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Life cycle costs Report
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Life Cycle Cost
Copyright 2012, Conklin de Decker Associates, Inc. Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
Cost per Hour 8-Nov-12
John Smith Type of Operation: Corporate
Make/Model: 1978 Bombardier Learjet 24E with ( 2 ) CJ 610-6 Acquisition: Purchase
Program Length: 20 Years Currency: $ Exchange Rate: 1 / US$
Variable Cost (Average): Fixed Cost (Average):Salaries
Fuel $ 2,912 Pilot/Cockpit Crew $ 470 Fuel Additives/Lubricants 21 Flight Attendants - CO2 Offset Cost - Maintenance Technicians - Maintenance Labor 910 Other - Maintenance Labor - Other - Benefits 141 Parts 637 Hangar 75 Parts - Other - InsuranceInspections 247 Hull 11 Engine Restoral - Liability 35 Engine Guaranteed Mx Plan 590 MiscellaneousParts Guaranteed Mx Plan - Training Pilot/Maintenance 58 Airframe Guaranteed Mx Plan - Management Fee - Avionics Guaranteed Mx Plan - Annual Use Tax (Lease Only) - Component Overhaul (All) 75 Property Tax - Life Limited Components (All) 87 Registration Fee - Other Variable Cost - Brokerage Fee 1 ATC & Navigation Fees - New Int/Paint/Avionics - Landing & Parking Fees 19 Modernization 151 Crew Expenses 87 Nav/Weather Services 18 Small Supplies 40 Comp. Maintenance Service 13
Refurbishing 47 Other Fixed Cost -
Total Direct Cost per Hour - 20 Year Average: $ 5,625 Total Fixed Cost per Hour - 20 Year Average: $ 1,019
Program Data: Other Costs (Average):
Inflation - General % 3.00 Finance/Lease Cost $ - Inflation - Parts % 4.00 Aircraft Cash Payment/Resale 14 Program Length (Years) 20 Final Payment/Loan Payoff - Avg Utilization (Hours/Year) 400 Operations Overhead - Fuel Cost per Gallon $ 6.86 Administrative Overhead (G & A) - Maintenance Labor Cost per Hour $ 93.00 Maint. Labor Hours/Flight Hour (Ave) 9.78 Block Speed (Kts) 438 Total Annual Cost per Hour - 20 Year Average: $ 6,659 Costs shown exclude all taxes and depreciation Total Annual Cost per NM - 20 Year Average: $ 15.19
Life Cycle Cost
Copyright 2012, Conklin and de Decker Associates, Inc. PO Box 1142, Orleans, MA 02653 (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
Life Cycle Cost Analysis For: John Smith 8-Nov-12
Aircraft: Bombardier Learjet 24Ewith ( 2 ) General Electric CJ 610-6
Registration: N123Serial Number: 123
Year: 1978
Acquisition: Purchase
Program length: 20 Years
Currency: $
Inflation - Genral: 3% per YearInflation - Parts 4% per Year
Type of operation: Corporate
Base of operation: Texas
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.- Personal Property Tax - State Sales/Use Tax = 6.25%
Life Cycle Cost
Copyright 2012, Conklin and de Decker Associates, Inc. PO Box 1142, Orleans, MA 02653 (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
Executive Summary 8-Nov-12
For: John Smith
Aircraft: Bombardier Learjet 24E 20 Years Per Hour Engines: ( 2 ) CJ 610-6 Cash Expenses 3 % Inflation Year: 1978 Acquisition $ (265,000)
Variable Cost (45,001,995) (5,625) Purchase price: $ 265,000 Fixed Cost (8,153,106) Overhead - Finance/Lease Cost - Depreciation: Straightline Acquisition: Purchase Income Charter Revenue $ - Resale Value - Adjusted 150,411 Program length: 20 Years Cash Flow Type of operation: Corporate Pre Tax $ (53,269,690) (6,659) After Tax (0 % Tax Rate) (53,269,690) (6,659) Total flight hours: 8000 Hours Negative Cash Flow 20 Years
Life Cycle Cost
Copyright 2012, Conklin and de Decker Associates, Inc. Orleans, MA 02653 (508) 255 5975 www.conklindd.com
The information in this report is an estimate only, not a guarantee of future results.
ANNUAL COST SUMMARY (Version 12.2.4 Volume II, 2012)
John Smith Type of Operation: Corporate 8-Nov-12
Make/Model: Bombardier Learjet 24E with ( 2 ) CJ 610-6
Program Length: Years Acquisition: Purchase
Block Speed: Currency: $ Exchange Rate: 1 / US$Program Data: Acquisition Cost - Purchase:Avg Hrs/Year Purchase Price $ 265,000 Cycles/Hour State Sales Tax/VAT - Resale Value % Training/Spares/Other - MX Labor Rate /MH Refurb/Modification - Fuel Cost /GAL Trade-in -
Total $ 265,000 Airframe Status: Total Hours Lease/Finance Payments: Total Cycles Avg. Finance Cost/Yr $ - Year Manufactured: Final Payment -
Lease Cost/Yr - Inflation - General: /YearInflation - Parts /Year Insured Value: $ 265,000 Life Cycle Cost Total: Program Total Cost/Hour Cost/N. Mi.
Owned Aircraft, Current Value $ -
Total Acquisition Cost $ 265,000
Total Variable Cost $ 45,001,995 5,625 12.83
Total Fixed Cost $ 8,153,106
Resale Value (Adjusted) $ (150,411)
Total Finance/Lease Cost $ -
Ops + Admin Overhead $ -
Total Cost 53,269,690 6,659 15.19 Annual Budget: Year 1 $ 2,251,243 Year 11 $ 2,550,235 Starting: Year 2 2,132,857 Year 12 2,604,641
Year 3 1,868,424 Year 13 2,824,402 Year 4 1,950,412 Year 14 3,478,390 Year 5 2,010,055 Year 15 2,931,736 Year 6 2,113,030 Year 16 3,676,648 Year 7 2,255,932 Year 17 3,164,465 Year 8 2,255,965 Year 18 3,270,282 Year 9 2,344,235 Year 19 3,502,407
Year 10 2,422,909 Year 20 3,546,833
-
2,663,485
407,655
-
4.00%Cost/Year
2,250,100
93.006.86
11,900 11,900
1978
3.00%
1978
20
438.4 Kts
4001.00
56
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year
Annual Operating Cost Budget
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year
Annual Maintenance Cost
Life Cycle Cost
Copyright 2012, Conklin and de Decker Associates, Inc. Orleans, MA 02653 (508) 255 5975 www.conklindd.com
The information in this report is an estimate only, not a guarantee of future results.
FINANCIAL ANALYSIS SUMMARY
John Smith Type of Operation: Corporate
Make/Model: 1978 Bombardier Learjet 24E 8-Nov-12
Program Length: 20 Years Acquisition: Purchase
Currency: $ Financial Information: Depreciation: Capital Gains Tax: 0.0% Corp Tax Rate: 0.0% Method: Straightline Desired ROI: 0.0% Term: 30 Interest Rate: 0.00% Residual: 15 Inflation - General 3.00% Inflation - Parts 4.00% Ops Overhead: 0% + $ - /Yr Admin Overhead: 0% + $ - /YrRevenue (incl. Fuel Surcharge: $ 0 /Flt Hr + $ - /MoRevenue Hours Hrs/Yr 0Avg Flight Hours Hrs/Yr 400 Resale Value (Adjusted) 150,411 Acquisition Cost: $ 265,000 -
Cash Flow Analysis Expenses + Tax Impact + After TaxRevenue Depreciation Depreciation Cash Flow
Cash Acquisition Cost 0 $ - (265,000) - (265,000) 1 - (2,258,751) 7,508 (2,251,243) 2 - (2,140,365) 7,508 (2,132,857) 3 - (1,875,932) 7,508 (1,868,424) 4 - (1,957,921) 7,508 (1,950,412) 5 - (2,017,563) 7,508 (2,010,055) 6 - (2,120,538) 7,508 (2,113,030) 7 - (2,263,440) 7,508 (2,255,932) 8 - (2,263,473) 7,508 (2,255,965) 9 - (2,351,743) 7,508 (2,344,235)
10 - (2,430,418) 7,508 (2,422,909) 11 - (2,557,743) 7,508 (2,550,235) 12 - (2,612,149) 7,508 (2,604,641) 13 - (2,831,910) 7,508 (2,824,402) 14 - (3,485,898) 7,508 (3,478,390) 15 - (2,939,244) 7,508 (2,931,736) 16 - (3,684,157) 7,508 (3,676,648) 17 - (3,171,974) 7,508 (3,164,465) 18 - (3,277,791) 7,508 (3,270,282) 19 - (3,509,916) 7,508 (3,502,407) 20 150,411 (3,554,341) 7,508 (3,396,422)
Total: $ 150,411 (53,570,267) 150,167 (53,269,690) NPV Analysis
Total Acquisition Cost $ 265,000 $ - Investment: $ 265,000
Present Value: $ (53,004,690) Net Present Value: $ (53,269,690)
(Version 12.2.4 Volume II, 2012)
(4,000,000)
(3,500,000)
(3,000,000)
(2,500,000)
(2,000,000)
(1,500,000)
(1,000,000)
(500,000)
01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year
After Tax Cash Flow From Operations (Excludes Acquisition Cost of Aircraft)
(60,000,000)
(50,000,000)
(40,000,000)
(30,000,000)
(20,000,000)
(10,000,000)
01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year
Cumulative Total Discounted Cash Flow
Life Cycle Cost
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
ANNUAL COST (Page 1) 8-Nov-12 (Version 12.2.4 Volume II, 2012)
John Smith Corporate
Make/Model: 1978 Bombardier Learjet 24E with ( 2 ) CJ 610-6 Acquisition: Purchase Avg Utilization: 400 Hours/Year
Aircraft Value:$ 265,000 Residual Value:$ 150,411 Currency: $ Exchange Rate 1 / US$ Inflation - General: 3% per Year
Variable Cost Year 1 2 3 4 5 6 7 8 9 10 11Starting Nov - 2012 Nov - 2013 Nov - 2014 Nov - 2015 Nov - 2016 Nov - 2017 Nov - 2018 Nov - 2019 Nov - 2020 Nov - 2021 Nov - 2022
