Answer Happy

Breed Airport Services: Sale/Leasebacks, Budgeting, Reporting, and Variance Analysis Alfonso F. Canella Higuera Without a doubt, 2020 was a horrible year for the world's economies and in particular for the aviation industry. Jess Breed thought her fixed-base operation (FBO), Breed Airport Services, would not make it to 2021 in one piece but it did. Breed made it, burned a lot of cash in process and was now in peril of defaulting on its bank debt. Things were desperate and called for thinking of a new strategy to save the firm. Having operated her FBO for years, saving every possible dollar and reinvesting it in the operation had given Jess the cushion necessary to weather a year-long storm. She always thought that there would be another possible Sept. 11 ahead, but she never thought it would be a virus that would send the industry into a tailspin. The cause didn't matter, though. Jess salvaged the business by using up almost all the cash she had reinvested into Breed over 20 years. Now, 2021 was dawning and everyone was hopeful that it would be a different case. It was time! Looking at the fiscal year end (FYE) preliminary numbers, Jess winced at the brutal results for the year: Net Sales -Cost of Goods Sold (COGS) -Gross Profit Breed Airport Services 2020 Preliminary Financials -S.G & A Expenses EBITDA - Interest -Depreciation/Amortization EBT - Taxes - Net Income December 22,154 28,989 (6,835) 58,032 (64,867) 2,000 15,344 (82,211) (17,264) (64,947) October 19, 2021 12 mos. 310,156 536.297 (226,141) $74,517 (800,657) 27,400 184,128 (1,012,185) (212.559) (799,626) As if the income statement weren't terrifying enough, the balance sheet looked even bleaker as the company's liquidity had dropped precipitously. Cash balances had dropped to $25,000 from EMBRY-RIDDLE Aeronautical University WORLDWIDE

previous levels of over $550,000. The company had $890,000 in debt and equity had fallen to one fourth what it had been at the start of 2020. Jess had a lot of work to do to fix the balance sheet! Jess's daughter, Isabel, had spent the fall semester of 2020 at home as her university had closed down. Even though she was taking a full course load, she always made the time to help at the FBO whether it was running the front desk, fueling planes, taking service orders, and learning about avionics. That fall term, Isabel was taking a history of aviation course when she came across the story of Pan American Airways. Pan Am, as it was called, was considered in its heyday one of the classiest airlines in the industry. Its Clipper service was considered the standard for luxury and efficiency and it boasted of a round-the-world single price ticket. More importantly, Pan Am had revolutionized air travel with the use of jet airplanes, jumbo jets, and electronic seat reservations. Despite all these advances, Pan Am fell on hard times during the 1970s as a result of the spike in oil prices. In fact, the airline's financial position had deteriorated so much that it had to sell its iconic Pan Am building on Park Avenue in New York City to Met Life, an insurer, in 1981 for $400 Million. PANAM Source: Library of Congress. At the time, $400M was a fortune (well, it is today too but it was a much bigger one then) and Pan Am was able to continue operating for another 10 years after selling the building - such was the impact on the company's liquidity. Still, by 1991, the liquidity had run out and Pan Am filed for bankruptcy. It was the third airline to go bankrupt that year as Eastern Air Lines and Midway Airlines had also previously filed for bankruptcy. (Parenthetically, following bankruptcy, Pan Am's assets were bought by Delta Airlines.) Page 2 of 14 EMBRY-RIDDLE Aeronautical University WORLDWIDE

Airlines come and airlines go and Pan Am's demise was a sad event but Isabel discerned a nugget of truth about how Pan Am managed that demise. This truth could conceivably be used to throw her mother's business a lifeline. What if Breed sold its buildings and leased them back, just like Pan Am had done? The next morning at the breakfast table, Isabel suggested a sale/leaseback to Jess. She knew enough about Breed to know that although the business was borderline illiquid, it was certainly asset rich. It was time to sell those assets for much needed cash. Four months later, Jess closed the sale/leaseback of the buildings where the FBO operated. Jess and Isabel celebrated the event eating Milky Way ice cream and watching Tom Hanks star in Sully. When all was said and done, the balance sheet looked like this: (in '000 S) Cash & Securities Receivables Inventory Other Page 3 of 14 Fixed Assets Total Assets Payables Accruals Other Current Breed Airport Services Balance Sheet Current Assets Current Liabilities Long Term Debt Equity Total Liabilities and Equity 12/31/20 25 250 182 52 509 884 1,393 74 48 41 163 890 340 1,393 Debt to Equity The sale/leaseback could be summarized as follows: • the buildings were sold for a net $692,000, of which: o $550,000 was used to pay down the mortgage o $142,000 went into Breed's bank account Building Sale & Leaseback 142 3.10 (566) (550) 126 1/1/21 167 250 182 52 651 318 969 74 48 41 163 340 466 969 1.08 • the appreciation of the buildings went into Breed's equity- the formula for the appreciation is $692,000 - $566,000 (i.e. the book value) - equity gain EMBRY-RIDDLE Aeronautical University WORLDWIDE

