N1, LLC

“All things engines”

N1, LLC Confidential 1

N1, LLC – Joint Venture with Directional Aviation

N1 Is The Key Mechanical Business in A Global Aerospace

Powerhouse, Providing Comprehensive Support to
Business Aviation Operators
N1, LLC Confidential 2
Flexjet and Flight Options by the Numbers

32 Challenger 300
7 Challenger 350
64 HTF 7000
14 HTF 7350
32 36-150BD
7 36-150BD

7 Legacy 500
14 HTF7500
N1, LLC Confidential 7 36-150EMB 3
Flexjet and Flight Options by the Numbers

18 Lear 40/45 6 Lear75

36 TFE731-20 12 TFE732-40
7 RE100LJ 6 RE100LJ

3 Global Express
6 BR710
3 RE220GX

6 Challenger 604/605 5 Gulfstream G450

12 CF34-3A N1, LLC Confidential
10 Tay 611-8C 4
6 36-100/150CL 5 36-150 GIV
Flexjet and Flight Options by the Numbers

23 Nextant 400xTi 5 Legacy 600

46 Williams FJ44 10 AE3007A
5 T62T-40C14

22 Phenom 300
44 PWC 535E

1 Gulfstream GIV
13 Citation X
2 BR710
26 AE3007C N1, LLC Confidential 1 RE220GIV 5
7 36-130CX
 Three Main Components to Our Business
• Material Sales • Fleet Management Programs (FMP)
– Engine tear down for run out engines – Providing technical support for operators
(ship dirty) – 24X7 Hotline
– Cleaning and inspection for FAA – Responsible for On-wing light
Certification of used parts removed from maintenance
engines. – Includes catastrophic engine failure
– Includes whole engine sales and lease Coverage
engine services
• Engine Maintenance
– Support Fleet Maintenance
Requirements
– Support Corporate & Individual Owner
Maintenance needs
– Moving to a higher level of maintenance
certification: LIGHT HEAVY
– Also will include off wing overhauls as
well as field service work on wing
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Transforming from “Provider to Partner”
Key to success is seamless integration with
operations at Flexjet and Flight Options
296 Propulsion Engines & 86 APU’s with an Other
Operators

Asset Value of over $1B

Directional
Capital

Active engine maintenance management - aided by Fleets

technology N1
• Scheduled coordination calls
• Solid relationships
• 24X7 Engine Control Center
• N1 will be “All Things Engines” as far as
customers are concerned
• N1 will be the integrator between vendors
and in-house capabilities
• No delay in decision making at customers on
who to call

N1, LLC Confidential 7

 HTF7000 Specific Value Proposition
• N1 Managed Fleet:
• 32 Challenger 300’s (64 HTF7000’s)
• 7 Challenger 350’s (14 HTF7350’s)
• 7 Legacy 500’’s (14 HTF7500E’s)

• 96 HTF7000 Family of Engines with combined 600,000 + Flight Hours; increasing

at 100,000+ Flight Hours per year

HTF Engine Hours

25
Events: Quantity
• 2,000 Hour Inspections 86
20 • 4,000 Hour Inspections 66
• 8,000 Hour Inspections 45
• 12,000 Hour Inspections 8
15

