Comparative Present Value of Cash outflow for Lease Rent and Maintenance Reserve

Between the situation of existing leased 737-800 Aircraft continue in Biman operation and
Discountinue by taking lease of another 737-800 Aircraft rather than GECAS

Cash out Flow Discounting Discounted Cash out Flow

Sl No. Year Continuation of GECAS Discontinuation of GECAS Factor @ Continuation of GECAS Discontinuation of GECAS
Aircraft upto 2019-20 Aircrfat in 2014-15 10% Aircraft upto 2019-20 Aircrfat in 2014-15

0 2013-14 $18,104,716 $22,994,909 1 $18,104,716 $22,994,909

1 2014-15 $13,644,146 $14,171,976 0.9091 $12,403,769 $12,883,614
2 2015-16 $12,171,419 $21,121,108 0.8264 $10,059,024 $17,455,461
3 2016-17 $12,786,976 $14,524,389 0.7513 $9,607,044 $10,912,388
4 2017-18 $15,699,912 $24,120,770 0.6830 $10,723,251 $16,474,811
5 2018-19 $13,995,842 $15,117,133 0.6209 $8,690,317 $9,386,551
6 2019-20 $12,472,257 $22,921,104 0.5645 $7,040,264 $12,938,366

Present Value $76,628,386 $103,046,100

Note:
01. It is very difficult to assume the engine condition or the aircraft condition at the time of delivery the Aircraft in both cases, whether we
continue GECAS Aircraft or we take other new lease from another party.
02. The engine shop visit considered to be done in 2013-14 and 2017-18
03. Shop visit cost per Engine considered as $ 4.5 Million.
04. Redelivery cost of two 737-800 Aircraft would be $7 Million.
05. The maintenance cost of Airframe, Shop visit cost of APU and Landing Gear would be covered by the deposited Maintenance Reserve.
06. Dry lease cost of $ 3,00,000 per month has been considered for new 737-800 Aircraft if Biman discontinue GECAS offer.
07. Maintenance Reserve Rate per Block Hour for the year 2015-16 for both option as follows:
GECAS Other then GECAS
Airframe $101.61 Per BH $14,040 per Month per Aircraft
Engine-S2-AFM $176.37 Per BH $145 per engine per Block Hours
Engine-S2-AFL $176.37 Per BH $145 per engine per Block Hours
LLP-1/Cycle $122.23 Per Cycle 127 per enginr per Cycle
LLP-2/Cycle $122.23 per Cycle 127 per enginr per Cycle
Landing Gear $11.68 Per BH $3,0810 per Month per Aircraft
APU $23.37 Per BH $38 per Block Hour
 Continuation of
Particulars
2013-14 2014-15

Laese Cost $5,460,000 $5,185,000

Maintenance Reserve:
Airframe $720,990 $742,588
Engine-S2-AFM $1,251,457 $1,288,946
Engine-S2-AFL $1,251,457 $1,288,946
LLP-1/Cycle $316,981 $326,466
LLP-2/Cycle $316,981 $326,466
Landing Gear $82,878 $85,361
APU $165,832 $170,800
Total $4,106,577 $4,229,573
Additional Maintenance Cost:
Airframe
Engine-S2-AFM $4,431,562
Engine-S2-AFL $0
LLP-1/Cycle
LLP-2/Cycle
Landing Gear
APU
Total
Cost of Redelivery

Total Cash outflaw $18,104,716 $13,644,146

Note: Schedule Delivery date of S2-AFM is 24th Jan'15

 Balance as
Maintenance Cost : on 30/06/2013
Airframe Checks 1,234,530
Estimated for APU SV 12,825
Engine Shop Visit (2 Engine) 5,541,368
Landing Gear 141,919
Cumulative Maintenance Reserve:
Airframe $1,955,520 $2,698,108
Engine-S2-AFM 1,251,457 $2,540,403
Engine-S2-AFL 5,369,553 $6,658,499
LLP-1/Cycle 316,981 $643,448
LLP-2/Cycle 1,740,254 $2,066,720
Landing Gear 224,797 $310,158
APU 178,657 $349,457
$11,037,220 $15,266,793

Estimated BH 7,308 7,308

Estimated Cycle 2,671 2,671
Maintenance Reserve Rate:
Airframe $98.65 $101.61
Engine-1 $171.24 $176.37
Engine-2 $171.24 $176.37
LLP-1/Cycle $118.67 $122.23
LLP-2/Cycle $118.67 $122.23
Landing Gear $11.34 $11.68
APU $22.69 $23.37
Balance available in Reseve fund
For Maintenance of Aircraft
As on 30 Jun'13
 Airframe 1,234,530.49
Engine-1 -
Engine-2 -
Engine-1 2,111,357.57
Engine-2 2,006,738.69
LLP-1/Cycle -
LLP-2/Cycle -
LLP-1/Cycle 729,369.80
LLP-2/Cycle 693,902.43
Landing Gear 141,918.58
APU 263,630.78
 Continuation of GECAS offer upto 2019-20 Discontinuation of GEC
2015-16 2016-17 2017-18 2018-19 2019-20 2013-14 2014-15

