1
EXHIBIT 99.5
[AIS.LOGO]
06 March 1998
Ms. Siobhan Connolly
Aircraft Lease Portfolio Securitization
ALPS 94-1
GPA Group plc
GPA House
Shannon, Co Clare, Ireland
Subject: Adjusted Base Market, Adjusted Current Market and Zero Time Base
Value Opinion as of 01 March 1998 for the ALPS 94-1 fleet
AISI File number: A8S016BVO
Reference: (a) GPA Courier Letter, 25 February 1998
Dear Ms Connolly:
In response to your request, Aircraft Information Services, Inc. (AISI) is
pleased to offer our opinion to GPA Group plc of the 01 March 1998 adjusted
base market, adjusted current market and zero time base values of the ALPS 94-1
fleet as identified in Table I (the 'Aircraft').
1. METHODOLOGY AND DEFINITIONS
The historical standard term of reference for commercial aircraft value has
been 'half-life fair market value' of an 'average' aircraft. However, 'fair
market value' could mean a fair value in the given market or a value in a
hypothetical 'fair' or balanced market, and the two definitions are not
equivalent. Recently, the term 'base value' has been created to describe the
theoretical balanced market condition and to avoid the potentially misleading
term 'fair market value' which has now become synonymous with the term 'current
market value' or a 'fair' value in the actual current market. AISI value
definitions are consistent with those of the International Society of Transport
Aircraft Trading (ISTAT) of 01 January 1994; AISI is a member of that
organization and employs an ISTAT Certified Senior Aircraft Appraiser.
AISI defines a 'base value' as that of a transaction between equally willing and
informed buyer and seller, neither under compulsion to buy or sell, for a single
unit cash transaction with no hidden value or liability, and with supply and
demand of the sale item roughly in balance. Base values are typically given for
aircraft in 'new' condition, 'average half-life' condition, or in a specifically
described condition unique to a single aircraft at a specific time. An 'average'
aircraft is an operable airworthy aircraft in average physical condition and
with average accumulated flight hours and cycles, with clear title and standard
unrestricted certificate of airworthiness, and registered in an authority which
does not represent a penalty to aircraft
HEADQUARTERS, 26072 MERIT CIRCLE, SUITE 123, LAGUNA HILLS, CA 92653
TEL: 714-582-8888 FAX: 714-582-8887 E-MAIL: AISINEWS@AOL.COM
2
[logo]
06 March 1998
AISI File No. A8S016BVO
Page - 2 -
value or liquidity, with no damage history and with inventory configuration and
level of modification which is normal for its intended use and age. AISI assumes
average condition unless otherwise specified in this report. 'Half-life'
condition assumes that every component or maintenance service which has a
prescribed interval that determines its service life, overhaul interval or
interval between maintenance services, is at a condition which is one-half of
the total interval. It should be noted that AISI and ISTAT value definitions
apply to a transaction involving a single aircraft, and that transactions
involving more than one aircraft are often executed at considerable and highly
variable discounts to a single aircraft price, for a variety of reasons relating
to an individual buyer or seller.
AISI defines a 'current market value' or 'fair market value' as that value which
reflects the real market conditions, whether at, above or below the base value
conditions. Assumption of a single unit sale and definitions of aircraft
condition, buyer/seller qualifications and type of transaction remain unchanged
from that of base value. Current market value takes into consideration the
status of the economy in which the aircraft is used, the status of supply and
demand for the particular aircraft type, the value of recent transactions and
the opinions of informed buyers and sellers. Current market value assumes that
there is no short term time constraint to buy or sell.
AISI encourages the use of base values to consider historical trends, to
establish a consistent baseline for long term value comparisons and future value
considerations, or to consider how actual market values vary from theoretical
base values. Base values are less volatile than current market values and tend
to diminish regularly with time. Base values are normally inappropriate to
determine near term values. AISI encourages the use of current market values to
consider the probable near term value of an aircraft.
