<PAGE> 1
EXHIBIT 99.5
[LOGO] AIRCRAFT
INFORMATION
SERVICES, INC.
MR. TOM ASHE
AERFI GROUP
AVIATION HOUSE
SHANNON
CO CLARE
IRELAND
HALF LIFE AND ADJUSTED BASE VALUE OPINION
33 AIRCRAFT - AERCO FLEET
AISI FILE NO.: A0S033BVO
DATE: 09 MAY 2000
VALUES AS OF: 30 APRIL 2000
HEADQUARTERS, 26072 MERIT CIRCLE, SUITE 123, LAGUNA HILLS, CA 92653
TEL: 949-582-8868 FAX: 949-5892-8887 E-MAIL: [email protected]
<PAGE> 2
[LOGO] AIRCRAFT
INFORMATION
SERVICES, INC.
09 May 2000
Mr. Tom Ashe
AerFi Group
Aviation House
Shannon
Co Clare
Ireland
Subject: Half Life and Adjusted Base Value Opinion - 33 Aircraft.
AISI File number: A0S033BVO
Dear Mr. Ashe:
In response to your request, Aircraft Information Services, Inc. (AISI) is
pleased to offer our opinion of the half life and adjusted base values of the
Fleet of 33 Aircraft as identified in Table I (the "Aircraft").
1. METHODOLOGY AND DEFINITIONS
The standard terms of reference for commercial aircraft value are "half-life
base market value" and "half-life current market value" of an "average"
aircraft. Base value is a theoretical value that assumes a balanced market
while current market value is the value in the real market; both assume a
hypothetical average aircraft condition. AISI value definitions are consistent
with the current definitions of the International Society of Transport Aircraft
Trading (ISTAT), those of 01 January 1994. AISI is a member of that
organization and employs an ISTAT Certified and Senior Certified Aircraft
Appraiser.
AISI defines a "base value" as that of a transaction between equally willing
and informed buyer and seller, neither under compulsion to buy or sell, for a
single unit cash transaction with no hidden value or liability, and with supply
and demand of the sale item roughly in balance. Base values are typically given
for aircraft in "new" condition, "average half-life" condition, or in a
specifically described condition unique to a single aircraft at a specific
time. An "average" aircraft is an operable airworthy aircraft in average
physical condition and with average accumulated flight hours and cycles, with
clear title and standard unrestricted certificate of airworthiness, and
registered in an authority which does not represent a penalty to aircraft value
or liquidity, with no damage history and with inventory configuration and level
of modification which is normal for its intended use and age. AISI assumes
average condition unless otherwise specified in this report. "Half-life"
condition assumes that every component or maintenance service which has a
prescribed interval that determines its service life, overhaul
HEADQUARTERS, 26072 MERIT CIRCLE, SUITE 123, LAGUNA HILLS, CA 92653
TEL: 949-582-8868 FAX: 949-5892-8887 E-MAIL: [email protected]
<PAGE> 3
09 May 2000
AISI File No. A0S033BVO
Page -2-
interval or interval between maintenance services, is at a condition which is
one-half of the total interval. It should be noted that AISI and ISTAT value
definitions apply to a transaction involving a single aircraft, and that
transactions involving more than one aircraft are often executed at
considerable and highly variable discounts to a single aircraft price, for a
variety of reasons relating to an individual buyer or seller.
AISI defines 'current market value', which is synonymous with the older term
'fair market value' as that value which reflects the real market conditions,
whether at, above or below the base value conditions. Assumption of a single
unit sale and definitions of aircraft condition, buyer/seller qualifications
and type of transaction remain unchanged from that of base value. Current
market value takes into consideration the status of the economy in which the
aircraft is used, the status of supply and demand for the particular aircraft
type, the value of recent transactions and the opinions of informed buyers and
sellers. Current market value assumes that there is no short term time
constraint to buy or sell.
AISI encourages the use of base values to consider historical trends, to
establish a consistent baseline for long term value comparisons and future
value considerations, or to consider how actual market values vary from
theoretical base values. Base values are less volatile than current market
values and tend to diminish regularly with time. Base values are normally
inappropriate to determine near term values. AISI encourages the use of current
market values to consider the probable near term value of an aircraft.
AISI determines an 'adjusted market value' by determining the value of known
deviations from half-life condition, which may be better or worse than
half-life condition, and to account for better or worse than average physical
condition, and the inclusion of additional equipment, or absence of standard
equipment. Our opinion of the adjusted base values of the Aircraft are derived
from information and specifications supplied by AerFi Group. No physical
inspection of the Aircraft or their essential records was made by AISI for the
purposes of this report.