$4,800,000 $4,800,000 $4,800,000 $4,800,000 $2,800,000 $5,460,000 $6,185,000

$575,617 $584,482 $602,016 $633,856 $712,983 $720,990 $584,482

$999,127 $1,014,513 $1,044,948 $1,100,215 $1,237,558 $1,251,457 $1,014,513
$999,127 $1,014,513 $1,044,948 $1,100,215 $1,237,558 $1,251,457 $1,014,513
$456,637 $589,180 $606,855 $638,951 $701,040 $316,981 $589,180
$456,637 $589,180 $606,855 $638,951 $701,040 $316,981 $589,180
$66,168 $67,187 $69,202 $72,862 $81,958 $82,878 $67,187
$132,396 $134,434 $138,467 $145,791 $163,990 $165,832 $134,434
$3,685,709 $3,993,488 $4,113,293 $4,330,840 $4,836,128 $4,106,577 $3,993,488

$2,673,327 $7,431,562
$534,162 $1,890,193

$0

$12,171,419 $12,786,976 $15,699,912 $13,995,842 $12,472,257 $22,994,909 $14,171,976

date of S2-AFM is 24th Jan'15 and AFL is 4th Feb'15

 $152,000
$200,000 $200,000 $200,000 $0
$9,000,000 $8,600,000
$0

$3,273,725 $3,858,207 $4,460,223 $5,094,079 $5,807,062

$2,288,073 $3,302,586 $4,347,534 $5,447,749 $6,685,307
$2,288,073 $3,302,586 $4,347,534 $5,447,749 $6,685,307
$783,104 $1,372,283 $1,979,138 $2,618,089 $3,319,130
$783,104 $1,372,283 $1,979,138 $2,618,089 $3,319,130
290,965 358,151 427,354 500,216 582,174
281,852 216,287 354,754 300,545 464,535
$9,988,896 $13,782,384 $17,895,676 $22,026,516 $26,862,645

5,665 5,585 5,585 5,709 6,234

3736 4680 4680 4784 5096

$101.61 $104.66 $107.80 $111.04 $114.37

$176.37 $181.67 $187.12 $192.73 $198.51
$176.37 $181.67 $187.12 $192.73 $198.51
$122.23 $125.89 $129.67 $133.56 $137.57
$122.23 $125.89 $129.67 $133.56 $137.57
$11.68 $12.03 $12.39 $12.76 $13.15
$23.37 $24.07 $24.79 $25.54 $26.30
Discontinuation of GECAS offer in Jan' 15
2015-16 2016-17 2017-18 2018-19 2019-20

$7,200,000 $7,200,000 $7,200,000 $7,200,000 $7,200,000

$456,289 $469,977 $484,077 $498,599 $513,557

$910,261 $834,045 $859,066 $904,501 $1,017,414
$910,261 $834,045 $859,066 $904,501 $1,017,414
$465,555 $612,191 $630,557 $663,906 $728,420
$465,555 $612,191 $630,557 $663,906 $728,420
$78,804 $81,168 $83,603 $86,111 $88,694
$173,829 $218,577 $225,135 $237,042 $266,633
$3,460,554 $3,662,194 $3,772,060 $3,958,567 $4,360,552

$4,688,325
$4,688,325

$7,000,000 $7,000,000

$21,121,108 $14,524,389 $24,120,770 $15,117,133 $22,921,104

 200000 200000 200000 200000
18000000

456,289 926,266 1,410,343 1,908,942 2,422,499

910,261 1,744,307 2,603,373 904,501 1,921,915
910,261 1,744,307 2,603,373 904,501 1,921,915
465,555 1,077,746 1,708,302 663,906 1,392,326
465,555 1,077,746 1,708,302 663,906 1,392,326
78,804 159,972 243,575 329,686 418,380
173,829 192,406 217,541 454,583 521,215

5,665 5,585 5,585 5,709 6,234 35,011

3736 4680 4680 4784 5096
 Particulars
2013-14 2014-15

Maintenance Airframe $98.65 $101.61

Reserve Engine-S2-AFM $171.24 $176.37
Rate Engine-S2-AFL $171.24 $176.37
S2-AFM -LLP-1/Cycle $118.67 $122.23
S2-AFL- LLP-2/Cycle $118.67 $122.23
Landing Gear $11.34 $11.68
APU $22.69 $23.37

