MARKET REPORT - Saab Aircraft Leasing

Issue 23 OCTOBER 2009MARKET REPORTA PUBLICATION OF SAAB AIRCRAFT LEASINGGOLDEN AIR ACCEPTSSIXTH SAAB 2000EASTERN SUPPORTS OILOPS WITH SAAB 2000ARGENTINE AIR FORCEFLY FOUR SAAB 340BsFOR PATAGONIA MISSIONSSKYBAHAMAS READIESFOR SAAB 340 GROWTH

MESSAGE FROMMichael MagnussonCONTENTSGolden Air accepts sixth Saab 2000 ..........................................3With this issue of Saab Market Report,we approach the end of 2009, and itwill probably be a year most airlinepeople want to forget. It seems like wehave reached the “bottom” in trafficdecline, and there is a very cautiousoptimism that traffic should begin itslong road to recovery. The question is:how fast will the traffic recover? Somebelieve that it will take both 2010 and2011 until we are fully recovered.Even with the turmoil in the industry,we see some interesting positivetrends. One example is Thailand.Over the years, Thai International has served many domestic markets with largeaircraft, at a loss. It was deemed politically incorrect to drop these domesticroutes. With the industry in “free fall”, such old dogmas go out the window.What is happening now is various local regionals are filling the void left by Thaiwhen it dropped these destinations. These regionals want to “right-size” theaircraft utilized and have chosen the Saab 340 to do the job. So overnight wehave two regional operators already committed to incorporating Saab 340s, andin one case, even regional jets will be removed.Eastern supports oil operations with Saab 2000 .................... 4-5Wings of Europe launches two sister companies ................... 6-8PenAir adapts to Alaska’s Mt. Redoubt eruption ........................9Polish operators SprintAir and SkyTaxi displaycolorful liveries across European skies ............................... 10-11Saab profi le: Kjell Fredheim .....................................................12Rex introduces Electronic Flight Bag .................................. 13-14SkyBahamas readies for growth with Saab 340As ............. 15-17Argentine Air Force fl y four Saab 340Bs forPatagonia missions ............................................................ 18-19Mark your calendar .................................................................................. 19Saab operators map ............................................................................... 20Another major development for us is Mesaba’s (Delta) decision to reduce theirSaab 340Bplus flying and return these aircraft to us. This recent developmenthas provided us with the opportunity to offer new and existing operators theyoungest Saab 340s. In fact, the first two have already been placed with along-time Saab 340 operator.These are mid-1990 airframes with Gen III cabin interiors and Active NoiseControl systems. An advantage for new operators is we can offer a fleet ofaircraft with the same configuration and access to Saab’s Parts ExchangeProgram (PEP).On the Saab 2000 front, Saab has just completed its biennial operators conferencein Linköping. During this conference, various issues were discussedopenly between Saab, its customers and current suppliers. I believe it was avery useful exercise for everyone present. We at Saab need to hear from ourcustomers so that we can improve our programs to make both the aircraft andits operators competitive.Recently, we finished an unusual project which was supplying four completelyrefurbished Saab 340B aircraft, together with an extensive support and trainingpackage, to the Argentine Air Force. Saab won an international RFP to providethis package, and we did so on budget and on schedule. All are now in servicein some challenging environments in Patagonia. We have also reached thefinal stage in our delivery program of 340Bplus aircraft to Rex in Australia; thelast five aircraft will be delivered by early 2010. By then, Rex will have becomethe world’s largest Saab 340 operator showing the strength of the Australianregional market. The 30-seat Saab 340 is perfect for regional routes in theOutback, and Rex was recently selected as the most successful regional in theworld by a panel of experts at Aviation Week & Space Technology magazine.Cover photo by Eryl CrumpMarket 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 September 2009©2009 Saab Aircraft

