Aircraft Appraisal Information

Choosing the “Wright” Appraiser

Why Hire an ASA Appraiser?

When you hire an ASA-accredited appraiser, you are assured the best valuation
expertise on the market, because ASA-accredited appraisers bring knowledge of
the market and profession, experience, and solid reputation to the job.

Knowledge and Experience

Each accredited member of the American Society of Appraisers has earned a
professional designation in one or more specialized areas of appraisal. To
receive the accreditation, the appraiser must pass intensive written examinations,
submit representative appraisal reports for peer review and be screened for his
or her ethical behavior. Every accredited appraiser must start his or her ASA
membership as a Candidate member. In order to be accepted for Candidate
membership, the prospective Candidate must be interviewed and approved by
his or her local chapter. Subsequently, each Candidate must pass ASA’s Ethics
Examination and an examination on the Uniform Standards of Professional
Appraisal Practice (USPAP) within a specified period of time. (The Uniform
Standards are published each year by The Appraisal Foundation, authorized by
Congress as the source of appraisal standards and appraiser qualifications.)
The Candidate’s technical appraisal proficiency and understanding of the
fundamentals of appraisal ethics, principles and concepts are evaluated by
intensive written and oral examinations. Copies of the Candidate’s appraisal
reports are reviewed and must meet professional criteria. When the Candidate
has met all these requirements and has gained the necessary experience, he or
she may apply for advancement to Accredited Member or Accredited Senior
Appraiser status. To qualify for the Accredited Member designation (AM), an
individual must have at least two years of full-time equivalent appraisal
experience and a college degree or its equivalent. To qualify for the Accredited
Senior Appraiser designation (ASA), an individual must have a minimum of 5
years of full-time equivalent appraisal experience and a college degree or its
equivalent. To achieve the Fellow designation (FASA), an Accredited Senior
Appraiser must be recognized by ASA’s International Board of Governors for
outstanding services to the appraisal profession and/or the society. ASA has a
mandatory reaccredidation process whereby designated members must regularly
submit evidence of professional growth through participation in professional
activities and continuing education. This ensures that ASA appraisers keep their
knowledge up-to-date.

A Solid Reputation

Each individual seeking accreditation from the American Society of Appraisers
must furnish professional and personal references and be subject to local credit
and background investigations. In addition, local chapters conduct personal
interviews and evaluate the practices of all applicants.

One of ASA’s primary objectives is to ensure ethical practices and procedures on
the part of its members. The society is diligent in its efforts to strengthen and
uphold the Principles of Appraisal Practice and Code of Ethics (the code of
conduct to which all members must subscribe) in order to protect the client. ASA
has developed a mechanism for the enforcement of the Code of Ethics whereby
clients may file written complaints directly with the International Headquarters of
the American Society of Appraisers if they feel that an appraisal rendered by an
ASA member violates sound professional practice. ASA has permanent internal
procedures for processing all documented grievances, assuring due process.
Sanctions against members, if found to be in violation of the Code of Ethics,
range from censure to expulsion with loss of professional designation.

The Valuation Expertise You Need

In short, ASA-accredited appraisers are experts. The meticulous ASA
accreditation process ensures that ASA-accredited appraisers are accurate,
impartial, and credible. They are educated and experienced in their fields and are
respected members of their communities. They can deliver independent
valuations that assure your property is appraised at its fair market value.

Don’t Hesitate To Ask for Credentials

The appraiser you select should possess relevant experience, education, skill,
and integrity. The professional will be pleased to answer any questions in
reference to his or her qualifications.

In reviewing an appraiser’s credentials, remember that an accreditation in
appraising issued by a major teaching/testing/accrediting appraisal society is a
strong indicator of ability. It is important to note that a major appraisal
organization such as the American Society of Appraisers requires strict
adherence to its Principles of Appraisal Practice and Code of Ethics and to
USPAP.

ASA’s Principles of Appraisal Practice and Code of Ethics are closely monitored;
all members of ASA are required to conduct their appraisal practice in
conformance with the highest ethical and professional criteria defined therein.

Additionally, to ensure that competent, relevant, current valuation counsel is
available to the public, ASA requires Accredited Senior Appraisers to reaccredit.
This mandatory program emphasizes professional participation in a continuing
education process. The program interfaces with the society’s Principles of
Valuation Sciences Degree Programs and ASA’s examination procedures.

What Questions Should I Ask When Interviewing an Appraiser?