2. VALUATION
Adjustments from half life have been applied based on the current maintenance
status of the Aircraft as indicated in the Aircraft Summary Specification
sheets supplied to AISI and in accordance with standard AISI methods.
Adjustments are calculated only where there is sufficient information to do so,
or where reasonable assumptions can be made.
With regard to airframe and gear maintenance, if no time between check/overhaul
(TBO) or time since check/overhaul (TSO) information is provided, and if the
total hours/cycles of the airframe do not exceed the TBO limits then the total
hours/cycles of the airframe are assumed
<PAGE> 4
09 May 2000
AISI File No. A0S033BVO
Page - 3 -
to be the TSO. This is typical of newer aircraft. If no information was
provided and if the TSO could not be calculated, then half life is assumed.
With regard to the engines, on aircraft where all engines total cycles equal
the total cycles of the airframe, the engine's life limit CSOs and overhaul
CSOs are assumed to be the same as the total cycles of the airframe. This is
typical of newer aircraft. Where this assumption can not be made, the engines
are considered to be in half life condition.
All hours and cycle information provided for airframe, C Check, D Check, gear
and engines have been projected from the Aircraft Summary Specification sheet
dates to 30 April 2000 based on a daily utilization factor calculated for each
aircraft where needed.
It is our considered opinion that the half life and adjusted base values of the
Aircraft are as follows in Table I subject to the assumptions, definitions, and
disclaimers herein.
Unless otherwise agreed by Aircraft Information Services, Inc. (AISI) in
writing, this report shall be the sole use of the client/addressee. This report
is offered as a fair and unbiased assessment of the subject aircraft or
equipment. AISI has no past, present, or anticipated future interest in the
subject aircraft or equipment. The conclusions and opinions expressed in this
report are based on published information, information provided by others,
reasonable interpretations and calculations thereof and are given in good faith.
Such conclusions and opinions are judgments that reflect conditions and values
which are current at the time of this report. The values and conditions reported
upon are subject to any subsequent change. AISI shall not be liable to any party
for damages arising out of reliance or alleged reliance on this report, or for
any parties action or failure to act as a result of reliance or alleged reliance
on this report.
Sincerely,
AIRCRAFT INFORMATION SERVICES, INC.
/s/ John D. McNicol
--------------------------------
John D. McNicol
Vice President
Appraisals & Forecasts
<PAGE> 5
ATTACHMENT I -- AERCO FLEET
AISI File A0S033BVO
Report Date 09 May 2000
Values as of 30 April 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
Half Life Adjusted
Base Value Base Value
Apr 2000 Apr 2000
No Type MSN DOM Engine MTOW US Dollars US Dollars
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 A300B4-200 240 May-83 | CF6-50C2 363,760 $ 9,010,000 $ 9,260,000
2 A320-200 85 Feb-90 | CFM56-5A1 162,200 $ 25,970,000 $ 26,080,000
3 A320-200 299 Apr-92 | CFM56-5A3 166,450 $ 28,770,000 $ 28,210,000
4 A320-200 362 Nov-92 | V2500-A1 166,450 $ 27,530,000 $ 26,990,000
5 A320-200 391 Feb-93 | CFM56-5A3 169,757 $ 30,290,000 $ 30,330,000
6 A320-200 403 Dec-93 | CFM56-5A1 158,731 $ 29,550,000 $ 29,520,000
7 B737-300 24465 Jul-89 | CFM56-3B1 135,000 $ 20,510,000 $ 20,660,000
