AIRCRAFT LEASE SECURITISATION: Annual Aircraft Appraisals

Under the terms of the amended and restated trust indenture dated as of May 8, 2007 (the “Trust Indenture”) governing the Class G-3 Floating Rate Asset Backed Notes issued by Aircraft Lease Securitisation Limited (“ALS” and, together with its subsidiaries “ALS Group”), ALS is required annually to commission an appraisal of the “base value” of the ALS Group aircraft portfolio from three independent aircraft value appraisers.

ALS has obtained desktop appraisals of the “base value” of each of ALS Group’s 50 aircraft at September 30, 2012 from three independent appraisers: Ascend (formerly Airclaims) (“Ascend”), Aircraft Information Services, Inc. (“AISI”) and BK Associates, Inc. (“BK”). On the basis of these three appraisals (Ascend: $933 million; AISI: $946 million; BK: $1,080 million), the average appraised base value of ALS Group’s portfolio of aircraft as of September 30, 2012 was approximately $986 million (the “2012 Appraised Value”). The average appraised base value for the 55 aircraft and 2 engines in the portfolio at September 30, 2011 was $1,115 million. Following the disposal of 5 aircraft and 2 engines by way of sale in 2012, the comparable value at September 30, 2011 for the 50 aircraft currently in the portfolio was $1,070 million. The decline in the average appraised value of the portfolio of 50 aircraft at September 30, 2012 compared with the average appraised value of such aircraft at September 30, 2011 of $84 million is approximately $47 million greater than the decline in value assumed by the principal payment tables included in the Trust Indenture.
The appraisals have no impact on the distribution of cash as determined by the Trust Indenture as ALS now has only one class of senior notes outstanding.

Further information regarding the appraisals
The appraisers ascertained the “base value” of each aircraft on the basis of an open, unrestricted, stable market environment as of September 30, 2012 with a reasonable balance of supply and demand and other factors common for like appraisals. The 2012 Appraised Value does not reflect the values of leases, maintenance reserves, security deposits or other collateral, if any, related to a particular aircraft. An appraisal is only an estimate of value and there can be no assurance that proceeds received upon any sale of an aircraft would approximate the base value of that aircraft.