JETNET iq Snap! Q Summary Report

Transcription

1 !!! JETNET iq Snap! Q Summary Report Prepared for: JETNET iq Global Business Survey Respondents

2 ,א דא נק Gracias, Thank You, Merci, Obrigado, Muchas Danke, ありがとう, Grazie,,ششككرراا спасибо, Thank you for participating in our quarterly JETNET iq Global Business Aviation Surveys. Your opinions and inputs are vital to the many people in the industry tasked with designing and developing aircraft, providing aviation services on the ground and in the air, financing / selling / and buying aircraft, and creating the operational framework for safe and efficient flight. JETNET has been a trusted source of aviation market intelligence since From humble beginnings in Utica, NY, we have built one of the finest research teams and business aviation databases in the industry. Our people are professional and dedicated, and our data products and services are unique and innovative. We are committed to continuous improvement as we provide you with unprecedented global coverage, data connectability, and market insights wherever you are. If you are at EBACE in Geneva (May 20-22), please stop by the JETNET booth at Palexpo. If you are in New York City on June 3-4, 2014, please consider signing up for our 4 th annual JETNET iq Global Business Aviation Summit ( - it will be a fast-paced day full of insights from leaders across the business aviation industry. Thank you again for participating in our quarterly survey, and we hope this JETNET iq Snap! Report helps you take your business to a higher altitude. Vincent Esposito President, JETNET LLC

3 JETNET iq Snap! is one of the ways we would like to say thanks for the time and opinions you provide us when participating in our quarterly JETNET iq Global Business Aviation Surveys. With seemingly endless demands on your time, we appreciate your help and want to provide you something back in return. In the attached pages you will find some of the latest market intelligence that we have collected and analyzed. Our goal is to be a resource to identify and work the issues that matter to the business aviation community. As an industry leader and aviation professional, you make a difference by participating in these surveys, providing us with objective and subjective perspectives into the state of the worldwide business aviation industry. JETNET iq Snap! Reports reflect the collaborative insights of you, our respondents, and our JETNET iq research Navigating by JETNET iq team. Collectively, we have extensive experience in business aviation, from executive offices and boardrooms, to the office cubicles, factory floors, design centers, situation rooms, cockpits, service hangars and flight lines of the industry. Much like a magnifying glass concentrates light and energy, JETNET iq draws from a diverse set of intelligence sources to bring the power of this experience into sharp focus. Since early 2011, our JETNET iq research team has been reaching out to you fixedwing turbine aircraft owners and operators - with our quarterly JETNET iq Global Business Aviation Surveys. As always, we hope that this latest issue of JETNET iq Snap! is useful and insightful to you. Rollie Vincent JETNET iq Creator / Director rollie@jetnet.com

4 JETNET JETNET Founded in 1988 Privately-owned family business Headquarters in Utica, NY 70+ employees (47 in research) Daily contact with aircraft owners and operators globally JETNET: Worldwide leader in aviation market intelligence

5 JETNET JETNET Main products: JETNET iq JETNET Evolution / Mobile AERODEX Aviation Business Index (ABI) AvData JETNET CRM Helidex Rotodex BigPlanes - Commercial Airliner Database Sales Price Index (SPI) Data coverage: 60,000 business aircraft (fixed and rotary wing) 50,000 commercial aircraft JETNET: Tracking more than 110,000 aircraft worldwide

6 JETNET iq JETNET iq Intelligence.quarterly Focus: Business aviation research & forecasting Main features Surveys of aircraft owners and operators Reports of current and forecast market conditions Summits of industry thought leaders

7 JETNET iq JETNET iq Surveys Turbine business aircraft owners and operators Quarterly Global On-line Multilingual Password-protected Password-linked

8 JETNET iq JETNET iq Reports

9 JETNET iq JETNET iq Summits Thought leadership and networking conferences 4th Global Business Aviation Summit: June 3-4, New York City March 31, 2014 JETNET iq Snap!: 1st Quarter Private & Confiden?al

10 JETNET iq: The Economy The Economy Real'GDP'in'chained'$2005'($US'billions)'.'Green'Line' $70,000! $60,000! $50,000! $40,000! $30,000! $20,000! $10,000! EvoluDon'of'World'GDP'and'World'Business'Jet'Fleet'' World!GDP! World!Business!Jet!Fleet!!R 2!=!0.986! 1969!+!2013!!22,000!!!20,000!!!18,000!!!16,000!!!14,000!!!12,000!!!10,000!!!8,000!!!6,000!!!4,000!!!2,000!! Business'Jet'Fleet'(units)'.'Black'Line' $0! 1969! 1970! 1971! 1972! 1973! 1974! 1975! 1976! 1977! 1978! 1979! 1980! 1981! 1982! 1983! 1984! 1985! 1986! 1987! 1988! 1989! 1990! 1991! 1992! 1993! 1994! 1995! 1996! 1997! 1998! 1999! 2000! 2001! 2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013!!+!!!! The business jet fleet continues to grow even faster than the world s economy

