CIRRUS SR20 LEASEBACK TOUR

A look at the numbers. . .

• “Leasing is one way to reduce the costs of owning an aircraft. A properly structured leaseback in the right market may help reduce the cost of your flying and earn you a profit.”

Aircraft Owners and Pilots Association

What’s a Leaseback?

• Reduce monthly flying expense• Reduce the cost of ownership• Build equity• Learn to fly in your own plane• Huge Tax Savings• Income

Why Lease to a Flight School?

• Busy School• Excellent fleet size management• Excellent care of aircraft• The right Airplane• “Like-minded” Flight School Owner• Geographically “friendly”

Elements of a Successful Lease Arrangement

• Actively managed, airplane can generate positive cash flow

• Airplane Note paid off aggressively• Take profit at the time of aircraft sale

Investment Opportunity

SR20 - Equipment Options and Pricing

Option Price Invoice

SR20 S x $ 279,900 $ 279,900

S Package Options $ 0

Leather Interior x $ 3,690 $ 3,690

Touring Package x $ 23,490 $ 23,490

Wingtip Recognition Lights x $ 2,490 $ 2,490

Tinted Rear Windows $ 590 $ 0

3-Blad Propeller x $ 3,990 $ 3,990

Synthetic Vision $ 9,990 $ 0

XM Weather & Audio x $ 7,990 $ 7,990

12" Screens/55x A/P $ 19,990 $ 0

SR20 GS $ 337,900 $ 0

GS Package Options

Leather Interior $ 3,690 $ 0

Polished Spinner $ 595 $ 0

Dual AHARS & GFC 700 Autopilot $ 19,350 $ 0

Synthetic Vision $ 9,950 $ 0

SR20 GTS $ 375,900 $ 0

GTS Package Options

2-Tone Paint $ 7,990 $ 0

ADDITIONAL SR22 OPTIONS (ALL PACKAGES)

Acitve Traffic Alerts $ 21,500 $ 0

Chartview $ 3,990 $ 0

Lightning Detection $ 9,990 $ 0

Enhanced Terrain Warning System $ 7,990 $ 0

Perspective EVS $ 16,990 $ 0

Tanis Pre-heater x $ 1,490 $ 1,490

X-Edition Sytling $ 14,850 $ 0

3rd year warranty x $ 5,990 $ 5,990

Tailwind $ 9,995 $ 0

Avionics Subscriptions Initiated x $ 3,200 $ 3,200

Purchase Price $ 332,230

If Cirrus Certified, enter offer price here -----------------------------------------------------------------------------------------> -$

Demo Plane Rate Hours

Discount $ 0 $0 $ 0

Initial hours (115)$ 0 -$ $ 0

Closing Price

Lease period $ 85 0 -$ $ 0

Demo Plane Purchase Price $ 332,230

Cost of Ownership

Financing Costs

Terms

Interest Rate 6.55%

Amortization 20

Down Payment 10%

Down payment amount $ 33,223

Financed amount $ 299,007

Monthly Loan Payment $ 2,238

Fixed Costs

Cash Costs Monthly Annual

Insurance (5 year average) $ 875 $ 10,500

Annual Inspection $ - $ -

Tie down $ 350 $ 4,200

Wash/detailing $ 65 $ 780

Avionics subscription $ 42 $ 500

Property tax $ 305 $ 3,655

Parachute reserve $ 42 $ 500

Monthly Fixed Costs $ 1,678

Operating Costs

Cash Costs Total Cost Hours** Hourly Cost

Fuel (**interval is gallons per hour) $ 4.50 9.5 $ 43

50 hour inspections/oil change $ 300 50 $ 6

Oil $ 4 10 $ 0

Reserves

Maintenance $ 36 1 $ 36

Engine Overhaul $ 30,000 2000 $ 15

Propellor Overhaul $ 5,000 2400 $ 2

Total Operating Cost per Hour $ 102

Tax Benefits

Section 179 $ 134,000

Section 179 Cap $ 500,000

Section 179 Allowed $ 134,000

Bonus Depreciation 0% $ 0

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

MACRS Depreciation Schedule 20% 32% 19% 12% 12% 6%

MACRS Write-off $ 39,646 $ 63,434 $ 38,060 $ 22,836 $ 22,836 $ 11,418

Total Depreciation Allowed $ 173,646 $ 63,434 $ 38,060 $ 22,836 $ 22,836 $ 11,418

