FACILITIESACROSS THE GLOBE. (SEE PAGE 15 FOR A MAP OF SAAB EXPERIENCED SUPPORT CENTERS)IN THIS ISSUE OF SMR, WE WILL FEATURE THE US LOCATIONS AND ONE OF THE NEWESTMAINTENANCE PROVIDERS: EMPIRE AEROSPACE.Based at Coeur d’Alene Airportin northern Idaho, Empire Aerospaceis a new provider of Saab340 heavy checks and maintenancework. Known for its turbopropwork, Empire also servicesthe ATR 42/72 and BombardierDash 8 series for maintenanceand modification.Empire is a Part 145 Repair Stationattached to a Part 121 aircarrier, Empire Airlines, and assuch is structured to meet theaggressive schedules of regionaloperations.“We’ve invested in significanttooling and training for theSaab 340, and we’re pleasedthat the company saw the needto add another vendor to provideSaab 340 maintenance,”Empire CEO Tim Komberectells SMR.“Saab has a tremendous re-marketingprogram, and prides itselfthat their aircraft are deliveredbetter than brand new. We havea similar philosophy at Empireand want airplanes to leave herebetter than when they get here,”shares Komberec.Other US locations for SaabMaintenanceIn the Northeast, C&L AviationServices of Bangor, Maine,8MARKET REPORT | June 2011

MARKET REPORTSAABPROFILE:Tim KomberecEMPIRE CEOcontinues to be a large supplierof parts for both the Saab 340aircraft and its GE CT7 powerplant.The company was previouslyknown as Telford AviationServices but was acquired byBrisbane, Australia-based partscompany C&L Aerospace Group.Embraer Aircraft MaintenanceServices’ (EAMS) facility in Nashville,Tennessee houses numerousSaab aircraft jobs. With more than300 employees on-site, it remainsthe facility with the longeststandingrelationship with Saabheavy maintenance work. Locatedon the Nashville airport property,EAMS offers various servicesincluding component and paintservices.SAAB 340s RECEIVEMAINTENANCE WORK ATVARIOUS US FACILITIES.(TOP TO BOTTOM), EAMSIN NASHVILLE, TN; C&LAEROSPACE GROUP INBANGOR, ME; AND EMPIREAEROSPACE IN COEURD’ALENE, ID“We can do that!” is the company motto emblazoned on EmpireAerospace’s marketing materials as well as the guiding force for itsmore than 300 employees. Its CEO, Tim Komberec, has drawn fromhis extensive aviation background to lead the company’s growthover the past 10 years. Empire started as a FedEx Feeder Operator in1988 operating Cessna 208 aircraft. In 1989, FedEx added the FokkerF27 to its fleet, and in 2004, the F27 was phased out and replacedby ATRs. With a new facility available at the Coeur d’Alene Airportin northern Idaho, Empire Aerospace was born to fill a niche in theMRO market to provide a high level of service to turboprop customers.“Because we had years of expertise flying turboprops, we knewwe could offer excellent nose-to-tail service,” notes Komberec.A longtime aviator, Komberec used his GI bill when he got out ofthe US Army in 1970 to learn how to fly and to obtain his ratings.His first commercial airline pilot job was for Cascade Airways flyingBeech 1900s. After the airline shut its doors in 1984, he worked theoperations side with both Big Sky Airlines in Billings, Montana thena new startup airline called NPA, a United Express Jetstream operator.He then joined Empire as Director-Operations in 1993, but after18 months left to join another startup carrier called Western PacificAirways in Colorado Springs, Colorado. He was later enticed to returnto Empire “which had a good financial and customer base, yetwas relatively small with unique opportunities. I agreed and neverlooked back.”While Komberec acknowledges there has been some tough economictimes “we’ve continued to foster those quality customerrelationships and made our own economic reality.”MARKET REPORT | June 20119