Fuel $ 867,104 893,117 919,911 947,508 975,933 1,005,211 1,035,368 1,066,429 1,098,421 1,131,374 1,165,315 Fuel Additives/Lubricants 6,320 6,510 6,705 6,906 7,113 7,327 7,546 7,773 8,006 8,246 8,494 CO2 Offset Cost - - - - - - - - - - - Maintenance Labor 192,688 206,151 220,249 235,007 250,452 266,613 283,517 301,196 319,681 339,004 359,198 Maintenance Labor - Other - - - - - - - - - - - Parts 120,686 130,372 140,640 151,521 163,047 175,252 188,174 201,848 216,316 231,618 247,798 Parts - Other - - - - - - - - - - - Inspections 467,200 323,101 - - - - 20,894 - - - - Engine Restoral - - - - - - - - - - - Engine Guaranteed Mx Plan 175,776 181,049 186,481 192,075 197,837 203,773 209,886 216,182 222,668 229,348 236,228 Parts Guaranteed Mx Plan - - - - - - - - - - - Airframe Guaranteed Mx Plan - - - - - - - - - - - Avionics Guaranteed Mx Plan - - - - - - - - - - - Component Overhaul (All) 37,050 25,462 11,352 27,285 16,061 33,828 34,651 17,550 26,792 18,945 44,013 Life Limited Components (All) 37,830 10,109 15,391 11,384 9,523 19,235 62,051 18,726 13,302 12,155 23,403 Other Variable Cost - - - - - - - - - - - ATC & Navigation Fees - - - - - - - - - - - Landing & Parking Fees 5,600 5,768 5,941 6,119 6,303 6,492 6,687 6,887 7,094 7,307 7,526 Crew Expenses 25,976 26,755 27,558 28,385 29,236 30,113 31,017 31,947 32,906 33,893 34,910 Small Supplies 11,880 12,236 12,603 12,982 13,371 13,772 14,185 14,611 15,049 15,501 15,966
Total Variable Cost $ 1,948,110 1,820,631 1,546,831 1,619,171 1,668,877 1,761,616 1,893,976 1,883,150 1,960,236 2,027,390 2,142,850
Fixed Cost Year 1 2 3 4 5 6 7 8 9 10 11Salaries Pilot/Cockpit Crew $ 140,000 144,200 148,526 152,982 157,571 162,298 167,167 172,182 177,348 182,668 188,148 Flight Attendants - - - - - - - - - - - Maintenance Technicians - - - - - - - - - - - Other - - - - - - - - - - - Benefits 42,000 43,260 44,558 45,895 47,271 48,690 50,150 51,655 53,204 54,800 56,444 Hangar 22,300 22,969 23,658 24,368 25,099 25,852 26,627 27,426 28,249 29,096 29,969 Insurance Hull 3,154 3,248 3,346 3,446 3,549 3,656 3,765 3,878 3,995 4,115 4,238 Liability 10,500 10,815 11,139 11,474 11,818 12,172 12,538 12,914 13,301 13,700 14,111 Miscellaneous Training Pilot/Maintenance 17,200 17,716 18,247 18,795 19,359 19,940 20,538 21,154 21,788 22,442 23,115 Management Fee - - - - - - - - - - - Annual Use Tax (Lease Only) - - - - - - - - - - - Property Tax - - - - - - - - - - - Registration Fee - - - - - - - - - - - Brokerage Fee - - - - - - - - - - - New Int/Paint/Avionics - - - - - - - - - - - Modernization 45,000 46,350 47,741 49,173 50,648 52,167 53,732 55,344 57,005 58,715 60,476 Nav/Weather Services 5,279 5,437 5,600 5,769 5,942 6,120 6,303 6,493 6,687 6,888 7,095 Comp. Maintenance Service 3,750 3,863 3,978 4,098 4,221 4,347 4,478 4,612 4,750 4,893 5,040 Refurbishing 13,950 14,369 14,800 15,244 15,701 16,172 16,657 17,157 17,671 18,202 18,748 Other Fixed Cost - - - - - - - - - - -
Total Fixed Cost $ 303,133 312,226 321,593 331,241 341,178 351,414 361,956 372,815 383,999 395,519 407,385
Finance/Lease Cost $ - - - - - - - - - - - Owned Aircraft - Current Value - Acquisition Cost/Resale 265,000 - - - - - - - - - - Final Payment/Loan Payoff - - - - - - - - - - - Operations Overhead - - - - - - - - - - - Administrative Overhead (G&A) - - - - - - - - - - -
Total Cost $ 2,516,243 2,132,857 1,868,424 1,950,412 2,010,055 2,113,030 2,255,932 2,255,965 2,344,235 2,422,909 2,550,235
Annual Utilization (Hrs) 400 400 400 400 400 400 400 400 400 400 400 Cost/Flight Hour $
Variable 4,870 4,552 3,867 4,048 4,172 4,404 4,735 4,708 4,901 5,068 5,357 Variable + Fixed 5,628 5,332 4,671 4,876 5,025 5,283 5,640 5,640 5,861 6,057 6,376 Total Annual Cost 6,291 5,332 4,671 4,876 5,025 5,283 5,640 5,640 5,861 6,057 6,376
Life Cycle Cost
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
(Page 2) ANNUAL COST
1978 Bombardier Learjet 24E
- Parts: 4% per Year
12 13 14 15 16 17 18 19 20 Total YearNov - 2023 Nov - 2024 Nov - 2025 Nov - 2026 Nov - 2027 Nov - 2028 Nov - 2029 Nov - 2030 Nov - 2031
1,200,275 1,236,283 1,273,371 1,311,573 1,350,920 1,391,447 1,433,191 1,476,187 1,520,472 $ 23,299,409 Fuel8,748 9,011 9,281 9,560 9,846 10,142 10,446 10,759 11,082 169,821 Fuel Additives/Lubricants
- - - - - - - - - - CO2 Offset Cost380,299 402,342 425,366 449,409 474,512 500,717 528,067 556,607 586,385 7,277,461 Maintenance Labor
- - - - - - - - - - Maintenance Labor - Other264,902 282,977 302,075 322,248 343,552 366,044 389,785 414,841 441,277 5,094,974 Parts
- - - - - - - - - - Parts - Other- 29,650 666,676 - 426,029 - - 41,019 - 1,974,569 Inspections- - - - - - - - - - Engine Restoral
243,315 250,615 258,133 265,877 273,853 282,069 290,531 299,247 308,224 4,723,167 Engine Guaranteed Mx Plan- - - - - - - - - - Parts Guaranteed Mx Plan- - - - - - - - - - Airframe Guaranteed Mx Plan- - - - - - - - - - Avionics Guaranteed Mx Plan
14,811 56,275 20,956 31,991 35,132 39,668 17,685 49,405 43,347 602,260 Component Overhaul (All)12,531 63,097 13,554 16,832 222,831 18,205 27,719 64,299 20,479 692,655 Life Limited Components (All)
- - - - - - - - - - Other Variable Cost- - - - - - - - - - ATC & Navigation Fees
7,752 7,984 8,224 8,471 8,725 8,986 9,256 9,534 9,820 150,474 Landing & Parking Fees35,957 37,036 38,147 39,291 40,470 41,684 42,934 44,222 45,549 697,985 Crew Expenses16,445 16,938 17,446 17,970 18,509 19,064 19,636 20,225 20,832 319,220 Small Supplies
2,185,034 2,392,208 3,033,230 2,473,221 3,204,378 2,678,027 2,769,250 2,986,345 3,007,466 $ 45,001,995 Total Variable Cost
12 13 14 15 16 17 18 19 20 Total YearSalaries
193,793 199,607 205,595 211,763 218,115 224,659 231,399 238,341 245,491 $ 3,761,852 Pilot/Cockpit Crew- - - - - - - - - - Flight Attendants- - - - - - - - - - Maintenance Technicians- - - - - - - - - - Other
58,138 59,882 61,678 63,529 65,435 67,398 69,420 71,502 73,647 1,128,556 Benefits30,868 31,794 32,748 33,731 34,743 35,785 36,859 37,964 39,103 599,209 Hangar
Insurance4,365 4,496 4,631 4,770 4,913 5,060 5,212 5,369 5,530 84,736 Hull
14,534 14,970 15,420 15,882 16,359 16,849 17,355 17,876 18,412 282,139 LiabilityMiscellaneous
23,809 24,523 25,259 26,017 26,797 27,601 28,429 29,282 30,160 462,170 Training Pilot/Maintenance- - - - - - - - - - Management Fee- - - - - - - - - - Annual Use Tax (Lease Only)- - - - - - - - - - Property Tax- - - - - - - - - - Registration Fee- - - - - - - - 7,822 7,822 Brokerage Fee- - - - - - - - - - New Int/Paint/Avionics
62,291 64,159 66,084 68,067 70,109 72,212 74,378 76,609 78,908 1,209,167 Modernization7,307 7,527 7,752 7,985 8,225 8,471 8,725 8,987 9,257 141,849 Nav/Weather Services5,191 5,347 5,507 5,672 5,842 6,018 6,198 6,384 6,576 100,764 Comp. Maintenance Service
19,310 19,889 20,486 21,101 21,734 22,386 23,057 23,749 24,461 374,842 Refurbishing- - - - - - - - - - Other Fixed Cost
419,606 432,194 445,160 458,515 472,271 486,439 501,032 516,063 539,367 $ 8,153,106 Total Fixed Cost
- - - - - - - - - $ - Finance/Lease Cost- Owned Aircraft - Current Value
- - - - - - - - (150,411) 114,589 Acquisition Cost/Resale- - - - - - - - - - Final Payment/Loan Payoff- - - - - - - - - - Operations Overhead- - - - - - - - - - Administrative Overhead (G&A)
2,604,641 2,824,402 3,478,390 2,931,736 3,676,648 3,164,465 3,270,282 3,502,407 3,396,422 $ 53,269,690 Total Annual Cost400 400 400 400 400 400 400 400 400 Annual Utilization (Hrs)
Cost/Flight Hour $5,463 5,981 7,583 6,183 8,011 6,695 6,923 7,466 7,519 Variable6,512 7,061 8,696 7,329 9,192 7,911 8,176 8,756 8,867 Variable + Fixed6,512 7,061 8,696 7,329 9,192 7,911 8,176 8,756 8,491 Total Annual Cost
Life Cycle Cost
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA. (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
FINANCIAL ANALYSIS (Page 1) 8-Nov-12 (Version 12.2.4 Volume II, 2012)
John Smith Corporate 20
Make/Model: 1978 Bombardier Learjet 24E Acquisition: Purchase Target ROI: 0% Avg Utilization: 400 Hours/Year
Depreciation: Straightline Currency: $ Exchange Rate: 1 / US$ Inflation - General: 3% per Year - Parts:
Year 0 1 2 3 4 5 6 7 8 9 10Starting Nov - 2012 Nov - 2013 Nov - 2014 Nov - 2015 Nov - 2016 Nov - 2017 Nov - 2018 Nov - 2019 Nov - 2020 Nov - 2021
Revenue: Sales (Flt Hr) - - - - - - - - - - Sales (Month) - - - - - - - - - - Aircraft Sale - - - - - - - - - - Total - - - - - - - - - -
Cost Without Tax Impact: Total Acquisition Cost $ (265,000) - - - - - - - - - - Principal Repayment - - - - - - - - - - - Final Payment - - - - - - - - - - Total $ (265,000) - - - - - - - - - -
Cost With Tax Impact: Sales Tax/VAT - - - - - - - - - - Use Tax (Lease Only) - - - - - - - - - - Property Tax - - - - - - - - - - Variable Cost (1,948,110) (1,820,631) (1,546,831) (1,619,171) (1,668,877) (1,761,616) (1,893,976) (1,883,150) (1,960,236) (2,027,390) Fixed Cost (303,133) (312,226) (321,593) (331,241) (341,178) (351,414) (361,956) (372,815) (383,999) (395,519) Operations Overhead - - - - - - - - - - Admin Overhead (G&A) - - - - - - - - - - Betterment/Detriment (Lease Only) - - - - - - - - - - Depreciation (7,508) (7,508) (7,508) (7,508) (7,508) (7,508) (7,508) (7,508) (7,508) (7,508) Interest - - - - - - - - - - Lease Payments - - - - - - - - - - Total (2,258,751) (2,140,365) (1,875,932) (1,957,921) (2,017,563) (2,120,538) (2,263,440) (2,263,473) (2,351,743) (2,430,418)
Tax Impact: Income Tax - - - - - - - - - - Capital Gains Tax - - - - - - - - - - Total - - - - - - - - - -
After Tax - Total Cash Flow: $ (265,000) (2,251,243) (2,132,857) (1,868,424) (1,950,412) (2,010,055) (2,113,030) (2,255,932) (2,255,965) (2,344,235) (2,422,909)
Operating Cash Flow: $ (2,251,243) (2,132,857) (1,868,424) (1,950,412) (2,010,055) (2,113,030) (2,255,932) (2,255,965) (2,344,235) (2,422,909)
Present Value of Total Cash Flow: $ (2,251,243) (2,132,857) (1,868,424) (1,950,412) (2,010,055) (2,113,030) (2,255,932) (2,255,965) (2,344,235) (2,422,909)
Value of Trade-in Aircraft: $ -
Value of Owned Aircraft: $ -
Net Present Value: $ (265,000) (2,516,243) (4,649,100) (6,517,524) (8,467,936) (10,477,991) (12,591,021) (14,846,953) (17,102,917) (19,447,152) (21,870,061)
$
$
$
$
$
Life Cycle Cost
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA. (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
(Page 2) FINANCIAL ANALYSIS
1978 Bombardier Learjet 24E
4% per Year
11 12 13 14 15 16 17 18 19 20 Total YearNov - 2022 Nov - 2023 Nov - 2024 Nov - 2025 Nov - 2026 Nov - 2027 Nov - 2028 Nov - 2029 Nov - 2030 Nov - 2031
Revenues- - - - - - - - - - $ - Sales (Flt Hr)- - - - - - - - - - - Sales (Month)- - - - - - - - - 150,411 150,411 Aircraft Sale- - - - - - - - - 150,411 $ 150,411 Total
Cost Without Tax Impact:- - - - - - - - - - $ (265,000) Total Acquisition Cost- - - - - - - - - - - Principal Repayment- - - - - - - - - - - Final Payment- - - - - - - - - - $ (265,000) Total
Cost With Tax Impact:- - - - - - - - - - $ - Sales Tax/VAT- - - - - - - - - - - Use Tax (Lease Only)- - - - - - - - - - - Property Tax
(2,142,850) (2,185,034) (2,392,208) (3,033,230) (2,473,221) (3,204,378) (2,678,027) (2,769,250) (2,986,345) (3,007,466) (45,001,995) Variable Cost(407,385) (419,606) (432,194) (445,160) (458,515) (472,271) (486,439) (501,032) (516,063) (539,367) (8,153,106) Fixed Cost
- - - - - - - - - - - Operations Overhead- - - - - - - - - - - Admin Overhead (G&A)- - - - - - - - - - - Betterment/Detriment (Lease Only)
(7,508) (7,508) (7,508) (7,508) (7,508) (7,508) (7,508) (7,508) (7,508) (7,508) (150,167) Depreciation- - - - - - - - - - - Interest- - - - - - - - - - - Lease Payments
(2,557,743) (2,612,149) (2,831,910) (3,485,898) (2,939,244) (3,684,157) (3,171,974) (3,277,791) (3,509,916) (3,554,341) $ (53,305,267) Total
Tax Impact:- - - - - - - - - - - Income Tax- - - - - - - - - - - Capital Gains Tax- - - - - - - - - - $ - Total
After Tax -(2,550,235) (2,604,641) (2,824,402) (3,478,390) (2,931,736) (3,676,648) (3,164,465) (3,270,282) (3,502,407) (3,396,422) $ (53,269,690) Total Cash Flow
(2,550,235) (2,604,641) (2,824,402) (3,478,390) (2,931,736) (3,676,648) (3,164,465) (3,270,282) (3,502,407) (3,546,833) $ (53,155,101) Operating Cash Flow
(2,550,235) (2,604,641) (2,824,402) (3,478,390) (2,931,736) (3,676,648) (3,164,465) (3,270,282) (3,502,407) (3,396,422) $ (53,004,690) Present Value
(24,420,296) (27,024,936) (29,849,338) (33,327,728) (36,259,464) (39,936,113) (43,100,578) (46,370,860) (49,873,268) (53,269,690) $ (53,269,690) Net Present Value
Life Cycle Cost
Copyright 2012, Conklin and de Decker Associates, Inc. PO Box 1142, Orleans, MA 02653 (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
Maintenance Cost Matrix 8-Nov-12
For: John Smith Inflation: 3.00 %/Year
Aircraft: Bombardier Learjet 24E Engines: ( 2 ) CJ 610-6 Program length: 20 Years Year: 1978 Type of operation: Corporate Currency $ Flight hours/Year 400 Hours Average $/Hr Maint Cost Fuel & Other Total Variable Average $/Hr Maint Cost Fuel & Other Total VariableThis Analysis 2,546 3,080 5,625 This Analysis 2,546 3,080 5,625
Matrix -- 5-Year Average Cost * Matrix -- Average Cost for Program Duration*Year 1 - 5 1,860 2,418 4,278 Year 1 - 5 1,860 2,418 4,278Year 6 - 10 1,904 2,803 4,708 Year 1 - 10 1,882 2,611 4,493Year 11 - 15 2,757 3,250 6,007 Year 1 - 15 2,174 2,824 4,998Year 16 - 20 3,356 3,768 7,124 Year 1 - 20 2,469 3,060 5,529* No Warranty Available
265,0000 0
0000
4000000.00
Program (0 % ROI)3
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Year 1 - 5 Year 6 - 10 Year 11 - 15 Year 16 - 20
Maintenance Cost - 5 Year Average
0
500
1,000
1,500
2,000
2,500
3,000
Year 1 - 5 Year 1 - 10 Year 1 - 15 Year 1 - 20
Maintenance Cost - Average for Program Duration
Budget Analysis
Copyright 2012, Conklin and de Decker Associates, Inc. PO Box 1142, Orleans, MA 02653 (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
Operating Budget For: John Smith 8-Nov-12
Aircraft: Bombardier Learjet 24E
Engine: ( 2 ) General Electric CJ 610-6
Registration: N123
Serial Number: 123
Year: 1978
Budget Year Start: Nov - 2012
Currency: $
Inflation - General: 3% per YearInflation - Parts: 4% per Year
Type of operation: Corporate
Base of operation: Texas
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.- Personal Property Tax - State Sales/Use Tax = 6.25%
Budget Analysis
Copyright 2012, Conklin and de Decker Associates, Inc. Orleans, MA 02653 (508) 255 5975 www.conklindd.com
The information in this report is an estimate only, not a guarantee of future results.
BUDGET SUMMARY (Version 12.2.4 Volume II, 2012)
John Smith Budget Year Starting Nov - 2012
Bombardier Learjet 24E 1978 with ( 2 ) CJ 610-6
Registration Number: N123 8-Nov-12
Currency: $ Exchange Rate: 1 / US$Program Data: Acquisition Cost - Purchase:Hrs/Month Purchase Price $ 265,000 Cycles/Hour State Sales Tax/VAT -
Training/Spares/Other - MX Labor Rate /MH Refurb/Modification - Fuel Cost /GAL Trade-in -
Total $ 265,000 Airframe Status: Total Hours Lease/Finance Payments: Year Manufactured: Avg. Finance Cost/Yr $ - Total Cycles Final Payment -
Lease Cost/Yr - Inflation - General: /YearInflation - Parts Insured Value: $ 265,000 Budget Total: Cost/Hour
Revenue $ 0 -
Variable Cost $ 1,948,110 4,870
Fixed Cost $ 303,133
Total Finance/Lease Cost $ 0
Ops + Admin Overhead $ 0
Total Expenses $ 2,251,243 5,628
Operating Profit/(Loss) $ (2,251,243) (5,628)Monthly Budget: Profit/(Loss)(No Depreciation) Nov 2012 $ 0 (415,110)
Dec 2012 0 (141,510)Jan 2013 0 (664,750)Feb 2013 0 (141,510)Mar 2013 0 (141,510)Apr 2013 0 (153,540)
May 2013 0 (150,110)Jun 2013 0 (141,510)Jul 2013 0 (141,510)
Aug 2013 0 (141,510)Sep 2013 0 (141,510)Oct 2013 0 (142,160)
141,510 141,510 141,510 142,160
664,750 141,510 141,510 153,540 150,110 141,510
187,604
(187,604)Revenues Expenses
415,110 141,510
Average/Month
0
162,343
25,261
0
0
119001978
11900
3.00%4.00%
Total for Year
331.0
93.006.86
(800,000)
(600,000)
(400,000)
(200,000)
-
200,000
400,000
600,000
800,000
1 2 3 4 5 6 7 8 9 10 11 12
Month
Monthly Budget
Revenue
Expense
Profit/Loss
-
100,000
200,000
300,000
400,000
500,000
600,000
1 2 3 4 5 6 7 8 9 10 11 12
Month
Monthly Maintenance Budget
Maint. Exp.
