Global Aircraft Solutions in equity pact with Global Aircraft Leasing Partners

Global Aircraft Solutions (GACF), an integrated aviation company engaged in aircraft trading, aircraft parts sales, and scheduled maintenance, repair and overhaul (MRO) services for commercial airlines, charter airlines and aviation leasing companies, including India's Kingfisher Airlines, announced on 4 September that it had entered an agreement to assume a 40 per cent equity interest in Global Aircraft Leasing Partners (GALP), which becomes effective on 1 October 2007.

In the meanwhile, they have agreed that in return for marketing and technical support provided to GALP by GACF to date, GACF will be entitled to a commission equal to 40 per cent of the net profits earned on all transactions entered into by GALP from the date of its inception till 1 October 2007.

In return for its 40 per cent equity participation in GALP, GACF will make a one-time capital contribution of $40,000 on 1 October 2007. GACF will also provide GALP with ongoing technical support to facilitate its commercial aircraft purchasing, leasing and sales activities.

GALP will obtain the services of dedicated personnel from GACF's wholly owned subsidiaries, Hamilton Aerospace Technologies (HAT) and World Jet, to inspect, evaluate, modify, repair, maintain and provide logistical support for its aircraft portfolio. All technical services provided to GALP by HAT and World Jet will be billed at regular company rates. GACF will not be required to make any additional capital contributions in support of any future aircraft acquisitions by GALP, and all debt assumed by GALP as a result of aircraft acquisitions will be non-recourse with respect to GACF.