Vendors

The Company procures aircraft components In bulk purchases, and mostly sells its own stock. This helps to mitigate overhead expenses. The Company has excellent relationships with high- quality vendors. Jet Aviation vendors offer a wide range of materials needed for the distribution of aircraft components at competitive prices.

Products and Services
Aviation companies primanly purchases component parts that inducle rotables, repairables, expendables, and consumables. Rotables Indude pumps and landing gear and also account for approximately 80% of all parts purchased arid 20% of transactions.
A standard BoeIng 747 jetliner can contain more than 3 millIon parts. Jet Aviation trading services consists of acquEtion and dIsmantling of aircraft for sale. Trading services are dassified as engine sales and other aIrframe components that are sold within three months of aircraft acquIsition. Since 1992, the aircraft Industry has disassembled aircraft on a more frequent basis

with the parts being sold off. Within six months of acquiring an aircraft, Jet Aviation attempts to recover the majority, If not all, of its investment through trading. Any remaining parts are sent to Inventory for future sale.
Disassembled aircraft parts are sent to inventory for bulk sales. Inventory can also be sold as brokered sales. Brokered sales are defined as the purchase and immediate resale of materials or parts. Jet Aviation may purchase a part from an independent third party to atisfy a customer need. The Company usually purchases a part when It Is not currently in stock or Inventory.

Jet Aviation also receives revenue through consignments of inventories. Margins earned through consignments are lower than Jet AVIatIOWS other lines of service but Involve high storage and reporting expenses. The Company believes cDnsignment sour arrangements provide significant strategic value and has focused on consignment our opportunities with operators and overhaul/maintenance facilities since Jet Aviation was founded. Jet Aviation’s Inventory Is held by the overhaul faclhty and tagged, then sold on an exdusive basis to the overhaul facility, The part Is sold as needed, or Jet Aviation sells It to a third party.