AISI determines an 'adjusted market value' by determining the value of known
deviations from half-life condition, which may be better or worse than half-life
condition, and to account for better or worse than average physical condition,
and the inclusion of additional equipment, or absence of standard equipment. Our
opinion of the adjusted base and current market value of the Aircraft is derived
from information and specifications supplied by GPA Group plc. No physical
inspection of the Aircraft or their essential records was made by AISI for the
purposes of this report.
2. VALUATION
Adjustments from half life have been applied based on the current maintenance
status of the Aircraft as indicated in the Aircraft General Specification sheets
supplied to AISI and in accordance with standard AISI methods. Adjustments are
calculated only where there is sufficient information to do so, or where
reasonable assumptions can be made.
3
[LOGO]
06 March 1998
AISI File No. A8S016BVO
Page -3-
With regard to airframe and gear maintenance, if no time between check/overhaul
(TBO) or time since check/overhaul (TSO) information was provided, and if the
total hours/cycles of the airframe do not exceed the TBO limits then the total
hours/cycles of the airframe were assumed to be the TSO. This was typical of
newer aircraft. If no information was provided and if the TSO could not be
calculated, then half life was assumed.
With regard to the engines, due to the lack of information provided, all engines
are considered to be in half life condition.
All hours and cycle information provided for airframe, C Check, D Check, gear
and engines have been projected from the Aircraft General Specification sheet
dates to 01 March 1998 based on a daily utilization factor calculated for each
aircraft.
It is our considered opinion that the adjusted base market, adjusted current
market and zero time base market values of the Aircraft as of 01 March 1998 are
as follows in Table 1 subject to the assumptions, definitions, and disclaimers
herein.
Unless otherwise agreed by Aircraft Information Services, Inc. (AISI) in
writing, this report shall be for the sole use of the client/addressee. This
report is offered as a fair and unbiased assessment of the subject aircraft or
equipment. AISI has no past, present, or anticipated future interest in the
subject aircraft or equipment however, it should be noted that principals of
AISI have interests in a U.S. air carrier not associated with the subject
appraisal aircraft or equipment. The conclusions and opinions expressed in this
report are based on published information, information provided by others,
reasonable interpretations and calculations thereof and are given in good faith.
Such conclusions and opinions are judgments that reflect conditions and values
which are current at the time of this report. The values and conditions reported
upon are subject to any subsequent change. AISI shall not be liable to any party
for damages arising out of reliance or alleged reliance on this report, or for
any parties action or failure to act as a result of reliance or alleged reliance
on this report.
Sincerely,
AIRCRAFT INFORMATION SERVICES, INC.
[SIGNATURE]