Jess knew that Isabel's suggestion had saved Breed but there was a lot more to be done. With 2021 starting and people itching to get out and about, the aviation industry was looking to get some of its life back. Still, there were problems and they loomed large-receivables had ballooned to 341 days as customers had strayed from paying back: Month December Historical Breed Airport Services Accounts Receivable (in '000 S) (A) Receivables 250.0 13.2 Page 4 of 14 236.8 (B) Month's Sales 22.0 22.0 (A)/(B) Days Receivables 340.9 Must collect Jess had two choices, she could visit those clients that owed her money and press them to pay and/or she could sell some of the receivables to a factor. Since she knew her clients a lot better than any factor, she decided to visit those that she knew had received government stimulus funds (about 90%) and offer them a one-time 5% discount if they paid right then and there. For the remaining 10%, she would sell the receivables to a factor at a 10% discount. 18.0 She was fairly certain that she could make a go of this but nonetheless she enlisted Isabel to look at the numbers and make observations. Isabel knew how much business they had done with her mother and she also knew many of them from her days working at the front desk. She realized that these clients were fairly well off (even though they had taken a hit during the pandemic nonetheless) and were men and women "of their word". She suggested to her mother that they not sell anything to the factor. She also suggested they ask for 100% of what was due and settle, if necessary, for 95% of the receivable. She volunteered to go on the client visits and be presented not just as the daughter but also as the keeper of the books. She argued that it's hard to lose face to two people rather than just one. She would prove to be right. Over the four weeks, Jess and Isabel visited their clients and when all was said and done, they were able to collect 99% of the receivables. Mind you, Jess and Isabel though that it would be highly improbable that they'd be able to get 93% if that, but Jess admitted that the clients were, as Isabel had aptly observed, people of "their word". So, of the $236,800 that needed to be collected to get Breed back to its historical average of 18 days receivables, Jess and Isabel managed to collect $234,432. So, in the shuffle, Breed took a book loss of $2,368-the difference between the $236,800 it was owed and the $234,432 it finally collected. This number wasn't just more than all the cash the company had at year end after the sale/leaseback, it also happened to be palindromic. Jess and Isabel took it as an omen of better times ahead. EMBRY-RIDDLE Aeronautical University WORLDWIDE

With the late receivables collected, Breed was now in a much better position to enter 2021 and get back to normal. Just as importantly, its cash position was much improved: (in '000 S) Cash & Securities Receivables Inventory Other Fixed Assets Total Assets Payables Accruals Other Current Page 5 of 14 Current Assets Current Liabilities -S,G & A Expenses - EBITDA - Interest Breed Airport Services Balance Sheet -EBT 12/31/20 25 Net Sales -Cost of Goods Sold (COGS) -Gross Profit -Depreciation/Amortization Taxes - Net Income t 250 182 52 509 884 1,393 74 48 41 163 890 340 1,393 Building Sale & Leaseback 3.10 Long Term Debt Equity Total Liabilities and Equity Debt to Equity It was now time to focus on the 2021 budgets. Jess had not had a chance to get them done in 2020 because what was the point of doing that when the company was on the verge of insolvency? With Isabel's help, she put together the January and February actuals quickly: Breed Airport Services 2021 Financials January 55,982 24.311 31,671 18,448 13,223 2,000 9,879 (566) 2,075 7,804 (550) 126 100% 33% 4% 2% 18% 1/1/21 167 250 182 52 4% 651 318 969 %February 58,221 43% 25,162 57% 33,059 14% 74 48 41 163 340 466 969 Receivables Collection 1.08 18,632 14,427 2,000 1.344 11,083 234 (237) 2,327 8,756 (2) 100% 43% 57% 32% 25% 3% 2% 19% 1/31/21 401 13 182 52 4% 15% 651 318 969 74 48 41 163 340 464 969 1.09 MBRY-RIDDLE Aeronautical University WORLDWIDE

