BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Application of 

GAMA CHARTERS INC. 

for a certificate of public convenience 

and necessity under 49 U.S.C. § 41102 

to engage in interstate charter air 

transportation 

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~ OST-2012- 0/9 I 

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APPLICATION OF 

GAMA CHARTERS INC. 

AND REQUEST FOR PENDENTE LITE EXEMPTION 

Communications with respect to this document should be sent to: 

Dated: October 23, 2012 

Malcolm L. Benge 

ZUCKERT SCOUTT & RASENBERGER, 

L.L.P. 

888 Seventeenth Street, N.W. Suite 700 

Washington, D.C. 20006 

(202) 298-8660 

mlbenge@zsrlaw.com 

Attorneys for 

Gama Charters Inc. 

NOTICE: ANY PERSON MAY FILE AN ANSWER WITH THE DEPARTMENT OF 

TRANSPORTATION SUPPORTING OR OPPOSING THIS APPLICATION. 

ANSWERS MUST BE FILED ON OR BEFORE NOVEMBER 13, 2012 AND MUST BE 

SERVED ON THE PARTIES NAMED IN THE ATTACHED SERVICE LIST. 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Application of 

GAMA CHARTERS INC. 

for a certificate of public convenience 

and necessity under 49 U.S.C. § 41102 

to engage in interstate charter air 

transportation 

Dated: October 23, 2012 

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) 

) 

) 

) 

) 

) 

) 

) 

OST-2012-

APPLICATION OF 

GAMA CHARTERS INC. 

AND REQUEST FOR PENDENTE LITE EXEMPTION 

Gama Charters Inc. ("Gama" or "Applicant") hereby applies pursuant to Section 41102 

of Title 49 of the United States Code and Part 204 ofthe Department's Regulations for a 

certificate of public convenience and necessity authorizing Gama to engage in the interstate 

charter air transportation of persons, property and mail with a Boeing Business Jet aircraft 

("BBJ"). 1 Gama requests that this application be processed under the non-hearing procedures 

prescribed by Subpart B of the Department's Rules of Practice, and asks that the Department 

issue the requested certificate authority as expeditiously as possible. In support of its 

application, Gama respectfully states as follows: 

1 By separate application, Gama is concurrently filing for a certificate of public convenience and 

necessity authorizing it to engage in foreign charter air transportation of persons, property and 

mail also with a BBJ. 
APPLICATION OF 

GAMA AVIATION INC. 

Page2 

1. Name and Address of Applicant. The full name and address ofthe Applicant is 

Gama Charters Inc., Sikorsky Memorial Airport, 700 Great Meadow Road, Stratford, 

Connecticut 06615. The phone and fax number for Gama are as follows: Phone: (203) 385-

3426/Fax: (203) 380-6639. 

2. Form of Organization. Gama is a corporation organized and existing under the 

laws of the State of Delaware. Gama was formed in 1999 in accordance with the Delaware 

General Corporation Law. A copy ofGama's Certificate oflncorporation and a certificate of 

good standing issued by the Delaware Secretary of State are attached hereto as Exhibit GAMA1 00. Gama does not have any subsidiaries. It does not have any shares of stock in, nor does it 

control, any air carrier, foreign air carrier, common carrier or any person substantially engaged in 

the business of aeronautics. 

3. Ownership and Citizenship. Gama's ownership information was previously 

the subject of a notice submitted on February 29, 2008 in accordance with Section 204 of the 

Department's regulations. The background to Gama's ownership information is set forth briefly 

below. 

In February 2008, Merritt Property LLC ("Merritt"), a Delaware limited liability 

company, purchased a seventy-five percent (75%) ownership interest in Operator Holding 

Group, Inc. ("OHI"), the corporate parent of Flight Services Group, Inc. ("FSG"), the 

predecessor of Gama. Merritt is owned in equal shares by John Tesei and Robert McBride, both 

of whom are U.S. citizens. As part of the same transaction, Gama Group Limited ("Gama 

Holdings"), a U.K. company, purchased a twenty-five percent (25%) interest in OHI. 

Subsequently, FSG changed its name to Gama Charters Inc. 
APPLICATION OF 

GAMA AVIATION INC. 

Page 3 

In 2009, Merritt investors sold a twelve percent (12%) ownership share to Thomas 

Miller, Chief Executive Officer of Gama, and an identical twelve percent ownership interest to 

Thomas Connelly, Gama's Director of Maintenance. Mr. Miller and Mr. Connelly are members 

of Gama' s senior management who have been employees of the company for many years. Both 

are U.S. citizens. Mr. Miller and Mr. Connelly financed the acquisition of OHI shares with their 

own resources. Their purchase of shares did not involve any debt. 

At the same time, the OHI shares held by Gama Holdings were consolidated in a 

company named Gama Group Inc. ("Gama Group"). Acting under the liberalized cross-border 

ownership rules of the United States-European Union Air Transport Agreement, Gama Group 

purchased an additional twenty-four percent (24%) interest in OHI from Merritt, resulting in a 

total ownership interest of forty-nine percent (49%), including twenty-five percent (25%) of 

OHI's voting stock. 

As a result ofthe above-described transactions, the current ownership of OHI (the 

controlling entity of Gama) is as follows: 

Class A Class B 

Name Voting Shares Non-voting Shares Shares Citizenship 

Merritt Property LLC 27 0 27 U.S. 

Gama Group, Inc. 17 32 49 U.K. 

Thomas Connelly 12 0 12 U.S. 

Thomas Miller 12 0 12 U.S. 

None of Gama's shareholders are related by blood or marriage. Attached as Exhibit GAMA200, please find an Affidavit of Citizenship for Gama. 
APPLICATION OF 

GAMAAVIATION INC. 

Page4 

Merritt is a non-operating holding company created to hold the equity interests of Messrs. 

Tesei and McBride in OHI. The formation of Merritt was previously described by Gama in a 

letter submitted to the Fitness Division on July 7, 2009. 

Gama Group is the wholly-owned subsidiary of Gama Holdings, a company registered in 

the United Kingdom. Gama Holdings is owned and effectively controlled by EU nationals. 

Gama Holdings operates on-demand air charter transportation pursuant to an Air Transport 

License and an Air Operations Certificate issued by the U.K. Civil Aviation Authority. Attached 

as Exhibit GAMA-300 are financial statements for Gama Holdings for the past two fiscal years, 

with the most recent financial statement showing the results of operations for Gama Holdings as 

of December 31, 2011. The Gama Holdings financial statements have been prepared by the 

accounting firm Deloitte & Touche, in accordance with generally accepted accounting principles. 

No significant events have occurred subsequent to the date of the most recent financial statement 

for Gama Holdings that would have a material effect on its financial results. 

4. Key Personnel. 

a. Board of Directors. 

Gama's board of directors is comprised entirely of U.S. citizens. The board members are 

as follows: 

Citizenship Address 

Robert McBride U.S. 24 Greenwich Avenue, Greenwich, CT 06830 

John P. Tesei U.S. 36 Carrington Drive, Greenwich, CT 06831 

Thomas H. Miller U.S. 19 Lester Street, Milford, CT 06461 

Thomas Connelly U.S. 269 Puritan Road, Fairfield, CT 06824 

All of the above-named individuals have an indirect ownership interest in Gama through their 

ownership of OHI as disclosed in paragraph 4 of this Application. 
APPLICATION OF 

GAMA AVIATION INC. 

Page 5 

The board of directors of OHI, Gama' s parent, reflects the composition of the company's 

ownership. The OHI board members are as follows: 

Name Citizenship Address 

Robert McBride U.S. 24 Greenwich A venue, Greenwich, CT 06830 

John P. Tesei U.S. 36 Carrington Drive, Greenwich, CT 06830 

Marwan Khalek U.K. 480 Lordship Boulevard, Stratford, CT 06615 

Thomas H. Miller U.S. 19 Lester Street, Milford, CT 06461 

Thomas Connelly U.S. 269 Puritan Road, Fairfield, CT 06824 

Messrs. McBride, Tesei, Miller and Connelly have an ownership interest in OHI as disclosed in 

paragraph 4 of this Application. Mr. Khalek is the Chief Executive Officer and principal owner 

of Gama Holdings. 

b. Management. 

The following individuals serve as officers of Gama: 

Title Citizenship Address 

Thomas H. Miller Chief Executive Officer U.S. 19 Lester Street, Milford, CT 06461 

Thomas Connelly Director of Maintenance U.S. 269 Puritan Road, Fairfield, CT 06824 

John Walter ChiefPilot U.S. 105 Elizabeth Terrace, Stratford, CT 06614 

Messrs. Miller, Connelly and Walter have been approved by the FAA to hold the management 

positions required under FAR 119.69 for Part 135 operators. Resumes and compliance 

questionnaires for each of the officers of Gama were previously submitted to the Department by 

letter dated July 7, 2009. Messrs. Miller and Connelly have an ownership interest in OHI as 

disclosed in paragraph 4 of this Application. 

5. Financial Information. Gama is a privately-owned corporation. It is not 

required to file Form 10-K Reports with the Securities and Exchange Commission. Gama's 
APPLICATION OF 

GAMA AVIATION INC. 

Page 6 

balance sheet as of l!lne 30, 2012 and December 31 for the past three calendar years are set forth 

in Exhibit GAMA-400. Income Statements for the same periods are attached as Exhibit GAMA401. The attached financial statements were prepared by Wayne M. Champagne in accordance 

with Generally Accepted Accounting Principles. Mr. Champagne is Gama's Controller. He has 

been employed by Gama in various accounting positions of increasing responsibility since 1997. 

Mr. Champagne graduated from Fairfield University in 1983 with a B.A. degree in Accounting. 

He received his Certified Public Accounting (CPA) license in 1986. No significant events have 

occurred subsequent to the date of the most recent financial statement for Gama that would have 

a material effect on its financial results. 

6. Pending Actions and Outstanding Judgments. 

a. There are no pending actions or outstanding judgments involving an amount in 

excess of$5,000 against Gama, Gama Group or any key personnel employed by Gama or by any 

party having a substantial interest in Gama. 

b. The total number of all pending actions or outstanding judgments of less than 

$5000 against Gama, Gama Group, any oftheir key personnel or any person having a substantial 

interest in Gama, is zero. 

7. Current Aircraft Fleet and Fleet Acquisition Plans 

Pursuant to aircraft management arrangements common in the aviation industry, Gama 

currently leases 35 aircraft for its Part 135 on-demand operations. These aircraft include a wide 

range of privately-owned corporate jets. 

Gama is seeking authority to engage in on-demand, single entity charter services using a 

BBJ aircraft. To facilitate its proposed services, and in keeping with the arrangements employed 

for Gama' s current Part 13 5 operations, Gama will enter into a lease agreement with a BBJ 
APPLICATION OF 

GAMA AVIATION INC. 

Page 7 

owner that becomes effective only upon the issuance by the Department of a final and effective 

order granting Gama a certificate of public convenience and necessity. The BBJ aircraft will be 

managed pursuant to a Management Services Agreement between the owner of the BBJ and 

Gama Aviation, Inc. (a subsidiary of Gama Group). 

8. Pending Investigations, Enforcement Actions and Formal Complaints. 

There are no pending investigations, enforcement actions, or formal complaints, initiated 

by the Department or the FAA, involving Gama, or Gama Group, any personnel employed by 

Gama or Gama Group, or any person having a substantial interest in Gama or Gama Group, 

regarding compliance with Title 49 of the United States Code ("Transportation Code") or orders, 

rules, regulations or requirements issued pursuant to the Transportation Code. 

9. Unfair, Deceptive or Anticompetitive Business Practices; 

Antitrust, Fraud and Felony Charges (past 10 years) 

During the past ten years, there have been no charges of unfair, deceptive or 

anticompetitive business practices, or of fraud, felony or antitrust violations, against any of the 

following entities: Gama, Gama Group, any person employed by Gama or Gama Group, and any 

person having a substantial interest in Gama. 

10. Aircraft Accidents and Incidents 

Gama has not been involved in any aircraft accident or incident which occurred during 

the past year, or at any time in the past which remains under investigation by the FAA, the 

National Transportation Safety Board or by Gama itself. 

11. Federal, State and Foreign Authority Held and FAA Jurisdiction. 

Gama was first issued an AOC to engage in commercial air transportation in 1983. A 

briefhistory ofGama's operations is attached hereto as Exhibit GAMA-500. At the present time 
APPLICATION OF 

GAMA AVIATION INC. 

Page 8 

Gama holds the following federal, state and foreign authority to engage in commercial air 

transportation: 

a. Part 298 Air Taxi Exemption: The Department issued Gama a Part 298 

exemption on December 7, 2000 when Gama Was still operating under the name Flight Services 

Group. 

b. Part 135 Air Carrier Certificate. Gama currently engages in on-demand charter 

transportation under Part 13 5 of the Federal Aviation Regulations ("FAR") pursuant to an Air 

Operator Certificate ("AOC") issued by Federal Aviation Administration ("FAA") under FAR 

Part 119 (Certificate Number 02GA9701). A copy of Gama's AOC is attached hereto as Exhibit 

GAMA-600. 

The FAA office which has primary jurisdiction over Gama' s flight operations is: 

Beth Babb, Manager 

Flight Standards District Office #63 

Federal Aviation Administration 

Building 85-214 

Bradley International Airport 

Windsor Locks, CT 06096. 

12. Proposed Service Plan and Revenue and Traffic Forecasts. 

Gama plans to engage in BBJ services in the same way that it conducts its current Part 

135 operations. Although Gama is a Part 135 operator, it does not own any aircraft; instead, it 

operates aircraft that are managed on behalf of the owners. The owners of these aircraft wish to 

derive revenue from the use of their aircraft for Part 135 commercial charters but do not possess 

any air carrier operating authority. Instead, they lease their aircraft to Gama, which operates the 

aircraft for on-demand charters pursuant to its Part 135 certificate. Gama retains a portion of the 

revenue from these charters as payment for services it provides as operator; the balance is 
APPLICATION OF 

GAMA AVIATION INC. 

Page 9 

remitted to the aircraft owners in the form of lease payments. This is the standard industry 

arrangement for Part 135-certified aircraft that are subject to third-party management 

agreements. 

Gama is extending this business model to its proposed BBJ operations. It will operate a 

BBJ aircraft owned by others for commercial charter services. The revenue derived from the 

BBJ charter services will be retained by Gama net of any lease payments made to the aircraft 

owners. This is the same business model used by other Part 135 certificate holders conducting 

BBJ operations, including Universal Jet Aviation (Order 2012-1-11) and Avjet Corporation 

(DOT Order 2009-1-7). 

Gama will initiate BBJ operations with a single BBJ aircraft owned by Delaware Global 

Operation, LLC ("Delaware Global"). The BBJ will be leased to Gama by Delaware Global; in 

return, Gama will use it to operate on-demand charters for third-party customers. Under this 

arrangement, Delaware Global will pay all operating costs for the BBJ plus all costs relating to 

the management of the aircraft. Gama will receive ten percent (10%) of the revenues from the 

BBJ charter operations. 

a. First Year Financial and Traffic Projections 

Gama's business model for its proposed BBJ operations has a dramatic effect on its 

forecast BBJ operating costs. Gama will not directly incur any operating expenses for BBJ 

operations due to the structure of the proposed contractual arrangements with Delaware Global. 

Under those arrangements, Delaware Global will be responsible for virtually all aircraft 

operating costs, including but not limited to: fuel, insurance, catering, maintenance, flight phone, 

crew travel expenses, flight crew costs, parking, and parts and labor. As a result, the only costs 

Gama expects to incur in connection with its proposed BBJ operations are the incremental costs 
APPLICATION OF 

GAMA AVIATION INC. 

Page 10 

of adding the BBJ to its Part 13 5 operations specifications and the training costs required for its 

crews to become qualified on the BBJ. 

Based on its projected first-year operating plan, Gama expects to generate $$600,000 in 

BBJ charter revenues during the twelve-month period from January 1, 2013 to December 31, 

2013. Exhibit GAMA-700 presents Gama's forecasted BBJ revenue and operating costs for the 

same period, broken down by calendar month. These figures show total costs of $5,595,000 for 

the first full year of BBJ operations, which are limited to the estimated BBJ lease expense and 

Gama' s pre-operating costs for the addition of the BBJ to its fleet. All other operating costs will 

be paid by the BBJ aircraft owner. Gama estimates that it will fly the BBJ aircraft up to 400 

hours during its first full-year ofBBJ operations, generating revenue of$6.6 million. At that 

level of flying, the amount ofrent paid to the BBJ aircraft owner would total $5,520,000. 

However, under the arrangement with the BBJ owner, the non-exclusive lease of the BBJ is not a 

fixed cost. The amount of rent paid to the BBJ owner is directly related to the number of flight 

hours accumulated on the aircraft for third-party charters. If there is no demand for third-party 

charter flights with the BBJ, Gama's lease expense would be zero. Assuming 400 hours of 

annual usage, Gama currently estimates that its net income from BBJ operations for the twelvemonth period ending December 31, 2013 will be $1,005,000. 

b. Pre-operating and Start-up Expenses 

Gama estimates that its pre-operating and start-up expenses arising out of its proposed 

BBJ operations will total $75,000, as itemized in Exhibit GAMA-701. All ofthose expenses 

relate to the costs required to add the BBJ to Gama's Part 135 operations specifications and to 

obtain required training for its flight and maintenance crews. A substantial portion of such costs 
APPLICATION OF 

GAMA AVIATION INC. 

Page 11 

already have been incurred and have been paid for out of the revenue from Gama' s ongoing Part 

135 operations. 

Gama anticipates that first year operating costs for its proposed BBJ services will be 

limited to its pre-operating expenses of $75,000.2 Against this amount, Gama has available cash 

exceeding $276,000. Based on the foregoing analysis, Gama has ample resources to meet the 

Department's three-month financial fitness test. 

c. Commercial Agreements. 