11 JETNET iq: The Economy The Economy 2014!GDP!Forecasts!and!"Top!20"!Business!Jet!Fleets!!!14,000!! Business!Jet!Fleet!(units)!/!March!31,!2014!(RED!Bars)!!12,000!!!10,000!!!8,000!!!6,000!!!4,000!!!2,000!!!/!!!! 7.3%! 6.0%! 4.0%!!350!!!172!!!118!!!11,856!! 3.0%! 2.9%! 2.8%! 2.7%! 2.5%!!841!!!557!!!189!!!169!! 2.3%! 2.2%! 2.0%!!515!!!109!!!200!! 1.8%! 1.8%!!822!!!437!! 1.6%! 1.3%! 1.2%! 0.8%! 0.8%! 0.5%! /0.7%!!146!!!228!!!127!!!218!!!124!!!133!!!167!! 8.0%! 7.0%! 6.0%! 5.0%! 4.0%! 3.0%! 2.0%! 1.0%! 0.0%! /1.0%! /2.0%! China!&!Hong! Kong! India! Saudi!Arabia! Mexico! United!Kingdom! United!States! Australia! South!Africa! Canada! Turkey! Switzerland! Brazil! Germany! Portugal! Austria! Russian! FederaUon! France! Spain! Italy! ArgenUna!!Real!GDP!Growth!Forecast!for!2014!(BLUE!Line)! Economic forecasts as of April 19, 2014; Source: EIU Top 20 business aviation countries have widely divergent economic outlooks

12 JETNET iq: The Economy The Economy $900$$ $800$$ Business$Jet$Fleet$(units)$.$$March$31,$2014$(RED$Bars)$ $700$$ $600$$ $500$$ $400$$ $300$$ $200$$ $100$$ $.$$$$ 7.3%$ 350$ China$&$Hong$ Kong$ 6.0%$ 172$ India$ 4.0%$ 118$ Saudi$Arabia$ 841$ 3.0%$ 557$ 2.9%$ 2.7%$ Mexico$ United$Kingdom$ 189$ Australia$ 2014$GDP$Forecasts$and$"Top$20"$Business$Jet$Fleets$$ (excluding$the$united$states)$ 2.5%$ 169$ South$Africa$ 515$ 2.3%$ 2.2%$ Canada$ 109$ Turkey$ 2.0%$ 200$ Switzerland$ 822$ 1.8%$ 1.8%$ 1.6%$ Brazil$ 437$ Germany$ 146$ Portugal$ 1.3%$ 1.2%$ 228$ Austria$ 127$ Russian$FederaTon$ 0.8%$ 0.8%$ 0.5%$ 218$ France$ 124$ 133$ Spain$ Italy$.0.7%$ 167$ ArgenTna$ 279$.1.9%$ Venezuela$ 8.0%$ 6.0%$ $Real$GDP$Growth$Forecast$for$2014$(BLUE$Line)$ 4.0%$ 2.0%$ 0.0%$.2.0%$.4.0%$ Economic forecasts as of Sept. 28, 2013; Source: EIU Mexico and Brazil have the next largest fleets after the USA; China is fastest growing

13 JETNET iq: The Economy The Economy $16,000$ $15,000$ U.S.$GDP$and$U.S.$Business$Jet$Cycles$ 5,000,000$ 4,800,000$ $U.S.$GDP$in$Billions$of$Chained$$2009$$ (Seasonally$Adjusted$at$Annual$Rates)$$$$$ $14,000$ $13,000$ $12,000$ $11,000$ $10,000$ 4,600,000$ 4,400,000$ 4,200,000$ 4,000,000$ 3,800,000$ 3,600,000$ 3,400,000$ U.S.$Business$Jet$Cycles$ $9,000$ 3,200,000$ $8,000$ 2001$ 2002$ 2003$ 2004$ 2005$ 2006$ 2007$ 2008$ 2009$ 2010$ 2011$ 2012$ 2013$ 3,000,000$ Sources: U.S. BEA, FAA U.S. business jet cycles are slowly rebounding, but are still 16% below 2007 levels

