AvStar Aviation Services, Inc.

FBOs

AvStar Aviation Services, Inc. is currently pursuing and in negotiations to purchase several FBO’s.

Fixed Base Operators (FBOs) provide aircraft and travel related services for jets and other aircraft.

Most FBOs offer the following:
· Fuel Sales
· Hanger and Tie-down services
· Hotel and Car rental services
· Travel and Flight planning
Restocking and Clean up services
FBOs are currently a $4-5 Billion dollar industry, with approximately 5200 operating in the US.

Current Trends

“Big 4” operators target the corporate elite and charge significant premiums for service

- Atlantic, Signature, Landmark, MillionAir
- Together these operators total 180, less than 5% of FBOs in the U.S.

The FBO Opportunity Today

Private equity shops set the stage for FBO consolidation

- Landmark is owned by GTCR Golder Rauner
    - Carlyle Group has a large portfolio of FBO assets.
    - Capstreet funded Trajen in its expansion of their portfolio from 4 to 23 FBOs subsequently selling to Macquarie for $363
       million.

Many benefits to consolidating FBOs

- Economies of scale
- Pilots attracted to consistency of services.
- Acquisition of Independent operators is particularly appealing now.

The opportunity lies in aggregating the best among the vast majority of independent FBOs

Why Now?

Valuations have declined significantly

- we have witnessed 50-75% decline in the past 2 years
- The economic and credit crisis have put extreme stress on the independent ‘mom and pop’ operators
- Fuel price spike caused many to shut down operations because of purchasing problems

Economics of consolidation have become increasingly more compelling

- Market to purchase single FBO currently at a low multiple of revenue, with opportunity to sell a franchise at 8x cash flow

MROs

AvStar Aviation Services, Inc. is currently pursuing and in negotiations to purchase additional MROs.
Maintenance Repair and Overhaul centers (MROs) provide mechanical services for jets and other types of aircraft.
Major & Minor Airframe Repairs
Cessna 200 / 300 / 400 Specialist on Staff
Annual Inspections
Computerized Aircraft Weight and Balance
Computerized Wheel Balancing
Engine Maintenance, Repair & Overhaul including custom installations and refurbishment.
Aircraft Modifications and STC kit installations
Routine Maintenance / Insurance and Accident Repairs
Composite Airframe Repairs
Pre-purchase Inspections / Log Book Analysis
Oxygen Service / Nitrogen Service
Service Parts
Janitrol / Southwind Heater Service / AD compliance Inspections
Dye / Flourescent Penetrant Inspection Service
Aircraft Exterior & Interior Detailing Services
Major & Minor Airframe Repairs
Cessna 200 / 300 / 400 Specialist on Staff
Annual Inspections
Computerized Aircraft Weight and Balance
Computerized Wheel Balancing
Engine Maintenance, Repair & Overhaul including custom installations and refurbishment.
Aircraft Modifications and STC kit installations
Routine Maintenance / Insurance and Accident Repairs
Composite Airframe Repairs
Pre-purchase Inspections / Log Book Analysis
Oxygen Service / Nitrogen Service
Service Parts
Janitrol / Southwind Heater Service / AD compliance Inspections
Dye / Flourescent Penetrant Inspection Service
Aircraft Exterior & Interior Detailing Services