Aircraft Leasing Life Cycle Service - Aviation Asset Management Services

Aviation Asset AIRCRAFT LEASING Management LIFECYCLE SERVICES This Information Paper gives you a comprehensive snapshot of the Indian market and the potential growth of the Aircraft Leasing Industry in India, the Aircraft Leasing Cycle and the expertise and experience available with Mallard Aviation to address your Aviation Asset Management which include pre-leasing and redelivery inspection procedures and CAMO.

CONTENTS India Market Snapshot.......................................................................................................................................................................................... 2 Growth Projections ........................................................................................................................................................................................... 2 Aircraft Leasing in India....................................................................................................................................................................................... 3 Aircraft Leasing Companies in India.......................................................................................................................................................... 3 The Aircraft Leasing Lifecycle........................................................................................................................................................................... 4 Pre-delivery and reDelivery Procedures................................................................................................................................................. 4 Continuous Airworthiness Management Organisation (CAMO) Sevices....................................................................................... 5 About Mallard Aviation..........................................................................................................................................................................................6 Background...........................................................................................................................................................................................................6 Aviation Asset Management...........................................................................................................................................................................6 Pre-leasing Inspection.....................................................................................................................................................................................6 Aircraft Delivery/Redelivery Services .......................................................................................................................................................6 Camo Services.....................................................................................................................................................................................................7 Company Details ..................................................................................................................................................................................................... 8 1

INDIA MARKET SNAPSHOT The Indian aviation market has grown at an annual rate of 10.2% from 2008–09 to 2018–19. Domestic travel has outpaced international travel, with the two growing at 13.5% and 8.2% respectively in the same period. For Indian airliners, the number of weekly flights has increased by 400% from 2008 to 2018. Low-cost carriers (LCCs) dominate the Indian market, accounting for 65% of all domestic seats and 52% of total capacity (including international travel) in 2018. Indian LCCs have grown at an annual rate of 21% in terms of number of flights flown between 2008 and 2018. The number of airports served by LCCs during the period increased from 28 to 46.14 Increased service levels and improved efficiencies have resulted in a 70% fall in domestic airfares between 2005 and 2018 (after adjusting for inflation). References Boeing Commercial Market Outlook 2019-2038 India’s air transport sector, IATA, DGCA COVID-induced lockdowns affected the Indian aviation sector badly in 2020, with total passenger traffic plummeting to less than 40% of 2019 levels. However, by December 2020, domestic traffic had improved to 56% of 2019 levels.16 However, international travel was still at 20% level of the previous year in December 2020 and is expected to improve gradually with widespread vaccination coverage. Cargo services were quick to recover and stood at 90% of the last year in December 2020 in terms of volume17. Airlines in India have been allowed to run at 80% of the pre- COVID capacity from December 2020 onwards, which will further aid the recovery of the sector. The effect of the pandemic, though significant, is expected to ease in the short term. GROWTH PROJECTIONS By 2038, domestic air traffic in India is expected to grow to 4.8 times that of 2018 levels – the fastest for any sector in the world, with India set to become the third largest aviation market by the mid-2020s. India’s commercial fleet is forecasted to expand to 1,100 by 2027, almost doubling from present levels on the back of rising demand from LCCs. The fleet size in 2037 is likely to stand at 2,300 aircraft, with single-aisle airplanes leading the demand and accounting for almost 85% of new deliveries.20 By 2050, India’s commercial fleet size is likely to exceed 5,000 aircraft. References Avolon – An in-depth analysis of the Indian air travel market, July 2018 Prospects for an Indian aircraft leasing sector, CAPA, September 2018 2

