Life Cycle Cost of Ownership Analysis With 12-Month Budget and Residual Value Analysis

Life Cycle Cost of Ownership Analysis
With 12-month Budget and

Residual Value Analysis
December 28, 2005
Prepared Exclusively for:
SAMPLE REPORT
Prepared by:
Conklin & de Decker

62B Cranberry Highway, Orleans, Massachusetts 02653
Telephone: (508) 255-5975
Aircraft Life Cycle Costs
The Life Cycle Cost adds the acquisition cost (or current resale value for aircraft already owned) with the direct and fixed operating
costs over a given period of time. Then it subtracts the residual (resale) value of the aircraft at the end of the program. In addition, the
life cycle cost approach takes into account the impact of aging on the cost of maintenance, as well as the cost of expensive overhauls
and inspections for older aircraft. In short, it provides a realistic total cost of owning and operating an aircraft over the length of the
program.
Many significant variables affect the costs involved in owning and operating business aircraft. Some manufacturers no longer publish
their costs. And the numbers from different sources are very difficult to compare. We apply the same ground rules to each aircraft and
try to eliminate as many variables as possible. No numbers are optimized. These are conservative, representative figures measured
under comparable conditions.
All maintenance costs assume that the manufacturers' recommended maintenance programs will be followed. And the work will be
done by a good, qualified service facility. They include both scheduled and unscheduled maintenance.
We try to reduce the variables affecting costs in order to present consistent comparisons. They are compilations. No one should rely
on a single report for the cost experience they will have when owning or operating a particular aircraft. We make no representation or
warranty to that effect. Due to significant variables, the cost experiences with any individual aircraft can differ materially from this
report.
© 2005 Conklin & de Decker. (508) 255-5975

Life Cycle Costs

Life Cycle Cost
Life Cycle Cost Analysis

For: SAMPLE Report 28-Dec-05
Aircraft: Eurocopter AS 365N2
with ( 2 ) Turbomeca Arriel 1C2
Year: 2001
Acquisition: Finance (Level Payments)
Program length: 20 Years
Currency: $
Type of operation: Corporate

Base of operation: New Jersey
The following state taxes or fees are not included in the analysis but may be applicable.
See the 'State Tax Guide for General Aviation' published by Conklin & de Decker for details.
- State Sales/Use Tax = 6.00%
Copyright 2006, Conklin and de Decker Associates, Inc. PO Box 1142, Orleans, MA 02653 (508) 255 5975 www.conklindd.com
Life Cycle Cost
Executive Summary 28-Dec-05
For: SAMPLE Report
Aircraft: Eurocopter AS 365N2 20 Years Per Hour

Engines: ( 2 ) Arriel 1C2 Cash Expenses 2.75 % Inflation
Year: 2001 Acquisition $ (1,000,000)
Variable Cost (12,377,478) (2,063)
Purchase price: $ 5,000,000 Fixed Cost (17,556,594)
Overhead -
Finance/Lease Cost (5,823,725)
Depreciation: MACRS - 5 Years
Acquisition: Finance (Level Payments) Income
Down payment: $ 1,000,000 Charter Revenue $ -
Ave Payments/Year: $ 582,372 Residual Value (Adjusted) 2,920,316
Program length: 20 Years Cash Flow

Type of operation: Corporate Pre Tax $ (33,837,481) (5,640)
After Tax (30 % Tax Rate) (23,686,237) (3,948)
Total flight hours: 6000 Hours Negative Cash Flow 19 Years
Net Present Value

Program (15 % ROI) $ (8,095,672)
Life Cycle Cost
ANNUAL COST SUMMARY Version 6.00 Software Copyright 2006

Annual Operating Cost Budget
SAMPLE Report Type of Operation: Corporate 28-Dec-05
3,500,000
Make/Model: 2001 Eurocopter AS 365N2 with ( 2 ) Arriel 1C2 3,000,000
Program Length: 20 Years Acquisition: Finance (Level Payments) 2,500,000
Block Speed: 124 Kts Currency: $ Exchange Rate: 1 / US$ 2,000,000

Program Data: Acquisition Cost - Finance:
Hrs/Year 300 Down Payment $ 1,000,000 1,500,000
Cycles/Hour 2.00 State Sales Tax -
Residual Value 35 % Training/Spares/Other -
1,000,000
MX Labor Rate 75.00 /MH Refurb/Modification -
Fuel Cost 4.04 /GAL Trade-in -
500,000
Total $ 1,000,000
Airframe Status:
Total Hours 1,750 Lease/Finance Payments: -
Total Cycles 3,500 Avg. Finance Cost/Y $ 582,372 1 3 5 7 9 11 13 15 17 19
Year Manufacture 2001 Final Payment - Year
Lease Cost/Yr -
Avg Inflation: 2.75% /Year
Insured Value: $ 5,000,000
Life Cycle Cost Total: Program Total Cost/Year Cost/Hour Cost/N. Mi.
Annual Maintenance Cost
Owned Aircraft, Current Value $ -
Total Acquisition Cost $ 1,000,000 2,500,000
Total Direct Cost $ 12,377,478 618,874 2,063 16.64

2,000,000
Total Fixed Cost $ 17,556,594 877,830
Residual Value (Adjusted) $ (2,920,316)

1,500,000
Total Finance/Lease Cost $ 5,823,725 291,186
Ops + Admin Overhead $ - -

1,000,000
Total Cost 33,837,481 1,691,874 5,640 45.48
Annual Budget: Year 1 $ 1,532,239 Year 11 $ 1,428,769
Starting: Year 2 1,552,987 Year 12 1,419,928 500,000
Year 3 1,662,503 Year 13 1,442,787
Year 4 1,667,524 Year 14 1,436,041
Year 5 2,708,439 Year 15 3,090,103
Year 6 1,730,684 Year 16 1,582,504 -
Year 7 1,764,134 Year 17 1,594,896 1 3 5 7 9 11 13 15 17 19
Year 8 1,801,786 Year 18 1,880,507 Year
Year 9 1,914,722 Year 19 1,769,542
Year 10 1,878,388 Year 20 1,899,313
Copyright 2006 Conklin and de Decker Associates, Inc. Orleans, MA 02653 (508) 255 5975 www.conklindd.com
Life Cycle Cost
FINANCIAL ANALYSIS SUMMARY Version 6.00 Software Copyright 2006

After Tax Cash Flow From Operations
SAMPLE Report Type of Operation: Corporate (Excludes Acquisition Cost of Aircraft)
Make/Model: 2001 Eurocopter AS 365N2 28-Dec-05 1,000,000
Program Length: 20 Years Acquisition: Finance (Level Payments) 500,000
Currency: $ 0
Financial Information: Depreciation: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Capital Gains Tax: 30.0% (500,000)
Corp Tax Rate: 30.0% Method: MACRS - 5 Years
Desired ROI: 15.0% Term: N/A (1,000,000)
Interest Rate: 8.00% Residual: N/A
Inflation Rate: 2.75% (1,500,000)
Ops Overhead: 0% + $ - /Yr
Admin Overhead: 0% + $ - /Yr (2,000,000)
Revenue: $ 0 /Flt Hr + $ - /Mo
Revenue Hours: 0 Hrs/Yr
(2,500,000)
Flight Hours: 300 Hrs/Yr Residual Value: $ 2,920,316
Acquisition Cost: $ 1,000,000 - Year
Expenses + Tax Impact + After Tax
Revenue Depreciation Depreciation Cash Flow
Acquisition Cost 0 $ - (1,000,000) - (1,000,000)
1 - (2,532,239) 1,678,009 (854,230)
2 - (3,152,987) 2,457,455 (695,532)
3 - (2,622,503) 1,650,969 (971,534) Cumulative Total Discounted Cash Flow
4 - (2,243,524) 1,145,326 (1,098,198)
5 - (3,284,439) 1,448,991 (1,835,448) 0
6 - (2,018,684) 771,940 (1,246,744)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
7 - (1,764,134) 397,477 (1,366,657)
(1,000,000)
8 - (1,801,786) 397,836 (1,403,950)
9 - (1,914,722) 419,873 (1,494,849)
(2,000,000)
10 - (1,878,388) 396,146 (1,482,242)
11 - (1,428,769) 428,631 (1,000,138)
12 - (1,419,928) 425,978 (993,950) (3,000,000)
13 - (1,442,787) 432,836 (1,009,951)
14 - (1,436,041) 430,812 (1,005,229) (4,000,000)
15 - (3,090,103) 927,031 (2,163,072)
16 - (1,582,504) 474,751 (1,107,753) (5,000,000)
17 - (1,594,896) 478,469 (1,116,427)
18 - (1,880,507) 564,152 (1,316,355) (6,000,000)
19 - (1,769,542) 530,863 (1,238,680)
20 2,920,316 (1,899,313) (306,301) 714,702 (7,000,000)
Total: $ 2,920,316 (41,757,797) 15,151,244 (23,686,237)
(8,000,000)
Total Acquisition Cost 1,000,000
-
(9,000,000)
Investment: $ 1,000,000
Year
Present Value: $ (7,095,672) Net Present Value: $ (8,095,672)
Copyright 2006, Conklin and de Decker Associates, Inc. Orleans, MA 02653 (508) 255 5975 www.conklindd.com
Life Cycle Cost
ANNUAL COST (Page 1) 28-Dec-05 Version 6.00 Software Copyright 2006
SAMPLE Report Corporate
Make/Model: 2001 Eurocopter AS 365N2 with ( 2 ) Arriel 1C2 Acquisition: Finance (Level Payments) Utilization: 300 Hours/Year
Aircraft Value:$ 5,000,000 Residual Value:$ 2,920,316 Currency: $ Exchange Rate 1 / US$
Variable Cost Year 1 2 3 4 5 6 7 8 9 10 11 12
Fuel $ 106,656 109,589 112,603 115,699 118,881 122,150 125,509 128,961 132,507 136,151 139,895 143,743
Fuel Additives/Lubricants 3,200 3,288 3,378 3,471 3,566 3,665 3,765 3,869 3,975 4,085 4,197 4,312
Maintenance Labor 70,241 83,921 93,989 101,004 106,513 112,248 117,257 121,469 126,839 132,413 139,268 146,400
Parts 68,700 82,081 91,928 98,789 104,177 109,787 114,686 118,806 124,058 129,509 136,214 143,190
Inspections 19,890 - 22,889 24,597 399,057 27,335 28,555 - 30,889 32,246 - 35,652
Engine Restoral - - - - 475,219 - - 22,429 - - 107,162 -
Engine Guaranteed Mx Plan - - - - - - - - - - - -
Parts Guaranteed Mx Plan - - - - - - - - - - - -
Airframe Guaranteed Mx Plan - - - - - - - - - - - -
Avionics Guaranteed Mx Plan - - - - - - - - - - - -
Component Overhaul (All) 4,896 - 12,061 - 124,606 - - 5,920 - - 14,984 -
Life Limited Components (All) 3,264 208 32,737 11,505 43,885 2,334 - 4,191 77,935 2,471 4,281 39,588
Other Services
Flight Hour Cost - - - - - - - - - - - -
Fixed Cost - - - - - - - - - - - -
Landing/Parking Fees 3,000 3,083 3,167 3,254 3,344 3,436 3,530 3,627 3,727 3,830 3,935 4,043
Crew Expenses - - - - - - - - - - - -
Small Supplies 3,600 3,699 3,801 3,905 4,013 4,123 4,236 4,353 4,473 4,596 4,722 4,852
Total Variable Cost $ 283,446 285,868 376,554 362,226 1,383,260 385,078 397,540 413,625 504,403 445,300 554,658 521,780
Fixed Cost Year 1 2 3 4 5 6 7 8 9 10 11 12
Salaries
Pilot/Flight Crew $ 142,400 146,316 150,340 154,474 158,722 163,087 167,572 172,180 176,915 181,780 186,779 191,916
Maintenance Technicians 70,000 71,925 73,903 75,935 78,023 80,169 82,374 84,639 86,967 89,358 91,816 94,341
Other - - - - - - - - - - - -
Benefits 63,720 65,472 67,273 69,123 71,024 72,977 74,984 77,046 79,164 81,342 83,578 85,877
Hangar 25,500 26,201 26,922 27,662 28,423 29,204 30,008 30,833 31,681 32,552 33,447 34,367
Insurance
Hull 250,000 256,875 263,939 271,197 278,655 286,318 294,192 302,282 310,595 319,137 327,913 336,930
Liability 26,600 27,332 28,083 28,855 29,649 30,464 31,302 32,163 33,047 33,956 34,890 35,849
Miscellaneous
Training Pilot/Maintenance 38,000 39,045 40,119 41,222 42,356 43,520 44,717 45,947 47,210 48,509 49,843 51,213
Management Fee - - - - - - - - - - - -
Annual Use Tax (Lease Only) - - - - - - - - - - - -
Property Tax - - - - - - - - - - - -
Brokerage Fee - - - - - - - - - - - -
New Int/Paint/Avionics - - - - - - - - - - - -
Modernization 35,000 35,963 36,951 37,968 39,012 40,085 41,187 42,320 43,483 44,679 45,908 47,170
Nav/Weather Services 1,000 1,028 1,056 1,085 1,115 1,145 1,177 1,209 1,242 1,277 1,312 1,348
Comp. Maintenance Service 2,200 2,261 2,323 2,387 2,452 2,520 2,589 2,660 2,733 2,808 2,886 2,965
Refurbishing 12,000 12,330 12,669 13,017 13,375 13,743 14,121 14,510 14,909 15,319 15,740 16,173
Other - - - - - - - - - - - -
Total Fixed Cost $ 666,420 684,747 703,577 722,925 742,806 763,233 784,222 805,788 827,947 850,716 874,110 898,149
Finance/Lease Cost $ 582,372 582,372 582,372 582,372 582,372 582,372 582,372 582,372 582,372 582,372 - -
Owned Aircraft - Current Value -
Total Acquisition Cost/Resale 1,000,000 - - - - - - - - - - -
Final Payment/Loan Payoff - - - - - - - - - - - -
Operations Overhead - - - - - - - - - - - -
Administrative Overhead (G&A) - - - - - - - - - - - -
Total Cost $ 2,532,239 1,552,987 1,662,503 1,667,524 2,708,439 1,730,684 1,764,134 1,801,786 1,914,722 1,878,388 1,428,769 1,419,928
Cost/Flight Hour $
Variable 945 953 1,255 1,207 4,611 1,284 1,325 1,379 1,681 1,484 1,849 1,739
Variable + Fixed 3,166 3,235 3,600 3,617 7,087 3,828 3,939 4,065 4,441 4,320 4,763 4,733
Total Annual Cost 8,441 5,177 5,542 5,558 9,028 5,769 5,880 6,006 6,382 6,261 4,763 4,733
Copyright 2006, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.com
Life Cycle Cost
(Page 2) ANNUAL COST

