BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

___________________________________________

 ) 

Application of ) 

 ) 

KUZU AIRLINES CARGOA.Ş. ) 

 ) Docket OST-2006-25940 

for an amended Foreign Air Carrier Permit ) 

pursuant to 49 U.S.C. § 41302 ) 

___________________________________________ ) 

APPLICATION OF KUZU HAVAYOLLARІ KARGO TAŞІMACІLІK A.Ş. 

FOR AN AMENDED FOREIGN AIR CARRIER PERMIT 

 _________________________________________ 

Communications with respect to this document should be sent to: 

Joanne W. Young 

David M. Kirstein 

Kirstein & Young, PLLC 

1750 K Street, N.W. 

Suite 200 

Washington, D.C. 20006 

(202) 331-3348 (telephone) 

(202) 331-3933 (facsimile) 

Counsel for 

ULS HAVAYOLLARІ KARGO TAŞІMACІLІK A.Ş. 

 

June 3, 2010 

Notice: Answers supporting or opposing this application must be filed with the 

Department and served upon persons listed above by June 17, 2010. 
BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

___________________________________________

 ) 

Application of ) 

 ) 

KUZU AIRLINES CARGOA.Ş. ) 

 ) Docket OST-2006-25940 

for an amended Foreign Air Carrier Permit ) 

pursuant to 49 U.S.C. § 41302 ) 

___________________________________________ ) 

APPLICATION OF KUZU HAVAYOLLARІ KARGO TAŞІMACІLІK A.Ş. 

FOR AN AMENDED FOREIGN AIR CARRIER PERMIT 

 ___________________________________ 

Pursuant to 49 U.S.C. §§ 40109, and 41301, Sections 211.21 and 215.4 of the 

Department’s regulations, Kuzu Havayollari Kargo Taşimacilik A.Ş.(“Kuzu”) requests 

that the Department issue an amended Foreign Air Carrier Permit to reissue its current 

charter authority in the name of ULS Havayolları Kargo Taşımacılık A.Ş. (“ULS Airlines 

Cargo” or “ULS”). The name change is a result of the sale of Kuzu to new owners as 

described below. Kuzu’s foreign air carrier permit was originally issued by Order 2007-

2-12, February 8, 2007. Kuzu/ULS respectfully requests expedited approval of this 

application. 

In support of this Application, ULS Airlines Cargo states as follows: 

1. ULS is a corporation organized and existing under the laws of the 

Turkish Republic. The full name and address of the head office of the applicant is: 

ULS Havayolları Kargo Taşımacılık A.Ş. 

Çobançeşme Mevkii 29 Ekim Cad. No: 16 

Yenibosna 34197 

İstanbul, Turkey 
Application of KUZU for an Amended Foreign Air Carrier Permit 

Docket OST-2006-25940 

Page 2 of 4 

Phone: +90 (212) 496 02 02 

Fax: +90 (212) 496 02 03 

E-mail: info@uls-global.com

2. The competent Turkish air transport authority having regulatory 

jurisdiction over ULS Airlines Cargo is the Ministry of Transportation Directorate 

General of Civil Aviation (“DGCA”), which is located at: 

Sivil Havacılık Genel Müdürlüğü 

Bosna Hersek Cad. No:5 

06510 Emek 

Ankara, Turkey 

Tel: +90 (312) 203 60 00 

Fax: +90 (312) 212 46 84 

3. On May 21, 2009, Kuzu changed its name to ULS Airlines Cargo. The 

carrier is incorporated and has its principal place of business in Istanbul, Turkey. ULS 

currently has 220 employees and operates full charter, wet lease, and scheduled 

operations with a fleet of four A300-B4 and three A310-300 freighters. 

4. In granting a Foreign Air Carrier Permit to Kuzu, the Department found 

that the carrier had demonstrated financial, managerial, and operational fitness to perform 

foreign air transportation between the United States and Turkey. There have been no 

material changes that would affect those prior fitness findings. 

5. ULS is a national of Turkey and does not receive any financial 

assistance from the Government of Turkey. The voting shares in the Company are 

owned as follows: 

Turkish Citizens 

İsmail Karaarslan – 21 percent 

 Cebrail Karaarslan – 28 percent 
Application of KUZU for an Amended Foreign Air Carrier Permit 

Docket OST-2006-25940 

Page 3 of 4 

 Fatih Ünal Yurdakul – 1.5 percent 

Russian Citizens

 Valery Benaguev – 25 percent 

 Khanun Benaguev – 23.9 percent. 