8 B737-300 24677 Mar-90 | CFM56-3B1 135,000 $ 21,390,000 $ 21,710,000
9 B737-300 24908 Mar-91 | CFM56-3C1 135,500 $ 23,100,000 $ 23,940,000
10 B737-300 24909 Apr-91 | CFM56-3B1 139,500 $ 22,480,000 $ 22,790,000
11 B737-300 26068 Jun-92 | CFM56-3C1 139,000 $ 24,530,000 $ 25,190,000
12 B737-400 23868 Oct-88 | CFM56-3C1 143,500 $ 22,400,000 $ 22,550,000
13 B737-400 23979 Jan-89 | CFM56-3C1 143,500 $ 23,530,000 $ 23,580,000
14 B737-400 24685 May-90 | CFM56-3C1 150,000 $ 24,440,000 $ 25,060,000
15 B737-400 24904 Feb-91 | CFM56-3C1 150,000 $ 25,320,000 $ 25,860,000
16 B737-400 25764 Jun-92 | CFM56-3C1 143,500 $ 26,110,000 $ 25,600,000
17 B737-400 26066 Jun-92 | CFM56-3C1 150,000 $ 26,400,000 $ 26,260,000
18 B737-400 25765 Jul-92 | CFM56-3C1 143,500 $ 26,110,000 $ 25,720,000
19 B737-500 26067 Jun-92 | CFM56-3C1 133,500 $ 20,610,000 $ 21,270,000
20 B747-200 22496 Oct-81 | JT9D-7Q 814,000 $ 26,170,000 $ 26,540,000*
21 B757-200Etop 26152 Aug-92 | RB211-535E4 230,000 $ 40,140,000 $ 40,430,000
22 B757-200Etop 26153 Aug-92 | RB211-535E4 255,000 $ 41,640,000 $ 42,180,000
23 B757-200Etop 26158 Feb-93 | RB211-535E4 255,000 $ 43,750,000 $ 43,700,000
24 B767-300ER 24999 Feb-91 | PW4060 407,000 $ 59,950,000 $ 59,600,000
25 B767-300ER 24947 Mar-91 | PW4060 407,000 $ 60,150,000 $ 60,180,000
26 DC-8-71F 46064 Apr-69 | CFM56-2C1 325,000 $ 14,550,000 $ 14,380,000
27 DC-8-71F 46040 May-69 | CFM56-2C1 328,000 $ 14,640,000 $ 15,080,000
28 F100 11341 Aug-91 | TAY650-15 98,000 $ 13,450,000 $ 14,280,000
29 F100 11351 Sep-91 | TAY650-15 98,000 $ 13,390,000 $ 13,130,000
30 F100 11350 Apr-92 | TAY650-15 98,000 $ 14,490,000 $ 14,280,000
31 MD-83 49627 Apr-89 | JT8D-219 160,000 $ 20,740,000 $ 20,460,000
32 MD-83 49790 Apr-89 | JT8D-219 160,000 $ 20,740,000 $ 20,810,000
33 MD-83 49952 Dec-91 | JT8D-219 160,000 $ 22,560,000 $ 22,180,000
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
Totals $864,410,000 $867,810,000
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* replaced by scrap value
<PAGE> 6
[LOGO] AIRCRAFT
INFORMATION
SERVICES, INC.
Mr. Tom Ashe
AerFi Group
Aviation House
Shannon
Co Clare
Ireland
Half Life and Adjusted Base Value Opinion
33 Aircraft - AerFi Fleet
AISI File No.: A0S034BVO
Date: 09 May 2000
Values as of: 30 April 2000
HEADQUARTERS, 26072 MERIT CIRCLE, SUITE 123, LAGUNA HILLS, CA 92653
TEL: 949-582-8888 FAX: 949-582-8887 E-MAIL: [email protected]
<PAGE> 7
[LOGO] AIRCRAFT
INFORMATION
SERVICES, INC.
09 May 2000
Mr. Tom Ashe
AerFi Group
Aviation House
Shannon
Co Clare
Ireland
Subject: Half Life and Adjusted Base Value Opinion - 35 Aircraft,
AISI File number: A0S034BVO
Dear Mr. Ashe:
In response to your request, Aircraft Information Services, Inc. (AISI) is
pleased to offer our opinion of the half life and adjusted base values of the
Fleet of 35 Aircraft as identified in Table I (the 'Aircraft').
1. METHODOLOGY AND DEFINITIONS
The standard terms of reference for commercial aircraft value are 'half-life
base market value' and 'half-life current market value' of an 'average'
aircraft. Base value is a theoretical value that assumes a balanced market
while current market value is the value in the real market; both assume a
hypothetical average aircraft condition. AISI value definitions are consistent
with the current definitions of the International Society of Transport Aircraft
Trading (ISTAT), those of 01 January 1994. AISI is a member of that
organization and employs an ISTAT Certified and Senior Certified Aircraft
Appraiser.