MARKET REPORTALOHA AIR CARGOFEATURES SAAB 340HAWAIIAN-STYLEIN THE HAWAIIAN LANGUAGE,THE WORD “ALOHA” TAKESON MANY DIFFERENTMEANINGS. AFFECTION,LOVE, PEACE, COMPASSIONAND MERCY ARE A FEW OFTHE COMMON MEANINGS,BUT THE MOST POPULARUSE OF “ALOHA” THESEDAYS IS THAT OF A SIMPLEGREETING, “HELLO”.WE WOULD LIKE TO SAY“ALOHA” TO THE NEWESTMEMBER OF THE SAABFAMILY, ALOHA AIR CARGO.THEIR SAAB 340A CARGOSERVICE OUT OF HONOLULUCOMMENCES IN JUNE 2011.Aloha Air Cargo (AAC) capturesquite a few firsts within the Saabfamily. Not only will this be thefirst Saab 340A Cargo service inHawai‘i, this operation will alsoserve as the first Saab 340 operationon the Hawaiian Islands. Eventhough the Saab has seen the sunriseover the Koolau Mountainsmany times while parked on theramp at Honolulu InternationalAirport en route to Asia and thePacific Rim, this will be the firsttime that the aircraft will call theever-growing collection of islands“Home” or “Kauhale”.AAC’s lineage dates back manyyears as a business unit of thenow defunct Aloha Airlines. Formore than 60 years, Aloha Airlinesprovided service within Hawai‘iand to the US mainland. Duringthe first quarter of 2008, AlohaAirlines was one of the manybusinesses that fell prey to recordsetting fuel prices and aggressivecompetition. Even though thepassenger airline’s doors closedforever, a Seattle-based conglomerateof transportation, energy andreal estate companies, SaltchukResources, saw the cargo businessunit as a meaningful service to theIslands, and purchased AAC.Saab 340 to build Alohasame day serviceAccording to Michael Orozco,AAC’s Marketing Manager, theSaab 340A Cargo will be used tobuild its customer base for thecurrent Aloha Same Day serviceoffering. As demand increases forAloha Same Day, the Saab willsupplement the existing servicewith better frequency and evenadditional destinations includingLihue (currently only offeredwith overnight service), Lanai andMolokai. The latter two destinationsare smaller airports, whichwill be only accessible to the Saab.Along with the Saab 340A Cargoaircraft, AAC’s fleet consists offour Boeing 737-200 freightersthat were originally Quick Change(QC) aircraft, but have been fullyconverted to the freighter version.This mixed fleet of large andsmall aircraft will provide AAC’scustomers with flexibility for theirvarying shipping needs.AAC also provides maintenanceand engineering services to airlinesin the State of Hawai‘i through itsAloha Tech Ops division.For more information about AlohaAir Cargo please visit their websiteat www.alohaaircargo.com.10MARKET REPORT | June 2011