2001 Eurocopter AS 365N2
13 14 15 16 17 18 19 20 Total Year
147,695 151,757 155,930 160,219 164,625 169,152 173,803 178,583 $ 2,794,110 Fuel
4,431 4,553 4,678 4,807 4,939 5,075 5,214 5,357 83,823 Fuel Additives
153,819 162,698 171,948 181,584 195,403 208,548 222,269 236,587 2,884,418 Maintenance Labor
150,446 159,130 168,178 177,602 191,118 203,975 217,395 231,399 2,821,167 Parts
37,459 - 686,087 44,221 - 50,787 54,128 - 1,493,792 Inspections
- - 623,321 - - 170,094 - - 1,398,225 Engine Restoral
- - - - - - - - - Engine Guaranteed Mx Plan
- - - - - - - - - Parts Guaranteed Mx Plan
- - - - - - - - - Airframe Guaranteed Mx Plan
- - - - - - - - - Avionics Guaranteed Mx Plan
- - 170,597 - - - - 19,128 352,192 Component Overhaul (All)
16,950 287 125,413 3,061 - 5,497 - 3,242 376,849 Life Limited Components (All)
Other Services
- - - - - - - - - Flight Hour Cost
- - - - - - - - - Fixed Cost
4,154 4,269 4,386 4,507 4,631 4,758 4,889 5,023 78,592 Landing/Parking Fees
- - - - - - - - - Crew Expenses
4,985 5,122 5,263 5,408 5,557 5,709 5,866 6,028 94,311 Small Supplies
519,940 487,816 2,115,801 581,408 566,271 823,594 683,565 685,346 $ 12,377,478 Total Variable Cost
13 14 15 16 17 18 19 20 Total Year
Salaries
197,193 202,616 208,188 213,913 219,796 225,840 232,051 238,432 $ 3,730,509 Pilot/Flight Crew
96,935 99,601 102,340 105,154 108,046 111,017 114,070 117,207 1,833,818 Maintenance Technicians
- - - - - - - - - Other
88,238 90,665 93,158 95,720 98,352 101,057 103,836 106,692 1,669,298 Benefits
35,312 36,283 37,281 38,306 39,359 40,442 41,554 42,697 668,034 Hangar
Insurance
346,196 355,716 365,499 375,550 385,877 396,489 407,392 418,596 6,549,349 Hull
36,835 37,848 38,889 39,958 41,057 42,186 43,347 44,539 696,851 Liability
Miscellaneous
52,622 54,069 55,556 57,084 58,653 60,266 61,924 63,627 995,501 Training Pilot/Maintenance
- - - - - - - - - Management Fee
- - - - - - - - - Annual Use Tax (Lease Only)
- - - - - - - - - Property Tax
- - - - - - - 98,125 98,125 Brokerage Fee
- - - - - - - - - New Int/Paint/Avionics
48,467 49,800 51,170 52,577 54,023 55,508 57,035 58,603 916,909 Modernization
1,385 1,423 1,462 1,502 1,544 1,586 1,630 1,674 26,197 Nav/Weather Services
3,047 3,130 3,216 3,305 3,396 3,489 3,585 3,684 57,634 Comp. Maintenance Service
16,617 17,074 17,544 18,026 18,522 19,031 19,555 20,093 314,369 Refurbishing
- - - - - - - - - Other
922,848 948,226 974,302 1,001,095 1,028,626 1,056,913 1,085,978 1,213,967 $ 17,556,594 Total Fixed Cost
- - - - - - - - $ 5,823,725 Finance/Lease Cost
-
- - - - - - - (2,920,316) (1,920,316) Aircraft Cash Payment/Resale
- - - - - - - - - Final Payment/Loan Payoff
- - - - - - - - - Operations Overhead
- - - - - - - - - Administrative O'head (G&A)
1,442,787 1,436,041 3,090,103 1,582,504 1,594,896 1,880,507 1,769,542 (1,021,003) $ 33,837,481 Total Annual Cost
$ Cost/Flight Hour
1,733 1,626 7,053 1,938 1,888 2,745 2,279 2,284 Variable
4,809 4,787 10,300 5,275 5,316 6,268 5,898 6,331 Variable + Fixed
4,809 4,787 10,300 5,275 5,316 6,268 5,898 (3,403) Total Annual Cost
Life Cycle Cost
FINANCIAL ANALYSIS (Page 1) 28-Dec-05 Version 6.00 Software Copyright 2006
Make/Model: 2001 Eurocopter AS 365N2 Acquisition: Finance (Level Payments) Utilization: 300 Hour/Year
Depreciation: MACRS - 5 Years Currency: $ Exchange Rate: 1 / US$
Year 0 1 2 3 4 5 6 7 8 9 10
Revenue:
Sales (Flt Hr) $ - - - - - - - - - -
Sales (Month) - - - - - - - - - -
Aircraft Sale - - - - - - - - - -
Total $ - - - - - - - - - -
Cost Without Tax Impact:

Total Acquisition Cost $ (1,000,000) - - - - - - - - - -
Principal Repayment - (272,210) (294,803) (319,272) (345,771) (374,470) (405,551) (439,211) (475,665) (515,145) (557,902)
Final Payment - - - - - - - - - -
Total $ (1,000,000) (272,210) (294,803) (319,272) (345,771) (374,470) (405,551) (439,211) (475,665) (515,145) (557,902)
Cost With Tax Impact:

Sales Tax $ - - - - - - - - - -
Use Tax (Lease Only) - - - - - - - - - -
Property Tax - - - - - - - - - -
Variable Cost (283,446) (285,868) (376,554) (362,226) (1,383,260) (385,078) (397,540) (413,625) (504,403) (445,300)
Fixed Cost (666,420) (684,747) (703,577) (722,925) (742,806) (763,233) (784,222) (805,788) (827,947) (850,716)
Operations Overhead - - - - - - - - - -
Admin Overhead (G&A) - - - - - - - - - -
Depreciation (1,000,000) (1,600,000) (960,000) (576,000) (576,000) (288,000) - - - -
Interest (310,163) (287,569) (263,101) (236,601) (207,903) (176,822) (143,161) (106,707) (67,227) (24,470)
Lease Payments - - - - - - - - - -
Total $ (2,260,029) (2,858,184) (2,303,231) (1,897,753) (2,909,969) (1,613,133) (1,324,923) (1,326,120) (1,399,577) (1,320,486)
Tax Impact:
Income Tax 678,009 857,455 690,969 569,326 872,991 483,940 397,477 397,836 419,873 396,146
Capital Gains Tax - - - - - - - - - -
Total $ 678,009 857,455 690,969 569,326 872,991 483,940 397,477 397,836 419,873 396,146
After Tax -
Total Cash Flow: $ (1,000,000) (854,230) (695,532) (971,534) (1,098,198) (1,835,448) (1,246,744) (1,366,657) (1,403,950) (1,494,849) (1,482,242)
Operating Cash Flow: $ (854,230) (695,532) (971,534) (1,098,198) (1,835,448) (1,246,744) (1,366,657) (1,403,950) (1,494,849) (1,482,242)
Present Value of Total Cash Flow: $ (742,809) (525,922) (638,799) (627,898) (912,542) (539,002) (513,777) (458,954) (424,929) (366,388)
Value of Owned Aircraft: $ -
Net Present Value: $ (1,000,000) (1,742,809) (2,268,731) (2,907,530) (3,535,428) (4,447,970) (4,986,972) (5,500,749) (5,959,703) (6,384,632) (6,751,020)
Copyright 2006, Conklin and de Decker Associates, Inc., Orleans, MA. (508) 255 5975 www.conklindd.com
Life Cycle Cost
(Page 2) FINANCIAL ANALYSIS
11 12 13 14 15 16 17 18 19 20 Total Year
Revenues
- - - - - - - - - - $ - Sales (Flt Hr)
- - - - - - - - - - - Sales (Month)
- - - - - - - - - 2,920,316 2,920,316 Aircraft Sale
- - - - - - - - - 2,920,316 $ 2,920,316 Total
Cost Without Tax Impact:

- - - - - - - - - - $ (1,000,000) Acquisition Cost
- - - - - - - - - - (4,000,000) Principal Repayment
- - - - - - - - - - - Final Payment
- - - - - - - - - - $ (5,000,000) Total
Cost With Tax Impact:

- - - - - - - - - - $ - Sales Tax
- - - - - - - - - - - Use Tax (Lease Only)
- - - - - - - - - - - Property Tax
(554,658) (521,780) (519,940) (487,816) (2,115,801) (581,408) (566,271) (823,594) (683,565) (685,346) (12,377,478) Variable Cost
(874,110) (898,149) (922,848) (948,226) (974,302) (1,001,095) (1,028,626) (1,056,913) (1,085,978) (1,213,967) (17,556,594) Fixed Cost
- - - - - - - - - - - Operations Overhead
- - - - - - - - - - - Admin Overhead (G&A)
- - - - - - - - - - (5,000,000) Depreciation
- - - - - - - - - - (1,823,725) Interest
- - - - - - - - - - - Lease Payments
(1,428,769) (1,419,928) (1,442,787) (1,436,041) (3,090,103) (1,582,504) (1,594,896) (1,880,507) (1,769,542) (1,899,313) $ (36,757,797) Total
Tax Impact:
428,631 425,978 432,836 430,812 927,031 474,751 478,469 564,152 530,863 569,794 11,027,339 Income Tax
- - - - - - - - - (876,095) (876,095) Capital Gains Tax
428,631 425,978 432,836 430,812 927,031 474,751 478,469 564,152 530,863 (306,301) $ 10,151,244 Total
After Tax -
(1,000,138) (993,950) (1,009,951) (1,005,229) (2,163,072) (1,107,753) (1,116,427) (1,316,355) (1,238,680) 714,702 $ (23,686,237) Total Cash Flow
(1,000,138) (993,950) (1,009,951) (1,005,229) (2,163,072) (1,107,753) (1,116,427) (1,316,355) (1,238,680) (2,205,614) $ (25,606,553) Operating Cash Flow
(214,973) (185,776) (164,145) (142,068) (265,830) (118,380) (103,745) (106,368) (87,036) 43,668 $ (7,095,672) Present Value
(6,965,993) (7,151,769) (7,315,914) (7,457,982) (7,723,812) (7,842,191) (7,945,936) (8,052,304) (8,139,341) (8,095,672) $ (8,095,672) Net Present Value
Life Cycle Cost
Cost per Hour 28-Dec-05
SAMPLE Report Type of Operation: Corporate
Make/Model: 2001 Eurocopter AS 365N2 with ( 2 ) Arriel 1C2 Acquisition: Finance (Level Payments)
Program Length: 20 Years Currency: $ Exchange Rate: 1 / US$
Direct Cost (Average): Fixed Cost (Average):

Salaries
Fuel $ 466 Pilot/Flight Crew $ 622
Fuel Additives/Lubricants 14 Maintenance Technicians 306
Maintenance Labor 481 Other -
Parts 470 Benefits 278
Inspections 249 Hangar 111
Engine Restoral 233 Insurance
Engine Guaranteed Mx Plan - Hull 1,092
Parts Guaranteed Mx Plan - Liability 116
Airframe Guaranteed Mx Plan - Miscellaneous
Avionics Guaranteed Mx Plan - Training Pilot/Maintenance 166
Component Overhaul (All) 59 Management Fee -
Life Limited Components (All) 63 Annual Use Tax (Lease Only) -
Other Services - Property Tax -
Flight Hour Cost - Brokerage Fee 16
Fixed Cost - New Int/Paint/Avionics -
Landing/Parking Fees 13 Modernization 153
Crew Expenses - Nav/Weather Services 4
Small Supplies 16 Comp. Maintenance Service 10
Refurbishing 52
Other -
Total Direct Cost per Hour - 20 Year Average: $ 2,063 Total Fixed Cost per Hour - 20 Year Average: $ 2,926
Program Data: Other Costs (Average):
Inflation per Year % 2.75 Finance/Lease Cost $ 971

Program Length (Years) 20 Aircraft Cash Payment/Resale (320)
Utilization (Hours/Year) 300 Final Payment/Loan Payoff -
Fuel Cost per Gallon $ 4.04 Operations Overhead -
Maintenance Labor Cost per Hour $ 75.00 Administrative Overhead (G & A) -
Maint. Labor Hours/Flight Hour (Ave) 6.41
Block Speed (Kts) 124 Total Annual Cost per Hour - 20 Year Average: $ 5,640
Costs shown exclude all taxes and depreciation Total Annual Cost per NM - 20 Year Average: $ 45.48
Copyright 2006, Conklin de Decker Associates, Inc. Orleans, MA (508) 255 5975 www.conklindd.com
Life Cycle Cost and Budget Analysis
Maintenance Input Data Eurocopter AS 365N2 with 2 Turbomeca Arriel 1C2

Version 6.00 Software Copyright 2006
Labor MH/FH Parts $ / FH Database Date:
Airframe: 2.93 MH/FH Airframe: 231.28 /FH January 2005
Engine: 0.40 Engine: 15.00
Avionics: 0.30 Avionics: 20.00
Guaranteed Maintenance Plans

Engine:
Parts:
Avionics:
Airframe:
Inspections Insp. Cost Inspection Cycle Frequency Time Since Last Inspection
Name: (Current Cost) Start (Hrs) Hours Cycles Years Hours Cycles Months
Recurring 1 "T/A " $ 19,890 500 1.5 250 5.90
2 "G" 306,000 5000 10 1,750 59.90
3
4
5
6
7
8
9
10
11
12
One Time 1
2
Component Overhaul Overhaul Cost Prem Removals Frequency Time Since Overhaul
Name: (Current Cost) /1000 HR Hours Cycles Years Hours Cycles Months
1 MR Gearbox $ 74,664 3000 1,750
2 TR Gearbox 11,424 2500 1,750
3 Rotor Shaft 9,180 3000 1,750
4 MR Servo 6,120 3000 1,750
5 MR Servo (2) 9,996 3000 1,750
6 TR Servo 8,364 3000 1,750
7 Fuel Boost Pump (4) 4,896 2000 1,750
8 S/G (2) 3,468 3000 1,750
9
10
11
12
13
14
15
16
17
18
19
20
Life Limited Parts Parts Cost Prem Removals Frequency Time Since Last Replacement
Name: Part Number (Current Cost) /1000 HR Hours Cycles Years Hours Cycles Months
1 MR Blades (4) $ 414,732 20000 1,750
2 Starflex Body 29,172 2600 1,750
3 MR Sleeves (8) 52,122 4400 1,750
4 Spher Thrust B'ring (4) 26,112 3000 1,750
5 Thrust B'ring Bolt (8) 1,734 1500 250
6 Freq Adapt Bolt(12) 1,938 4200 1,750
7 MR Head Bolts (16) 918 1000 750
8 MR Blade Pin (8) 19,482 6100 1,750
9 Rotor Mast B'ring Spacer 3,468 8000 1,750
10 Gimbal Half (2) 8,670 4400 1,750
11 Servo Attach Fittings (3) 12,954 8000 1,750
12 MGB Roving Bar (2) 10,098 3000 1,750
13 TR Driveshaft Front 10,200 6000 1,750
14 TR Driveshaft Center 16,728 6000 1,750
15 TR Driveshaft Rear 10,404 2800 1,750
16 Fire Cartridges (2) 1,836 2.5 29.90
17 Fuel Low Battery 202 2 11.90
18 Fuel Filter Element 510 1000 750
19 20000 Hr items 62,424 20000 1,750
20 10000 Hr items 24,786 10000 1,750
21
22
23
24
25
26
27
28
29
30
Engine Restoral/Heavy Maintenance Total Cost Prem Removals Frequency Time Since O'haul (Hours)
Turbomeca Name: Part Number (Current Cost) /1000 HR Hours Cycles Years Engine #1 Engine #2
Inspection 1 Overhaul -- $ 156,250 3000 1,750 1,750
2 Accessories -- 56,925 3000 1,750 1,750
3 --
4 --
5 --
Replacement 1 Axial Compressor 28,600 14000
2 Cent Impeller 25,025 14000
3 #1 NG Disc 11,300 10000
4 #2 NG Disc 11,300 10000
5 Injection Wheel 9,275 8000
6 Free Turbine Disc 18,250 10000
7
8
9
10
Maintenance Input Data Eurocopter AS 365N2 Database Date: January 2005
Input Data Notes: 0
Currency: $
Exchange Rate = 1 / US$
Customer: SAMPLE Report Type of Operation: Corporate
Date of Analysis: 28-Dec-05

Type of Analysis: Financial Analysis
Engines: ( 2 ) Arriel 1C2 Acquisition Method: Finance (Level Payment)
Current Current Status: Depreciation Method: MACRS - 5 Years

Total Time Since New: 1750
Year Manufactured: 2001
Total Cycles Since New: 3500
Base of Operation: New Jersey Finance Terms:

Number of Years 10
Program Length (Years): 20 Annual Interest Rate 8.000%
Total Hours (Hrs/Yr): 300
Cycles per Flt Hr (Airframe): 2.00 Final Payment $ -
Cycles per Flt Hr (Engine): 2.00 Annual Payments: $ 582,372
Acquisition Cost - Finance: Remaining Balance $ -

Down Payment $ 1,000,000
State Sales Tax - Insured Value: $ 5,000,000
Training/Spares/Other -
Refurb/Modification - Resale Value (Base): 58.6%
Trade-in -
Total 1,000,000 Brokerage Fee: $ 58,603
Revenue Data: Financial Data:

Charter Hours per Year 0 Inflation Rate 2.75%
Charter Revenue per Month $ - Desired ROI 15.0%
Charter Revenue per Hour $ - Corp Tax Rate 30.0%
Capital Gains Tax 30.0%
Variable Cost Input:
Fuel Cost $ 4.04 Fuel Consumption (Gallon) 88
Maintenance Labor Rate $ 75.00 Other $ -
Fixed Cost Input Hangar Cost $ 25,500

Salaries/Aircraft Nav & Weather Service 1,000 *
Crew/Aircraft Ratio 1.0 -
Pilots/Flight Crew $ 142,400 Crew Expenses -
Maintenance Technicians $ 70,000 * Landing/ATC Fees 10 *
Other $ - Small Supplies/Catering 12 *
Benefits (% of Salaries): 30% Other Fixed Cost $ -
Training Cost $ 38,000 * Insurance: Hull (% of Insured Value) 5.00%
Operations Overhead 0% Insurance: Liability $ 26,600
Administrative Overhead 0% Modernization $ 35,000
Operations Overhead $ - Refurbishing Cost $ 12,000
Administrative Overhead $ - Computer Maint Mgmt System $ 2,200
* The data shown is based on user input
Copyright 2006, Conklin and de Decker Associates, Inc. Orleans, MA (508) 255 5975 www.conklindd.com
12-Month Budget

Budget Analysis
Operating Budget

Engine: ( 2 ) Turbomeca Arriel 1C2
Registration:
Year: 2001
Budget Year Start: Dec - 2005
Currency: $

Budget Analysis
BUDGET SUMMARY Version 6.00 Software Copyright 2006

Monthly Budget
SAMPLE Report Budget Year Starting Dec - 2005
200,000
Eurocopter AS 365N2 2001 with ( 2 ) Arriel 1C2

150,000
Registration Number: 28-Dec-05
100,000
Currency: $ Exchange Rate: 1 / US$
Program Data: Acquisition Cost - Finance: 50,000 Revenue
Hrs/Month 25 Down Payment $ 1,000,000
Expense
Cycles/Hour 2.0 State Sales Tax -
Training/Spares/Other - - Profit/Loss
MX Labor Rate 75.00 /MH Refurb/Modification - 1 2 3 4 5 6 7 8 9 10 11 12
Fuel Cost 4.04 /GAL Trade-in - (50,000)
Total $ 1,000,000
Airframe Status: (100,000)
Total Hours 1750 Lease/Finance Payments:
Year Manufacture 2001 Avg. Finance Cost/Y $ 582,372
(150,000)
Total Cycles 3500 Final Payment -
Lease Cost/Yr -
Avg Inflation: 2.75% /Year (200,000)
Insured Value: $ 5,000,000 Month
Budget Total: Total for Year Average/Month Cost/Hour
Revenue $ 0 0 -
Variable Cost $ 263,556 43,926 879
Fixed Cost $ 666,420 55,535