AIRCRAFT LEASING IN INDIA Around 80% of the total commercial fleet in India is leased compared with 53% globally. India sees a high number of leased aircrafts compared to the rest of the world due to various factors like financial fragility, operational advantage, price sensitivity and easy financial leasing options in an emerging market. Reference Prospects for an Indian aircraft leasing sector, CAPA, September 2018 AIRCRAFT LEASING COMPANIES IN INDIA Currently, there are no aircraft leasing companies in India, which forces domestic airlines to look for lessors abroad. The presence of local lessors would not only help airlines in terms of creating greater opportunities for better leasing terms and conditions, but also help them navigate currency depreciation risks better, thus removing uncertainties from their operational framework. In addition, the airline leasing industry would benefit the country in a variety of ways like aviation and airport development, boost to MRO industry, retain international financing services and additional tax revenues. To make India an aviation hub and develop the aircraft leasing and financing business in India, a Working Group on Developing Avenues for Aircraft Financing and Leasing Activities in India was constituted by the Ministry of Civil Aviation in May 2018. The Working Group had identified the International Financial Services Centre (IFSC) in Gujarat International Finance Tec-City (GIFT City) as the location to onshore the offshore aviation leasing business in India. The Union Finance Minister, in her Budget speech in 2019, had also recognised the potential of aircraft financing and leasing activities from Indian shores to develop a self-reliant aviation industry and create aspirational jobs in aviation finance. To develop and promote the aviation leasing business in the IFSC, several changes have been proposed to the tax framework in Union Budget 2021–22. The International Financial Services Centres Authority (IFSCA) has also issued a framework for aircraft leasing in the IFSC. 3

THE AIRCRAFT LEASING LIFECYCLE Aircraft leasing is an overly complex business and cross-functional expertise is needed to navigate the business environment. Predicting the market demand and supply scenario, understanding the preferences of airlines around the globe, having a low cost of capital and maintaining efficient operations through optimal portfolio management remain key to the success of lessors. Lessors need to ensure that the pricing is commensurate to the intrinsic value of the aircraft. Aircraft lease periods are shorter than aircraft lifespan, and thus, aircrafts are leased multiple times during their useful life. Also, the ability to re-deploy the aircraft efficiently and continue the lease income inflow once aircraft are returned by lessees, is extremely important to maintain profitability and utilization. IATA recommends a continuous review process to ensure lease compliance through the entire leasing life cycle. To ensure the best pricing and minimizing operational risks, aircraft inspection procedures are an essential and mandatory part of the pre-delivery and redelivery parts of the lease arrangement. PRE-DELIVERY AND REDELIVERY PROCEDURES The compliance requirements for pre-delivery and redelivery can be broadly classified under the following categories: 1) Physical requirements, the focus being on effective assessment of the physical condition of the principal airframe units, its components, systems, and cabin interior, 2) Records requirements, the focus being on satisfactory audit of all aircraft records to ensure they comply with terms and conditions set forth by the lease and the regulatory authorities, 3) Performance requirements, the focus being demonstrating to lessor that the satisfactory operation of the aircraft and all systems are in compliance with the terms and conditions of the lease, and 4) Certification requirements, the focus being to ensure compliance with local regulatory authority requirements and, where cross-border transfers are concerned, compliance with the next lessee’s regulatory requirements. Omissions or delays in addressing compliance with any of these requirements will affect the lessor and the lessee in terms of effectively deploying and redeploying their asset. Reference IATA – Guidance Material and Best Practices for Aircraft Leases 4

CONTINUOUS AIRWORTHINESS MANAGEMENT ORGANISATION (CAMO) SEVICES The CAMO is employed by either the aircraft owner directly or by the lessee, depending on how the owner wishes to handle their aircraft. The CAMO is responsible for planning and co-ordinating all maintenance activities and to keep the aircraft airworthy as much as possible. Broadly speaking this means: 1) Forecasting planned maintenance work 2) Reliability assessment 3) Ensuring the maintenance provider can begin and finish works within the planned down-time The role of a Continuing Airworthiness Management Organization ultimately requires handling liaisons with authorities on behalf of an aircraft owner; finding solutions to maintenance problems with OEMs; delving into the aircraft manuals; assessing Airworthiness Directives and Service Bulletins; tendering management for maintenance input; and performing on-site aircraft surveys as well as record audits. A CAMO should be a dependable partner for fulfilling all requirements issued from manufacturers and authorities. The documentation provided must always match the technical status of the aircraft. 5