Fred E. Bearden
President
FEB/JMC/jm
4
Table 1 -- AISI File A8SO16BVO -- as of 01 March 1998
AIRCRAFT PORTFOLIO -- ALPS 94-1
01 March 1998
Adjusted O1 March 1998 01 March 1998
Current Adjusted Zero Time
Serial Date of MTOW Market Value Base Value Base Value
No Lessee Aircraft Number Manufacture Engine (Lbs.) Million US$ Million US$ Million US$
1 Off Lease A300B4-200 240 May-83 CF6-50C2 363,760 $12.60 $12.60 $15.38
2 Airtours A320-200 299 Apr-92 CFM56-5A3 169,753 $31.59 $31.74 $34.31
3 Airtours A320-200 362 Nov-92 V2500-A1 169,753 $31.06 $31.21 $33.71
4 Monarch
Airlines A320-200 391 Feb-93 CFM56-5A3 169,753 $33.51 $33.84 $36.17
5 Canadian A320-200 403 Dec-93 CFM56-5A1 166,466 $32.55 $32.88 $35.44
6 Portugalia F100 11258 Dec-89 TAY650-15 98,000 $12.27 $14.00 $15.73
7 Portugalia F100 11342 Aug-91 TAY650-15 98,000 $14.05 $15.78 $17.78
8 TAM F100 11351 Sep-91 TAY650-15 98,000 $14.63 $16.36 $17.78
9 Philippine
Airlines B737-300 24465 Aug-89 CFM56-3B1 124,500 $23.62 $22.58 $24.46
10 Philippine
Airlines B737-300 24677 Mar-90 CFM56-3B1 124,500 $23.77 $22.64 $25.25
11 Aer Lingus B737-400 24685 May-90 CFM56-3C1 150,000 $27.37 $26.59 $29.06
12 Turk Hava
Yollari B737-400 24904 Feb-91 CFM56-3C1 150,000 $27.88 $27.09 $29.91
13 Sun Express B737-300 24908 Mar-91 CFM56-3C1 138,500 $25.54 $24.33 $27.01
14 Malev B737-300 24909 Apr-91 CFM56-3C1 135,000 $25.32 $24.11 $26.87
15 Lan Chile
Airlines B767-300ER 24947 Mar-91 PW4060 407,000 $61.40 $67.20 $71.19
16 Spanair B767-300ER 24999 Feb-91 PW4060 407,000 $61.16 $66.96 $71.19
17 Asiana
Airlines B737-400 25764 Jul-92 CFM56-3C1 138,000 $28.89 $28.09 $30.40
18 Asiana
Airlines B737-400 25765 Jul-92 CFM56-3C1 138,000 $28.66 $27.86 $30.40
19 Lan Chile
Airlines B767-300ER 25864 Apr-92 CF6-BDC2BF6 407,000 $65.43 $71.24 $74.75
20 Air Pacific B737-500 26067 Jun-92 CFM56-3C1 133,500 $23.01 $21.51 $24.17
21 Yunnan B737-300 26068 Jun-92 CFM56-3C1 135,000 $26.37 $25.07 $27.76
22 Avianca B757-200ER 26152 Aug-92 RB211-535E4 230,000 $43.03 $25.41 $48.18
23 China
Southwest B757-200ER 26153 Aug-92 RB211-535EA 240,000 $43.78 $46.16 $48.78
24 Air 2000 B757-200ER 26158 Feb-93 RB211-535EA 250,000 $45.65 $48.13 $51.28
25 Spanair MD-83 49627 Apr-89 JT8D-219 160,000 $20.25 $23.02 $25.52
26 Spanair MD-83 49790 Oct-89 JT8D-219 160,000 $20.26 $23.03 $25.52
27 Far Eastern
Air Tran MD-83 49952 Dec-91 JT8D-219 160,000 $21.58 $24.46 $27.23
------- ------- -------
Totals: $825.23 $853.89 $925.23
======= ======= =======
5
[AIS.LOGO]
GPA GROUP PLC
GPA HOUSE
SHANNON CO CLARE
IRELAND
BASE AND CURRENT MARKET VALUE OPINION
9 AIRCRAFT GPA FLEET
AS OF 01 MARCH 1998
AISI FILE NO.; A8S017BVO
06 MARCH 1998
HEADQUARTERS, 26072 MERIT CIRCLE, SUITE 123, LAGUNA HILLS, CA 92653
TEL: 714-582-8886 FAX: 714-582-8887 E-MAIL: AISINEWS@AOL.COM
6
[AIS.LOGO]
06 March 1998
GPA Group plc
GPA House
Shannon Co Clare
Ireland
Subject: Half Life and Adjusted Base and Current Market Value Opinion - 9
Aircraft.
AISI File number: A8S017BVO
Dear Sirs:
In response to your request, Aircraft Information Services, Inc. (AISI) is
pleased to offer our opinion to GPA Group plc of the half life and adjusted base
and current market values of the Fleet of 9 Aircraft as identified in Table 1
(the 'Aircraft').
