S A A B A I R C R A F T L E A S I N G

Market ReportIssue 15 December 2006

Rex to add 25 Saab 340Bplusaircraft

Eastern Airwaysrenews Saab 2000leases

Norse Air readiesfor additionalgrowth

M E S S A G E F RO MMichael Magnusson Contents

Norse Air to receive investment for additional

growth in Mauritius and South Africa . . . . . . . . . . . . . . . . . . . . . . . 3

Eznis Airways introduces valuable regional service

to Mongolia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Saab welcomes growing Canadian customer list at

ATAC General Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Upcoming events with Saab. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Rex to lease 25 latest generation Saab 340Bplus aircraft. . . . . . 6-7

Eastern Airways renews Saab 2000 leases . . . . . . . . . . . . . . . . . . . . 8

End of an era as Blue1 moves out of Saab 2000s. . . . . . . . . . . . . . 9

Meet the Asset Management Department . . . . . . . . . . . . . . . . . . . 10

Saab Aircraft Leasing marks PR events . . . . . . . . . . . . . . . . . . . . . . 11

Saab operators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Market Report is published by

Saab Aircraft Leasing.

Editor : Kelly Murphy

Emerald Media

usemerald@aol.com

Europe: Alison Chambers

Emerald Media

alison@emeraldmedia.co.uk

Design and Layout:

Aeris Graphic Design

jenaeris@aol.com

Cover photo by: Taro Yoshizaki

Printed in USA December 2006

©2006 Saab Aircraft

Michael MagnussonPresident and CEO, Saab Aircraft Leasing

Another very busy year is coming to an end. ForSaab Aircraft Leasing (SAL), the year 2006 hasbeen our best in a long time. This year’stransactions represent everything from leaseextensions, to new leases, to aircraft sales.Needless to say, we are extremely proud of ouraccomplishments and feel it is another strongindicator that the market is again recognizingthe economical merits of turboprop aircraft.

I also would like to think the boom inbusiness is a testament to our particular brandof aircraft and our team at SAL.We have worked hard during the year to satisfyall of our customers’ requirements. And, as always, it is encouraging to see repeatbusiness from our long-time Saab operators, like REX, Carpatair and OLT. REXsigned to lease all 25 340Bplus aircraft returning from American Eagle. This isthe biggest order we have had in many years. (See Rex story on page 6.)

During this year we have also had the pleasure of welcoming a diverse groupof new Saab 340 operators such as Adria in Slovenia, Eznis in Mongolia, PacificCoastal and Prince Edward Air in Canada, RegionsAir in the United States, SOL inArgentina and Saint Ex in Mexico. Pacific Coastal and Saint Ex both quickly signedfor more Saab 340s following the launch of their Saab operations this year.

For the Saab 2000 it has been a particularly busy time. The Pakistan AirForce became the launch customer for the Saab 2000 Airborne Early Warningprogram prompting the establishment of a new business unit within the Saabgroup of companies (of which SAL is another). Saab has now launched thedesign process of this major modification of the Saab 2000 airframe. Wind-tunnel tests have been completed, the fin will be extended, and the antennaposition has been finalized.

Eastern Airways in the UK decided to extend leases of their four Saab2000s until 2011 after evaluating and realizing the economics of other newturboprops. As a crowning achievement, Eastern was named the ERA airline ofthe year (sponsored by our competitor, but we did not mind that). Carpatair,having taken two more Saab 2000s has solidified their position as the largestSaab 2000 operator in the world with 13 aircraft in service. Blue1 sadly ceasedSaab 2000 operations as explained later in this issue on page 9. Skyways andCity Airline subleased all of Blue1’s aircraft.We welcome both to the Saab 2000family.

Unfortunately, OMNI had to return their Saab 2000s following the takeoverof Portugalia by TAP. Both aircraft were quickly placed with Carpatair. Polet inRussia also established their Saab 2000 operation after taking delivery ofall six aircraft from Swiss. Our NASCAR fleet keeps growing as The GinnCompany has decided to incorporate Saab 2000s in their fleet, in addition toHendrick and Joe Gibbs Racing.

