CORPORATION

CORPORATION /AVJE s DECEMBER 2014 BBJ MARKET SUMMARY GENERAL MARKET OVERVIEW: There are currently fifteen (15)Boeing Business Jets for sale ranging in price from $25.9MUSD for a 1998 aircraft with 3700 hours to S72.OMUSD for a 2010 model with 762 hours of total time. The BBJ market shows a large price discrepancy between pre-2005 models able to be purchased well below S37.0MUSD and 2005 and newer models starting at S55.0MUSD and reaching close to S72.0MUSD for newly completed low time models. Average days on the market (DOM) has now risen to nearly 418 days as many sellers remain unrealistic with their pricing expec- tations. Current Activity is confined to early model aircraft but even low prices in this segment have failed to lure buyers into the market place. INVENTORY STATUS: Inventory had remained in a fairly tight range for most of 2014, averaging between twelve (12) and seventeen (17) units. Recent reductions in inventory levels due to an unu- sually high number of sales in the early model market have been quickly replenished with new aircraft being placed on the market many of which belong to one Chinese operator going through a fleet restructuring. Most changes in inventory have been confined to early models. At the other end of the market, late models languished due to unrealistic pricing. The lone late model sale in the past two years was a recently delivered BBJ2 at SI 05.0M. PRICING STATUS: Pricing in the BBJ market hos been weak for most of the past few quarters espe- cially in the early model segment where buyers believe values lie near the S22.0MUSD to S25.0M price mark—while sellers believe values lie further north of those numbers—closer to 530.OMUSD to S33.0MUSD. In the late model market sellers have completely priced themselves out of the mar- ket with many sellers of low time late models requiring prices near or above S60.0MUSD to part with their aircraft. Buyers have completely vacated this end of the market in the past two quarters show- ing little appetite for late models which are not aggressively priced. The next "green" position from Boeing can be purchased with an ask price of S60.0MUSD for a 3rd quarter 2016 delivery date. Over- all pricing will remain weak across the entire model line as buyers hove shown little appetite to meet seller's price expectations. MARC J. FOULKROD I CHAIRMAN AND CEO ANDREW C. BRADLEY / PRESIDENT SALES BRIAN MILLER / VP SALES KIP HAYES / SALES DIRECTOR ANNE MARIE FITHIAN I MARKETING BRYAN DUNNIGAN / SALES JON P. CONLON / SENIOR MARKET ANALYST SAM KINSER / MARKET ANALYST In This Issue Market Overview/Trends P.I Recent Activity/For Sale P.2 Buyer/Seller Profile P.3 DECEMBER MARKET SUMMARY Ring errs ler Salt Percent°, of Heel for Selo Industry Average in November Average ildOeviellUle Veer Invamoly 'El Sm Months Average Days on Morkel Asimg Pine High Riga: Ailing Pinelow Range. Under Canna Soles in November test Dells Mill re Dote Soles 2113 loot Soles 307SI IS II 6% 9.1% 1006 +6 Pi 118 S72,000.000 S25,900,000 No Owed No (Sao K. Chang. Kt thongs ?le theropmi tie (hal 0 No Cheri I tie OA -A 3 a ABOUT AVJET CORPORATION Avjet has been involved io the purchase and sale of Boeing and other large cabin private business jets for more than three decades. With over 400 aircraft transactions totaling well over S7 billion in soles, Avjel Corporation sold more Boeing business jets than any other antral' sales firm in the world over the post few years. Even in a recessionary economy and a challenging aircraft market, Avjet contin- ues to set the pace in Boeing aircraft soles. EFTA01087027 RECENT TRADES: SN YEAR OPTIONS SOLD S27.3M DATE 11/2014 612014 512014 TIME 5957 PAINT INT. 2007 29441 1999 8 TANKS-12 PAX 2004 34303 2005 PAX SHUTTLE S24.0M 34632 2013 2005 39899 32775 39095 2012 2003 2012 6 TANKS-19 PAX (NMI 8-TANKS-19 PAX 7-TANKS-19 PAX $105.0M S30.0M S52.0M 412014 412014 412014 112014 12/2013 10/2013 49 3524 Del. Time 2013 2003 2012 30328 2000 7-TANKS-19 PAX $34.8M 3350 2000 2013 2003 Green 2000 30752 1999 44 PAX SHUTTLE SI4.8M 41383 2010 2000 