14 JETNET iq: The Industry Business Jet Fleet by Region!25,000!!!20,000!!!15,000!!!10,000!! 63%! 2%!6%! 14%! 1%! 12%! 2%! Business#Jet#Fleet#as#of#Mar#31#2014 By#Region Total#Fleet Africa **************** 460 Asia*Pacific ************* 1,072 Europe ************* 2,656 Former*Soviet*Union **************** 204 Latin*America*&*Caribbean ************* 2,428 Middle*East **************** 468 North*America ************ 12,363 Total ############ 19,651!5,000!!!"!!!! 1957! 1960! 1961! 1962! 1963! 1964! 1965! 1966! 1967! 1968! 1969! 1970! 1971! 1972! 1973! 1974! 1975! 1976! 1977! 1978! 1979! 1980! 1981! 1982! 1983! 1984! 1985! 1986! 1987! 1988! 1989! 1990! 1991! 1992! 1993! 1994! 1995! 1996! 1997! 1998! 1999! 2000! 2001! 2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2012! 2013! Africa! Asia!Pacific! Europe! Former!Soviet!Union! LaDn!America!&!Caribbean! Middle!East! North!America!

15 JETNET iq: The Industry Business Jet Fleet by Manufacturer NORTH&AMERICA Fleet&as&of EUROPE Fleet&as&of FORMER&SOVIET&UNION Fleet&as&of OEM Mar&31&2014 OEM Mar&31&2014 OEM Mar&31&2014 Bombardier //////////////// 2,694 Bombardier ////////////////// 593 Bombardier //////////////////// 64 Cessna/Citation //////////////// 4,334 Cessna/Citation ////////////////// 921 Cessna/Citation //////////////////// 19 Dassault/Falcon //////////////// 1,229 Dassault/Falcon ////////////////// 472 Dassault/Falcon //////////////////// 29 Embraer ////////////////// 327 Embraer ////////////////// 114 Embraer //////////////////// 21 Gulfstream //////////////// 1,615 Gulfstream ////////////////// 212 Gulfstream //////////////////// 21 Hawker/Beechcraft //////////////// 1,501 Hawker/Beechcraft ////////////////// 245 Hawker/Beechcraft //////////////////// 32 Other ////////////////// 663 Other /////////////////// 99 Other //////////////////// 18 Total &&&&&&&&&&&&&& 12,363 Total &&&&&&&&&&&&&&& 2,656 Total &&&&&&&&&&&&&&&&&& 204 MIDDLE&EAST Fleet&as&of OEM Mar&31&2014 Bombardier ////////////////// 93 Cessna/Citation ////////////////// 60 Dassault/Falcon ////////////////// 59 Embraer ////////////////// 37 Gulfstream ////////////////// 81 Hawker/Beechcraft ////////////////// 70 Other ////////////////// 68 Total &&&&&&&&&&&&&&&& 468 LATIN&AMERICA&&&CARIBBEAN Fleet&as&of AFRICA Fleet&as&of ASIA&PACIFIC Fleet&as&of OEM Mar&31&2014 OEM Mar&31&2014 OEM Mar&31&2014 Bombardier ////////////////// 591 Bombardier /////////////////// 85 Bombardier ////////////////// 249 Cessna/Citation ////////////////// 808 Cessna/Citation ////////////////// 107 Cessna/Citation ////////////////// 221 Dassault/Falcon ////////////////// 156 Dassault/Falcon /////////////////// 62 Dassault/Falcon //////////////////// 79 Embraer ////////////////// 176 Embraer /////////////////// 17 Embraer //////////////////// 63 Gulfstream ////////////////// 176 Gulfstream /////////////////// 60 Gulfstream ////////////////// 231 Hawker/Beechcraft ////////////////// 353 Hawker/Beechcraft ////////////////// 111 Hawker/Beechcraft ////////////////// 162 Other ////////////////// 168 Other /////////////////// 18 Other //////////////////// 67 Total &&&&&&&&&&&&&&&& 2,428 Total &&&&&&&&&&&&&&&&&& 460 Total &&&&&&&&&&&&&&& 1,072 World business jet fleet was 19,651 jets on

16 JETNET iq: The Industry Business Jet Fleet by Size Category Total#Fleet:#North#America# Total#Fleet:#Europe# Total#Fleet:#Former#Soviet#Union# 28%# 15%# 37%# 7%# 17%# 1%# 4%# 8%# 17%# 10%# 10%# Total#Fleet:#LaEn#America#&#Caribbean# 1%# 2%# 4%# 7%# 6%# 7%# 19%# 16%# 19%# 8%# 2%# 8%# 14%# Total#Fleet:#Middle#East# 13%# 9%# 11%# 3%# 8%# 3%# 14%# 18%# 7%# 23%# Total#Fleet:#Africa# 10%# 2%# 4%# 11%# 19%# 14%# 8%# 8%# 24%# 2%# 4%# 14%# 12%# 10%# 7%# 9%# 13%# 29%# 8%# 16%# Total#Fleet:#Asia#Pacific# 11%# 6%# 14%# 14%# 3%# 14%# 17%# 7%# 14%# Airliner'Jets' Large'Long0Range'Jet' Super'Mid0Size'Jet' Super'Light'Jet' Very'Light'Jet' Large'Ultra'Long0Range'Jet' Large'Jet' Mid0Size'Jet' Light'Jet'