Estimated Yearly Block Hours $7,308.31 $7,308.00

Estimated Yearly Cycle $2,671.20 $2,671.00

Maintenance Airframe $720,990 $742,588

Reserve Engine-S2-AFM $1,251,457 $1,288,946
Amount Engine-S2-AFL $1,251,457 $1,288,946
S2-AFM -LLP-1/Cycle $316,981 $326,466
S2-AFL- LLP-2/Cycle $316,981 $326,466
Landing Gear $82,878 $85,361
APU $165,832 $170,800
Total $4,106,577 $4,229,573

Maintenance Airframe $1,234,530

Reserve Balance Engine-S2-AFM
As on 30/06/2013 Engine-S2-AFL $4,118,096
S2-AFM -LLP-1/Cycle
S2-AFL- LLP-2/Cycle $1,423,272
Landing Gear $141,919
APU $12,825
Total

Maintenance Airframe
Reserve to be used Engine-S2-AFM
for maintenance Engine-S2-AFL
S2-AFM -LLP-1/Cycle
S2-AFL- LLP-2/Cycle
Landing Gear
APU
Total
Cumulative Airframe $1,955,520 $2,698,108
Maintenance Engine-S2-AFM $1,251,457 $2,540,403
Reserve Engine-S2-AFL $5,369,553 $6,658,499
S2-AFM -LLP-1/Cycle $316,981 $643,448
S2-AFL- LLP-2/Cycle $1,740,254 $2,066,720
Landing Gear $224,797 $310,158
APU $178,657 $349,457
Total $11,037,220 $15,266,793
 Year
2015-16 2016-17 2017-18 2018-19 2019-20

$101.61 $104.66 $107.80 $111.04 $114.37 $117.80

$176.37 $181.67 $187.12 $192.73 $198.51 $204.47
$176.37 $181.67 $187.12 $192.73 $198.51 $204.47
$122.23 $125.89 $129.67 $133.56 $137.57 $141.69
$122.23 $125.89 $129.67 $133.56 $137.57 $141.69
$11.68 $12.03 $12.39 $12.76 $13.15 $13.54
$23.37 $24.07 $24.79 $25.54 $26.30 $27.09

$5,664.80 $5,584.50 $5,584.50 $5,708.60 $6,234.20 $6,234.20

$3,736.00 $4,680.00 $4,680.00 $4,784.00 $5,096.00 $5,096.00

$575,617 $584,482 $602,016 $633,856 $712,983

$999,127 $1,014,513 $1,044,948 $1,100,215 $1,237,558
$999,127 $1,014,513 $1,044,948 $1,100,215 $1,237,558
$456,637 $589,180 $606,855 $638,951 $701,040
$456,637 $589,180 $606,855 $638,951 $701,040
$66,168 $67,187 $69,202 $72,862 $81,958
$132,396 $134,434 $138,467 $145,791 $163,990
$3,685,709 $3,993,488 $4,113,293 $4,330,840 $4,836,128
 $3,273,725 $3,858,207 $4,460,223 $5,094,079 $5,807,062 3,273,725.47
$3,539,530 $4,554,043 $5,598,991 $6,699,206 $7,936,764 2,288,072.74
$7,657,626 $8,672,139 $9,717,087 $10,817,302 $12,054,861 2,288,072.74
$1,100,085 $1,689,265 $2,296,120 $2,935,071 $3,636,111 783,103.83
$2,523,357 $3,112,537 $3,719,392 $4,358,343 $5,059,383 783,103.83
$376,326 $443,513 $512,715 $585,577 $667,535 290,964.78
$481,852 $616,287 $754,754 $900,545 $1,064,535 281,852.23
$18,952,502 $22,945,990 $27,059,283 $31,390,123 $36,226,251
 -
1,251,457.08
5,369,553.33
316,981.42
1,740,253.65
85,361.16
200,000.00
 Maintenance Reserve for 737-800 Aircraft

S2-AFL
Particulars
Engine No. 888440 Engine No. 888567 Total

Engine Refurbishment $1,961,583 $1,548,302 $3,509,885

LLP $657,376 $539,764 $1,197,140
Total $2,618,958 $2,088,066 $4,707,025

Note : Up to Apr'14 .
ve for 737-800 Aircraft

S2-AFM
Engine No. 888441 Engine No. 888417 Total

$1,692,018 $1,605,391 $3,297,409

$593,373 $555,122 $1,148,495
$2,285,391 $2,160,513 $4,445,904

Up to Jan'14 as both the Engine removed from the Aircraft.