10

0
<=2000 2001-4000 4001-6000 6001-8000 8001-10000 10001-12000 12001-14000

HTF7000 HTF7350 HTF7500E

N1, LLC Confidential 8

HTF 7000 Capabilities
• Flexjet is the Fleet Leader for the HTF 7000
– Challenger 300/350 and Legacy 450/500
– N1 drove 8000 hour inspection limit increases
– Agreement in place to work on all Flexjet aircraft (MSP and non-MSP)
• Tooling, training, parts, manuals
– Able to work on 3rd party engines through ICA guidelines
• Maintenance Capability
– 2000 Inspection (igniter fuel nozzles)
– 4000 Hour Inspection (all fuel nozzles + hot section boroscope)
– 8000 Hour Inspection (all fuel nozzles + hot section boroscope + compressor boroscope)
– OSSD/W5 harness changes
– MRT response
– Engine Removal/Installation
• Spare Engine Support
– Two Honeywell-inspected HTF7000 engines
• Overhaul Support
– Local to Phoenix Honeywell shop
– Proven inspector experience on staff
N1, LLC Confidential 9
How N1 Can Assist
• Flexjet has decided NOT to put the HTF7000 engine on MSP or JSSI
– Why not? Because this engine is an “on condition” engine. With current MSP rates, you are
paying for a heavy repair every 8,000 hours of operation
– N1 offers all services at a fraction of MSP, plus covers catastrophic engine failure coverage as
part of the N1 program
• N1 has solutions for the HTF7000 fleet problems
– # 4 Bearing failures – can proactively change bearing (and spring cage/outer race) before
failure
• Open project to identify vibration signatures for worn spring cage/bearing
• Relatively low cost for replacing bearing proactively
– LPT Blade failures – working to bring disk riveting and balancing processes in house
• Also working DER to hard-face z-notch platform to prevent wear in the future
• HON is working a similar mod for new blades, but will require full set replacement with new
– OSSD/W5 wire harness reliability
• The first to install the new configuration on the HTF7000
• Campaigning the fleet to increase reliability – in conjunction with airframe visits

• The only independent HTF7000 heavy maintenance shop in the world

– DERs
– Serviceable material
– Alternate repair/procurement sources

N1, LLC Confidential 10

N1 Knows the HTF7000
• N1 is the prime maintenance provider for Flexjet, and currently does work
on other 3rd party engines
• N1 has the operator’s viewpoint of the HTF7000 engine – not the
manufacturer’s
– Example: N1 forced the increase of damage limits on the compressor rotors, saving industry
literally millions of dollars
• By joining the N1 program, the alliance of operators continues to grow
– Louder voice and leverage to force HON to make changes that benefit all operators
• N1 has hired the top technicians from the original OEM MRO shop
– Factory trained and experienced
– Knowledge on weaknesses in current programs – and desire to fix them as an independent
– No pressure to make decisions based on the “economics” of the big company OEM, but instead
can work to make engines more reliable, save costs, and do the technically superior options
• Channel partners don’t make money unless they find reasons to remove
your engines!!
Most easily put, N1 searches for ways to keep engines on wing longer, while
Channel Partners search for reasons to remove them.
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Introducing the N1 Engine Maintenance Program
• Only pay for known costs that you have coming due
– Labor and material (including travel) for scheduled inspections
• 2000/4000/8000 hour inspections including fuel nozzle exchanges
– MRT (AOG) coverage in North America for unscheduled events (excludes LRUs)
• Outside N America coverage is currently being developed
– 24X7 AOG desk
– Engine planning and reliability tracking
– ECM (subcontracted to CAMP)
– Catastrophic engine failure coverage for up to the cost of a replacement engine!
• Great rates for items not covered by hourly program
– For items found out of limits during inspections, charges are based on agreed-to Time and
Material (T&M) rates
– N1 has a large inventory of serviceable parts for sale and exchange
• HPT cases, fan stators, inlet cases, HMUs, starters, fuel nozzles, etc…
– N1 has unique repair capabilities
• Patented horizontal module removal up to combustor – reduces need to leak test fuel system or remove front end of engine
• HPT Case repair capability in house
• Working to bring in LPT balancing and disk riveting capability currently

Why would you pay for items that you may never need? The N1 program is
the smartest way of managing your HTF7000 engine fleet.
N1, LLC Confidential 12
N1 Catastrophic Engine Failure Coverage

N1, LLC Catastrophic Physical Damage Coverage Coverage Highlights

• Catastrophic physical damage to scheduled engines for direct and accidental

physical loss caused by mechanical or electrical breakdown, failure or malfunction
of the engine resulting from a single incident.
• Engines and values as reported monthly.
• Reimbursement of rental costs of a temporary replacement engine or component.
• Coverage extension to include replacement of a component, accessory or part
required to meet the engine manufacturer’s service requirements (“sunshine
damage” are parts that are found outside limits but not related to prime reason for
engine repair).
• Coverage does not include loss of use; diminished value; required replacement of a
component, accessory or part to meet the engine manufacturer’s service
requirements; damage resulting from failure to comply with Airworthiness Directives
or to accomplish maintenance, repair or modification required by the engine
manufacturer.