The shareholders constitute the Board of Directors and they have no interest in other U.S. 

or foreign air carriers, common carriers, or companies engaged in the business of 

aeronautics. Mrs. and Mr. Benaguev are Russian citizens. 

6. Turkish DGCA re-issued Air Operational Certificate (“AOC”) is 

attached as Exhibit A. ULS will renew the AOC prior to its expiration on November 5, 

2010. 

7. ULS’s application is supported by the U.S.-Turkey “Open Skies” Air 

Transport Agreement, signed in Washington March 22, 2000. 

8. ULS will continue to conform to the statutory provisions and to the 

Department’s rules, regulations, and requirements and will accept and abide by all the 

terms, conditions, and limitations the Department normally attaches to the Foreign Air 

Carrier Permit. 

9. The carrier has not been involved in any safety or traffic violations, and 

it has not been involved in any fatal accidents, during the five years preceding this 

application. 

10. Company financials for the two most recent available years are attached 

as Exhibit B. 

11. ULS is subject to the safety and operational rules of the Government of 

the Turkish Republic. Turkey is a contracting party to the Convention on International 
Application of KUZU for an Amended Foreign Air Carrier Permit 

Docket OST-2006-25940 

Page 4 of 4 

Civil Aviation (“ICAO”) and observes all applicable ICAO standards. ULS’s 

maintenance programs continue to comply with ICAO Annexes 1, 6 (Part I), and 7. 

 WHEREFORE, Kuzu respectfully requests that the Department issue an amended 

Foreign Air Carrier Permit in the name of ULS Airlines Cargo and such other relief as it 

may find to be in the public interest to reflect its current name and ownership. 

Respectfully submitted, 

Joanne W. Young 

David M. Kirstein 

Kirstein & Young, PLLC 

1750 K Street, N.W. 

Suite 200 

Washington, D.C. 20006 

(202) 331-3348 (telephone) 

(202) 331-3933 (facsimile) 

Counsel for 

ULS HAVAYOLLARІ KARGO TAŞІMACІLІK A.Ş

June 3, 2010 
CERTIFICATE OF SERVICE 

I hereby certify that I have this 3rd day of June, 2010, served the following 

Application for an Amended Foreign Air Carrier Permit by email on the following 

persons. 