17 JETNET iq: The Industry Business Jet Deliveries (units) Jet"Deliveries" 1274" Down 47% 1" 1" 20" 22" 11" 40" Down 48% 556" 18%$CAGR$ 1976,1981$ 473" 465" 397" 323" 305" 287"247" 302" 333" 288" 324" 297" 253" 212" 229" 211" 211"220"220" 264"263" 251"251" 265" 254" 173" 141" 118" 84" 317"307" 21%$CAGR$ 1996,2001$ 501" 436" 637" Down 31% 747" 788" 727" 18%$CAGR$ 2003,2008$ 546" 588" 707" 854" 1094" 926" 797" 682" 672"670" 133" 1957" 1960" 1961" 1962" 1963" 1964" 1965" 1966" 1967" 1968" 1969" 1970" 1971" 1972" 1973" 1974" 1975" 1976" 1977" 1978" 1979" 1980" 1981" 1982" 1983" 1984" 1985" 1986" 1987" 1988" 1989" 1990" 1991" 1992" 1993" 1994" 1995" 1996" 1997" 1998" 1999" 2000" 2001" 2002" 2003" 2004" 2005" 2006" 2007" 2008" 2009" 2010" 2011" 2012" 2013" 2014" New business jet delivery units have remained relatively flat for 3 years; New business jet delivery value in 2013 was about $21B based on equipped list prices

18 JETNET iq: The Industry Business Turboprop Deliveries (units) 903" Down"" 68%" 20%$CAGR:$ $ 775" 1" 8" 5" 10"13" 5" 16" 27"48" 29"17"26"31" 110" 162" 301" 202" 198" 187" 158" 169" 337" 315" 297" 403" 452" 608" 588" 566" 329" 285" 416" 286" 209" 210" 229" 258" 234" 235" 215" 14%$ CAGR:$ $ 152" 273" 266" 256" 382" 340" 326" 306" 14%$ CAGR:$ $ 294" 283" 354"353" 436" 418" 527" 460" Down"" 38%" 416" 391" 359" 329" 73" 1952" 1953" 1954" 1955" 1956" 1957" 1958" 1959" 1960" 1961" 1962" 1963" 1964" 1965" 1966" 1967" 1968" 1969" 1970" 1971" 1972" 1973" 1974" 1975" 1976" 1977" 1978" 1979" 1980" 1981" 1982" 1983" 1984" 1985" 1986" 1987" 1988" 1989" 1990" 1991" 1992" 1993" 1994" 1995" 1996" 1997" 1998" 1999" 2000" 2001" 2002" 2003" 2004" 2005" 2006" 2007" 2008" 2009" 2010" 2011" 2012" 2013" 2014" New turboprop deliveries showed a 26% upswing from 2012 to 2013

19 JETNET iq: The Industry Pre-Owned Business Aircraft Inventory #3,000## #2,500## #2,000## #1,500## #1,000## #500## #)#### Business#Jets#and#Turboprops#for#sale# Apr#2006#)##Apr#2014# 0%# 2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013# 2014# ##of#jets#for#sale# ##of#turboprops#for#sale# %#of#jets#for#sale# %#of#turboprops#for#sale# Jets0Available0for0Sale0as0%0of0World0Fleet0(as0of0April01) Business0Jets 12.4% 11.3% 11.5% 17.4% 15.6% 14.5% 13.8% 13.1% 12.1% Turboprop 9.3% 8.0% 8.3% 12.0% 11.1% 10.7% 9.2% 7.8% 7.9% The percentage of pre-owned jets for sale is approaching pre-recession levels 20%# 18%# 16%# 14%# 12%# 10%# 8%# 6%# 4%# 2%#

20 JETNET iq: The Industry Pre-Owned Business Jet Inventory 24.0%' 22.0%' AircraK'for'sale'as'a'%'of'total'fleet' Apr'2006'4'Apr'2014' 20.0%' 18.0%' 16.0%' 14.0%' 12.0%' 10.0%' 8.0%' 6.0%' Mid4size'Jets' 14.9%' Light'Jets,'13.4%' Very'Light'Jets' 12.2%' Total'Jets' 12.1%' Super'Mid4size'Jets' 11.8%' Large'Jets' 11.2%' Airliner'Business' 10.1%' Large'Long'Range' 9.7%' Large'Ultra4Long'Range' 8.9%' Total'Turboprops' 7.9%' Super'Light'Jets' 7.8%' 4.0%' 2.0%' 0.0%' 2007' 2008' 2009' 2010' 2011' 2012' 2013' 2014' The percentage of pre-owned jets for sale is approaching pre-recessionary levels