MARKET REPORTNOK MINI MARKS NEWROUTES IN THAILANDWITH SPECIAL BLESSINGNok is the name of a colorful, small Thai bird,hence the colorful paint schemes emblazonedon Nok Mini’s Saab 340Bplus’.Operating two Saab 340Bplus’ from its mainbase at Bangkok’s downtown Donmuang Airport,Nok Mini recently increased its networkwith a regional hub at Chiang Mai, Thailand’ssecond largest city. Further expansion planscall for the airline’s remaining Cessna Caravansto be replaced with additional Saab 340sin the not too distant future.Nok Mini is a privately owned airline andoperates as a code-share partner to Nok Airlines,Thailand’s leading low cost carrier.Nok Mini CEO Dr. Jain Charnnarong notes,“we selected the Saab 340Bplus for its passengerappeal, low operating cost and low fuelconsumption, and it will allow Nok Mini tobe successful in the very competitive aviationmarket in Thailand.”PaiMaeHong SonChiangMaiMae SotChiang RaiNanPhraeBangkokSaab 340C208Udon ThaniSakon NakhonKhon KaenRoi EtT H A I L A N DThe Royal Thai Air Force also operates theSaab 340Bplus in AWACS and staff transportversions.A THAI TRADITION IS TO HAVE ABUDDHIST MONK BLESS A NEWAIRCRAFT BEFORE ITS FIRSTFLIGHTNOK MINI ROUTESMARKET REPORT | June 201111

MARKET REPORTEXEC DIRECT FILLSCARGO NICHE FROMJAMAICA HUBA NEW JAMAICAN-BASED AIRCARGO OPERATOR, EXECDIRECT AVIATION SERVICES,WAS PREPARING TO LAUNCHITS OPERATION AT PRESSTIME. BASED IN KINGSTON,THE STARTUP CARRIER WILLBEGIN CARGO OPERATIONSWITH SERVICE TO CURACAO.FOUNDER AND PROGRAMMANAGER KAMAL CLARKESAYS HE HAS FUTURE PLANSTO ADD FT. LAUDERDALE,CAYMAN, HAITI, BAHAMAS,TURKS & CAICOS, DR ANDOTHER DESTINATIONSTHROUGHOUT LATIN AMERICA.With an Aviation Managementdegree from Florida Institute ofTechnology, he began his aviationcareer a dozen years ago. Clarketells Saab Market Report that whenhe was a pilot flying Beech 1900sfor regional airline TCI SkyKing,he recognized an opportunity fora regional cargo operator. In 2007,he left the airline to pursue hisdream.With “Designed to Deliver” as thecompany motto, Clarke foundedExec Direct Aviation and selectedthe Saab 340 as his aircraft ofchoice because “it has bettercustomer support, and 15%-20%more volume capacity than itsprimary competitor the Embraer120.” With the goal to establishboth scheduled and non-scheduledkey regional air cargo marketsfrom the Kingston, Jamaica hub,Clarke recognizes that Amerijet,based in Miami with its largerBoeing 727s and 767s, is ExecDirect’s primary competitor.“We would love to see four tosix Saabs in our fleet in the nearfuture,” Clarke shares.12 MARKET REPORT | June 2011

MARKET REPORTPHOTO: ROB NEIL/PACIFIC WINGS MAGAZINEVINCENT AVIATION UPGRADESFLEET WITH TWO SAAB 340BsPassionate about aircraft and with a background in both airline managementand flying, Peter Vincent established Vincent Aviation in NewZealand launching operations in 1992. With bases in Wellington, NewZealand and Darwin, Australia, his company has become well-known forits resource industry charters and Aircraft, Crew, Maintenance and Insurance(ACMI) operations.Vincent Aviation recently added two Saab 340Bs to its fleet to replacesmaller, 19-seat Beech 1900s with aircraft provided for ACMI operationsto Timor Air, an operating unit of Vincent Aviation. The new nationalcarrier for the Democratic Republic of Timor-Leste (East Timor) willprovide connections to Darwin and Dili starting May 20, the IndependenceDay for Timor.The second Saab 340B will be deployed on mining charter contracts inAustralia’s northern territories.The aircraft are the first to display Vincent Aviation’s distinct new liverywhich will also be painted on the other 12 aircraft in the combined Australianand New Zealand fleet in the near future.