carl.nelson@aa.com 

hershel.kamen@coair.com 

dan.weiss@coair.com 

bkeiner@crowell.com 

lhalloway@crowell.com 

scott.mcclain@delta.com 

sametta.c.barnett@delta.com 

sascha.vanderbellen@delta.com 

dvaughan@kelleydrye.com 

jeffrey.manley@united.com 

bruce.rabinovitz@wilmerhale.com 

howard_kass@usairways.com 

nssparks@fedex.com 

mlbenge@zsrlaw.com 

slachter@lachter-clements.com

msinick@ssd.com 

cdonley@ssd.com 

jrichardson@johnlrichardson.com 

rsilverberg@sgbdc.com 

rpommer@atlasair.com 

kevin.montgomery@polaraircargo.com 

mroller@rollerbauer.com 

matwood@sherblackwell.com 

efaberman@wileyrein.com 

byerlyjr@state.gov 

john.Allen@faa.gov 

________________________ 

Nury A. Turkel 

ULS - Exhibit A

Page 2 of 3
ULS - Exhibit A

Page 3 of 3
I. CURRENT ASSETS 11,572,000.00

A. Liquid Assets 2,203,080.00

1. Cash 147,166.00

2. Cheques Received

3. Banks 2,055,910.00

4. Cheques Given and Payment Orders (-) 

5. Other Liquid Assets

B. Marketable Securities 

1. Share Certificates 

2. Private Sector Bonds and Notes

3. Public Sector Bonds and Notes

4. Other Marketable Securities

5. Provision for Decrease in Value of Marketable Securities (-)

C. Trade Receivables 215,712.00

1. Customers 187,269.00

2. Notes Receivables

3. Rediscount on Notes Receivables (-)

4. Deposits and Guarantees Given 28,442.40

5.Other Commercial Receivables

6. Doubtful Trade Receivables

7. Provision for DoubtfulTrade Receivables (-)

D. Other Receivables 35,815.40

1. Due from Shareholders

2. Due from Affiliates

3. Due from subsidiaries

4. Due from Personnel

5. Other Receivables 35,815.40

6. Rediscounts on Other Notes Receivable (-)

7. Other Doubtful Receivables

8. Provision for Other Doubtful Receivables (-)

E. Inventories 8,037,330.00

1. Raw Material and Supplies 

2. Semi - finished Goods in Production

3. Finished Goods

4. Merchandise

5. Technic Invertories 7,884,580.00

6. Other Inventories 

7. Provision for Inventories (-)

8. Advances Given For Purchases 152,750.00

ULS AIRLINES CARGO

DETAILED BALANCE SHEET

ASSETS

CURRENT PERIOD

31/12/2008

(US Dollars)

ULS - Exhibits B

Page 1 of 13
F. Contract Progress Costs

1. Contract Progress Costs

2.Advances Given to Sub-Contractors

G. Prepaid Expenses and Income Accruals

1. Prepaid Expenses for Future Months

2. Income Accruals

H. Other Current Assets 1,080,090.00

1. Deferred VAT

2. Deductible VAT

3. Other VAT

4. Prepaid Taxes and Funds 661,192.00

5. Work Advances 110,971.00

6. Advances to Personnel 99,683.80

7. Inventory Shortages

8. Other Current Assets

9. Provision for Other Current Assets (-)

TOTAL OF CURRENT ASSETS

II. LONG TERM ASSETS 34,567,800.00

A. Trade Receivables 6,271,000.00

1. Customers

2. Notes Receivables

3. Rediscount on Notes Receivables (-)

4. Deposits and Guarantees Given 6,271,000.00

5. Provision for Doubtful Receivables (-)

B. Other Receivables 

1. Due from Shareholders

2. Due from Affiliates

3. Due from subsidiaries

4. Due from Personnel

5. Other Receivables

6. Rediscounts on Other Notes Receivable (-)

7. Provision for Other Doubtful Receivables (-)

C. Financial Fixed Assets

1. Long Term Securities 

2. Decrease in Value of Securities (-)

3. Affiliates

4. Capital Commitments for Affiliates (-)

5. Decrease in Value of Affiliates Shares (-)

6. Subsidiaries

7. Capital Commitments for Subsidiaries (-)

8. Decrease in Value of Subsidiaries Shares

9. Other Financial Fixed Assets

10. Decrease in Value of Other Financial Fixed Assets (-)

D. Tangible Fixed Assets 23,165,800.00

1. Land

2. Land Improvements

3. Buildings

ULS - Exhibits B

Page 2 of 13
4. Plant, Machinery and Equipment 10,447,800.00

5. Motor Vehicles 22,275,500.00

6. Furniture and Fixtures 656,066.00

7. Other Tangible Fixed Assets

8. Accumulated Depreciation (-) -11,976,600.00 

9. Construction in Progress 1,763,010.00

10. Advances Given

E. Intangible Assets 217,055.00

1. Rights 201,454.00

2. Goodwill

3. Establishment and Formation Expenses 3,943.11

4. Research and Development Expenses

5. Special Cost 489,823.00

6. Other Intangible Fixed Assets

7. Accumulated Amortization (-) -478,165.00 

8. Advances to Suppliers

F. Assets Subject to Amortization

1. Exploration / Research Expenses

2. Preparation and Development Expenses

3. Other Amortizable Assets

4. Accumulated Amortization (-)

5. Advances to Suppliers

G. Prepaid Expenses and Accrued Income 4,913,970.00

1. Prepaid Expenses for Future Years 4,913,970.00

2. Income Accruals

H. Other Fixed Assets 

1. Deductible VAT In Future Years 

2. Other VAT

3. Inventories for Future Years

4. Inventories and Tangible Fixed Assets to be Sold

5. Prepaid Expenses and Funds

6. Other Fixed Assets

7. Decrease in Value of Stocks (-)

8. Accumulated Depreciation (-)

TOTAL OF ASSETS 46,139,800.00

I. SHORT TERM LIABILITIES 10,905,700.00

A. Financial Liabilities 

1. Bank Loans

2.Financial Leasing Liabilitties

3.Deferred Financial Leasing Liabilitties

2. Current Maturities of Long Term Credits and Accrued Interest

3. Current Maturities of Bonds and Accrued Interest

4. Bonds and Notes Issued

5. Other Securities Issued

LIABILITIES

CURRENT PERIOD

31/12/2008

ULS - Exhibits B

Page 3 of 13
6. Other Difference of Securities Issued (-)