Monthly Maintenance Budget
Total Finance/Lease Cost $ 582,372 48,531
20,000
Ops + Admin Overhead $ 0 0
18,000
Total Expenses $ 1,512,349 147,992 5,920 16,000
14,000
Operating Profit/(Loss) $ (1,512,349) (147,992) (5,920)
Annual Budget: Month Revenues Expenses Profit/(Loss) 12,000
(No Depreciation) Dec-2005 $ 0 143,018 (143,018) 10,000 Maint. Exp.
Jan-2006 0 122,182 (122,182)
8,000
Feb-2006 0 122,182 (122,182)
Mar-2006 0 122,182 (122,182) 6,000
May-2006 0 122,182 (122,182) 4,000
Jun-2006 0 122,182 (122,182)
2,000
Jul-2006 0 141,182 (141,182)
Aug-2006 0 122,182 (122,182) -
Sep-2006 0 122,182 (122,182) 1 2 3 4 5 6 7 8 9 10 11 12
Oct-2006 0 128,506 (128,506) Month
Nov-2006 0 122,182 (122,182)
Dec-2006 0 122,182 (122,182)
Copyright 2006, Conklin and de Decker Associates, Inc. Orleans, MA 02653 (508) 255 5975 www.conklindd.com
Budget Analysis
MONTHLY BUDGET Dec - 05 through Nov - 06 Version 6.00 Software Copyright 2006 28-Dec-05
Make/Model: 2001 Eurocopter AS 365N2 Utilization: 300 Hours/Year Revenue Houss 0 Hours/Year
Aircraft Value:$ 5,000,000 Acquisition: Finance (Level Payments) Currency: $ Exchange Rate 1 / US$
Revenue Month Dec - 05 Jan - 06 Feb - 06 Mar - 06 May - 06 Jun - 06 Jul - 06 Aug - 06 Sep - 06 Oct - 06 Nov - 06 Dec - 06 Total
Hourly Revenue $ - - - - - - - - - - - - $ -
Monthly Revenue - - - - - - - - - - - - -
Total Revenue - - - - - - - - - - - - 0
Variable Cost Month Dec - 05 Jan - 06 Feb - 06 Mar - 06 May - 06 Jun - 06 Jul - 06 Aug - 06 Sep - 06 Oct - 06 Nov - 06 Dec - 06 Total
Fuel $ 8,888 8,888 8,888 8,888 8,888 8,888 8,888 8,888 8,888 8,888 8,888 8,888 $ 106,656
Fuel Additives/Lubricants 267 267 267 267 267 267 267 267 267 267 267 267 3,200
Maintenance Labor 5,853 5,853 5,853 5,853 5,853 5,853 5,853 5,853 5,853 5,853 5,853 5,853 70,241
Parts 5,725 5,725 5,725 5,725 5,725 5,725 5,725 5,725 5,725 5,725 5,725 5,725 68,700
Inspections - - - - - - - - - - - - -
Engine Restoral - - - - - - - - - - - - -
Engine Guaranteed Mx Plan - - - - - - - - - - - - -
Parts Guaranteed Mx Plan - - - - - - - - - - - - -
Airframe Guaranteed Mx Plan - - - - - - - - - - - - -
Avionics Guaranteed Mx Plan - - - - - - - - - - - - -
Component Overhaul (All) - - - - - - - - - 4,896 - - 4,896
Life Limited Components (All) 1,836 - - - - - - - - 1,428 - - 3,264
Other Services - - - - - - - - - - - - -
Flight Hour Cost - - - - - - - - - - - - -
Fixed Cost - - - - - - - - - - - - -
Landing/Parking Fees 250 250 250 250 250 250 250 250 250 250 250 250 3,000
Crew Expenses - - - - - - - - - - - - -
Small Supplies 300 300 300 300 300 300 300 300 300 300 300 300 3,600
Total Variable Cost $ 23,119 21,283 21,283 21,283 21,283 21,283 21,283 21,283 21,283 27,607 21,283 21,283 $ 263,556
Fixed Cost Month Dec - 05 Jan - 06 Feb - 06 Mar - 06 May - 06 Jun - 06 Jul - 06 Aug - 06 Sep - 06 Oct - 06 Nov - 06 Dec - 06 Total
Salaries
Pilot/Flight Crew $ 11,867 11,867 11,867 11,867 11,867 11,867 11,867 11,867 11,867 11,867 11,867 11,867 $ 142,400
Maintenance Technicians 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 5,833 70,000
Other - - - - - - - - - - - - -
Benefits 5,310 5,310 5,310 5,310 5,310 5,310 5,310 5,310 5,310 5,310 5,310 5,310 63,720
Hangar 2,125 2,125 2,125 2,125 2,125 2,125 2,125 2,125 2,125 2,125 2,125 2,125 25,500
Insurance
Hull 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 250,000
Liability 2,217 2,217 2,217 2,217 2,217 2,217 2,217 2,217 2,217 2,217 2,217 2,217 26,600
Miscellaneous
Training Pilot/Maintenance 19,000 - - - - - 19,000 - - - - - 38,000
Management Fee - - - - - - - - - - - - -
Annual Use Tax (Lease Only) - - - - - - - - - - - - -
Property Tax - - - - - - - - - - - - -
Brokerage Fee - - - - - - - - - - - - -
New Int/Paint/Avionics - - - - - - - - - - - - -
Modernization 2,917 2,917 2,917 2,917 2,917 2,917 2,917 2,917 2,917 2,917 2,917 2,917 35,000
Nav/Weather Services 83 83 83 83 83 83 83 83 83 83 83 83 1,000
Comp. Maintenance Service 183 183 183 183 183 183 183 183 183 183 183 183 2,200
Refurbishing 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Other - - - - - - - - - - - - -
Total Fixed Cost $ 71,368 52,368 52,368 52,368 52,368 52,368 71,368 52,368 52,368 52,368 52,368 52,368 $ 666,420
Finance/Lease Cost $ 48,531 48,531 48,531 48,531 48,531 48,531 48,531 48,531 48,531 48,531 48,531 48,531 $ 582,372
Operations Overhead - - - - - - - - - - - - -
Administrative Overhead (G&A) - - - - - - - - - - - - -
Total Cost $ 143,018 122,182 122,182 122,182 122,182 122,182 141,182 122,182 122,182 128,506 122,182 122,182 $ 1,512,349
Operating Profit (Loss) $ (143,018) (122,182) (122,182) (122,182) (122,182) (122,182) (141,182) (122,182) (122,182) (128,506) (122,182) (122,182) $ (1,512,349)
Budget Analysis
12 Month Maintenance Budget - Inspections and Component Overhauls Dec - 05 through Nov - 06 Version 6.00 Software Copyright 2006
SAMPLE Report Corporate 28-Dec-05 At Start: Total Time 1,750

2001 Eurocopter AS 365N2 with ( 2 ) Arriel 1C2 Total Years 5
Currency: $ Exchange Rate: 1 / US$ Utilization: 300 Hrs/Yr Total Landings 3,500
Maintenance Cost Summary Month Dec - 05 Jan - 06 Feb - 06 Mar - 06 May - 06 Jun - 06 Jul - 06 Aug - 06 Sep - 06 Oct - 06 Nov - 06 Dec - 06 Total
Maintenance Labor $ 5,853 5,853 5,853 5,853 5,853 5,853 5,853 5,853 5,853 5,853 5,853 5,853 $ 70,241
Parts 5,725 5,725 5,725 5,725 5,725 5,725 5,725 5,725 5,725 5,725 5,725 5,725 68,700
Inspections -
Engine Restoral -
Engine Guaranteed Mx Plan -
Parts Guaranteed Mx Plan -
Airframe Guaranteed Mx Plan -
Avionics Guaranteed Mx Plan -
Component Overhaul (All) 4,896 4,896
Life Limited Components (All) 1,836 1,428 3,264
Total Maintenance Cost $ 13,414 11,578 11,578 11,578 11,578 11,578 11,578 11,578 11,578 17,902 11,578 11,578 $ 147,101
Inspections Month Dec - 05 Jan - 06 Feb - 06 Mar - 06 May - 06 Jun - 06 Jul - 06 Aug - 06 Sep - 06 Oct - 06 Nov - 06 Dec - 06 Total
1- "T/A "
2- "G"
3-
4-
5-
6-
7-
8-
9-
10 -
11 -
12 -
13 -
14 -
Total Inspection Cost $ $ -

Component Overhaul Month Dec - 05 Jan - 06 Feb - 06 Mar - 06 May - 06 Jun - 06 Jul - 06 Aug - 06 Sep - 06 Oct - 06 Nov - 06 Dec - 06 Total
1- MR Gearbox
2- TR Gearbox
3- Rotor Shaft
4- MR Servo
5- MR Servo (2)
6- TR Servo
7- Fuel Boost Pump (4) 1 1
8- S/G (2)
9-
10 -
11 -
12 -
13 -
14 -
15 -
16 -
17 -
18 -
19 -
20 -
Total Component Overhaul Cost $ 4,896 $ 4,896
Budget Analysis
12 Month Maintenance Budget - Life Limited Parts and Engine Over Dec - 05 through Nov - 06 Version 6.00 Software Copyright 2006
SAMPLE Report Corporate 28-Dec-05 At Start: Total Time 1,750
2001 Eurocopter AS 365N2 with ( 2 ) Arriel 1C2 Total Years 5

Currency: $ Exchan 1 / US$ Utilization: 300 Hrs/Yr Total Landings 3,500
Life Limited Part Replacement Month Dec - 05 Jan - 06 Feb - 06 Mar - 06 May - 06 Jun - 06 Jul - 06 Aug - 06 Sep - 06 Oct - 06 Nov - 06 Dec - 06 Total
Name Part Number
1- MR Blades (4)
2- Starflex Body
3- MR Sleeves (8)
4- Spher Thrust B'rin
5- Thrust B'ring Bolt
6- Freq Adapt Bolt(1
7- MR Head Bolts (1 1 1
8- MR Blade Pin (8)
9- Rotor Mast B'ring
10 - Gimbal Half (2)
11 - Servo Attach Fittin
12 - MGB Roving Bar
13 - TR Driveshaft Fro
14 - TR Driveshaft Cen
15 - TR Driveshaft Rea
16 - Fire Cartridges (2 1 1
17 - Fuel Low Battery
18 - Fuel Filter Elemen 1 1
19 - 20000 Hr items
20 - 10000 Hr items
21 -
22 -
23 -
24 -
25 -
26 -
27 -
28 -
29 -
30 -
Total Life Limited Part Cost $ 1,836 1,428 $ 3,264