Gama entered into a Master Cooperation and Franchising and Branding Agreement 

("Branding Agreement") with Gama Group in 2010. Under the provisions of the Branding 

Agreement, Gama Group provides Gama with certain flight planning, administrative and aircraft 

maintenance services in support of Gama's Part 135 operations. Gama Group will provide these 

same services in connection with Gama' s proposed BBJ operations. In addition, the Branding 

Agreement provides for the marketing of Gama' s services under a common brand with Gama 

Group, in accordance with the provisions of Annex 5 of the U.S.-E.U. Air Transport Agreement. 

A copy of the Branding Agreement was previously submitted to the Department when Gama 

updated its fitness data by letter dated April14, 2010. 

2 Although operating costs for the first three months of BBJ operations will be substantially in 

excess ofthis amount, those costs will be covered by Delaware Global and therefore are not 

to be included in the Department's financial fitness determination. Universal Jet Aviation, 

DOT Order 2012-1-11, p. 5. 
APPLICATION OF 

GAMA AVIATION INC. 

Page 12 

13. Waiver of Warsaw Liability Limits 

Prior to the commencement of the services proposed in this Application, Gama will 

submit to the Department three (3) executed counterparts of OST Form 4523, waiving the 

liability limits of the Warsaw Convention and accepting liability in an amount up to $75,000. 

14. Aviation Disaster Family Assistance Plan. 

Upon approval of this Application, Gama will file with the Department and the National 

Transportation Safety Board an Aviation Disaster Family Assistance plan in accordance with the 

Department's requirements. 

15. Passenger Manifest Information Compliance Plan. 

Immediately following favorable action by the Department on this Application, Gama 

will file a Passenger Manifest Information Compliance Plan as required by 14 C.F .R. §243 .13. 

16. Verification. 

Pursuant to 14 C.F.R. § 204.3(v), attached to this Application is a Verification of the 

contents ofthis Application signed by Thomas Miller, ChiefExecutive Officer ofGama. 

17. Request for Pendente Lite Exemption. 

Gama has been a Part 135 certificate holder and aircraft operator for over 20 years. 

Many of its crewmembers already are qualified on B 73 7 and other large transport category 

aircraft. Its principal executives have professional backgrounds that include substantial 

experience with major airline operations. As it already possesses all the organizational 

requirements and skills to conduct BBJ operations, Gama requests an exemption pendente lite to 

the extent necessary to allow it to conduct Part 135 services with BBJ aircraft pending 

Department action on the instant application. 
APPLICATION OF 

GAMA AVIATION INC. 

Page 13 

The Department has previously allowed a Part 135 operator to engage in BBJ services 

prior to making a determination on its request for certificate authority. During the time that 

Universal Jet Aviation's ("Universal Jet") certificate application was pending before the 

Department, Universal Jet was allowed to conduct Part 135 services with a BBJ aircraft. 

Universal Jet Aviation, DOT Order 2011-8-19. The Department prudently concluded that an 

experienced Part 135 operator could safely conduct commercial flights with a BBJ aircraft while 

the Department determined whether the operator satisfied non-operational fitness requirements, 

e.g., financial fitness and citizenship. 

Gama is requesting the same discretionary relief with respect to its own request to 

conduct on-demand charter operations with a single BBJ aircraft. The Department's decision 

regarding Universal Jet Aviation sufficiently demonstrates that a BBJ aircraft under the control 

of an experienced Part 135 operator does not pose any unacceptable risks to aviation safety. The 

public interest would be served by allowing Gama to make BBJ services available to interested 

third parties for the short period that its certificate application will be pending before the 

Department. Gama is willing to accept any conditions that the Department may impose should 

its request for a pendente lite exemption be granted. 

* * * * * * * * * * 
APPLICATION OF 

GAMA AVIATION INC. 

Page 14 

WHEREFORE, Gama respectfully requests that the Department grant a certificate of 

public convenience and necessity authorizing it to engage in interstate charter air transportation 

of persons, property and mail with BBJ aircraft, as described herein. Gama further requests that 

it be granted an exemption pendente lite to conduct such operations immediately. In the 

alternative, Gama requests that such authority be granted in time to enable Gama to commence 

such charter operations on or before January 1, 2013. 

Dated: October 23, 2012 

Respectfully submitted, 

ZUCKERT SCOUTT & RASENBERGER, 

L.L.P. 

888 Seventeenth Street, N.W. Suite 700 

Washington, D.C. 20006 

(202) 298-8660 

mlbenge@zsrlaw.com 

Attorneys for 

Gama Charters Inc. 
VERIFICATION 

Pursuant to Title 18 United States Code 1001, I, Thomas H. Miller, in my individual 

capacity and as the authorized representative ofGama Charters Inc., state that the contents of this 

application and the accompanying exhibits are true and correct to the best of my knowledge and 

belief. I have not in any manner knowingly and willfully falsified, concealed or covered up any 

material fact or made any false, fictitious, or fraudulent statements or knowingly used any 

documents which contain such statements in connection with the preparation, filing or 

prosecution of this application. I understand that an individual who is found to have violated the 

provisions of 18 U.S. C. section 1001 shall be fined no more than $10,000 or imprisoned not 

more than five years, or both. 

Thomas H. Miller 

Chief Executive Officer 

Subscribed to and sworn before me this _fJ_ day of October, 2012. 

Notary Public 

P. BONIN 

NOTARY PUBLIC 

MY COMMISSION EXPIRES FEB. 28, 2017 
CERTIFICATE OF SERVICE 

I hereby certify that on this 23rd day of October 2012, a copy of the foregoing 

Application of Gama Charters Inc. was served by email or first class mail on the parties named 

below: 

John M. Allen 

Director 

Flight Standards Service 

Federal Aviation Administration 

800 Independence Avenue, S.W. 

Room 821 

Washington, D.C. 20591 

john.allen@faa.gov 

Beth Babb, Manager 

Flight Standards district Office #63 

Federal Aviation Administration 

Building 85-214 

Bradley International Airport 

Windsor Locks, CT 06096 
EXHIBIT GAMA-100 
tJJe[aware PAGE 1 

rrfie :First State 

I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF 

DELAWARE, DO HEREBY CERTIFY "GAMA CHARTERS INC." IS DULY 

INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE AND IS IN 

GOOD STANDING AND HAS A LEGAL CORPORATE EXISTENCE SO FAR AS THE 

RECORDS OF THIS OFFICE SHOW, AS OF THE SEVENTEENTH DAY OF 

OCTOBER, A.D. 2012. 

AND I DO HEREBY FURTHER CERTIFY THAT THE SAID "GAMA CHARTERS 

INC. " WAS INCORPORATED ON THE FOURTH DAY OF FEBRUARY, A.D. 19 9 9. 

AND I DO HEREBY FURTHER CERTIFY THAT THE FRANCHISE TAXES 

HAVE BEEN PAID TO DATE. 

AND I DO HEREBY FURTHER CERTIFY THAT THE ANNUAL REPORTS HAVE 

BEEN FILED TO.DATE. 

3001457 8300 

You may verify this certificate online 

at corp.delaware.gov/autbver.sbtml 
EXHIBIT GAMA-200 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

) 

Application of ) 

) 

GAMA CHARTERS INC. ) 

EXHIBIT GAMA-200 

) 

for a certificate of public convenience ) Docket OST -2012-

and necessity pursuant to 49 U.S.C. § 41102 ) 

to engage in interstate charter air ) 

transportation ) 

----------------------------~) 

AFFIDAVIT OF CITIZENSHIP 

Thomas Miller, being duly sworn, deposes and says as follows: 

1. That he is duly elected, qualified, and serving as Chief Executive Officer of Gama 

Charters Inc., and that he is authorized to and does make this affidavit for it. 

2. That Gama Charters Inc. is a Delaware corporation, of which the chief executive 

officer and more than two-thirds of the directors and managing officers, and the owners of more 

than 75 percent of the voting interest of the company, are citizens of the United States. 

3. That, on the basis of the foregoing facts, he believes that Gama Charters Inc. is a 

citizen of the United States within the meaning of 49 U.S.C. § 41102(a)(5) of the U.S. 

Transportation Code. 

State of Connecticut 

County o£-Norfulk 

(A i f.F/li ;) 

Th~mas Miller 

Subscribed to and sworn before me this~ day of October, 2012. 

P. BONIN N p ul· NOTARY PUBLIC otary uu lC 

My commission expires MY COMMISSION EXPIRES FEB. f6, 2017 
EXHIBIT GAMA-300 
r 

COMPANY REGISTRATION NUMBER 2790795 

GAMA GROUP LIMITED 

FINANCIAL STATEMENTS 

31 DECEMBER 2011 

ft c ts 
GAMA GROUP LIMITED 

FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

CONTENTS 

Officers and professional advisers 

The directors' report 

Independent auditor's report to the shareholders 

Profit and loss account 

Group balance sheet 

Balance sheet 

Group cash flow 

Bookmark not defined. 

Notes to the financial statements 

PAGES 

2 to S 

6 

7 

8 

9 

10 to 

12 to 25 

Error! 
GAMA GROUP LIMITED 

OFFICERS AND PROFESSIONAL ADVISERS 

THE BOARD OF DIRECTORS 

COMPANY SECRETARY 

REGISTERED OFFICE 

AUDITOR 

G A Khalek 

MA Khalek 

5 P Wright 

D M Millington 

M M Sukkar 

J Foley 

D M Millington 

Business Aviation Centre 

Farnborough Airport 

Farnborough 

Hampshire 

GU146XA 

Deloitte LLP 

Chartered Accountants 

Chartered Accountants 

Crawley 
GAMA GROUP LIMITED 

THE DIRECTORS' REPORT (continued) 

YEAR ENDED 31 DECEMBER 2011 

The directors have pleasure in presenting their report and the financial statements of the group for the year ended 

31 December 2011. 

PRINCIPAL ACTIVITIES AND BUSINESS REVIEW 

The principal activity of the group during the year was that of air transport contractors, leasing and aircraft engineering. 

During the year, the group acquired the entire share capital of Gama Aviation SA, a Swiss registered company, 

engaging in the provision of professional services and personnel for a nominal sum. 

The directors have observed that as a result of the current economic downturn, market values for second hand aircraft 

have fallen and the number of distress sales has lowered the resale value of small and medium sized business aircraft. 

As a result the Group undertook a detailed impairment review and determined that an impairment of $9,300,000 

should be recorded against the carrying value of the Group's aircraft fleet. 

Given the difficult and unpredictable trading conditions experienced during the year, the directors are satisfied with 

the results of the group and the financial position at the year end. The aircraft management business has expanded 

during the year with new clients joining our roster. The charter market has been more challenging and the directors 

forecast the performance in 2011 to be similar to that in 2010. 

PRINCIPAL RISKS AND UNCERTAINTIES 

The directors consider the principal risks to the business are: 

*Poor operational performance damaging the group's reputation 

*Changes in economic climate that make private air transport less attractive 

*Increasing regulatory burden and costs of compliance 

Damage to the group 5 reputation 

The group's reputation for safety, reliability and high service standards is essential for maintaining customer loyalty and 

ensuring premium pricing levels. The group has systems and monitoring processes in place to ensure that high 

standards are maintained across all aspects of the group, including customer-facing crew as well as back-office 

operational staff. The group carefully reviews any deviations from these standards and implements changes to 

prevent recurrence. 

Changes in economic climate 

The group offers air transportation services that provide far greater flexibility, discretion and levels of service than is 

possible with general aviation services. The directors recognise that in a recessionary economic climate there may be 

pressure on customers to reduce their use of private aviation services. The directors mitigate this risk by regularly 

reviewing current and anticipated activity levels and ensuring that the Group's cost base is aligned with the expected 

level of activity going forward. 

Regulatory burden and costs of compliance 

To ensure very high levels of safety, the aviation industry has significant and complex regulation to cover training, 

engineering, safety and operations. Breaches of regulations are likely to lead to sanctions such as suspension of 

operations or other restrictions. The directors believe that the regulatory burden is likely to increase over time and 

have members of staff dedicated to liaising with the various regulatory bodies. In addition, staff are regularly trained 

and appraised to ensure their understanding and compliance. 

RESULTS AND DIVIDENDS 

The loss for the year, after taxation, amounted to $2,730,000. The directors have not recommended a dividend. 

FINANCIAL INSTRUMENTS 

Financial risk management objectives and policies 

The group's principal financial instruments comprise: 

*Bank balances; 

*Trade creditors; 

*Trade debtors; and 

*Finance lease agreements 

The main purpose of these instruments is to raise and maintain sufficient funds to finance the group's operations. 

Due to the nature of the financial instruments used by the group there is no exposure to price risk. The group's 

approach to managing other risks applicable to the financial instruments concerned is shown below. 

Bank balances 

The group has no formal overdraft facility as the forecasts regularly reviewed by directors do not anticipate short-term 

funding requirements. General liquidity risk is managed by maintaining weekly cash forecasts to ensure positive cash 

balances. 

Trade creditors 
GAMA GROUP LIMITED 

THE DIRECTORS' REPORT (continued} 

YEAR ENDED 31 DECEMBER 2011 

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. 

Trade debtors 

Trade debtors are managed in respect of credit and cash flow by regular review of aged debtors and our customers' 

credit rating. Cash flow risk is mitigated by requiring up-front payment for much of the group's work and short credit 

terms for all other customers. Provisions are made against any amount for which the recoverability is uncertain. 

Finance lease 

The group is a lessee in respect of a number of finance leased assets, mainly aircraft. The company manages the 

liquidity risk by ensuring there are sufficient funds to meet payments. 
GAMA GROUP LIMITED 

THE DIRECTORS' REPORT (continued) 

YEAR ENDED 31 DECEMBER 2011 

DIRECTORS 

The directors who served the company during the year were as follows: 

G A Khalek 

M A Khalek 

S P Wright 

D M Millington 

M M Sukkar 

J Foley 

REPORTING CURRENCY 

The directors have reviewed the reporting currency of the Gama Group Limited and concluded that US dollars 

continues to better reflect the operational environment of the Group. A significant proportion of the Group's assets, 

liabilities and costs are denominated in US dollars and this trend is likely to continue. 

The group has made qualifying third party indemnity provisions for the benefit of its directors which were in place 

during the year and to the date of this report. 

DIRECTORS' RESPONSIBILITIES 

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with 

applicable law and regulations. 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors 

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting 

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not 

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 

company and the group and of the profit or loss of the group for that year. 

In preparing those financial statements, the directors are required to: 

• select suitable accounting policies and then apply them consistently; 

• make judgements and accounting estimates that are reasonable and prudent; 

• state whether applicable UK Accounting Standards have been followed, subject to any material departures 

disclosed and explained in the financial statements; 

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group 

will continue in business. 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 

group's and company's transactions and disclose with reasonable accuracy at any time the financial position of the 

group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also 

responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and 

detection of fraud and other irregularities. 

In so far as the directors are aware: 

• there is no relevant audit information of which the group's auditor is unaware; and 

• the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit 

information and to establish that the auditor is aware of that information. 

DONATIONS 

The group supports the charity 'Fly 2 Help' by providing pilots and the use of aircraft for an annual charity event. The 

financial value of this support is estimated at $10,000 (2009: $15,000). Other charitable donations in the year amounted 

to $20,000 (2009: $nil). 

The group makes no political donations (2009: $nil). 
GAMA GROUP LIMITED 

THE DIRECTORS' REPORT (continued) 

YEAR ENDED 31 DECEMBER 2011 

AUDITOR 

Deloitte LLP are deemed to be re-appointed under section 487(2) of the Companies Act 2006. 

Registered office: 

Business Aviation Centre 

Farnborough Airport 

Farnborough 

Hampshire 

GU146XA 

Approved by the directors on ....................................... . 

Signed by order of the directors 

D M Millington 

Company Secretary 
GAMA GROUP LIMITED 

INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF GAMA GROUP LIMITED 

YEAR ENDED 31 DECEMBER 2011 

We have audited the group and parent company financial statements ("the financial statements") of Gama Group 

Limited for the year ended 31 December 2011 on pages 7 to 25. The financial reporting framework that has been 

applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally 

Accepted Accounting Practice). 

This report is made solely to the company's shareholders, as a body, in accordance with Sections 495 and 496 of the 

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's shareholders those 

matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted 

by law, we do not accept or assume responsibility to anyone other than the company and the company's shareholders 

as a body, for our audit work, for this report, or for the opinions we have formed. 

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITOR 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for 

the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility 

is to audit and express an opinion on the financial statements in accordance with applicable law and International 

Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's 

(APB's) Ethical Standards for Auditors. 

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS 

A description of the scope of an audit of financial statements is provided on the APB's website at 

www.frc.org.uk!apb/scope/private.dm. 

OPINION ON FINANCIAL STATEMENTS 

In our opinion the financial statements: 

• give a true and fair view of the state of the group's and parent company's affairs as at 31 December 2011 and of 

the group's loss for the year then ended; 

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

• have been prepared in accordance with the requirements of the Companies Act 2006. 

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 

In our opinion the information given in the Directors' Report for the financial year for which the financial statements are 

prepared is consistent with the financial statements. 

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to 

you if, in our opinion: 

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have 

not been received from branches not visited by us; or 

• the parent company financial statements are not in agreement with the accounting records and returns; or 

• certain disclosures of directors' remuneration specified by law are not made; or 

• we have not received all the information and explanations we require for our audit. 

Chartered Accountants 

Crawley 

GRAHAM PICKETT FCA (Senior 

Statutory Auditor) 

For and on behalf of 

DELOITTE LLP 

Chartered Accountants 

& Statutory Auditor 
GAMA GROUP LIMITED 

GROUP PROFIT AND LOSS ACCOUNT 

YEAR ENDED 31 DECEMBER 2011 

GROUP TURNOVER 

Cost of sales 

GROSS PROFIT 

Administrative expenses 

OPERATING LOSS 

Share of associate operating loss 

Note 

2 

4 

TOTAL OPERATING LOSS: GROUP AND SHARE OF ASSOCIATES 

Interest payable and similar charges 7 

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION 

Tax on loss on ordinary activities 8 

LOSS ON ORDINARY ACTIVITIES AFTER TAXATION 

Minority interests 

LOSS ATIRIBUTABLE TO MEMBERS OF THE PARENT 

COMPANY 9 

LOSS FOR THE FINANCIAL YEAR 

2011 

$000 

174,613 

160,277 

14,336 

15,270 

(934) 

(119) 

(1,053) 

1,340 

(2,393) 

365 

(2,758) 

(28) 

(2,730) 

(2,730) 

All of the activities of the group are classed as continuing. 

