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INNOVATION PODIUM

INNOVATION PODIUM. NEXT SESSION. 01:00 - 01:30. “LEKTRO – PIONEERING TOWBARLESS TOWING SINCE 1967”. Jesse Long, Excecutive Vice President , LEKTRO Inc. Towbarless Tow Vehicles By: Jesse Long, Executive Vice President. History / Introduction Advantages of Tow Vehicles

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INNOVATION PODIUM

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  1. INNOVATION PODIUM

  2. NEXT SESSION 01:00 - 01:30 “LEKTRO – PIONEERING TOWBARLESS TOWING SINCE 1967” Jesse Long, Excecutive Vice President, LEKTRO Inc.

  3. Towbarless Tow VehiclesBy: Jesse Long, Executive Vice President

  4. History / Introduction • Advantages of Tow Vehicles • Partial List of Current Customers • Summary / Closing Comments Presentation Outline

  5. LEKTRO developed the world’s first Towbarless Tow Tractor in 1967 for Oregon based FBO, Flightcraft. HISTORY

  6. LEKTRO tugs have been used by commercial airlines worldwide since the mid-1980s HISTORY

  7. Today, LEKTRO has nearly 4,500 customers worldwide including: • Private/corporate operators • FBOs • Airlines • Government/Military operators • Aircraft OEMs HISTORY

  8. tow vehicles quickly pay for themselves in the following ways: • Universal Capability - One tug can handle a variety of aircraft • Sustainability • Easy Operation / Requires Less Training • Low Environmental Impact • Highly Maneuverable (Aircraft safety increased) • Personnel Safety (Injuries decreased) • Cost Savings The Advantage

  9. Universality/Capability • One tug can handle a variety of aircraft The Advantage

  10. Universality/Capability • One tug can handle all aircraft • No need for towbars The Advantage

  11. Universality/Capability • One tug can handle all aircraft • No need for towbars • Towbarless Tow Vehicle capacity increases proportionately with aircraft weight The Advantage

  12. Sustainability • No towbars which require maintenance/replacement • Capable of operating in all weather conditions • Not affected by heat • Does not require the expense and time spent performing combustion engine maintenance • Routine maintenance includes only: • Charging the batteries • Filling the batteries with water • Maintaining a few grease points The Advantage

  13. - 2010 PRESS RELEASE - lektrodelivers 3,700th electric towbarless aircraft tug Warrenton, Oregon….Eric Paulson, President of LEKTRO, Inc., the world's #1 producer of a towbarless aircraft tow tractors, announced that it recently delivered it's 3,700thtowbarless tractor to Delta's Regional Elite Airline Services at the Detroit-Wayne (DTW) Michigan Airport. The Regional Elite model is LEKTRO's popular 120,000 all-electric AP8850SDA-AL-100, certified to handle the complete range of regional aircraft from the Dash 8 thru ERJ135/145, CRJ 200-900 and EMB 170-195. LEKTRO pioneered the towbarless tow tractor market when it first developed the towbarless tug back in 1967. LEKTRO combined its towbarless design with state-of-the-art battery power resulting in the safest, most efficient and most environmentally friendly tow tractor the aviation industry has ever experienced. "These features are some of the main reasons Regional Elite Aircraft Services chose LEKTRO," stated Dick Schukraft, Director of Hub Operations. "The LEKTRO tug not only helps keep our operation efficient, it helps us do our part for the environment." Bill Kilduff, Department Manager of Ramp Operations and Kevin Gleason, Department Manager of GSE at DTW, both confirm that their LEKTRO tugs are easy to use, easy to operate, easy to maintain, and are very gentle on the aircraft. "The passenger experience while being pushed-back by a LEKTRO is unbelievably smooth, much better than a conventional tractor and towbar," stated Kilduff. "The rugged design and excellent access to the components makes maintaining a LEKTRO tug simple as well," added Gleason. The Advantage

  14. Requires Minimal Maintenance • Batteries have been known to last 14-18 years in high-use airline applications before needing replacement • Eliminates possibility of towbar/shear-pin breakage • No tune-ups required • No starters, spark plugs, carburetors, etc. • No oil-changes required • Easily accessible • Solid State • Simple • Central battery water fill system The Advantage

  15. Easy Operation / Requires Less Training • Operation • Much easier to learn to operate a LEKTRO than conventional tractors (Approximately 1/10 of the time is required) • Maintenance • Fewer components and systems to maintain • Less-complicated components • Three basic components: • Battery • Electric motor • Controller The Advantage

  16. Easy Operation • Fewer personnel required • Single operator can safely complete capture process • Eliminates need for brake-rider in aircraft • Faster hook-up time • No towbar/tow head required • Single pivot point = increased/easy maneuverability • Capture video The Advantage