7. Other Financial Liabilities

B. Trade Payables 8,739,010.00

1. Suppliers 8,088,880.00

2. Notes Payables

3. Rediscount on Notes Payables (-)

4. Deposits and Guarantees Received 521,250.00

5. Other Trade Payables 128,884.00

C. Other Liabilities 24,721.80

1. Due to Shareholders

2. Due to Affiliates

3. Due to subsidiaries

4. Due to Personnel

5. Other Liabilities 24,721.80

6. Rediscounts on Other Notes Payable (-)

D. Advances Received 894,676.00

1.Advances From Customers 894,676.00

2.Other Advances Received 

E. Contract Progress Income 

1. Contract Progress Income 

F. Taxes Payable and Other Fiscal Liabilities 612,466.00

1. Taxes and Funds Payable 317,660.00

2. Social Security Withholdings Payable 294,806.00

3. Overdue, Deferred or Restructured Taxes and Other Fiscal Liabilities

4. Other Fiscal Liabilities Payable

G. Provisions for Liabilities and Expenses 489,269.00

1.Provisions for Income Taxes and Other Legal Liabilities on Profit (-)

2.Prepaid Income Taxes and Other Legal Liabilities on Profit (-)

3. Provisions for Termination Indemnities

4.Reserve For Costs 489,269.00

5. Provisions for Other Debts and Liabilities

H. Income Relating to Future Months and Expense Accruals 145,538.00

1. Income Relating to Future Months

2. Expense Accruals 145,538.00

I. Other Short Term Liabilities 

1.Collected VAT

2. Other VAT

3.Head Office And Branch Current Accounts 

4. Inventory Overages

5 Other Short Term Liabilities

TOTAL OF SHORT TERM EXTERNAL RESOURCES 10,905,700.00

II. LONG TERM LIABILITIES 12,852,500.00

A. Financial Liabilities 12,015,300.00

1.Bank Loans 1,220,480.00

2.Long Term Other Financial Liabilitties 12,148,500.00

3.Deferred Financial Leasing Liabilitties -1,353,740.00 

4.Bonds Issued

ULS - Exhibits B

Page 4 of 13
5.Other Securities Issued

6.Value Differences of Securities Issued (-)