Budget Analysis
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
MONTHLY BUDGET Nov 2012 through Oct 2013 (Version 12.2.4 Volume II, 2012) 8-Nov-12
John Smith Corporate
Make/Model: 1978 Bombardier Learjet 24E N123 First Year Utilization: 400 Hours Revenue Hrs: 0 Hours/Yr
Aircraft Value:$ 265,000 Acquisition: Purchase Inflation: 3% per Year Currency: $ Exchange Rate 1 / US$
Revenue Month Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Total
Average Revenue/Charter Hours/Month - - - - - - - - - - - - - Hourly Rev. (Incl. Fuel Surcharge $ - - - - - - - - - - - - $ - Monthly Revenue - - - - - - - - - - - - -
Total Revenue - - - - - - - - - - - - 0
Variable Cost Month Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Total
Average Flight Hours/Month 33 33 33 33 33 33 33 33 33 33 33 33 400 Fuel $ 72,259 72,259 72,259 72,259 72,259 72,259 72,259 72,259 72,259 72,259 72,259 72,259 $ 867,104 Fuel Additives/Lubricants 527 527 527 527 527 527 527 527 527 527 527 527 6,320 CO2 Offset Cost - - - - - - - - - - - - - Maintenance Labor 16,057 16,057 16,057 16,057 16,057 16,057 16,057 16,057 16,057 16,057 16,057 16,057 192,688 Maintenance Labor - Other - - - - - - - - - - - - - Parts 10,057 10,057 10,057 10,057 10,057 10,057 10,057 10,057 10,057 10,057 10,057 10,057 120,686 Parts - Other - - - - - - - - - - - - - Inspections - - 467,200 - - - - - - - - - 467,200 Engine Restoral - - - - - - - - - - - - - Engine Guaranteed Mx Plan 14,648 14,648 14,648 14,648 14,648 14,648 14,648 14,648 14,648 14,648 14,648 14,648 175,776 Parts Guaranteed Mx Plan - - - - - - - - - - - - - Airframe Guaranteed Mx Plan - - - - - - - - - - - - - Avionics Guaranteed Mx Plan - - - - - - - - - - - - - Component Overhaul (All) - - 26,350 - - 10,450 - - - - - 250 37,050 Life Limited Components (All) 513 513 30,203 513 513 2,093 513 513 513 513 513 913 37,830 Other Variable Cost - - - - - - - - - - - - - ATC & Navigation Fees - - - - - - - - - - - - - Landing & Parking Fees 467 467 467 467 467 467 467 467 467 467 467 467 5,600 Crew Expenses 2,165 2,165 2,165 2,165 2,165 2,165 2,165 2,165 2,165 2,165 2,165 2,165 25,976 Small Supplies 990 990 990 990 990 990 990 990 990 990 990 990 11,880
Total Variable Cost $ 117,683 117,683 640,923 117,683 117,683 129,713 117,683 117,683 117,683 117,683 117,683 118,333 $ 1,948,110
Fixed Cost Month Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 TotalSalaries Pilot/Cockpit Crew $ 11,667 11,667 11,667 11,667 11,667 11,667 11,667 11,667 11,667 11,667 11,667 11,667 $ 140,000 Flight Attendants - - - - - - - - - - - - - Maintenance Technicians - - - - - - - - - - - - - Other - - - - - - - - - - - - - Benefits 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 42,000 Hangar 1,858 1,858 1,858 1,858 1,858 1,858 1,858 1,858 1,858 1,858 1,858 1,858 22,300 Insurance Hull 263 263 263 263 263 263 263 263 263 263 263 263 3,154 Liability 875 875 875 875 875 875 875 875 875 875 875 875 10,500 Miscellaneous Training Pilot/Maintenance 8,600 - - - - - 8,600 - - - - - 17,200 Management Fee - - - - - - - - - - - - - Annual Use Tax (Lease Only) - - - - - - - - - - - - - Property Tax - - - - - - - - - - - - - Registration Fee - - - - - - - - - - - - - Brokerage Fee - - - - - - - - - - - - - New Int/Paint/Avionics - - - - - - - - - - - - - Modernization 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 45,000 Nav/Weather Services 440 440 440 440 440 440 440 440 440 440 440 440 5,279 Comp. Maintenance Service 313 313 313 313 313 313 313 313 313 313 313 313 3,750 Refurbishing 1,163 1,163 1,163 1,163 1,163 1,163 1,163 1,163 1,163 1,163 1,163 1,163 13,950 Other Fixed Cost - - - - - - - - - - - - -
Total Fixed Cost $ 32,428 23,828 23,828 23,828 23,828 23,828 32,428 23,828 23,828 23,828 23,828 23,828 $ 303,133
Finance/Lease Cost $ - - - - - - - - - - - - $ - Acquisition Cost/Residual Value 265,000 - - - - - - - - - - - 265,000 Final/Balloon Payment - - - - - - - - - - - - - Operations Overhead - - - - - - - - - - - - - Administrative Overhead (G&A) - - - - - - - - - - - - -
Total Cost $ 415,110 141,510 664,750 141,510 141,510 153,540 150,110 141,510 141,510 141,510 141,510 142,160 $ 2,516,243
Operating Profit (Loss) $ (415,110) (141,510) (664,750) (141,510) (141,510) (153,540) (150,110) (141,510) (141,510) (141,510) (141,510) (142,160) $ (2,516,243)
Budget Analysis
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
12 Month Maintenance Budget - Inspections and Component Overhauls Nov 2012 through Oct 2013
John Smith Corporate 8-Nov-12 At Start: Total Time 11,900
1978 Bombardier Learjet 24E with ( 2 ) CJ 610-6 N123 Total Years 35
Currency: $ Exchange Rate: 1 / US$ First Yr Utilization: 400 Hrs Total Landings 11,900
Maintenance Cost Summary Month Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 TotalMaintenance Labor $ 16,057 16,057 16,057 16,057 16,057 16,057 16,057 16,057 16,057 16,057 16,057 16,057 $ 192,688 Maintenance Labor - Other - Parts 10,057 10,057 10,057 10,057 10,057 10,057 10,057 10,057 10,057 10,057 10,057 10,057 120,686 Parts - Other - Inspections 467,200 467,200 Engine Restoral - Engine Guaranteed Mx Plan 14,648 14,648 14,648 14,648 14,648 14,648 14,648 14,648 14,648 14,648 14,648 14,648 175,776 Parts Guaranteed Mx Plan - Airframe Guaranteed Mx Plan - Avionics Guaranteed Mx Plan - Component Overhaul (All) 26,350 10,450 250 37,050 Life Limited Components (All) 513 513 30,203 513 513 2,093 513 513 513 513 513 913 37,830
Total Maintenance Cost $ 41,276 41,276 564,516 41,276 41,276 53,306 41,276 41,276 41,276 41,276 41,276 41,926 $ 1,031,230
Inspections Month Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Total1 - 2400 Hour 1 12 - 12 Yr/7200 Hr 3 - 12000 Hour 1 14 - 6000 Landing 1 15 - 6 - 7 - 8 - 9 - 10 - 11 - 12 - 13 - 14 -
Total Inspection Cost $ 467,200 $ 467,200
Component Overhaul Month Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Total1 - Stab Actuator 1 12 - T/R (D Howard) 1 13 - Generator (2) 1 14 - Main Wheel NDT (2) 1 15 - Nose Wheel NDT 1 1 26 - Brakes (2) 1 17 - 8 - 9 - 10 - 11 - 12 - 13 - 14 - 15 - 16 - 17 - 18 - 19 - 20 -
Total Component Overhaul Cost $ 26,350 10,450 250 $ 37,050
(Version 12.2.4 Volume II, 2012)
Budget Analysis
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
20 YEAR BUDGET FORECAST 8-Nov-12 (Version 12.2.4 Volume II, 2012) Page 1
John Smith Corporate
Make/Model: 1978 Bombardier Learjet 24E with ( 2 ) CJ 610-6 Acquisition: Purchase Avg Utilization: 400 Hours/Year
Aircraft Value:$ 265,000 Residual Value:$ 150,411 Currency: $ Exchange Rate 1 / US$ Inflation - General: 3% per Year
Revenue Year 1 2 3 4 5 6 7 8 9 10 11Starting Nov - 2012 Nov - 2013 Nov - 2014 Nov - 2015 Nov - 2016 Nov - 2017 Nov - 2018 Nov - 2019 Nov - 2020 Nov - 2021 Nov - 2022
Annual Charter/Revenue Hrs/Yr - - - - - - - - - - - Hourly Revenue (Incl. Fuel Surcharge) - - - - - - - - - - - Monthly Revenue - - - - - - - - - - -
Total Revenue - - - - - - - - - - - Variable Cost