It was Isabel that suggested doing a common size per cent column for the income statement. That way, Jess could quickly glimpse how Breed's margins were doing. Also, this made it easier to draw up budgets going forward as she could use the percentages to drive them. Again, with Isabel's help, she took the January and February financials and drew up the February balance sheet, also common sized: (in '000 $) Cash & Securities Receivables Inventory Other Page 6 of 14 Fixed Assets Total Assets Payables Accruals Other Current Breed Airport Services Balance Sheet Current Assets Current Liabilities Long Term Debt Equity Total Liabilities and Equity 1/31/21 401 13 182 52 651 318 969 74 48 41 163. 340 464 969 % 41% 1% 19% S% 67% 33% 100% 5% 4% 17% 35% 48% 100% 2/28/21 412 9 188 54 663 317 979 76 49 42 167 340 472 979 42% 196 19% 68% 32% 100% 8% 5% 17% 35% 48% 100% The new view of the common sized balance sheet was helpful. With it, Jess quickly realized that Breed was running about 50% debt and 50% equity. The banks liked that Breed was reducing its leverage and he could use it in the future to line up lower interest rates to reduce costs. Looking ahead, Jess resolved to reduce Breed's debt position so that she could weather future economic upheavals. She understood that the cost of debt is much lower than the cost of equity but her business depended less on profit maximization and more on her doing what she wanted - working with people that shared her love of flying airplanes. And now, she was getting the impression that her daughter was taking a shine to the business. Not just that, she was very good at it. Her suggestions made her life considerably easier and now she hoped that she would eventually run the business alongside her when she finished college. With the February financials put to bed, it was time to do the monthly budgets for the remaining 10 months of the year. After some discussion with Isabel, who was now the de facto CFO, Jess decided to use the common size income statement to drive the process. First, however, she needed to look at a normal year and use that as reference for the monthly budgets. EMBRY-RIDDLE Aeronautical University WORLDWIDE

The reason for looking at past performance is that Jess knew that her business had a seasonality. People flew more and more often during the summer months and much less during the winter months. She wanted to inform her monthly budgets with that seasonality and blend that seasonality with the slow improvement she was seeing in the economy in 2021 as the pandemic started to wane. After reviewing the FAA's forecasts for general air travel and some discussions with clients and suppliers, Jess and Isabel decided to assume the following revenue growth rates from one month to the next: March April May June July +7% August September +5% October November -4% December -11% To look at Breed's seasonality, they put the 2019 numbers on the dining room table along with their table for 2021. They got to work on the 2021 budget now that the company was back on firm footing. After completing the 2021 monthly budgets, Isabel then tackled the variance analysis system that Jess had implemented years before. This system would help allocate bonuses amongst Breed's maintenance, repair and overhaul (MRO) unit's staff. The MRO unit did brisk business, was very profitable and cross-subsidized the fuel operation, which operated at a break-even. So, the financial performance of the unit was of primordial importance to Breed. Just as importantly, it was paramount to offer the right incentives to the staff at the shop. They had to feel invested in the performance of their unit and, as such, should receive bonuses that reflected the unit's performance. Breed was strictly a local operation that served a limited clientele of middle-class enthusiasts that flew elderly single-engine planes. This clientele would go out for a few hours per week, basically out-and-back, and spend most of their time "hangar flying". Jess was fine with that as this was her cohort-no frills, laid back, and flying for the enjoyment. Page 7 of 14 Jess did not operate a flight school but she did host instructors that used her hangar and tie- downs to park their aircraft. She had once toyed with the idea of selling aircraft but the capital requirements to meet the minimum inventory of planes quickly put paid to that dream. For her, Breed was more a calling than a business and yet she understood that hobbies can become money pits if they weren't run in the black. And she intended to keep Breed in the black. Breed's MRO unit had two head mechanics, Mark and Shane, working 48-hour weeks. They were paid well but did not get benefits such as health insurance, paid time off, or sick time. As they explained it: "we eat what we kill." This was a cut-throat business and clients could go anywhere for repair work. Depending on the airport's location, the competition could be fierce, and Breed was EMBRY-RIDDLE Aeronautical University WORLDWIDE