“The Saab 340B has allowed us to extend our network with the longestroute now flying 3.5 hours,” says Vincent, adding “we have had a long,successful history as a specialist charter operator and the Saab 340B hasalready proven to be a great performer on the challenging Australianoutback routes.”Flying Services VincentAviation offers:• Passenger Air Charter Services• Scheduled Passenger Services• Dedicated Contracted AirTransport Capability• Medivac Air Capability• Priority VIP Aircraft Charter• Specialized Freight Air Charter• Maritime and Terrestrial Rescueand Aerial Surveillance• Supply Dropping• Airline Training Services• Confidential Air Support(Military/Police/PrisonerTransfer)• Aircraft Maintenance andAircraft ManagementPALM TREE PARADISE:VINCENT AVIATION’SHANGAR AT ITS DARWIN BASEEAST TIMOR IS THEEASTERN PART OF THEISLAND OF TIMOR, WHICHLIES BETWEEN THE SOUTHCHINA SEA AND THE INDIANOCEAN. IT IS AN ISLAND IN THEINDONESIAN ARCHIPELAGO,LOCATED ABOUT 400 MILESNORTHWEST OF AUSTRALIAe saDiliTimorEast TimorDarwinAustraliaMARKET REPORT | June 201113

MARKET REPORTSAAB DESTINATIONBY PAUL BRYSONSyracuse, New York - USA(IATA: SYR ICAO: KSYR)In 1927, the Mayor and a former World War I flyer, Charles Hanna, believedthat in order for the Syracuse, New York area to develop economically,it would require aid from its own airport, one that did not existyet. The land required for the airfield, soon to be known as SyracuseCity Airport at Amboy, was quickly secured for $50,000. By 1928, thefirst boost to the Syracuse area’s developing business environment cameby the way of Ford Tri-motors and the US Airmail services.The next few years brought many a spectator, as well as many aviationcelebrities to the recently christened SYR. Among these nameswere Charles A. Lindbergh, Amelia Earhart and Wiley Post. Barnstormingand aviation shows were major events as well as significantsources of income.As was common with most every business in the United States at theoutbreak of WW II, things changed quickly at SYR. The field wastransformed into a flight training center and a B-17/B-24 bomberbase with many major improvements authorized, including fiverunways. At the end of WW II, the City of Syracuse took the facilitiesback and in 1949, SYR opened to the public. A few years laterthe field was given its current name in honor of the area’s Congressman,Clarence E. Hancock. Today, the airport offers two asphaltrunways one of which is 7500 ft/2290 m in length and the other at9003 ft/2740 m.Currently, Pinnacle Holding’s, Colgan Airways and Mesaba Airlinesboth offer scheduled service into SYR. Colgan flies the Saab 340Bsthat average 19 flights weekly from SYR to Boston’s Logan Airport,and Mesaba enlists its Saab 340Bplus’ 26 times per week to New York’sLa Guardia airport.The Syracuse area is well-known for its heavy snowfalls, and the areareceives about 115 in/290 cm of snow annually. Because an enormousamount of emphasis at SYR is placed on training and proper snowremoval equipment, the airport is rarely closed for more than a total of24 hours annually due to snowfalls. In fact, SYR is so serious about itscontinual operations, that they house the world’s largest snowplow whichis 32 ft/10 m wide.PHOTOS: JEFF HOPSON14 MARKET REPORT | June 2011