1. What is your general appraisal and educational background?
2. What specific experience do you have with the kind of property I wish to
have appraised?
3. Are you a member of a professional appraisal society? Does that society
teach, test, and accredit?
4. Do you hold a special designation issued by an appraisal society?
5. Is that designation based on successfully completing written
examinations?
6. How long ago did you take the examinations?
7. What continuing education have you undertaken to keep up-to-date in the
field?
8. Has the appraisal society you belong to adopted a mandatory
reaccredidation program to ensure that your education and knowledge are
current?
9. What do you charge for your services, and how do you base your fee?
10. Are you required by your appraisal society to adhere to the Uniform
Standards of Professional Appraisal Practice (USPAP)?

About ASA

The American Society of Appraisers (ASA) is an international valuation
association that teaches tests, accredits, and refers professional appraisers.
ASA is the oldest and only major organization in the United States representing
all disciplines of appraisal specialists, originating in 1936 and incorporating in
1952. ASA’s headquarters is located in the metropolitan Washington, D.C., area.
To locate an accredited ASA appraiser, go online to www.apprasers.org (and
click on Find an Appraisal Expert) or call (800) 272-8258.

Our Responsible Business Practices

AMC\VALUE$, through its founder, Kenneth M. Dufour, is recognized as the developer
of AMC\VALUE$ Appraisal/Valuation & Forecasting System, making this system a
stable and responsible business practice. Each comprehensive valuation determines
an aircraft’s Current Market Value and/or Forecasted Residual Value, giving our client
accurate figures and projections. Over the years, we have appraised several thousand
aircraft, individual and fleet, with values in excess of 300 Billion Dollars. In addition to
monitoring and appraisals of Commercial Jets, Regional/Commuter and
Executive/Business Aircraft, we also specialize in Engines, Spares, Inventories, Support
Equipment, Fixed Base Operations and Antique or Museum aircraft and artifacts.

FORECASTED AND RESIDUAL VALUES are some of the vital elements that are used
to determine lease rates, residual commitments and premiums, tax considerations, loan
collateral, and define the worth of an investment portfolio now and in the future.

THE TIME HONORED AND PROVEN AMC\VALUE$’ VALUATION PROCESS involves
taking the base value of the aircraft series and adjusting it up or down depending upon
the airplane’s condition, overhaul status (as adjusted from half-life), equipment,
modifications and upgrades (which are existing or eligible), along with other plus or
minus factors. These same services and procedures are applied to the inspection of
engines, spares, inventories, support equipment and facilities.

LITIGATION PREPARATION SUPPORT AND EXPERT TESTIMONY: AMC\VALUE$
Staff will assist litigating parties in the preparation of their cases. We can prepare
detailed analysis and clarification of the facts, which are thoroughly documented. We
provide supporting expert testimony. Areas that often require our involvement include:
marketability, value (past, current & future), use, taxes, repair costs, and condition.

AMC\VALUE$ PROVIDES Appraisals/Valuations under the guidelines of
Uniform Standards of Professional Appraisal Practice (USPAP). AMC\VALUE$
Appraisals/Valuations have become the accepted standard within the
aerospace/financial community.

Members: American Society of Appraisers

Kenneth M. Dufour, ASA
Accredited Senior Appraiser
President/CEO

Leo Heidemann, ASA
Accredited Senior Appraiser
(Consultant)

Purpose of an Aircraft Appraisal

The purpose of an aircraft appraisal is to:

• To obtain a professional independent valuation of the current Market value of an
  aircraft/asset
• To obtain a professional independent valuation of an aircraft to be upgraded
• A professional opinion of the value of an aircraft is useful as a prudent safeguard
  against excessive Tax Assessments, Capital Gains and other taxes
• Appraisals are used to verify Damage Claims resulting from fire, hail, windstorms,
  moving/non-moving incidents, and other natural/manmade disaster
• An appraisal may provide the basis for decision-making in the commitment of funds
  for acquisition/sale
• Provides documented independent evidence of the condition of an aircraft or aviation
  asset
• Helps verify the selling or purchase price of an aircraft
• Assist a prospective purchaser in obtaining financing/leasing or insurance
• Assist the financial institutions by substantiating the current/future market values of
  the aircraft as it relates to collateral
• Assist the financial institution by supporting the Loan Portfolio for examination by the
  Loan Committee and/or Bank Examiner
• Establish value to be used by IRS for charitable contributions/donations
• What will a professional aircraft appraisal cost? Cost will vary contingent upon the
  type aircraft/asset to be appraised. Enclosed you will find a fee schedule

Anatomy of an Aircraft Appraisal

THE AIRCRAFT APPRAISAL IS A VALUABLE AVIATION/FINANCIAL TOOL:

The Banker, the appraisal documents the value and condition of the aircraft. The
appraisal also supports the banks collateral position in the aircraft loan.