1. METHODOLOGY AND DEFINITIONS
The historical standard term of reference for commercial aircraft value has
been 'half-life fair market value' of an 'average' aircraft. However, 'fair
market value' could mean a fair value in the given market or a value in a
hypothetical 'fair' or balanced market, and the two definitions are not
equivalent. Recently, the term 'base value' has been created to describe the
theoretical balanced market condition and to avoid the potentially misleading
term 'fair market value' which has now become synonymous with the term 'current
market value' or a 'fair' value in the actual current market. AISI value
definitions are consistent with those of the International Society of Transport
Aircraft Trading (ISTAT) of 01 January 1994; AISI is a member of that
organization and employs an ISTAT Certified Senior Aircraft Appraiser.
AISI defines a 'base value' as that of a transaction between equally willing and
informed buyer and seller, neither under compulsion to buy or sell, for a single
unit cash transaction with no hidden value or liability, and with supply and
demand of the sale item roughly in balance. Base values are typically given for
aircraft in 'new' condition, 'average half-life' condition, or in a specifically
described condition unique to a single aircraft at a specific time. An 'average'
aircraft is an operable airworthy aircraft in average physical condition and
with average accumulated flight hours and cycles, with clear title and standard
unrestricted certificate of airworthiness, and registered in an authority which
does not represent a penalty to aircraft value or liquidity, with no damage
history and with inventory configuration and level of modification which is
normal for its intended use and age. AISI assumes average condition unless
otherwise specified in this report. 'Half-life' condition assumes that every
component or maintenance service which has a prescribed interval that determines
its service life, overhaul interval or interval between maintenance services, is
at a condition which is one-half of the
HEADQUARTERS, 26072 MERIT CIRCLE, SUITE 123, LAGUNA HILLS, CA 92653
TEL: 714-582-8886 FAX: 714-582-8887 E-MAIL: AISINEWS@AOL.COM
7
[LOGO]
06 March 1998
AISI File No. A8S017BVO
Page - 2 -
total interval. It should be noted that AISI and ISTAT value definitions
apply to a transaction involving a single aircraft, and that transactions
involving more than one aircraft are often executed at considerable and
highly variable discounts to a single aircraft price, for a variety of
reasons relating to an individual buyer or seller.
AISI defines a 'current market value' or 'fair market value' as that value
which reflects the real market conditions, whether at, above or below the
base value conditions. Assumption of a single unit sale and definitions of
aircraft condition, buyer/seller qualifications and type of transaction
remain unchanged from that of base value. Current market value takes into
consideration the status of the economy in which the aircraft is used, the
status of supply and demand for the particular aircraft type, the value of
recent transactions and the opinions of informed buyers and sellers. Current
market value assumes that there is no short term time constraint to buy or
sell.
AISI encourages the use of base values to consider historical trends, to
establish a consistent baseline for long term value comparisons and future
value considerations, or to consider how actual market values vary from
theoretical base values. Base values are less volatile than current market
values and tend to diminish regularly with time. Base values are normally
inappropriate to determine near term values. AISI encourages the use of
current market values to consider the probable near term value of an
aircraft.
AISI determines an 'adjusted market value' by determining the value of known
deviations from half-life condition, which may be better or worse than
half-life condition, and to account for better or worse than average
physical condition, and the inclusion of additional equipment, or absence of
standard equipment. Our opinion of the adjusted base values of the Aircraft
are derived from information and specifications supplied by GPA Group plc.
No physical inspection of the Aircraft or their essential records was made
by AISI for the purposes of this report.
2. VALUATION
Adjustments from half life have been applied based on the current
maintenance status of the Aircraft as indicated in the Aircraft General
Specification sheets supplied to AISI and in accordance with standard AISI
methods. Adjustments are calculated only where there is sufficient
information to do so, or where reasonable assumptions can be made.
With regard to airframe and gear maintenance, if no time between
check/overhaul (TBO) or time since check/overhaul (TSO) information was
provided, and if the total hours/cycles of the airframe do not exceed the
TBO limits then the total hours/cycles of the airframe were assumed to be
the TSO. This was typical of newer aircraft. If no information was provided
and if the TSO could not be calculated, then half life was assumed.
