### EXHIBIT 

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Business Aviation Safety Brief Summary of Global Accident Statistics

1998-2002

Issue NO.2

March 10, 2004Business Aviation Safety Brief March 10, 2004 

## Contents
1.0 Introduction 3 2.0The Business Aviation Community 2.1 Number ofTurbine Aircraft 2.2 Number of Flight Hours 2.3 Number of Departures 2.4 Organization ofthe Community 

### 5 5 5 6 6 3.0 Business Aircraft Global Accident Data 3.1 Accidents byOperator Type 3.2Accident Summary by Phase of Flight 

### 7 7 

### 8 4.0 Global Accident Rate Data 4.1 Accident Rate byAircraft Type 4.2 Accident Rate byOperator Type 4.3Accident Rate by Departures 9 9 9 

### 10

International Business Aviation Council (IBAC) Page 1March 10,2004 Business Aviation Safety Brief

Page 2 International Business Aviation Council (IBAC)Business Aviation Safety Brief March 10, 2004 

## 1.0 Introduction
Business Aviation has established a record as one ofthe world's safest forms oftransportation. Professionally flown aircraft of all sizes are operated on unscheduled routes to all corners of the globe, yetthe safety record continues to beexcellent inspite ofthe very challenging operating environment. The exemplary safety record of business aviation can be attributed to professionalism and attention to safe operating practices. The business aviation community promotes safety through industry standards and good training, aswell asthrough monitoring and analysing safety information tofacilitate continuous improvement. The business aviation representative associations assist operators by providing safety data and programs in their respective countries. The Council representing the national and regional associations atthe global level, the International Business Aviation Council (IBAC), has in turn developed a program to collect and analyse worldwide information. To that end, IBAC has contracted with Robert Breiling and Associates todevelop global data on business aircraft accidents. Summary information presented in this Brief is taken from the analysis conducted by Robert Breiling and Associates in 2003. Breiling's detailed Report contains information on accidents from all regions oftheworld, including data for each aircraft type. This Business Aviation Safety Brief covers afive year period from 1998 to 2002. IBAC will update the Brief annually and the IBAC Planning and Operations Committee (POC) and Flight Operations and Safety Work Group will review the information continuously to determine useful trend data. Inaddition, the IBAC Governing Board has determined that the Safety Brief will be scrutinized from time totime by indepen.dent organizations and feedback will be considered by IBAC's POC and the Briefwill beamended for Issue NO.3in2005. This summary data includes all accidents involving aircraft when used in conducting business operations. Itdoes not include accidents of business aircraft when used in airshows and other non-business related flying.

International Business Aviation Council (IBAC) Page 3March 10, 2004 Business Avieiion Safety Brief

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## 2.0 BusinessAviation Community 2.1 Number ofTurbineAircraft The Breiling Report contains data covering afive year period forthe global population and the distribution of aircraft by region. A summary of the aircraft population in 2002, the last year covered bythe report, isasfollows:

9,995 22,576 IITurbine Business AlC

Table 2.1a Analysis Business aircraft in North America represent 72% ofthe global fleet. South and Central America have approximately 10% and Europe 10% ofthe world's fleet. Other regions account forthe remaining 8% ofthe fleet. 

## 2.2 Number of Flight Hours The 2002 summarized flight hourtotals are asfollows:

8,953,510 4,187,280 IITurbine Business AlC

Table 2.2a Analysis Flying hours in North America represents 72% ofthe total, Europe 10%, Central/South America 10%, andthe restofthe world 8%.

International Business Aviation Council (IBAC) Page 5March 10, 2004 Business Aviation Safety Brief 

## 2.3 Number of Departures The number of business aviation departures inthe 2002 year isas follows:

IITurbine Business NC 6,153,357 2,667,057

Table 2.3a (Note: These are derived figures based on flight hours and sector durations typical for each category ofjet and turboprop aircraft.) 