Engine Restoral Month Dec - 05 Jan - 06 Feb - 06 Mar - 06 May - 06 Jun - 06 Jul - 06 Aug - 06 Sep - 06 Oct - 06 Nov - 06 Dec - 06 Total
Overhaul/Inspection
1- Overhaul
2- Accessories
3-
4-
5-
Life Limted PartsPart Number
1- Axial Compressor
2- Cent Impeller
3- #1 NG Disc
4- #2 NG Disc
5- Injection Wheel
6- Free Turbine Disc
7-
8-
9-
10 -
Total Engine Restoral Cost $ $ -
Budget Analysis
20 YEAR BUDGET FORECAST 28-Dec-05 Version 6.00 Software Copyright 2006 Page 1
Make/Model: 2001 Eurocopter AS 365N2 with ( 2 ) Arriel 1C2 Acquisition: Finance (Level Payments) Utilization: 300 Hours/Year
Aircraft Value:$ 5,000,000 Residual Value:$ 2,920,316 Currency: $ Exchange Rate 1 / US$
Revenue Year 1 2 3 4 5 6 7 8 9 10
Starting Dec - 2005 Dec - 2006 Dec - 2007 Dec - 2008 Dec - 2009 Jan - 2011 Jan - 2012 Jan - 2013 Jan - 2014 Jan - 2015
Hourly Revenue - - - - - - - - - -
Monthly Revenue - - - - - - - - - -
Total Revenue - - - - - - - - - -
Variable Cost
Fuel $ 106,656 109,589 112,603 115,699 118,881 122,150 125,509 128,961 132,507 136,151
Fuel Additives/Lubricants 3,200 3,288 3,378 3,471 3,566 3,665 3,765 3,869 3,975 4,085
Maintenance Labor 70,241 83,921 93,989 101,004 106,513 112,248 117,257 121,469 126,839 132,413
Parts 68,700 82,081 91,928 98,789 104,177 109,787 114,686 118,806 124,058 129,509
Inspections 19,890 - 22,889 24,597 399,057 27,335 28,555 - 30,889 32,246
Engine Restoral - - - - 475,219 - - 22,429 - -
Engine Guaranteed Mx Plan - - - - - - - - - -
Parts Guaranteed Mx Plan - - - - - - - - - -
Airframe Guaranteed Mx Plan - - - - - - - - - -
Avionics Guaranteed Mx Plan - - - - - - - - - -
Component Overhaul (All) 4,896 - 12,061 - 124,606 - - 5,920 - -
Life Limited Components (All) 3,264 208 32,737 11,505 43,885 2,334 - 4,191 77,935 2,471
Other Services
Flight Hour Cost - - - - - - - - - -
Fixed Cost - - - - - - - - - -
Landing/Parking Fees 3,000 3,083 3,167 3,254 3,344 3,436 3,530 3,627 3,727 3,830
Crew Expenses - - - - - - - - - -
Small Supplies 3,600 3,699 3,801 3,905 4,013 4,123 4,236 4,353 4,473 4,596
Total Variable Cost $ 283,446 285,868 376,554 362,226 1,383,260 385,078 397,540 413,625 504,403 445,300
Fixed Cost Year 1 2 3 4 5 6 7 8 9 10

Starting Dec - 2005 Dec - 2006 Dec - 2007 Dec - 2008 Dec - 2009 Jan - 2011 Jan - 2012 Jan - 2013 Jan - 2014 Jan - 2015
Salaries
Pilot/Flight Crew $ 142,400 146,316 150,340 154,474 158,722 163,087 167,572 172,180 176,915 181,780
Maintenance Technicians 70,000 71,925 73,903 75,935 78,023 80,169 82,374 84,639 86,967 89,358
Other - - - - - - - - - -
Benefits 63,720 65,472 67,273 69,123 71,024 72,977 74,984 77,046 79,164 81,342
Hangar 25,500 26,201 26,922 27,662 28,423 29,204 30,008 30,833 31,681 32,552
Insurance
Hull 250,000 256,875 263,939 271,197 278,655 286,318 294,192 302,282 310,595 319,137
Liability 26,600 27,332 28,083 28,855 29,649 30,464 31,302 32,163 33,047 33,956
Miscellaneous
Training Pilot/Maintenance 38,000 39,045 40,119 41,222 42,356 43,520 44,717 45,947 47,210 48,509
Management Fee - - - - - - - - - -
Annual Use Tax (Lease Only) - - - - - - - - - -
Property Tax - - - - - - - - - -
Brokerage Fee - - - - - - - - - -
New Int/Paint/Avionics - - - - - - - - - -
Modernization 35,000 35,963 36,951 37,968 39,012 40,085 41,187 42,320 43,483 44,679
Nav/Weather Services 1,000 1,028 1,056 1,085 1,115 1,145 1,177 1,209 1,242 1,277
Comp. Maintenance Service 2,200 2,261 2,323 2,387 2,452 2,520 2,589 2,660 2,733 2,808
Refurbishing 12,000 12,330 12,669 13,017 13,375 13,743 14,121 14,510 14,909 15,319
Other - - - - - - - - - -
Total Fixed Cost $ 666,420 684,747 703,577 722,925 742,806 763,233 784,222 805,788 827,947 850,716
Finance/Lease Cost $ 582,372 582,372 582,372 582,372 582,372 582,372 582,372 582,372 582,372 582,372
Operations Overhead - - - - - - - - - -
Administrative Overhead (G&A) - - - - - - - - - -
Total Cost $ 2,532,239 1,552,987 1,662,503 1,667,524 2,708,439 1,730,684 1,764,134 1,801,786 1,914,722 1,878,388
Operating Profit (Loss) $ (2,532,239) (1,552,987) (1,662,503) (1,667,524) (2,708,439) (1,730,684) (1,764,134) (1,801,786) (1,914,722) (1,878,388)
Budget Analysis
Page 2 20 YEAR BUDGET FORECAST
Corporate
11 12 13 14 15 16 17 18 19 20 Total Revenue
Jan - 2016 Jan - 2017 Jan - 2018 Jan - 2019 Jan - 2020 Jan - 2021 Jan - 2022 Jan - 2023 Jan - 2024 Jan - 2025
- - - - - - - - - - - Hourly Revenue
- - - - - - - - - - - Monthly Revenue
- - - - - - - - - - -
Variable Cost
139,895 143,743 147,695 151,757 155,930 160,219 164,625 169,152 173,803 178,583 $ 2,794,110 Fuel
4,197 4,312 4,431 4,553 4,678 4,807 4,939 5,075 5,214 5,357 83,823 Fuel Additives/Lubricants
139,268 146,400 153,819 162,698 171,948 181,584 195,403 208,548 222,269 236,587 2,884,418 Maintenance Labor
136,214 143,190 150,446 159,130 168,178 177,602 191,118 203,975 217,395 231,399 2,821,167 Parts
- 35,652 37,459 - 686,087 44,221 - 50,787 54,128 - 1,493,792 Inspections
107,162 - - - 623,321 - - 170,094 - - 1,398,225 Engine Restoral
- - - - - - - - - - - Engine Guaranteed Mx Plan
- - - - - - - - - - - Parts Guaranteed Mx Plan
- - - - - - - - - - - Airframe Guaranteed Mx Plan
- - - - - - - - - - - Avionics Guaranteed Mx Plan
14,984 - - - 170,597 - - - - 19,128 352,192 Component Overhaul (All)
4,281 39,588 16,950 287 125,413 3,061 - 5,497 - 3,242 376,849 Life Limited Components (All)
- Other Services
- - - - - - - - - - - Flight Hour Cost
- - - - - - - - - - - Fixed Cost
3,935 4,043 4,154 4,269 4,386 4,507 4,631 4,758 4,889 5,023 78,592 Landing/Parking Fees
- - - - - - - - - - - Crew Expenses
4,722 4,852 4,985 5,122 5,263 5,408 5,557 5,709 5,866 6,028 94,311 Small Supplies
554,658 521,780 519,940 487,816 2,115,801 581,408 566,271 823,594 683,565 685,346 $ 12,377,478
11 12 13 14 15 16 17 18 19 20 Total Fixed Cost

Jan - 2016 Jan - 2017 Jan - 2018 Jan - 2019 Jan - 2020 Jan - 2021 Jan - 2022 Jan - 2023 Jan - 2024 Jan - 2025
Salaries
186,779 191,916 197,193 202,616 208,188 213,913 219,796 225,840 232,051 238,432 $ 3,730,509 Pilot/Flight Crew
91,816 94,341 96,935 99,601 102,340 105,154 108,046 111,017 114,070 117,207 1,833,818 Maintenance Technicians
- - - - - - - - - - - Other
83,578 85,877 88,238 90,665 93,158 95,720 98,352 101,057 103,836 106,692 1,669,298 Benefits
33,447 34,367 35,312 36,283 37,281 38,306 39,359 40,442 41,554 42,697 668,034 Hangar
- Insurance
327,913 336,930 346,196 355,716 365,499 375,550 385,877 396,489 407,392 418,596 6,549,349 Hull
34,890 35,849 36,835 37,848 38,889 39,958 41,057 42,186 43,347 44,539 696,851 Liability
Miscellaneous
49,843 51,213 52,622 54,069 55,556 57,084 58,653 60,266 61,924 63,627 995,501 Training Pilot/Maintenance
- - - - - - - - - - - Management Fee
- - - - - - - - - - - Annual Use Tax (Lease Only)
- - - - - - - - - - - Property Tax
- - - - - - - - - 98,125 98,125 Brokerage Fee
- - - - - - - - - - - New Int/Paint/Avionics
45,908 47,170 48,467 49,800 51,170 52,577 54,023 55,508 57,035 58,603 916,909 Modernization
1,312 1,348 1,385 1,423 1,462 1,502 1,544 1,586 1,630 1,674 26,197 Nav/Weather Services
2,886 2,965 3,047 3,130 3,216 3,305 3,396 3,489 3,585 3,684 57,634 Comp. Maintenance Service
15,740 16,173 16,617 17,074 17,544 18,026 18,522 19,031 19,555 20,093 314,369 Refurbishing
- - - - - - - - - - - Other
874,110 898,149 922,848 948,226 974,302 1,001,095 1,028,626 1,056,913 1,085,978 1,213,967 $ 17,556,594 Total Fixed Cost $
- - - - - - - - - - $ 5,823,725 Finance/Lease Cost

- - - - - - - - - - - Operations Overhead
- - - - - - - - - - - dministrative Overhead (G&A)
1,428,769 1,419,928 1,442,787 1,436,041 3,090,103 1,582,504 1,594,896 1,880,507 1,769,542 (1,021,003) $ 33,837,481 Total Cost $
(1,428,769) (1,419,928) (1,442,787) (1,436,041) (3,090,103) (1,582,504) (1,594,896) (1,880,507) (1,769,542) 1,021,003 $ (33,837,481) Operating Profit (Loss) $
Budget Analysis
20 Year Maintenance Budget - Inspections and Component Overhauls (Page 1) 28-Dec-05 Version 6.00 Software Copyright 2006
SAMPLE Report Corporate Total Time 1,750
Make/Model: 2001 Eurocopter AS 365N2 with ( 2 ) Arriel 1C2 Utilization: 300 Hrs/Yr Total Years 5
Currency: $ Exchange Rate: 1 / US$ Program Length: 20 Years Total Landings 3,500
Maintenance Cost Summary Year 1 2 3 4 5 6 7 8 9 10
Maintenance Labor $ 70,241 83,921 93,989 101,004 106,513 112,248 117,257 121,469 126,839 132,413
Parts 68,700 82,081 91,928 98,789 104,177 109,787 114,686 118,806 124,058 129,509
Inspections 19,890 22,889 24,597 399,057 27,335 28,555 30,889 32,246
Engine Restoral 475,219 22,429
Engine Guaranteed Mx Plan
Parts Guaranteed Mx Plan
Airframe Guaranteed Mx Plan
Avionics Guaranteed Mx Plan
Component Overhaul (All) 4,896 12,061 124,606 5,920
Life Limited Components (All) 3,264 208 32,737 11,505 43,885 2,334 4,191 77,935 2,471
Total Maintenance Cost $ 166,991 166,209 253,605 235,896 1,253,456 251,705 260,499 272,815 359,720 296,639
Inspections Year 1 2 3 4 5 6 7 8 9 10
1- "T/A " 1 1 1 1 1 1 1
2- "G" 1
3-
4-
5-
6-
7-
8-
9-
10 -
11 -
12 -
13 -
14 -
Total Inspection Cost $ 19,890 22,889 24,597 399,057 27,335 28,555 30,889 32,246
Component Overhaul Year 1 2 3 4 5 6 7 8 9 10