Many of you attended our Saab 340 Operators Conference in Florida.I think you would agree it was a great event organized by Saab Aerotech. Over90 representatives from our operators attended the three-day event. During2007, Saab Aerotech will organize a Saab 2000 Operators Conference in Swedenwith details to follow.

Finally, I would like to wish you all a happy holiday season and hope tomeet many of you again in, what will most likely be, another busy year! I predict2007 will probably be a year when the supply of aircraft will be tighter andhence values may rise.We shall see.

Leasing a total of nine Saab 340s,Norse Air recently secured a $6 mil-lion investment, a 43% share, fromLonhro Africa PLC (a mining andlogistics group) to facilitate thecompany’s planned geographicexpansion in both i ts charterand leasing operations throughoutMauritius and South Africa.

Norse Air CEO Dave Avnit tellsSaab Market Report the new capitalwill be used to acquire additionalaircraft, mostly Saab aircraft, and toexpand into new geographic mar-kets.

A well-established private avia-tion business, Norse Air operationsalso extend to Afghanistan, IvoryCoast, Central African Republic,Madagascar, Mozambique andSingapore. Norse Air is widely rec-ognized for deploying Russian cargoaircraft, such as the IL76 and AN124/12/32 to move oversized cargo,such as wild game, mining andtelecommunications equipment, aswell as hazardous equipment forthe South African government.

Two years ago, Norse Air deliv-ered the first of three Saab 340Bs toYeti Airlines for its domestic opera-tion in Nepal. Today, Norse operatesSaab aircraft in the Ivory Coast,Mozambique, Madagascar, CentralAfrican Republic and Ghana for anumber of airlines and aircraft op-erators.

The Norse Air group comprisesa number of business units, all ofwhich play an intricate role in avia-tion-related business activities. TheGroup’s businesses have been ac-tive in the aviation industry for over14 years. The group owns dozens ofaircraft (including five Saab 340Asand 4 Saab 340Bs), most of which

are on contract in remote areas ofthe world.

In addition, Norse specializes instructuring leasing arrangementswith end users, acquiring appropri-ate aircraft, arranging finance,managing the operations and im-plementing an effective administra-tion system.

With head offices in Sandhurst,Norse Air’s senior management teamincludes CEO Dave Avnit and hiswife, Nadja, as managing director.

3M a r ke t R e p o r t December 2006

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Norse Air to receive investment for additional growth in Mauritius and South Africa

Norse Air senior man-

agement back left to

right: Mark Ferreira

(Maintenance Director),

Sven Vosse (COO) and

Mike Benfield (CFO).

Left to right: Dave

(CEO) and Nadja Avnit

(Managing Director).

Saab 340B in Nepalin front of the snowcovered Himalayas,operated by YetiAirlines (top) Saab340B crew.

M a r ke t R e p o r t December 20064

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Aiming to bring innovations to theMongolian airline industry, EznisAirways has launched a new regionalairline operation this month with twoSaab 340Bs. Currently, Eznis fliesto four domestic destinations inMongolia: Murun, Choibalsan,Bayankhongor and Dalanzadgad. Inthe new year, the airline plans to addtwo more domestic routes in the farwestern part of Mongolia: Khovd andUlaangom. The company’s long-termvision is to expand its network intoneighboring countries, includingChina and Russia.

The creator of the airline T.Boldbaatar, chairman of NewcomGroup (a holding company with asuccessful investment portolio in theMongolian IT and telecom industry),dedicated the last two years develop-ing the concept of the airline andstudying other airline operations,fueled by the country’s developingeconomy over the last five years.

CEO of the company, R. Arvintsogthas extensive experience havingstarted one of the biggest and mostsuccessful companies in Mongolia,the Mobicom Corporation, whichcontributed nearly 4 percent of thecountry’s GDP last year. The day today operations are handled by a teamof young and enthusiastic managerswho have previous experience with

Mongolian Airlines, Aero Mongoliaand other larger corporations inMongolia.

Selecting the SaabBoldbaatar says the Saab 340 was se-lected “because of our business strat-egy to enter the market withsmaller-sized aircraft in order to gen-erate more frequency and offer moreflexible flight schedules to businesstravelers and inbound tourists.”Compared with other 30-seat turbo-props, Eznis found the Saab 340 wassuperior in range and performance,operating economy, acquisition costand availability of parts and support.