MARKET REPORTEASTERN SUPPORTS OILOPERATIONS WITHSAAB 2000STORY AND PHOTOS BY ERYL CRUMPSOME OF THE AVIATION INDUSTRY’S MOST DEMANDINGPASSENGERS HAVE GIVEN EASTERN AIRWAYS AND THE SAAB2000 THE “THUMBS UP”. THE HUMBERSIDE, ENGLAND-BASEDAIRLINE WAS AWARDED THE CONTRACT LAST NOVEMBER FORTHE INTEGRATED AVIATION CONSORTIUM (IAC) TRANSPORTINGOFFSHORE WORKERS FROM ABERDEEN, SCOTLAND TO SCATSTAIN THE SHETLAND ISLES.Three Saab 2000s are allocated to the flights with each aircraft operatingup to four daily 55-minute return trips. At Scatsta, the UK’s mostnortherly airport and Scotland’s fifth busiest airport, most passengerstransfer onto Bristow Helicopters Sikorsky S-92 for flights to oil rigsin the Brent and Ninian fields. Some passengers make the short trip byroad to the Sullom Voe oil terminal where tankers are loaded with oilbrought ashore by pipeline.An oil worker, embarking a Saab 2000 flight at Aberdeen during August,tells Saab Market Report: “It’s a grand aircraft. It’s fast, comfortable andquiet. But more than that, it’s reliable. After a spell offshore, the lastthing I want on my way home is to be delayed. We understand weathercan affect operations and its effects can be seen at Scatsta – the windsockis usually horizontal. The one thing I hate seeing is a man with atoolbox heading to the aeroplane. That hasn’t happened with EasternAirways,” he said.Supporting business is priorityWhile Eastern was due to start these oil support operations in February2009, the previous operator, Air Kilroe, ceased service and was acquiredby Eastern. This prompted Eastern to start the service two monthsearlier. Eastern Airways Chief Operating Officer Chris Hollidayunderlines: “The contract was due to start in February this year, but acall came last December when the IAC were left grounded by another4 MARKET REPORT | October 2009

MARKET REPORT“ It’s a grand aircraft.It’s fast, comfortableand quiet. But morethan that, it’s reliable.”—Oil worker embarking a Saab 2000 fl ight at Aberdeenairline. We got a call at 6:30am, and we were providing service by 11am.It is testament to the capabilities of the team that we achieved that, andit is certainly in the interests of the company to respond at speed to thecustomer requirement. We have always tried to be very responsive, andwe focused on our priorities of supporting business.”Eastern Airways has experienced significant growth since it started12 years ago with one route from Humberside to Aberdeen and oneaircraft flying it. Built up primarily by serving businesses including theNorth Sea oil and gas industry, the network has developed across thecountry by using smaller regional aircraft on routes other airlines withlarger capacity fleets avoided.Charter contracts alone have already seen more than 1,400 flights madesince December. It is a perfect example of the company’s positioning inthe aviation industry.“We are not trying to be a low-cost airline that crams people in. Weare very focused on a high standard of service, day return frequencies,and we want to make our fl ights as enjoyable as possible. That is theunderlying philosophy. A lot of passengers fly with us every week orevery other week. It is part of their lives and if we don’t get it right, itwould have serious consequences for them. This is why we have such afocus on being on time,” adds Holliday.Eastern Airways now has 29 aircraft flying on a domestic and internationalscheduled network serving key business centers from 17 airports,as well as substantial charter activity.MARKET REPORT | October 20095

MARKET REPORTWINGS OF EUROPELAUNCHES TWO SISTERCOMPANIESSTORY AND PHOTOS BY ERYL CRUMPAugust 2009 was a busy time forWing of Europe Chief ExecutiveDaniel Långsten with the launch oftwo new operations.Wings of Europe was created as asister company of Sverigeflyg tooperate a number of small, regionallyfocused airlines in Sweden.Långsten oversaw the start ofOstersundsflyg services from AreOstersund in northern Sweden toStockholm’s downtown airport inBromma.Just days later, Långsten was atBornholm, an island off the easternDanish coast, for the Wings ofBornholm launch. The airline, thecompany’s first international operation,flies 42 departures weeklywith the Saab 340 from Bornholmto Copenhagen.”Långsten tells Saab Market Report:“It’s a boom time for us at the moment.So many airlines are eithergoing out of business or contracting.Airports need to replace thoseservices, but we don’t look at ittheir way every time. We don’tmind competing with other airlineson routes. We can set lowerfares and break the monopoly.We can be big when it is importantto be, all the various airlinesshare the IT functions, purchasingpower and so on but we canbe very small and local when weneed to.We have dedicated staff at eachairline whose job is to maintainclose links with passengers. Theyvisit local companies and maintaincontact. If someone we know fliesevery week and we don’t see themfor a few weeks, we’ll get in touch.When was the last time a largelegacy carrier visited a small companyto discuss their travel plans?”Sverigeflyg was established in 2001by three entrepreneurs on Gotlandwho founded Gotlandsflyg to flyVisby-Stockholm, as a protestagainst the SAS monopoly.“This became the start of Sverigeflyg,which developed as a ‘virtualairline’, with rented aircraft, flightcrews and technical competence.The company soon became verysuccessful and inquiries startedcoming from other Swedish citieswho also wanted better, cheaperand more frequent air service,”Långsten explains.To date, Sverigeflyg has assistedseven cities/regions to gain theirown airline, which the companyowns together with local entrepreneursin each city, based all overSweden, with routes to Stockholmand overseas – currently more than18 routes. The majority in eachsubsidiary is owned by Sverigeflyg.The companies use an allturbopropfleet, with 33- to72-seat aircraft from Saab andATR. In 2007, the companies6 MARKET REPORT | October 2009