  17. Low Environmental Impact • Emission-Free • Batteries fully recyclable • Acid can be neutralized • Lead is recyclable • Rubber is recyclable • Steel case is recyclable The Advantage

  18. Highly Maneuverable (Aircraft Safety Increased) • Ability to position aircraft in confined areas The Advantage

  19. Highly Maneuverable (Aircraft Safety Increased) • Ability to position aircraft in confined areas • Increased hangar capacity • More aircraft can be stored inside • Reduces aircraft maintenance • Reduces aircraft exposure to elements • Reduces “Hangar Rash” • Simplifies the connection between the aircraft and tow vehicle by reducing from the standard 2 pivot-point connection to a single pivot-point, completely eliminating the possibility of jack-knifing. • Utilizes NLG weight to increase traction The Advantage

  20. Safety (Personnel Injuries Decreased) • Eliminates back injuries from handling heavy towbars • Eliminates pinched/broken finger injuries associated with connecting towbar to tug/aircraft • No fumes • Personnel not subjected to CO2 exhaust emissions • Can be operated inside hangar with doors closed • No Noise • Personnel can easily communicate with each other to avoid possible accidents The Advantage

  21. Facility Savings • Procurement • Does not require the purchase of corresponding towbars and tow heads • Sustainment • Electric LEKTRO can operate in a closed hangar reducing heating/cooling cost associated with open doors • Hangars can be smaller as towbarless LEKTROs are much more maneuverable than tug/towbar combination • No need to purchase/stock engine oil or tug fuel The Advantage

  22. Yearly Operational Cost of Conventional Tractor with Towbar (ALL FIGURES IN U.S. DOLLARS) Assumptions: • 5 hours of use per day • Labor cost @ $50.00/Hour Fully Burdened Fuel Consumption $7,300.00 • 5 Gal. per day X $4.00/Gal. = $20.00/Day X 365 Days Engine Oil $24.00 • 1 Qt./Month @ $2.00/Qt. Maintenance Allowance $5,475.00 • $3.00/Hour @ 5 Hours/Day = $15.00/Day X 365 Days Operation Labor $273,750.00 • 3 Hours/Day for 5 People = 15 man hours X $50.00/Hour = $750.00/Day X 365 Days Training Labor $9,000.00 • 30 Hours/Trainee X 6 Trainees/Year = 180 Hours X $50.00 Aircraft Damage due to Towbar Jack-Knifing or Wing-Tip collision $10,000.00 Additional Hangar Heating/Cooling Cost due to Doors Open because of Fumes $9,125.00 • $5.00/Movement X 5 Movements/Day = $25.00/Day X365 Days Decrease of Aircraft able to Park in Hangar(Equivalent to Hangar Rental of One Aircraft per Month) $9,600.00 • $800.00/Month X 12 Months Cost of Back Injuries and Pinched Fingers as a Result of TowbarHandling $1,000.00 Total Cost Per Year to Operate Conventional Tractor with Towbar US$325,274.00

  23. Yearly Operational Cost of LEKTRO All-Electric Towbarless Tow Vehicle (ALL FIGURES IN U.S. DOLLARS) Assumptions: • 2 hours of use per day • Labor cost @ $50.00/Hour Fully Burdened Battery Recharge $3,650.00 • $10.00/Day X 365 Days Maintenance Allowance $2,190.00 • $3.00/Hour @ 2 Hours/Day = $6.00/Day X 365 Days Battery Replacement Allowance $2,000.00 Training Labor $900.00 • 3 Hours/Trainee X 6 Trainees/Year = 18 Hours X $50.00 Operation Labor $109,500.00 • 2 Hours/Day for 3 People = 6 man hours X $50.00/Hour = $300.00/Day X 365 Days Total Cost Per Year to Operate LEKTRO Tow Vehicle US$118,240.00

  24. Cost Comparison Between LEKTRO AP8850SDA-AL and Conventional Tractor with Towbar (ALL FIGURES IN U.S. DOLLARS) Estimated Acquisition Cost • LEKTRO AP8850SDA-AL $106,000.00/Each • Conventional Tractor • Tractor $70,000.00 • Towbars(4 x $6,000/ea.) $24,000.00 • Towbar Heads (4 x $3,000/ea) $12,000.00 • Total $106,000.00/Each • Price Difference Between LEKTRO and Conventional Tug $0.00/Each Estimated Operational Cost • LEKTRO AP8850SDA-AL $118,240.00/Year • Conventional Tractor with Towbars$325,274.00/Year • More for Conventional Tractor with Towbars $207,034.00/Year Assumption • 20 Tow Tractors Procured and Operated Over 10 Year Period LEKTRO AP8850SDA-ALConventional Tractor with Towbars • Procurement $2,120,000.00 $2,120,000.00 • Operation$2,364,800.00$6,505,480.00 • Total for 10/Years $4,484,800.00 $8,625,480.00 Savings an airline could experience over 10 year period by utilizing 20 LEKTRO AP8850SDA-ALs vs. Conventional Tractors with Towbars: US$4,140,680.00