Annual Utilization 400 400 400 400 400 400 400 400 400 400 400 Fuel $ 867,104 893,117 919,911 947,508 975,933 1,005,211 1,035,368 1,066,429 1,098,421 1,131,374 1,165,315 Fuel Additives/Lubricants 6,320 6,510 6,705 6,906 7,113 7,327 7,546 7,773 8,006 8,246 8,494 CO2 Offset Cost - - - - - - - - - - - Maintenance Labor 192,688 206,151 220,249 235,007 250,452 266,613 283,517 301,196 319,681 339,004 359,198 Maintenance Labor - Other - - - - - - - - - - - Parts 120,686 130,372 140,640 151,521 163,047 175,252 188,174 201,848 216,316 231,618 247,798 Parts - Other - - - - - - - - - - - Inspections 467,200 323,101 - - - - 20,894 - - - - Engine Restoral - - - - - - - - - - - Engine Guaranteed Mx Plan 175,776 181,049 186,481 192,075 197,837 203,773 209,886 216,182 222,668 229,348 236,228 Parts Guaranteed Mx Plan - - - - - - - - - - - Airframe Guaranteed Mx Plan - - - - - - - - - - - Avionics Guaranteed Mx Plan - - - - - - - - - - - Component Overhaul (All) 37,050 25,462 11,352 27,285 16,061 33,828 34,651 17,550 26,792 18,945 44,013 Life Limited Components (All) 37,830 10,109 15,391 11,384 9,523 19,235 62,051 18,726 13,302 12,155 23,403 Other Variable Cost - - - - - - - - - - - ATC & Navigation Fees - - - - - - - - - - - Landing & Parking Fees 5,600 5,768 5,941 6,119 6,303 6,492 6,687 6,887 7,094 7,307 7,526 Crew Expenses 25,976 26,755 27,558 28,385 29,236 30,113 31,017 31,947 32,906 33,893 34,910 Small Supplies 11,880 12,236 12,603 12,982 13,371 13,772 14,185 14,611 15,049 15,501 15,966
Total Variable Cost $ 1,948,110 1,820,631 1,546,831 1,619,171 1,668,877 1,761,616 1,893,976 1,883,150 1,960,236 2,027,390 2,142,850
Fixed Cost Year 1 2 3 4 5 6 7 8 9 10 11Starting Nov - 2012 Nov - 2013 Nov - 2014 Nov - 2015 Nov - 2016 Nov - 2017 Nov - 2018 Nov - 2019 Nov - 2020 Nov - 2021 Nov - 2022
Salaries Pilot/Cockpit Crew $ 140,000 144,200 148,526 152,982 157,571 162,298 167,167 172,182 177,348 182,668 188,148 Flight Attendants - - - - - - - - - - - Maintenance Technicians - - - - - - - - - - - Other - - - - - - - - - - - Benefits 42,000 43,260 44,558 45,895 47,271 48,690 50,150 51,655 53,204 54,800 56,444 Hangar 22,300 22,969 23,658 24,368 25,099 25,852 26,627 27,426 28,249 29,096 29,969 Insurance Hull 3,154 3,248 3,346 3,446 3,549 3,656 3,765 3,878 3,995 4,115 4,238 Liability 10,500 10,815 11,139 11,474 11,818 12,172 12,538 12,914 13,301 13,700 14,111 Miscellaneous Training Pilot/Maintenance 17,200 17,716 18,247 18,795 19,359 19,940 20,538 21,154 21,788 22,442 23,115 Management Fee - - - - - - - - - - - Annual Use Tax (Lease Only) - - - - - - - - - - - Property Tax - - - - - - - - - - - Registration Fee - - - - - - - - - - - Brokerage Fee - - - - - - - - - - - New Int/Paint/Avionics - - - - - - - - - - - Modernization 45,000 46,350 47,741 49,173 50,648 52,167 53,732 55,344 57,005 58,715 60,476 Nav/Weather Services 5,279 5,437 5,600 5,769 5,942 6,120 6,303 6,493 6,687 6,888 7,095 Comp. Maintenance Service 3,750 3,863 3,978 4,098 4,221 4,347 4,478 4,612 4,750 4,893 5,040 Refurbishing 13,950 14,369 14,800 15,244 15,701 16,172 16,657 17,157 17,671 18,202 18,748 Other Fixed Cost - - - - - - - - - - -
Total Fixed Cost $ 303,133 312,226 321,593 331,241 341,178 351,414 361,956 372,815 383,999 395,519 407,385
Finance/Lease Cost $ - - - - - - - - - - - Acquisition Cost/Resale 265,000 - - - - - - - - - - Final/Balloon Payment - - - - - - - - - - - Operations Overhead - - - - - - - - - - - Administrative Overhead (G&A) - - - - - - - - - - -
Total Cost $ 2,516,243 2,132,857 1,868,424 1,950,412 2,010,055 2,113,030 2,255,932 2,255,965 2,344,235 2,422,909 2,550,235
Operating Profit (Loss) $ (2,516,243) (2,132,857) (1,868,424) (1,950,412) (2,010,055) (2,113,030) (2,255,932) (2,255,965) (2,344,235) (2,422,909) (2,550,235)
Budget Analysis
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
Page 2 20 YEAR BUDGET FORECAST
1978 Bombardier Learjet 24E
Corporate
- Parts: 4% per Year
12 13 14 15 16 17 18 19 20 Total RevenueNov - 2023 Nov - 2024 Nov - 2025 Nov - 2026 Nov - 2027 Nov - 2028 Nov - 2029 Nov - 2030 Nov - 2031
- - - - - - - - - - Annual Charter/Revenue Hrs/Yr- - - - - - - - - - Hourly Revenue (Incl. Fuel Surcharge)- - - - - - - - - - Monthly Revenue- - - - - - - - - -
Variable Cost
400 400 400 400 400 400 400 400 400 8,000 1,200,275 1,236,283 1,273,371 1,311,573 1,350,920 1,391,447 1,433,191 1,476,187 1,520,472 $ 23,299,409 Fuel
8,748 9,011 9,281 9,560 9,846 10,142 10,446 10,759 11,082 169,821 Fuel Additives/Lubricants- - - - - - - - - - CO2 Offset Cost
380,299 402,342 425,366 449,409 474,512 500,717 528,067 556,607 586,385 7,277,461 Maintenance Labor- - - - - - - - - - Maintenance Labor - Other
264,902 282,977 302,075 322,248 343,552 366,044 389,785 414,841 441,277 5,094,974 Parts- - - - - - - - - - Parts - Other- 29,650 666,676 - 426,029 - - 41,019 - 1,974,569 Inspections- - - - - - - - - - Engine Restoral
243,315 250,615 258,133 265,877 273,853 282,069 290,531 299,247 308,224 4,723,167 Engine Guaranteed Mx Plan- - - - - - - - - - Parts Guaranteed Mx Plan- - - - - - - - - - Airframe Guaranteed Mx Plan- - - - - - - - - - Avionics Guaranteed Mx Plan
14,811 56,275 20,956 31,991 35,132 39,668 17,685 49,405 43,347 602,260 Component Overhaul (All)12,531 63,097 13,554 16,832 222,831 18,205 27,719 64,299 20,479 692,655 Life Limited Components (All)
- - - - - - - - - - Other Variable Cost- - - - - - - - - - ATC & Navigation Fees
7,752 7,984 8,224 8,471 8,725 8,986 9,256 9,534 9,820 150,474 Landing & Parking Fees35,957 37,036 38,147 39,291 40,470 41,684 42,934 44,222 45,549 697,985 Crew Expenses16,445 16,938 17,446 17,970 18,509 19,064 19,636 20,225 20,832 319,220 Small Supplies
2,185,034 2,392,208 3,033,230 2,473,221 3,204,378 2,678,027 2,769,250 2,986,345 3,007,466 $ 45,001,995
12 13 14 15 16 17 18 19 20 Total Fixed CostNov - 2023 Nov - 2024 Nov - 2025 Nov - 2026 Nov - 2027 Nov - 2028 Nov - 2029 Nov - 2030 Nov - 2031
Salaries193,793 199,607 205,595 211,763 218,115 224,659 231,399 238,341 245,491 $ 3,761,852 Pilot/Cockpit Crew
- - - - - - - - - - Flight Attendants- - - - - - - - - - Maintenance Technicians- - - - - - - - - - Other
58,138 59,882 61,678 63,529 65,435 67,398 69,420 71,502 73,647 1,128,556 Benefits30,868 31,794 32,748 33,731 34,743 35,785 36,859 37,964 39,103 599,209 Hangar
- Insurance4,365 4,496 4,631 4,770 4,913 5,060 5,212 5,369 5,530 84,736 Hull
14,534 14,970 15,420 15,882 16,359 16,849 17,355 17,876 18,412 282,139 LiabilityMiscellaneous
23,809 24,523 25,259 26,017 26,797 27,601 28,429 29,282 30,160 462,170 Training Pilot/Maintenance- - - - - - - - - - Management Fee- - - - - - - - - - Annual Use Tax (Lease Only)- - - - - - - - - - Property Tax- - - - - - - - - - Registration Fee- - - - - - - - 7,822 7,822 Brokerage Fee- - - - - - - - - - New Int/Paint/Avionics
62,291 64,159 66,084 68,067 70,109 72,212 74,378 76,609 78,908 1,209,167 Modernization7,307 7,527 7,752 7,985 8,225 8,471 8,725 8,987 9,257 141,849 Nav/Weather Services5,191 5,347 5,507 5,672 5,842 6,018 6,198 6,384 6,576 100,764 Comp. Maintenance Service
19,310 19,889 20,486 21,101 21,734 22,386 23,057 23,749 24,461 374,842 Refurbishing- - - - - - - - - - Other Fixed Cost
419,606 432,194 445,160 458,515 472,271 486,439 501,032 516,063 539,367 $ 8,153,106 Total Fixed Cost $
- - - - - - - - - $ - Finance/Lease Cost- - - - - - - - (150,411) 114,589 - - - - - - - - - - - - - - - - - - - - Operations Overhead- - - - - - - - - - Administrative Overhead (G&A)
2,604,641 2,824,402 3,478,390 2,931,736 3,676,648 3,164,465 3,270,282 3,502,407 3,396,422 $ 53,269,690 Total Cost $
(2,604,641) (2,824,402) (3,478,390) (2,931,736) (3,676,648) (3,164,465) (3,270,282) (3,502,407) (3,396,422) $ (53,269,690) Operating Profit (Loss) $
Budget Analysis
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
20 Year Maintenance Budget - Inspections and Component Overhauls (Page 1) 8-Nov-12 (Version 12.2.4 Volume II, 2012)
John Smith Corporate Total Time 11,900
Make/Model: 1978 Bombardier Learjet 24E with ( 2 ) CJ 610-6 Avg Utilization: 400 Hrs/Yr Total Years 35