MARKET REPORT“It’s a boomtime for us atthe moment…We can bebig when it isimportant tobe…but wecan be verysmall and localwhen we needto.”– Daniel LångstenChief ExecutiveWings of EuropeMARKET REPORT | October 20097

MARKET REPORTtogether carried approximately500,000 passengers with nineaircraft. That year, Saab 340operator Avitrans Nordic waspurchased. The airline has nineaircraft flying for several of thecompanies, however, Långsten isquick to point out the Wings ofEurope/Sverigeflyg is not obligedto use the firm’s aircraft.In 2007, the group had a turnoverof €50 million and profits of €3.5million – making it one of themost profitable airline groups inEurope. Average yearly growthhas been 73 percent since thestart.“In January 2008, we set upWings of Europe to export theconcept internationally. We aregetting lots of inquiries, andthere are projects being discussedin Italy, the Netherlandsand the UK,” he adds.WINGS OF BORNHOLMSAAB 340 PREPARING TODEPART THE AIRPORT ONITS INAUGURAL FLIGHTTO COPENHAGEN WAVEDON BY A LARGE CROWD(TOP)SAAB 340 LOADING ATVISBY, GOTLAND ON ITSWAY TO ÄNGLEHOLM“We go for the best and the cheapestbidder. Wings of Bornholmis operated by an Avitrans Saab340, but the Östersundsflyg isflown by a Golden Air Saab 2000.Many people have tried to copyour concept but so far none havesucceeded. In fact, Sverigeflyg purchasedseveral of those companieswho tried and failed, and they arenow part of the Sverigeflyg familyof companies,” he notes.The Wings of Europe structureWings of Europe/Sverigefl yg has interests in seven Swedish and oneDanish company. All of the Swedish companies operate a trunk routeto Stockholm’s centrally located and convenient Bromma Airport.Gotlandsflyg – established in 2001, the company was the fi rst in theSverigefl yg family and the foundation of the successful developmentof that company. Going from one 33-seat aircraft fl ying from Visby toStockholm Bromma, the company now operates an ATR 72 and aSaab 340 from the island. The company still fl ies to Bromma Airport,but now also has fl ights to Stockholm Skavsta and seasonal fl ights toGothenburg, Hamburg, Helsinki and Oslo.Kullaflyg – established in 2003, the company is based in Helsingborg,the center of the Kulla region, from where it fl ies a 72-seat ATR 72and a 50-seat Saab 2000 to Stockholm’s Bromma Airport, as well asseasonal routes to Visby and Mora.Sundsvallsflyg – established in 2005, the company fl ies with 50-seatSaab 2000s from Sundsvall to Stockholm’s Bromma Airport as well asa seasonal route to Visby.Blekingeflyg – established as Stockholmsplanet, the company wasincluded in Sverigefl yg in 2006 and renamed. Today, the companyfl ies from Ronneby with a 50-seat Saab 2000 to Stockholm’s BrommaAirport as well as seasonally to Visby.Kalmarflyg – established as Kalmarplanet, the company was includedin Sverigefl yg in 2007 and renamed. Today, the company fl ies fromKalmar, with a 33-seat Saab 340 to Stockholm’s Bromma Airport.Flysmaland – established as Stockholmsplanet, the company wasincluded in Sverigefl yg in 2007 and renamed. Today, the companyfl ies with two 33-seat Saab 340s from Växjö to Stockholm’s BrommaAirport as well as to Berlin and seasonal routes to Mora and Visby.Östersundsflyg – established in 2009 with base at Åre ÖstersundAirport in northern Sweden, the company fl ies a 50-seat Saab 2000 toStockholm’s Bromma Airport.Wings of Bornholm – established in 2009 with base at BornholmAirport, the company fl ies a 33-seat Saab 340 to Copenhagen Airport.Wings of Bornholm is the group’s fi rst establishment outside Sweden.8 MARKET REPORT | October 2009