SUPPORT CENTERS OFFER SAABOPERATORS WORLDWIDE SERVICEMARKET REPORTEUROPESaab Support & ServicesLinköping, Swedenwww.saabgroup.comTAMÖrebro, Swedenwww.tam.seASIA-PACIFIC AREAWorland AviationTownville, Australiawww.worlandaviation.com.auSTAECOJinan, Peoples Republic of Chinawww.staeco.comAurignyGuernsey, Channel Islandswww.aurigny.comAMERICASEmbraer Aircraft Maintenance ServicesNashville, TNwww.embraer.comC&LBangor, MEwww.claerospace.comDiscovery AirQuebec City, Canadawww.discoveryair.comEmpire AerospaceHayden, IDwww.empireaerospace.comSaab Support & ServicesSterling, VAwww.saabgroup.comWorldwide Aircraft ServicesSpringfield, MOAFRICAExecuJet Aviation GroupLanseria, South Africawww.execujet.netMARKET REPORT | June 201115

MARKET REPORTSAAB SUPPLIER:GEVEN SEATS INTRODUCE NEW LEVEL OF COMFORTGEVEN SEATFEATURESOne of the many positive results associated with the biennial Saab 340Operators’ Conference is the interaction that Saab has with its worldwideoperators. Customers use this forum to express concerns, comments andeven frustrations of either their single or multiple Saab 340 fleet.During the 2008 conference, operators were keen on Saab identifyingcost-effective solutions that would improve ATA 25-20 reliability (PassengerCompartment). At the time, it was determined that most dispatchreliability reports were caused by passenger seats and overhead bincomponent failure. Today, Saab is pleased to report an improving trendwith ATA-25-28-00, stowage, while a stabilizing trend develops for thepassenger seats.As a result of these meetings, Saab has together with Geven, an aircraftinterior company, decided to look into the possibility to introduce newpassengers seats for the Saab 340 and Saab 2000. Based in Naples, Italy,Geven has been in the aviation industry for 30 years and uses theirknowledge, experience and cutting edge technology to maintain a highlevel of customer support and satisfaction. While the 2010 Saab 340Operators’ Conference was in full swing, Geven and Saab unveiled aproposed design on new, modern seats.These possible enhancements to the Saab aircraft cabin boast very fewparts, as compared to the current products available to the Saab 340 andSaab 2000, and would increase dispatch reliability and reduce directmaintenance costs. Additionally, the seats are anticipated to be around10-15% lighter than the typical seat found in the Saab family of turboprops.This weight saving can quickly be translated into additionalpayload and/or fuel which can increase revenues and enhance marketcatchment areas. Finally, an ancillary product of the redesigned seatbacks, includes extra legroom creating a new level of passenger comfort.For more information on these seats, please contactIn the US:George Caracost at george.caracost@saabgroup.com or +1 703 406 7304Rest of the world:Per Skogsberg at per.skogsberg@saabgroup.com or +46 13 183928Or email: sales.rass@saabgroup.comDESIGN• New, stylish appearance withgroove shape• Increased passenger comfortby improved cushions foamsand special backrest shape• Reduced weight• High-strength aluminum alloyprimary structure• Structure and mechanismsvalidated by dynamic, static,cyclic and abuse testing• Reduced number of parts byusing same elements in bothsingle and double seats• Simplified design for easymaintenance and inspection• Anti-corrosion surfacetreatment• Avoidance of special tools formaintenance proceduresSTANDARD FEATURES• Leather or fabric covers• Fire blocking polyurethanefoams• Rear trays• Injection molded arm caps• Aisle bumper strips• Literature pockets• Life vest pockets• Anti-rattle seat tracks fittings• Handicapped aisle armrestOPTIONAL FEATURES• Vacuum formed polycarbonateback shroud• Mechanically controlledrecline• Foldable central armrest• Backrest featuring break-over• Retractable coat-hook• Cup-holder on backrest• Handicapped aisle armrest• Antimacassar and Velcro strip• A rear table with 2" slide• Seat belts• Life vest• Ashtrays16 MARKET REPORT | June 2011