Currency: $ Exchange Rate: 1 / US$ Program Length: 20 Years Total Landings 11,900 Infl
Maintenance Cost Summary Year 1 2 3 4 5 6 7 8 9 10Staring Nov - 2012 Nov - 2013 Nov - 2014 Nov - 2015 Nov - 2016 Nov - 2017 Nov - 2018 Nov - 2019 Nov - 2020 Nov - 2021
Maintenance Labor $ 192,688 206,151 220,249 235,007 250,452 266,613 283,517 301,196 319,681 339,004 Maintenance Labor - Other Parts 120,686 130,372 140,640 151,521 163,047 175,252 188,174 201,848 216,316 231,618 Parts - Other Inspections 467,200 323,101 20,894 Engine Restoral Engine Guaranteed Mx Plan 175,776 181,049 186,481 192,075 197,837 203,773 209,886 216,182 222,668 229,348 Parts Guaranteed Mx Plan Airframe Guaranteed Mx Plan Avionics Guaranteed Mx Plan Component Overhaul (All) 37,050 25,462 11,352 27,285 16,061 33,828 34,651 17,550 26,792 18,945 Life Limited Components (All) 37,830 10,109 15,391 11,384 9,523 19,235 62,051 18,726 13,302 12,155
Total Maintenance Cost $ 1,031,230 876,244 574,113 617,272 636,920 698,701 799,173 755,503 798,759 831,070 1 2 3 4 5 6 7 8 9 10
Inspections Year 1 2 3 4 5 6 7 8 9 101 - 2400 Hour 1 1 2 - 12 Yr/7200 Hr 1 3 - 12000 Hour 1 4 - 6000 Landing 1 5 - 6 - 7 - 8 - 9 -
10 - 11 - 12 - 13 - 14 -
Total Inspection Cost $ 467,200 323,101 20,894
Component Overhaul Year 1 2 3 4 5 6 7 8 9 101 - Stab Actuator 1 1 1 1 1 1 12 - T/R (D Howard) 1 1 3 - Generator (2) 1 1 4 - Main Wheel NDT (2) 1 2 1 2 1 2 1 1 2 15 - Nose Wheel NDT 2 1 1 2 1 1 2 1 1 26 - Brakes (2) 1 2 1 2 1 2 1 1 2 17 - 8 - 9 -
10 - 11 - 12 - 13 - 14 - 15 - 16 - 17 - 18 - 19 - 20 -
Total Component Overhaul Cost $ 37,050 25,462 11,352 27,285 16,061 33,828 34,651 17,550 26,792 18,945
Budget Analysis
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
(Page 2) 20 Year Maintenance Budget - Inspections and Component Overhauls
1978 Bombardier Learjet 24E
ation - General: 3% per Year - Parts: 4% per Year
11 12 13 14 15 16 17 18 19 20 Total YearNov - 2022 Nov - 2023 Nov - 2024 Nov - 2025 Nov - 2026 Nov - 2027 Nov - 2028 Nov - 2029 Nov - 2030 Nov - 2031
359,198 380,299 402,342 425,366 449,409 474,512 500,717 528,067 556,607 586,385 $ 7,277,461 Maintenance Labor - Maintenance Labor - Other
247,798 264,902 282,977 302,075 322,248 343,552 366,044 389,785 414,841 441,277 5,094,974 Parts - Parts - Other 29,650 666,676 426,029 41,019 1,974,569 Inspections - Engine Restoral
236,228 243,315 250,615 258,133 265,877 273,853 282,069 290,531 299,247 308,224 4,723,167 Engine Guaranteed Mx Plan - Parts Guaranteed Mx Plan - Airframe Guaranteed Mx Plan - Avionics Guaranteed Mx Plan
44,013 14,811 56,275 20,956 31,991 35,132 39,668 17,685 49,405 43,347 602,260 Component Overhaul (All)23,403 12,531 63,097 13,554 16,832 222,831 18,205 27,719 64,299 20,479 692,655 Life Limited Components (All)
910,640 915,858 1,084,956 1,686,760 1,086,358 1,775,909 1,206,703 1,253,787 1,425,418 1,399,711 $ 20,365,086 Total Variable Cost11 12 13 14 15 16 17 18 19 20
11 12 13 14 15 16 17 18 19 20 Total Inspections 1 1 4 2400 Hour 1 2 12 Yr/7200 Hr 1 12000 Hour 1 2 6000 Landing
29,650 666,676 426,029 41,019 $ 1,974,569 Total Inspection Cost
11 12 13 14 15 16 17 18 19 20 Total Component Overhaul1 1 1 1 1 1 1 14 Stab Actuator 1 1 4 T/R (D Howard)1 1 4 Generator (2)2 1 2 1 2 1 2 1 1 2 29 Main Wheel NDT (2)1 1 2 1 1 2 1 1 2 1 27 Nose Wheel NDT2 1 2 1 2 1 2 1 1 2 29 Brakes (2)
44,013 14,811 56,275 20,956 31,991 35,132 39,668 17,685 49,405 43,347 $ 602,260 Total Component Overhaul Cost
Budget Analysis
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
20 Year Maintenance Budget - Life Limited Parts and Engine Overhauls (Page 1) 8-Nov-12 (Version 12.2.4 Volume II, 2012) (Page 2) 20 Year Maintenance Budget - Life Limited P
John Smith Corporate Total Time 11,900 1978 Bombardier Learjet 24E
Make/Model: 1978 Bombardier Learjet 24E with ( 2 ) CJ 610-6 Avg Utilization: 400 Hrs/Yr Total Years 35
Currency: $ Exchange Rate: 1 / US$ Program Length: 20 Years Total Landings 11,900 Inflation - General: 3% per Year - Parts: 4% per Year
Life Limited Part Replacement Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 TotalStarting Nov - 2012 Nov - 2013 Nov - 2014 Nov - 2015 Nov - 2016 Nov - 2017 Nov - 2018 Nov - 2019 Nov - 2020 Nov - 2021 Nov - 2022 Nov - 2023 Nov - 2024 Nov - 2025 Nov - 2026 Nov - 2027 Nov - 2028 Nov - 2029 Nov - 2030 Nov - 2031
Name 1 - NG Gear Strut Actuators 2 - MG Gear Strut Actuators 1 13 - Control Syst Cables 1 1 1 1 44 - Spoiler Ass'y 1 1 25 - Generator Bearing (2) 1 1 1 1 1 1 1 1 86 - Windshield (2) 7 - Main Tire (2) 1 2 1 2 1 2 1 1 2 1 2 1 2 1 2 1 2 1 1 2 298 - Nose Tire 2 1 1 2 1 1 2 1 1 2 1 1 2 1 1 2 1 1 2 1 279 -
10 - 11 - 12 - 13 - 14 - 15 - 16 - 17 - 18 - 19 - 20 - 21 - 22 - 23 - 24 - 25 - 26 - 27 - 28 - 29 - 30 -
Total Life Limited Part Cost $ 37,830 10,109 15,391 11,384 9,523 19,235 62,051 18,726 13,302 12,155 23,403 12,531 63,097 13,554 16,832 222,831 18,205 27,719 64,299 20,479 $ 692,655
Engine Restoral Engine #1 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 TotalOverhaul/Inspection
1 - H.S.I 1 1 1 1 1 1 1 1 82 - Overhaul 1 13 - 4 - 5 -
Life Limited Parts1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 -
10 -
Guaranteed Engine #1 Maintenenance Plan Cost $ 87,888 90,525 93,240 96,038 98,919 101,886 104,943 108,091 111,334 114,674 118,114 121,658 125,307 129,066 132,938 136,927 141,034 145,265 149,623 154,112 $ 2,361,583
Engine Restoral Engine #2 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 TotalOverhaul/Inspection
1 - H.S.I 1 1 1 1 1 1 1 1 82 - Overhaul 1 13 - 4 - 5 -
Life Limited Parts1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 -
10 -
Engine #2 Restoral Cost $ 87,888 90,525 93,240 96,038 98,919 101,886 104,943 108,091 111,334 114,674 118,114 121,658 125,307 129,066 132,938 136,927 141,034 145,265 149,623 154,112 $ 2,361,583
Engine Restoral Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 TotalOverhaul/Inspection
1 - H.S.I 2 - Overhaul 3 - 4 - 5 -
Life Limited Parts1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 -
10 -
Engine #3 Restoral Cost $ 87,888 90,525 93,240 96,038 98,919 101,886 104,943 108,091 111,334 114,674 118,114 121,658 125,307 129,066 132,938 136,927 141,034 145,265 149,623 154,112 $ 2,361,583
Engine Restoral Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 TotalOverhaul/Inspection
1 - H.S.I 2 - Overhaul 3 - 4 - 5 -
Life Limited Parts1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 -
10 -
Engine #4 Restoral Cost $ 87,888 90,525 93,240 96,038 98,919 101,886 104,943 108,091 111,334 114,674 118,114 121,658 125,307 129,066 132,938 136,927 141,034 145,265 149,623 154,112 2,361,583
Residual Value Analysis
Copyright 2012, Conklin and de Decker Associates, Inc. PO Box 1142, Orleans, MA 02653 (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
Residual Value AnalysisFor: John Smith 8-Nov-12
Aircraft: Bombardier Learjet 24Ewith ( 2 ) General Electric CJ 610-6
Registration Number: N123Serial Number: 123
Year: 1978
Acquisition: Purchase
Resale Value Adjustment Betterment & Detriment
Program length: 20 Years
Currency: $
Inflation - General: 3% per YearInflation - Parts 4% per Year
Type of operation: Corporate
Base of operation: Texas
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.- Personal Property Tax - State Sales/Use Tax = 6.25%
Residual Value Analysis
Copyright 2012, Conklin and de Decker Associates, Inc. PO Box 1142, Orleans, MA 02653 (508) 255 5975 www.conklindd.com
The information in this report is an estimate only, not a guarantee of future results.