21 JETNET iq: The Industry U.S. Business Jet Utilization Business!Jet!OperaEons!recorded!by!FAA!('000!cycles/month)! FAA)BUSINESS)JET)OPERATIONS)4)FEB)2014 TOTAL)CYCLES Trailing 12 Months Total Cycles 324,792 4,101,712 Change vs. prior month -3.9% 0.3% Change vs. prior year 3.5% 3.1% Change vs. 24 months ago 0.1% 3.2% DOMESTIC)CYCLES Total Domestic Cycles 269,818 3,416,030 Change vs. prior month -2.9% 0.2% Change vs. prior year 3.2% 3.1% Change vs. 24 months ago -0.7% 2.5% INTERNATIONAL)CYCLES Total International Cycles 54, ,682 Change vs. prior month -8.7% 0.4% Change vs. prior year 5.3% 2.6% Change vs. 24 months ago 4.4% 7.0%!317!!!292!!!285!!!283!!!289!!!295!!!283!!!283!!!274!!!265!!!248!!!248!!!252!!!239!!!241!!!240!!!239!!!231!!!225!!!297!!!287!!!290!!!291!!!272!!!253!!!242!!!244!!!243!!!338!!!343!!!336!!!321!!!326!!!331!!!314!!!319!!!315!!!319!!!277!!!269!!!268!!!267!!!266!!!291!!!274!!!273!!!307!!!311!!!278!!!262!!!263!!!259!!!358!!!336!!!342!!!330!!!319!!!297!!!286!!!279!!!280!!!343!!!333!!!329!!!334!!!291!!!282!!!278!!!282!!!270!!!311!!!312!!!257!!!259!!!349!!!344!!!335!!!324!!!286!!!288!!!279!!!272!!!328!!!322!!!271!!!267!!!351!!!340!!!340!!!324!!!320!!!312!!!314!!!297!!!289!!!281!!!271!!!265!!!256!!!262!!!368!!!348!!!349!!!348!!!342!!!335!!!338!!!337!!!336!!!338!!!338!!!286!!!285!!!291!!!294!!!276!!!282!!!285!!!313!!!325!!!280!!!277!!!278!!!270!!!61!!!53!!!47!!!43!!!40!!!46!!!43!!!42!!!44!!!44!!!41!!!43!!!45!!!44!!!45!!!46!!!48!!!52!!!49!!!52!!!62!!!52!!!53!!!56!!!44!!!53!!!62!!!57!!!56!!!62!!!50!!!49!!!51!!!51!!!52!!!52!!!54!!!53!!!53!!!56!!!56!!!57!!!55!!!53!!!53!!!54!!!59!!!56!!!55!!!52!!!62!!!57!!!59!!!59!!!57!!!55!!!52!!!55!!!56!!!60!!!60!!!55!! Jan!2009! Feb!2009! Mar!2009! Apr!2009! May!2009! Jun!2009! Jul!2009! Aug!2009! Sep!2009! Oct!2009! Nov!2009! Dec!2009! Jan!2010! Feb!2010! Mar!2010! Apr!2010! May!2010! Jun!2010! Jul!2010! Aug!2010! Sep!2010! Oct!2010! Nov!2010! Dec!2010! Jan!2011! Feb!2011! Mar!2011! Apr!2011! May!2011! Jun!2011! Jul!2011! Aug!2011! Sep!2011! Oct!2011! Nov!2011! Dec!2011! Jan!2012! Feb!2012! Mar!2012! Apr!2012! May!2012! Jun!2012! Jul!2012! Aug!2012! Sep!2012! Oct!2012! Nov!2012! Dec!2012! Jan!2013! Feb!2013! Mar!2013! Apr!2013! May!2013! Jun!2013! Jul!2013! Aug!2013! Sep!2013! Oct!2013! Nov!2013! Dec!2013! Jan!2014! Feb!2014! Total& Domes+c& Interna+onal& Annualized U.S. business jet cycles through Feb are up 3.1% over the prior year