MARKET REPORTSAL ANNOUNCES MUCHIMPROVED ACTIVITY FOR 2010Saab Aircraft Leasing (SAL) completed a total of 30 new aircraft transactions in 2010, nearly doublethe amount recorded in 2009.In total, SAL recorded 30 transactions, including 10 sales, 18 leases (either new or extensions), andtwo third-party placements. Some 23 were Saab 340 transactions, which comprises the largest shareof SAL’s portfolio. The Saab 340 transactions included 10 sales, two extensions and 11 new leases. Ofthe seven Saab 2000 transactions, SAL recorded six lease extensions as well as one new lease.SAL completed the following transactions in 2010:Eznis (Mongolia)Eastern (Great Britain)purchased one Saab 340Bplusextended leases on four Saab 2000sGolden Air (Sweden) leased an additional Saab 2000Loganair (Great Britain)Nok Mini (Thailand)OLT (Germany)PenAir (USA)Pinnacle (USA)Regional Express (Australia)SkyBahamas (Bahamas)Outside investorextended leases on two Saab 340Bsleased two Saab 340Bplus’extended leases on two Saab 2000spurchased one Saab 340A for cargo conversionagreed to lease seven Saab 340Bplus for US Airways Expressoperationsto purchase four Saab 340Bs and one Saab 340Bplus atlease terminationpurchased one Saab 340Apurchased two Saab 340BsIn addition, SAL remarketed two Saab 340As on behalf of AeroCentury to SOL (Argentina)“A developing trend continued in 2010 showing resurgence in the turboprop market as both regionaland major airlines adjusted their fleet planning,” notes Michael Magnusson, President and CEO,Saab Aircraft Leasing. He underlines, “as larger legacy airlines are withdrawing from many regionalmarkets, this void can be aptly filled by many of our operators flying the Saab 340 today. For example,Pinnacle has leased seven Saab 340Bplus aircraft for its US Airways Express operation.”Saab Aircraft Leasing manages a portfolio of 110 Saab 340 and Saab 2000 aircraft which are leasedto 15 airlines around the world. With 25 employees, its head-office is located outside of Washington,DC with regional offices in Stockholm, Sweden, Tokyo, Japan and Nairobi, Kenya.SOME OF SAL’S 2010 TRANSACTIONSINCLUDED: EZNIS OF MONGOLIAPURCHASING ONE SAAB 340BplusBRINGING ITS TOTAL TO FOUR; SAAB2000 ACTIVITY LAST YEAR INCLUDEDLEASE EXTENSIONS FROM EUROPEANOPERATORS: EASTERN AND OLT;AUSTRALIAN OPERATOR REGIONALEXPRESS PURCHASED FOUR SAAB 340BsAND ONE SAAB 340BplusMARKET REPORT | June 201117

MARKET REPORTAERO INDIA 2011SAAB ATTENDED THEEIGHTH EDITION OF THISBIENNIAL EVENT FEBRUARY9-13 IN BENGALURU, INDIAFEATURING DISPLAYS OFTHE WORLD’S LEADINGAEROSPACE COMPANIES.ALONGSIDE THE SAABGRIPEN DISPLAY, THE SAAB340 AND SAAB 2000 DEBUTEDAT AERO INDIA. THE SAAB2000 IS A CANDIDATE FORTHE INDIAN NAVY’S REQUESTFOR INFORMATION (RFI) FORMEDIUM RANGE MARITIMERECONNAISSANCE (MRMR)AIRCRAFT. THE 30+ SEATSAAB 340 WAS VIEWED BYTHE INDIAN COAST GUARDIN ASSOCIATION WITH THEINDIAN COMPANY,PUNJ LLOYD18 MARKET REPORT | June 2011

