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Democratic Republic of Congo

BUSINESS PLAN
AIRCRAFT TYPE: BOMBER
EXPLOITATION RESEAU INTERIEUR RD.
CONGO EN RADIAL

AIRLINE COMPANY
"NEW OKAPI AIRWAYS
 2

December 2017

WORK PLAN

Introduction

Diagram of the radial network that can be operated by Bombardier (DR.

Congo Interior Network).

Development

I. Operating data

a) Fleet presentation/choice and network

b) Projected schedule in flight hours
c) Average seat occupancy factor
d) Share of expected traffic/day/week/month and year in passengers,
freight and excess baggage

II. Projection of operating income in terms of estimated sales/month and

year

- Summary table of expected revenue/year (USD)

III. Operating cost projections

III.1. Hourly costs (USD)

III.2. Monthly operating costs
III.3. Annual operating costs with visualization table

IV. Forecast operating account for the entire fleet (5 Bombardiers)

V. Monthly operating budget for the first quarter of flight operations

VI. Conclusion

Introduction
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The operating network of five bombers on the domestic radial network is

made up of five zones:

I. Zone West covers the following provinces

- Kinshasa;
- Former Ecuador ;
- Ancienne Bandundu;
- Kongo Central.

II. Zone Est is closed to the following provinces:

- Maniema ;
- North Kivu ;
- South Kivu.

III. Zone Nord consists of ;

- Former Oriental Province as a whole.

IV. Zone Sud renferme de :

- Former Katanga province seen in its old configuration.

V. Zone Centre is made up of :

- Province of Greater Kasai.
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Diagram of the radial network that can be operated by Bombardier

Libenge
Gbadolite
Gemena Isiro
Buta
Bunia
Boende
Basankusu
Beni
Bumba
Mbandaka Kisangani
Lisala Goma
Inongo
Kiri
Nioki
Lodja Bukavu
Bandundu Kindu

Kinshasa
Moanda Kananga
Matadi Kikwit
Mbuji-Mayi
Tshikapa Kalemie

Manono
Kamina
Kongolo

Kolwezi
Lubumbashi

Ports of call/Zone :

I. East zone II. Central zone III South Zone

- North Kivu - Grand Kasaï (Ex-Kasaï Occidental, - Ex-Prov. Katanga :
- South Kivu Ex-Kasaï Oriental) : - Lubumbashi
- Maniema : - Kananga - Kalemie
- Goma - Lodja - Kongolo
- Bukavu - Mbuji-Mayi - Manono
- Kindu - Tshikapa - Kamina
- Beni

IV. North zone V. West zone V. West zone

- Ex-Prov. Orientale : - Ex-Prov. Ecuador : - Prov. of Central Congo :
- Kisangani - Mbandaka - Matadi
- Isiro - Lisala - Moanda
- Bunia - Bumba
- Gbadolite
V. West zone
- Ex-Prov. Bandundu :
- Kikwit
- Bandundu City
TTL: 22 Domestic stopovers

I. Operating data
 5

a) Fleet overview/Choice and network

Acquisition/Leasing or partnership of 6 Bombardier aircraft to serve the DR.

Congo radial network.

The five aircraft will each operate in an operating area as indicated above, and
the sixth aircraft will be a back-up aircraft in the event of maintenance failure
or unavailability of one of the five to serve its operating area.

These five Bombardiers will be based respectively :

- 1 in Lubumbashi for the South Zone
- 1 in Kinshasa for the West Zone
- 1 in Goma for the East Zone
- 1 in Kisangani for the North Zone and 1 in Kananga for the Centre Zone.

It is worth noting that these short-haul aircraft will be positioned to operate

domestic flights combined with regional flights operated by other airlines.
These Bombardiers will return to Kinshasa once a week for maintenance work.
The technical bases in the interior will only be able to offer daily routine work.

b) Projected schedule in flight hours

Fleet utilization

Item Devices Weekly Monthly Annual

1 Bombardier (1) 37.05 148.20 1.778.40

2 Bombardier (2) 30.00 121.40 1.456.80
3 Bombardier (3) 29.45 117.80 1.413.60
4 Bombardier (4) 36.50 146.00 1.752.00
5 Bombardier (5) 37.05 148.20 1.778.40

TOTAL 170.05 681.60 8.179.20

c) Average seat occupancy coefficient :

- Bombardier configuration 60-seat configuration
- 50% seating : 30 places
 6

- 60% seating : 36 places

- 65% seating : 39 places
- 70% seating : 42 places
- 80% seating : 48 places
NB: The acceptable average used in the calculation is 39 seats, representing
65% seat occupancy at the start of operations.

d) Share of expected traffic per day/week/month and year in pax/freight and

excess baggage

(1) Share of traffic Passengers to be carried

An average of 108 passengers per Bombardier aircraft per day.