The group has no recognised gains or losses other than the results for the 

year as set out above. 

The company has taken advantage of section 408 of the Companies Act 2006 

not to publish its own Profit and Loss Account. 

The notes on pages 12 to 25 form part of these financial statements. 

2010 

$000 

152,525 

136,830 

15,695 

24,853 

(9,158) 

(7) 

(9,165) 

1,336 

(10,501) 

(2,789) 

(7,712) 

(7) 

(7,705) 

(7,705) 
GAMA GROUP LIMITED 

GROUP BALANCE SHEET 

31 DECEMBER 2011 

FIXED ASSETS 

Intangible assets 

Tangible assets 

Investments 

CURRENT ASSETS 

Stocks 

Debtors 

Cash at bank 

CREDITORS: Amounts falling due within 

one year 

NET CURRENT LIABILITIES 

TOTAL ASSETS LESS CURRENT LIABILITIES 

CREDITORS: Amounts falling due after 

more than one year 

PROVISIONS FOR LIABILITIES 

Deferred taxation 

MINORITY INTERESTS 

CAPITAL AND RESERVES 

Called-up equity share capital 

Share premium account 

Other reserves 

Profit and loss account 

SHAREHOLDERS' FUNDS 

2011 

Note $000 

10 

11 

12 

13 S,978 

14 31,897 

2,S70 

40,445 

15 63,329 

16 

18 

24 

25 

25 

25 

26 

2010 

$000 $000 $000 

3,400 2,248 

24,101 26,831 

213 331 

27,714 29,410 

4,374 

49,011 

3,890 

57,275 

61,274 

(22,884) (3,999) 

4,830 25,411 

3,315 21,396 

996 597 

519 3,418 

(18) 10 

537 3,408 

238 238 

15,409 

10 10 

289 (12,249) 

537 3,408 

These financial statements were approved by the directors and authorised for issue on ........................................ , and are 

signed on their behalf by: 

GA Khalek 

Director 

The notes on pages 12 to 25 form part of these financial statements. 
GAMA GROUP LIMITED 

BALANCE SHEET 

31 DECEMBER 2011 

FIXED ASSETS 

Investments 

CURRENT ASSETS 

Debtors 

CREDITORS: Amounts falling due within 

one year 

NET CURRENT ASSETS 

TOTAL ASSETS LESS CURRENT LIABILITIES 

PROVISIONS FOR LIABILITIES 

Deferred taxation 

CAPITAL AND RESERVES 

Called-up equity share capital 

Share premium account 

Other reserves 

Profit and loss account 

SHAREHOLDERS' FUNDS 

Note 

12 

14 

15 

18 

24 

25 

25 

25 

2011 

$000 

6,243 

53 

2010 

$000 $000 $000 

8,198 8,198 

10,802 

4,428 

6,190 6,374 

14,388 14,572 

(28) (29) 

14,416 14,601 

238 238 

15,409 

10 10 

14,168 (1,056) 

14,416 14,601 

These financial statements were approved by the directors and authorised for issue on ........................................ , and are 

signed on their behalf by: 

G A Khalek 

Director 

Company Registration Number: 2790795 

The notes on pages 12 to 25 form part of these financial statements. 
GAMA GROUP LIMITED 

GROUP CASH FLOW 

YEAR ENDED 31 DECEMBER 2011 

2011 2010 

$000 $000 $000 $000 

The notes on pages 12 to 25 form part of these financial statements. 
GAMA GROUP LIMITED 

GROUP CASH FLOW 

YEAR ENDED 31 DECEMBER 2011 

The notes on pages 12 to 25 form part of these financial statements. 
GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

1. ACCOUNTING POLICIES 

Basis of accounting 

The financial statements have been prepared under the historical cost convention and in accordance with 

applicable accounting standards. 

Going concern 

The directors have performed a detailed analysis of the cash flow projections for the group as a whole covering 

the period through to the financial year ended 2015 and concluded that the group has sufficient assets, 

particularly third party receivables, to meet financing obligations as they fall due. The group has benefited from 

the impact of new contracts which commenced post year end and has modelled the positive impact of 

mitigating factors should trading conditions worsen dramatically. 

The directors are therefore of the opinion that in all reasonably foreseeable circumstances the company will 

remain a going concern for at least twelve months from the date on which these financial statements have been 

approved. Accordingly, the going concern basis has been adapted in the preparation of these financial 

statements. 

Basis of consolidation 

The consolidated financial statements incorporate the results of Gama Group Limited and all of its subsidiary 

uundertakings as at 31 December 2010 using the acquisition method of accounting. The results of subsidiary 

undertakings are included from the date of acquisition. Intra-group sales and profits are eliminated fully on 

consolidation. 

As a consolidated profit and loss account is published, a separate profit and loss account for the parent company 

is omitted from the group financial statements by virtue of the exemption provided by s408 of the Companies 

Act 2006. 

Turnover 

Turnover is stated net of VAT and trade discounts. Turnover from the sale of goods is recognised when goods are 

physically delivered to the customer. Turnover from the supply of services represents the value of services 

provided under contracts to the extent that there is a right to consideration and is recorded at the value of the 

consideration due. Where a contract has only been partially completed at the balance sheet date, turnover 

represents the value of the service provided to date based on a a proportion of the total contract value. Where 

payments are received from customers in advance of services provided, the amounts are recorded as deferred 

income and included as part of creditors. 

Goodwill 

Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair 

value of the consideration over the fair value of the identifiable assets and liabilities acquired is capitalised and 

written off in equal instalments over its estimated useful economic life of 20 years. Provision is made for any 

impairment on an immediate basis. 

Negative goodwill is similarly included in the balance sheet and is credited to the profit and loss account in the 

periods in which the acquired non-monetary assets are recovered through depreciation or sale. Negative 

goodwill on excess of the fair values of the non-monetary assets acquired is credited to the profit and loss 

account in the periods expected to benefit. 

Amortisation 

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful 

economic life of that asset as follows: 

Intangible Fixed Assets 

20 years on a straight line basis 

Fixed assets 

All fixed assets are recorded at cost, net of depreciation, and any fair value adjustment for impairment. 
GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

1. ACCOUNTING POLICIES (continued) 

Stocks 

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow 

moving items. 

Work in progress 

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of 

activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the 

valuation of work in progress. 

Leasing and hire purchase commitments 

The Group as lessee 

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of 

the asset have passed to the company, and hire purchase contracts, are capitalised in the balance sheet and are 

depreciated over their useful lives. The capital elements of future obligations under the leases and hire purchase 

contracts are included as liabilities in the balance sheet. 

The interest elements of the rental obligations are charged in the profit and loss account over the periods of the 

leases and hire purchase contracts and represent a constant proportion of the balance of capital repayments 

outstanding. 

All other leases are treated as operating leases. Their annual rentals are charged to the profit and loss account 

on a straight-line basis over the term of the lease. 

The Group as lessor 

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. 

Pension costs 

The group operates defined contribution pension schemes for qualifying employees. The assets of the schemes 

are held separately from those of the Group in funds under the control of the trustees. Contributions to the 

group's defined contribution pension scheme are charged to the profit and loss account in the year in which they 

become payable. 
GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

1. ACCOUNTING POLICIES (continued) 

Taxation 

Current tax, including UK tax and foreign tax, is provided at amounts expected to be paid (or recovered) using 

the tax rates and laws that have been enacted or substantially enacted by the balance sheet date. 

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the 

balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay 

more or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are 

differences between the group's taxable profits and its results as stated in the financial statements that arise from 

the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised 

in the financial statements. 

A net deferred tax asset is regarded as recoverable and therefore recognised only to the extent that, on the basis 

of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from 

which the future reversal of the underlying timing differences can be deducted. 

Deferred tax is not recognised when fixed assets are revalued unless by the balance sheet date there is a binding 

agreement to sell the revalued assets and the gain or loss expected to arise on the sale has been recognised in 

the financial statements. Neither is deferred tax recognised when fixed assets are sold if it is more likely than not 

that the taxable gain will be rolled over, being charged to tax only when the replacement assets are sold. 

Deferred tax is recognised in respect of the retained earnings of overseas subsidiaries and associates only to the 

extent that, at the balance sheet date, dividends have been accrued as receivable or a binding agreement to 

distribute past earnings in future has been entered into by the subsidiary or associate. 

Deferred tax is measured at the tax rates that are expected to apply in the periods in which timing differences are 

expected to reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. 

Deferred tax is measured on a non-discounted basis. 

Foreign currencies 

The group presents its financial statements in US Dollars as this is the principal currency in which it operates. 

Foreign currency transactions of individual companues are translated at the rates ruling when they occurred. 

Foreign curency monetary assets and liabilities are translated at thr rate of exchange ruling at the balance sheet 

date. Any differences are taken to the profit and loss account. 

The results of overseas operations are translated at the average rates of exchange during the year and the 

balance sheet translated into US Dollars at the rate of exchange ruling on the balance sheet date. Exchange 

differences which arise from translation of the opening net assets and results of foreign subsidiary undertakings 

are taken to reserves. 

Financial instruments 

Financial liabilities and equity instruments are classified according to the substance of the contractual 

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of 

the entity after deducting all of its financial liabilities. 

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar 

debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented 

as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the 

profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the 

outstanding liability. 

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability 

then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are 

debited direct to equity. 
GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

1. ACCOUNTING POLICIES (continued) 

Associates 

Enter your policy text here - enter the Heading in SparePol1 An entity is treated as an associated undertaking 

where the group has a participating interest and exercises significant influence over its operating and financial 

policy decisions. 

In the group accounts, interests in associated undertakings are accounted for using the equity method of 

accounting. The consolidated profit and loss account includes the group's share of the operating results, 

interest, pre-tax results and attributable taxation of such undertakings based on audited financial statements. In 

the consolidated balance sheet, the interests in associated undertakings are shown as the group's share of the 

identifiable net assets, including any una mortised premium paid on on acquisition. 

Any premium on acquisition is dealt with under the goodwill policy. 

Segmental analysis 

In the opinion of the directors, the disclosure of any information required by SSAP25 or Companies Act 2006 

would be seriously prejudicial to the interests of the group and company. 

2. TURNOVER 

The turnover and loss before tax are attributable to the one principal activity of the group. 

An analysis ofturnover is given below: 

United Kingdom 

3. OTHER OPERATING INCOME 

4. OPERATING LOSS 

Operating loss is stated after charging/{crediting): 

Amortisation of intangible assets 

Depreciation of owned fixed assets 

Depreciation of assets held under hire purchase agreements 

(Profit)/Loss on disposal of fixed assets 

Operating lease costs: 

-Plant and equipment 

Net loss on foreign currency translation 

Auditor's remuneration -other fees 

Auditor's remuneration- other fees: 

-Audit ofthe company's annual audit 

-Audit of the company's subsidiaries pursuant to legislation 

2011 

$000 

174,613 

2011 

$000 

2011 

$000 

294 

2,782 

(14) 

7,611 

272 

2011 

$000 

2010 

$000 

152,525 

2010 

$000 

2010 

$000 

127 

2,217 

602 

118 

4,068 

1,696 

125 

2010 

$000 

56 

69 

125 
GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

5. PARTICULARS OF EMPLOYEES 

The average number of staff employed by the group during the financial year amounted to: 

6. 

7. 

2011 

No 

Operations and administration 

Pilots and cabin crew 

Aircraft engineering 

The aggregate payroll costs of the above were: 

2011 

$000 

Wages and salaries 

Social security costs 

Other pension costs 

DIRECTORS' REMUNERATION 

The directors' aggregate remuneration in respect of qualifying services were: 

Remuneration receivable 

Value of company pension contributions to money purchase 

schemes 

Remuneration of highest paid director: 

Total remuneration (excluding pension contributions) 

Value of company pension contributions to money purchase 

schemes 

2011 

$000 

2011 

$000 

The number of directors who accrued benefits under company pension schemes was as follows: 

2011 

No 

Money purchase schemes 

INTEREST PAYABLE AND SIMILAR CHARGES 

2011 

$000 

Interest payable on bank borrowing 188 

Finance charges 19 

Other similar charges payable 1,133 

1,340 

2010 

No 

83 

100 

106 

289 

2010 

$000 

18,140 

2,723 

778 

21,641 

2010 

$000 

673 

91 

764 

2010 

$000 

213 

50 

263 

2010 

No 

3 

2010 

$000 

64 

977 

295 

1,336 
GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

8. TAXATION ON ORDINARY ACTIVITIES 

(a) Analysis of charge in the year 

Current tax: 

In respect of the year: 

UK Corporation tax based on the results for the year at-% 

(2010--%) 

(Over)/under provision in prior year 

Total current tax 

Deferred tax: 

Origination and reversal oftiming differences 

Tax on loss on ordinary activities 

2011 

$000 

365 

365 

365 

2010 

$000 

(7) 

63 

56 

(2,845) 

(2,789) 

Deferred tax assets of $******* (2008 - $3,035,562)have not been recognised due to the uncertainty of future 

profits against which to offset this asset being available. 

(b) Factors affecting current tax charge 

Loss on ordinary activities before taxation 

Loss on ordinary activities by rate of tax 

Expenses not deductible for tax purposes 

Capital allowances for period in excess of depreciation 

Utilisation of tax losses 

Adjustments to tax charge in respect of previous periods 

Effect oftax rates in different jurisdictions 

Total current tax (note 8(a)) 

9. LOSS ATTRIBUTABLE TO MEMBERS OF THE PARENT COMPANY 

2011 

$000 

(2,393) 

The loss dealt with in the financial statements of the parent company was $(185,000) (20 10- $427,000). 

2010 

$000 

(10,501) 

(2,940) 

2,721 

(39) 

14 

63 

237 

56 
GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

10. INTANGIBLE FIXED ASSETS 

11. TANGIBLE FIXED ASSETS 
GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

12. INVESTMENTS 

Subsidiary undertakings 

All held by the company: 

Gama Aviation Limited 

Gama Leasing Limited 

Gama Support Services Limited 

Lees Avionics Limited 

Avialogistics Limited 

Airops Limited 

Gam a Group Inc. 

Country of 

incorporation Holding 

Great Britain Ordinary 

Great Britain Ordinary 

Great Britain Ordinary 

Great Britain Ordinary 

Great Britain Ordinary 

Great Britain Ordinary 

USA Ordinary 

Proportion of 

voting rights 

and shares 

held Nature of business 

-% Air charter 

Aircraft and motor 

-% vehicle leasing 

-% Aircraft engineering 

Avionic sales, 

installation and 

-% maintenance 

Supply of aircraft 

spares, cleaning and 

-% chauffeur services 

Aviation computer 

-% software 

Avionic sales, 

installation and 

-% maintenance 
GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

Company 

$000 

13. STOCKS 

Group Company 

2011 2010 2011 2010 

$000 $000 $000 $000 

Stock 5,978 1,686 

Work in progress 2,688 

5,978 4,374 

14. DEBTORS 

Group Company 

2011 2010 2011 2010 

$000 $000 $000 $000 

Trade debtors 10,318 23,642 

Amounts owed by group undertakings 1,522 6,051 9,239 

Other debtors 3,968 3,888 192 1,563 

Prepayments and accrued income 16,089 21,481 

31,897 49,011 6,243 10,802 

All amounts shown under debtors fall due for payment within one year. Other debtors in 2010 include amounts 

owed by the directors. 

15. CREDITORS: Amounts falling due within one year 

Bank loans 

Trade creditors 

Amounts owed to group undertakings 

Hire purchase agreements 

Group 

2011 

$000 

18,812 

18,949 

6,418 

Other creditors including taxation and social security: 

Corporation tax 

Other taxation and social security 

Other creditors 

Accruals and deferred income 

1,537 

8,127 

9,486 

63,329 

2010 

$000 

7,960 

27,059 

2,359 

882 

1,201 

8,611 

13,202 

61,274 

Company 

2011 

$000 

14 

39 

53 

The bank loans and overdrafts are secured by a revolving fixed charge over certain assets of the group. 

2010 

$000 

2,965 

1,419 

44 

4,428 

Other loans and hire purchase agreements are secured by way of first legal charges on the group's fixed assets. 

Other creditors in 2009 include amounts owed to the directors. 
GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

16. CREDITORS: Amounts falling due after more than one year 

Group 

2011 

$000 

Bank loans 3,266 

Hire purchase agreements 49 

2010 

$000 

14,992 

6,404 

3~15 21~96 

Loans include: 

Company 

2011 

$000 

2010 

$000 

£1.5 million (2009: £1.5 million), which has no fixed repayment term and carries an interest rate of 9.5% per 

annum. 

$20.6 million (2009: $25.1 million) secured against aircraft. The borrowings are a mix of variable and fixed 

interest rate debt with repayment periods not exceeding five years. 

17. COMMITMENTS UNDER HIRE PURCHASE AGREEMENTS 

Future commitments under hire purchase agreements are as follows: 

Amounts payable within 1 year 

Amounts payable between 2 to 5 years 

18. DEFERREDTAXATION 

Group 

2011 

$000 

The movement in the deferred taxation provision during the year was: 

Group 

2011 

$000 

Provision/ Asset brought forward 597 

lncrease/(Decrease) in provision 399 

Provision/ Asset carried forward 996 

2010 

$000 

882 

6,404 

7,286 

2010 

$000 

3,442 

(2,845) 

597 

Company 

2011 

$000 

Company 

2011 

$000 

(29) 

1 

(28) 

2010 

$000 

2010 

$000 

(29) 

(29) 

The group's provision for deferred taxation consists of the tax effect of timing differences in respect of: 

Group 

Excess oftaxation allowances over 

depreciation on fixed assets 

2011 

Provided 

$000 

996 

Unprovided 

$000 

2010 

Provided 

$000 

597 

Unprovided 

$000 

The company's provision for deferred taxation consists of the tax effect of timing differences in respect of: 

Company 2011 2010 

Provided Unprovided Provided Unprovided 

$000 $000 $000 $000 

Excess oftaxation allowances over 

depreciation on fixed assets (28) (29) 
GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

19. ACQUISITIONS 

20. COMMITMENTS UNDER OPERATING LEASES 

At 31 December 2011 the group had annual commitments under non-cancellable operating leases as set out 

below. 