1- MR Gearbox 1
2- TR Gearbox 1
3- Rotor Shaft 1
4- MR Servo 1
5- MR Servo (2) 1
6- TR Servo 1
7- Fuel Boost Pump (4) 1 1
8- S/G (2) 1
9-
10 -
11 -
12 -
13 -
14 -
15 -
16 -
17 -
18 -
19 -
20 -
Total Component Overhaul Cost $ 4,896 12,061 124,606 5,920
Budget Analysis
(Page 2) 20 Year Maintenance Budget - Inspections and Component Overhauls

11 12 13 14 15 16 17 18 19 20 Total Year
139,268 146,400 153,819 162,698 171,948 181,584 195,403 208,548 222,269 236,587 $ 2,884,418 Maintenance Labor
136,214 143,190 150,446 159,130 168,178 177,602 191,118 203,975 217,395 231,399 2,821,167 Parts
35,652 37,459 686,087 44,221 50,787 54,128 1,493,792 Inspections
107,162 623,321 170,094 1,398,225 Engine Restoral
- Engine Guaranteed Mx Plan
- Parts Guaranteed Mx Plan
- Airframe Guaranteed Mx Plan
- Avionics Guaranteed Mx Plan
14,984 170,597 19,128 352,192 Component Overhaul (All)
4,281 39,588 16,950 287 125,413 3,061 5,497 3,242 376,849 Life Limited Components (All)
401,909 364,830 358,674 322,115 1,945,544 406,469 386,520 638,901 493,792 490,355 $ 9,326,642 Total Variable Cost
11 12 13 14 15 16 17 18 19 20 Total Inspections
1 1 1 1 1 1 13 "T/A "
1 2 "G"
35,652 37,459 686,087 44,221 50,787 54,128 $ 1,493,792 Total Inspection Cost
11 12 13 14 15 16 17 18 19 20 Total Component Overhaul

1 2 MR Gearbox
1 1 3 TR Gearbox
1 2 Rotor Shaft
1 2 MR Servo
1 2 MR Servo (2)
1 2 TR Servo
1 3 Fuel Boost Pump (4)
1 2 S/G (2)
14,984 170,597 19,128 $ 352,192 Total Component Overhaul Cost
Budget Analysis
20 YearMaintenance Budget - Life Limited Parts and Engine Overhauls (Page 1) 28-Dec-05 Version 6.00 Software Copyright 2006
Currency: $ Exchan 1 / US$ Program Length: 20 Years Total Landings 3,500
Life Limited Part Replacement Year 1 2 3 4 5 6 7 8 9 10 11
Name Part Number
1- MR Blades (4)
2- Starflex Body 1
3- MR Sleeves (8) 1
4- Spher Thrust B'ring (4) 1
5- Thrust B'ring Bolt (8) 1 1
6- Freq Adapt Bolt(12) 1
7- MR Head Bolts (16) 1 1 1 1
8- MR Blade Pin (8)
9- Rotor Mast B'ring Spacer
10 - Gimbal Half (2) 1
11 - Servo Attach Fittings (3)
12 - MGB Roving Bar (2) 1
13 - TR Driveshaft Front
14 - TR Driveshaft Center
15 - TR Driveshaft Rear 1
16 - Fire Cartridges (2) 1 1 1 1 1
17 - Fuel Low Battery 1 1 1 1 1
18 - Fuel Filter Element 1 1 1 1
19 - 20000 Hr items
20 - 10000 Hr items
21 -
22 -
23 -
24 -
25 -
26 -
27 -
28 -
29 -
30 -
Total Life Limited Part Cost $ 3,264 208 32,737 11,505 43,885 2,334 4,191 77,935 2,471 4,281
Engine Restoral Year 1 2 3 4 5 6 7 8 9 10 11
Overhaul/Inspection
1- Overhaul 2
2- Accessories 2
3-
4-
5-
Life Limted Parts Part Number
1- Axial Compressor
2- Cent Impeller
3- #1 NG Disc 2
4- #2 NG Disc 2
5- Injection Wheel 2
6- Free Turbine Disc 2
7-
8-
9-
10 -
Total Engine Restoral Cost $ 475,219 22,429 107,162
Budget Analysis
(Page 2) 20 YearMaintenance Budget - Life Limited Parts and Engine Overhauls

12 13 14 15 16 17 18 19 20 Total Life Limited Part Replacement
MR Blades (4)
1 2 Starflex Body
1 MR Sleeves (8)
1 2 Spher Thrust B'ring (4)
1 1 4 Thrust B'ring Bolt (8)
1 Freq Adapt Bolt(12)
1 1 6 MR Head Bolts (16)
1 1 MR Blade Pin (8)
Rotor Mast B'ring Spacer
1 Gimbal Half (2)
Servo Attach Fittings (3)
1 2 MGB Roving Bar (2)
1 1 TR Driveshaft Front
1 1 TR Driveshaft Center
1 2 TR Driveshaft Rear
1 1 1 8 Fire Cartridges (2)
1 1 1 1 1 10 Fuel Low Battery
1 1 6 Fuel Filter Element
20000 Hr items
10000 Hr items
39,588 16,950 287 125,413 3,061 5,497 3,242 $ 376,849 Total Life Limited Part Cost
12 13 14 15 16 17 18 19 20 Total
2 4
2 4
2 2
2 2
2
2
2
2
623,321 170,094 $ 1,398,225 Total Fixed Cost


Engine:
Parts:
Avionics:
Airframe:
Recurring 1 "T/A " $ 19,890 500 1.5 250 5.90
2 "G" 306,000 5000 10 1,750 59.90
3
4
5
6
7
8
9
10
11
12
One Time 1
2
1 MR Gearbox $ 74,664 3000 1,750
2 TR Gearbox 11,424 2500 1,750
3 Rotor Shaft 9,180 3000 1,750
4 MR Servo 6,120 3000 1,750
5 MR Servo (2) 9,996 3000 1,750
6 TR Servo 8,364 3000 1,750
7 Fuel Boost Pump (4) 4,896 2000 1,750
8 S/G (2) 3,468 3000 1,750
9
10
11
12
13
14
15
16
17
18
19
20
1 MR Blades (4) $ 414,732 20000 1,750
2 Starflex Body 29,172 2600 1,750
3 MR Sleeves (8) 52,122 4400 1,750
6 Freq Adapt Bolt(12) 1,938 4200 1,750
7 MR Head Bolts (16) 918 1000 750
8 MR Blade Pin (8) 19,482 6100 1,750
10 Gimbal Half (2) 8,670 4400 1,750
12 MGB Roving Bar (2) 10,098 3000 1,750
16 Fire Cartridges (2) 1,836 2.5 29.90
19 20000 Hr items 62,424 20000 1,750
20 10000 Hr items 24,786 10000 1,750
21
22
23
24
25
26
27
28
29
30
2 Accessories -- 56,925 3000 1,750 1,750
3 --
4 --
5 --
3 #1 NG Disc 11,300 10000
4 #2 NG Disc 11,300 10000
7
8
9
10
Input Data Notes: 0
Currency: $



Number of Years 10

Trade-in -




with ( 2 ) Turbomeca Arriel 1C2
Year: 2001
Acquisition: Finance (Level Payments)
Program length: 20 Years
Currency: $

Residual Value Summary 28-Dec-05

20-Year Residual Value Trend Adjusted Value
Base Value
For: SAMPLE Report
5,000,000
Aircraft: Eurocopter AS 365N2 with ( 2 ) Arriel 1C2
4,500,000
Year: 2001
4,000,000
Purchase price: $ 5,000,000 Adjusted Residual Value in 2026

3,500,000
Program length: 20 Years Assumptions: 3,000,000

Inflation 2.75%
Acquisition: Finance (Level Payments) Guaranteed Maint. Programs 2,500,000
Down payment: $ 1,000,000 - Engine No
Ave Payments/Year: $ 582,372 - Parts/components No 2,000,000
- Airframe No
Type of operation: Corporate 1,500,000
Analysis:
Flight hours per Year 600 Hours Base $ 2,930,170 1,000,000
Adjustments (Half Time)
500,000
Today: Total Time 1,750 - Major Inspections (9,829)
Total Cycles 3,500 - Component Overhaul (11,022)
-
Age (Yrs) 5 - Life Limited Parts Replacement 20,375
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
In 2026 Total Time 7,750 - Engine Restoral (9,378)
Year
Total Cycles 15,500 Adjusted Residual Value $ 2,920,316
Age (Yrs) 25
Adjusted Value Heavy Maintenance Budget Heavy Mx Budget

Equity Analysis
Remaining Balance
(Components/Engine/Major Inspections)
5,000,000 1800000
4,500,000
1600000
4,000,000
1400000
3,500,000
1200000
3,000,000
1000000
2,500,000
800000
2,000,000
1,500,000 600000
1,000,000 400000
500,000
200000
-
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 0
(500,000) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year Year
Residual Value Analysis - Inspections and Component Overhauls (Page 1) 28-Dec-05 Version 6.00 Software Copyright 2006

Currency: $ Exchange Rate: 1 / US$ Program Length: 20 Years Total Landings 3,500
Program Assumptions: Year 1 2 3 4 5 6 7 8 9 10
Inflation/Year 2.75%
Guaranteed Maint. Plan
- Engine No
- Parts/components No
- Airframe No
Residual Value Summary
Base Aircraft $ 4,400,000 3,904,500 3,800,723 3,688,284 3,566,788 3,493,084 3,412,628 3,325,106 3,292,308 3,255,192
Adjustments
- Major Inspections (20,733) (66,369) (101,916) (139,165) 195,103 172,666 145,959 85,972 52,548 15,996
- Component Overhaul (21,826) (36,076) (39,032) (54,516) 53,783 40,048 25,516 16,075 13 (16,945)
- Life Limited Parts Replacement 194,030 174,074 185,397 175,080 196,118 175,423 151,044 129,381 180,042 155,784
- Engine Restoral (48,832) (105,172) (164,573) (227,162) 182,151 125,859 66,334 25,870 (39,917) (109,341)
Net Residual Value $ 4,502,639 3,870,957 3,680,599 3,442,521 4,193,943 4,007,080 3,801,481 3,582,404 3,484,994 3,300,687
Adjustments - Inspections Year 1 2 3 4 5 6 7 8 9 10

1 - "T/A " 9,921 (3,430) 3,788 12,269 (4,354) 4,523 14,244 (4,965) 5,111 16,085
2 - "G" (30,654) (62,939) (105,704) (151,435) 199,457 168,143 131,715 90,937 47,436 (88)
3- - - - - - - - - - -
4- - - - - - - - - - -
5- - - - - - - - - - -
6- - - - - - - - - - -
7- - - - - - - - - - -
8- - - - - - - - - - -
9- - - - - - - - - - -
10 - - - - - - - - - - -
11 - - - - - - - - - - -
12 - - - - - - - - - - -
13 - - - - - - - - - - -
14 - - - - - - - - - - -
Total Inspection Betterment 9,921 - 3,788 12,269 199,457 172,666 145,959 90,937 52,548 16,085
Total Inspection Detriment (30,654) (66,369) (105,704) (151,435) (4,354) 0 0 (4,965) 0 (88)
Total Inspection Adjustment $ (20,733) (66,369) (101,916) (139,165) 195,103 172,666 145,959 85,972 52,548 15,996
Adjustments - Component Overhau Year 1 2 3 4 5 6 7 8 9 10

