EFTA02708125.pdf

From: Sent: Wednesday, October 9, 2013 10:13 PM To: jeevacation@gmail.com Subject: B727 Attachments: B727engineinspection.pdf; FuelpriceDubia.pdf Jeffrey, how does this email to the Sultan look? can you insert corrections=please? I will send after you approve. thx, Larry Dear Sultan, in response to operational cost, Pleas see my comments in BLUE ink to =our original email. I have compiled actual cost to address these numbers that were =resented to you,. many of these numbers are inflated. I have attached the&=bsp;actual cost of the #2 engine corrosion inspection for your review= Price for #2 engine was $237,000.00 and will not be due until 2021 now, i=s a 8 year inspection on this engine. Engines #1 and #3 are due every 9 years, and come due 2014, next year.=l have included a verbal quote received today from Atlantic Gas Turbines i= Miami, price for #1and #3 engines is $118,500 per engine, howe=er that does not include possible repair of LLP turbine disc that may requ=re additional replacement, "IF" needed price per engine is budged at =225k to MAX of $300k for each engine total, see email below: NOT the=$1M per engine your email states below: Engines #1 and #3 are verbally quoted in this email from today: From: Date: October 9, 2013, 5:30:50 PM EDT To: Subject: 219 Engines: Repair Estimate<=b> Hi Larry= I discussed with Atlantic Gas Turbine Corp today =he two 219 engines that will require ASB 6435 HPC Corrosion Inspection and Hot Section Inspection of exposed combustion =ardware. They verbally indicated a fixed price to accompli=h ASB 6435/ AD HPC Corrosion Inspection HSI Inspection Test/ Fuel and Oil all Build Up ( 100% expendables) parts Strip/ Repair and Recoat of HPC Disks Return engine to service. Preserve Long Term Pricing was quoted at $118,500.00 per engine. EFTA_R1_02108678 EFTA02708125  LLP Replacement will be considered Over and Above=this pricing as will any other requirements to the engine due =o exposure for ASB 6435. With replacement of LLPs and possibly requirement= to the N1Compressor/ Fan Section due to condition a good budgetary estimate for Repair of the engin=s would be in the range of $ 225K to $300K per engine. AGTC can provide a written quotation at your=request. Thanks Michael Maier A dry lease is a leasing arrangement whereby an aircraft financing =ntity, such as GECAS and ILFC (lessor), provides an aircraft without insurance, crew, ground =taff, supporting equipment, maintenance, etc.) then you would pay a fixed =ost for the "lease" of the aircraft and then be responsibl= for all other direct operating costs plus maintenance. I have attached a breakdo=n of what the fixed costs are estimated to be. As you will see this is app=ox. $1,220,651 per year. The more hours you fly th=n your hourly cost comes down. However, for example, x2 =f the engines are due AD 2003-16-05, this involves a complete engine strip=down, and I estimate this will cost approx. $1mill per engine as well as =months down time. There is mention of Crew Training at a cost of $99,=00.00 per year, I use FAA approved PanAM Flight academy in Miami trai=ing my pilots for $6,500 for TOTAL for all three crew member,. FUEL Pricin=: I have atta=hed quote. Insurance cost for 2013=was $125,000 BOEING VIP SUPER 727 ESTIM=TED VARIABLE COSTS PER HOUR 2 EFTA_R1_02108679 EFTA02708126 Corporate Fuel (1) $11,623.50 Fuel Additives 0.00 Maintenance Labor (2) 427.50 Parts Airframe/Eng/Avion (3) 197.43 Engine Restoration (4) 627.06 Thrust Reverser Allowanceaspan> 12.54 Propeller Allowance./div> 0.00 APU Allowance 68.97 Major Periodic Maintenance=/span> 0.00 216.21 - Crew Expenses 290.58 Supplies/Catering=/div> 153.30 - Other 0.00 Total Variable