Three years ago, the air transportsector of Mongolia faced historicchanges owing to the withdrawal ofonce-dominant, government-ownedMongolian Airlines from the domes-tic market. Because of the highlysubsidized fare structure, MongolianAirlines effectively blocked any pri-vate airline entry over the past 15years. The government was thereforeprompted to develop a policy tosupport private sector investment indomestic air transport sector. Bothprivately funded Eznis Airways withits Saab 340Bs and Aero Mongoliaoperating Fokker 50s are nowpioneering the country’s domesticmarket.

Eznis Airwaysintroduces valuable regional service to Mongolia

What’s in a name?Eznis is an English and Mongolian

word combined, which actually

means ‘ f l y ea s y ’ . Cha i r man T.

Boldbaatar explains, “We use the

acronym ‘ez’ for ‘easy’, we liked this

i dea l a r ge l y because o f ou r

I T background where ‘ez’ is

commonly used for any occasion.

Meanwhile, ‘nis’ is the Mongolian

spelling for ‘fly’.”

“By choosing this short, but

combined, name we intended to

differentiate ourselves from our

competitors, which are very conven-

tionally named: Mongolian Airlines, Aero

Mongolia and Central Mongolian

Airways,” he notes. Intending to

join the highly brand-oriented trend

of “modern airlines worldwide,”

Eznis’ goal is to bring this new and

sharp image to Mongolian passen-

gers who are used to traveling in

old Soviet equipment with poor,

government-style service.

Boldbaatar underlines, “While

the Eznis logo represents a compass

with eight destinations, we chose a

softer flower-type image which at the

same time gives a relaxing and stress

free feeling to passengers.We believe

our concept of the name and logo is

very important to passengers who

have experienced unsatisfactory air

travel service during the past 15

years in terms of poor safety, outdat-

ed equipment and zero service.”

Upcoming events with Saab2007

February 14-17Alaska Air Carriers Association 41stAnnual Convention & Trade ShowAnchorage, Alaskawww.alaskaaircarriers.org

March 11-13ISTAT 24th Annual ConferencePhoenix, AZwww.istat.org

May 22-24EBACE 2007Geneva, Switzerlandwww.ebace.aero

May 23-26RAA Annual ConventionMemphis, TNwww.raa.org

June 18-24Paris Air ShowLe Bourget, Francewww.paris-air-show.com

September 25-27National Business Aviation AssociationAnnual ConventionAtlanta, Georgiawww.nbaa.org

October 17-19ERA General AssemblyAthens, Greecewww.eraa.org

October 17-19Regional Aviation Association ofAustralia Convention Sunshine Coast, Australiawww.raaa.com.au

November 4-6Air Transport Association of Canada2007 Annual General MeetingHalifax, Nova Scotiawww.atac.ca

November 4-6Speednews 12th Annual Regional &Corporate Aviation Industry SuppliersConference Indian Wells (near Palm Springs), Californiawww.speednews.com

5

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M a r ke t R e p o r t December 2006

Highlighting its growing Canadiancustomer list, Saab Aircraft Leasingpar t i c ipa ted in the 2006 A i rTransport of Canada AssociationAnnual General Meeting November5-7 in Victoria, British Columbia.Approximately 700 delegates and 48exhibitors gathered for the associa-tion’s annual meeting of all types ofCanadian aircraft operators.

While 20 Saab 340s have beenconverted to cargo aircraft, around 15are now operating. Canada’s firstairline to operate the cargo variant isPrince Edward Air Ltd. (PEAir) withone aircraft delivered in October andfuture plans to add a second to its op-erations in Moncton, New Brunswick;Halifax, Nova Scotia; and Saint John’sNewfoundland and Labrador.

Vancouver-based Pacific CoastalAirlines closed on a fourth Saab 340Aduring the meeting with deliveryscheduled by year end. A fifth Saab340A will also be added to the “hometown airline’s”fleet by the first quarterof 2007. (See Saab Market Report story,May 2006, page 6)

In the Prairie Provinces, Saab 340s areoperated by TransWest Air (two) andCorporate Express (two). Calm Airoperates its six Saab 340Bs to 17points throughout Manitoba andCanada's Arctic Nunavat region.