Residual Value Summary 8-Nov-12
For: John Smith
Aircraft: Bombardier Learjet 24E with ( 2 ) CJ 610-6
Year: 1978
Purchase price: $ 265,000 Adjusted Residual Value in 2032
Program length: 20 Years Assumptions: Inflation 3.00%
Acquisition: Purchase Guaranteed Maint. Programs - Engine Yes - Parts/components No - Avionics No Type of operation: Corporate - Aircraft No Analysis: Avg Flight Hrs per Yr 400 Hours Base $ 148,697
AdjustmentsToday: Total Time 11,900 - Major Inspections (97,514)
Total Cycles 11,900 - Component Overhaul 3,618 Age (Yrs) 35 - Life Limited Parts Replacement 95,609
In 2032 Total Time 19,900 - Engine Restoral - Total Cycles 19,900 Adjusted Resale Value $ 150,411 Age (Yrs) 55
(Calculation Basis - Betterment & Detriment)
(300,000)
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year
20-Year Residual Value Trend Adjusted Value
Base Value
0
200000
400000
600000
800000
1000000
1200000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year
Heavy Maintenance Budget (Components/Engine/Major Inspections)
Heavy Mx Budget
(300,000)
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year
Equity Analysis Adjusted Value
Remaining Balance
Residual Value Analysis
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
Residual Value Analysis - Inspections and Component Overhauls (Page 1) 8-Nov-12 (Version 12.2.4 Volume II, 2012)
John Smith Corporate Total Time 11,900
Make/Model: 1978 Bombardier Learjet 24E with ( 2 ) CJ 610-6 Avg Utilization: 400 Hrs/Yr Total Years 35
Currency: $ Exchange Rate: 1 / US$ Program Length: 20 Years Total Landings 11,900 Program Assumptions: Year 1 2 3 4 5 6 7 8 9
Starting Nov - 2012 Nov - 2013 Nov - 2014 Nov - 2015 Nov - 2016 Nov - 2017 Nov - 2018 Nov - 2019 Nov - 2020 Inflation/Year 3.00% Guaranteed Maint. Plan - Engine Yes - Parts/components No - Avionics No - Aircraft No Annual Utilization 400 400 400 400 400 400 400 400 400 Residual Value Summary Base Aircraft $ 251,750 245,655 238,968 231,658 223,695 215,045 208,840 205,327 201,416 Adjustments - Major Inspections 67,957 344,024 312,227 274,119 229,225 177,047 137,952 70,898 (5,049) - Component Overhaul 5,997 9,045 (2,604) 633 (7,976) 183 8,647 (522) (1,533) - Life Limited Parts Replacement 73,262 62,234 55,264 43,328 28,397 21,424 53,684 45,049 30,135 - Engine Restoral - - - - - - - - -
Net Residual Value $ 398,966 660,958 603,855 549,738 473,341 413,698 409,122 320,753 224,969
Adjustments - Inspections Year 1 2 3 4 5 6 7 8 91 - 2400 Hour 5,325 3,165 676 (2,165) (5,383) (9,005) 7,835 4,624 982 2 - 12 Yr/7200 Hr (148,218) 137,602 118,246 95,475 69,038 38,671 4,094 (34,990) (78,890) 3 - 12000 Hour 133,000 132,307 130,687 128,060 124,345 119,455 113,296 105,771 96,778 4 - 6000 Landing 77,850 70,950 62,619 52,748 41,224 27,926 12,727 (4,507) (23,919) 5 - - - - - - - - - - 6 - - - - - - - - - - 7 - - - - - - - - - - 8 - - - - - - - - - - 9 - - - - - - - - - - 10 - - - - - - - - - - 11 - - - - - - - - - - 12 - - - - - - - - - - 13 - - - - - - - - - - 14 - - - - - - - - - -
Total Inspection Betterment 216,174 344,024 312,227 276,283 234,608 186,052 137,952 110,396 97,760 Total Inspection Detriment (148,218) - - (2,165) (5,383) (9,005) - (39,497) (102,809)
Total Inspection Adjustment $ 67,957 344,024 312,227 274,119 229,225 177,047 137,952 70,898 (5,049)
Adjustments - Component Overhaul Year 1 2 3 4 5 6 7 8 91 - Stab Actuator (0) 1,226 (1,263) (0) 1,339 (1,380) (0) 1,463 (1,508) 2 - T/R (D Howard) 5,437 3,111 641 (1,981) (4,760) (7,704) 6,493 3,715 765 3 - Generator (2) 2,810 1,241 (426) (2,194) (4,067) 3,258 1,438 (494) (2,543) 4 - Main Wheel NDT (2) (102) 147 (65) 201 (23) 261 24 (226) 78 5 - Nose Wheel NDT 125 43 (44) 137 47 (48) 149 51 (53) 6 - Brakes (2) (2,273) 3,277 (1,447) 4,470 (512) 5,796 542 (5,032) 1,727 7 - - - - - - - - - - 8 - - - - - - - - - - 9 - - - - - - - - - - 10 - - - - - - - - - - 11 - - - - - - - - - - 12 - - - - - - - - - - 13 - - - - - - - - - - 14 - - - - - - - - - - 15 - - - - - - - - - - 16 - - - - - - - - - - 17 - - - - - - - - - - 18 - - - - - - - - - - 19 - - - - - - - - - - 20 - - - - - - - - - -
Total Component Overhaul Betterment 8,373 9,045 641 4,808 1,386 9,315 8,647 5,230 2,570 Total Component Overhaul Detriment (2,375) - (3,245) (4,174) (9,362) (9,132) (0) (5,752) (4,103)
Total Component Overhaul Adjustment $ 5,997 9,045 (2,604) 633 (7,976) 183 8,647 (522) (1,533)
Residual Value Analysis
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
(Page 2) Residual Value Analysis - Inspections and Component OverhaulsResidual Value Calculation includes: 1978 Bombardier Learjet 24E
Betterment & Detriment
10 11 12 13 14 15 16 17 18 19 20 Program Assumptions:Nov - 2021 Nov - 2022 Nov - 2023 Nov - 2024 Nov - 2025 Nov - 2026 Nov - 2027 Nov - 2028 Nov - 2029 Nov - 2030 Nov - 2031
Inflation/Year Guaranteed Maint. Plan - Engine - Parts/components
- Aircraft400 400 400 400 400 400 400 400 400 400 400 Annual Utilization
Residual Value Summary197,086 192,314 187,079 181,357 175,123 168,351 165,145 161,594 157,682 153,389 148,697 Base Aircraft
Adjustments(90,506) (186,122) (292,581) (380,951) 157,081 53,075 362,879 257,147 138,552 47,248 (97,514) - Major Inspections(11,256) 2,940 (12,525) 12,098 1,203 51 1,009 5,506 (12,900) (1,227) 3,618 - Component Overhaul12,746 4,056 (15,783) 7,767 (13,177) (32,995) 123,634 106,738 96,171 114,684 95,609 - Life Limited Parts Replacement
- - - - - - - - - - - - Engine Restoral108,070 13,188 (133,810) (179,729) 320,230 188,482 652,667 530,986 379,505 314,095 150,411 Net Residual Value
10 11 12 13 14 15 16 17 18 19 20 Inspections(3,123) (7,721) (12,845) 11,119 6,531 1,380 (4,371) (10,763) (17,836) 15,382 9,003 2400 Hour
(127,935) (182,471) (242,860) (309,486) 283,923 241,275 192,777 138,025 76,594 8,037 (68,120) 12 Yr/7200 Hr86,207 73,944 59,867 43,849 25,754 5,442 (17,239) (42,444) (70,341) (101,103) (134,915) 12000 Hour
(45,655) (69,875) (96,742) (126,432) (159,127) (195,021) 191,712 172,329 150,134 124,933 96,519 6000 Landing- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
86,207 73,944 59,867 54,967 316,208 248,097 384,489 310,354 226,729 148,351 105,521 (176,714) (260,066) (352,448) (435,918) (159,127) (195,021) (21,610) (53,207) (88,177) (101,103) (203,035) (90,506) (186,122) (292,581) (380,951) 157,081 53,075 362,879 257,147 138,552 47,248 (97,514) Total Inspection Adjustment
10 11 12 13 14 15 16 17 18 19 20 Component Overhaul(0) 1,599 (1,647) (0) 1,747 (1,800) (0) 1,910 (1,967) (0) 2,087 Stab Actuator
(2,365) (5,684) (9,199) 7,752 4,436 914 (2,824) (6,787) (10,985) 9,257 5,297 T/R (D Howard)(4,715) 3,777 1,667 (573) (2,948) (5,466) 4,379 1,933 (664) (3,418) (6,336) Generator (2)
(187) 137 (142) 204 (90) 278 (32) 361 34 (313) 108 Main Wheel NDT (2)163 56 (58) 178 61 (63) 195 67 (69) 213 73 Nose Wheel NDT
(4,152) 3,054 (3,146) 4,536 (2,003) 6,187 (709) 8,023 751 (6,965) 2,391 Brakes (2)- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 163 8,623 1,667 12,671 6,245 7,380 4,573 12,293 784 9,470 9,955
(11,419) (5,684) (14,193) (573) (5,041) (7,329) (3,565) (6,787) (13,684) (10,696) (6,336) (11,256) 2,940 (12,525) 12,098 1,203 51 1,009 5,506 (12,900) (1,227) 3,618 Total Comp. Overhaul Adjustment
Residual Value Analysis
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
Residual Value Analysis - Life Limited Parts and Engine Overhauls (Page 1) 8-Nov-12 (Version 12.2.4 Volume II, 2012)
John Smith Corporate Total Time 11,900
Make/Model: 1978 Bombardier Learjet 24E with ( 2 ) CJ 610-6 Avg Utilization: 400 Hrs/Yr Total Years 35
Currency: $ Exchange Rate: 1 / US$ Program Length: 20 Years Total Landings 11,900
Adjustments - Life Limited Part Replacement Year 1 2 3 4 5 6 7 8 9Starting Nov - 2012 Nov - 2013 Nov - 2014 Nov - 2015 Nov - 2016 Nov - 2017 Nov - 2018 Nov - 2019 Nov - 2020
Name1 - NG Gear Strut Actuators (4,738.02) (5,728.88) (6,774.93) (7,878.58) (9,042.36) (10,268.87) (11,560.84) (12,921.08) (14,352.53) 2 - MG Gear Strut Actuators ( 12,239.90 8,404.69 4,328.36 (0.11) (4,592.19) (9,459.79) (14,615.32) (20,071.67) (25,842.24) 3 - Control Syst Cables 8,699.90 4,978.23 1,025.43 (3,169.01) (7,616.05) (12,327.06) 10,388.14 5,944.27 1,224.42 4 - Spoiler Ass'y 1,441.62 (495.02) (2,549.16) (4,726.10) (7,031.36) (9,470.68) 8,607.07 6,501.19 4,261.21 5 - Generator Bearing (2) 1,217.94 (1,254.60) 2,584.29 (0.07) (2,741.81) 1,411.93 (1,454.43) 2,995.90 (0.08) 6 - Windshield (2) 54,560.00 55,743.60 56,949.11 58,176.79 59,426.87 60,699.59 61,995.20 63,313.91 64,655.94 7 - Main Tire (2) (359.15) 517.75 (228.64) 706.24 (80.90) 915.76 85.69 (795.02) 272.86 8 - Nose Tire 199.99 68.65 (70.74) 218.53 75.02 (77.30) 238.79 81.98 (84.47) 9 - - - - - - - - - -