AISI defines a 'base value' as that of a transaction between equally willing
and informed buyer and seller, neither under compulsion to buy or sell, for a
single unit cash transaction with no hidden value or liability, and with supply
and demand of the sale item roughly in balance. Base values are typically given
for aircraft in 'new' condition, 'average half-life' condition, or in a
specifically described condition unique to a single aircraft at a specific
time. An 'average' aircraft is an operable airworthy aircraft in average
physical condition and with average accumulated flight hours and cycles, with
clear title and standard unrestricted certificate of airworthiness, and
registered in an authority which does not represent a penalty to aircraft value
or liquidity, with no damage history and with inventory configuration and level
of modification which is normal for its intended use and age. AISI assumes
average condition unless otherwise specified in this report. 'Half-life'
condition assumes that every component or maintenance service which has a
prescribed interval that determines its service life, overhaul
HEADQUARTERS, 26072 MERIT CIRCLE, SUITE 123, LAGUNA HILLS, CA 92653
TEL: 949-582-8888 FAX: 949-582-8887 E-MAIL: [email protected]
<PAGE> 8
09 May 2000
AISI File No. A0S034BVO
Page -2-
interval or interval between maintenance services, is at a condition which is
one-half of the total interval. It should be noted that AISI and ISTAT value
definitions apply to a transaction involving a single aircraft, and that
transactions involving more than one aircraft are often executed at
considerable and highly variable discounts to a single aircraft price, for a
variety of reasons relating to an individual buyer or seller.
AISI defines a 'current market value', which is synonymous with the older term
'fair market value' as that value which reflects the real market conditions,
whether at, above or below the base value conditions. Assumption of a single
unit sale and definitions of aircraft condition, buyer/seller qualifications
and type of transaction remain unchanged from that of base value. Current
market value takes into consideration the status of the economy in which the
aircraft is used, the status of supply and demand for the particular aircraft
type, the value of recent transactions and the opinions of informed buyers and
sellers. Current market value assumes that there is no short term time
constraint to buy or sell.
AISI encourages the use of base values to consider historical trends, to
establish a consistent baseline for long term value comparisons and future
value considerations, or to consider how the actual market values vary from
theoretical base values. Base values are less volatile than current market
values and tend to diminish regularly with time. Base values are normally
inappropriate to determine near term values. AISI encourages the use of current
market values to consider the probable near term value of an aircraft.
AISI determines an 'adjusted market value' by determining the value of known
deviations from half-life condition, which may be better or worse than
half-life condition, and to account for better or worse than average physical
condition, and the inclusion of additional equipment, or absence of standard
equipment. Our opinion of the adjusted base values of the Aircraft are derived
from information and specifications supplied by AerFi Group. No physical
inspection of the Aircraft or their essential records was made by AISI for the
purposes of this report.
2. VALUATION
Adjustments from half life have been applied based on the current maintenance
status of the Aircraft as indicated in the Aircraft Summary Specification sheets
supplied to AISI and in accordance with standard AISI methods. Adjustments are
calculated only where there is sufficient information to do so, or where
reasonable assumptions can be made.
With regard to airframe and gear maintenance, if no time between check/overhaul
(TBO) or time since check/overhaul (TSO) information is provided, and if the
total hours/cycles of the airframe do not exceed the TBO limits then the total
hours/cycles of the airframe are assumed
<PAGE> 9
09 May 2000
AISI File No. A0S034BVO
Page -3-
to be the TSO. This is typical of newer aircraft. If no information was
provided and if the TSO could not be calculated, then half life is assumed.
With regard to the engines, on aircraft where all engines total cycles equal
the total cycles of the airframe, the engine's life limit CSOs and overhaul
CSOs are assumed to be the same as the total cycles of the airframe. This is
typical of newer aircraft. Where this assumption can not be made, the engines
are considered to be in half life condition.
All hours and cycle information provided for airframe, C Check, D Check, gear
and engines have been projected from the Aircraft Summary Specification sheet
dates to 30 April 2000 based on a daily utilization factor calculated for each
aircraft where needed.
It is our considered opinion that the half life and adjusted base values of the
Aircraft are as follows in Table I subject to the assumptions, definitions, and
disclaimers herein.
Unless otherwise agreed by Aircraft Information Services, Inc. (AISI) in
writing, this report shall be for the sole use of the client/addressee. This
report is offered as a fair and unbiased assessment of the subject aircraft or
equipment. AISI has no past, present, or anticipated future interest in the
subject aircraft or equipment. The conclusions and opinions expressed in this
report are based on published information, information provided by others,
reasonable interpretations and calculations thereof and are given in good faith.