Provincial Airlines operates twoSaab 340s in the Saint John's region.

Saab welcomes growing list ofCanadian customers at ATACGeneral Meeting

Below:Saab team at ATAC meeting (left to right) PollyPrelinger, Patrick McGuiness and Diana Prowell.

M a r ke t R e p o r t December 20066

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Rex to lease 25 latest generationSaab 340Bplus aircraftRegional Express (Rex), the largestindependent regional airline inAustralia, will embark on a massivefleet modernization and expansionprogram starting this month inwhich the airline will add 25 ofthe latest generation Saab 340Bplusaircraft supplied by Saab AircraftLeasing.

The Saab 340Bplus aircraft fea-tures a redesigned extended wingwhich increases airfield performancecapabilities and allows for greaterfuel efficiencies.

Passenger comfort is also greatlyenhanced in the cabin which comesequipped with state-of-the-art activenoise canceling system, larger stow

away bins and modern interiors andlighting. The aircraft also has a larg-er baggage and cargo hold.

“The 25 aircraft will be intro-duced into service over the nextthree years,” says Rex ManagingDirector Geoff Breust, underliningthe aircraft on long-term leaseagreement will enable Rex to meetthe strong demand from regionalAustralia as well as to rejuvenate itsfleet.

“Rex has been finding it increas-ingly difficult to respond to thenumerous requests from regionalAustralia for quality air services. TheSaab 340Bplus aircraft presents Rexwith the opportunity to undertake a

bold commitment to expanding ourservices to regional Australia,” Breusttells Saab Market Report.

Rex has steadily expanded itsSaab 340 fleet and is now one of thelargest 340 operators in the worldwith about 30 aircraft. The airlinehas recently concluded the phaseout of its 19-seat Metro 23s whichwere replaced by Saab 340s, therebyachieving further cost benefits as asingle fleet Saab 340 operator.

Executive Chairman Lim KimHai says he is extremely satisfiedwith the performance of the Saab340 which he describes as “the idealturboprop aircraft for today’s region-al airline environment.” He adds “its

Marke t Repor t

M a r ke t R e p o r t December 2006 7

From left:Hon. John Sharp,Deputy Chairman ofRex; John Howard,Prime Minister ofAustralia; David Lowy– Deputy Chairman ofWestfield Holdings;Kay Hull – Minister ofParliament; Lim KimHai, Chairman of Rex.

Rex announces positive results forfull financial year

Rex, which was listed on the

Australian Stock Exchange in

November 2005, posted a $15.7

million profit after tax, a 141%

increase for the full Financial Year

ended June 30, 2006. Revenues in-

creased by 20% to $174 million,

while passenger numbers grew by

15% to 1.2 million for the period.

Cash holdings increased from $4

million to $23 million without any

interest-bearing debt, with re-

turns on assets of over 20%.

Executive Chairman Lim Kim

Hai noted the company had de-

livered on its IPO forecast to the

shareholders. “The results were

very gratifying against the back-

drop of a continuing difficult envi-

ronment. Besides the sharp fuel

price hikes, there were also the

ongoing pressures of steep price

increases from monopoly infra-

structure providers and regula-

tors,” he said. Lim Kim Hai

underlined the airline’s staff and

management’s dedication which

made the positive results possible

“while at the same time maintain-

ing our average fare at competi-

tively low levels.”

Looking at the current financial

year, Lim Kim Hai conceded

that the operating environment

will continue to be challenging

but has confidence that the

company will be able to achieve

a profit growth of about 20%.

The company recently an-

nounced a first quarter profit

growth of 40% for the period

ending September 30, 2006.

Coober Pedy

Olympic Dam

CedunaBroken Hill Dubbo

Parkes

Mildura Griffith

LismoreBallina(Byron Bay)

NarranderaWagga Wagga

AlburyPort Lincoln

KingscoteKangaroo Island

Mount Gambier

Portland

King Island

Burnie

Merimbula

Moruya

SYDNEY

MELBOURNE

ADELAIDE

Armidale

WhyallaOrange

Bathurst

www. com.au

RexRoute

Map

Snowy Mountains

low operating cost and fuel efficientengines have allowed us to becomeone of the world’s most profitableairlines.”