10 - - - - - - - - - - 11 - - - - - - - - - - 12 - - - - - - - - - - 13 - - - - - - - - - - 14 - - - - - - - - - - 15 - - - - - - - - - - 16 - - - - - - - - - - 17 - - - - - - - - - - 18 - - - - - - - - - - 19 - - - - - - - - - - 20 - - - - - - - - - - 21 - - - - - - - - - - 22 - - - - - - - - - - 23 - - - - - - - - - - 24 - - - - - - - - - - 25 - - - - - - - - - - 26 - - - - - - - - - - 27 - - - - - - - - - - 28 - - - - - - - - - - 29 - - - - - - - - - - 30 - - - - - - - - - -
Total Life Limited Parts Betterment 78,359.35 69,712.93 64,887.20 59,101.55 59,501.88 63,027.28 81,314.88 78,837.24 70,414.44 Total Life Limited Parts Detriment (5,097.17) (7,478.51) (9,623.46) (15,773.87) (31,104.67) (41,603.71) (27,630.59) (33,787.76) (40,279.32)
Total Life Limited Parts Adjustment $ 73,262.18 62,234.43 55,263.73 43,327.68 28,397.22 21,423.57 53,684.30 45,049.48 30,135.12
Engine Restoral Engine #1 Year 1 2 3 4 5 6 7 8 9Overhaul/Inspection Adjustment
1 - H.S.I 12,619.37 (12,999.25) 26,776.45 (0.69) (28,408.55) 14,629.31 (15,069.69) 31,041.24 (0.80) 2 - Overhaul 12,919.35 (13,308.27) (41,121.17) (70,590.87) (101,791.74) (134,801.14) (169,699.48) 190,678.85 163,665.88 3 - - - - - - - - - - 4 - - - - - - - - - - 5 - - - - - - - - - -
Life Limited Parts Adjustment1 - - - - - - - - - - 2 - - - - - - - - - - 3 - - - - - - - - - - 4 - - - - - - - - - - 5 - - - - - - - - - - 6 - - - - - - - - - - 7 - - - - - - - - - - 8 - - - - - - - - - - 9 - - - - - - - - - -
10 - - - - - - - - - -
Engine Restoral Adjustment Covered by Engine Plan $ 25,539 (26,308) (14,345) (70,592) (130,200) (120,172) (184,769) 221,720 163,665
Residual Value Analysis
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
(Page 2) Residual Value Analysis - Life Limited Parts and Engine Overhauls
Residual Value Calculation includes: 1978 Bombardier Learjet 24E
Betterment & Detriment
10 11 12 13 14 15 16 17 18 19 20 Adjustments - Nov - 2021 Nov - 2022 Nov - 2023 Nov - 2024 Nov - 2025 Nov - 2026 Nov - 2027 Nov - 2028 Nov - 2029 Nov - 2030 Nov - 2031
Life Limited Part Replacement(15,858.24) (17,441.37) (19,105.22) (20,853.21) (22,688.88) (24,615.92) (26,638.16) (28,759.58) (30,984.32) (33,316.65) (35,761.04) NG Gear Strut Actuators (31,940.98) (38,382.39) (45,181.53) (52,354.09) (59,916.33) (67,885.18) 66,743.17 62,198.26 57,320.59 52,094.28 46,502.80 MG Gear Strut Actuators (2)
(3,783.97) (9,093.96) (14,719.15) 12,403.98 7,097.77 1,462.02 (4,518.26) (10,858.67) (17,575.44) 14,811.00 8,475.11 Control Syst Cables1,880.99 (645.89) (3,326.07) (6,166.48) (9,174.33) (12,357.09) 11,230.27 8,482.58 5,559.92 2,454.26 (842.74) Spoiler Ass'y
(3,178.51) 1,636.81 (1,686.08) 3,473.07 (0.09) (3,684.76) 1,897.51 (1,954.63) 4,026.24 (0.10) (4,271.65) Generator Bearing (2)66,021.52 67,410.85 68,824.11 70,261.50 71,723.19 73,209.34 74,720.12 76,255.65 77,816.07 79,401.48 81,011.98 Windshield (2)
(656.02) 482.51 (497.15) 716.69 (316.49) 977.60 (111.98) 1,267.63 118.61 (1,100.49) 377.70 Main Tire (2)260.94 89.58 (92.30) 285.13 97.88 (100.86) 311.57 106.96 (110.21) 340.46 116.88 Nose Tire
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
68,163.45 69,619.74 68,824.11 87,140.37 78,918.84 75,648.96 154,902.64 148,311.07 144,841.42 149,101.48 136,484.47 (55,417.72) (65,563.62) (84,607.51) (79,373.78) (92,096.10) (108,643.81) (31,268.39) (41,572.88) (48,669.97) (34,417.24) (40,875.43) 12,745.73 4,056.12 (15,783.41) 7,766.59 (13,177.26) (32,994.85) 123,634.24 106,738.19 96,171.45 114,684.24 95,609.04 Total Life Limited Part Cost
10 11 12 13 14 15 16 17 18 19 20 Engine Restoral
(32,933.30) 16,959.38 (17,469.90) 35,985.31 (0.93) (38,178.72) 19,660.57 (20,252.41) 41,716.83 (1.07) (44,259.60) 134,860.51 104,179.53 71,536.31 36,840.74 (0.95) (39,086.30) (80,516.76) (124,397.88) (170,839.40) (219,955.45) (271,864.71)
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
101,927 121,139 54,066 72,826 (2) (77,265) (60,856) (144,650) (129,123) (219,957) (316,124) Total Engine Restoral Adjustment
Life Cycle Cost and Budget Analysis
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA. (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
Maintenance Input Data Bombardier Learjet 24E with 2 General Electric CJ 610-6(Version 12.2.4 Volume II, 2012)Labor MH/FH Parts $ / FH Database Date: Aircraft 9.78 MH/FH Aircraft 636.87 /FH Jul-12
GMP Other: 0.00 Other: 0.00
Guaranteed Maintenance Plans Step 1 Step 2 Step 3 Step 4 Step 5 Step 6Engine: Cost/FH $ 411 432 439
Thru Year 40 50 60 Thru Hours 1,000 5,000
Parts:
Avionics:
Aircraft:
Inspections Insp. Cost Inspection Cycle Frequency Time Since Last InspectionName: (Current Cost) Start (Hrs) Hours Cycles Years Hours Cycles Months
Recurring 1 $ 14,200 2400 2,300 2 302,000 7200 12 4,700 130.553 280,000 12000 11,900 4 173,000 6000 5,900 5 6 7 8 9
10 11 12
One Time 1 2
Component Overhaul Overhaul Cost Prem Removals Frequency Time Since OverhaulName: (Current Cost) /1000 HR Hours Cycles Years Hours Cycles Months
1 Stab Actuator $ 3,570 600 500 2 T/R (D Howard) 14,500 2400 2,300 3 Generator (2) 8,030 2000 1,900 4 Main Wheel NDT (2) 450 275 75 5 Nose Wheel NDT 250 300 200 6 Brakes (2) 10,000 275 75 7 8 9
10 11 12 13 14 15 16 17 18 19 20
2400 Hour12 Yr/7200 Hr12000 Hour6000 Landing
Life Cycle Cost and Budget Analysis
Copyright 2012, Conklin and de Decker Associates, Inc., Orleans, MA. (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
Life Limited Parts Parts Cost Prem Removals Frequency Time Since Last ReplacementName: (Current Cost) /1000 HR Hours Cycles Years Hours Cycles Months
1 NG Gear Strut Actuators $ 41,200 20000 11,900 2 MG Gear Strut Actuators (2) 91,800 9000 2,900 3 Control Syst Cables 23,200 2400 2,300 4 Spoiler Ass'y 17,300 3600 1,100 5 Generator Bearing (2) 6,090 1000 900 6 Windshield (2) 110,000 0.14 7 Main Tire (2) 1,580 275 75 8 Nose Tire 400 300 200 9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
The cost of engine heavy maintenance is included in the Engine Guaranteed Maintenance PlanEngine Restoral/Heavy Maintenance General Electric Total Cost Prem Removals
Engine #1 Name: (Current Cost) /1000 HR Hours Cycles Years Hours Cycles MonthsInspection 1 H.S.I $ 63,100 1000 900
2 Overhaul 323,000 5000 1,900 3 4 5
Replacement 1 2 3 4 5 6 7 8 9
10
Frequency Time/Cycles Since Last Restoral
Life Cycle Cost and Budget Analysis
Copyright 2012, Conklin and de Decker Associates, Inc. Orleans, MA (508) 255 5975 www.conklindd.comThe information in this report is an estimate only, not a guarantee of future results.
Input Data 0
Currency: $ Exchange Rate = 1 / US$
Customer: John Smith Type of Operation: Corporate
Date of Analysis: 8-Nov-12Type of Analysis: Financial Analysis
Aircraft: Bombardier Learjet 24E Engines: ( 2 ) CJ 610-6 Acquisition Method: Purchase
Current Status: Depreciation Method: Straightline Total Time Since New: 11900 Year Manufactured: 1978 Term (Years) 30 Total Cycles Since New: 11900 Residual Value (%) 15
Base of Operation: Texas
Program Length (Years): 20 Average Flight Hours/Yr: 400 Cycles per Flt Hr (Airframe): 1.00 -$ Cycles per Flt Hr (Engine): 1.00 -$
Acquisition Cost - Purchase: -$ Purchase Price $ 265,000 State Sales Tax/VAT - Aircraft Value: $ 265,000 Training/Spares/Other - Resale Value (Base) with Inflation: 56.1% Refurb/Modification - Registration Fee/Yr: $ 0 Trade-in - State Use Tax/Yr: $ 0 Total 265,000 Property Tax/Yr $ 0
Brokerage Fee: $ 4,461
Revenue Data: Financial Data: Inflation - General 3.00%Charter Revenue per Month $ - Inflation - Parts 4.00%Charter Revenue per Hour $ - Desired ROI 0.0%Fuel Surcharge per Hour $ - Corp Tax Rate 0.0%Variable Cost Input: Capital Gains Tax 0.0%Fuel Cost $ 6.86 Fuel Consumption (Gallon) 316 Maintenance Labor Rate $ 93.00 Other Variable Cost $ - CO2 Emission (Metric Tonnes) 3.03 ATC & Navigation Fees - CO2 Offset Cost $ - Landing & Parking Fees 14 Fixed Cost Input Crew Expenses 65 Salaries/Aircraft Small Supplies/Catering 30 Crew/Aircraft Ratio 1.0 Pilots/Cockpit Crew $ 140,000 Hangar Cost $ 22,300 Flight Attendants $ - Maintenance Technicians $ - Nav & Weather Service 5,279 Other $ - - Benefits (% of Salaries): 30% Other Fixed Cost $ - Training Cost $ 17,200 Insurance: Hull (% of Insured Value) 1.19% Operations Overhead 0% Insurance: Liability $ 10,500 Administrative Overhead 0% Modernization $ 45,000 Operations Overhead $ - Refurbishing Cost $ 13,950 Administrative Overhead $ - Computer Maint Mgmt System $ 3,750