ABOUT MALLARD AVIATION BACKGROUND Mallard Aviation can offer of a team with considerable experience in the field of aircraft maintenance and engineering, and coupled with experience in finance, we intend to provide the best deals for our customers which are cost effective and convenient at the same time. (Specific Aircraft expertise to be added). AVIATION ASSET MANAGEMENT We specialise in providing Techno-Commercial advisory for all transport aircraft. Mallard Aviation has a team of highly experienced technical professionals to provide a full range of services which include but are not limited to: 1) Periodic technical records audit 2) Lease Management 3) Continuous Airworthiness Management 4) Performance Restoration 5) Aircraft Asset appraisal & value optimization 6) Periodic records audit: to comply with Aviation Regulations & investigation potential risks Another important part of Aviation Asset Management is Asset Appraisal. Lessors and lessees take a high risk for Asset acquisition and are constantly surrounded by financial dilemmas related to their Asset’s valuation at the start of or after the termination of its lease. There is a significant need to analyse the value according to the market standards laid down for the same. Mallard Aviation can provide the most experienced and in-depth personnel to manage your Pre-Leasing and Aircraft Delivery/Redelivery Inspection procedures. PRE-LEASING INSPECTION At Mallard Aviation, we go above and beyond industry standards, to ensure that our clients have all the information needed to make educated decisions. This is done by conducting a thorough audit of the asset in the form of In-Depth Records Review and Detailed Physical Inspection of aircraft, as well as cross verification of both and providing an un-biased and in-depth technical advisory. AIRCRAFT DELIVERY/REDELIVERY SERVICES We specialise in project planning, In-Depth records review and thorough physical inspections to confirm compliance with delivery/redelivery conditions. Our expert team provides customised solutions for different aircraft delivery and redelivery processes. The service involves complete liaising with the various teams, reporting and resolving non-compliance issues, creating aircraft delivery/redelivery binders and coordinating with potential customers as well 6

CAMO SERVICES The task of a certified “Continuing Airworthiness Management Organisation” (CAMO) is fundamentally to keep a client’s aircraft airworthy. This includes the management of all inspections and paperwork that meet the IATA regulations. As an aircraft owner or operator, the advantages of using a CAMO programs are endless. We, at Mallard Aviation, can design a custom schedule that covers all the services your aircraft needs including aircraft monitoring, annual inspections, technical reviews, parts and engine condition reviews and modification suggestions to keep the aircraft in its safest and most flyable condition. Mallard Aviation’s CAMO programs are created to ensure that all the administrative tasks that come with ownership are handled end-to-end just in time and flawlessly. The services which we offer in terms of expertise and in-depth experience include the following: 1) Maintenance Planning a. Forming and Maintaining the AMP to current MPD rev/ AMM chapter ATA 05 rev. b. Task threshold and interval customization and optimization program for cost control. c. DATA collection evaluation and recommendations. 2) Operation planning a. Monitoring the AMP. Creating short term and long-term check schedules b. Creating and checking check packages. c. Monitoring components. d. Propulsion Planning. e. Monitoring OOPS tasks. 3) Tech Service support. a. Monitoring publications. b. Conducting weekly monthly Sb Ad status reports. Conducting Sb Ad evaluation meets and coming up with compliance plans. c. Monitoring weight and Balance of the fleet. 4) Production Planning a. A check Planning b. C check Planning 5) Manpower Estimation process. 7

COMPANY DETAILS MALLARD AVIATION PRIVATE LIMITED CIN U52399MH2021PTC357490 REGISTRATION No. 357490 104, Legend V, Kanderpada Layout, Dahisar (West), Mumbai MH 400068 IN CONTACT: [email protected] 8