MARKET REPORTPENAIR ADAPTS TO ALASKA’sMT. REDOUBT ERUPTIONBY PAUL BRYSONMOTHER NATURE OFFERS ANASSORTMENT OF NATURALEVENTS THAT CAN UPSET ANDCREATE CHALLENGES FORCOMMUNITIES AND BUSINESS-ES WORLDWIDE. PROBABLYONE OF THE MOST UNUSUALCHALLENGES OF NATURETHAT OUR SAAB OPERATORSFIND THEMSELVES MANAGING,IS A VOLCANIC ERUPTION.IN MARCH 2009, MT. REDOUBT,LOCATED JUST OUTSIDE OFANCHORAGE, ALASKA, PRE-SENTED SAAB 340 OPERATORPENAIR, WITH JUST SUCHAN EVENT.Late in January of 2009, preeruptioninformation, that wasavailable from the Alaska VolcanoObservatory’s (AVO), warnedof an imminent Mt. Redoubteruption. This eruption, whichoccurred on March 22, 2009 andwas preceded by clusters of seismicactivity, sent steam and ash plumesupwards 21 kilometers/13 miles.From the initial evidence that volcanicactivity is possible, PenAirclosely monitors the situation andprepares to implement its policiesand procedures required to protectits passengers, crew and aircraft.With the initial eruption, pilotsin flight are immediately notifiedand advised that if they cannotmaintain VFR (visual flight rules)they are to divert away from thevolcanic activity and search outa suitable airport to land. If it ispossible to maintain VFR conditions,they can proceed but mustremain clear of the ash. Flightsthat have not departed are told toremain on the ground until thesituation can be assessed properly.PenAir uses Alaska VolcanoObservatory for operationalplanningBryan Carricaburu, PenAir VicePresident and Director of Operations,advises Saab Market Reportthat information they use tounderstand the present and futurevolcanic activities, can be foundat AVO’s website. For planningpurposes, AVO makes a “puff detector”available that, along withcurrent and forecasted weatherdata, computes where, how highand how fast the ash and gasseswill travel if the eruption occurs.Mt. Redoubt’s eruption causedPenAir to cancel all flights andmaroon aircraft for severaldays while ash fell directly overAnchorage. During the eruptionand post-eruption phase, all flightcrew, ground operation personneland mechanics were continuallyreminded to stay observant andreport any indication of ash settlingor possible damage causedby the small ash particles.Volcanic ash can be quite hazardousas it can enter minuteopenings and contaminate the airsupply that is used not only bymany aircraft instruments but forcabin air. It also has the potentialto pit windscreens, and erodeleading edges, radomes and deiceboots. Of course, any indicationof ash damage is reportedimmediately, and the aircraft isgrounded until a proper reviewis conducted by PenAir’s CriticalManagement team. Even after ashstops falling, airport maintenancerequires several days to sweep upthe fallen ash.An interesting volcano fact tellsus that on the planet of Mars wefind the volcano Olympus Mons(Latin for “Mount Olympus”) thatis the tallest known volcano andmountain in our solar system.Olympus Mons is three times astall as Mount Everest as it standsat 27 kilometers/16.7 miles highabove the surface level of Mars.MARKET REPORT | October 20099

MARKET REPORTPOLISH OPERATORS SPRINTSKYTAXI DISPLAY COLORFULIVERIES ACROSS EUROPEANSTORY AND PHOTOS BY ERYL CRUMPPOLISH REGIONAL AIRLINESARE MAKING THEIR COLORFULMARK ON AIRPORTS ACROSSEUROPE WITH THEIR MULTI-COLORED FLEET OF SAAB340As.SprintAir, part of the SprintAirGroup, operates domestic passengerservices from its base inWarsaw to various destinationsin Poland. SprintAir also operatesregional freight services acrossEurope on behalf of freight forwardersincluding UPS and DHL.Operating 11 Saab 340As,SprintAir flies five freighterconversions, four QC versionsand two others, both obtainedfrom Australian carrier RegionalExpress earlier this year, in passengerconfiguration.All Saab 340As are painted in thesame basic color scheme, but thetail and fuselage logos and stylingsport paint in greens, blues, redsand orange.SprintAir President Jan Szczepkowskinotes the airline was originally setup in 2003, under the name AirPolonia Cargo. It started freightand mail flights in April 2004,with three Let L-410s.Later that year, the airline wasrenamed to SkyExpress andacquired its first Saab 340A. BetweenApril 2006 and April 2007,the airline started scheduleddomestic passenger operationsunder the Direct Fly brand. Afterthose flights were suspended,the airline continued freightoperations.In January 2008, SprintAir Groupwas established, and the airlinechanged its name to SprintAir.The passenger operation restartedsoon afterwards.SkyTaxi operates fromWroclawMeanwhile, another Polish airline,SkyTaxi, operates “on demand”and charter services from itsWroclaw base. Two Saab 340Ascurrently comprise the fleet andhave been seen across Europe.During the last football (soccer)season, they were seen regularlyflying French team FC Sochaux-Montbéliard to away games.SkyTaxi was established in theyear 2000 at a small grass airfieldnear Opole, Poland. The fleet10 MARKET REPORT | October 2009