N1, LLC Confidential 13

N1 Program Compared to MSP/MSPG/GNRL

N1, LLC Confidential 14

N1 Program Compared to MSP/MSPG/GNRL

30-50% Cost Avoidance

In Comparison with Honeywell MSP Programs
N1, LLC Confidential 15
Technical Example of N1 Fleet Management
Program Benefits

Planning for Maintenance Events Based on Fleet Experience

N1, LLC Confidential 16

N1 Program: Daily Attention To The Operator

• Daily 8:00 AM meeting to status Fleet

Maintenance for Fleet of 296 Propulsion
Engines and 86 APU’s

• Conference Call with Mesa Arizona <>

Morgantown West Virginia <> Flexjet

• Tracking by Tail Number, Engine Serial

Numbers

• Electronic Status Board of Work Orders

• Predictive Maintenance and Logistics

Planning

• Status of “Away Teams” performing

Maintenance on Wing

• East Coast USA services 600 Mile Radius

from Morgantown with tooling equipped
Truck.

N1, LLC Confidential 17

N1: Complete Teardown of HTF7000 in Mesa

Staging
Shipping
Inlet – Fan Removed

Fan Inlet
N1, LLC Confidential 18
N1: Complete Teardown of HTF7000 in Mesa

Fan Hub
Fan Blades

Compressor Module
Front Frame &
Fan Hub

N1, LLC Confidential 19

N1: Complete Teardown of HTF7000 in Mesa
Exit Guide Vane

Assembly
Diffuser
LP Turbine Removal
Vertical

N1, LLC Confidential 20

N1: Complete Teardown of HTF7000 in Mesa

LP Turbine Removal
LP Turbine Removal

LP Turbine Assembly
Tooling

N1, LLC Confidential 21

N1: Complete Teardown of HTF7000 in Mesa

Inner Bypass Duct

View Through Aft
HP Turbine
LP Turbine Case

LP Turbine
N1, LLC Confidential 22
N1: Complete Teardown of HTF7000 in Mesa

LP Turbine &
LP Turbine

Stub Shaft
Accessory Gearbox
Accessory Gearbox

Case
Stand

N1, LLC Confidential 23

N1: Number 4 Bearing: HTF7000

No. 4 Bearing: Rollers

No. 4 Bearing

No. 4 Bearing Scrap

Results from Failure

N1, LLC Confidential 24

N1 Strategic Locations
Mesa, Arizona (KIWA)
• Administrative Headquarters
• Home of the Fleet Management Program (FMP)
• Focus on Honeywell products
• Where the first test cell is to be installed next year

Morgantown, West Virginia

• Close proximity to PWC (Clarksburg)
• Teardown / Cycle I shop for PWC products
• Focus on PWC products

N1, LLC Confidential 25

Morgantown, WV Location

N1, LLC Confidential 26

Morgantown, WV Location

PWC dedicated cleaning processes.

SPOP 209, 213, 18, 216, 3, and 7

Magnetic Particle bench

N1, LLC Confidential 27

Morgantown, WV Location

Fluorescent Penetrant high

sensitivity and ultra high sensitivity

Assembly and inspection area

N1, LLC Confidential 28

 Expanding Product Offerings
• One Stop Shop Approach
– Move to more integrated model
Beginning
• Managing HTF7000 and
PW535 Fleets off of OEM
programs
• JT15D Engine Teardowns
• JT15D Part Sales
• JT15D Engine Leases
Next 12 Months
Engine Management = Unscheduled
Maintenance, EHM, Catastrophic Failure
Coverage, Reliability
Tracking/Improvement.
Now/Future
• * Managing All Fleets off of OEM
programs
• Managing engines remaining on OEM
programs
• JT15D Engine Teardowns
• PWC RTC and Cycle I Shop
• JT15D Part Sales
• JT15D and HTF7000 Engine Leases
• HTF7000/PW535/TFE731/JT15D Light
and Heavy Maintenance
• HTF7350/HTF7500/Tay611-8C New
Engine Introduction and Management
• Offering like services to outside
companies
N1, LLC Confidential 29
The N1 Advantage Over Other Providers