## 2.4 Organization ofthe Community Business Aircraft operations are classified intothree (3) separate categories: 1. Business Aviation Commercial Aircraft flown for business purposes by an operator having a commercial operating certificate (generally on-demand charters). 2. Corporate Non-commercial operations with professional crews employed toflythe aircraft. 3. Owner Operated Aircraft flown for business purposes bythe owner ofthe business. (Note: Consult IBAC for formal definitions of the three categories. Two additional classifications are included in the Breiling Report, namely Government (public operations) and Manufacturer aircraft. These are not, by their use, considered to be "business aircraft", but are included in the data for completeness.)

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## 3.0 Business Aircraft Global Accident Data

(5year period 1998- 2002) 

## 3.1 Accidents byOperator Type Asummary ofthe total accidents overfive (5)years bytype ofoperator isasfollows:

Commercial 61 (54.5%) 20 (58.5%) 12.2 4.0 Corporate 24 (21.4%) 5 (14.7) 4.8 1.0 Owner Operated 17(15.2%) 7 (20.6%) 3.4 1.4 Government 4 (3.6%) 2 (5.9%) 0.8 0.4 Manufacturer 6 (5.4%) 0 1.2 0 Table 3.1a

Commercial 169 (57.6%) 57 (52.3%) 33.6 11.4 Corporate 25 (8.5%) 10 (9.2%) 5.0 2.0 Owner Operated 88 (30.0%) 38 (34.9%) 17.6 7.6 Government 10(3.4%) 4 (3.7%) 2.0 0.8 Manufacturer 1 (.03%) 0 0.2 0 Table 3.1b Analysis The majority of business aircraft accidents occur inthe commercial category, where operations are governed by commercial regulations (such as FAA Part 135 and JAR OPS 1). The next most frequent number ofaccidents occurs with aircraft flown by business persons. Accidents of corporate aircraft remain rare.
International Business Aviation Council (IBAG) Page 7March 10,2004 Business Avietion Safety Brief 

## 3.2Accident Summary byPhase of Flight Five (5)year totals byphase offlight are asfollows:

Business Jets 5 17 9 5 4 3 20 57 120

4.2% 14.2% 7.5% 4.2% 3.3% 2.5% 16.7% 47.5% 100% Turbo Props 15 23 38 37 19 12 80 101 325

4.6% 7.1% 11.7% 11.4% 5.8% 3.7% 24.6% 31.1% 100% Table 3.2a Analysis The trend over a period of 35 years demonstrates asubstantive decrease inthe percentage of taxi accidents, and a notable decrease inaccidents inthe landing phase, although landing accidents remain asthe most prevalent. The trend indicates an increase in the number of accidents occurring in the approach phase. The percentage ofaccidents inthe climb phase has also increased substantively for turbo prop aircraft. The distribution ofaccidents inthe other phases has remained relatively unchanged. (Note: Supplementary data collected by Robert Breiling over a35year period was used to develop this trend.)

90 80 70 60 50 40 30 20 10 o .Jets .Turbo Props

Taxi TIO Climb Cruise Desc't Man'v App Land

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## 4.0 Global Accident Rate Data 4.1 Accident Rate byAircraft Type The accident rate per 100,000 flight hours for each year over afive year period, as well as for the total, isasfollows:

BusinessJets 0.55 0.16 0.62 0.18 0.43 0.17 0.58 0.20 0.50 0.10 0.53 0.16 Turboprops 1.40 0.62 1.62 0.46 1.72 0.61 1.29 0.49 1.31 0.55 1.47 0.53 All BusAle 0.98 0.40 1.12 0.32 1.06 0.38 0.92 0.34 0.88 0.31 0.99 0.35 Table 4.1a 

## 4.2Accident Rate byOperator Type Global data for the numbers of aircraft in each ofthe business aviation operational categories (commercial, corporate and owner-operated) proved difficult to obtain as few States collect this information. Similarly, flight hours by type of operation are not available. Due to the lack of good exposure data, itwas not possible to calculate, without some error, the rate of each category ofoperation. Additionally, the operational status ofasingle airframe may legally vary from flight toflight (i.e., an aircraft may becommercial on one flight and private on aflight made later onthe same day orvice versa). Nevertheless, byapplying US data relevant tothe division between categories ofoperator, and by making the assumption that the division is relatively similar for the rest ofthe world, an estimate ofthe rate byoperator type can be made. Given that the North American data represents approximately 72% ofthe global total, itis unlikely that the distortion generated bythe assumption will bevery large. The percentage offlight hours for each ofthethree categories inthe USA isasfollows: Commercial (AirTaxi) Corporate Owner-operated Total 22.6% 38.3% 39.1% 100.0% (Averaged over4years)March 10,2004 Business Aviation Safety Brief