Cost/Hour <=ont face="Times New Roman"> <=pan style='font-family: "Arial","sans-serif"; font-size: 10pt; mso-hansi=theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi=theme-font: minor-bidi; mso-bidi-font-size: 11.0pt; mso-hansi-font- family:=Calibrif>$13,617.09=/div> Cost per Nautical Mile $31.30 Average Speed-Kts (5) 435.00 REFERENCE Size of operation: Date: 10/6/2013 3 EFTA_R1_02108680 EFTA02708127  &nbs=; &=bsp; Currency: $=/div> 1. Fuel Cost 7.38 Gallons/Hour Blk Fuel/Flt Time +15%=o:p> 1,575 2. Maint Labor Cost per Hr 90.00 Maint. Hrs/Flt Hours 4.75 Aircraft Model Year 1984 3. Inc' Engine Parts Cost=/span> No=o:p> Engine Model JT8D-17 & 217C 4. Overhaul Cost Source</=pan> Estimated 5. Block Speed Source Mftr Data ANNUAL FIXED COSTS 8727 VIP Super 27 Corpor=te <file:///C:/Users/Owner/AppData/Loca=/Temp/msohtmIclip1/01/clip_image001.gif> =!--[enditi-->Crew Salaries - Captain (6) &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; $161,000 cont size="2">Co Pilot=nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; 120,000 <=ont size="2">Flt Attendant &n=sp; = &n=sp; = &n=sp; = &n=sp; = 90,000 4 EFTA_R1_02108681 EFTA02708128  <=ont size="2">Flt Eng/Other &n=sp; = &n=sp; = &n=sp; = &n=sp; = &n=sp; 0 <=ont size="2">Benefits=nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =111,300 Hangar - Typical &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; 179,600 Insurance -Hull (7) =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; 160,000=/font> Single Limit Liability &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; <file:///ClUsers/Owner/AppData/Loca=/Temp/msohtmIclip1/01/clip_image002.gif> =ecurrent Training &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; 99,000</=:p> Aircraft Modernization (8) =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; 75,000</=:p> Navigation Chart Service &n=sp; = &n=sp; = &n=sp; = &n=sp; = &n=sp; 15,001 Refurbishing (9) &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; 179,550 Computer Maintenance Program (10)13,500<=0:p> Weather Serv=ce (11) =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; </=pan>700 Other Fixed Costs &n=sp; = &n=sp; = &n=sp; — &n=sp; = &n=sp; 0 Frac Mgmt Fee/Yr + Tax &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; 0 <file:///C:/Users/Owner/AppData/Loca=/Temp/msohtmIclip1/01/clip_image003.gif> <file:///C:/Users/Owner/AppData/Loca./Temp/msohtmIclip1/01/clip_image003.gif> =otal Fixed Cost/Year &n=sp; = &n=sp; = &n=sp; = &n=sp; = $1,220,651<=pan style='font-family: "Arial","sans-serif'; font-weight: normal; mso-f=reast-font-family: Arial;'> REFERENCE Size of operation: Date: 10/6/2013 = Currency: $ 6. Crew Salary Source 12 NBAA Number of Crew 3=o:p> 7. Ins Hull Value/Frac Share Cost $8,000,000 Hull Insurance Rate (%)<=span> 2.00 8. Modernization</=iv> 5 EFTA_R1_02108682 EFTA02708129 10 Yr Avg 9. Refurbish Labor Hrs/Seat 105 10. Comp Mx Program Source Typical 11. Weather Service Source Typical 8727 VIP Super 27 Corporate Utilization - Nt. Miles 175,000 - Hours 402 <=ont face="Calibri"> <=ont face="Calibri"> Variable Cost <=ont face="Calibri"> <=ont face="Calibri"> 5,474,070 Fixed Cost 1,220,651 Total Cost (No Depreciation) $6,694,721 - Per Hour 16,654 - Per Nt. Mile 38.28 - Per Seat Nt. Mile 2.01=o:p> <=ont face="Calibri"> 6 EFTA_R1_02108683 EFTA02708130 <=ont face="Calibri"> Total Cost (No Depreciation)=/span> <=ont face="Calibri"> <=ont face="Calibri"> 6,694,721 Book Depreciation (12) 800,000 Total Cost (Book Dep.) $7,494,721 - Per Hour 18,644 - Per Nt. Mile 42.86 - Per Seat Nt. Mile 2.26=o:p> <=ont face="Calibri"> <=ont face="Calibri"> Total Cost (No Depreciation)=/span> <=ont face="Calibri"> <=ont face="Calibri"> 6,694,721 Market Depreciation (13)</=pan> 320,000 Total Cost (Market Dep) $7,014,721 - Per Hour 17,450 - Per Nt. Mile 40.11 - Per Seat Nt. Mile 2.11=o:p> REFERENCE Size of operation: &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; Date: 10/6/2013<=pan style="mso- tab-count: 1;"> =nbsp; &n=sp; = Currency: = &n=sp; • &n=sp; • &n=sp; $ =!