108 pax X 60
 100
=64 , 8 % ≅ 65 % average passenger load factor.

 108 pax/day/Bombardier x 6 operating days = 648 pax/week

Per month
 Bomb (1): 648 pax/week x 4 weeks = 2,592
pax/month
 Bomb (2): 648 pax/week x 4 weeks = 2,592
pax/month
 Bomb (3): 648 pax/week x 4 weeks = 2,592
pax/month
 Bomb (4): 648 pax/week x 4 weeks = 2,592
pax/month
 Bomb (5): 648 pax/week x 4 weeks= 2,592 pax/month
12,960 pax/month

Per year
 Bomb (1) : 2,592 pax x 12 = 31,104 pax
 Bomb (2): 2,592 pax x 12 = 31,104 pax
 Bomb (3): 2,592 pax x 12 = 31,104 pax
 Bomb (4): 2,592 pax x 12 = 31,104 pax
 Bomb (5): 2,592 pax x 12= 31,104 pax
155,520 pax/year

(2) Share of freight traffic to be transported

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This means an average of 1,000 kgs of freight transported per Bombardier

aircraft per day:

 1,000 kgs/day x 6 days = 6,000 kgs/week x 4 = 24,000 kgs/month/AC x

12 = 288,000 kgs/year/Bomb (1), Bomb (2) and Bomb (3).
 Bomb (4) will have 1,000 kgs/day x 6 days = 6,000 kgs/week x 4 =
24,000 kgs/month x 12 = 228,000 kgs/year.
 Bomb (4) will also make 228,000 kgs/year.

(3) Share of traffic Excess baggage to be transported

An average of 200 kgs of excess baggage carried/day per Bombardier

aircraft:
 200 kgs/day x 6 days = 1,200 kgs/week x 4 = 4,800 kgs/month/AC x 12
= 57,600 kgs/year/ Bomb (1), Bomb (2) and Bomb (3)
 Bomb (4) will have 200 kgs/day x 6 days = 1,200 kgs/week x 4 = 4,800
kgs/month x 12 = 57,600 kgs/year

II. Operating income projections (in USD)

Estimated operating income per month/year (in USD) :

- Average passenger fare : USD 160
- Average rate per kilo freight : 1.20 USD
- Average rate per kilo of excess baggage : 1.50 USD

II.1. Expected passenger revenue/month

 Bomb (1) : 2,592 pax/month x USD 160 = 414,720 USD/month
 Bomb (2) : 2,592 pax/month x USD 160 = 414,720 USD/month
 Bomb (3) : 2,592 pax/month x USD 160 = 414,720 USD/month
 Bomb (4): 2,592 pax/month x 160 USD = 414,720 USD/month
 Bomb (5) : 2,592 pax/month x 160 USD = 414,720 USD/month
2,073,600 USD/month

II.2. Expected revenue in passengers/year

 Bomb (1) : 414,720 USD x 12 = 4,976,640 USD/year
 Bomb (2) : 414,720 USD x 12= 4,976,640 USD/year
 8

 Bomb (3) : 414,720 USD x 12= 4,976,640 USD/year

 Bomb (4) : 414,720 USD x 12= 4,976,640 USD/year
 Bomb (4) : 414,720 USD x 12= 4,976,640 USD/year
24,883,200 USD/year