Group 

Operating leases which expire: 

Within 1 year 

Within 2 to 5 years 

After more than 5 years 

21. CONTINGENCIES 

Land and buildings 

2011 

$000 

2010 

$000 

47 

1,507 

333 

1,887 

The group's banking facilities are secured by a fixed and floating charge over the assets of the company and its 

subsidiary undertakings. The directors consider it highly improbable that any liability will crystallise as a result of 

this composite company multilateral guarantee. 

Following the acquisition of Avialogistics Limited in 2009, the group is subject to a put option which, if exercised, 

would require the group to purchase the minority interest shareholding in Avialogistics for consideration 

equivalent to 20%-30% ofthe turnover of that company based on the most recent financial statements. The put 

option expires 3 years after the acquisition of Avialogistics Limited. The turnover of Avialogistics for 2010 was 

£649,000. 

22. TRANSACTIONS WITH THE DIRECTORS 

As at 31 December 2010, Mr G A Khalek owed the group $339,322 (2009: $1,883,124 owed to Mr G A Khalek) in 

the form of a director's loan account, being funds advanced by the group. The loan is due on demand, is interest 

free and unsecured. 

As at 31 December 2010, the group owed Mr M A Khalek $227,058 (2009: £509,018) in the form of a director's 

loan account, being funds advanced to the group. The loan is due on demand, is unsecured and interest free. 
GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

23. RELATED PARTY TRANSACTIONS 

24. 

Control 

The company was under the control of Mr M A Khalek and Mr G A Khalek, both of whom are Directors of the 

company throughout the current year. 

Group 

During the year the group paid operating rentals totalling $377,648 (2009: $419,972)to lease an aircraft, G-ZXZX, 

from Zulu X-Ray Services Limited. Mr G A Khalek controls 2S% of the voting rights of Zulu X-Ray Services Limited. 

During the year, net charges of $1,270,000 (2009: $144,140) were made to Gama Charters Inc, a company 

registered in the USA, and under the control of Mr M A Khalek and Mr G A Khalek. As at 31 December 2010, the 

group was owed $61,000 (2009: $90,441) by Gam a Charters, Inc. 

During the year, the group made net sales of $4,407,000 (2009: $3,690,000) to Crescent Investment LLC, which 

holds an investment in Gama Holdings FZC, the ultimate parent company. As at 31 December 2010, the company 

was owed $9S3,000 (2009: $241 ,000) by Crescent Investment LLC. 

During the year, the group made stock purchases of $365,4S6 (2009: $249,712) from the special purpose vehicle 

set up by Mr M A Khalek. As at 31 December, the company owed $81,934 (2009: $249,712) to the special purpose 

vehicle. 

As permitted by Financial Reporting Standard 8, Related Party Disclosures, no disclosures have been made in 

respect of transactions or balances in respect of wholly owned subsidiaries of the Company. 

As permitted by Financial Reporting Standard 8, Related Party Disclosures, no disclosures have been made in 

respect of transactions or balances in respect of wholly owned subsidiaries of the group. 

Company 

As permitted by Financial Reporting Standard 8, Related Party Disclosures, no disclosures have been made in 

respect of transactions or balances in respect of wholly owned subsidiaries of the group. 

SHARE CAPITAL 

Authorised share capital: 

2011 2010 

$000 $000 

120,000 Ordinary£ 1 shares of $1 each 120 120 

Allotted and called up: 

2011 2010 

No $000 No $000 

120,000 Ordinary£ 1 shares of $1 each 120,000 120 120,000 120 
GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

25. RESERVES 

Group 

Balance brought forward 

Loss for the year 

Currency translation differences 

Other movements 

Elimination of share premium 

Balance carried forward 

Company 

Balance brought forward 

Loss for the year 

Other movements 

Elimination of share premium 

Balance carried forward 

Share premium 

account 

$000 

15,409 

(15,409) 

Share premium 

account 

$000 

15,409 

(15,409) 

26. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS 

2011 

$000 

Loss for the financial year (2,730) 

Less Elimination of share premium 15,409 

12,679 

Currency translation differences (142) 

Elimination of share premium (15,409) 

(2,872) 

Net reduction to shareholders' funds (2,872) 

Opening shareholders' funds 3,409 

Closing shareholders' funds 537 

Capital 

redemption Profit and loss 

reserve account 

$000 $000 

10 (12,248) 

(2,730) 

(142) 

15,409 

10 289 

Capital 

redemption Profit and loss 

reserve account 

$000 $000 

10 (1,056) 

(185) 

15,409 

10 14,168 

2010 

$000 

(7,705) 

(7,705) 

(75) 

(7,780) 

(7,780) 

11,188 

3,408 
I 

~ 

I 

GAMA GROUP LIMITED 

NOTES TO THE FINANCIAL STATEMENTS 

YEAR ENDED 31 DECEMBER 2011 

27. POST BALANCE SHEET EVENTS 

On 27 May 2011 Gama Group Limited agreed to acquire the trade and assets of Mann Aviation Group 

Engineering (In Administration) Ltd ('MAGE') for £400,000. MAGE is based at Fairoaks Airport in Surrey and is a 

well-established maintenance and repair organisation with a speciality in rotary and general aviation aircraft. In 

addition, the company also holds approvals that complement those of Gama Support Services Limited and 

significantly strengthens Gama's ability to support a wider range of civilian and military aircraft. Under the 

terms of the agreement Gama and the Administrators have agreed a delayed delivery and transfer of ownership 

to allow the transfer of CAA approvals and lease obligations in an orderly manner. Until delivery and transfer of 

ownership takes place Gama is acting as agents for the Administrators, taking financial responsibility for the 

company from 27 May 2011. 

On 7 September 2011, the shareholders of the company passed a special resolution reducing the share premium 

account to £nil. Had this resolution been passed at the 31 December 2010 the impact on the company balance 

sheet would have been as follows: 
Gama Group Limifed 

Report and Consolidated Rnancial Statements 

Year Ended 

31 December 2010 

Company Number 02790795 
Contents 

Page: 

- ------ ----.- ---------

Report and consolidated financial statements 

for the year ended 31 December 2010 

2 Report of the directors 

6 Directors' responsibilities 

7 Independent auditor's report 

8 Consolidated profit and loss account 

9 Consolidated statement of total recognised gains and losses 

10 Group and company reconciliation of shareholders' funds 

11 Consolidated balance sheet 

12 Company balance sheet 

13 Consolidated cash flow statement 

14 Notes to the financial statements 

Directors 

G A Khalek 

M A Khalek 

S P Wright 

D MMillington 

M MSukkar 

J Foley 

Secretary and registered office 

D M Millington 

Business Aviation Centre 

Farnborough Airport 

Famborough 

Hampshire 

GU14 6XA 

Company number 

02790795 

AudHors 

Deloitte LLP 

Chartered Accountants 

Crawley 
------ ----.----------

Directors' report 

for the year ended 31 December 201 0 

The directors present their report together with the audited financial statements for the year ended 31 

December 201 0. 

The principal activity of the group during the year was that of air transport contractors, leasing and 

aircraft engineering. 

During the year, the group acquired the entire share capital of Gama Aviation SA, a Swiss registered 

company, engaging in the provision of professional services and personnel for a nominal sum. 

The directors have observed that as a result of the current economic downturn, market values for 

second hand aircraft have fallen and the number of distress sales has lowered the resale value of small 

and medium sized business aircraft. As a result the Group undertook a detailed impairment review and 

determined that an impairment of $9,300,000 should be recorded against the carrying value of the 

Group's aircraft fleet. 

Given the difficult and unpredictable trading conditions experienced during the year, the directors are 

satisfied with the results of the group and the financial position at the year end. The aircraft 

management business has expanded during the year with new clients joining our roster. The charter 

market has been more challenging and the directors forecast the performance in 201 1 to be similar to 

that in 201 0. 

The key financial performance indicators for the group are as follows: 

2010 2009 

Turnover {US$'000) 152,525 135,763 

Gross margin {%) 10.3 8.9 

Operating {loss)/profit {US$'000) {9, 158) 1,070 

EBITDA* (US$'000) 3,088 4,096 

Cash {US$'000) 3,890 3,561 

Net assets {US$'000) 3,418 11,205 

*Earnings before interest, tax, depreciation, amortisation and impairment 

The management team regularly review a number of non-financial indicators to gather a more rounded 

view of the Group's performance. These include: 

2010 2009 

Total hours flown 13,509 13,223 

Total sectors flown 13,028 13,920 

Aircraft owned and/or under management 63 57 

The directors have not recommended a dividend {2009: $nil). 

2 
- .- ---- --- - --

Directors' report (continued) 

for the year ended 31 December 2010 

PRINCIPAL RISKS AND UNCERTAINTIES 

The directors consider the principal risks to the business are: 

* Poor operational performance damaging the group's reputation 

* Changes in economic climate that make private air transport less attractive 

* Increasing regulatory burden and costs of compliance 

Damage to the group's reputation 

The group's reputation for safety, reliability and high service standards is essential for maintaining 

customer loyalty and ensuring premium pricing levels. The group has systems and monitoring processes 

in place to ensure that high standards are maintained across all aspects of the group, including 

customer-facing crew as well as back-office operational staff. The group carefully reviews any 

deviations from these standards and implements changes to prevent recurrence. 

Changes in economic climate 

The group offers air transportation services that provide far greater flexibility, discretion and levels of 

service than is possible with general aviation services. The directors recognise that in a recessionary 

economic climate there may be pressure on customers to reduce their use of private aviation services. 

The directors mitigate this risk by regularly reviewing current and anticipated activity levels and ensuring 

that the Group's cost base is aligned with the expected level of activity going forward. 

Regulatory burden and costs of compliance 

To ensure very high levels of safety, the aviation industry has significant and complex regulation to 

cover training, engineering, safety and operations. Breaches of regulations are likely to lead to 

sanctions such as suspension of operations or other restrictions. The directors believe that the regulatory 

burden is likely to increase over time and have members of staff dedicated to liaising with the various 

regulatory bodies. In addition, staff are regularly trained and appraised to ensure their understanding 

and compliance. 

FINANCIAL INSTRUMENTS 

Financial risk management objectives and policies 

The group's principal financial instruments comprise: 

* Bank balances: 

*Trade creditors: 

* Trade debtors: and 

* Finance lease agreements 

The main purpose of these instruments is to raise and maintain sufficient funds to finance the group's 

operations. 

Due to the nature of the financial instruments used by the group there is no exposure to price risk. The 

Group's activities expose it to the financial risks of changes in foreign currency (primarily sterling and 

euro) and interest rate changes. The Group does not use derivative financial instruments to hedge 

these risks. The group's approach to managing other risks applicable to the financial instruments 

concerned is shown below. 

Bank balances 

The group has no formal overdraft facility as the forecasts regularly reviewed by directors do not 

anticipate short-term funding requirements. General liquidity risk is managed by maintaining weekly 

cash forecasts to ensure positive cash balances. 

3 
- ----- -- - - - - .- ---- ---- -

Directors' report (continued) 

for the year ended 31 December 2010 

Trade creditors 

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. 

Trade debtors 

Trade debtors are managed in respect of credit and cash flow by regular review of aged debtors and 

our customers' credit rating. Cash flow risk is mitigated by requiring up-front payment for much of the 

group's work and short credit terms for all other customers. Provisions are made against any amount for 

which the recoverability is uncertain. 

finance leases 

The group is a lessee in respect of a number of finance leased assets, mainly aircraft. The company 

manages the liquidity risk by ensuring there are sufficient funds to meet payments. 

DIRECTORS 

The directors who served the company throughout the year, except where otherwise stated, were as 

follows: 

G A Khalek 

M A Khalek 

S P Wright 

D M Millington 

M M Sukkar 

J Foley (appointed 7 July 2010) 

DIRECTORS' INDEMNITY INSURANCE 

The group has made qualifying third party indemnity provisions for the benefit of its directors which were 

in place during the year and to the date of this report. 

DONATIONS 

The group supports the charity 'Fly 2 Help' by providing pilots and the use of aircraft for an annual 

charity event. The financial value of this support is estimated at $10,000 (2009: $15,000). Other 

charitable donations in the year amounted to $20,000 (2009: $nil). 

The group makes no political donations (2009: $nil). 

DISABLED EMPLOYEES 

The company gives full consideration to applications for employment from disabled persons where the 

requirements of the jobs can be adequately fulfilled by a handicapped or disabled person. Where an 

existing employee becomes disabled, it is the company's policy wherever practicable to provide 

continuing employment under normal terms and conditions and to provide training and career 

development and promotion to disabled employees wherever appropriate. 

EMPLOYEE INVOLVEMENT 

During the year, the policy of providing employees with information about the company has been 

continued through internal media methods in which employees have also been encouraged to 

present their suggestions and views on the company's performance. Regular meetings are held 

between local management and employees to allow a free flow of information and ideas. 

4 
- -... - -. ~ -.... -·· .... -- Directors' report ( conflnued) 

for the year ended 31 December 2010 

POST BALANCE SHEET EVENTS 

On 27 May 2011 Gama Group Limited agreed to acquire the trade and assets of Mann Aviation Group 

Engineering (In Administration) Ltd ('MAGE') for £400,000. MAGE is based at Fairoaks Airport in Surrey 

and is a well-established maintenance and repair organisation with a speciality in rotary and general 

aviation aircraft. In addition, the company also holds approvals that complement those of Gama 

Support Services Limited and significantly strengthens Garno's ability to support a wider range of civilian 

and military aircraft. Under the terms of the agreement Gama and the Administrators have agreed a 

delayed delivery and transfer of ownership to allow the transfer of CAA approvals and lease obligations 

in an orderly manner. Until delivery and transfer of ownership takes place Gama is acting as agents for 

the Administrators, taking financial responsibility for the company from 27 May 2011. 

On 7 September 2011, the shareholders of the company passed a special resolution reducing the share 

premium account to £nil. Had this resolution been passed at the 31 December 2010 the impact on the 

company balance sheet would have been as follows: 

Fixed assets 

Current assets 

Creditors: Amounts falling due within one year 

Creditors: Amounts falling due after more than one year 

Provisions for liabilifles 

Capital and reserves 

Called up share capital 

Share premium account 

Other reserves 

Profit and loss account 

Minority interest 

Prior to 

special 

resoluflon 

$'000 

29,410 

57,275 

(61,274) 

(21 ,396) 

(597} 

3,418 

238 

15,409 

10 

(12,249) 

10 

3,418 

Further details are contained in note 25 to the financial statements. 

5 

Reducflonin 

share 

premium 

$'000 

(15,409) 

15,409 

After special 

resolution 

$'000 

29,410 

57,275 

(61,274) 

(21,396) 

(597) 

3,418 

238 

10 

3,160 

10 

3,148 
------ ----.----------

Directors' report (continued} 

for the year ended 31 December 2010 

GOING CONCERN 

The directors have performed a detailed analysis of the cash flow projections for the Group as a whole 

covering the period through to the financial year ended 2015 and concluded that the Group has 

sufficient assets, particularly third party receivables, to meet financing obligations as they fall due. The 

Group has benefited from the impact of new contracts which commenced post year end and has 

modelled the positive impact of mitigating factors should trading conditions worsen dramatically. 

The directors are therefore of the opinion that in all reasonably foreseeable circumstances the 

Company will remain a going concern for at least twelve months from the date on which these 

financial statements have been approved. Accordingly, the going concern basis has been adopted in 

the preparation of these financial statements. 

AUDITORS 

Each of the persons who is a director at the date of approval of this report confirms that: 

• so far as the director is aware, there is no relevant audit information of which the company's 

auditors are unaware; and 

• the director has taken all the steps that they ought to have taken as a director in order to make 

themselves aware of any relevant audit information and to establish that the company's auditors 

are aware of that information. 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of 

the Companies Act 2006. 

Deloitte LLP are deemed to be re-appointed under section 487(2) of the Companies Act 2006. 

Registered office: 

Business Aviation Centre 

Famborough Airport 

Farnborough 

Hampshire 

GU14 6XA 

Approved by the directors on 26 January, 2012 

Signed by order of the directors 

DM Millington 

Company Secretary 

6 
Directors' responsibilities 

The directors are responsible for preparing the Directors' Report and the financial statements in 

accordance with applicable law and regulations. 

Company law requires the directors to prepare financial statements for each financial year. Under that 

law the directors have elected to prepare the financial statements in accordance with United Kingdom 

Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable 

law). Under company law the directors must not approve the financial statements unless they are 

satisfied that they give a true and fair view of the state of affairs of the company and the group and of 

the profit or loss of the group for that year. In preparing these financial statements, the directors are 

required to: 

• select suitable accounting policies and then apply them consistently; 

• make judgements and estimates that are reasonable and prudent; 

• state whether applicable UK Accounting Standards have been followed; and 

• prepare the financial statements on the going concern basis unless it is inappropriate to presume 

that the group will continue in business. 

The directors are responsible for keeping adequate accounting records that are sufficient to show and 

explain the group's and company's transactions and disclose with reasonable accuracy at any time 

the financial position of the group and enable them to ensure that the financial statements comply 

with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and 

hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

7 
Independent auditor's report 

for the year ended 31 December 2010 

We have audited the group and parent company financial statements ("the financial statements") of Garno 

Group Limited for the year ended 31 December 201 0 which comprise the consolidated profit and loss account, the 

consolidated and company balance sheets, the consolidated statement of total recognised gains and losses, the 

consolidated cash flow statement and notes 1 to 28. The financial reporting framework that has been applied in 

their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally 

Accepted Accounting Practice). 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the 

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members 

those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent 

permitted by law, we do not accept or assume responsibility to anyone other than the company and the 

company's members as a body, for our audit work, for this report, or for the opinions we have formed. 