Every week, Rex offers 1,000flights connecting 33 metropolitanand regional centers across NewSouth Wales, Victoria, Tasmania andSouth Australia. Annually, Rex trans-ports over 1.2 million passengers.Regional Express Holdings Limited,listed on the Australian StockExchange in November 2005, owns100% of Dubbo-based regional air-line, Air Link, and has a 50% stakein Freight and charter operator, PelAir Aviation Pty Limited.

Rex was born in August 2002

from the merger of two of Australia’smost respected and oldest regionalairlines—Kendell and Hazelton—after the collapse of Ansett. LimKim Hai, Rex’s controlling share-holder, took personal control of theairline in October 2003 after a disas-trous first year of operations. Hethen turned the company aroundand returned it to profitability forthe financial year ending June 2004a n d l i s t e d t h e c o m p a n y i nNovember 2005. Today, Rex is ar-guably the most profitable regionalairline in the world with a profitmargin exceeding even the bestlegacy carriers worldwide.

Award-winning UK regional carrierEastern Airways has renewed theleases on its four Saab 2000 aircraftthrough 2011, the airline confirmedat press t ime. Now dedicated toi t s important Aberdeen hub inScotland, serving the key Britishcities of Newcastle, Southamptonand Norwich, the aircraft are per-forming “extremely well,” accordingto CEO Richard Lake.

The year 2006 has been a good

one for Eastern Airways, which inSeptember accep ted the Go ldAward as the European RegionsAirline Association Airline of theYear, judged by a panel of interna-tional aviation and travel trademedia. Eastern, now in its ninthyear, has twice won the Silver acco-lade in 2003 and 2004. TheHumberside Airport, UK-based inde-pendently owned airline was praisedby the judges for its “courage, cre-

ativity and persistence in demon-strating that a small airline can suc-cessfully survive in an environmentdominated by powerful competitors.”

A pure business airline offeringall leather seating, complimentary re-freshments, including champagne onits flights, Eastern performs over800 flights, carrying some 700,000passengers a year on a route net-work that embraces some 26 citiesthroughout the UK. The majorityof its passengers are travelling onday return business trips and Easternhas worked hard with many of itsairports to ensure that its clientsget fast track access through secu-rity. This is important where it isoperating alongside high volume,low cost carriers at airports suchas Manchester and Southampton.Eastern flies a fleet of Saab 2000and BAE Jetstream 32/41 aircraft.This year Eastern launched eightnew routes, including its first inter-national service from Southamptonto Brussels.

Eastern Airwaysrenews Saab 2000 leases

M a r ke t R e p o r t December 20068

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The Eastern Airwaysteam showcases the ERAGold Award (pictured left

to right): ERA DirectorGeneral Mike Ambrose,

Eastern Chairman BryanHuxford, Customer

Relations Manager CathMarshall, COO Chris

Holliday, MarketingManager Nadine Shaw,and CEO Richard Lake.

One of Eastern's Saab 2000s sports a special schemededicated to its important Aberdeen, Scotland hub.

Photo

:Eryl C

rum

p

Marke t Repor t

M a r ke t R e p o r t December 2006 9

Blue1 marked its finalSaab 2000 commercialflight on September 4with a special staff party.

SAS partner airline Blue1 operated

its final commercial flight of the

Saab 2000 (OH-SAU) flying

between Helsinki and Stockholm

Arlanda on September 4th. The

airline marked the occasion with

a special party for staff.

The Saab 2000 has been animportant part of the Blue1 fleet forfive years, first entering service inApril 2001 when the airline was flyingas Air Botnia. “During that time,thousands of passengers have enjoyedthe comfort of this great aircraft,”commented Blue1 CEO and PresidentStefan Wentjarvi. “Where else doyou find a seat pitch of 35 inchesnowadays?”he noted.

The Saab 2000 has been a terrificworkhorse at Blue1, flying mainlybetween western Finland andStockholm, together with Helsinki –Gothenburg and on domestic flightsfrom Helsinki to Vaasa and Kuopio.

