VARIABLE COSTS

Fuel at $4.50 / gallon 1 Fuel Additive - $.02 / gallon	$670.50 2.98
Maintenance 2 Labor at $75.00 / hour Parts - airframe, engines, and avionics	142.50 68.10
Engine Maintenance Plan 3	235.90
Miscellaneous Flight Expenses	6.00
TOTAL VARIABLE COSTS PER HOUR	$1,125.98
Average Block Speed (mph) 4	445
COST PER STATUTE MILE	$2.53

FIXED COSTS

Crew Salaries 5 Captain .......... $65,000 Benefits .......... $19,500	$84,500.00
Hangar	10,000.00
Insurance Hull at .66% of value Admitted Liability - $250,000 / seat Legal Liability - $5M	26,070.00 1,540.00 3,200.00
Miscellaneous Overhead Recurrent Training Aircraft Modernization Navigation Equipment	7,500.00 8,400.00 1,300.00
Depreciation 6	40,000.00
TOTAL FIXED COSTS	$182,510.00

TOTAL ALL COSTS

TOTAL COST (350 hours per year)	$576,603.00
Cost per hour	$1,647.44
Cost per statute mile	$3.70
Cost per seat mile	$.37
TOTAL COST LESS DEPRECIATION (350 hours per year)	$536,603.00
Cost per hour	$1,533.15
Cost per statute mile	$3.45
Cost per seat mile	$0.34

Notes
1. 149 gallons per hour. Source: JetNet.
2.Maintenance costs are based on a continous review of data available from operator experience, factory, NBAA and other sources. 1.9 manhour per flight hour.
3. Source: Williams International. TAP Elite Program - Includes Overhaul, Hot Section Inspection, premature removal allowances and loaner engines.
4. Maximum Cruise based on estimated performance from preliminary flight test data.
5. Based on 2007 JetNet salary data, adjusted upwards.
6. Based on $3,950,000 acquisition price and $3,750,000 residual price in 5 years: Consult a Certified Public Account for actual tax savings and depreciation calculations.
(rev. January 2008)