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITOR 

As explained more fully in the Directors' Responsibilities statement set out within the directors' report, the directors 

are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair 

view. Our responsibility is to audit and express an opinion on the financial statements in accordance with 

applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply 

with the Auditing Practices Board's Ethical Standards for Auditors. 

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS 

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to 

give reasonable assurance that the financial statements are free from material misstatement, whether caused by 

fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group's and 

the parent company's circumstances and have been consistently applied and adequately disclosed; the 

reasonableness of significant accounting estimates made by directors; and the overall presentation of the financial 

statements. 

OPINION ON FINANCIAL STATEMENTS 

In our opinion the financial statements: 

• give a true and fair view of the state of the group's and parent company's affairs as at 31 December 2010 

and of the group's loss for the year then ended; 

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting 

Practice; and 

• have been prepared in accordance with the requirements of the Companies Act 2006. 

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006 

In our opinion the information given in the Directors' Report for the financial year for which the financial statements 

are prepared is consistent with the financial statements. 

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report 

to you if, in our opinion: 

• adequate accounting records have not been kept by the parent company, or returns adequate for our 

audit have not been received from branches not visited by us; or 

• the parent company financial statements are not in agreement with the accounting records and returns; or 

• certain disclosures of directors' remuneration specified by law are not made; or 

• we h~e. n~ all the ;nformat;on and explanat;om we requke for our audit. 

__ , ~ PICKm FCA (Senior Statutory Auditor) 

For and on behalf of 

DELOITTE LLP 

Chartered Accountants & Statutory Auditor 

Crawley 

26 January, 2012 

8 
. -- - - - - .. ----- --- - --

Consolidated profit and loss account 

for the year ended 31 December 2010 

Continuing 

Acquisitions operations 

2010 2010 Total2010 2009 

Note $'000 s·ooo $'000 $'000 

Turnover 2 3,176 149,349 152,525 135,763 

Cost of sales (2,814) (134,016) (136,830) (123,681) 

Gross profit 362 15,333 15,695 12,082 

Impairment charge 3 

Other administrative expenses 

Total administrative expenses (311) (24,542) (24,853) (11,012) 

Operating (loss)/profit 3 51 (9,209) (9,158) 1,070 

Share of operating loss in (7) (7) associates 

(Loss)/profft on ordinary 51 (9,216) (9,165) 1,070 activlHes before interest 

Other interest receivable and 3 similar income 

Interest payable and similar 6 (6) (1,330) (1,336) (1,760) charges 

(Loss) on ordinary acfiviHes 45 (10,546) (10,501) (687) before taxation 

Tax credit on loss on ordinary 7 4 2,785 2,789 794 activities 

(Loss)/profit on ordinary 49 (7,761) (7,712) 107 activities after taxaHon 

Minority interest 7 7 (3) 

(Loss)/profft for the financial 19 49 (7,754) (7,705) 104 

year attributable to shareholders 

There were no discontinued operations in either year. 

The company has taken advantage of section 408 of the Companies Act 2006 not to publish its own 

profit and loss account. 

9 
- ----- -- - - - - .- ---- --- - -

Consolidated statement of total recognised gains and losses 

for the year ended 31 December 2010 

(Loss)/profit for the financial year attributable to shareholders 

Exchange translation differences on consolidation 

Total recognised gains and losses for the financial year 

10 

Note 

19 

2010 

$'000 

(7,705) 

(75) 

(7,780) 

2009 

$'000 

104 

238 

342 
- -.--- -- - - - - .- ------- - --

Group and company reconciliaHon of shareholders' funds 

for the year ended 31 December 2010 

Group Group Company 

2010 2009 2010 

$'000 $'000 $'000 

(Loss)/profit for the financial year (7,705) 104 427 

Currency translation differences (75) 238 

Net {reduction)/additions to 

shareholders' funds (7,780) 342 427 

Opening shareholders' funds 11,188 10,846 14,174 

Closing shareholders' funds 3,408 11,188 14,601 

Company 

2009 

$'000 

(453) 

(453} 

14,627 

14,174 

Details of a significant post balance sheet event concerning the company's capital structure are 

contained in note 25 to the financial statements. 

11 
Consolidated balance sheet 

as at 31 December 2010 

Note 2010 2010 2009 2009 

$'000 $'000 $'000 $'000 

As restated As restated 

-see note 16 -see note 16 

Fixed assets 

Negative goodwill 9 (181) - Other I intangible assets 9 2,429 2,402 

Intangible assets 9 2,248 2,402 

Tangible assets 10 26,831 42,338 

Investments in associates 11 331 339 

29,410 45,079 

Current assets 

Stocks 12 4,374 1,714 

Debtors 13 49,011 52,113 

Cash at bank and in hand 3,890 3,561 

57,275 57,388 

Creditors: amounts falling due 

within one year 14 (61,274} (55,811) 

Net current (liabllities}/assets (3,999) 1,577 

Total assets less current liabilities 25,411 46,656 

Creditors: amounts falling due 

after more than one year 15 (21,396) (32,009} 

Provision for liabilities 17 (597} (3,442) 

(21,993) (35,451) 

Net assets 3,418 11,205 

Capital and reserves 

Called up share capital 18 238 238 

Share premium account 19 15,409 15,409 

Other reserves 19 10 10 

Profit and loss account (deficit) 19 (12,249} (4,469} 

Shareholders' funds 3,408 11,188 

Minority interests 10 17 

3,418 11,205 

The financial statem ts were approved by the Board of Directors and authorised for issue on 

26 January, 2012. 

12 
Company balance sheet 

as at 31 December 2010 

Note 2010 2010 2009 2009 

$'000 $'000 $'000 $'000 

Fixed assets 

Fixed asset investments 11 8,198 8,198 

Current assets 

Debtors 13 10,831 9,556 

Creditors: amounts falling due 

within one year 14 (4,428) (3,580} 

Net current assets 6,403 5,976 

Net assets 14,601 14,174 

Capital and reserves 

Called up share capital 18 238 238 

Share premium account 19 15,409 15,409 

Other reserves 19 10 10 

Profit and loss account (deficit) 19 (1,056) (1,483) 

Shareholders' funds 14,601 14,174 

The financial statements of Garno Group Limited, registered number 02790795 were approved by the 

board of directors and authorised for issue on Zf>January, 2012 

The~ed on its behalf by: 

D M Millington, Director 

13 
- . - - .- --

Consolidated cash flow statement 

for the year ended 31 December 2010 

Note 2010 2009 

$'000 $'000 

Net cash inflow from operating activities 26 8,084 4,610 

Returns on investments and servicing of finance 

Interest received 3 

Interest paid (1,336) (1,760) 

(1,336) (1 ,757) 

Tax recovered/(paid) 58 (149) 

Capital expenditure and financial investment 

Payments to acquire tangible fixed assets (340) (1,676) 

Payments to acquire investments (339) 

Receipts from sale of fixed assets 731 26 

391 (1 ,989) 

Cash inflow before financing 7,197 715 

Financing 

Capital element of hire purchase (945) (1,988) 

Net (outflow)/inflow from other long-term creditors (5,798) 689 

(6,743) (l ,299) 

Increase/( decrease) in cash 27,28 454 (584) 

14 
1 Accounting policies 

- ----- -- --.- ---------

Notes to the financial statements 

for the year ended 31 December 2010 

The financial statements have been prepared under the historical cost convention and 

are in accordance with applicable United Kingdom accounting standards, except of 

the matter referred to in note 16. 

The following principal accounting policies have been applied consistently throughout 

the current and preceding financial years: 

Basis of consolidation 

The consolidated financial statements incorporate the results of Gama Group Limited 

and all of its subsidiary undertakings as at 31 December 2010 using the acquisition 

method of accounting. The results of subsidiary undertakings are included from the date 

of acquisition. Intra-group sales and profits are eliminated fully on consolidation. 

As a consolidated profit and loss account is published, a separate profit and loss 

account for the parent company is omitted from the group financial statements by 

virtue of the exemption provided by s408 of the Companies Act 2006. 

Going concern 

The directors have performed a detailed analysis of the cash flow projections for the 

Group as a whole covering the period through to the financial year ended 2015 and 

concluded that the Group has sufficient assets, particularly third party receivables, to 

meet financing obligations as they fall due. The Group has benefited from the impact 

of new contracts which commenced post year end and has modelled the positive 

impact of mitigating factors should trading conditions worsen dramatically. 

The directors are therefore of the opinion that in all reasonably foreseeable 

circumstances the Company will remain a going concem for at least twelve months 

from the date on which these financial statements have been approved. Accordingly, 

the going concern basis has been adopted in the preparation of these financial 

statements. 

Turnover 

Tumover is stated net of VAT and trade discounts. Tumover from the sale of goods is 

recognised when the goods are physically delivered to the customer. Tumover from the 

supply of services represents the value of services provided under contracts to the 

extent that there is a right to consideration and is recorded at the value of the 

consideration due. Where a contract has only been partially completed at the balance 

sheet date tumover represents the value of the service provided to date based on a 

proportion of the total contract value. Where payments are received from customers in 

advance of services provided, the amounts are recorded as deferred income and 

included as part of creditors. 

15 
- --- - - -- - - - - .- --- - --- - --

Notes to the financial statements (continued) 

for the year ended 31 December 2010 

1 Accounting policies (continued} 

Goodwill 

Goodwill arising on an acquisition of a subsidiary undertaking, representing any excess 

of the fair value of the consideration over the fair value of the identifiable assets and 

liabilities acquired is capitalised and is written off in equal instalments over its estimated 

useful economic life of 20 years. Provision is made for any impairment on an immediate 

basis. 

Negative goodwill is similarly included in the balance sheet and is credited to the profit 

and loss account in the periods in which the acquired non-monetary assets are 

recovered through depreciation or sale. Negative goodwill on excess of the fair values 

of the non-monetary assets acquired is credited to the profit and loss account in the 

periods expected to benefit. 

Intangible assets - development 

Development expenditure is written off as incurred, except where the directors are 

satisfied as to the technical, commercial and financial viability of individual projects. In 

such cases, the identifiable expenditure is deferred and amortised over the period 

during which the group is expected to benefit. This period is between three and five 

years. Provision is made for any impairment. 

Associates 

An entity is treated as an associated undertaking where the group has a participating 

interest and exercises significant influence over its operating and financial policy 

decisions. 

In the group accounts, interests in associated undertakings are accounted for using the 

equity method of accounting. The consolidated profit and loss account includes the 

group's share of the operating results, interest, pre-tax results and attributable taxation of 

such undertakings based on audited financial statements. In the consolidated balance 

sheet, the interests in associated undertakings are shown as the group's share of the 

identifiable net assets, including any unamortised premium paid on acquisition. 

Any premium on acquisition is dealt with under the goodwill policy. 

Fixed assets 

All fixed assets are recorded at cost, net of depreciation, and any fair value adjustment 

for impairment. 

Depreciation is provided to write off the cost, less estimated residual values, of all 

tangible fixed assets evenly over their expected useful lives. It is calculated at the 

following rates: 

Leasehold land and buildings 

Aircraft 

Fixtures, fittings and equipment 

Motor vehicles 

over length of lease 

5- 1 0 % depending on age on acquisition 

20 - 30 % per annum 

20 % per annum 

16 
- ----- -- - -.- -------- -

Notes to the financial statements (continued) 

for the year ended 31 December 2010 

1 Accounting policies (continued) 

Investments 

Investments held as fixed assets are stated at cost less any provision for impairment. 

Impairment of fixed assets 

At each balance sheet date, the Group reviews the carrying amounts of its fixed assets 

to determine whether there is any indication that those assets have suffered an 

impairment loss. If any such indication exists, the recoverable amount of the asset is 

estimated to determine the extent of the impairment loss (if any). Where the asset does 

not generate cash flows that are independent from other assets, the group estimates 

the recoverable amount of the cash-generating unit to which the asset belongs. 

Recoverable amount is the higher of fair value less costs to sell and value in use. In 

assessing value in use, the estimated future cash flows are discounted to their present 

value using a pre-tax discount rate that reflects current market assessments of the time 

value of money and the risks specific to the asset for which the estimates of future cash 

flows have not been adjusted. 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less 

than its carrying amount, the carrying amount of the asset (or cash-generating unit) is 

reduced to its recoverable amount. An impairment loss is recognised immediately in 

profit or loss. 

Where an impairment loss subsequently reverses, the carrying amount of the asset (or 

cash generating unit) is increased to the revised estimate of its recoverable amount, but 

so that the increased carrying amount does not exceed the carrying amount that 

would have been determined had no impairment loss been recognised for the asset (or 

cash-generating unit) in prior years. A reversal of impairment loss is recognised 

immediately in profit or loss. 

Stocks 

Stocks are valued at the lower of cost and net realisable value, after making due 

allowance for obsolete and slow moving items. 

Foreign currency 

The Group presents its financial statements in US Dollars as this is the principal currency in 

which it operates. 

Foreign currency transactions of individual companies are translated at the rates ruling 

when they occurred. Foreign currency monetary assets and liabilities are translated at 

the rate of exchange ruling at the balance sheet date. Any differences are taken to 

the profit and loss account. 

The results of overseas operations are translated at the average rates of exchange 

during the year and the balance sheet translated into US dollars at the rate of 

exchange ruling on the balance sheet date. Exchange differences which arise from 

translation of the opening net assets and results of foreign subsidiary undertakings are 

taken to reserves. 

17 
Notes to the financial statements (continued) 

for the year ended 31 December 2010 

1 Accounting policies (continued} 

Financial instruments 

Financial liabilities and equity instruments are classified according to the substance of 

the contractual arrangements entered into. An equity instrument is any contract that 

evidences a residual interest in the assets of the entity after deducting all of its financial 

liabilities. 

Where the contract obligations of financial instruments (including share capital) are 

equivalent to a similar debt instrument, those financial instruments are classed as 

financial liabilities. Financial liabilities are presented as such in the balance sheet. 

Finance costs and gains or losses relating to financial liabilities are included in the profit 

and loss account. Finance costs are calculated so as to produce a constant rate of 

return on the outstanding liability. 

Where the contractual terms of share capital do not have any terms meeting the 

definition of a financial liability, then this is classed as an equity instrument. Dividends 

and distributions relating to equity instruments are debited directly to equity. 

Taxation 

Current tax, including UK corporation tax and foreign tax, is provided at amounts 

expected to be paid (or recovered) using the tax rates and laws that have been 

enacted or substantively enacted by the balance sheet date. 

Deferred tax balances are recognised in respect of all timing differences that have 

originated but not reversed where transactions or events that result in an obligation to 

pay more or less tax in the future have occurred at the balance sheet date. Timing 

differences are differences between the Group's taxable profits and its results as stated 

in the financial statements that arise from the inclusion of gains and losses in tax 

assessments in periods different from those in which they are recognised in the financial 

statements. 

A net deferred tax asset is regarded as recoverable and therefore recognised only to 

the extent that, on the basis of all available evidence, it can be regarded as more likely 

than not that there will be suitable taxable profits from which the future reversal of the 

underlying timing differences can be deducted. 

Deferred tax is recognised in respect of the retained earnings of overseas subsidiaries 

and associates only to the extent that, at the balance sheet date, dividends have been 

accrued as receivable or a binding agreement to distribute past earnings in the future 

has been entered into by the subsidiary or the associate. 

Deferred tax is measured at the tax rates that are expected to apply in the periods in 

which the timing differences are expected to reverse, based on tax rates and laws that 

have been enacted or substantively enacted by the balance sheet date. Deferred tax 

balances are not discounted. 

18 
- ------ -- - - .- -------- -

Notes to the financial statements (continued) 

for the year ended 31 December 2010 

1 Accounting policies (continued) 

Pension costs 

The Group operates defined contribution pension schemes for qualifying employees. 

The assets of the schemes are held separately from those of the Group in funds under 

the control of the trustees. Contributions to the group's defined contribution pension 

scheme are charged to the profit and loss account in the year in which they become 

payable. 

Leasing and hire purchase commitments 

The Group as lessee 

Assets held under finance leases, which are leases where substantially all the risks and 

rewards of ownership of the asset have passed to the company, and hire purchase 

contracts, are capitalised in the balance sheet and are depreciated over their useful 

lives. The capital elements of future obligations under the leases and hire purchase 

contracts are included as liabilities in the balance sheet. 

The interest elements of the rental obligations are charged in the profit and loss account 

over the periods of the leases and hire purchase contracts and represent a constant 

proportion of the balance of capital repayments outstanding. 

All other leases are treated as operating leases. Their annual rentals are charged to the 

profit and loss account on a straight-line basis over the term of the lease. 

The Group as lessor 

Rental income from operating leases is recognised on a straight line basis over the term 

of the relevant lease. 

2 Turnover 

The turnover and loss before tax are attributable to the one principal activity of the 

group. In the opinion of the directors, the disclosure of any further information required 

by Companies Act 2006 would be seriously prejudicial to the interests of the group and 

the company. 

19 
- ------- ----.- -------- --

Notes to the financial statements (continued) 

for the year ended 31 December 2010 

3 Operating (loss)/profit 

4 

This is arrived at after charging/(crediting): 

Depreciation of tangible fixed assets -owned 

Depreciation of tangible fixed assets -leased 

Amortisation of positive goodwill 

Loss/(profit) on disposal of fixed assets 

Hire of other assets - operating leases 

Net loss/(profit) on foreign currency translation 

Impairment charge 

2010 2009 

$'000 $'000 

2,217 

602 

127 

118 

4,068 

1,696 

9,300 

2,407 

493 

126 

(5) 

4,103 

( 1,212) 

The directors have observed that as a result of the current economic downtum market 

values for second hand aircraft have been difficult and the number of distress sales has 

lowered the resale value of small and medium sized business aircraft. As a result the 

Group undertook a detailed impairment review and determined that an impairment of 

$9,300,000 should be recorded. 

