AIRCRAFT SALES AND PROCUREMENT · PDF fileAgain in this process we need to know who is the...

AIRCRAFT SALES AND PROCUREMENT PROCEDURES

INTRODUCTION

This document is set up as a guideline on how we can service you and how sales and acquisitionprocedures are set up to make it work. Deviations and/or alterations in this process willunnecessarily make the process more time consuming and difficult.

The sales and procurement process is documented and followed to protect the interests of allconcerned parties. The benefits are that expectations are met, progress is monitored and obstaclesare dealt with in a timely and professional manner. The sales procedure is fully aligned with theprocess of the principal sellers for the new aircraft.

On a regular bases we are being confronted with misunderstandings throughout the sales andacquisitions process. Sometimes this might even appear that we are unwilling to assist the clients intheir efforts to structure or align a purchase. This is not the case, however, we do follow certainprocedures which are based on our experience, our ethics and foremost based on industrystandards and/or instructions or restrictions from the seller.

Global Aviation Partners | UOB Plaza 1, 35th Floor, 80 Raffles Place, Singapore, 048624Phone: +65 6248 4692 | Fax: +65 6248 4501 | Email: [email protected]

www.globalaviationpartners.com

BASIC INFORMATION

WHO IS THE BUYER?

In any case we need to know who we are dealing with, so who is the buyer. At any given momentwe are involved in ongoing sales and acquisition processes all over the world through a fine mazednetwork of sales partners and professional advisors or facilitators. From a professional point ofview we try to avoid that a client is being contacted via different sales channels, which is proven tobe contra productive and confusing.

Bottom line, with all due respect to professional advisors, but without a name of client/buyer wewill not offer any products, provide detailed specification and/or provide prices. Should you needan additional Non Disclosure and/or Non Circumvention agreement than we will be happy to entersuch agreements.

NON DISCLOSURE AND NON CIRCUMVENT AGREEMENT

In any case we will enter a Non Circumvent and Non Disclosure agreement with all of our salespartners, facilitators and clients. In the event we are entering a sales process together with a salespartner or professional advisor, we will also ask to sign a 3-party contract to protect and serve thebest interests of both ourselves, the advisors and the client.



PURCHASE OF A NEW AIRCRAFT

Most of the time the client will know exactly what they want and when they want it. If not, thankindly inform us and we can assist in your final assessment with professional fleet advisors who canadvise the management of the client about the preferred aircraft of choice based on specificclients’ operations, taking into account future operations and overall profitability.

The procedures for sales and/or purchase of new aircraft needs to be followed strictly and cannotbe deviated in any way. Rule of thumb is that the buyer is ready, willing and able to purchase theaircraft, which can be shown by NCNDA, Letter of Intent, Proof Of Fund and a Refundable Depositto escrow account. Provided procedures are valid in more than 90% of the cases, any deviations inthis process we will communicate accordingly and before entering process.

To prevent miscommunications; although the new aircraft might be delivered directly from theproduction plant of the manufacturer, the official and current title holder of the aircraft is mostlynot the manufacturer, in such cases the buyer will not deal directly with the manufacturer.

Important: until the moment that the LOI, POF and refundable deposit are submitted, we will onlyrelease general aircraft specifications and never any AID/MSN numbers. The specific aircraftrelated specifications and AID/MSN numbers will only be released via escrow services and afterinitial procurement procedures.





PROCUREMENT PROCEDURE; NEW AIRCRAFT

1. Buyer indicate their request in terms of the amount and model aircraft which they want topurchase. Preferably in the form of an official Request For Proposal (RFP).

2. Global Aviation Partners (‘GAP’) responds with indicative quote and provide NCNDA forsigning.

3. Once NCNDA has been signed, Global Aviation Partners will provide a Corporate Offer andLetter of Intent (‘LOI’) for signing.

4. Within 5 days, after signing LOI, the buyer will show Proof of Funds (‘POF’) for the full amountof all aircraft into escrow account.

5. Within 5 days, after signing LOI, the seller will deposit AID/MSN into escrow account.

6. Within 5 days, after signing LOI, the buyer will place initial securing deposit. To be paid directlyinto escrow account. This sum is fully refundable should the sale fail to close.

7. Escrow lawyer will inform Seller and Buyer once all documentation and information has beenapproved and ready to proceed.

8. Within 15 days client is invited to perform the technical inspection of the aircraft.

9. After successful inspection of each aircraft, the buyer signs a binding letter of acceptance foreach of the aircraft.

10. Final Sale and Purchase Agreement (‘SPA’) to be agreed and signed for each aircraft.

11. On signature of Sale and Purchase Agreement, buyer will transfer the balance of payment intoescrow account and instructs escrow agent to transfer full payment to principal seller for eachaircraft, post acceptance and prior to delivery.



PURCHASE OF A PRE-OWNED AIRCRAFT

The process to purchase one or multiple pre-owned aircraft can have many variations anddepends on a range of different factors and circumstances. Kindly forward us your request andtake note of the following;

Again in this process we need to know who is the buyer and have a signed NCNDA in placebetween GAP, the buyer (and the professional advisor). We are not keen on working with endlessbroker chains, so transparency is key to a successful transaction.

In any case a client must be able to provide us with a Proof of Fund (POF), as also the unrestrictedability to place a refundable securing deposit to the escrow agent.

We always work in the best interest of all parties, but our ethical code does not allow to work forboth the buyer and seller at the same time since we believe this will always jeopardize thecredibility of the transaction and will at least create the appearance of conflicts of interest.

Global Aviation Partners do not involve in any financial transactions that involves fraud, corruption,money laundering or any financial transaction which involve any unlawful behavior for that matter.



LEASING OF AN AIRCRAFT

At this moment we can take lease applications for both new and pre-owned aircraft. To receive anoffer, next procedure needs to be followed strictly. To receive a final offer and close a transaction isunder strict condition that end buyer/lessee will be accepted by the lessor and/or financer.

1. Provide an official Request for Proposal (RFP) addressed to GAP (from the end client).

2. GAP will follow up with an NCNDA for mutual signing.

3. GAP will provide Lease Questionnaire, to be completed by end client.

4. Client provide back completed Lease Questionnaire + an official mandate.

5. With the received documents we will discuss with our dedicated leasing partners and financers,and report back to the client with initial outcome. From there on we move further.

Global Aviation Partners will support the process of the lease application. The final agreement willbe executed directly between the lessor and the Lessee.

GLOBAL AVIATION PARTNERSYOUR RELIABLE PARTNER IN THE AVIATION INDUSTRY

Global Aviation Partners | UOB Plaza 1, 35th Floor, 80 Raffles Place, Singapore, 048624Phone: +65 6248 4692 | Fax: +65 6248 4501 | Email [email protected]


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