22 JETNET iq: The Industry European Business Aircraft Utilization!1,852!!!1,856!!!2,366!!!2,362!!!2,236!!!2,175!!!2,035!!!1,938!!!1,797!!!1,546!!!1,539!! Average!Daily!Flights!F!Business!AviaHon!in!Europe! March!2011!F!March!2014!!1,867!!!1,675!!!1,781!!!2,322!!!2,289!!!2,048!!!2,096!!!1,981!!!1,880!!!1,701!!!1,504!!!1,427!!!2,257!!!2,218!!!2,003!!!2,101!!!1,779!!!2,000!!!1,734!!!1,842!!!1,664!!!1,690!!!1,446!!!1,497!!!1,731!!1,651!! Mar!2011! Apr!2011! May!2011! Jun!2011! Jul!2011! Aug!2011! Sep!2011! Oct!2011! Nov!2011! Dec!2011! Jan!2012! Feb!2012! Mar!2012! Apr!2012! May!2012! Jun!2012! Jul!2012! Aug!2012! Sep!2012! Oct!2012! Nov!2012! Dec!2012! Jan!2013! Feb!2013! Mar!2013! Apr!2013! May!2013! Jun!2013! Jul!2013! Aug!2013! Sep!2013! Oct!2013! Nov!2013! Dec!2013! Jan!2014! Feb!2014! Mar!2014! Change!over!Previous!Year!! Mar!2012! 0.6%! Apr!2012! F3.8%! May!2012! F5.8%! Jun!2012! Jul!2012! Aug!2012! F1.9%! F3.1%! Sep!2012! F2.7%! F3.0%! F2.2%! F6.3%! Annualized European cycles are down 0.1% for business aviation over the prior year Oct!2012! Nov!2012! Dec!2012! F5.3%! F7.7%! Jan!2013! Feb!2013! F0.7%! Mar!2013! F7.1%! Apr!2013! F0.1%! May!2013! Jun!2013! Jul!2013! F2.2%! F2.8%! F3.1%! Aug!2013! Sep!2013! Oct!2013! 0.9%! 0.2%! Nov!2013! F2.0%! Dec!2013! 1.3%! Jan!2014! Feb!2014! Mar!2014! F0.5%! F0.1%! F0.7%! F0.8%!

23 JETNET iq: The Survey JETNET iq Quarterly Surveys Multilingual owner / operator surveys Utilization patterns and expectations Brand perceptions Purchase criteria / inhibitors Purchase / selling intentions New product preferences Special topics of interest (examples) New products The environment China, etc. JETNET iq Surveys: Quarterly, multilingual, worldwide

24 JETNET iq: The Survey JETNET iq Survey Respondents Number!of!completed!respondents! Number!of!countries!!503!!!506!!!506!!!518!!!506!!!507!! 507!!524!!!507!! 512!!507!! 506! 508! Middle! East! 2.6%! Regional!locaCon!of!respondents! Q1!2011!L!Q1!2014! Asia!Pacific! 8.3%! Africa! 4.7%!!55!!!56!!!49!!!50!!!59!!!55!!!60!!!63!!!50!!!54!!!46!! 52! 52! Q1!2011! Q2!2011! Q3!2011! Q4!2011! Q1!2012! Q2!2012! Q3!2012! Q4!2012! Q1!2013! Q2!2013! Q3!2013! Q4!2013! Q1!2014! Europe! 9.7%! LaCn! America!&! Caribbean! 21.3%! North! America! 53.5%! JETNET iq Surveys: Since Q1 2011, >6,500 respondents from 115 countries

25 JETNET iq: The Survey Survey Respondents Location By Aircraft Base Location North&America& La.n&America&&& Caribbean& Europe& 13.0%% 0.0%% 1.8%% 5.3%% 4.3%% 6.4%%0.8%% 3.7%% 1.9%% Q Survey Inner circle (World Fleet) Africa& Middle&East& 11.6%% 14.7%% World%Fleet% by%geographic% region% 60.9%% Asia&Pacific& 13.0%% 62.6%% Former&Soviet&Union& Outer circle (Respondent Fleet)

26 JETNET iq: The Survey Survey Respondents Fleet By Aircraft Size Category Q Survey Very%Light%Jet% Light%Jet% 17%# 8%# Inner circle (World Fleet) Super%Light%Jet% Mid1Size%Jet% Super%Mid1Size%Jet% Large%Jet% Large%Long1Range%Jet% Large%Ultra%Long1Range%Jet% Airline%Business%Jet% Airliner%Jet%Converted% Single1Engine%Turbo1Prop% MulB1Engine%Turbo1Prop% 1%# 1%# 9%# 7%# 9%# 27%# 10%# 9%# World#Fleet# by#size# Category# 15%#1%# 3%# 5%# 15%# 5%# 6%# 4%# 10%# 8%# 15%# 10%# 5%# Outer circle (Respondent Fleet)

27 JETNET iq: The Survey Survey Respondents Fleet By Aircraft Manufacturer Q Survey Bombardier* Cessna* 2%$ 3%$ 9%$ 17%$ Inner circle (World Fleet) Dassault*Falcon* Embraer* Gulfstream* Hawker*Beechcra;* Pilatus* Piper* Other* 19%$ 11%$ 13%$ 5%$ 4%$ World$Fleet$ by$ Manufacturer$ 27%$ 25%$ 6%$ 2%$ 7%$ 25%$ 14%$ 2%$ 9%$ Outer circle (Respondent Fleet)