Tax Rate

Annual Tax Benefit 35% $ 60,776 $ 22,202 $ 13,321 $ 7,993 $ 7,993 $ 3,996 ###

Cost per Hour Flown

Year One

Annual fixed cost & tax benefit $ -13,784

… Including down payment $ 19,439

Hours Flown per Month 10 20 25 30 50 60

Hours Flown per Year 120 240 300 360 600 720

Total Cost per Hour $ (13) $ 45 $ 56 $ 64 $ 79 $ 83

Total Cost per Hour including down payment $ 264 $ 183 $ 167 $ 156 $ 135 $ 129

Year Two

Annual fixed cost & tax benefit $ 24,790

Hours Flown per Month 10 20 25 30 50 60

Hours Flown per Year 120 240 300 360 600 720

Total Cost per Hour $ 309 $ 206 $ 185 $ 171 $ 144 $ 137

Year Three

Annual fixed cost & tax benefit $ 33,671

Hours Flown per Month 10 20 25 30 50 60

Hours Flown per Year 120 240 300 360 600 720

Total Cost per Hour $ 383 $ 243 $ 214 $ 196 $ 158 $ 149

New SR20 for Training $332,230.00 (See Ops Cost Tab)

AnnuallyHour per month 35 45 55 65 660 (Annual is at 55 hours per month)

Variable CostsRates

Fuel 42.75$ 1,496.25$ 1,923.75$ 2,351.25$ 2,778.75$ $28,215.00 Cost @ 55 hrs per month, See Ops Tab)Maintenance 42.00$ 1,470.00$ 1,890.00$ 2,310.00$ 2,730.00$ $27,720.00Engine reserve 17.08$ 597.92$ 768.75$ 939.58$ 1,110.42$ $11,275.00Total Variable 3,564.17$ 4,582.50$ 5,600.83$ 6,619.17$ $67,210.00

Fixed Costs

Advocate Consulting 375.00$ 375.00$ 375.00$ 375.00$ 375.00$ $4,500.00XMS Radio 45.00$ 45.00$ 45.00$ 45.00$ 45.00$ $500.00Garmin Updates 16.00$ 16.00$ 16.00$ 16.00$ 16.00$ $200.00Insurance 875.00$ 875.00$ 875.00$ 875.00$ 875.00$ $10,500.00payment 2,238.13$ $2,238.13 $2,238.13 $2,238.13 $2,238.13 $26,857.52 (See Ops Cost Tab)Hangar 350.00$ 350.00$ 350.00$ 350.00$ 350.00$ $2,400.00Depreciation $14,470.50 $14,470.50 $14,470.50 $14,470.50 $14,470.50 $173,646.00 (See Ops Cost Tab)Total Variable 3,564.17$ 4,582.50$ 5,600.83$ 6,619.17$ $0.00Total Cost 21,933.79$ 22,952.13$ 23,970.46$ 24,988.79$ $67,210.00

Income

Rental 165.00$ 5,775.00$ 7,425.00$ 9,075.00$ 10,725.00$ $108,900.00management fee 10% 577.50$ 742.50$ 907.50$ 1,072.50$ $10,890.00Total income 5,197.50$ 6,682.50$ 8,167.50$ 9,652.50$ $98,010.00

Net inc (loss) (16,736.29)$ (16,269.63)$ (15,802.96)$ (15,336.29)$ (189,635.52)$

Cash Flow (2,265.79)$ (1,799.13)$ (1,332.46)$ (865.79)$ (15,989.52)$ (For 55 hrs per month)

tax benefit $5,064.68 $5,064.68 $5,064.68 $5,064.68 $60,776.10

Cash Flow After Tax Savings $2,798.88 $3,265.55 $3,732.22 $4,198.88 44,786.58$

Annual After Tax Savings Cash Flow33,586.58$ 39,186.58$ 44,786.58$ 50,386.58$

• Flying paid for from Leaseback • Business use of airplane allows for tax

advantages• Flying 2.0 at affordable prices• State of the art Aircraft

Business Value

• No Payment for first 3 months• Learn to Fly for FREE at Local Cirrus

Training Center

Demo Leaseback Opportunity

Order Your New SR20 now!

Be flying by April.

KEY POINTS

Build equity with a leasebackTax savings opportunityAggressive investment opportunityPay off loan early and take profits after sale. Learn to Fly for FREENo payments until April 15th 2007 with Cirrus Demo Leaseback opportunity