MARKET REPORTSPRINTAIR SAAB 340AsSPORT PAINT IN GREENS,REDS AND BLUESAIR ANDLSKIESthen consisted of a six-seat PiperSeneca II, and the first flight wasto Warsaw. The base was switchedto Wroclaw in the fall of 2000flying to many destinations allover Europe.SKYTAXI SAAB 340AsOPERATE ON DEMAND,CHARTER SERVICES FROMITS WROCLAW BASE“By the end of 2001, we made adecision to enlarge our fleet anda Cessna T303 Crusader waspurchased. A much larger aircraftwas required by mid-2005 tomeet market requirements. Afterevaluating various types, theSaab 340A was selected,” SkyTaxiChief Executive Officer GregRybczynski tells Saab MarketReport. The Quick Change versionwas delivered to Wroclaw inNovember and was put straight towork. Rybczynski said the secondaircraft was delivered in the fallof 2008.MARKET REPORT | October 200911

MARKET REPORTSAABPROFILE:Kjell FredheimLongtime Scandinavian aviatorAfter completing military service, Kjell Fredheim joined SAS in1957 and worked within Marketing, Sales and Route Management inNorway. Working his way up the company over 20+ years, Fredheimbecome head of Domestic and European Marketing in 1981, then waspromoted to General Manager for Germany, the largest market inEurope for SAS.In January 1986, Fredheim was named Vice President and GeneralManager of SAS Intercontinental. He executed a major restructuringof the SAS Intercontinental operation and standardized the fleet fromfive types to one. He managed to open China for SAS and a close cooperationwas established with US carrier Continental Airlines. Thisresulted in moving the SAS hub in the US to Newark. SAS offered dailynon-stop services to Newark from Copenhagen, Stockholm and Oslofor the first time.Shortly after being appointed Executive Vice President and Chief OperatingOfficer of SAS in November 1990, Fredheim launched the SASEfficiency Program cutting 20 percent of the airline’s operating costs andreducing staff by more than 3,600.During the same period, Fredheim merged the domestic airlines,Linjeflyg and Skyways Express, into SAS and was project manager forSAS in the Alcazar project, an attempt to merge SAS, KLM, Swissair andAustrian into one airline.In November 1993, Fredheim was appointed Senior Vice President ofCorporate Development for the SAS Group with responsibility for theBaltic area. He played a vital part in forming Air Baltic in Latvia whereSAS had a 29 percent shareholding.While Fredheim retired from Air Baltic when the airline was profitablein March 1997, in June of that year he was appointed President of theSwedish charter company Blue Scandinavia. Owned by the tour operatorFritidresor, the airline was acquired by the Thomson Group in early 1998and renamed Britannia Airways Sweden.In early 1998, SAS acquired the Finnish domestic airline Air Botnia(now Blue1) operating five 19-seat Jetstream 31s. Fredheim was asked todevelop the airline into a profitable regional airline.Currently, Fredheim is Chairman and CEO of the family-owned consultingcompany: Fredheim International. Established in 1997, the companyspecializes in aviation matters, airline management, education andmanagement training. An ERA member, the company has been engagedby several airlines and has had management responsibility for a numberof projects.Fredheim and his wife Borg have two children, both working for theSAS Group. His leisure interests include soccer, mountain walkingand gardening.12 MARKET REPORT | October 2009

MARKET REPORTREXINTRODUCESELECTRONICFLIGHT BAGAustralian-based Regional Express(Rex) has introduced flight decktablet computers called Saab FlightBags (SFB). The SFB enables pilotsto complete the aircraft weight andbalance, flight planning, as wellas download and print pre-flightbriefings. Currently, this preparationis done in dispatch officeslocated inside the airport. With thenew SFB, the need for the FirstOfficer to travel to the dispatchoffices is completely eliminated,thereby allowing all crew toremain together at the aircraft toprepare for an efficient turnaround.Development of this systemstarted two years ago, andinvolved intense co-operationbetween the Engineering, FlightOperations, Airports and IT departments.The existing Rex FlightPlanning and Load Control System(FLaPS) had to be upgradedto incorporate the passengermanifest import function fromthe Sabre reservation system. Thisdirect import function allows theflight crew to import and populatethe seat map of the aircraftwithin FLaPS from the passengermanifest within Sabre. Previously,the flight crew was required tomanually load each passenger intothe system in order to produce thenecessary trim and flight planningpaperwork. Five generations ofprototypes were built before thefinal configuration was selected.The SFB includes a tablet computer,Zebra thermal printer, mobileinternet card and a state-of-the-artcustom designed power supplywhich has a microcontroller con-MARKET REPORT | October 200913