in one of those competitive locations. Costs had to be kept strictly in check in order to make a go of it and proper budgeting and variance analysis was a way to ensure that. As said, the vast majority of the aircraft tied down in the airport were elderly and tended to require more work than newer aircraft. Mark and Shane knew that and over the years had earned a reputation for high quality work that was reasonably priced with quick turn-around times. Mark and Shane were eligible for bonuses to top up their pay and since the bonuses worked off how they ran the operation themselves and the bonus rules were unambiguous and numeric, the two were happy with the arrangement. Most other units in other FBOs did not get this sort of leeway but Jess preferred it that way and the system worked - the two mechanics had worked for Breed for 25 and 30 years each. Under this system, Mark and Shane were not going to leave, forcing Jess to hire new, untested mechanics - an expensive and uncertain proposition. Also, Mark and Shane were like part of the family and Jess treated them like what they were those ensuring the safety of the flying public. Aside from serving as brand ambassadors with the clients, the unit performed the following tasks for these clients: • Mechanical and electrical diagnoses. Repair and overhaul of engines System maintenance Engine and avionics testing and updating Assembly and installation of instruments Recording of maintenance and repair work Jess not only gave operating leeway to her mechanics but also offered them a transparent view of the FBO's overall cost structure. The way she saw it, if the mechanics knew exactly the costs associated with running Breed, they could come up with novel and practical ideas on how to reduce those costs. The way the system worked, the FBO would share in whatever cost savings were achieved with the two head mechanics and their staff. Breed had a simple profit-sharing system that was based on unit performance versus budget. The system worked as follows: Page 8 of 14 Profit over Budget 0-5.0% 5.1-8.0% 8.1-11.0% >11.1% <0% Bonus $5,000+2% $10,000+ 5%* $15,000+9%* $20,000+12% * SO of the dollar variance to budget Mark and Shane had operating control over everything above the gross margin line except for the labor rate charged per hour ($120). Jess knew it was her business and even though Mark and EMBRY-RIDDLE Aeronautical University WORLDWIDE

Shane handled the day-to-day operation, she was the one responsible for the FBO's financial health and, perhaps just as importantly, its relationship with its clients. The $120/hr. rate was lower than that charged at other FBOs in the area and Jess took pride in that. Deep down, though, Jess suspected that Mark and Shane would raise their rates and put Breed on the slippery slope to maximizing profits and driving away many of its more cash-strapped clients. Jess was transparent and she wanted that transparency to inform its mission of serving its existing client base with an affordable, high-quality service. To make up for the lower labor rates charged, Jess kept close controls on overhead. It was this lower-than-average overhead that gave Breed its ability to operate in such a competitive market. And it was this attitude that factored in Jess's decision not to become a more full-fledged FBO, with its high capital requirements (and the costs that came with them), a more impersonal service (as it was, Jess was a fixture at the hangar flying bull sessions), and corporate profit targets (those were the beginning of the end in Jess's mind.) For their part, Mark and Shane knew what a good deal they had. In the past, they had tested the market to see what it was offering in terms of wages and had found out that they were on the high end of the pay scale for mechanics. Not just that, just about no other FBO offered up bonuses for performance. They realized how much real operating power Jess had handed to them. Plus, they also realized that they enjoyed hanging out at the hangar after hours with Jess and the pilots. So, Breed was a bit like a family but with the added advantage that they had chosen it and not had it thrust upon them! Mark and Shane knew they had good numbers for 2020 despite the pandemic and they looked forward to the meeting with Jess to confirm all this. They knew that despite the pandemic, their clients had continued flying as for many of them, it was almost impossible to infect anyone when they were up in their cockpits thousands of feet above ground. Further, many of the clients had taken to flying even more hours in order to escape the oppression of being home bound for weeks on end. So, in a perverse way, the pandemic had actually turbo-charged the operation by having the clients fly more and more often, thus needing more repair and maintenance services. Mark and Shane were quite familiar with the variance analysis system that Jess had implemented and they knew Breed's results for the year. Still, the meeting, while a formality, came as a relief to everyone as everyone knew that Breed had dodged a bullet in 2020 due to the pandemic. They were familiar with their department's cost structure and had a reasonable knowledge of the firm's overall cost structure. Still, what they did not know was just how low the firm's liquidity levels were, all thanks to the pandemic. In particular, they were not quite as aware of the firm's slowdown in collecting receivables. They had thought all along that payments were being made by clients as they received their invoices. Clearly, no one had said anything during the bull sessions in the hangar. So, it came as a shock when Jess and Isabel informed them that the firm was inches away from insolvency and was rescued by the sale/leaseback and the collection of receivables from customers flush with government cash that pumped liquidity into the economy. So, after all this was mentioned, Mark and Shane thought there would be no bonuses this year. Jess quickly clarified that they had done well, as everyone well knew, and the firm would EMBRY-RIDDLE Page 9 of 14 Aeronautical University WORLDWIDE