The phasing out of the Saab 2000

has been completed according to theinitial plan, with the lease arrange-ment ending at the beginning of 2007,the airline states. It also coincides withBlue1’s expansion plan which com-menced last winter with the order ofthree Boeing MD90 aircraft, the thirdof which arrived in September thisyear. The Saab 2000 proved to be anexcellent route development aircraftfor Blue1, which is now an all jet op-

erator, flying nine Avro RJs and three166-seat MD90s on routes for SAS.

Blue1’s last Saab 2000 remains inSweden flying in the colors of CityAirline and Skyways, both Swedishairlines. City Airline of Gothenbergis using the aircraft alongside itsEmbraer jets and is forecasting astrong interest in charter bookingswith the aircraft, citing its jet speedand generous cabin.

End of an era as Blue1 moves out of Saab 2000s

Customers expect “Saab quality” when

taking delivery of a Saab aircraft. Our

in-house Asset Management team en-

sures such quality. Most aircraft deliv-

ery refurbishment work is done by

third par ties. Saab’s Asset Management

team works on-site to schedule and

oversee this work process ensuring ad-

herence to customer requirements,

regulatory compliance, delivery sched-

ules and budgets. Saab’s team also en-

sures the aircraft records are in order

to ease an operator’s acceptance of an

aircraft.

Our team works with customers

prior to delivery making sure each air-

craft meets the delivery conditions

agreed to in the contract. Often, with

new Saab 340 customers, our team will

work with an operator during the first

week after delivery to ensure a smooth

introduction of the aircraft.

All of this requires each member of

the Asset Management team to work

closely with each customer, make on-

the-spot decisions, and source necessary

parts and services in order to keep the

delivery process going.

Saab’s Asset Management team is

also responsible for conducting regular

technical audits of Saab’s portfolio of in-

ser vice aircraft and for conducting

inspections of aircraft for return to head

lessors.

From three strategically located sites

—Bangor, Maine, Nashville, Tennessee,

and Stockholm Sweden—a total of s ix

Saab emp loyees d i rec t the da i l y

ac t iv i ties of the Asset Management

Department. In Bangor, Stan Klomstad

and John Papini handle most of Saab’s

340A model refurbishment and storage

work. Portfolio audits are also managed

from Bangor. Stan and John have a total

of 62 years of experience. In Nashville,

Dan Prieu and Chad Rowe tap on their

30 years of combined experience to di-

rect the Saab 340 refurbishment and

paint work at Embraer’s facility. Dan and

Chad have also worked with the Saab

2000s. And in Stockholm, Per Hulin and

Jan Jonsson direct Saab 2000 and Saab

340 work with their combined 55 years

of experience.

The US team reports to JoAnn

Bisnath, Senior Vice President of

Commercial. “The dedication and exper-

tise of our Asset Management team

helps make the transition from contract

negotiation to actual delivery a smooth

process for Saab and the customer. We

would not be able to complete a single

aircraft transaction without this great

team of professionals,” she notes.

10

Marke t Repor t

M a r ke t R e p o r t December 2006

Our staff:

Asset Management Depar tment

I n t h i s i s s ue

w e introduce

Saab Mar ke t

Report readers

t o t h e A s s e t

Management

Department.

US office:

Meet the…

Dan Prieu

Chad Rowe

John Papini (left) with a lead technician at Telford

Per Hulin Jan Jonsson

Stan Klomstad

Sweden office:

A busy Embraerhangar in Nashville

full of Saab 340son overhaul or

being prepared fornew customers.

M a r ke t R e p o r t December 2006 11

Marke t Repor t

Saab Aircraft Leasing and Rockwell Collins again jointly sponsored the annualgolf tournament preceding the 2006 European Regions Airline Association(ERAA) Annual General Assembly. This year’s setting in late September was thebeautiful Golf Club de Masia Bach, designed by Jose Maria Olazabal, to thewest of Barcelona. Fifty of ERAA’s finest golfers gathered to compete for prizes.

In a close regional airline competition, Rafael Lopez (Binter Canarias)closed out Jesper Rungholm (Danish Air Transport) and Juhani Pakari (FinnishCommuter) to win first prize in the handicap competition. Jan Palmér(Skyways) retained his title as best player with the lowest number of strokes.