II.3. Expected freight revenue/month

 Bomb (1): 24,000 kgs x 1.20 = 28,800 USD/month
 Bomb (2): 24,000 kgs x 1.20 = 28,800 USD/month
 Bomb (3): 24,000 kgs x 1.20 = 28,800 USD/month
 Bomb (4): 24,000 kgs x 1.20 = 28,800 USD/month
 Bomb (5): 24,000 kgs x 1.20 = 28,800 USD/month
144,000 USD/month
II.4. Expected freight revenue/year
 Bomb (1) : 28,800 USD x 12 = 345,600 USD/year
 Bomb (2) : 28,800 USD x 12 = 345,600 USD/year
 Bomb (3) : 28,800 USD x 12 = 345,600 USD/year
 Bomb (4) : 28,800 USD x 12 = 345,600 USD/year
 Bomb (5) : 28,800 USD x 12 = 345,600 USD/year
1,728,000 USD/year
II.5. Expected excess baggage income/month
 Bomb (1): 4,800 kgs x 1.50 = 7,200 USD/month
 Bomb (2): 4,800 kgs x 1.50 = 7,200 USD/month
 Bomb (3): 4,800 kgs x 1.50 = 7,200 USD/month
 Bomb (4): 4,800 kgs x 1.50 = 7,200 USD/month
 Bomb (5): 4,800 kgs x 1.50 = 7,200 USD/month
36,000 USD/month
II.6. Expected excess baggage revenue/year
 Bomb (1) : 7,200 USD x 12 = 86,400 USD/year
 Bomb (2) : 7,200 USD x 12 = 86,400 USD/year
 Bomb (3) : 7,200 USD x 12 = 86,400 USD/year
 Bomb (4) : 7,200 USD x 12 = 86,400 USD/year
 Bomb (5) : 7,200 USD x 12 = 86,400 USD/year
432,000 USD/year

II.7. Sum of expected passenger, freight and excess baggage revenues

II.7.1. Passengers : USD 24,883,200
II.7.2. Freight : USD 1,728,000
II.7.3. Excess baggage : USD 432,000
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27,043,200 USD
Average monthly production was USD 2,253,600.

We say: Twenty-seven million forty-three thousand two

hundred US dollars.

SUMMARY TABLE OF EXPECTED REVENUE/YEAR

Freight
Pax products Products Exc. Total revenue
Item Devices revenues (in
(in USD) Bag (in USD) (in USD)
USD)
01 Bomb (1) 4.976.640 345.600 86.400 5.408.640
02 Bomb (2) 4.976.640 345.600 86.400 5.408.640
03 Bomb (3) 4.976.640 345.600 86.400 5.408.640
04 Bomb (4) 4.976.640 345.600 86.400 5.408.640
05 Bomb (5) 4.976.640 345.600 86.400 5.408.640
TOTAL 24.883.200 1.728.000 432.000 27.043.200

III. Projected operating costs (in USD)

Hourly/monthly/annual operating costs

III.1. Hourly costs (in USD)

BOMBARDIER:
 ACMI : USD 1,100
 Fuel : 800 USD
 Aero fees : 200 USD
 Handling : 150 USD
 Catering : 100 USD
 Night stop : 100 USD
 Crew : USD 50
2,500 USD/Bombardier

III.2. Monthly and annual costs

Item Wording Bomb (1) Bomb (2) Bomb (3) Bomb (4) Bomb (5)
01 Flight times 148.20 121.40 117.80 146 148.20
02 ACMI 163.000 133.540 129.580 160.600 163.000
03 Fuel 118.560 97.120 94.240 116.800 118.560
04 Redev. Aero 29.640 24.280 23.560 29.200 29.640
 10

05 Handling 22.230 18.210 17.670 21.900 22.230

06 Catering 14.820 12.140 11.780 14.600 14.820
07 Night stop 14.820 12.140 11.780 14.600 14.820
08 Crews 7.410 6.070 5.890 7.300 7.410
Monthly total 370.480 303.500 294.500 365.500 370.480
Annual total 4.445.760 3.642.000 3.534.000 4.386.000 4.445.760

III.3. Annual operating costs: Summary of expenses (in USD)

Item Wording Bomb (1) Bomb (2) Bomb (3) Bomb (4) Bomb (5)
01 ACMI 1.956.000 1.602.480 1.554.960 1.927.200 1.956.000
02 Fuel 1.422.720 1.165.440 1.130.880 1.401.600 1.422.720
03 Redev. Aero 355.580 291.360 282.720 350.400 355.580
04 Handling 266.760 218.520 212.040 262.800 266.760
05 Catering 177.840 145.680 141.360 175.200 177.840
06 Night stop 177.840 145.680 141.360 175.200 177.840
07 Crews 88.920 72.840 70.680 87.600 88.920
Annual total 4.445.760 3.642.000 3.534.000 4.386.000 4.445.760

IV. Operating income forecast for the entire fleet (5Bombardier) (in USD)

Item Wording Expenses /year Products/year

01 Passenger products 20.736.000
02 Freight products 1.440.000
03 Excess bag. 360.000
04 ACMI 8.996.640
05 Fuel 6.543.360
06 Aero royalties 1.635.740
07 Handling 1.226.880
08 Catering 817.920
09 Night stop 817.920
10 Crews 408.960
20.447.420
11 Direct margin/cost 6.595.780
TOTAL 27.043.200 27.043.200

NB: The projected operating statement for the entire fleet (5Bombers) shows
a positive margin of USD 6,595,780 in the first year of operation.