Other
Providers N1

N1, LLC Confidential 30

Success is Driven by Flexibility
• Independent Provider
– Design our own engine management program
– Serviceable material
– DER Repairs
– Focus on reliability items for our fleets
• Experience Flying your Own Fleet
– Know where to spend time/money on cost reductions
– Operator’s view on cost vs. OEM view on revenue
• Focus on Just our Engine Models
– Not “a mile wide and an inch deep.”
– Consider life cycle cost vs “gold plating” until the last day
• Sense of Urgency Getting Back in the Air – Operator’s Perspective
– Safety
– Cost
– Availability

N1, LLC Confidential 31

N1 – Management and Key People
Bill Metera – President
Delta Air Lines, GE, Honeywell, Turbine Engine Support – Leadership, sales, materials management,
repair development engineering, production control (Six Sigma)

George Barber – Chief Operating Officer

PWC WV, Honeywell, DAI, Airwork – Line engineering, repair development engineer, materials
management, leadership, production control (Six Sigma/ACE)

Rob Wilson – Strategy & Growth

Honeywell Biz Av President 9 years – retired - program management, sales, production control (Six
Sigma), technology, business development, operational improvement, broad industry relationships thru
GAMA & NBAA

David Rocheleau – Fleet Management (FMP) and Business Manager

Project Manager, International Business Boeing, Director of Program Operations United States &
International Consultants (USIC), Senior Manager, Honeywell Program Office, Program Manager,
Tucson Embedded Systems

Jim Fisher– Director of Operations

A&P for 24years, Experience as a Manager, Supervisor, and Mechanic in the following engine programs:
TFE731, AS907,Spey,Tay, AE3007, PW300’s, PW500’s, PT6A, JT15D,

Michael Ward– Director of Sales and Marketing

AlliedSignal/Honeywell, Engineering, Manufacturing Procurement, BMW Rolls-Royce, BR710 Engine
Development, Germany, Honeywell Defense Propulsion Engines, AGT1500, T53, T55, HTS900,
TFE731, HTF7000, Technical Sales, Leadership, Six Sigma
N1, LLC Confidential 32
 N1 – Key People: Fleet Management Program

Rachel Jasso – Fleet Manager Pratt & Whitney

• 4 Years with United States Navy: Trained and performed as Jet engine mechanic
• 2 Years on Apache Production with Boeing.
• Obtained approval through FAA for 2 TBO escalations for current N1 customer- earning her a letter of
commendation from our customer

Ubaldo Ozaeta (OZ) – Fleet Manager Honeywell

• 8+ years of aviation experience
• 5 years as a Harrier jet engine mechanic in the United States Marine Corps
• 2 Years Honeywell Assembly of OEM HTF7000 engines
• Developed methodology to predict maintenance event costs within 5% of actual