The Seller, the appraisal gives them the confidence of knowing the current fair
market value of their aircraft.

The Buyer, the aircraft appraisal is an impartial independent professional opinion as
to the value of the particular aircraft they are planning to purchase. Further, the
appraisal can assist in expediting the sale of the aircraft because the buyer and seller
know the market value and relative condition of the aircraft through the independent
professional appraisal.

ANATOMY OF AN APPRAISAL: Is an impartial/independent opinion of the value of an
aircraft, prepared by ASA certified professionals who know all the factors, which make
up the current behavior of the new/used aircraft market. It is an opinion of the value
based upon experience and repeated analysis of these factors. It is an opinion of value,
which can be substantiated and justified by specific valuation methodology.

The Professional Aircraft Appraiser (certified by the American Society of Appraisers)
must acquire all the facts about the aircraft to be appraised. The appraiser thoroughly
examines the aircraft logbooks, inspects the exterior and interior of the aircraft and pays
close attention to the current condition and maintenance history of the subject aircraft.

AVIATION MANAGEMENT CONSULTING, INC. WILL ASSURE THE BEST POSSIBLE DATA BY
PROVIDING THE FOLLOWING SERVICES:

• Detailed physical review of the aircraft
• Careful review of aircraft documentation including log books and maintenance
  records
• Analysis of relevant aircraft data
• Determine and assess the current market value of the aircraft
• Develop Residual Forecast and Future Value Analysis

The Authority on Aerospace Values

AMC\VALUE$, through its founder Kenneth M. Dufour, (ASA) is a recognized leader in
developing Appraisal/Valuation and Forecasting Services for the Aerospace Industry.
Each appraisal/ valuation performed by AMC\VALUE$ is carefully executed to
determine subject aircraft’s Current Market Value (CMV), forecasted and residual
values.

AMC\VALUE$ has appraised thousands of aircraft on an individual and fleet basis. In
addition to the appraisal of Air Transport, Regional and Business/Corporate Aircraft, we
also specialize in operational, safety and security reviews.

We conduct a detailed analysis of the aircraft’s specifications during the appraisal
process, followed by an on-site inspection, including a detailed valuation of the actual
asset, inspection of the operator’s facilities, a thorough review of maintenance and
associated historical records. After inspection, our technical and financial analyst take
the base value of the aircraft series and adjust it upward or downward, depending upon
the aircraft’s condition, maintenance/overhaul status, equipment, modifications and
upgrades. To calculate the value of each of these factors, our staff applies precise
formulas developed by AMC\VALUE$ own appraisal and technical experts. The end
result is the most accurate appraisals and forecasted values that can be scientifically
achieved and are further supported by what has been traditionally the most accurate,
subjective analysis.

Forecasted and residual values are vital elements in determining lease rates, residual
insurance commitments and premiums, tax considerations, loan collateral and the worth
of an investment portfolio, now or at some future date. Appraisals and Forecasting is
our niche in the Aviation and Financial Community.

Our reputation for sound professional American Society of Appraisers practices and
ethical conduct precedes us and many lenders and lessors will not complete the
transaction unless AMC\VALUE$ performs the appraisal.

Integrity involves amongst other things the questions of both the reality and the
appearance of conflicts. In order to avoid either, AMC\VALUE$ maintains its
independent ownership with no interrelation or affiliations with Brokers, Dealers,
Investment Bankers, Leasing Companies, Airlines, Manufacturers or other parties who
would have a direct, indirect or otherwise vested interest in any service we provide or
our reports; our current or future values; or our impact on values in the marketplace in
general. It is this commitment to independent services that will continue to assure you
of the integrity of our services and products.

We invite you to spend a few moments and review this brief but thorough description of
some of the services we offer, and feel free to call us for any questions on your
immediate or future needs.

For an accurate appraisal/valuation of your aircraft, equipment or operation,
contact: Kenneth M. Dufour, ASA (Accredited Senior Appraiser), President/CEO
or Leo Heidemann, ASA (Accredited Senior Appraiser), (Consultant). Both are
members of the American Society of Appraisers.