Raytheon Airline Aviation Services LLC Regional Industry Supplier Conference The Market for Turboprops Seat Market Segment David Rosenberg November 7, 2005

Page 2 Raytheon Airline Aviation Services Located in Wichita, Kansas Formed in January, Employees Manages 270 aircraft today Supports 700 Beech 99’s, 1300’s and 1900’s Provides transportation solutions for cargo, passenger, and government customers Placed 46 aircraft in 2004

Page 3 Raytheon Airline Aviation Services Worldwide 1900 Deliveries September 2004 – September 2005* AlgeriaZimex Star Aviation AustraliaQueensland Police AngolaJet Management BahamasAngel Air CanadaPacific Coastal Sunwest Home Air Georgian Central Mtn. Air JamaicaIntl. Air Link JapanAir Transse NepalBuddha Air PeruProvincial Airlines Puerto RicoMN Aviation NigeriaTipmark Maint. SpainSerair Turks/CaicosTCI South AfricaNAC United StatesAlpine Air Skysource Intl. Colgan Airways Profile Aviation NorthropGrumman Williams Group VenezuelaChevron-Texaco Wyngs 71% of our Deliveries in the Past 12 months Have Been Outside of North America *Some accounts are multiple deliveries

Raytheon Airline Aviation Services LLC General Market Overview

Page 5 Key Players in the 19/30-Seat Market Raytheon Airline Aviation Services (RAAS) Saab Aircraft Leasing Bombardier Embraer BAe Systems American Eagle & Northwest – Currently have 155 Saab 340’s (including subleased planes) – Have been disposing some of their fleet (2004 = 178 SF340’s) Continental & Delta – Whole fleet of EMB-120’s is parked or subleased (5/05 = 40 aircraft)

Page 6 Current Market for 19/30 Seaters Largest current market continues to be North America Largest market for future placements is international Niche airlines, General Aviation and International customers offer the best placement opportunities – These customers have been key drivers in the record used sale numbers we have experienced over the last two years The North American market is under extreme pressure due to low fares and high fuel costs – Smaller airplanes have fewer seats to spread costs Challenging market due to high number of available aircraft – Specifically the parked and re-marketed 30-seat fleet Expect Over 75% of Sales to be to the International & Niche General Aviation Customers

Page 7 Regional 1900 Distribution North America: August 2005 Major U.S. Customers: 21 D PAX Mesa Air Group 30 D PAXGreat Lakes Av. 26 D PAXGulfstream 21 D PAXCommutAir 14 C CargoAlpine Aviation 13 D PAXSkyway 11 C CargoAmeriflight 10 D PAXColgan Air 10 D PAXBig Sky 8 C PAXFrontier Flying 5 C Cargo Alaska Central Major Canadian Customers: 15 D PAX Central Mtn. Air 14 D PAX Georgian Express 2 C Cargo Georgian Express 7 C Cargo Skylink 4 D PAX Skyward 3 D PAX Wasaya

Page 8 Worldwide Parked Aircraft* 19 – 30 Seat Turboprop July 2005 *Source: The Airclaims CASE Database July 00July 02July 04July-0504 to '05 J31/ % Saab % EMB % % Metro % J % Total % With 522 Parked Aircraft it Will Remain a Highly Competitive Market With Some Price Pressure

Page 9 How are Higher Fuel Prices affecting our Market? For our typical regional operator every 1¢ increase in jet fuel price leads to an $80,000 annual increase in expenses An increase in jet fuel price from $1 to $2 increases the hourly operating cost of the 1900D by $120 Fuel prices have made RJs uneconomical in certain markets, thus opening limited new route opportunities for turboprops Turboprop operators (particularly in the U.S.) are cash poor and have limited access to capital, which higher fuel prices exacerbate – This limits their ability to fill gaps being created by RJ’s being pulled back

Page 10 Financing Status Majority of cash sales during 2005 are self-financed by customers – Worked with relationship banks rather than “going to market” Traditional aircraft financing sources remain reluctant to finance airline risk and/or turboprop assets – Deal size is generally unattractive – Customers who cannot bring cash to the table are difficult to finance outside of ECA supported deals U.S. Exim Bank’s regulations limit their ability to support our typical customer – Three 1900D’s supported by Exim in the last two years – Short amortizations (3-5 years) limit applicability Despite roadblocks vast majority of RAAS transactions are “cash” sales

Page 11 Worldwide Market Outlook Limited placement opportunities with North American airlines (mostly in Canada) Have limited supply left of used 1900C’s – Expect to sold out by 2006 Continued focus to selling the 1900D as a General Aviation/niche aircraft, as well as selected special missions applications Strong international sale opportunities in Africa – Key market to place aircraft coming out of the United States

Page 12 U.S %-7%-7%-6% Canada %2%2%2% Europe %-1%-3%-3% Latin/South America %-7%-3%-4% Africa/Mid East %13%11%13% Asia/Australia %-2%0%0% FCST CAGR CAGR Year2-Year U.S. Turboprop Market will Continue to Decline driving availability Highest Overall Fleet Growth in Africa and Canada A/C Seats Cargo PAX BAe J3219$5-7k$10-12k B1900C19$10-12k$12-15k B1900D19N/A$28-33k EMB 120 (Key competition)32$10-20k$21-30k S 340 (Key Competition)32N/A$28-33k Current Lease Rates: Total Fleet Market Outlook 19 – 30 Seaters Source: JP Fleets

Page 13 Market Share - August MetroJetstreamSF 340EMB120EMB110DornierTotal North America ,188 Latin/South America Europe Africa/Middle East Asia/Australia/N.Z Total Population ,135 Total Market Share22.2%6.2%17.0%13.1%17.0%10.4%5.9%8.2%100% Dornier totals include DO228 and DO328 (Turboprop), Jetstream includes J31, J32, J41 Source: “JP Fleets”, August 2005

Page 14 RAAS Formula for Continued Success Provide top notch service/customer support – Aircraft refurbishment & modification – Spare parts, prompt delivery – 24/7 customer support – Roving training teams with web-based training site – Technical manual awareness Focus on reduced cost of operation – Engine programs – Systems enhancements & modernization Develop new or growing applications for 1900’s – Actively market the product worldwide Corporate Shuttle niche Air Ambulance niche Non-Governmental Organizations (NGO) niche Know the 1900 fleet – Conduct fleet monitoring & technical audits – Increase the number of site visits from our tech reps – Conduct regular North American and International operators conferences

Page 15 Thank You!