Erik Thompson – HTF7000 Engine Consultant

• Founder of CTS
• First 300 HTF7000’s engines maintained

N1, LLC Confidential 33

 N1 – Key People: Maintenance

Brian Britton – Quality Manager

• Quality Manager, an A&P Mechanic with 23 years of engine experience
• Supervisor Airframe and Powerplant at Omni Air International.
• Supervisor and technicians with certifications on Boeing, Embraer, Airbus, CF34, GE56 CT-7 and P&W 4090, PT6 PW 150
John Haddix – Mechanic
• A&P with over 34 years of experience at Pratt and Whitney, WV
• Held positions as Technician, Lead Tech, Process Inspector, Shop Supervisor and Regional Turbine Shop Manager Performed
heavy maintenance on the JT15D, PW 300, PW500 and PT6.
Gabe Lambert – Lead MRT Mechanic (West Virginia)
• A&P Mechanic with more than 8 years of experience on business jet
• Certifications for Challengers, Citations, Pratt Whitney and engine run and taxi.
• Engine & Airframe Solutions Worldwide: Citation Series, Gulfstream G200, G450, G550 Challenger CL-604, LearJet60
Aaron Edwards – Lead Mechanic
• A&P for 22 years with over 20 years’ experience on business Jet Engines
• Supervisor & Lead Trainer for Honeywell Aerospace Phoenix R&O Propulsion
• Material Coordinator on the following products: ALF 502/507, CFE 738, and HTF 7000 Series Engines
• Green Belt Certified, 5s Champion, Lean Principles, formally NDT level II certified in EC and US.
Mike Williams – Lead MRT Mechanic (Arizona)
• A&P 10 years on Business and Military Aircraft
• 2 years with HTF7000
• 3 Years with Jt15D/PT6A/B Hot Sections
Kevin Mayo – Mechanic
• 25 years Aviation Experience, Retired US Army, 17 years, USMC 5 years
• USMC 5 years
• HTF7000 and TFE731 Teardown and Assembly Trainer
Jeremy Newsom – Mechanic
• 2 Years with GE CF34-8C5 (Mesa Airlines)
• 1 Year with HTF7000
• MRT and Shop Tech
N1, LLC Confidential 34
JT15D Capabilities
• Engine Maintenance
– Over 150 years of experience in WV shop
– MRT Support
– Hot Sections (HSI)
– Engine Removal/Installation
– Configuration changes (-5 to -5A)
• Material Support
– Over 80 engines torn down (Nextant Mod aircraft)
– Largest serviceable parts supplier to PWC
• Large amount of LLPs due to military engines not being able to use commercial LLPs
– Selling JT15D parts since 2011
• Engine Leasing
– 5 Engines currently in pool
• Engine Exchanges/Sales
– Contract with PWC for overhauls
• Supply our own parts with no fees
• Used part discounts
• New parts discounts
– Exchange fresh overhauls for a flat fee
• No unknowns
• Single engine change (not two per event)
• No lease engine requirement
• Minimize downtime

N1, LLC Confidential 35

PW535/PW545 Capabilities

• Flight Options is the Fleet Leader for the PW535

– More aircraft being delivered
– This year will be the first overhauls for the PW535
– TBO Extension plans in place (April overhauls)
• Maintenance Capability
– ESP Approved for 3rd party companies
– Hot Section (HSI)
• Parts/repair agreement to PWC for parts N1 doesn’t have/repair
– Engine Removal/Installation
• Overhaul Support
– Negotiated best-in-industry contract for engines that come in under N1 PO
– Local to Clarksburg PWC shop
– Proven inspector experience on staff

N1, LLC Confidential 36

GTCP 36-150 APU
• Executing FAA 145 Approved 36-150 APU Shop for Corporate Aircraft
– Able to work on 3rd party engines through ICA guidelines
• Manuals through ownership of Flexjet aircraft
– No restrictions on material – regional aircraft market availability
– DERs/PMAs allowed
– Will tear down regional jet APUs to harvest material
• Maintenance Capability
– Will have complete overhaul capability
– APU Removal/Installation
• Spare Engine Support/Exchange
– One GTCP 36-150BD
– Will set up exchange pool
• Overhaul Support
– Local to Phoenix Honeywell shop
– Proven inspector experience on staff

N1, LLC Confidential 37

Join N1 As We Reshape the Engine Aftermarket
• N1’s program shoots right to the heart of the problem with traditional
MSP/ESP/PBH programs – You pay for the things you don’t use
• N1 offers the coverage for unscheduled events, scheduled events, and
even catastrophic failure – at a fraction of the price
• No buy-in >>> Full coverage from day one
• Transferable (even an incentive paid for getting others on the N1 program)
• Proven experience and backed by an industry leader
• We may be a new company, but we have hundreds of years of engine
maintenance experience in our ranks – all with the desire to do the right
thing for technical reasons, not OEM program costs or aftermarket margins

Contact Information
Michael Ward – Director of Sales & Marketing
844-613-6446 x304 (o)
480-526-0067 (mobile)
Michael.Ward@n1engines.com

N1, LLC Confidential 38