EXHIBIT

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Business Aviation Safety Brief

Summary of Global Accident Statistics

1998-2002

Issue NO.2

March 10,

2004
Business A viation Safety Brief March 10, 2004

Contents

1.0 Introduction 3

2.0 The Business Aviation Community

2.1 Number of Turbine Aircraft

2.2 Number of Flight Hours

2.3 Number of Departures

2.4 Organization of the Community

5

5

5

6

6

3.0 Business Aircraft Global Accident Data

3.1 Accidents by Operator Type

3.2 Accident Summary by Phase of Flight

7

7

8

4.0 Global Accident Rate Data

4.1 Accident Rate by Aircraft Type

4.2 Accident Rate by Operator Type

4.3 Accident Rate by Departures

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9

9

10

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

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

1.0 Introduction

Business Aviation has established a record as one of the world's safest forms of transportation.

Professionally flown aircraft of all sizes are operated on unscheduled routes to all corners of

the globe, yet the safety record continues to be excellent in spite of the 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, as well as through monitoring and analysing safety information to facilitate 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 at the 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

to develop 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 of the world, including data for each aircraft type.

This Business Aviation Safety Brief covers a five 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. In addition, the IBAC Governing Board has determined that the Safety Brief will be

scrutinized from time to time by indepen.dent organizations and feedback will be considered by

IBAC's POC and the Brief will be amended for Issue NO.3 in 2005.

This summary data includes all accidents involving aircraft when used in conducting business

operations. It does not include accidents of business aircraft when used in airshows and other

non-business related flying.

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

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Business A viation Safety Brief March 10, 2004

2.0 Business Aviation Community

2.1 Number of Turbine Aircraft

The Breiling Report contains data covering a five year period for the global population and the

distribution of aircraft by region. A summary of the aircraft population in 2002, the last year

covered by the report, is as follows:

9,995

II Turbine Business AlC 22,576

Table 2.1a

Analysis

Business aircraft in North America represent 72% of the global fleet. South and Central America have approximately 10% and Europe 10% of the world's fleet. Other regions account for the

remaining 8% of the fleet.

2.2 Number of Flight Hours

The 2002 summarized flight hour totals are as follows:

8,953,510

4,187,280

II Turbine Business AlC

Table 2.2a

Analysis

Flying hours in North America represents 72% of the total, Europe 10%, Central/South America

10%, and the rest of the world 8%.

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March 10, 2004 Business A viation Safety Brief

2.3 Number of Departures

The number of business aviation departures in the 2002 year is as follows:

II Turbine 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 of jet and turboprop aircraft.)

2.4 Organization of the Community

Business Aircraft operations are classified into three (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 to fly the aircraft.

3. Owner Operated

Aircraft flown for business purposes by the owner of the 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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Business A viation Safety Brief March 10, 2004

3.0 Business Aircraft Global Accident Data

(5 year period 1998 - 2002)

3.1 Accidents by Operator Type

A summary of the total accidents over five (5) years by type of operator is as follows:

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 in the commercial category, where operations

are governed by commercial regulations (such as FAA Part 135 and JAR OPS 1). The next

most frequent number of accidents occurs with aircraft flown by business persons. Accidents of

corporate aircraft remain rare.

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March 10, 2004 Business A vietion Safety Brief

3.2 Accident Summary by Phase of Flight

Five (5) year totals by phase of flight are as follows:

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 a substantive decrease in the percentage of

taxi accidents, and a notable decrease in accidents in the landing phase, although landing accidents remain as the most prevalent.

The trend indicates an increase in the number of accidents occurring in the approach phase.

The percentage of accidents in the climb phase has also increased substantively for turbo prop

aircraft. The distribution of accidents in the other phases has remained relatively unchanged.

(Note: Supplementary data collected by Robert Breiling over a 35 year 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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Business A viation Safety Brief March 10, 2004

4.0 Global Accident Rate Data

4.1 Accident Rate by Aircraft Type

The accident rate per 100,000 flight hours for each year over a five year period, as well as for

the total, is as follows:

Business Jets 0.55 0.16 0.62 0.18 0.43 0.17 0.58 0.20 0.50 0.10 0.53 0.16

Turbo props 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 Bus Ale 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

4.2 Accident Rate by Operator Type

Global data for the numbers of aircraft in each of the 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, it was not possible to calculate, without some error, the rate of each category of operation. Additionally, the operational status of a single airframe may legally vary from

flight to flight (i.e., an aircraft may be commercial on one flight and private on a flight made later

on the same day or vice versa).

Nevertheless, by applying US data relevant to the division between categories of operator, and

by making the assumption that the division is relatively similar for the rest of the world, an estimate of the rate by operator type can be made. Given that the North American data represents

approximately 72% of the global total, it is unlikely that the distortion generated by the assumption will be very large.

The percentage of flight hours for each of the three categories in the USA is as follows:

Commercial (Air Taxi)

Corporate

Owner-operated

Total

22.6%

38.3%

39.1%

100.0% (Averaged over 4 years)
March 10, 2004 Business A viation Safety Brief

Assuming a similar division globally, the accident rates per 100,000 flight hours are as follows

(based on data over 5 years):

Commercial 9,248,590 230 77 2.48 0.83 (Air Taxi)

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

in the commercial sector warrants increased attention by the business aviation community.

4.3 Accident Rate by Departures

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 of aircraft en-route are rare except for flights in low level flight in marginal visual conditions. Accident rates per departure, or flight segment or cycle, therefore provide more realistic safety correlations.

The accident rate per 100,000 departures is as follows:

Large Jet Aircraft 3,046,816 13 3 0.42 0.09

Medium Jet Aircraft 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

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Business A viation Safety Brief March 10, 2004

Large Turbo Prop 627,459 54 22 8.61 3.50

Medium Turbo Prop 12,313,651 223 80 1.81 0.65

Light Turbo Prop 587,830 16 7 2.72 1.19

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 by type of operation can be calculated as follows:

Commercial 6,337,396 230 77 3.62 1.21 (Air Taxi)

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 11
March 10, 2004 Business A viation Safety Brief

If it is further assumed that the distribution between operator types is proportional for jets 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 (Air Taxi)

Corporate 5,861,645 24 5 0.40 0.08

Owner-operated 5,984,081 17 7 0.28 0.11

All Jet Aircraft 15,304,556 112 34 0.73 0.22

Table 4.3e

Analysis

A number of assumptions have been made related to the 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 of the 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 of 0.08 accidents per 100,000 departures compares favourably with the scheduled airline rate of 0.112 for hull loss and/or fatal accidents per 100,000 departures of jet aircraft over 60,000 Ibs and 0.241 for non-scheduled and

all other operations of jet aircraft over 60,000 Ibs (Source: Boeing - Statistical Summary of

Commercial Jet Airplane Accidents, Worldwide Operations 1959-2002). The rate for scheduled

operations of jet aircraft as published by ICAO has shown a steady decrease year over year

with the fatal accident rate of scheduled jet airline operations in 2002 being .081.

The data in this Brief demonstrates that there is room for improvement in the commercial business aviation sector.

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