Auditors' remuneration: 

Audit of company's annual accounts 

Audit of company's subsidiaries pursuant to 

legislation 

Employees 

Staff costs (including directors) consist of: 

Wages and salaries 

Social security costs 

Other pension costs 

56 

69 

125 

2010 

$'000 

18,140 

2,723 

778 

21,641 

31 

78 

109 

2009 

$'000 

22,244 

3,541 

826 

26,611 

The average number of employees (including directors) during the year was as follows: 

Operations and administration 

Pilots and cabin crew 

Aircraft engineering and cleaning 

20 

2010 

Number 

83 

100 

106 

289 

2009 

Number 

103 

100 

94 

297 
------ ----.- ---------

Notes to the financial statements (continued) 

for the year ended 31 December 201 0 

5 Directors' remuneration 

6 

7 

Directors' emoluments 

Company contributions to money purchase pension 

schemes 

2010 2009 

$'000 $'000 

673 532 

91 77 

764 609 

There were 3 directors in the group's defined contribution pension scheme during the 

year (2009- 3). 

The total amount payable to the highest paid director in respect of emoluments was 

$213,000 (2009- $210,000). Company pension contributions of $50,000 (2009- $51.000) 

were made to a money purchase scheme on his behalf. 

Interest payable and similar charges 

2010 2009 

$'000 $'000 

Bank loans and overdrafts 64 263 

Rnance leases and hire purchase contracts 977 1,191 

Other similar charges payable 295 306 

1,336 1,760 

Tax credit on Joss on ordinary activities 

2010 2010 2009 2009 

$'000 $'000 $'000 $'000 

UK corporation tax 

Current tax for the financial year (7) 30 

Adjustment in respect of 

previous periods 63 (61) 

Total current tax charge/(credit) 56 (31) 

Deferred tax 

Origination and reversal of 

timing differences (2,599) 354 

Change in tax rate (246) 

Adjustment in respect of 

previous periods (1, 117) 

(2,845) (763) 

Tax credit on loss on ordinary 

activities (2,789) (794) 

21 
- - --- -- - - - - .- ---- --- - --

Notes to the financial statements (continued) 

for the year ended 31 December 2010 

7 Tax credit on loss on ordinary acHvities (continued) 

The tax assessed for the year is higher than the standard rate of corporation tax in the UK 

applied to the loss before tax. The differences are explained below: 

Loss on ordinary activities before taxation 

Tax credit at the standard rate of 

corporation tax in the UK of 28% (2009 - 28%) 

Effects of: 

Expenses not deductible for tax purposes 

Capital allowances in excess of depreciation 

Origination of tax losses 

Effect of tax rates in different jurisdictions 

Adjustment to tax charge in respect of previous periods 

Current tax charge for period 

8 Loss attributable to members of the parent company 

2010 

$'000 

(10,501) 

(2,940) 

2,721 

(39) 

14 

237 

63 

56 

2009 

$'000 

(687) 

. (192) 

178 

(448) 

492 

(61) 

(31) 

The company has taken advantage of the exemption allowed under section 408 of the 

Companies Act 2006 and has not presented its own profit and loss account in these 

financial statements. The group loss for the year includes a profit after tax of $427,000 

(2009 -loss of $453,000) relating to the parent company. 

22 
9 

Notes to the financial statements (continued) 

for the year ended 31 December 2010 

Intangible assets 

(see note 21) 

Development Positive Negative 

Group costs Goodwill Goodwill 

$'000 $'000 $'000 

Cost or valuation 

At 1 January 2010 2,531 

Additions 154 

Acquisitions (181} 

At 31 December 2010 154 2,531 (181) 

Amortisation 

At 1 January 2010 129 

Provision for year 127 

At 31 December 2010 256 

Net book vafue 

At 31 December 2010 154 2,275 (181) 

At 31 December 2009 2,402 

23 

Total 

$'000 

2,531 

154 

(181) 

2,504 

129 

127 

256 

2,248 

2,402 
Notes to the financial statements (continued) 

for the year ended 31 December 2010 

10 Tangible fixed assets 

Fixtures, 

fittings, 

Leasehold and Motor 

Group property Aircraft Equipment vehicles Total 

$'000 $'000 $'000 $'000 $'000 

Cost or valuation 

At 1 January 2010 3,462 46,448 1,383 1,386 52,679 

Additions 181 152 71 404 

Disposals (4,078) (556) (215) (4,849) 

Foreign exchange 

adjustments (55) (2) (45) (10) (112) 

At 31 December 2010 3,588 42,368 934 1,232 48,122 

Depreciation 

At 1 January 2010 399 8,246 943 753 10,341 

Provision for year 286 2,069 223 241 2,819 

Disposals (378) (553) (190) (1,121) 

Impairment charge 9,300 9,300 

Foreign exchange 

adjustments 5 (29) (36) 12 (48) 

At 31 December 2010 690 19,208 577 816 21,291 

Net book value 

At 31 December 2010 2,898 23,160 357 416 26,831 

At 31 December 2009 3,063 38,202 440 633 42,338 

The net book value of tangible fixed assets for the group includes an amount of 

$8,975,000 (2009 - $10,087,000} in respect of assets held under finance leases and 

hire purchase contracts. Depreciation includes $1 ,473,000 (2009 - $493,000) charged on 

assets held under finance leases and hire purchase contracts. Details of the impairment 

adjustment noted above are included in note 3. 

11 fixed asset investments 

Group Associates 

$'000 

At 1 January 2010 339 

Share of retained losses (8) 

At 31 December 2010 331 

24 
Notes to the financial statements (continued) 

for the year ended 31 December 2010 

11 Fixed asset investments (continued) 

Company 

Cost and net book value 

At 1 January 2010 and 31 December 2010 

Group 

undertakings 

$'000 

8,198 

On 1 January 2010, the company acquired 100% share capital of Gama Aviation SA. 

This has been accounted for as an acquisition under FRS 6. 

Subsidiary and associated undertakings 

The principal undertakings in which the company's interest at the year end is 20% or 

more are as follows: 

Proportion 

of shares 

Country of andvofing 

Subsidiary undertakings Incorporation Holding rights held Nature of business 

Gama Aviation Umited Great Britain Ordinary 100% Air charter 

Gama Leasing Limited Great Britain Ordinary 100% Aircraft and motor 

vehicle leasing 

Gama Support Services Limited Great Britain Ordinary 100% Aircraft engineering 

Lees Avionics Umited Great Britain Ordinary 100% Avionic sales, 

installation and 

maintenance 

A vialogistics Limited Great Britain Ordinary 76% Cleaning services 

Airops Software Limited Great Britain Ordinary 100% Aviation computer 

software 

Gama Aviation SA Switzerland Ordinary 100% Supply of aircraft 

personnel 

Gama Group Inc. USA Ordinary 100% Avionic sales, 

installation and 

maintenance 

Gama Aviation Inc * USA Ordinary 100% Air charter 

Associate undertakings 

Operator Holding Inc. * USA Ordinary 49% I 25% ** Holder of Air Operator's 

Certificate 

*indicates indirect holdings. 

**49% of the ordinary share capital is held but only 25% of the voting rights. 

25 
12 Stocks 

~ - - .- ----- - --

Notes to the financial statements (continued) 

for the year ended 31 December 2010 

Raw materials and consumables 

Work in progress 

Group 

2010 

$'000 

1,686 

2,688 

Group 

2009 

$'000 

1,714 

4,374 1,714 

13 Debtors 

Group Group Company Company 

2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

Trade debtors 23,642 29,821 

Amounts owed by group 

undertakings 9,239 9,422 

Other debtors 3,888 3,860 1,563 134 

Deferred taxation (note 17) 29 

Prepayments and accrued 

income 21,481 18,432 

49,011 52,113 10,831 9,556 

All amounts shown under debtors fall due for payment within one year. 

Other debtors in 2010 include amounts owed by the directors- see note 23. 

14 Creditors: amounts falling due within one year 

Group Group Company Company 

2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

As restated 

-see note 16 

Bank overdrafts 102 

Loans due in less than one year 7,960 3,630 

Trade creditors 27,059 28,000 

Taxation and social security 1,201 1,266 

Obligations under hire purchase 

contracts (note 16) 882 1,278 

Amounts owed to group 

undertakings 2,359 2,965 

Amounts owed to associates 

Other creditors 8,611 9,819 1,419 3,548 

Accruals and deferred income 13,202 11,716 44 32 

--

61,274 55,811 4,428 3,580 

26 
Notes to the financial statements (continued) 

for the year ended 31 December 2010 

14 Creditors: amounts falling due within one year (continued) 

The bank overdrafts are secured by a revolving fixed charge over certain assets of the 

group. 

Other loans and hire purchase agreements are secured by way of first legal charges on 

the group's fixed assets. 

Other creditors in 2009 include amounts owed to the directors - see note 23. 

15 Creditors: amounts falling due after more than one year 

Group Group Company Company 

2010 2009 2010 2009 

$'000 $'000 $'000 $'000 

As restated 

-see note 16 

Obligations under hire 

purchase contracts (note 16) 6,404 6,888 

Loans 14,992 25,121 

21,396 32,009 

Loans include: 

• £1.5 million (2009: £1.5 million), which has no fixed repayment term and carries an 

interest rate of 9.5% per annum. 

• $20.6 million (2009: $25.1 million) secured against aircraft. The borrowings are a mix of 

variable and fixed interest rate debt with repayment periods not exceeding five years. 

The following aggregate liabilities disclosed under creditors falling due after more than 

one year are due for repayment after more than five years from the balance sheet 

date. 

Amounts payable in more than 5 years 

27 

Group 

2010 

$'000 

Group 

2009 

$'000 

As restated 

-see note 

16 

21,849 
Notes to the financial statements (continued) 

for the year ended 31 December 2010 

16 Commitments under hire purchase agreements 

17 

Future commitments under hire purchase agreements are as follows: 

Amounts payable within one year (note 14) 

Amounts payable between 2 to 5 years (note 15) 

Group 

2010 

$'000 

882 

6,404 

7,286 

Group 

2009 

$'000 

As restated 

1,278 

6,888 

8,166 

$21 ,446,000 of the 2009 hire purchase commitment balance has been reclassified to 

loans to reflect the true nature of the financial obligation. There has been no overall 

change to the net asset position of the group as a result of this adjustment. 

Provision for liabilities 

Deferred taxation 

At 1 January 2010 

Credited to profit and 

loss account: (note 7) 

Utilised in the year 

Impact of 

change in tax 

rate 

At 31 December 2010 

Deferred taxation 

Group 

2010 

$'000 

Accelerated capital 

allowances 1,060 

Sundry timing 

differences (1) 

Unutilised tax losses (462) 

597 

Group 

2009 

$'000 

3,722 

7 

(287) 

3,442 

Group 

$'000 

3,442 

{2,599) 

(246) 

597 

Company 

2010 

$'000 

{29) 

(29) 

Company 

$'000 

(29) 

(29) 

Company 

2009 

$'000 

The group has not recognised a deferred tax asset of $6.1 million {2009: $5.7 million) in 

respect of tax losses brought forward because the future recoverability of the asset is 

uncertain. 

28 
Notes to the financial statements (continued) 

forthe year ended 31 December 2010 

18 Share capital 

19 

Allotted, called up and fully paid 

120,000 ordinary shares of £1 each 

Reserves 

Share 

premium 

Group account 

$'000 

At 1 January 2010 15,409 

Translation differences 

Loss for the financial year 

At 31 December2010 15,409 

Share 

premium 

Company account 

$'000 

At 1 January 2010 15,409 

Profit for the financial year 

At 31 December 2010 15,409 

Capital 

redemption 

reserve 

$'000 

10 

10 

Capital 

redemption 

reserve 

$'000 

lO 

10 

2010 

$'000 

238 

Profit 

and loss 

Account 

(deficit) 

$'000 

(4,469) 

(75) 

(7,705) 

(12,249) 

Profit 

and loss 

account 

$'000 

(1,483) 

427 

(1,056} 

2009 

$'000 

238 

Total 

$'000 

10,950 

{75) 

(7,705) 

3,170 

Total 

$'000 

13,936 

427 

14,363 

Details of a significant post balance sheet event concerning the company's capital 

structure are disclosed in note 25 below. 

29 
- ----- -- - - - - .- ---- --- - --

Notes to the financial statements (continued) 

for the year ended 31 December 201 0 

20 Contingent liabilities 

The group's banking facilities are secured by a fixed and floating charge over the 

assets of the company and its subsidiary undertakings. The directors consider it highly 

improbable that any liability will crystallise as a result of this composite company 

unlimited multilateral guarantee. 

Following the acquisition of Avialogistics Limited in 2009, the group is subject to a put 

option which, if exercised, would require the group to purchase the minority interest 

shareholding in A vialogistics for consideration equivalent to 20% - 30% of the turnover of 

that company based on the most recent financial statements. The put option expires 3 

years after the acquisition of Avialogistics Limited. The turnover of Avialogistics for 2010 

was £649,000. 

21 Acquisitions 

On 1 January 2010, the group acquired 100 per cent of the issued share capital of 

Garno Aviation SA for cash consideration of $1. Garno Aviation SA provides payroll 

services to the Gam a Aviation Group. This transaction has been accounted for by the 

purchase method of accounting. 

Net assets acquired 

Trade and other receivables 

Cash and cash equivalents 

Trade and other payables 

Provisions 

Negative goodwill arising (note 9) 

Total cash consideration ($1) 

Book and fair 

value 

$'000 

6 

417 

(222) 

(20) 

181 

(181} 

The directors consider the book value to represent the fair value of the assets acquired. 

Garno Aviation SA contributed $45,000 to profit before tax for the period between the 

date of acquisition and the balance sheet date. 

30 
Notes to the financial statements (continued) 

for the year ended 31 December 2010 

22 Commitments under operating leases 

The group had annual commitments under non-cancellable operating leases as set 

out below: 

Land and Land and 

buildings buildings 

2010 2009 

$'000 $'000 

Operating leases which 

expire: 

Within one year 47 301 

In two to five years 1,507 1,092 

In more than five years 333 332 

1,887 1,725 

The company had no commitments under operating leases (2009: nil). 

23 Transactions with the directors 

As at 31 December 2010, Mr G A Khalek owed the group $339,322 (2009: $1,883,124 owed to Mr 

G A Khalek) in the form of a director's loan account, being funds advanced by the group. The 

loan is due on demand, is interest free and unsecured. 

As at 31 December 2010, the group owed Mr M A Khalek $227,058 (2009: £509,018) in the form of 

a director's loan account, being funds advanced to the group. The loan is due on demand, is 

unsecured and interest free. 

31 
- ------- ----.- -------- --

Notes to the financial statements (continued) 

for the year ended 31 December 2010 

24 Related party transactions 

Control 

The company was under the control of Mr M A Khalek and Mr G A Khalek, both of whom are 

Directors of the company throughout the year. 

Group 

During the year the group paid operating rentals totalling $377,648 (2009: $419,972)to lease an 

aircraft, G-ZXZX, from Zulu X-Ray Services Limited. Mr G A Khalek controls 25% of the voting rights 

of Zulu X-Ray Services Limited. 

During the year, net charges of $1 ,270,000 (2009: $144, 140) were made to Gama Charters Inc, a 

company registered in the USA, and under the control of Mr M A Khalek and Mr G A Khalek. As 

at 31 December 2010, the group was owed $61,000 (2009: $90,441) by Gama Charters, Inc. 

During the year, the group made net sales of $4.407,000 (2009: $3,690,000) to Crescent 

Investment LLC, which holds an investment in Gama Holdings FZC, the ultimate parent company. 

As at 31 December 2010, the company was owed $953,000 (2009: $241,000) by Crescent 

Investment LLC. 

During the year, the group made stock purchases of $365,456 (2009: $249,712) from the special 

purpose vehicle set up by Mr M A Khalek. As at 31 December, the company owed $81,934 (2009: 

$249,712) to the special purpose vehicle. 

As permitted by Financial Reporting Standard 8, Related Party Disclosures, no disclosures have 

been made in respect of transactions or balances in respect of wholly owned subsidiaries of the 

Company. 

Company 

As permitted by Financial Reporting Standard 8, Related Party Disclosures, no disclosures have 

been made in respect of transactions or balances in respect of wholly owned subsidiaries of the 

company. 

25 Post balance sheet events 

On 27 May 2011 Gama Group Limited agreed to acquire the trade and assets of Mann 

Aviation Group Engineering (In Administration) Ltd ('MAGE') for £400,000. MAGE is 

based at Fairoaks Airport in Surrey and is a well-established maintenance and repair 

organisation with a speciality in rotary and general aviation aircraft. In addition, the 

company also holds approvals that complement those of Gama Support Services 

Limited and significantly strengthens Gama's ability to support a wider range of civilian 

and military aircraft. Under the terms of the agreement Gama and the Administrators 

have agreed a delayed delivery and transfer of ownership to allow the transfer of CAA 

approvals and lease obligations in an orderly manner. Until delivery and transfer of 

ownership takes place Gama is acting as agents for the Administrators, taking financial 

responsibility for the company from 27 May 2011 . 

32 
.- ------- - -. 

Notes to the financial statements (continued} 

for the year ended 31 December 2010 

25 Post balance sheet events (continued} 

On 7 September 2011, the shareholders of the company passed a special resolution 

reducing the share premium account to £nil. Had this resolution been passed at the 31 

December 2010 the impact on the company balance sheet would have been as 

follows: 

Prior to Reduction in 

special share After special 

resolution premium resolution 

$'000 $'000 $'000 

Fixed assets 29,410 29,410 

Current assets 57,275 57,275 

Creditors: Amounts falling due within one year (61,274) (61 ,274) 

Creditors: Amounts falling due after more 

than one year (21 ,396) {21 ,396} 

Provisions for liabilities {597) (597) 

3,418 3,418 

Capital and reserves 

Called up share capital 238 238 

Share premium account 15,409 (15,409) 

Other reserves 10 10 

Profit and loss account {12,249) 15,409 3,160 

Minority interest 10 10 

3,418 3,148 

Further details are contained in note 25 to the financial statements. 