V. Monthly operating budget (in USD)

TOTAL
MONTH MONTH MONTH
N° LIBEL QUARTERL
1 2 3
Y
I 1. AIRCRAFT LEASING To negotiate
Security Deposit To negotiate
Monthly rent (ACMI) To negotiate
Pre-financing flights 1.334.000 1.334.000 1.334.000 4.002.000
II 2. OPERATING EXPENSES
2.1. Staff 353.000 301.000 300.000 954.000
Ground staff 110.000 110.000 110.000 330.000
 11

Flight deck crew 40.000 40.000 40.000 120.000

Cabin crew 120.000 120.000 120.000 360.000
Staff transport - - - -
Medical and pharmaceutical expenses 10.000 10.000 10.000 30.000
Training costs 5.000 5.000 5.000 15.000
Clothing costs 10.000 1.000 1.000 12.000
RVA badge fees 5.000 2.000 1.000 8.000

2.2. Fuel and lubricant

Aircraft fuel and lubricants - - - -
Various fuels and lubricants 3.000 3.000 3.000 9.000

2.3 Aircraft operation supplies 50.000 10.000 10.000 70.000

Operator/Aero supplies (TKT, MCO, LTA)

2.4. Industrial costs 20.000 20.000 20.000 60.000

Aircraft spare parts
Maintenance (Handling, etc...)
Aircraft spare parts
Maintenance

2.5. Operating fees 20.000 15.000 15.000 50.000

Miscellaneous aeronautical taxes - - - -

2.6. Insurance 20.000 10.000 10.000 40.000

Miscellaneous insurance - - - -

2.7. Catering See flight financing

Catering and catering supplies

2.8. Sales and promotion 10.000 8.000 4.000 22.000

Expenses/Reception and representation 5.000 5.000 3.000 13.000
Advertising 5.000 3.000 1.000 9.000

2.9. Overheads 38.600 29.300 26.300 942.000

Energy supply (water and electricity) 3.000 1.000 1.000 5.000
Building rental and fitting-out 10.000 5.000 3.000 18.000
Miscellaneous rentals - - - -
Postage and telecom 100 100 100 300
Subscription and documentation fees 500 200 200 900
Office supplies and printing 5.000 3.000 2.000 10.000
Fees - - - -
Customs fees 10.000 10.000 10.000 30.000
Miscellaneous management expenses - - - -
Mission expenses and transfers 10.000 10.000 10.000 30.000
Financial and bank charges - - - -
Accommodation expenses - - - -
Social costs (gifts to Pers.) - - - -
Freight costs - - - -

III 3. FORMALITIES TO BE COMPLETED 120.400 21.400 21.400 163.200

Administrative procedures 10.000 1.000 1.000 12.000
Integration IATA, SITA, AFRAA - - - -
Computer site 200 200 200 600
Opening of ports of call and performances 110.000 20.000 20.000 150.000
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Telecoms 200 200 200 600

IV 4. CASH REQUIREMENTS 100.000 100.000 100.000 300.000

V TOTALS 2.069.000 1.851.700 1.843.700 5.764.400

VI. Conclusion

The operation of five (5) Bombardiers in radial on the DR. Congo network is
profitable. However, the leasing conditions have yet to be negotiated.

At the end of the year, this operation will generate estimated passenger,
freight and excess baggage revenues of around 27,043,200 USD, with direct
operating expenses of 20,447,420 USD. The positive profit margin is 6,535,780
USD/year.

To achieve this, working capital of USD 1,334,000/month will have to be made

available for pre-financing flights, in order to meet the operating costs
involved in bringing these five bombers into service.

It is therefore recommended that these short-haul flights be positioned or at

least based both inland (Goma, Kisangani, Lubumbashi) and in Kinshasa, to
enable domestic flights to be combined with regional (axial) flights operated
by B737-800s or other types of aircraft.
These bombers will return to Kinshasa once a week for maintenance work.

The projected monthly operating budget is USD 2,069,000 for the first month,
USD 1,851,700 for the second and USD 1,843,700 for the third.

The opening of stopovers and related promotional activities must not only be
a matter of concern for the airline's General Manager, but must also be the
subject of a serious study to avoid any slippage or financial risk at the outset,
compromising the entire future.

The animators (station managers - sales staff) of these stopovers must be well
trained in the profession, with experience in sales and operations.