7.Other Financial Liabilities

B. Trade Payables 7,283.00

1. Suppliers

2. Notes Payable 7,283.00

3. Rediscount on Notes Payables (-)

4. Deposits and Guarantees Received

5. Other Trade Payables

C. Other Liabilities 829,956.00

1. Due to Shareholders

2. Due to Affiliates

3. Due to subsidiaries

4. Other Payables 829,956.00

5. Rediscounts on Other Notes Payable (-)

6. Debts to the Public Sector, Deferred or Payable by Installments

D. Advances Received

1.Advances From Customers 

2.Other Advances Received 

E. Provisions for Debts Expenses 

1. Provisions for Termination Indemnities 

2. Provisions for Other Debts and Expenses

F. Income Relating to Future Periods and Expense Accruals 

1. Income Relating to Future Periods

2. Expense Accruals

G. Other Long Term Liabilities 

1. VAT Deferred to Following Years 

2. Lots of Participation to Installations

3. Other Long Term Liabilities

TOTAL OF LONG TERM EXTERNAL RESOURCES 12,852,500.00

III. SHAREHOLDERS EQUITY 22,381,600.00

A. Paid -In Capital 9,848,010.00

1. Capital 9,848,010.00

2. Un - Paid Capital (-)

3. Pozitive Distinction From Share Capital (-)

B. Capital Reserves 22,978,700.00

1. Share Premium

2. Share Premium of Canceled Shares

3. Revaluation Fund of Tangible Fixed Assets

4. Revaluation Fund of Investments

5. Other Capital Reserves 22,978,700.00

C. Profit Reserves 

1. Legal Reserves 

2. Statuary Reserves

3. Extraordinary Reserves

4. Other Reserves

5. Special Funds

ULS - Exhibits B

Page 5 of 13
D. Retained Earnings 994,814.00

1. Retained Earnings 994,814.00

E. Losses From Previous Years (-) -5,563,050.00 

1. Losses From Previous Years (-) -5,563,050.00 

F. Net Profit (Loss) For The Period -5,876,850.00 

1.Net Profıt For The Perıod 

2.Net Loss For The Perıod (-) -5,563,050.00 

TOTAL EQUITY 22,381,600.00

TOTAL LIABILITIES 46,139,800.00

A. GROSS SALES 46,139,800.00

1. Domestic Sales 422,761.00

2. Export Sales 42,192,100.00

3 .Other Sales 0.00

B. SALES DEDUCTİONS (-) 23,379.40

1. Sales Returns (-) 23,379.40

2. Sales Discounts (-) 0.00

3. Other Deductions (-) 0.00

C. NET SALES 42,591,500.00

D. COST OF SALES (-) 44,789,700.00

1. Cost of Products Sold (-) 0.00

2. Cost of Merchandise Sold (-) 0.00

3. Cost of Services Rendered (-) 44,789,700.00

4. Cost of Other Sales (-) 0.00

GROSS PROFIT OR (LOSS) -2,198,230.00

E. OPERATING EXPENSES (-) 4,917,380.00

1. Research and Development Expenses (-) 0.00

2. Marketing, Selling and Distribution Expenses 249,559.00

3. General Administration Expenses (-) 4,667,820.00

OPERATİNG PROFİT OR (LOSS) -7,115,610.00

F. INCOME AND PROFIT FROM OTHER OPERATIONS 2,632,200.00

1. Dividend Income From Affiliates 0.00

2. Dividend Income From Subsidiaries 0.00

3. Interest Income 4,711.08

4. Commission Income 0.00

5. Provisions no Longer Required 0.00

6. Profit on Sale of Marketable Securities 0.00

7. Profit From Foreign Currency Exchange 2,627,480.00

8. Rediscount Income 0.00

9.Gains From Inflation Adjustments 0.00

CURRENT PERIOD

12/31/2008

S T A T E M E N T o f I N C O M E

(US Dollars)

