Economic hardships facing air carriers in 2005, driven by the surge in fuel prices, have led to a resurgence in demand for more fuel-efficient turboprops. Prior to 2005, many analysts had been writing the obituary for the turboprop. But new turboprop sales surpassed regional jet sales for the first time in 10 years, greatly benefitting turboprop brokers such as Saab Aircraft Leasing (SAL).

SAL placed 32 aircraft last year, including 10 Saab 2000s and 22 Saab 340s (see table). These turboprops were placed mostly with existing customers, such as U.S. regionals Colgan Air and Shuttle America, but five new customers also came into the fold.

Included in these transactions were two dedicated Cargo Saab 340As to IBC and RAF Avia. These latest orders will grow the total to 12 Saab 340As all Cargo in service adding to five existing Quick Change-aircraft.

In 2006, SAL is undertaking placement activities for four Saab 340A aircraft. The company has the lowest inventory of available aircraft in many years, totaling only seven Saab 340As, one S340B and no Saab 2000s. Some 20 aircraft are scheduled for lease returns during 2006. This is nearly the number of aircraft SAL has been placing annually.

"The transactions for 2005 show a wide spread amongst diverse customers in many countries, showing the continuing worldwide appeal of the Saab aircraft," said Michael Magnusson, President and CEO of Saab Aircraft Leasing. "We are also very pleased that third parties placed another 87 Saabs to meet the demands of the market."

Saab aircraft were in demand by third parties during 2005, resulting in the placement of 87 aircraft. These consist of 40 Saab 340As, 35 Saab 340Bs and 12 Saab 2000s. These 87 Saab transactions added to the 32 SAL aircraft makes an unprecedented 119 Saab aircraft placements. SAL placed 37 percent of the Saab 340As, few 340Bs because of lack of availability, and 45 percent of the Saab 2000s.

The worldwide fleet of Saab 340s and Saab 2000s is approximately 500 units operated by roughly 50 customers in 20 countries. By December 2005, the Saab 340 fleet had accumulated 11.8 million flight hours and 13.2 million cycles. The highest time aircraft was at 44,500 hours, and highest time cycles was at 53,700. The Saab 2000 fleet had accumulated 970,000 hours by December and 956,000 cycles. The highest time aircraft was 23,200 hours and 22,400 cycles, reflecting a younger fleet.

Saab Aircraft Leasing manages a portfolio of 218 Saab 340s and Saab 2000s leased to 25 customers in 13 countries.

Meanwile, Bombardier [BBD] said it delivered twice the number of its Q100/200/300 turboprops in fiscal year 2005-06, for the year ending Jan. 31, 2006, than it did in fiscal year 2004-05. It delivered 12 of these turboprops versus six the year before. The company delivered the same number of the larger Q400 turboprops, 16, as it did the year before.

>>Contacts: Michael Magnusson, Saab Aircraft Leasing, (703) 406-7220; on the Web at http://www.saabaircraftleasing.com; Marc Duchesne, Bombardier Aerospace, (514) 855-7989, on the Web at http://www.bombardier.com.<<;