30076 1999 TANKS-I9 PAX $35.0M 5495 1999 1999 28579 1999 6 TANKS-19 PAX $36.75M 5925 2008 2008 UNDER CONTRACT: NONE FOR SALE: SN YEAR COMPANY NAME ASK PRICE TIME 3743 29273 1998 Piston II 525.914 30327 30751 32774 32777 34477 35990 36714 36852 37592 37700 38608 38633 40116 40117 1999 F&L Aviation 1999 Legatum 2001 Prime Aviation JSC 2003 Global Jet Austria (6612) 2005 Siva Ltd. 2006 Samsung Techwin 2007 Andromeda, Ltd. 2008 Hyundai Corp 2007 Orex Aviation AVV 2009 Agilane Ventures Corporation 2010 2010 2012 2011 Skytrooper Charter Deer Jet Company Beijing Capital Airlines HongKong Jet 538.50M 534.0M S35.0M 545.0M 563.0M S63.0M 558.9M S63.0M S72.0M 549.9M 572.0M S65.0M Make Offer S69.0M 6891 5585 3719 3813 1200 1724 2788 2105 163 20 133 955 190 GLOBAL ECONOMIC OUTLOOK The current globol macro environment echoes post outlooks since the 2008)2009 financial crisis. Socioeconomic events are mainly negative across most of the globe with the United States being the lone bright spot. Falling unemploy ment, accelerating GOP growth and the prospects of a more "pro-business- and -pro•jet' US Con- gress otter November elections take plate has put the emphasis on private jet deals squarely on US shores as we close out 2014. Europe and Asia remain the question marks os we enter 2015. While Asia has been largely absent from high activity in the private jet market since growth decelerated in 2012, Europe hod stabi- lized in 2013 and hopes were high that the Euro• zone hod finally turned the corner entering this year. Crisis in the Ukraine with Russia however, quickly reversed this course as the prospects of Eurozone recession for the third time in six years has now firmly taken shape. With the Euro Tolling 25% against the dollar and the Russian economy being chocked off from Western sans• tions Eurozone GDP is at a standstill as we close the year out. Unlike the US where several mono• tory policy tools seemed able to twat a races• sion, analyst seem to agree that the some policy tools cannot be employed effectively by the European Central Bank (ECB) to reignite growth in the Euro Zone. Additionally, China's growth has considerably slowed in the past twenty four months from double digit growth to the 6-7% range which many analysts believe is actually lower than government figures suggest. Growing concerns over a real estate fueled bubble in China has stalled growth in aircraft soles in 2014. Lastly, two additional factors—radical Islamists in the middle east attempting to take over vast territories in Iraq and Syria fearing further fueling terrorism across the globe—and the outbreak of the Ebolo epidemic in Africa are all conspiring to stall global growth prospects entering into 2015. The two factors which will hart the largest impact on global growth center on how long US GDP con pick up the slack and how long until Chino and Europe recover. Overall soles of private jets will remain constrained in 2015 until the economic growth outlook clears up. EFTA01087028 4:105WAgir BR) BUYER/SELLER PROFILE 2013/2014 MARKET PROFILE: Charting the profile of buyers and sellers in the 881 market shows the diversity of both parties over the course of the past twenty four months. Geographically, nearly half of all buyers and sellers originated out of Europe and the United States. The next largest block of sellers came from Asian with Russia being the next largest destination for buyers. The break down between types showed an increasing shift toward private ownership as 80% of sellers were private but at the same time private ownership (buyers) leapt to 60%. The biggest change over the past two years was the lack of activity in the post-2006 model segment with most sales repre- senting pre-2004 models for the first time since production of the 88.1 began in 1998. SELLER PROFILE z 10% ii. 10%i I_ 80% • Private • Corporate • Government BUYER PROFILE DECEMBER 2014 k >2:e 04, - —,•...0.10100 5.11.0.0.1dee.e.s9,109, ....el, no, 4IA 40% • us • Asia O Europe I Africa 20% 10% 30% 30% 10% .is ▪ !Aid ias: • Europe ▪ AfrLca * Russia EFTA01087029