MARKET REPORTSAAB 2000OPERATORS TOMEET FOR2011CONFERENCEJune 7–9Linköping, SwedenSaab 2000 vendors, suppliers, associatesand operators will gather in the heartof Linköping for this biennialevent with this year’stheme: safety.DOT SECRETARY RAY LAHOOD (L) TALKS TO SAL PRESIDENTMICHAEL MAGNUSSON AT THE SAAB BOOTH DURING THE2011 RAA ANNUAL CONVENTION IN NASHVILLE, TENNESSEENumerous workshops,presentations and teambuilding events will takeplace throughout theweek.Contact the conference teamat opsconf2011@saabgroup.comand fi nd the latest conference updates atwww.saabgroup.com.MARK YOUR CALENDAR…JUNE7-9 SAAB 2000 OPERATORS’ CONFERENCELinköping, Sweden20-26 PARIS AIR SHOWLe Bourget, FranceSEPTEMBER7-9 RAAA CONVENTIONCoolum, Queensland, Australia28-30 ERA GENERAL ASSEMBLYRome, ItalyOCTOBER10-12 NBAA CONVENTIONLas Vegas, NevadaNOVEMBER13-15 ATAC GENERAL MEETINGMontreal, Quebec13-17 DUBAI AIR SHOWDubai, UAEMARKET REPORT | June 201119

RMARKET REPORTOPERATIONAL STATUSSAAB 340402 operational aircraft69 operators in 37 countries14.13 million fl ight hours15.77 million fl ightsSAAB 200058 operational aircraft14 operators in 10 countries1.30 million fl ight hours1.26 million fl ightsSAAB 340SAAB 2000SAAB 340 & 2000(as of March 2011)Operator Country 340 2000AmericasOperator Country 340 2000 Operator Country 340 2000AmericasEurope & AfricaAerolineas MAS Dominican Rep. 1Aerolineas Sosa Honduras 1Air Panama Panama 2Air Sunshine USA 3Aloha Air Cargo USA 1Bimini Island Air USA 2Calm Air Canada 6Calspan USA 1Colgan Airways USA 33Connect Air Canada 1Delta Connection USA 19Exec Direct Jamaica 1Flight Works USA 1Hendrick Motorsports USA 3IBC Airways USA 11JMJ Flight Services USA 1Joe Gibbs Racing USA 2Líneas Aéreas del Estado Argentina 4Mesaba USA 7Pacific Coastal Airlines Canada 6Pegasus Air Cayman Islands 1PenAir USA 11Provincial Airlines Canada 2SST Aero Services USA 2SkyBahamas Bahamas 3SOL Argentina 6TAG Guatemala 1Transwest Air Canada 2Vigo Jet Mexico 1Western Air Bahamas 4Europe & AfricaAirfast Congo 1Avion Express Lithuania 4Carpatair Romania 10Central Connect Airlines Czech Republic 9Club Saab 340 Liechtenstein 1CTK Network Aviation Ghana 2Darwin Airline Switzerland 6Direct Aero Services Romania 4DOT Lithuania 2Eastern Airways Great Britain 8Estonian Air Regional Estonia 2Fleet Air Hungary 2Golden Air Sweden 4 9Loganair Great Britain 16Mali Air Express Mali 2Moldavian Airlines Moldavian Rep 1MRK Ukraine 2NextJet Sweden 13OLT Germany 1 3Overland Airways Nigeria 1Polet Airlines Russia 5 5RAF-AVIA Latvia 2Robin Hood Aviation Austria 2Ryjet Spain 1Saab Corporate Sweden 1 1SkyTaxi Poland 2Solinair Slovenia 3South Airlines Ukraine 2SprintAir Poland 12Swedish Air Force Sweden 5Asia-PacificAir Rarotonga Cook Islands 1Eznis Airways Mongolia 4Happy Air Travel Thailand 1Hokkaido Air System Japan 3Japan Air Commuter Japan 11Japan Civil Aviation Bureau Japan 2Japan Coast Guard Japan 4Nok Mini Thailand 2Pel-Air Australia 3Regional Express Australia 46Royal Thai Air Force Thailand 2WWW.SAABGROUP.COMWWW.SAABAIRCRAFTLEASING.COMSaab Aircraft Leasing21300 Ridgetop CircleSterling, Virginia 20166USATel: +1 703 406 7200Fax: +1 703 406 7224Saab Aircraft LeasingTorshamnsgatan 30CSE-164 40 KistaSwedenTel: +46 8 463 1400Saab Aircraft Leasing4-7-13-305 MeguroMeguro-ku, TokyoJapan 153-0063Tel: +81 3 3792 4300Fax: +81 3 3792 4315Saab Support and Services21300 Ridgetop CircleSterling, Virginia 20166USATel: +1 703 406 7200Fax: +1 703 406 7222Saab Support and ServicesSE-581 88 LinköpingSwedenTel: +46 13 18 00 00Fax: +46 13 18 51 15