# BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

___________________________________________ ) Application of ) ) KUZU AIRLINES CARGO A. Ş

. ) ) Docket OST-2006-25940 for an amended Foreign Air Carrier Permit ) pursuant to 49 U.S.C. § 41302 )

___________________________________________ )

APPLICATION OF KUZU HAVAYOLLAR І KARGO TA ŞІ MAC І L І K A. Ş

. FOR AN AMENDED FOREIGN AIR CARRIER PERMIT

_________________________________________

Communications with respect to th is 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 HAVAYOLLAR І KARGO TA ŞІ MAC І L І K A. Ş

.

June 3, 2010

Notice: Answers supporting or opposing th is 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 CARGO A. Ş

. ) ) Docket OST-2006-25940 for an amended Foreign Air Carrier Permit ) pursuant to 49 U.S.C. § 41302 )

___________________________________________ )

APPLICATION OF KUZU HAVAYOLLAR І KARGO TA ŞІ MAC І L І K 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 Ta ş imacilik A. Ş .(“Kuzu”) requests that the Department issue an amended Forei gn Air Carrier Permit to reissue its current charter authority in the name of ULS Havayollar ı Kargo Ta ş ı mac ı l ı k A. Ş . (“ULS Airlines Cargo” or “ULS”). The name change is a re sult of the sale of Ku zu 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 respectful ly requests expedite d approval of this application. In support of this Application, ULS Airlines Cargo states as follows:

1. ULS is a corporation organized a nd existing under the laws of the Turkish Republic. The full name and addre ss of the head office of the applicant is: ULS Havayollar ı Kargo Ta ş ı mac ı l ı k A. Ş

. Çobançe ş me Mevkii 29 Ekim Cad. No: 16 Yenibosna 34197 İ stanbul, Turkey

## Application of KUZU for an Ame nded 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 trans port authority having regulatory jurisdiction over ULS Airlines Cargo is th e Ministry of Trans portation Directorate General of Civil Aviation (“DGC A”), which is located at:

Sivil Havac ı l ı k Genel Müdürlü ğ ü 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 fu ll charter, wet lease, and scheduled operations with a fleet of four A3 00-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 Unite d 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 Turke y. The voting shares in the Company are

owned as follows:

Turkish Citizens İ smail Karaarslan – 21 percent Cebrail Karaarslan – 28 percent

## Application of KUZU for an Ame nded 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 Direct ors and they have no in terest in other U.S. or foreign air carriers, common carriers, or companies engaged in the business of

aeronautics. Mrs. and Mr. Bena guev are Russian citizens.

6. Turkish DGCA re-issued Air Operat ional 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 th e statutory provisions and to the Department’s rules, regulations, and requi rements 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 accide nts, 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 ope rational rules of the Government of the Turkish Republic. Turkey is a contrac ting party to the Convention on International

## Application of KUZU for an Ame nded Foreign Air Carrier Permit Docket OST-2006-25940 Page 4 of 4 

# Civil Aviation (“ICAO”) and observes a ll 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 HAVAYOLLAR І KARGO TA ŞІ MAC І L І K A. Ş

June 3, 2010

# CERTIFICATE OF SERVICE

I hereby certify that I have this 3 rd 

# day of June, 2010, served the following Application for an Amended Foreign Ai r 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. TurkelI. 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)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. Buildings4. 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 31/12/20086. 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 Issued5.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 FundsD. 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 Prof ı t For The Per ı od 2.Net Loss For The Per ı od (-) -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 DEDUCT İ ONS (-) 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 OPERAT İ NG PROF İ T 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 CARGO10. 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 PROF İ T OR (LOSS) FOR THE YEAR -5,876,850.00

## 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 PERIOD2- 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 PERIOD9- 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 CARGOC- 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 PERIOD5- 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 CARGO2- 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)