33 
Notes to the financial statements (continued) 

for the year ended 31 December 201 0 

26 Reconciliation of operating (loss)/profit to net cash inflow from operating activities 

2010 2009 

$'000 $'000 

Operating (loss)/profit (9, 165) 1,070 

Amortisation of intangible fixed assets 127 127 

Depreciation of tangible fixed assets 2,819 2,900 

Exceptional impairment charge 9,300 

Loss/(profit) on disposal of fixed assets 118 (5) 

Increase in stocks (2,631) (545) 

Decrease/{increase) in debtors 3,241 (4,640) 

Increase in creditors 4,275 5,703 

Net cash inflow from operating activities 8,084 4,610 

27 Reconciliation of net cash flow to movement in net debt 

2010 2009 

$'000 $'000 

lncrease/{decrease) in cash 454 (584) 

Cash outflow in respect of hire purchase 945 1,988 

Net cash outflow/(inflow) from other long term creditors 5,798 (689) 

Non-cash movements (65) 

Exchange movements (23) 148 

Movement in net debt 7,109 863 

Opening net debt (33,458) (34,321) 

Closing net debt (26,349) (33,458) 

34 
28 

Notes to the financial statements (continued) 

for the year ended 31 December 2010 

Analysis of net debt 

At other 

1 January Cash non-cash Foreign 

2010 flow items exchange 

$'000 $'000 $'000 $'000 

Cash at bank 

and in hand 3,561 352 (23) 

Bank overdrafts (102) 102 

3,459 454 (23) 

Loans (28,751) 5,798 

Hire purchase 

agreements (8,166) 945 (65) 

(36,917) 6,743 (65) 

Total (33,458) 7,197 (65) (23) 

35 

At 31 

December 

2010 

$'000 

3,890 

3,890 

(22,953) 

(7,286) 

(30,239) 

(26,349) 
EXHIBIT GAMA-400 
Gama Charters Inc 

Balance Sheet 

6/30/2012 

tung#~it~at:: ;ll[;, .. 

Assets 

Current Assets 

Cash 

Cash - Operating Accounts 

Cash-ReseNed Accounts 

Total Cash 

Trade and Sundry Receivables 

Fixed Assets 

Other Assets 

Total Assets 

Trade and Sundry Receivable 

Accrued Receivable 

Unbilled Management 

Total Trade and Accrued Receivable 

Affliated Company Receivable 

Intercompany Receivable 

Inventories 

Prepaid & Deferred Expenses 

Total Current Assets 

Property & Equipment (at cost) 

Less: Accum. Depreciation 

Net Property & Equipment 

Deferred Taxes- non current 

Intangible Assets 

Total Other Assets 

$ 260,736.01 

$ 

$ 

$ 100,000.00 

$ 

$ 73,100.09 

$ 22,271.34 

$ 

$ 634,664.00 

$ 260,736.01 

$ 100,000.00 

$ 

$ 

$ 

$ 30,511.95 

$ 391,247.96 

$ 50,828.75 

$ 634,664.00 

$ 1,076,740.71 
Liabilities & Net Worth 

Current Liabilities 

Trade Payables & Accrued Liabilities 

Trade and Sundry Payables $ 

FET Taxes Payable $ 

Accrued Liabilities $ 19,312.50 

Trade and Accrued Liabilities $ 19,312.50 

Affliated Company Payable $ 579,176.91 

Cust. Deposits & Def. Income $ 

Deferred Taxes-Current $ 

Total Current Liabilities 

(excluding Current Debt) $ 598,489.41 

Current Maturities of Lrr Debt 2610 100 $ 35,174.08 

Current Maturities of Lrr Debt $ 35,174.08 

Total Current Liabilities 

(including Current Debt) $ 633,663.49 

Notes Payable- Long Term $ 

Deferred Taxes- Long-Term $ 

Total Long Term Liabilities $ 

Total Liabilities $ 633,663.49 

Stockholder's Equit~ 

Common Stock $ 100.00 

Additional Paid In Capital $ 680,000.00 

Retained Earnings $ (231 ,441.13) 

Retained Earnings $ 

Current Earnings $ (5,581.65) 

Dividends Distributed $ 

Total Stockholder's Equity $ 443,077.22 
Gama Charters Inc 

Balance Sheet 

12/31/2011 

!"~n:~vdited ,:,: ·;,11 

Assets 

Current Assets 

Cash 

Cash - Operating Accounts 

Cash-Reserved Accounts 

Total Cash 

Trade and Sundry Receivables 

Fixed Assets 

Other Assets 

Total Assets 

Trade and Sundry Receivable 

Accrued Receivable 

Unbilled Management 

Total Trade and Accrued Receivable 

Affliated Company Receivable 

Intercompany Receivable 

Inventories 

Prepaid & Deferred Expenses 

Total Current Assets 

Property & Equipment (at cost) 

Less: Accum. Depreciation 

Net Property & Equipment 

Deferred Taxes- non current 

Intangible Assets 

Total Other Assets 

$ 276,848.15 

$ 

$ 

$ 100,000.00 

$ 

$ 73,100.09 

$ 10,579.86 

$ 

$ 634,664.00 

$ 276,848.15 

$ 100,000.00 

$ 

$ 

$ 

$ 12,885.82 

$ 389,733.97 

$ 62,520.23 

$ 634,664.00 

$ 1,086,918.20 
Liabilities & Net Worth 

Current Liabilities 

Trade Payables & Accrued Liabilities 

Trade and Sundry Payables $ 

FET Taxes Payable $ 

Accrued Liabilities $ 207,263.04 

Trade and Accrued Liabilities $ 207,263.04 

Affliated Company Payable $ 384,652.93 

Cust. Deposits & Def. Income $ 

Deferred Taxes-Current $ 

Total Current Liabilities 

(excluding Current Debt) $ 591,915.97 

Current Maturities of LfT Debt 2610 100 $ 22,620.15 

Current Maturities of LfT Debt $ 22,620.15 

Total Current Liabilities 

(including Current Debt) $ 614,536.12 

Notes Payable- Long Term $ 23,723.21 

Deferred Taxes- Long-Term $ 

Total Long Term Liabilities $ 23,723.21 

Total Liabilities $ 638,259.33 

Stockholder's Equit¥: 

Common Stock $ 100.00 

Additional Paid In Capital $ 680,000.00 

Retained Earnings $ 10,438.78 

Retained Earnings $ 

Current Earnings $ (241,879.91) 

Dividends Distributed $ 

Total Stockholder's Equity $ 448,658.87 
Gama Charters Inc 

Balance Sheet 

12/31/2010 

'unaui:J~~, ,:: ·· iii 

Assets 

Current Assets 

Cash 

Cash - Operating Accounts 

Cash-Reserved Accounts 

Total Cash 

Trade and Sundry Receivables 

Fixed Assets 

Other Assets 

Total Assets 

Trade and Sundry Receivable 

Accrued Receivable 

Unbilled Management 

Total Trade and Accrued Receivable 

Affliated Company Receivable 

Intercompany Receivable 

Inventories 

Prepaid & Deferred Expenses 

Total Current Assets 

Property & Equipment (at cost) 

Less: Accum. Depreciation 

Net Property & Equipment 

Deferred Taxes- non current 

Intangible Assets 

Total Other Assets 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

12,383.09 

1,778.68 

988.20 

$ 634,664.00 

$ 12,383.09 

$ 

$ 

$ 

$ 

$ 129,912.80 

$ 142,295.89 

$ 790.48 

$ 634,664.00 

$ 777,750.37 
Liabilities & Net Worth 

Current Liabilities 

Trade Payables & Accrued Liabilities 

Trade and Sundry Payables $ 

FET Taxes Payable $ 

Accrued Liabilities $ 26,071.00 

Trade and Accrued Liabilities $ 26,071.00 

Affliated Company Payable $ 61,140.59 

Cust. Deposits & Def. Income $ 

Deferred Taxes-Current $ 

Total Current Liabilities 

(excluding Current Debt) $ 87,211.59 

Current Maturities of LIT Debt $ 

Total Current Liabilities 

(including Current Debt) $ 87,211.59 

Long-Term Liabilities 

Notes Payable- Long Term $ 

Deferred Taxes - Long-Term $ 

Total Long Term Liabilities $ 

Total Liabilities $ 87,211.59 

Stockholder's Equit~ 

Common Stock $ 100.00 

Additional Paid In Capital $ 680,000.00 

Retained Earnings $ 25,261.72 

Retained Earnings $ 

Current Earnings $ (14,822.94) 

Dividends Distributed $ 

Total Stockholder's Equity $ 690,538.78 

Total Liabilities and Net Worth $ 777,750.37 
~~-

- -~o~"~-.~~~~ ~'''-""o...l,....,.., ...............,._ ___ ~ ·""-'--~ 

10/16/2012 

Assets 

Current Assets 

Cash r II$ 50,250 

Interest Bearing Accounts 

Accounts Receivable 100,000 

Intercompany Receivable 

Affliated Company Receivable 

Inventories 

Prepaid & Deferred Expenses II II 36,970 

PrepaidTaxes-Current 

Total Current Assets 

Property & Equipment (at cost) 