MARKET REPORTTHE ENTIRE SYSTEM ISHOUSED IN A SPECIALLYENGINEERED CUSTOM BUILTCASE THAT IS STOWED INTHE FLIGHT DECK IN THEDOCUMENT BIN BESIDE THECAPTAIN’S SEATTHE SFB ENABLES PILOTS TOCOMPLETE THE AIRCRAFTTRIM, FLIGHT PLANNING, ASWELL AS DOWNLOAD ANDPRINT PRE-FLIGHT BRIEFINGStrolling overvoltage protection.A local Engineering Order withRegulatory Approval was developedto use a 28V power outletwhich recharges the batteries ofthe tablet and printer. The outletonly allows power to be drawnwhen the nose gear is down.The entire system is housed ina specially engineered custombuilt case that is stowed in theflight deck in the document binbeside the Captain’s seat. TheSFB is laptop size and weighsjust 5 kilograms/11 pounds.The EFB remains in the aircraftunless maintenance is required.Rex is the first revenue passengertraffic Saab operator toutilize such a system which hasbeen approved by Australia’sCivil Aviation Safety Authority.Rex is currently in the processof rolling out the product to all40+ Saab aircraft in its fleet.The SFB is undoubtedly a breakthroughin the Saab aircraft communityand all other operatorscould certainly benefit from thisinnovation.Other operators wishing to findout more should contact Rex’sGM IT & CommunicationsMayooran Thanabalasingam:mayooran.thana@rex.com.au.14 MARKET REPORT | October 2009

MARKET REPORTMISS UNIVERSECONTESTANTS FLYSKYBAHAMAS TO BIMINIFOR THE PAGEANT’S SOCIALACTIVITIESSKYBAHAMAS READIESFOR FUTURE GROWTH WITHSAAB 340AsBY KELLY MURPHYPICTURED BACK ROW:PAGEANT CONTESTANTS;FRONT ROW (LEFT TO RIGHT)JAMARO THOMPSON, GUESTSERVICE MANAGER; TRAVISSTEIN, SAFETY OFFICER ANDDIRECTOR OF TRAINING/PILOT; ANNIS SMITH, FLIGHTATTENDANT; GODFREYWALLACE, FIRST OFFICER;CHERISSE KING, BIMINIGUEST SERVICE AGENTCEO and President CaptainRandy Butler has a clear vision forSkyBahamas prominent future anddraws on his many years of aviationexperience working not onlywithin the government and commercialsectors of the industry, butas a highly accomplished airlinepilot, instructor and examiner.This rare combination of such along list of aviation credentials, hasserved SkyBahamas well as it setsits course for additional growth inthe Bahamas. With a fleet of threeSaab 340As and a single Beech1900, SkyBahamas operates dailyflights out of Nassau to inter-islanddestinations including: Exuma,Bimini, Freeport, Grand Bahama,Marsh Harbour, Abaco and NewBight, Cat Island. Roundtripsflights are offered two to threetimes daily.SKYBAHAMAS ADOPTS THE OLD BIGHT MISSION HOME INCAT ISLAND. PICTURED FROM LEFT TO RIGHT: CAPTAINRANDY BUTLER, MRS. BUTLER, CHIEF COUNCILOR VALSEYMOUR, REVEREND KEVIN RUSSELL, DEPUTY CHIEFCOUNCILOR ALFRED DANIELS AND SKYBAHAMAS BOARDCHAIRMAN PETER TURNQUESTCHILDREN OF THE OLD BIGHT MISSION HOME SING ASELECTION OF SONGS AT THE CEREMONY INTRODUCINGSKYBAHAMAS TO THE CAT ISLAND COMMUNITYMARKET REPORT | October 200915

MARKET REPORTSpeaking at the MarshHarbour, Abaco inauguralceremony, Captain Butlerreminds customers“safety is our culture andservice is our passion”16 MARKET REPORT | October 2009