1- MR Gearbox (13,689) (21,737) (30,217) (39,148) 34,676 27,078 19,037 10,532 1,546 (7,943)
2- TR Gearbox (3,656) (5,165) 5,307 3,966 2,547 1,047 (538) (2,210) (3,974) (5,833)
3- Rotor Shaft (1,683) (2,673) (3,715) (4,813) 4,263 3,329 2,341 1,295 190 (977)
4- MR Servo (1,122) (1,782) (2,477) (3,209) 2,842 2,220 1,560 863 127 (651)
5- MR Servo (2) (1,833) (2,910) (4,045) (5,241) 4,642 3,625 2,549 1,410 207 (1,063)
6- TR Servo (1,533) (2,435) (3,385) (4,385) 3,884 3,033 2,133 1,180 173 (890)
7- Fuel Boost Pump (4) 2,326 1,635 905 133 (682) (1,542) (2,449) 2,516 1,673 781
8- S/G (2) (636) (1,010) (1,404) (1,818) 1,611 1,258 884 489 72 (369)
9- - - - - - - - - - -
10 - - - - - - - - - - -
11 - - - - - - - - - - -
12 - - - - - - - - - - -
13 - - - - - - - - - - -
14 - - - - - - - - - - -
15 - - - - - - - - - - -
16 - - - - - - - - - - -
17 - - - - - - - - - - -
18 - - - - - - - - - - -
19 - - - - - - - - - - -
20 - - - - - - - - - - -
Total Component Overhaul Betterment 2,326 1,635 6,211 4,098 54,465 41,590 28,503 18,285 3,987 781
Total Component Overhaul Detriment (24,151) (37,711) (45,243) (58,615) (682) (1,542) (2,986) (2,210) (3,974) (17,726)
Total Component Overhaul Adjustment $ (21,826) (36,076) (39,032) (54,516) 53,783 40,048 25,516 16,075 13 (16,945)
(Page 2) Residual Value Analysis - Inspections and Component Overhauls

11 12 13 14 15 16 17 18 19 20 Program Assumptions:
Inflation/Year
Guaranteed Maint. Plan
- Engine
- Parts/components
- Airframe
Residual Value Summary
3,213,545 3,167,145 3,150,383 3,130,304 3,106,738 3,079,508 3,048,431 3,013,316 2,973,965 2,930,170 Base Aircraft
Adjustments
(57,963) (103,897) (154,305) (250,581) 328,921 294,063 211,508 164,532 110,126 (9,829) - Major Inspections
(19,851) (38,301) (57,750) (78,240) 70,783 52,774 33,720 13,579 (7,695) (11,022) - Component Overhaul
131,798 141,564 128,041 96,539 188,324 159,284 125,360 94,945 57,115 20,375 - Life Limited Parts Replacement
(75,392) (149,602) (227,836) (310,260) 226,276 152,094 73,661 160,893 78,095 (9,378) - Engine Restoral
3,192,137 3,016,910 2,838,533 2,587,761 3,921,042 3,737,723 3,492,680 3,447,266 3,211,606 2,920,316 Net Residual Value
11 12 13 14 15 16 17 18 19 20 Inspections
(5,693) 5,900 18,685 (6,651) 6,929 22,058 (7,987) 8,404 27,000 (9,671) "T/A "
(52,270) (109,797) (172,990) (243,931) 321,992 272,005 219,496 156,128 83,126 (158) "G"
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- 5,900 18,685 - 328,921 294,063 219,496 164,532 110,126 -
(57,963) (109,797) (172,990) (250,581) 0 0 (7,987) 0 0 (9,829)
(57,963) (103,897) (154,305) (250,581) 328,921 294,063 211,508 164,532 110,126 (9,829) Total Inspection Adjustment
11 12 13 14 15 16 17 18 19 20 Component Overhaul
(17,955) (28,511) (39,635) (51,348) 45,482 35,517 24,969 13,815 2,027 (10,418) MR Gearbox
7,192 5,543 3,797 1,951 (0) (2,059) (4,232) (6,523) (8,936) 7,651 TR Gearbox
(2,208) (3,505) (4,873) (6,313) 5,592 4,367 3,070 1,699 249 (1,281) Rotor Shaft
(1,472) (2,337) (3,249) (4,209) 3,728 2,911 2,047 1,132 166 (854) MR Servo
(2,404) (3,817) (5,306) (6,874) 6,089 4,755 3,343 1,849 271 (1,395) MR Servo (2)
(2,011) (3,194) (4,440) (5,752) 5,095 3,979 2,797 1,548 227 (1,167) TR Servo
(161) (1,155) (2,204) (3,309) 2,684 1,655 567 (582) (1,795) (3,074) Fuel Boost Pump (4)
(834) (1,324) (1,841) (2,385) 2,113 1,650 1,160 642 94 (484) S/G (2)
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
- - - - - - - - - -
7,192 5,543 3,797 1,951 70,783 54,833 37,952 20,684 3,036 7,651
(27,044) (43,844) (61,547) (80,191) (0) (2,059) (4,232) (7,105) (10,731) (18,673)
(19,851) (38,301) (57,750) (78,240) 70,783 52,774 33,720 13,579 (7,695) (11,022) Total Comp. Overhaul Adjustment
Residual Value Analysis - Life Limited Parts and Engine Overhauls (Page 1) 28-Dec-05 Version 6.00 Software Copyright 2006
Currency: $ Exchan 1 / US$ Program Length: 20 Years Total Landings 3,500
Adjustments - Life Limited Part Replacement Year 1 2 3 4 5 6 7 8 9

Name Part Number
1- MR Blades (4) 164,855.76 162,997.24 160,911.82 158,588.45 156,015.59 153,181.30 150,073.13 146,678.17 142,983.00
2- Starflex Body (8,415.11) (12,105.09) 14,806.86 11,562.65 8,128.81 4,497.36 660.04 (3,391.74) (7,666.87)
3- MR Sleeves (8) 1,776.77 (1,825.87) (5,628.00) (9,637.87) (13,864.02) (18,315.32) (23,000.96) (27,930.46) 31,641.68
4- Spher Thrust B'ring (4) (4,787.29) (7,601.95) (10,567.79) (13,691.01) 12,126.98 9,469.94 6,657.58 3,683.39 540.58
5- Thrust B'ring Bolt (8) 231.19 (118.79) (488.19) (877.82) 644.24 264.77 (136.05) (559.12) (1,005.35)
6- Freq Adapt Bolt(12) 23.07 (118.53) (267.94) (425.47) (591.47) (766.27) (950.25) (1,143.76) 1,060.54
7- MR Head Bolts (16) 413.09 141.48 (145.39) (448.14) 255.80 (52.58) (378.11) 388.48 57.01
8- MR Blade Pin (8) 3,193.74 2,297.09 1,348.70 346.42 (712.00) (1,828.91) (3,006.70) (4,247.89) (5,555.07)
9- Rotor Mast B'ring Spacer 845.32 734.94 617.85 493.76 362.39 223.41 76.51 (78.63) (242.36)
10 - Gimbal Half (2) 295.55 (303.72) (936.16) (1,603.17) (2,306.15) (3,046.58) (3,825.99) (4,645.97) 5,263.29
11 - Servo Attach Fittings (3) 3,157.52 2,745.22 2,307.85 1,844.36 1,353.62 834.50 285.80 (293.70) (905.30)
12 - MGB Roving Bar (2) (1,851.33) (2,939.81) (4,086.76) (5,294.57) 4,689.73 3,662.20 2,574.61 1,424.43 209.05
13 - TR Driveshaft Front 1,614.98 1,135.37 628.16 92.19 (473.73) (1,070.85) (1,700.45) (2,363.87) (3,062.49)
14 - TR Driveshaft Center 2,648.57 1,862.01 1,030.18 151.19 (776.92) (1,756.19) (2,788.74) (3,876.74) (5,022.48)
15 - TR Driveshaft Rear (2,415.25) (3,627.04) (4,903.65) 5,038.42 3,934.49 2,766.04 1,530.34 224.59 (1,154.13)
16 - Fire Cartridges (2) 188.90 (560.50) 587.11 (193.42) (1,017.31) 216.34 (641.93) 672.40 (221.51)
17 - Fuel Low Battery (100.27) 0.75 (105.86) 0.79 (111.76) 0.84 (118.00) 0.88 (124.57)
18 - Fuel Filter Element 229.49 78.60 (80.77) (248.96) 142.11 (29.21) (210.06) 215.82 31.67
19 - 20000 Hr items 24,813.51 24,533.77 24,219.88 23,870.17 23,482.92 23,056.31 22,588.48 22,077.48 21,521.30
20 - 10000 Hr items 7,311.85 6,748.89 6,149.45 5,511.93 4,834.70 4,116.05 3,354.22 2,547.38 1,693.62
21 - - - - - - - - - -
22 - - - - - - - - - -
23 - - - - - - - - - -
24 - - - - - - - - - -
25 - - - - - - - - - -
26 - - - - - - - - - -
27 - - - - - - - - - -
28 - - - - - - - - - -
29 - - - - - - - - - -
30 - - - - - - - - - -
Total Life Limited Parts Betterment 211,599.31 203,275.35 212,607.87 207,500.33 215,971.37 202,289.05 187,800.72 177,913.03 205,001.74
Total Life Limited Parts Detriment (17,569.26) (29,201.31) (27,210.52) (32,420.43) (19,853.37) (26,865.92) (36,757.22) (48,531.87) (24,960.14)
Total Life Limited Parts Adjustment $ 194,030.06 174,074.04 185,397.34 175,079.90 196,117.99 175,423.14 151,043.50 129,381.16 180,041.60
Adjustment - Engine Restoral Year 1 2 3 4 5 6 7 8 9