European airline presidents golf at ERAA 2006 in Barcelona

SAL’s Steven Lever (left) and golf winnerRafael Lopez

Morgan Fa l keng ren , SAL V i c e

President-Marketing for Asia-Pacific ,

participated in the Regional Aviation

Association of Australia Convention in

October and is pictured with Randal

McFarlin, owner of Macair.

SAL President Michael Magnusson and Rex Chairman Lim Kim Hai at the

Swedish Ambassador residence in Singapore during a contract-signing ceremony

celebrating REX’s order for 25 Saab 340Bplus aircraft.

Vladimiro Cettolo represented Saab

at a defense exhibition in Buenos

Aires, Argentina during the fall.

SAL marks PR events

Aerolitoral Mexico 12

American Eagle USA 65

Bimini Island Air USA 2

Calm Air Canada 6

Colgan Air USA 37

Corporate Express Canada 2

FGI USA 1

Hendrick Motorsports USA 4

IBC Airways USA 4

Indiana University USA 1

JMJ Flight Services USA 1

Joe Gibbs Racing USA 1

Mesaba Airlines USA 49

Murray Aviation USA 1

Napleton Aviation Group USA 1

Pacific Coastal Airlines Canada 4

Peninsula Airways USA 7

Prince Edward Air Canada 1

Provincial Airlines Canada 2

RegionsAir USA 3

Saint Ex Mexico 1

Sky Bahamas Bahamas 1

SOL Argentina 2

Nordic Airways Sweden 1

Nordic Solutions Air Services Lithuania 3

Norse Air South Africa 9

OLT Germany 2 3

Overland Airways Nigeria 1

Polet Airlines Russia 6

RAF-AVIA Latvia 2

Regional Airlines France 1

Sky Express Poland 4

Skyways Sweden 3

Sky Taxi Poland 1

Swedish Air Force Sweden 9

R

Adria Airways Slovenia 2

Air Åland Finland 2

Amber Air Lithuania 1

Avitrans Nordic Sweden 6

Carpatair Romania 2 11

CCA Czech Republic 4

City Airline Sweden 2

Darwin Airline Switzerland 4

DOT Lithuania 1

Eastern Airways Great Britain 4

Eznis Airways Mongolia 2

Fly LAL Lithuania 4

Fly LPI Spain 1

Golden Air Sweden 13 4

Kenya Airways Kenya 2

Lagunair Spain 3

Loganair Great Britain 13

Mali Air Express Mali 1

Moldavian Airlines Moldavian Rep 2

Operator Country 340 2000Europe & Africa

Operator Country 340 2000Americas

Asia & Australasia

Operator Country 340 2000

Air Nelson New Zealand 10

Air Rarotonga Cook Islands 1

Cosmic Air Nepal 1

Hokkaido Air System Japan 3

Japan Air Commuter Japan 11

Japan Civil Aviation Bureau Japan 2

Japan Coast Guard Japan 2

Macair Australia 4

Regional Express Australia 30

TAG Guatemala 1

Transwest Air Canada 2

Americas

Europe & Africa

R

Saab Aircraft Leasing, Inc.21300 Ridgetop CircleSterling, Virginia 20166, USA Tel: +1 703 406 7200 Fax: +1 703 406 7224

www.saabaircraftleasing.comwww.saabaircraft.com

Saab AerotechSE-581 88 LinköpingSwedenTel +46 13 18 00 00Fax +46 13 18 51 15

Saab Aerotech of America, LLC21300 Ridgetop CircleSterling, Virginia 20166, USA Tel: +1 703 406 7200 Fax: +1 703 406 7222

Saab ope ra to r s

Saab Aircraft Leasing4-7-13-205 MeguroMeguro-ku Tokyo, Japan 153-0063Tel +81 3 3792 4300Fax +81 3 3792 4315

Saab Aircraft LeasingPostal address:Box 7774, 103 96 Stockholm, SwedenStreet address:Sveavägen 17, 11th Floor111 57 Stockholm, SwedenTel +46 8 463 1400Fax +46 8 463 1409 M a r ke t R e p o r t December 2006