MARKET REPORTSince 2008, when Butler tookcharge of the day-to-day operationsof SkyBahamas, the airlinehas become deeply involved in thecommunities it serves. Butler tellsSaab Market Report, “We createnew jobs and help sustain the localeconomy. We believe in the oldproverb that it’s better to give thanto receive.”Living this promise, SkyBahamashas donated food, books andmoney to Cat Island’s school andMission Home, a safe and caringhaven for 15 Bahamian childrenwho have been neglected andabandoned.The Saab 340 was selected as agrowth aircraft for the airlineproviding economical and reliableservice. Butler notes to supportfuture route development, thereare plans to add two more of the30-seaters.Customers have also welcomed theinflight cabin services provided bySkyBahamas flight attendants, saysButler, underlining the airline’smotto: where safety is our cultureand service is our passion.Captain Randy ButlerCEO and President, SkyBahamas Ltdwww.skybahamas.netAlthough airplanes have been flying to the Bahamas since 1919, itwas only after World War II that Bahamians, usually ex-RAF and RCAFpilots, began to captain aircraft that traversed the archipelago andconnected the islands to the wider world. When the skies opened up tothe average Bahamian, a growing number of young men seized the opportunityto take to the air and many have gained international respectfor their competence. Captain Randy Butler is one of that outstandinggroup. An accomplished pilot with experience as an FAA-certified PilotInstructor and Pilot Examiner, Butler, in 1996, became the first Bahamianpracticing in the Bahamas to be designated by the Bahamas CivilAviation Authority as a Pilot Examiner.In 2008, the SkyBahamas Board announced Captain Butler’s appointmentas CEO and President of SkyBahamas, with responsibility for thecompany’s day-to-day management. Reporting directly to the Board, heleads a team of highly skilled aviation professionals to ensure SkyBahamascontinues to succeed in the challenging and highly competitive climate ofcommercial aviation. Butler notes the key is “strategic scheduling, targetingkey domestic routes and on-demand fl ights linking the Bahamas and theUnited States.” He underlines this necessary strategy will bring more lucrativeopportunities to tourism and hospitality throughout the archipelago.He has amassed 22 years of industry experience, the last seven yearsspent working at the Flight Standards Inspectorate (FSI) as an aviationsafety inspector. His responsibilities have included the training of inspectorsand technical offi cers.The scope of Captain Butler’s 22 years of experience is backed bynumerous certifi cations and experiences. He holds US, Canadian andBahamas Airline Transport Pilot License (ATP) with type-ratings on theBoeing 737, Dash 8, Cessna Citation, Beech 1900 and seaplane aircraft.He has completed international training and obtained various certifi cationsin the following: Aviation Security, Civil Aviation Management,Airport Certifi cation & Management, Airline Security, Airline Operations &Management and Safety Management systems (SMS). Among his IATAdiplomas and certifi cates, Butler counts eight distinctions. He has loggedmore than 6,000 fl ight hours as a corporate and charter pilot.From 2000 to 2007, Butler was Flight Standards Inspectorate/BahamasCivil Aviation Department: Aviation Safety Inspector (Operations) Supervisorand Acting Manager. He was named Investigator-in-Charge of thetragic and high profi le fatal aircraft crash accident investigation that claimedthe life of R&B singer Aaliyah. In this role, Butler was required to interactand liaise with international aviation authorities, international and local lawagencies, and the foreign press and take part in court proceedings.The Nassau Development Company (NAD) operator of the Lynden PindlingInternational Airport, employed Butler as Manager of Public Safety,with responsibility for the day-to-day safety of all users of the LyndenPindling International Airport.From 2007 to 2008, Butler was engaged with the Bahamas Governmentat the Ministry of Tourism and Aviation, as the fi rst-ever manager of AviationSecurity for the whole Bahamas. He reported directly to the Ministerresponsible for civil aviation on aviation security matters, also advising onpolicy for aviation security. In addition, Captain Butler liaised with foreigngovernment on aviation security issues and represented the governmentat international conferences and meetings on aviation security.Butler’s goal as CEO and President of SkyBahamas is “to see the airlinethrive immensely by scheduling more domestic routes and on demandcharter fl ights from the islands of the Bahamas to the USA.”MARKET REPORT | October 200917

MARKET REPORTARGENTINE AIR FORCEFOR PATAGONIA MISSIONSPhoto: Guillermo SentisTHE ARGENTINE AIR FORCEHAS NOW ACCEPTED DELIVERYOF FOUR SAAB 340Bs TOSERVE REMOTE AREAS INTHE PATAGONIA REGION INSOUTHERN ARGENTINA. THESAABs REPLACE FOKKERF27s AND ARE BASED ANDMAINTAINED IN COMMODORORIVADAVIA.The aircraft are operated bythe Air Force-managed airlineLineas Aereas del Estado (LADE)serving the Patagonia region.The Saab 340Bs feature gravelmodification as well as expandedcommunications equipment. Theywill also meet the latest civilianrequirements on TCAS-2, TAWS,expanded DFDR and securedcockpit doors.The deliveries are a culmination ofa four-year process to select a newmiddle-size transport aircraft forthe Argentine Air Force. The totalbudget for the aircraft and logisticssupport package is approximately$34 million spread over five years.Saab won the contract in late2007 and agreed to deliver fourcompletely overhauled Saab 340Bstogether with a complete logisticspackage of spares, manuals, tools,ground support equipment, trainingof pilots and mechanics, Saab onlocationtechnical support, as well asthe Parts Exchange Program (PEP)on the rotables including propellerand landing gear.Major Ivan Castany tells SaabMarket Report, “After a longprocess, the Argentine Air Forcechose the Saab 340B to fly in theharsh Patagonia environmentcovering non-profitable areas,flying passengers and cargo andaccomplishing a social job makinga connective network over a hugearea from Commodore Rivadavia.From January 2009, we have beenflying our 340s and realize thatthey are very tough and fit forthe job. They are enjoyable to flyand maintenance friendly, and wehope to fly them for many yearsto come.”18 MARKET REPORT | October 2009