28 JETNET iq: The Survey Survey Respondents Roles By Job Title Vice'President'/' Director'of' AviaFon' 4%' Pilot' 7%' Head'of' maintenance' 5%' Dispatcher'/' Scheduler'/'Flight' Coordinator' 13%' Chief'Pilot'/'head' of'flight' operafons' 32%' Business'owner'/' shareholder'/' partner' 16%' General' Manager'/' Director' 9%' CEO'/'COO'/' CFO'/'President'/' Managing' Director' 12%' Vice'President'/' Senior' Management' 2%' Q Survey AviaFon' Professionals' 61%' Senior' Management'/' General' Manager' 39%'

29 JETNET iq: The Survey Survey Respondents Roles By Involvement in Last Fixed-Wing Turbine Aircraft Purchase Q Survey I"was"the" decision> maker" 23%" I"influenced" the" purchase" decision" 39%" I"was"not" involved"in" the" purchase" decision" 11%" I"provided" informa7on" suppor7ng" the" purchase" decision" 27%"

30 JETNET iq: The Survey Survey Respondents Flight Operations Regional Average Utilization per Aircraft in Prior 12 Months!500!! Average!flight!hours!per!year!! Q Survey!450!!!442!!!434!! Average!number!of!flight!hours!per!aircraJ!!400!!!350!!!300!!!250!!!200!!!150!!!100!!!345!!!334!!!284!!!373!!!50!!!"!!!! Total! North! America! La6n! America!&! Caribbean! Europe! Rest!of! World! Weighted!by! Fleet!Size!

31 JETNET iq: The Survey Survey Respondents Flight Operations By Average Passengers per Aircraft in Prior 12 Months Q Survey Average!Passengers!by!Region! Average!Passengers!by!Size!!5.64!!!5.48!!!4.28!!!3.87!!!3.79!!!4.28!!!4.44!!!3.91!!!4.28!!!4.72!! All!Regions! North! America! La<n!America! &!Caribbean! Europe! Rest!of!World! All! Respondents! Turboprop! Operators! Small!Jet! Operators! Medium!Jet! Operators! Large!Jet! Operators!

32 JETNET iq: The Survey Survey Respondents Sentiment Current Market Sentiment Q Survey Op5mism$about$the$industry$ All$Respondents$ Where is the Business Avia:on Industry In the Current Business Cycle? Not$yet$ reached$the$ low$point$ Past$the$low$ point$ 46%$ 20%$ 34%$ At$the$low$point$

33 JETNET iq: The Survey Aircraft Purchase Inhibitors Top 3 Inhibitors Weighted Average Purchase%inhibitors% Q Survey Do&not&need&addi4onal&aircra:& Uncertainty&about&economy&/&regulatory&environment& Purchase&price&or&tradeKup&cost&too&high& 11.7%% 12.8%% 19.7%% Inability&to&sell&current&aircra:& Decline&in&business&ac4vity& Opera4ng&cost&too&high& No&compelling&aircra:&that&meet&my&organiza4on's&needs& 9.8%% 9.4%% 8.0%% 7.1%% Availability&of&financing&or&capital&for&purchase& Using&alterna4ve&flight&solu4ons&(charter,&commercial,&jet&card,&frac4onal,& etc.)& Will&get&a&be7er&deal&on&a&new&business&aircra:&if&I&wait&a&year& Public&opinion&of&business&avia4on& Other& 6.6%% 5.1%% 4.9%% 3.6%% 1.5%% Which of the following factors are most likely to prevent or delay your organiza?on from purchasing a business aircran over the next 12 months?

34 JETNET iq: The Survey Aircraft Utilization Next 12 and Months versus Prior 12 Months Compared#with#your#past#12#months,#what#changes#do#you#expect#in#your# total#annual#flight#hours#over#the#next#24#months?# Up#30%#or#more# Up#25%# Up#20%# 4.9%# 3.5%% 3.3%# 1.6%% 6.7%# 5.8%% Weighted# average#for#next# 12N24#mths#=# 7.0%# Up#15%# Up#10%# Up#5%# 8.7%# 5.8%% 17.1%# 16.7%% 14.9%# 15.5%% Weighted#average# for#next#12#mths#=## 4.9%# No#change# 37.1%# 42.4%% Down#5%# 1.5%# 1.6%% Down#10%# 0.7%# 2.0%% Down#15%# Down#20%# 0.0%# 0.5%% 0.7%# 0.9%% Next%12224%months% Next%12%months% Down#25%# 0.2%# 0.2%% Down#30%#or#more# 0.4%# 1.5%% Do#not#know#/# uncertain# 3.8%# 2.0%% Respondents expect to fly 4.9% more hours in the next 12 months vs. prior 12 months