  25. Cost Comparison Between LEKTRO AP8950SDB-AL and Conventional Tractor with Towbar (ALL FIGURES IN U.S. DOLLARS) Estimated Acquisition Cost • LEKTRO AP8950SDB-AL $180,000.00/Each • Conventional Tractor • Tractor $100,000.00 • Towbars(4 x $8,000/ea.) $32,000.00 • Towbar Heads (4 x $4,000/ea) $16,000.00 • Total $148,000.00/Each • More for LEKTRO AP8950SDB-AL vs. Conventional Tug $32,000.00/Each Estimated Operational Cost • LEKTRO AP8950SDB-AL $118,240.00/Year • Conventional Tractor with Towbars$325,274.00/Year • More for Conventional Tractor with Towbars $207,034.00/Year Assumption • 20 Tow Tractors Procured and Operated Over 10 Year Period LEKTRO AP8850SDA-ALConventional Tractor with Towbars • Procurement $3,600,000.00 $2,960,000.00 • Operation$2,364,800.00$6,505,480.00 • Total for 10/Years $5,964,800.00 $9,465,480.00 Savings an airline could experience over 10 year period by utilizing 20 LEKTRO AP8950SDB-ALs vs. Conventional Tractors with Towbars: US$3,500,680.00

  26. Partial List of Airline LEKTRO Customers • Air New Zealand • American Eagle Airlines • Delta Airlines • Horizon Airlines • Jazz Air • Porter Airlines • Qantas Link Airlines • SkyWest Airlines • United Airlines • US Airways Customers

  27. Partial List of Middle East LEKTRO Customers United Arab Emirates: • ExecuJet Middle East (+971-4601-3445) • Falcon Aviation Services (+971- 444-8866) • Fujairah International Airport (+971-9222-6222) • Government of Dubai (+971-4216-2525) • Jet Aviation (+971-4207-3409) • Royal Jet (+971-2575-7713) Bahrain: • Bahrain Airport Services (+973-1732-1700) Cyprus: • Cyprus Police Air Wing (+347-463-0743) Customers

  28. Egypt: • Ministry of Civil Aviation (+010-264-4208) Lebanon: • Flying Carpet Air Transport & Services (+961-368-2255) • Middle East Airlines (+961-622-870) • Middle East Development Co. (+961-368-8360) Oman: • Royal Flight (+968-2451-6471) Qatar: • Qatar Aeronautical College (+974-441-5808) • Rizon Jet Company, LLC (+974-499-1827) Customers

  29. Kingdom of Saudi Arabia: • Aramco Oil Co. (+9663-877-4098) • Executive Air Transport (+9661-232-6090) • Jet Aviation (+9661-221-4200) • Ministry of Defense and Aviation (+9661-491-5827) • WallanAviation (+9661-456-8487) Turkey: • CelebiHavaServisi (+90-535-442-6778) • MNG Jet (+90-212-468-0500) • Havas Ground Handling Co. (+90-212-456-5656 Ext. 1960) • TAV-GOZEN (+90-212-465-5555) • THY Teknik/Turkish Airlines (+90-212-403-6363) Customers

  30. Summary of towbarless tug benefits • Reduces time and manpower required to handle aircraft • Reduces potential for aircraft damage • Increases personnel safety • Increases hangar density • Reduces aircraft exposure to elements • Reduces cost of transport • Reduces hangar heating/cooling cost • Eliminates need to purchase/maintain towbars • Reduces tug maintenance costs • Can provide ground power to aircraft Benefits

  31. Summary • With nearly 4,500 units currently in operation around the world, LEKTRO is the world leader in all-electric towbarless towing. • LEKTRO’s long-term history and broad base of world-wide customers has resulted in a product that is highly-versatile, safe, efficient, and easy to use. • LEKTRO equipment has significant benefits and allows for significant savings. Summary

  32. Factory LEKTRO, Inc. Attn: Mr. Jesse Long 1190 SE Flightline Dr. Warrenton, OR 97146 Tel: +1-503-861-2288 Fax: +1-503-861-2283 Email: jlong@lektro.com Web: www.lektro.com U.A.E. Representative Advance Development Agency, LLC Attn: Mr. IqbalDurrani Office G10 Al Asmawi Bldg. Dubai Investment Park PO Box 29512 Dubai, U.A.E. Tel: +971-4884-9411 Fax: +971-4884-9414 Email: idurrani@ada.llc.com Contact Details

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