--(if isupportLists]-->12. Book Depreciation <=span>Rate &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; 10 7 EFTA_R1_02108684 EFTA02708131 =!--[if Isupportlists]-->13. Market Depreciation=Rate = &n=sp; &n=sp; &n=sp; = 4<=div> GENERAL COMPARISON 8727 VIP Super 27 &n=sp; Corporat= <file:///ClUsers/Owner/AppData/Loca=/Temp/msohtmIclip1/01/clip_image004.gif> =!--[endifJ-->Cabin Height (Ft) =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; 6.90 - Width &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; 11.50 - =font size="2">Length&=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; 92.70=o:p> Cabin Volume (Cu. Ft.) &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; 6,425.00 Cabin Door Height (Ft.) =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; 6.00 <=ont size="2">Width&nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; 2.80=/span> Baggage - Int. (Cu.Ft.) &n=sp; = &n=sp; &n=sp; = &n=sp; = &n=sp; 10.00</=pan> <=ont size="2">External=nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; 750.00 <file:///ClUsers/Owner/AppData/toca./Temp/msohtmIclip1/01/clip_image003.gif> =ypical Crew/Pass Seating =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; </=pan>3 / 19 Weight - Max Take-off (Lbs.) &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; 194,800 <=ont size="2">Maximum Landing &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; 158,000<=span> cont size="2">Basic Operating &n=sp; = &n=sp; = &n=sp; = &n=sp; = 115,000 <=ont size="2">Usable Fuel &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; 77,260 8 EFTA_R1_02108685 EFTA02708132 Payload-Full Fuel (Lbs.) =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; 3,240 <=--(if gte vml 1]> Maximum &n=sp; = &n=sp; = &n=sp; = &n=sp; = &n=sp; 26,000 <file:///ClUsers/Owner/AppData/Loca=/Temp/msohtmIclip1/01/clip_image002.gif> =ertified &n=sp; &n=sp; = &n=sp; = &n=sp; = &n=sp; Yes <file:///ClUsers/Owner/AppData/Loc=l/Temp/msohtmIclip1/01/clip_image003.gif> &n=sp; = &n=sp; • &n=sp; • &n=sp; &n=sp; Yes Price - New (Corporate)/1000 &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; $0 - Pre Owned Rng/1000 &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; 5000 / 8000 <file:///ClUsers/Owner/AppData/Loc=l/Temp/msohtmIclip1/01/clip_image005.gif> = Years Produced &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; 1968 1984 PERFORMANCE COMPARISON 8727 VIP Super 27</=pan> Corpor=te <file:///C:/Users/Owner/AppData/Loc=l/Temp/msohtmIclip1/01/clip_image006.gif> Range - NB=A IFR Res (N. Mi.)</=iv> - 4 Passenger 3,900 - Ferry Range 4,050 Range - 30 Min. Res (N. Mi.) 0<=:p> - 4 Passenger 0<=:p> - Ferry Range 0<=:p> 9 EFTA_R1_02108686 EFTA02708133 Balanced Field Length (Ft.)<=span> 5,550 landing Distance - FAR 91 2,250 Landing Distance - FAR 121</=pan> 3,750 Landing Distance - FAR 1354=pan> 2,813 Rate of Climb (Ft/Min) &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; =nbsp; &nb=p; 2,380 <file:///C:/Users/Owner/AppData/Loc=l/Temp/msohtmIclip1/01/clip_image007.gif> -=One Engine Out 84=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; &nbs=; &=bsp; 0 Cruise Speed - Max (KTAS) 485 - Long Range 455 Ceiling Certified MTOW (Ft.)=/span> 42,000 - Service 42,000 - Service OEI 31,000 Ceiling Service HIGE (Helicopter Only)=o:p> 0=o:p> Ceiling Service HOGE (Helicopter Only)<=:p> 0<=:p> 10 EFTA_R1_02108687 EFTA02708134