Such conclusions and opinions are judgments that reflect conditions and values
which are current at the time of this report. The values and conditions reported
upon are subject to any subsequent change. AISI shall not be liable to any party
for damages arising out of reliance or alleged reliance on this report, or for
any parties action or failure to act as a result of reliance or alleged reliance
on this report.
Sincerely,
AIRCRAFT INFORMATION SERVICES, INC.
/s/ John D. McNicol
--------------------------------
John D. McNicol
Vice President
Appraisals & Forecasts
<PAGE> 10
ATTACHMENT I -- AERFI FLEET
AISI File A0S034BVO
Report Dated 09 May 2000
Values as of 30 April 2000
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
Half Life Adjusted
Base Value Base Value
Apr 2000 Apr 2000
No Type MSN DOM Engine MTOW US Dollars Us Dollars
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 A320-200 204 Jul-91 CFM56-5A1 149,913 $26,510,000 $25,900,000*
2 A320-200 211 Jul-91 CFM56-5A1 149,913 $26,510,000 $25,910,000*
3 A320-200 354 Oct-92 V2500-A1 169,703 $27,680,000 $27,940,000
4 A320-200 411 Apr-93 V2500-A1 169,703 $29,050,000 $29,310,000
5 A320-200 934 Jan-99 V2527-A5 162,040 $41,100,000 $42,480,000
6 A320-200 1041 Jul-99 CFM56-5B4/P 162,040 $41,350,000 $43,910,000*
7 A321-200 1207 Apr-00 V2533-A5 196,200 $53,450,000 $56,450,000
8 B737-300 23345 Dec-85 CFM56-3B1 130,000 $17,450,000 $17,170,000
9 B737-300 24834 Jul-90 CFM56-3C1 137,000 $22,540,000 $22,790,000
10 B737-300 24856 Aug-90 CFM56-3C1 137,000 $22,540,000 $22,830,000
11 B737-300 25041 Mar-91 CFM56-3B2 134,400 $22,910,000 $23,550,000
12 B737-300 26440 Mar-92 CFM56-3B2 139,500 $24,220,000 $23,340,000
13 B737-300 26442 May-92 CFM56-3B2 139,500 $24,220,000 $23,840,000
14 B737-300 25604 Nov-92 CFM56-3C1 135,000 $24,410,000 $23,790,000
15 B737-300 28733 Dec-97 CFM56-3C1 139,500 $32,470,000 $34,510,000*
16 B737-300 28734 Dec-97 CFM56-3C1 139,500 $32,470,000 $34,240,000*
17 B737-300QC 24021 Nov-88 CFM56-3B2 135,000 $21,800,000 $22,090,000
18 B737-400 24270 May-89 CFM56-3C1 149,910 $23,810,000 $24,100,000
19 B737-400 24271 Jun-89 CFM56-3C1 149,910 $23,810,000 $24,210,000
20 B737-400 24901 May-90 CFM56-3C1 149,940 $24,690,000 $25,190,000
21 B737-400 25594 Feb-92 CFM56-3C1 150,000 $26,660,000 $27,360,000
22 B737-400 27074 May-92 CFM56-3C1 149,940 $26,650,000 $27,110,000
23 B737-500 24651 Apr-90 CFM56-3C1 136,000 $18,870,000 $19,390,000
24 B737-500 25789 Feb-92 CFM56-3C1 127,500 $20,340,000 $21,060,000
25 B737-500 27155 Mar-93 CFM56-3C1 133,500 $21,760,000 $21,140,000
26 B737-500 27153 Aug-93 CFM56-3C1 133,500 $21,760,000 $21,120,000
27 B737-500 25768 May-95 CFM56-3C1 115,500 $24,100,000 $24,020,000
28 B757-200 28486 May-99 PW2037 235,000 $53,020,000 $55,600,000
29 F100 11320 Apr-91 TAY650-15 98,000 $13,650,000 $13,350,000
30 F100 11322 Jun-91 TAY650-15 98,000 $13,650,000 $13,480,000
31 MD82 49570 Feb-88 JT8D-217C 149,500 $18,730,000 $19,180,000
32 MD82 49931 Aug-90 JT8D-219 149,500 $20,680,000 $20,230,000
33 MD82 49932 Sep-90 JT8D-219 149,500 $20,680,000 $20,280,000
34 MD82 49905 Oct-90 JT8D-219 149,500 $20,680,000 $20,140,000
35 MD82 53245 Apr-92 JT8D-219 149,500 $22,640,000 $22,230,000
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
TOTALS $906,860,000 $919,240,000
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*excluded