ULS AIRLINES CARGO

ULS - Exhibits B

Page 6 of 13
10. Other Income and Profit 0.00

G. EXPENSES AND LOSSES FROM OTHER OPERATIONS (-) 9,529,980.00

1. Commission Expenses (-) 2,819,280.00

2. Provisions (-) 0.00

3. Loss on Sale of Marketable Securities 0.00

4. Loss From Foreign Currency Exchange 6,710,700.00

5. Rediscount Interest Expense (-) 0.00

6.Loss From Inflation Adjustments (-) 0.00

10. Other Ordinary Expenses and Loses (-) 0.00

H. FINANCIAL EXPENSES (-) 742,837.00

1. Short Term Borrowing Expenses (-) 742,837.00

2. Long Term Borrowing Expenses (-) 0.00

ORDINARY PROFIT OR (LOSS) -14,756,200.00

I. EXTRAORDINARY REVENUES AND PROFITS 9,325,530.00

1. Previous Period Revenues and Profits 0.00

2. Other Extraordinary Revenues and 9,325,530.00

J. EXTRAORDINARY EXPENSES AND LOSES (-) 446,149.00

1. Idle Capacity Expenses and Losses (-) 0.00

2. Previous Period Expenses and Losses (-) 0.00

3.Other Extraordinary Expenses and Losses (-) 446,149.00

PROFIT OR (LOSS) FOR THE PERIOD -5,876,850.00

K. PROVISIONS FOR TAXES PAYABLE AND OTHER STATUARY OBLIGATIONS (-) 0.00

NET PROFİT OR (LOSS) FOR THE YEAR -5,876,850.00

ULS - Exhibits B

Page 7 of 13
12/31/2009

CURRENT ASSETS 9,707,380.00

A - Liquid Assets 720,776.00

1 - Cash and cash equivalents 74,119.20

2 - Cheques Received 0.00

3 - Cash in Banks 646,657.00

4- Cheques Issued and Payment Orders (-) 0.00

5- Other Liquid Assets 0.00

B - Marketable Securities 0.00

1- Stocks 0.00

2- Obligation Notes and Bonds of Private Sector 0.00

3- Obligation Notes and Bonds of Public Sector 0.00

4- Other Securities 0.00

5- Special Allowance for Loss in the value of securities (-) 0.00

C- Short Term Trade Receivables 1,133,300.00

1- Customers 1,118,020.00

2- Notes Receivables 0.00

3- Discount of Notes Receivables(-) 0.00

4- Deposits and Gurantees Given 15,281.80

5- Other Commercial Receivables 0.00

6- Doubtful Commercial Receivables 0.00

7- Provision for Specific Doubtful Debts (-) 0.00

D- Other Short Term Receivables 0.00

1- Due from Shareholders 0.00

2- Due from Affiliates 0.00

3- Due from Subsidiaries 0.00

4- Due from Related Parties 0.00

5- Due from Personnel 0.00

6- Other Commercial Receivables 0.00

7- Rediscount / Other Notes Receivables(-) 0.00

8- Other Doubtful Receivables 0.00

9- Provision for Other Doubtful Receivables(-) 0.00

E- Inventories 7,479,290.00

1- Raw Materials and Supplies 0.00

2- Work in Progress 0.00

3- Finished Goods 0.00

4- Commercial Goods 6,791,730.00

5- Other Inventories 0.00

6- Prov. for Decrease Value of Inventory(-) 0.00

7- Advance Given for Purchases 687,559.00

F- Contract Progress Costs 0.00

1- Contract Progress Costs 0.00

2- Advances Given to Sub-Contractors 0.00

G- Prepaid Expenses and Income Accruals 0.00

1- Prepaid Expenses for Future Months 0.00

ULS AIRLINES CARGO 

(US Dollars)

DETAILED BALANCE SHEET

CURRENT PERIOD

ULS - Exhibits B

Page 8 of 13
2- Income Accruals 0.00

H- Other Current Assets 374,009.00

1- Deferred VAT 41,090.10

2- Deductible VAT 0.00

3- Other VAT 0.00

4- Prepaid Taxes and Funds 174,317.00

5- Work Advances 84,265.20

6- Advances to Personnel 74,337.00

7- Inventory Shortages 0.00

8- Other Current Assets 0.00

9- Provision for Other Current Assets (-) 0.00

12/31/2009

LONG TERM ASSETS 47,990,600.00

A- Long Term Trade Receivables 331,453.00

1- Customers 0.00

2- Notes Receivables 0.00

3- Rediscount on Notes Receivables(-) 0.00

4- Deposits and Gurantees 331,453.00

5- Doubtful Receivables 0.00

6- Provision for Doubtful Receivables(-) 0.00

B- Other Long Term Receivables 0.00

1- Due from Shareholders 0.00

2- Due from Equity Participations 0.00

3- Due from Subsidiaries 0.00

4- Due from Personel 0.00

5- Long Term Other Receivables 0.00

6- Rediscount on Other Notes Receivables(-) 0.00

7- Provision for Other Doubtful Receivables(-) 0.00

C- Financial Assets 0.00

1- Long - term securities 0.00

2- Decrease on Value of Securities.(-) 0.00

3- Affiliates 0.00

4- Capital Commitment for Affiliates(-) 0.00

5- Decreasse in Value of Affiliates Shares(-) 0.00

6- Subsidiaries 0.00

7- Capital Commitment for Subsidiaries(-) 0.00

8- Decrease in Value of Subs.(-) 0.00

9- Other Financial Fixed Assets 0.00

D- Tangible Fixed Assets 46,266,000.00

1- Land 0.00

2- Land Improvements 0.00

3- Buildings 0.00

4- Machinary, Plant and Equipments 11,245,500.00

5- Vehicles 22,574,800.00

6- Furniture and Fixtures 428,458.00

7- Other Tangible Fixed Assets 0.00

8- Accumulated Depreciation(-) (11,681,200.00)

(US Dollars)

ULS AIRLINES CARGO 

DETAILED BALANCE SHEET

CURRENT PERIOD

ULS - Exhibits B

Page 9 of 13
9- Construction in Progress 2,935,010.00

10- Advances Given 20,763,400.00

E- Intangible Fixed Assets 394,168.00

1- Rights 274,860.00

2- Goodwill 0.00

3- Establishment and Formation Expenses 3,969.46

4- Research and Development Costs 0.00

5- Special Cost 483,669.00

6- Other Intangible Fixed Assets 0.00

7- Accumulated Amortization (-) (368,330.00)