share in the profits as this was the basis for continued operation in the future. So, they all sat down and went over the departments results, which were as follows: Revenues (billed out): -Labor (hrs.) -Labor rate (S/hr.) -Parts (S/hr.) Costs: -Labor (hrs.) Labor ($/hr.) -Parts mark-up Page 10 of 14 Revenues: - Labor -Parts Costs: -Labor -Parts Gross Margin Overhead: - Space - General & Admin. -Depreciation - Legal & Regulatory Budget 3,456 Total Overhead 120 345 Net before Taxes Taxes Net after Taxes 3,840 42 80% 414,720 437,760 1.192.320 1.168,092 Total Revenues 1,607,040 1,605,852 161,280 168,650 953,856 899,431 Total Costs 1,115,136 1,068,080 537,772 491,904 Actual Fav./(Unfav.) 3,648 120 320 75,000 35,000 68,500 18,000 196,500 3,877 44 77% 75,000 35,000 68,500 18,000 196,500 Item Base bonus Profit share (9% of favorable gross margin dollars) Total 295,404 341,272 62,035 71,667 233,369 269,605 192 (25) 37 2 S Fav./(Unfav.) 23,040 (24.228) (1,188) 7,370 (54,425) (47,056) 45,868 ▾ As Mark and Shane were measured up to the gross margin line for their bonus, the data showed that they were 9.3% to the better on the budget. So, they would be receiving: 45,868 9,632 36,235 Mark Shane $15,000 $15,000 $4,128 $4,128 $19,128 $19,128 EMBRY-RIDDLE Aeronautical University WORLDWIDE

As part of the meeting, Jess showed Mark and Shane how the variances worked for 2020. Parts and labor were the two variances which were on the table as explanations of the performance for the year. Jess also noted that the gross margin gains were due from gains in the use of labor and % from gains in the sales of parts. Jess noted that increased billed hours as a percent of total available labor hours had gone up and made up most of the labor variance gain. She was pleased that Mark and Shane had understood that idle time was basically overhead and that being busy working on customers' aircraft was a surefire way of beating the budget targets for revenue. Mark and Shane said that they understood that clearly and that they were happy, at the same time, that Jess had kept labor charges to clients at $120/hr. thus bringing in more business for them to work on. Clearly, the labor variance showed the benefits of Jess's vision of entrusting the mechanics to do the work and for her to set rates that made them competitive. The parts variance was a bit more complicated as the parts revenue per service hour had fallen. Mark and Shane noted that one of the key reasons for this variance was the increased usage of imported parts, which came at lower price points. The meeting closed with Jess handing Mark and Shane their bonus checks and all three agreeing that 2020 was an excellent year despite the pandemic. They looked forward to 2021 with great hope. Case Questions Use the yellow colored tabs in the Breed template to: • prepare the March - December budgets using the data provided in the template. Provide a one-page, bulleted listing of what drove your assumptions and why you made them. You must show ALL formulas to receive ANY credit. The last two pages in this case provide a model for completing this part but do not represent the numbers you must use; the numbers you must use are in the template • use formulas to calculate the 2/28/21 balance sheet in the template and EXPLAIN your methodology in the column provided. In other words, you will be doing the work that Jess and Isabel did in the case • calculate the variances outlined in the template using the numbers shown in it. Note that at all times, you must tie to the income statement S favorable/(unfavorable) variances: In doing this work, keep in mind the various formulas for variances. These are shown below to make your calculations easier. Also, as part of this exercise, you will enter the data presented in the case. Make sure to use the following notation-red numbers are manual inputs of numbers and black numbers are formulas. The table is formatted already and will guide you as to which is which. All variances will use formulas and hard coded numbers will not be accepted. Page 11 of 14 EMBRY-RIDDLE Aeronautical University WORLDWIDE

