Press Release

Issued by CEPA (Central Europe Private Aviation).

October 10, 2013

Some of Europe's leading aircraft sales and acquisition brokers have commented on their current business activity and the potential for development in the CEE (central and eastern Europe) region ahead of the 4th CEPA (Central European Private Aviation) Expo in November.

CEPA, the organisation established to assist the development of business aviation between central, eastern and western Europe has been speaking to brokers, operators, airports, MRO, insurers, financiers, and manufacturers, amongst others, in preparation for the Expo to be held in the Congress Centre in Prague on the 26-28th November. Aircraft brokers Colibri and Jet Brokers Europe and lawyers K&L Gates have given their thoughts and opinions on this promising market.

Colibri's sales director for central & eastern Europe, Marian Jancarik commented “Europe's extensive debt problems have reduced the amount of business aviation activity since the beginning of the depression. It has been, and despite its economic crisis, continues to be, the second largest market outside of the U.S., with an installed base of 2,737 aircraft, representing 14% of the world fleet of jet aircraft. CEE represents the significant part of this number. CEE has already logged 161 transactions (year to date) which is almost the same as recorded throughout the entire 2012. So for many OEMs CEE remains the market to look at very seriously”.

Commenting on this data, Brendan Lodge, business development director of Jet Brokers Europe confirmed that, out of the total number of aircraft moving in an out of Europe, 42 new aircraft arrived in the CEE versus the 17 that left the region. He said “Western Europe is seeing a net migration of the business jet fleet due to the level of pre-owned aircraft sales to other regions of the world. It is good to see that not all of Europe is affected the same way and that there are increasing numbers of business jets in the CEE region”.

Pawel Chudzicki, partner at K&L Gates LLP, said of his company's activity “Having completed acquisitions and financing deals around the world, including in the United States, Europe and the Middle East, I have always been impressed with the sophistication of the private and corporate aircraft sector in central Europe resulting from a combination of factors: the global nature of central European businesses which creates demand for international travel; the tradition of aviation in the region; and the talented aviation professionals wanting to lead the aviation world by example”.

CEPA founder and Grossmann Jet ceo, Dagmar Grossmann said “Having dealt with aircraft sales and acquisitions for many years in this region, I have seen a clear increase in the desire of the ultra high net worth individual for brand new jets. That said, there is also a very healthy demand for pre used, mid-sized aircraft which continues to grow.” Mrs. Grossmann added “It was important that we had a panel of key brokers at the CEPA Expo to discuss this important indicator of the CEE market”.

CEPA Expo will feature a panel disscusing the issues facing Brokers in the CEE on the first day of the event. Some of the topics covered will be:

• What do tax laws require and how do authorities regulate?

• When are the dealers buying or selling?

• Are values falling or rising?

• Financing of pre-owned aircraft.

• Aircraft refurbishment and what is the market for used aircraft.