Aircraft 

Building & Equipment 

Office Equipment II II 9,651 

Automobiles 

Furniture & Fixtures 

Leasehold Improvements 

Total Propo & Equipo 

Less: Accumo Depreciation 

Net Property & Equipment 

Other Assets 

Charter Ticket II II 634,664 

Goodwill 

Tech Know How 

Investment in Subsidiaries 

Deferred Taxes 

- non current 

Long-Term Deposits 

Total Other Assets 

Total- Net Assets II$ II$ 823,672 
~~~-·~·~· ---····~-------

10/16/2012 

Liabilities & Net Worth 

Current Liabilities 

Trade Payables & Accrued Liabilitill $ 

II$ 

28,500 

Intercompany Payables 

Affliated Company Payable 89,810 

Gust. Deposits & Del. I nco me 

Interest Payable 

Taxes Payable 

Total Current Liabilities II II 118,310 (excluding Current Debt) 

Current Debt 

Notes Payable 

Current Maturities of UT Debt 

Total Current Liabilities 

(including Current Debt) 

Long~ Term Liabilities 

Long~ Term Debt 

Long~ Term Debt~ Intercompany 

Deferred Taxes~ Long~ Term 

Total Long Term Liabilities 

Total Liabilities 

II II 

118,310 

Stockholder's Equity 

Common Stock, $1 par value; 

Authorized 1000 Shares 

Issued & Outstanding 1000 Shares 100 

Additional Paid in Capital 680,000 

Retained Earnings 10,327 

Current Earnings 14,935 

Dividends 

Total Stockholder's Equity 705,362 

Total Liabilities and Net Worth $ $ 823,672 
EXHIBIT GAMA-401 
Gama Charters Inc 

Profit and Loss 

For the Month of 

6/30/2012 

:Pt~udited . 

1%~' 

Revenue 

Management Fees 5200 $ 36,867.50 

Charter $ 1 ,097,152.50 

Crew Services & Training $ 357,097.60 

GCI Service Agreements $ 87,633.33 

Net Revenue $ 1,578,750.93 

Direct Costs 

Aircraft Costs $ 1,083,903.56 

Maintenance Administration $ 19,524.78 

Coordination Charges $ 14,054.47 

Direct Crew Costs $ 362,339.39 

Operation Costs $ 9,146.50 

Other GCI Service Agreement Exp's $ 56,303.75 

Total Direct Costs $ 1,545,272.45 

Gross Profit $ 33,478.48 

Indirect Expenses 

Total Salary and Fringes $ 24,728.84 

Marketing $ 

Property Costs $ 

Dues & Subscriptions $ 

Insurances Expense $ 3,156.47 

Telecom Cost $ 2,973.08 

IT Systems Exp $ 220.00 

Meetings,Travel & Entertainment 

Expense $ 3,516.87 

Legal & Accounting $ 3,244.21 

Office Supplies $ 736.04 

Other Expense $ 

Total Indirect Expense $ 38,575.51 

EBITDA $ ·(5,097.03) 

Depreciation Expense Depreciation Expense 9100 $ 16.46 

Interest Expense Interest Expense 9000 $ 485.60 

Interest Income Interest Income 9005 $ 

Other lncome(Expense) Other lncome(Expense) 9200 $ 

Profit(Loss) Before Taxes $ (5,599.09) 

Corp Income Taxes Federal Income Taxes 9500 $ 

State Income Taxes 9600 $ 

Net Profit{Loss} $ (5,599.09) 
Revenue 

Management Fees $ 219,892.50 

Charter $ 5,129,882.18 

Crew Services & Training $ 2,445,937.98 

GCI Service Agreements $ 506,975.83 

Net Revenue $ 8,302,688.49 

Direct Costs 

Aircraft Costs $ 4,969,27 4.80 

Maintenance Administration $ 117,737.62 

Coordination Charges $ 48,255.68 

Direct Crew Costs $ 2,542,419.51 

Operation Costs $ 55,543.92 

Other GCI Service Agreement Exp's $ 328,986.25 

Total Direct Costs $ 8,062,217.78 

Gross Profit $ 240,470.71 

Indirect Expenses 

Total Salary and Fringes $ 143,746.02 

Marketing $ 65.38 

Property Costs $ 

Dues & Subscriptions $ 3,463.64 

Insurances Expense $ 14,421.87 

Telecom Cost $ 9,440.68 

IT Systems Exp $ 9,825.34 

Meetings,Travel & Entertainment 

Expense $ 36,800.66 

Legal & Accounting $ 17,121.22 

Office Supplies $ 9,088.11 

Other Expense $ 939.96 

Total Indirect Expense $ 244,912.88 

EBITDA $ (4,442.17) 

Depreciation Expense Depreciation Expense 9100 $ 98.76 

Interest Expense Interest Expense 9000 $ 1,040.72 

Interest Income Interest Income 9005 $ 

Other lncome(Expense) Other lncome(Expense) 9200 $ 

Profit(Loss) Before Taxes $ (5,581.65) 

Corp Income Taxes Federal Income Taxes 9500 $ 

State Income Taxes 9600 $ 

Net Profit(Loss) $ (5,581.65) 
Gama Charters Inc. 

Statement of Sources and Applications of Cash 

6/30/2012 

,u~§IJditli~l~ .. ~L: . · 

Net Profit (Loss) After Tax $ (5,582) 

Non Cash Items 

Loss(Gain) on Disposal of Assets $ 

Amortization $ 

Depreciation $ 11,691 

Total Non Cash Activities $ 11,691 

Total Cash Provided By(Used in) Operations $ 6,110 

Operations: 

Trade and Sundry Receivable $ 

Accrued Receivables $ 

Unbilled Management Receivables $ 

Affliated Rec.- Gama Leasing $ 

Affliate Receiviable-Gama Charters Inc $ 

Affliate Receiviable-Gama Charters LTd $ 

Inventories $ 

Prepaids & Deferred Charges $ (17,626) 

Trade and Sundry Payables $ 

FET Taxes Payable $ 

Accrued Liabilities $ (187,951) 

Customer Dep. & Deferred Inc. $ 

Affiliated Pay Oper Loan-Gama UK $ 

Affiliated Payable- GamaUK $ 

Affiliated Payable- Gama Aviation $ 194,524 

Affiliated Payable- Gama Group Ltd $ 

Affiliated Payable- Gama Support $ 

Taxes Payable and Deferred Taxes $ 

Total Cash Provided By(Used in) Operations $ (11,053) 

Investment Activities 

Fixed Assets Purchased $ 

Fixed Assets Disposed $ 

Sale of Fixed assets $ 

Dividends Distributed $ 

Total Cash Used in Investment Activities $ 

Financing Activities 

Repayment of Loans $ (11,169) 

Proceeds from Corridor Loan $ 

Net Change in Select Charter Funds $ 

Net Proceeds from Director Loans $ 

Total Cash Provided by Financing Activities $ (11 '169) 

Change in Cash Position $ (16,112) 

Beginning Cash $ 276,848 

Ending Cash $ 260,736 
Gama Charters Inc 

Profit and Loss 

For the Month of 

12/31/2011 

Crew Services & Training 

GCI Service Agreements 

Net Revenue 

Direct Costs 

Aircraft Costs 

Maintenance Administration 

Coordination Charges 

Direct Crew Costs 

Operation Costs 

Other GCI Service Agreement Exp's 

Total Direct Costs 

Gross Profit 

Indirect Expenses 

Total Salary and Fringes 

Marketing 

Property Costs 

Dues & Subscriptions 

Insurances Expense 

Telecom Cost 

IT Systems Exp 

Meetings,Travel & Entertainment 

Expense 

Legal & Accounting 

Office Supplies 

Other Expense 

Total Indirect Expense 

EBITDA 

Depreciation Expense 

Interest Expense 

Interest Income 

Other lncome(Expense) 

Profit(Loss) Before Taxes 

Corp Income Taxes 

Net Profit(Loss) 

Labor Expense - Mtx Coor 

Fringe Expense 

Fringe Expense 

Depreciation Expense 

Interest Expense 

Interest Income 

Other lncome(Expense) 

Federal Income Taxes 

State Income Taxes 

5200 

7540 

7545 

7548 

9100 

9000 

9005 

9200 

9500 

9600 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

36,500.00 

1 ,962,586.49 

653,303.51 

83,927.50 

2,736,317.50 

1,925,321.03 

19,711.46 

10,577.42 

2,961.68 

(98,325.00) 

(84,785.90) 

672,691.52 

9,206.15 

25,800.00 

2,567,944.26 

168,373.24 

19,935.18 

2,503.08 

1,678.68 

3,349.36 

35,112.07 

3,427.08 

3,290.20 

69,295.65 

99,077.59 

9,048.15 

1,077.36 

88,952.08 

3,243.00 

85,709.08 
:h~Gt~al Revenue 

Management Fees $ 460,509.70 

Charter $ 13,096,703.91 

Crew Services & Training $ 5,669,335.66 

GCI Service Agreements $ 1,006,272.50 

Net Revenue $ 20,232,821.77 

Direct Costs 

Aircraft Costs $ 12,750,520.25 

Maintenance Administration $ 231,557.16 

Labor Expense - Mtx Coor 7540 $ 125,005.92 

Fringe Expense 7545 $ 35,001.72 

Recovery 7548 $ (98,325.00) 

Coordination Charges $ 61,682.64 

Direct Crew Costs $ 5,978,225.62 

Operation Costs $ 108,799.86 

Other GCI Service Agreement Exp's $ 706,984.85 

Total Direct Costs $ 19,837,770.38 

Gross Profit $ 395,051.39 

Indirect Expenses 

Total Salary and Fringes $ 297,207.08 

Marketing $ 233.89 

Property Costs $ 401.52 

Dues & Subscriptions $ 3,981.16 

Insurances Expense $ 27,625.98 

Telecom Cost $ 19,375.62 

IT Systems Exp $ 34,294.91 

Meetings,Travel & Entertainment 

Expense $ 70,843.15 

Legal & Accounting $ 139,297.20 

Office Supplies $ 22,778.27 

Other Expense $ 6,399.50 

Total Indirect Expense $ 622,438.28 

EBITDA $ (227,386.89) 

Depreciation Expense Depreciation Expense 9100 $ 9,591.66 

Interest Expense Interest Expense 9000 $ 1,077.36 

Interest Income Interest Income 9005 $ 

Other lncome(Expense) Other lncome(Expense) 9200 $ 

Profit(Loss) Before Taxes $ (238,055.91) 

Corp Income Taxes Federal Income Taxes 9500 $ 

State Income Taxes 9600 $ 3,824.00 

Net Profit(Loss) $ (241,879.91) 
Gama Charters Inc. 

Statement of Sources and Applications of Cash 

12/31/2011 

Una:,lCJih~d ;~:l 

Net Profit(Loss) After Tax $ (241,880) 

Non Cash Items 

Loss(Goin) on Disposal of Assets $ 

Amortization $ 

Depreciation $ 9,592 

Total Non Cash Activities $ 9,592 

Total Cosh Provided By(Used in) Operations $ (232,288) 

Operations: 

Trade and Sundry Receivable $ 

Accrued Receivables $ 

Unbilled Management Receivables $ 

Afflioted Rec.- Gomo Leasing $ 

Affliote Receivioble-Gomo Charters Inc $ 

Affliote Receivioble-Gomo Charters LTd $ 

Inventories $ 

Prepoids & Deferred Charges $ 17,027 

Trade and Sundry Poyobles $ 

FET Taxes Payable $ 

Accrued Liabilities $ 181,192 

Customer Dep. & Deferred Inc. $ 

Affiliated Pay Oper Loon-Gomo UK $ 

Affiliated Payable- GomoUK $ 

Affiliated Payable- Gomo Aviation $ 323,512 

Affiliated Payable- Gomo Group Ltd $ 

Affiliated Payable- Gomo Support $ 

Taxes Payable and Deferred Taxes $ 

Total Cosh Provided By(Used in) Operations $ 521,731 

Investment Activities 

Fixed Assets Purchased $ (71,321) 

Fixed Assets Disposed $ 

Sole of Fixed assets $ 

Dividends Distributed $ 

Total Cosh Used in Investment Activities $ (71,321) 

Financing Activities 

Repayment of Loons $ (9,098) 

Proceeds from Corridor Loon $ 55,441 

Net Change in Select Charter Funds $ 

Net Proceeds from Director Loons $ 

Total Cosh Provided by Financing Activities $ 46,343 

Change in Cash Position $ 264,465 

Beginning Cash $ 12,383 

Ending Cash $ 276,848 
Gama Charters Inc 

Profit and Loss 

For the Month of 

12/31/2010 

Oncluclit&;cl 

'':', 

Revenue 

Charter $ 1,089,882.70 

Crew Services & Training $ 1,276,334.37 

GCI Service Agreements $ 103,708.25 

Net Revenue $ 2,469,925.32 

Direct Costs 

Aircraft Costs $ 1,044,672.05 

Maintenance Administration $ 22,129.63 

Coordination Charges $ 14,154.53 

Direct Crew Costs $ 1 ,308, 106.94 

Operation Costs $ 10,322.50 

Other GCI Service Agreement Exp's $ 48,240.00 

Total Direct Costs $ 2,447,625.65 

Gross Profit $ 22,299.67 

Indirect Expenses 

Total Salary and Fringes $ 25,629.64 

Marketing $ 267.06 

Property Costs $ 64.98 

Dues & Subscriptions $ 2,133.39 

Insurances Expense $ 2,620.14 

Telecom Cost $ 3,219.63 

IT Systems Exp $ 1 '150.00 

Meetings,Travel & Entertainment 

Expense $ 6,249.22 

Legal & Accounting $ (334.37) 

Office Supplies $ 2,765.71 

Other Expense $ 275.97 

Total Indirect Expense $ 44,041.37 

EBITDA $ (21 ,741.70) 

Depreciation Expense Depreciation Expense 9100 $ 82.81 

Interest Expense Interest Expense 9000 $ 

Interest I nco me Interest Income 9005 $ 

Other lncome(Expense) Other lncome(Expense) 9200 $ 

Profit(Loss) Before Taxes $ (21,824.51) 

Corp Income Taxes Federal Income Taxes 9500 $ 

State Income Taxes 9600 $ 618.00 

Net Profit(Loss) $ {22,442.51) 
Gam a ;elulrters Inc 

indli..bss· · 

yUDPerio; 

Revenue 

Charter 

Crew Services & Training 

GCI Service Agreements 

Net Revenue 

Direct Costs 

Aircraft Costs 

Maintenance Administration 

Coordination Charges 

Direct Crew Costs 

Operation Costs 

Other GCI Service Agreement Exp's 

Total Direct Costs 

Gross Profit 

Indirect Expenses 

Total Salary and Fringes 

Marketing 

Property Costs 

Dues & Subscriptions 

Insurances Expense 

Telecom Cost 

IT Systems Exp 

Meetings,Travel & Entertainment 

Expense 

Legal & Accounting 

Office Supplies 

Other Expense 

Total Indirect Expense 

EBITDA 

Depreciation Expense 

Interest Expense 

Interest I nco me 

Other lncome(Expense) 

Profit(Loss) Before Taxes 

Corp Income Taxes 

Net Profit(Loss) 

Depreciation Expense 9100 

Interest Expense 9000 

Interest Income 9005 

Other lncome(Expense) 9200 

Federal Income Taxes 9500 

State Income Taxes 9600 

$ 14,838,556.94 

$ 5,727,644.13 

$ 1,245,574.28 

$ 21,811,775.35 

$ 14,253,915.84 

$ 219,095.21 

$ 160,007.61 

$ 5,978,178.64 

$ 109,399.74 

$ 560,100.00 

$ 21,280,697.04 

$ 531,078.31 

$ 294,182.18 

$ 5,266.05 

$ 129.96 

$ 7,715.89 

$ 23,089.70 

$ 16,196.52 

$ 33,529.54 

$ 50,548.19 

$ 85,213.94 

$ 21,703.21 

$ 1,710.39 

$ 539,285.57 

$ (8,207.26) 

$ 997.68 

$ 

$ 

$ 

$ (9,204.94) 

$ 

$ 5,618.00 

$ (14,822.94) 
Gama Charters Inc. 

Statement of Sources and Applications of Cash 

12/31/2010 

!un~,~4!!~<il!' >i~l 

Net Profit(Loss) After Tax $ (14,823) 

Non Cash Items 

Loss(Gain) on Disposal of Assets $ 

Amortization $ 

Depreciation $ (6,875) 

Total Non Cash Activities $ (6,875) 

Total Cash Provided By(Used in) Operations $ (21,698) 

Operations: 

Trade and Sundry Receivable $ 

Accrued Receivables $ 100,000 

Unbilled Management Receivables $ 

Affliated Rec.- Gama Leasing $ 

Affliate Receiviable-Gama Charters Inc $ 

Affliate Receiviable-Gama Charters LTd $ 

Inventories $ 

Prepaids & Deferred Charges $ (92,943) 

Trade and Sundry Payables $ 

FET Taxes Payable $ 

Accrued Liabilities $ (2,429) 

Customer Dep. & Deferred Inc. $ 

Affiliated Pay Oper Loan-Gama UK $ 

Affiliated Payable- GamaUK $ 

Affiliated Payable- Gama Aviation $ (28,669) 

Affiliated Payable- Gama Group Ltd $ 

Affiliated Payable- Gama Support $ 

Taxes Payable and Deferred Taxes $ 

Total Cash Provided By(Used in) Operations $ (24,041) 

Investment Activities 

Fixed Assets Purchased $ 7,873 

Fixed Assets Disposed $ 

Sale of Fixed assets $ 

Dividends Distributed $ 

Total Cash Used in Investment Activities $ 7,873 

Financing Activities 

Repayment of Loans $ 

Proceeds from Vehicle Loan $ 

Net Change in Select Charter Funds $ 

Net Proceeds from Director Loans $ 

Total Cash Provided by Financing Activities $ 

Change in Cash Position $ (37,867) 

Beginning Cash $ 50,250 

Ending Cash $ 12,383 
10/16/2012 

Revenue 

Charter Revenue 

Incidentals 

Contract Revenue 

Management Fees 

Fuel Sales 

Maintenance 

Hangar/Storage 

Consulting/Brokerag 

Crew Service Reven 

Mgmnt Services Rev 

Other 

Total Revenue 

Direct Costs 

Aircraft Rental 

Aircraft Operations 

Maintenance 

Fuel 

Incidentals 

Crew Costs 

Hangar Costs 

Other Direct 

Mise/Recovery 

Total Direct 

Indirect Costs 

Charter Sales 

Brokerage Sales 

Flight Operations 

Maint. Admin. 

Aircraft Management 

Accounting/Deprec. 

Total Indirect 

Total Costs 

% 

Gross Profit 

% 

General/Ad min. 

Executive 

Management Service 

Marketing/Advertisin 

Legal/Finance 

Airports Admin 

Interest Expense 

Amortization 

Other 

Total Gen'I./Admi 

Total Pretax 

% 

' 

I 

' 

I 

1 

Coml>ined· •••-;:& 

Total .. 

177,916 

-

-

-

-

-

-

-

2,529,448 

250,550 

-

2,957,914 

-

-

-

-

-

2,300,055 

-

-

-

2,300,055 

-

-

298,117 

35,180 

-

319 627 

652 924 

2,952,979 

99.8% 

4,935 

0.2% 

-

-

-

-

-

-

-

-

-

4,935 

0.2% 

li•dt. : .. 

Sheet 

•v"·'~'u'"''·Pedod Ended 

...... ~al)la~ 

Charters 

177,916 

2,529,448 

250,550 

2,957,914 

2,300,055 

2,300,055 

298,117 

35,180 

319 627 

652,924 

2,952,979 

99.8% 

4,935 

0.2% 

-

-

-

-

-

-

-

-

-

4,935 

0.2% 

<I:·· .· .... 
10/16/2012 

Net Profit After Tax 

Non Cash Items 

Fixed Assets Transferred- Net 

Depreciation 

Amortization 

Total Non-Cash Activities 

Total Cash Provided From Operations 

Operations 

Accounts Receivable 

Inventories 

Prepaids & Deferred Charges 

Trade Payables & Accrued Liabilities 

Affliated Co_ Payable 

Parent Co_ Payable 

Income Taxes Payable 

Total Cash Used in Operations 

Investment Activities 

Fixed Assets Purchased 

Fixed Assets Transferred - Net 

Total Cash Used in Investment Activities 

Financing Activities 

Principal Payments on Debt 

Proceeds from New Debt 

Total Cash Provided by Financing Activities 

Change in Cash Position 

Beginning Cash 

Ending Cash 

--- "-"~~·---·-----""~---------=~~---~~~~-~---~--- -----.. ---···-·----~-~~-

Source (Use) 

-

1,002 

-

(1 00,000) 

-

(23,242) 

500 

39,161 

-

-

(1,779) 

-

14,935 

1,002 

15,937 

(83,581) 

(1,779) 

(69,423) 

119,673 

50,250 
EXHIBIT GAMA-500 
NARRATIVE HISTORY OF GAMA CHARTERS INC. 

Gama Charters was established in 1983 as Flight Services Group, Inc. ("FSG"). From its 

inception and continuing to the present, the company has provided aircraft management services, 

including maintenance, flight operations and insurance, to individual and corporate owners of 

aircraft. Currently, Gama manages 32 aircraft, ranging from Citations to Gulfstream G-V and 

Global Express aircraft. 

As the costs related to the upkeep and operation of aircraft are substantial, many of the 

aircraft owners who have retained Gama for aircraft management services also have entered into 

lease agreements with Gama making their aircraft available for on-demand air charters. Gama 

conducts these on-demand charter services from its base in Stratford, Connecticut pursuant to a 

Part 135 air operating certificate. Although most customer aircraft are based in Stratford, others 

operate from various points throughout the U.S. The company has 42 employees, the majority 

being flight crewmembers. 

In 2009, FSG changed its name to Gama Charters Inc. in furtherance of a franchising/ 

branding agreement entered into with Gama Group Inc. ("Gama Group"). Gama Group is a 

wholly-owned subsidiary of Gama Holdings Ltd., a U.K. company owned and controlled by a 

European Union national. The franchising/branding agreement has been specifically tailored to 

comply with Annex 5 of the U.S.-E.U. Air Transport Agreement, which permits "close business 

relationships and cooperative arrangements between the airlines of each Party." 

Gama has worldwide operating authority pursuant to its FAA-issued Part 13 5 operations 

specifications. It has received numerous industry awards for the quality of its services and the 

safety of its operations, including the FAA Certificate of Excellence Diamond Award. Gama is 

ISO 9000-certified and holds the highest ranking from numerous industry rating organizations, 

including the following: ARGIUS Platinum Rated, Black Bird Approved, Wyvem 

Recommended. 

Based on its excellent reputation in the industry, Gama was approached by the owner of a 

BBJ to manage and operate the aircraft for third-party charters. Upon approval of its request for 

the necessary certificate authority, Gama intends to operate the BBJ for passenger charters 

between domestic points and to destinations overseas. 
EXHIBIT GAMA-600 
0 

US. Deportment 

of Transportation 

Federal Aviation 

Admluishaliuo'l 

Air Carrier Certificate 

This certifies that 

GAMA. CBAR.TERS INC. 

700 GREAT MEADOW ROAD 

SIKORSKY MEMORIAL AIRPORT 

STRATFORD, CONNECTICUT 06615 

has met the requirements ofthe Federal Aviation Actof 1958, as amended, and the rules, 

regulations, and standards prescribed thereunder for the issuance of. this certificate and is 

hereby authorized to operate as an air carrier and conduct common carriage operations in 

accordance with said Act and the rules, regulations, and standards prescribed thereunder 

and the terms, "conditions, and limitations contained in the approved operations specifications. 

This certificate is not ·transferable and, unless sooner surrendered, suspended, or revoked, 

shall continue in effect indefinitely. 

Certificate number: OZGA970I 

Effective date: MARCH 3, 1999 

REISSUED: APRIL 24, 2009 

Issued at._EA_6_3 ______ _ 

By Direction of the Administrator. 

(Signature) 

ACTING l<IANAGER. 

(Title) 

EASTERN REGION, FSDO 63 

(Region/Office) 

q;z 1. --'-~ "-' ..=:JI)_· J1.-t.-.-__· .:._::..-=.•..c==---~ certify that this document is a certified, true and correct copy ofthe original document. 

(Signature, Notary Public) , I 

Dated: 51 d~- I oct 

FAA Form 8430-18 (6-87) 

II'~ j~)D EOS'-JJi~ 

. .JW!i:PT.&..~Y PUBJ:,Jlf/5' l\!l';tC~T.fu~ S'(ll,.~i=OO- ~ ~-12 
j 

i 

EXHIBIT GAMA-700 
-'-·~~"'""'"''"'--~ <'""'"-"""", ·~"~'-""'""'" 

N920DS BBJ Projection 

Month 1 2 3 4 5 6 7 8 9 10 11 12 Annual 

Estimated Charter Flight Hours 33 33 33 33 33 33 33 33 33 33 33 33 400 

Revenue 

Management Fees $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 120,000.00 

Charter Revenues $ 500,000.00 $ 500,000.00 $ 500,000.00 $ 500,000.00 $ 500,000.00 $ 500,000.00 $ 500,000.00 $ 500,000.00 $ 500,000.00 $ 500,000.00 $ 500,000.00 $ 500,000.00 $ 6,000,000.00 

Gama Charter Commissions $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 480,000.00 

Total Revenue $ 550,000.00 $ 550,000.00 $ 550,000.00 $ 550,000.00 $ 550,000.00 $ 550,000.00 $ 550,000.00 $ 550,000.00 $ 550,000.00 $ 550,000.00 $ 550,000.00 $ 550,000.00 $ 6,600,000.00 

Expenses 

Start up costs $ 75,000.00 $ $ $ $ $ $ $ $ $ $ $ $ 75,000.00 

Lease Expense $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 5,520,000.00 

Total Expenses $ 535,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 460,000.00 $ 5,595,000.00 

Gama Profit I Loss $ 15,000.00 $ 90,000.00 $ 90,000.00 $ 90,000.00 $ 90,000.00 $ 90,000.00 $ 90,000.00 $ 90,000.00 $ 90,000.00 $ 90,000.00 $ 90,000.00 $ 90,000.00 $ 1,005,000.00 

Operating Expense Fund 

(Supplied by Aircraft Owner to Gama 

for misc. expenses) $ 225,000.00 
EXHIBIT GAMA-701 
GAMA CHARTERS BBJ OPERATIONS- PROJECTED START-UP COSTS 

Maintenance conformity 

Maintenance Training 

Pilot Training 

Administration expenses 

Total Pre Operating and Startup Costs 

$20,000 

10,000 

35,000 

10000 

$75,000