Finally, please submit a summary evaluation of how Mark and Shane did and WHY they got the results they go. So, in effect, you will translate the variance analyses you made into English to explain what happened during 2020 in the MRO unit. You have been given a space to do this in the template provided for Breed. Labor Revenues Revenue (hrs.)=[Actual Labor (hrs.)- Budget Labor (hrs.)] x Budget Labor Rate (S/hr.) Rate (S/hr.) =[Actual Labor Rate (S/hr.)-Budget Labor Rate ($/hr.)] x Budget Labor (hrs.) Costs Costs (hrs.) = [Budget Labor Costs (hrs.)- Actual Labor Costs (hrs.)] x Actual Labor Costs (S/hr.) Labor (S/hr.) [Budget Labor Costs (S/hr.) - Actual Labor Costs (S/hr.)] x Budget Labor Costs (hrs.) Parts Revenues Revenue (hrs.)=[Actual Labor (hrs.)- Budget Labor (hrs.)] x Budget Parts (S/hr.) Revenue (S/hr.) =[Actual Parts (S/hr.)-Budget Parts (S/hr.)] x Actual Labor (hrs.) Costs Costs (hrs.)=[Actual Revenue Labor (hrs.)-Budget Revenue Labor (hrs.)] x Budget Revenue Parts (S/hr.) x Budget Parts Mark-up Costs (S/hr.) [Actual Revenue Parts (S/hr.) - Budget Revenue Parts (S/hr.)] x Budget Revenue Labor (hrs.) x Budget Parts Mark-up Mark-up =[Actual Parts Mark-up-Budget Parts Mark-up] x Budget Revenue Labor (hrs.) x Budget Revenue Parts (S/hr.) Page 12 of 14 Other = this is a balancing variance that allows for the sum of the variances tie to the calculated parts variance EMBRY-RIDDLE Aeronautical University WORLDWIDE

Page 13 of 14 Aeronautical University EMBRY-RIDDLE Net Sales -Cast of Goods Sold Crass Holl -50&A Expenses - EBITDA Jane Depreciation Amet Tan -Not Income Salmroth rate Net Sales -Cast of Goods Sold -Cress Profit AG&A Expues EBITDA Depreciation Amet ENT Notlacome IMACY 68,925 10.324 38,390 20,677 17,920 2,500 1,411 13,965 11,032 100% 44% 5674 10% 2014 4% 294 2 10% Exam 18,221 25,103 33,059 18,631 14,427 2,000 1411 11.083 1321 8.750 40% 100 43% 19625 19628 2016 NE 1962 1994 496 18% March 41,715 26313 34.802 18,132 15,669 2.179 1.415 12,035 2.327 9,508 100% 44% 7695 Pall Not 296 20% 2 NOT Artil 66,035 28,797 37,238 20,412 16,766 1,415 13,132 3,338 10,374 TPPH 100% 44% 56% HIN 21% NE 2%² 20% St 10% Breed Airport Services 2019 Actuals Max 70,457 CLEDE 19,844 21,905 17,940 2179 1,411 14,305 3.004 11,30 7.0% 100% 44% 56% NIE Ital 2N 20% the 10%) ne 76.310 33.278 43.032 23,657 19.375 6412 3.411 15,741 3,300 12435 www 100 4450 7495 NIE NIE IN 294 2194 Tak 10% Zub 159'14 LOVEL 44,044 25,313 29,731 1,415 17,097 3,190 13,906 Tall 100% 44% 16% 34% 29% NE 2TH NIE 47 17% Aug Stember October Neuba Decemb 90,878 47,243 74,540 19.631 14,001 11,247 49.240 16.550 37,344 48.307 26,832 21,975 2.379 1,413 18.341 1.332 14,49 6.05 100% 44% 56% INIC 21% 3% NE NIE 4N 17% 28,173 23.074 2.179 1.415 19,439 4082 15,397 50% 100% 44% 56% 31% 21% 29 29 21% NA 17% 27,156 22,084 2,379 1413 18,450 3,374 14.875 4.9% 100% 44% 50% INIC 201 2% 21% 2 17% 83,753 Istal 906,474 38319 32,101 195.292 47334 42,099 $11,182 25,97 21,257 3,379 1,413 17422 3501 13,922 370 IN NIE IN 23,122 18,918 40% -11.0% 100% 44% 1694 JIN Nit 2,179 1,455 15,383 3.309 39,163 12,074 147,329 100% 16% 31% 21% 31 214 215 AN 281,048 230,134 10% 26,293 17,400 186,492 100% 44% 56% NIE 21% NE 2N 215 2 16%

WORLDWIDE Page 14 of 14 Aeronautical University EMBRY-RIDDLE maging FPS FM) IPHO HOTRA 10. wy ARAY Ate 500 35 75325 3 39 39 393 [] * Breed Airport Service 201 MAY 30 ENO JAKA 38 Se 74 75 990 28 Incal