FINANCIAL (CASH FLOW)

In any type of business including airline business cash flow is critical factor that makes growth
business or breaks business. As critical factor, cash flow should not pose any negative threat to the
airline company. As it has stated, in company’s illustrations it will not bear any major obstacles
during the first year of operation and respectively following years, though company allowed for
deposit on aircraft leases. Aircraft lease it is charges against operational expenses, once airline
begins start flying to the destinations.

Investment, that spent by company, covered up modest regional standards of airline. In addition,
financial planning and business plan that has done by company is feasible and reliable in the
market. As, backup plan, financial plan of company would offer additional credit facilities or cash
reserves and equity investment.

It should be noted that, it is trend majority of company’s account payable comes from online sales,
travel agencies or by credit cards of customers. By giving great flexibility of cash, even it requires
these payment methods should be received at given time, however financial calculations would
indicate it is not major obstacle for the airlines financial management.
PRO FORMA CASH FLOW

YEAR 1 YEAR 2 YEAR 3

Cash Received

Cash from Operations

Cash Sales $26,995,644 $63, 816,466 $98, 945,258

SUBTOTAL CASH FROM $38, $90,769.081 $145,757,362
OPERATIONS 621,820

Additional cash received

Sales Tax, VAT, HST/GST Received 0 0 0

New Current Borrowing 0 0 0
New Other Liabilities (interest-free) 0 0 0
New Long-term Liabilities 0 0 0
Sales of Other Current Assets 0 0 0
Sales of Long-term Assets 0 0 0
New Investment Received 0 0 0
SUBTOTAL CASH RECEIVED $38, $90,769.081 $145,757,362
621,820

Expenditures
Expenditures from Operations
Cash Spending $6,140,062 $8,825,869 $10,508,015
Bill Payments $32,946,389 $76,015,084 $108,438,103
SUBTOTAL SPENT ON $39,086,451 $84,840,953 $118,946,118
OPERATIONS
(Continued)

YEAR 1 YEAR 2 YEAR 3

Additional cash spent
Sales Tax, VAT, HST/GST Paid Out 0 0 0
Principal Repayment of Current $190,100 $208,200 $208,200
Borrowing
Other Liabilities Principal 0 0 0
Repayment
Long-term Liabilities Principal 0 0 0
Repayment
Purchase Other Current Assets 0 0 0
Purchase Long-term Assets 0 0 0
Dividends 0 0 0
SUBTOTAL CASH SPENT $39,276,551 $85,049,153 $119,154,318

Net Cash Flow $ 5,347,269 $9,722,928 $29,606,044

Cash Balance $13,747,269 $21,470,197 $49,076,241