8- Advances to Suppliers 0.00

F- Assets Subject to Amortization 0.00

1- Exploration / Research Expenses 0.00

2- Preparation and Development Expenses 0.00

3- Other Amortizable Assets 0.00

4- Accumulated Amortization (-) 0.00

5- Advances Given 0.00

G- Prepaid Expenses and Accrued Income 998,942.00

1- Prepaid Expenses for Future Years 998,942.00

2- Income Accruals 0.00

H- Other Fixed Assets 0.00

1- Deductible VAT In Future Years 0.00

2- Other VAT 0.00

3- Inventories for Future Years 0.00

4- Inventories and Tangible Fixed Ass.to be Sold 0.00

5- Prepaid Expenses and Funds 0.00

6- Other Fixed Assets 0.00

7- Decrease in Value of Stocks (-) 0.00

TOTAL ASSETS 0.00 57,698,000.00

12/31/2009

LIABILITIES

CURRENT LIABILITIES 8,933,590.00

A- Financial Liabilities 80,207.40

1- Bank Loans 80,207.40

2- Leasing Debt 0.00

3- Leasing Debt interest.(-) 0.00

4- Current Maturities of Long Term Credits and Accrued Interest 0.00

5- Current Maturities of Bonds and Accrued Interest 0.00

6- Bonds and Notes Issued 0.00

7- Other Marketable securities issued 0.00

8- Other Financial Liabilities 0.00

B- Trade Payables 7,635,410.00

1- Suppliers 6,264,300.00

2- Notes Payable 1,281,640.00

3- Rediscount on Notes Payable (-) 0.00

4- Deposits and Guarantees Received (0.00)

5- Other Trade Payables 89,466.20

DETAILED BALANCE SHEET

CURRENT PERIOD

(US Dollars)

ULS AIRLINES CARGO 

ULS - Exhibits B

Page 10 of 13
C- Other Short Term Payables 31,266.10

1- Due to Shareholders (0.00)

2- Due to Affiliates 0.00

3- Due to Subsidiaries 0.00

4- Due to Related Parties 0.00

5- Due to Personel 0.00

6- Other Liabilities 31,266.10

7- Rediscounts on Other Notes Payables (-) 0.00

D- Advances Received 196,948.00 196,948.00

F- Taxes Payable and Other Fiscal Liabilities 190,102.00

1- Taxes and Funds Payable 108,362.00

2- Social Security Withholdings Payable 81,740.50

3- Overdue, Def.or Restr. Tax. and Oth. Fis.l Liab. 0.00

4- Other Fiscal Liabilities Payable 0.00

G- Provisions for Liabilities and Expenses 0.00

1- Prov.for Inc.Tax.and Other Legal Liabilit.on Profit (-) 0.00

2- Prepaid Income Tax.and Ot. Legal Lia.on Pr. (-) 0.00

3- Provisions for Termination Indemnities 0.00

4- Provisions for Other Debts and Liabilities 0.00

H- Income Relating to Future Months and Ex. Acc. 799,624.00

1- Income Relating to Future Months 0.00

2- Expense Accruals 799,624.00

I- Other Short Term Liabilities 35.35

1- Collected VAT 0.00

2- Other VAT 0.00

3- Inventory Overages 0.00

4- Other Short Term Liabilities 35.35

12/31/2009

LIABILITIES

LONG TERM LIABILITIES 32,068,700.00

A- Financial Liabilities 7,171,030.00

1- Bank Loans 0.00

2- Leasing Debt 7,754,560.00

3- Leasing Debt interest.(-) (583,527.00)

4- Other Financial Liabilities 0.00

B- Trade Payables 248,767.00

1- Suppliers 0.00

2- Notes Payable 0.00

3- Rediscount on Notes Payable (-) 0.00

4- Deposits and Guarantees Received 248,767.00

5- Other Trade Payables 0.00

C- Other Long Term Payables 24,648,900.00

1- Due to Shareholders 0.00

2- Due to Affiliates 0.00

3- Due to Subsidiaries 0.00

4- Due to Related Parties 0.00

ULS AIRLINES CARGO 

(US Dollars)