Overhaul/Inspection
1- Overhaul (57,292.71) (90,977.63) (126,471.90) (163,849.55) 145,131.82 113,333.15 79,675.80 44,081.59 6,469.44
2- Accessories (20,872.88) (33,144.97) (46,076.24) (59,693.67) 52,874.42 41,289.53 29,027.49 16,059.80 2,356.95
3- - - - - - - - - -
4- - - - - - - - - -
5- - - - - - - - - -
Life Limted Parts Part Number
1- Axial Compressor 11,847.75 9,654.72 7,332.12 4,874.47 2,276.10 (468.86) (3,366.52) (6,423.19) (9,645.44)
2- Cent Impeller 10,366.79 8,447.88 6,415.60 4,265.16 1,991.59 (410.25) (2,945.70) (5,620.29) (8,439.76)
3- #1 NG Disc 2,033.55 696.18 (716.28) (2,206.95) (3,779.07) (5,435.98) (7,181.17) (9,018.23) (10,950.90)
4- #2 NG Disc 2,033.55 696.18 (716.28) (2,206.95) (3,779.07) (5,435.98) (7,181.17) (9,018.23) (10,950.90)
5- Injection Wheel (232.34) (1,668.24) (3,182.93) (4,779.68) (6,461.84) (8,232.90) (10,096.48) 10,373.01 8,929.81
6- Free Turbine Disc 3,284.27 1,124.36 (1,156.82) (3,564.33) (6,103.37) (8,779.36) (11,597.91) (14,564.85) (17,686.19)
7- - - - - - - - - -
8- - - - - - - - - -
9- - - - - - - - - -
10 - - - - - - - - - -
Total Engine Restoral Adjustment $ (48,832) (105,172) (164,573) (227,162) 182,151 125,859 66,334 25,870 (39,917)
(Page 2) Residual Value Analysis - Life Limited Parts and Engine Overhauls
10 11 12 13 14 15 16 17 18 19 20 Adjustments -
Life Limited Part Replacement
138,973.66 134,635.68 129,954.02 124,913.04 119,496.53 113,687.65 107,468.91 100,822.16 93,728.57 86,168.59 78,121.92 MR Blades (4)
(12,174.56) (16,924.38) 17,389.50 13,206.53 8,780.34 4,100.73 (842.90) (6,061.53) (11,566.55) (17,369.77) (23,483.41) Starflex Body
27,975.27 24,083.28 19,956.07 15,583.66 10,955.67 6,061.35 889.57 (4,571.25) (10,333.09) (16,408.37) (22,809.97) MR Sleeves (8)
(2,777.88) (6,279.25) (9,971.10) (13,861.25) (17,957.82) 15,906.37 12,421.25 8,732.42 4,831.32 709.05 (3,643.60) Spher Thrust B'ring (4)
737.83 303.24 (155.81) (640.34) (1,151.40) 845.02 347.29 (178.45) (733.36) (1,318.67) 967.77 Thrust B'ring Bolt (8)
913.00 756.54 590.78 415.33 229.79 33.72 (173.30) (391.73) (622.04) (864.73) (1,120.29) Freq Adapt Bolt(12)
(292.98) 541.83 185.57 (190.70) (587.80) 335.51 (68.96) (495.94) 509.55 74.78 (384.29) MR Head Bolts (16)
(6,930.93) (8,378.27) (9,899.96) (11,499.02) (13,178.53) 13,540.85 12,473.92 11,338.06 10,130.31 8,847.55 7,486.58 MR Blade Pin (8)
(415.04) (597.04) (788.73) (990.51) (1,202.79) (1,426.00) (1,660.57) (1,906.97) (2,165.67) (2,437.15) (2,721.93) Rotor Mast B'ring Spacer
4,653.42 4,006.02 3,319.50 2,592.19 1,822.37 1,008.25 147.97 (760.38) (1,718.81) (2,729.38) (3,794.22) Gimbal Half (2)
(1,550.31) (2,230.11) (2,946.12) (3,699.84) (4,492.77) (5,326.53) (6,202.74) (7,123.11) (8,089.41) (9,103.48) (10,167.19) Servo Attach Fittings (3)
(1,074.26) (2,428.30) (3,856.01) (5,360.41) (6,944.63) 6,151.29 4,803.53 3,376.99 1,868.36 274.20 (1,409.05) MGB Roving Bar (2)
(3,797.75) (4,571.13) (5,384.17) (6,238.47) (7,135.69) 6,834.80 6,256.63 5,641.50 4,987.80 4,293.89 3,558.04 TR Driveshaft Front
(6,228.30) (7,496.65) (8,830.04) (10,231.10) (11,702.54) 11,209.07 10,260.88 9,252.06 8,180.00 7,041.98 5,835.18 TR Driveshaft Center
(2,608.85) (4,142.71) (5,758.96) 6,946.32 5,551.26 4,074.21 2,511.73 860.23 (884.00) (2,724.82) (4,666.21) TR Driveshaft Rear
(1,165.10) 247.77 (735.18) 770.08 (253.69) (1,334.36) 283.77 (841.98) 881.95 (290.55) (1,528.21) Fire Cartridges (2)
0.93 (131.52) 0.98 (138.85) 1.04 (146.60) 1.10 (154.77) 1.16 (163.40) 1.22 Fuel Low Battery
(162.77) 301.02 103.09 (105.94) (326.55) 186.40 (38.31) (275.52) 283.09 41.55 (213.49) Fuel Filter Element
20,917.83 20,264.89 19,560.22 18,801.47 17,986.20 17,111.86 16,175.84 15,175.40 14,107.69 12,969.79 11,758.64 20000 Hr items
790.98 (162.59) (1,169.20) (2,231.05) (3,350.41) (4,529.66) (5,771.23) (7,077.66) (8,451.58) (9,895.72) (11,412.89) 10000 Hr items
- - - - - - - - - - -
- - - - - - - - - - -
- - - - - - - - - - -
- - - - - - - - - - -
- - - - - - - - - - -
- - - - - - - - - - -
- - - - - - - - - - -
- - - - - - - - - - -
- - - - - - - - - - -
- - - - - - - - - - -
194,962.91 185,140.27 191,059.73 183,228.62 164,823.19 201,087.08 174,042.38 155,198.83 139,509.81 120,421.37 107,729.35
(39,178.72) (53,341.93) (49,495.28) (55,187.47) (68,284.64) (12,763.14) (14,758.02) (29,839.31) (44,564.53) (63,306.01) (87,354.75)
155,784.19 131,798.34 141,564.45 128,041.15 96,538.55 188,323.94 159,284.37 125,359.52 94,945.28 57,115.36 20,374.60 Total Life Limited Part Cost
10 11 12 13 14 15 16 17 18 19 20 Engine Restoral
(33,244.72) (75,148.04) (119,330.91) (165,887.00) (214,913.43) 190,362.30 148,653.54 104,506.84 57,819.66 8,485.64 (43,605.47)
(12,111.71) (27,377.93) (43,474.64) (60,435.95) (78,297.26) 69,352.79 54,157.46 38,073.93 21,064.86 3,091.49 (15,886.34)
- - - - - - - - - - -
- - - - - - - - - - -
- - - - - - - - - - -
(13,040.05) (16,614.07) (20,374.80) (24,329.80) (28,486.93) (32,854.29) (37,440.32) (42,253.73) 43,413.12 40,612.20 37,624.41
(11,410.04) (14,537.31) (17,827.95) (21,288.58) (24,926.06) (28,747.50) (32,760.28) (36,972.01) 37,986.48 35,535.68 32,921.36
(12,983.05) 14,524.63 13,096.55 11,578.94 9,967.95 8,259.61 6,449.76 4,534.13 2,508.27 367.55 (1,892.81)
(12,983.05) 14,524.63 13,096.55 11,578.94 9,967.95 8,259.61 6,449.76 4,534.13 2,508.27 367.55 (1,892.81)
7,399.39 5,778.03 4,061.91 2,247.03 329.27 (1,695.68) (3,832.24) (6,085.04) (8,458.84) (10,958.59) (13,589.44)
(20,968.20) 23,457.92 21,151.50 18,700.49 16,098.68 13,339.63 10,416.65 7,322.83 4,050.96 593.60 (3,056.97)
- - - - - - - - - - -
- - - - - - - - - - -
- - - - - - - - - - -
- - - - - - - - - - -
(109,341) (75,392) (149,602) (227,836) (310,260) 226,276 152,094 73,661 160,893 78,095 (9,378) Total Engine Restoral Adjustment


Engine:
Parts:
Avionics:
Airframe:
Recurring 1 "T/A " $ 19,890 500 1.5 250 5.90
2 "G" 306,000 5000 10 1,750 59.90
3
4
5
6
7
8
9
10
11
12
One Time 1
2
1 MR Gearbox $ 74,664 3000 1,750
2 TR Gearbox 11,424 2500 1,750
3 Rotor Shaft 9,180 3000 1,750
4 MR Servo 6,120 3000 1,750
5 MR Servo (2) 9,996 3000 1,750
6 TR Servo 8,364 3000 1,750
7 Fuel Boost Pump (4) 4,896 2000 1,750
8 S/G (2) 3,468 3000 1,750
9
10
11
12
13
14
15
16
17
18
19
20
1 MR Blades (4) $ 414,732 20000 1,750
2 Starflex Body 29,172 2600 1,750
3 MR Sleeves (8) 52,122 4400 1,750
6 Freq Adapt Bolt(12) 1,938 4200 1,750
7 MR Head Bolts (16) 918 1000 750
8 MR Blade Pin (8) 19,482 6100 1,750
10 Gimbal Half (2) 8,670 4400 1,750
12 MGB Roving Bar (2) 10,098 3000 1,750
16 Fire Cartridges (2) 1,836 2.5 29.90
19 20000 Hr items 62,424 20000 1,750
20 10000 Hr items 24,786 10000 1,750
21
22
23
24
25
26
27
28
29
30
2 Accessories -- 56,925 3000 1,750 1,750
3 --
4 --
5 --
3 #1 NG Disc 11,300 10000
4 #2 NG Disc 11,300 10000
7
8
9
10
Input Data Notes: 0
Currency: $



Number of Years 10

Trade-in -



Life Cycle Cost of Ownership Analysis With 12-Month Budget and Residual Value Analysis

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Life Cycle Cost of Ownership Analysis With 12-Month Budget and Residual Value Analysis

Uploaded by

Copyright:

Available Formats

Life Cycle Cost of Ownership Analysis

With 12-month Budget and

December 28, 2005

Prepared Exclusively for:

Conklin & de Decker

© 2005 Conklin & de Decker. (508) 255-5975

© 2005 Conklin & de Decker. (508) 255-5975

Life Cycle Cost Analysis

Type of operation: Corporate

Executive Summary 28-Dec-05

For: SAMPLE Report

Aircraft: Eurocopter AS 365N2 20 Years Per Hour

Program length: 20 Years Cash Flow

Net Present Value

ANNUAL COST SUMMARY Version 6.00 Software Copyright 2006

Make/Model: 2001 Eurocopter AS 365N2 with ( 2 ) Arriel 1C2 3,000,000

Program Length: 20 Years Acquisition: Finance (Level Payments) 2,500,000

Block Speed: 124 Kts Currency: $ Exchange Rate: 1 / US$ 2,000,000

Total Acquisition Cost $ 1,000,000 2,500,000

Total Direct Cost $ 12,377,478 618,874 2,063 16.64

Residual Value (Adjusted) $ (2,920,316)

Ops + Admin Overhead $ - -

FINANCIAL ANALYSIS SUMMARY Version 6.00 Software Copyright 2006

Make/Model: 2001 Eurocopter AS 365N2 28-Dec-05 1,000,000

Program Length: 20 Years Acquisition: Finance (Level Payments) 500,000

ANNUAL COST (Page 1) 28-Dec-05 Version 6.00 Software Copyright 2006

SAMPLE Report Corporate

(Page 2) ANNUAL COST

FINANCIAL ANALYSIS (Page 1) 28-Dec-05 Version 6.00 Software Copyright 2006

SAMPLE Report Corporate

Depreciation: MACRS - 5 Years Currency: $ Exchange Rate: 1 / US$

Cost Without Tax Impact:

Cost With Tax Impact:

Value of Owned Aircraft: $ -

(Page 2) FINANCIAL ANALYSIS

2001 Eurocopter AS 365N2

Cost Without Tax Impact:

Cost With Tax Impact:

Cost per Hour 28-Dec-05

SAMPLE Report Type of Operation: Corporate

Program Length: 20 Years Currency: $ Exchange Rate: 1 / US$

Direct Cost (Average): Fixed Cost (Average):

Program Data: Other Costs (Average):

Inflation per Year % 2.75 Finance/Lease Cost $ 971

Maintenance Input Data Eurocopter AS 365N2 with 2 Turbomeca Arriel 1C2

Guaranteed Maintenance Plans

Maintenance Input Data Eurocopter AS 365N2 Database Date: January 2005

Input Data Notes: 0

Customer: SAMPLE Report Type of Operation: Corporate

Date of Analysis: 28-Dec-05

Current Current Status: Depreciation Method: MACRS - 5 Years

Base of Operation: New Jersey Finance Terms:

Acquisition Cost - Finance: Remaining Balance $ -

Revenue Data: Financial Data:

Fixed Cost Input Hangar Cost $ 25,500

* The data shown is based on user input

© 2005 Conklin & de Decker. (508) 255-5975

Aircraft: Eurocopter AS 365N2

Type of operation: Corporate

BUDGET SUMMARY Version 6.00 Software Copyright 2006

Eurocopter AS 365N2 2001 with ( 2 ) Arriel 1C2

Variable Cost $ 263,556 43,926 879