8
[LOGO]
06 March, 1998
AISI File No. A8S017BVO
Page - 3 -
With regard to the engines, due to the lack of information provided, all
engines are considered to be in half life condition.
All hours and cycle information provided for airframe, C Check, D Check, gear
and engines have been projected from the Aircraft General Specification sheet
dates to 01 March 1998 based on a daily utilization factor calculated for each
aircraft.
It is our considered opinion that the half life and adjusted base and
current market values of the Aircraft are as follows in Table I subject to
the assumptions, definitions, and disclaimers herein.
Unless otherwise agreed by Aircraft Information Services, Inc. (AISI) in
writing, this report shall be for the sole use of the client/addressee. This
report is offered as a fair and unbiased assessment of the subject aircraft or
equipment. AISI has no past, present, or anticipated future interest in the
subject aircraft or equipment. The conclusions and opinions expressed in this
report are based on published information, information provided by others,
reasonable interpretations and calculations thereof and are given in good
faith. Such conclusions and opinions are judgements that reflect conditions and
values which are current at the time of this report. The values and conditions
reported upon are subject to any subsequent change. AISI shall not be liable to
any party for damages arising out of reliance or alleged reliance on this
report, or for any parties action or failure to act as a result or reliance or
alleged reliance on this report.
Sincerely,
AIRCRAFT INFORMATION SERVICES, INC.
[LOGO]
Fred E. Bearden
President
FB/JDM/jm
9
[LOGO]
Table I - AISI File A8SO17BV0
as of 01 March 1998
FLEET VALUATION - GPA FLEET
- ------------------------------------------------------------------------------------------------------------------------------------
Half Life Half Life Adjusted Adjusted
Date of Base Value Current Market Value Base Value Current Market
Serial Manufacture 1998 1998 1998 1998
No Aircraft Number (MM/DD/YY) MTOW Engine US Dollars US Dollars US Dollars US Dollars
- ------------------------------------------------------------------------------------------------------------------------------------
1 A320-200 85 02/22/90 162,000 CFM56-5A1 28,230,000 28,410,000 28,400,000 28,580,000
- ------------------------------------------------------------------------------------------------------------------------------------
2 B737-400 23868 10/11/88 142,500 CFM56-3C1 24,760,000 25,410,000 25,080,000 25,730,000
- ------------------------------------------------------------------------------------------------------------------------------------
3 B737-400 23979 01/01/89 142,500 CFM56-3C1 25,560,000 26,270,000 25,930,000 26,640,000
- ------------------------------------------------------------------------------------------------------------------------------------
4 B737-400 26066 06/19/92 150,000 CFM56-3C1 28,460,000 29,260,000 28,180,000 28,980,000
- ------------------------------------------------------------------------------------------------------------------------------------
5 B747-200B 22496 10/01/81 800,000 IT9D-7Q 30,980,000 28,000,000 30,520,000 27,540,000
- ------------------------------------------------------------------------------------------------------------------------------------
6 DC8-71F 46040 05/14/69 328,000 CFM56-2C1 15,890,000 15,890,000 15,890,000 15,890,000
- ------------------------------------------------------------------------------------------------------------------------------------
7 DC8-71F 46064 04/01/69 328,000 CFM56-2C1 15,890,000 15,890,000 15,950,000 15,950,000
- ------------------------------------------------------------------------------------------------------------------------------------
8 F100 11341 08/01/91 98,000 TAY650-15 15,250,000 14,450,000 15,480,000 14,680,000
- ------------------------------------------------------------------------------------------------------------------------------------
9 F100 11350 04/01/92 98,000 TAY650-15 16,100,000 15,600,000 16,300,000 15,800,000
- ------------------------------------------------------------------------------------------------------------------------------------
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Totals: $201,120,000 $199,180,000 $201,730,000 $199,790,000
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