Assuming a similar division globally, the accident rates per 100,000 flight hours are as follows (based on data over 5years):

Commercial 9,248,590 230 77 2.48 0.83 (AirTaxi) Corporate 15,673,494 49 15 0.31 0.09 Owner-operated 16,000,878 109 45 0.68 0.28 All Business Aircraft 40,922,963 405 143 0.98 0.34 Table 4.2a Analysis The accident rates calculated in Table 4.2 include both turbo-prop and jet aircraft. The rate data indicates an excellent level of safety in corporate operations, whereas the accident rates inthe commercial sector warrants increased attention bythe business aviation community. 

## 4.3Accident Rate byDepartures There is a growing trend for organizations reporting safety data to do so using accident rates per number of departures given that safety exposure is greatest during departure and arrival. Accidents ofaircraft en-route are rare except forflights in low level flight in marginal visual conditions. Accident rates perdeparture, orflight segment or cycle, therefore provide more realistic safety correlations. The accident rate per 100,000 departures isasfollows:

Large JetAircraft 3,046,816 13 3 0.42 0.09 Medium JetAircraft 4,536,569 27 9 0.60 0.20 Light Business Jets 7,760,927 72 22 0.93 0.28 All Business Jets 15,344,312 112 34 0.73 0.22 Table 4.3a Page 10 International Business Aviation Council (IBAC)Business Aviation Safety Brief March 10, 2004

22 8.61 Large Turbo Prop 627,459 54 3.50 223 80 1.81 0.65 Medium Turbo Prop 12,313,651 587,830 16 7 2.72 1.19 Light Turbo Prop All Turbo Prop 13,528,940 293 109 2.17 0.81 Table 4.3b

28,873,252 Table 4.3c If an assumption is made that the distribution of departures for operator types of commercial (22.6%), corporate (38.3%) and owner-operated (39.1%) is relatively the same as the distribution between flight hours, the accident rates bytype ofoperation can becalculated asfollows:

Commercial 6,337,396 230 77 3.62 1.21 (AirTaxi) Corporate 10,739,923 49 15 0.45 0.13 Owner-operated 10,964,256 109 45 0.99 0.41 All Business Aircraft 28,041,576 405 143 1.44 0.50 Table 4.3d

International Business Aviation Council (IBAC) Page 11March 10, 2004 Business Aviation Safety Brief

If it isfurther assumed that the distribution between operator types is proportional forjets and turboprops, the accident rate for jet aircraft by operational category can be extrapolated as follows:

Commercial 3,458,830 61 20 1.76 0.57 (AirTaxi) Corporate 5,861,645 24 5 0.40 0.08 Owner-operated 5,984,081 17 7 0.28 0.11 All JetAircraft 15,304,556 112 34 0.73 0.22 Table 4.3e Analysis A number of assumptions have been made related tothe distribution of exposure data, and as a result the data should be used with some caution. Nevertheless, no other rate data is known to exist for worldwide business aviation. The results ofthe extrapolation should be sufficiently accurate to provide a reasonable comparison with accident information from other aviation sectors. The accident rate data demonstrates that corporate aviation has an excellent safety record over the years measured. The corporate jet accident rate of0.08 accidents per 100,000 departures compares favourably with the scheduled airline rate of0.112 for hull loss and/or fatal accidents per 100,000 departures ofjet aircraft over 60,000 Ibs and 0.241 for non-scheduled and all other operations ofjet aircraft over 60,000 Ibs (Source: Boeing - Statistical Summary of Commercial JetAirplane Accidents, Worldwide Operations 1959-2002). The rate for scheduled operations ofjet aircraft as published by ICAO has shown a steady decrease year over year with the fatal accident rate ofscheduled jet airline operations in2002 being .081. The data inthis Brief demonstrates that there is room for improvement inthe commercial business aviation sector.

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