MARKET REPORTFLY FOUR SAAB 340BsPhoto: Guillermo Sentis Photo: Guillermo SentisPhoto: Guillermo SentisON AUGUST 21, 2009, THEARGENTINE AIR FORCE HAD ASAAB 340 CEREMONY MARK-ING THE FINAL DELIVERIES OFTHE FOUR SAAB 340Bs. THECEREMONY IN BUENOS AIRESINCLUDED MANY MILITARYOFFICIALS WITH THE CHIEF OFTHE ARGENTINE AIR FORCEPROVIDING A TOUR OF THEAIRCRAFT TO MINISTER OFDEFENSE NILDA GARRE. SEEPICTURES AT LEFTMARK YOUR CALENDAR…OCTOBEROctober 1-2October 7-9October 20-22October 26-27NOVEMBERNovember 2-4November 15-17RAAA CoolumQLD, AustraliaERA General AssemblyInterlaken, SwitzerlandNBAA ConventionOrlando, FLUS Valuation ConferenceWashington, DCSpeedNews Regional & CorporateAviation ConferenceRancho Mirage, CAATAC 2009 Annual General MeetingQuebec City, QCMARKET REPORT | October 200919

RMARKET REPORTOPERATIONAL STATUSSAAB 340412 aircraft in service55 operators in 31 countries13.6 million fl ight hours15.1 million fl ightsSAAB 200058 aircraft in service13 operators in 10 countries1.2 million fl ight hours1.2 million fl ightsSAAB 340SAAB 2000SAAB 340 & 2000(all data as of August 2009)Operator Country 340 2000AmericasOperator Country 340 2000 Operator Country 340 2000AmericasEurope & AfricaAerolineas Sosa Honduras 1AeroMexico Connect Mexico 2Air Panama Panama 2Bimini Island Air USA 2Calm Air Canada 6Caribair Dominican Rep. 2Colgan Airways USA 34Corporate Express Canada 1Hendrick Motorsports USA 3IBC Airways USA 10JMJ Flight Services USA 1Joe Gibbs Racing USA 2Líneas Aéreas del Estado Argentina 4Mesaba Airlines USA 49Napleton Aviation Group USA 1Pacific Coastal Airlines Canada 8Pegasus Air Cayman Islands 1Peninsula Airways USA 10Prince Edward Air Canada 1Provincial Airlines Canada 2Saint-Ex Mexico 2SkyBahamas Bahamas 3SOL Argentina 4TAG Guatemala 1Transwest Air Canada 3Vigo Jet Mexico 1Western Air Bahamas 5Europe & AfricaAirfast Congo 1Avion Express Lithuania 3Avitrans Nordic Sweden 13Carpatair Romania 10Central Connect Airlines Czech Republic 7CTK Network Aviation Ghana 2Darwin Airline Switzerland 4DOT Lithuania 2Eastern Airways Great Britain 8Estonian Air Regional Estonia 2Fleet Air Hungary 2Golden Air Sweden 4 6Loganair Great Britain 16Mali Air Express Mali 2MCA Airlines Sweden 2MRK Ukraine 2Moldavian Airlines Moldavian Rep 2NextJet Sweden 4Norse Air South Africa 3NRT Gabon 2OLT Germany 2 3Overland Airways Nigeria 1Polet Airlines Russia 6RAF-AVIA Latvia 2Robin Hood Aviation Austria 2Ryjet Spain 1SkyTaxi Poland 2Solinair Slovenia 3South Airlines Ukraine 2Sprint Air Poland 11Swedish Air Force Sweden 9Asia-PacificAir Rarotonga Cook Islands 1Eznis Airways Mongolia 3Hokkaido Air System Japan 3Japan Air Commuter Japan 11Japan Civil Aviation Bureau Japan 2Japan Coast Guard Japan 4Pakistan Air Force Pakistan 1Pel-Air Australia 3Regional Express Australia 42Saab Aircraft Leasing, Inc.21300 Ridgetop CircleSterling, Virginia 20166USATel: +1 703 406 7200Fax: +1 703 406 7224Saab Aircraft LeasingTorshamnsgaten 32ASE-164 84 Stockholm,SwedenTel: +46 8 463 1400Fax: +46 8 463 1409Saab Aircraft Leasing4-7-13-205 MeguroMeguro-ku, TokyoJapan 153-0063Tel: +81 3 3792 4300Fax: +81 3 3792 4315Saab Aerotech ofAmerica, LLC21300 Ridgetop CircleSterling, Virginia 20166USATel: +1 703 406 7200Fax: +1 703 406 7222Saab AerotechSE-581 88 LinköpingSwedenTel: +46 13 18 00 00Fax: +46 13 18 51 15WWW.SAABGROUP.COMWWW.SAABAIRCRAFTLEASING.COM