DETAILED BALANCE SHEET

CURRENT PERIOD

ULS - Exhibits B

Page 11 of 13
5- Due to Personel 24,648,900.00

6- Other Liabilities 0.00

D- Advances Received 0.00 0.00

E- Provisions for Debts Expenses 0.00

1- Provisions for Termination Indemnities 0.00

2- Provisions for Other Debts and Expenses 0.00

F- Income Relating to Future Periods and Exp. Acc. 0.00

1- Income Relating to Future Periods 0.00

2- Expense Accruals 0.00

G- Other Long Term Liabilities 0.00

1- VAT Deferred to Following Years 0.00

2- Lots of Participation to Installations 0.00

3- Other Long Term Liabilities 0.00

SHAREHOLDERS' EQUITY 0.00 16,695,700.00

A- Paid-In Capital 33,046,100.00

1- Capital 33,046,100.00

2- Un-Paid Capital 0.00

3- Positive Variance of Capital Adjustment 0.00

4- Negative Variance of Capital Adjustment 0.00

B- Capital Reserves 0.00

1- Share Premium 0.00

2- Share Premium of Canceled Shares 0.00

3- Revaluation Fund of Tangible Fixed Assets 0.00

4- Revaluation Fund of Investments 0.00

5- Other Capital Reserves 0.00

C- Reserves 165,230.00

1- Legal Reserves 0.00

2- Statutory Reserves 0.00

3- Extraordinary Reserves 0.00

4- Other Reserves 0.00

5- Special Funds 165,230.00

D- Retained Earnings 1,001,460.00 1,001,460.00

E- Losses From Previous Years (-) (11,518,100.00) (11,518,100.00)

F- Net Profit (Loss) For The Period (5,998,860.00) (5,998,860.00)

TOTAL LIABILITES 57,698,000.00

12/31/2009

A- GROSS SALES 49,081,200.00

1- Domestic Sales 293,015.00

2- Export Sales 48,788,200.00

3- Others Sales 0.00

B- SALES DEDUCTIONS (-) (297,397.00)

1- Sales Returns (-) (297,397.00)

CURRENT PERIOD

(US Dollars)

DETAILED STATEMENT OF INCOME

ULS AIRLINES CARGO 

ULS - Exhibits B

Page 12 of 13
2- Sales Discounts (-) 0.00

3- Other Deductions (-) 0.00

C- NET SALES 48,783,800.00

D- COST OF SALES (-) (51,046,900.00)

1- Cost of Products Sold (-) 0.00

2- Cost of Merchandise Sold (-) 0.00

3- Cost of Services Rendered (-) (51,046,900.00)

4- Cost of Other Sales (-) 0.00

GROSS PROFIT 0.00 (2,263,100.00)

E- OPERATING EXPENSES(-) (2,485,647.00)

1- Research and Development Expenses (-) 0.00

2- Marketing Selling and Distribution Expenses (-) (377,517.00)

3- General Administrative Expenses (-) (2,108,130.00)

PROFIT ON OPERATING ACTIVITIES 0.00 (4,748,747.00) (3,138,510.00)

F- OTHER OPERATING INCOME 1,735,435.67

1- Dividend Income from Affiliates 0.00

2- Dividend Income from Subsidiaries 0.00

3- Interest and Other Dividend Income 4,259.35

4- Commission Income 0.00

5- Provisions no Longer Required 0.00

6- Profit on Sale of Marketable Securities 0.00

7- Profit From Foreign Currency Exchange 1,725,930.00

8- Rediscount Income 0.00

9- Inflationist Profit 0.00

10- Other Income and Profit 5,246.32

G- OTHER OPERATING EXPENSES (-) (2,047,234.00)

1- Commission Expenses (-) (253,954.00)

2- Provisions (-) 0.00

3- Loss on Sale of Marketable Securities 0.00

4- Loss From Foreign Currency Exchange (1,793,280.00)

5- Rediscount Interest Expense (-) 0.00

6- Inflationist Lost 0.00

7- Other Ordinary Expenses and Loses (-) 0.00

H- FINANCIAL EXPENSES (-) (990,191.00)

1- Short Term Borrowing Expenses (-) (990,191.00)

2- Long Term Borrowing Expenses (-) 0.00

ORDINARY PROFIT OR (LOSS) (6,050,736.33) (6,050,680.00)

I- EXTRAORDINARY INCOME 199,315.00

1- Previous Period Revenues and Profits 0.00

2- Other Extraordinary Income 199,315.00

J- EXTRAORDINARY EXPENSES (147,502.00)

1- Idle Capacity Expenses and Losses(-) 0.00

2- Previous Period Expenses and Losses (-) 0.00

3- Other Extraordinary Expenses and Losses (-) (147,502.00)

PROFIT OR (LOSS) FOR THE PERIOD (5,998,860.00) (5,998,860.00)

K- TAXATION 0.00

NET PROFIT FOR THE PERIOD 0.00 (5,998,860.00) (5,998,860.00)

ULS - Exhibits B

Page 13 of 13