35 JETNET iq: The Survey Brand Reputations Aircraft Manufacturers on a 1-10 Scale, where 10 = Highest 70%# Brand#reputa<on#=#Business#aircra>#OEMs# 60%# %#of#responses# 50%# 40%# 30%# 20%# 10%# 0%# 1# 2# 3# 4# 5# 6# 7# 8# 9# 10# Uncertain# Bombardier#Challenger# Bombardier#Global# Bombardier#Learjet# Cessna#Cita<on# Cessna#Caravan# Dassault#Falcon# Embraer#Legacy# Embraer#Lineage# Embraer#Phenom# Gulfstream# Hawker# Beechcra># Gulfstream, Beechcraft and Falcon are the top 3 rated business aircraft manufacturers

36 JETNET iq: The Survey Brand Reputations Jet Engine Manufacturers on a 1-10 Scale, where 10 = Highest Rolls-Royce is the top-rated jet engine manufacturer brand, slightly ahead of Pratt & Whitney Canada

37 JETNET iq: The Survey Brand Reputations Turboprop Engine Manufacturers on a 1-10 Scale - 10 = Highest 70.0%$ 60.0%$ General'Electric' Honeywell' Pra1'&'Whitney'Canada' Rolls9Royce' 50.0%$ %$of$respondents$ 40.0%$ 30.0%$ 20.0%$ 10.0%$ 0.0%$ 1$ 2$ 3$ 4$ 5$ 6$ 7$ 8$ 9$ 10$ Uncertain$ Pratt & Whitney Canada is the dominant turboprop engine manufacturer brand, followed by Rolls-Royce

38 JETNET iq: The Survey Aircraft Brands providing most innovative design Hawker*and* Beechcra?* 2%* Pilatus* 4%* Hondajet* 10%* Gulfstream* 19%* Other* 11%* Bombardier* 12%* Cessna* 11%* Dassault* Falcon* 19%* Embraer* 12%* Which business aircrap brand do you think provides the most innovarve designs? According to Q survey respondents, Gulfstream and Dassault Falcon provide the most innovative aircraft designs

39 JETNET iq: The Survey Aircraft Brands providing most innovative design 14.8%& Top&3&models&3&worldwide&& "Most&innovaNve&design"& 11.2%& 9.9%& GULFSTREAM&G3650& FALCON&5X& HONDAJET& Which business aircrap model do you think provides the most innovarve design? According to Q survey respondents, the Gulfstream 650 is the most innovative design, followed by the Falcon 5X and the HondaJet

40 JETNET iq: The Forecast Business Jet Delivery History & Forecast 1200" 1000" Deliveries"(units)" 800" 600" 400" 200" 0" 1957" 1960" 1962" 1964" 1966" 1968" 1970" 1972" 1974" 1976" 1978" 1980" 1982" 1984" 1986" 1988" 1990" 1992" 1994" 1996" 1998" 2000" 2002" 2004" 2006" 2008" 2010" 2012" 2014F" Personal"Jet" Very"Light"Jet" Light"Jet" Super"Light"Jet" Mid<Size"Jet" Super"Mid<Size"Jet" Large"Jet" Large"Long<Range"Jet" Large"Ultra"Long<Range"Jet" Airline"Business"Jet"

41 About JETNET iq Launched in January 2011, JETNET iq is a forecasting and premium advisory service for the business aviation market, designed to help customers Know More. Available on an annual subscription basis, JETNET iq has 3 main elements: 1) JETNET iq REPORTS are the definitive analytical reference for the business aviation industry, incorporating state-of-the-industry analyses, proprietary aircraft owner/operator surveys, and detailed 10-year delivery and fleet forecasts, updated quarterly. 2) JETNET iq SUMMITS provide fast-paced thought-provoking insights into the state of the industry, and unique networking opportunities. 3) JETNET iq RESEARCH serves the needs of clients with customized research and analysis requirements on a project-by-project basis. For more information on JETNET iq, please log on to or contact Rolland Vincent, JETNET iq Creator / Director at or rollie@jetnet.com.

42 About JETNET Since 1988, JETNET has delivered the most comprehensive and reliable business aircraft research to its exclusive clientele of aviation professionals worldwide. JETNET is the ultimate source for information and intelligence on the worldwide business, commercial, and helicopter aircraft fleet and marketplace, comprised of more than 100,000 airframes. Headquartered in its state-of-the-art facility in Utica, NY, JETNET offers comprehensive user-friendly aircraft data via real-time internet access or regular updates. For more information on JETNET LLC, please log on to jetnet.com or contact Paul Cardarelli, JETNET Vice President of Sales, at (USA) or for International inquiries, please contact Karim Derbala, JETNET Managing Director of Global Sales, at or