Questionnaire

Basic Questions A good Section 10 should include crisp, concise, well-written answers to these questions:

How would you briefly and concisely describe your product or service?

AirPower is designed to create the first ever “On Demand National Air Charter System”.

If given the opportunity to describe your product or service in greater detail, what would you add to your brief description?

This system would replace the current charter system which is ineffective, costly and very limited in its ability to efficiently operate their aircraft.

What problem and/or opportunity does your product or service solve and/or develop?

This revolutionary system will change the entire business aviation industry in the following ways: 1) Make owning your own aircraft superfluous. 2) Completely eliminate the need for fractional operations. 3) Take over and own over 90% of the current charter industry. 4) Tap into the high-end airliner market. That will happen when airline users understand that corporate aircraft can use over 5,500 airports while the airlines are limited to 500, meaning we can take users exactly, or within a few minutes of where they need to be.

How does your product or service add value to your customer?

There are two customers. 1) A potential aircraft owner. In that case he would own an aircraft for 15% refundable deposit and get 50 hours of free flight time annually. 2) Charter users would get much cheaper charter rates than are currently available.

What are the key benefits to your customer of your product or service?

User 1 gets to own an aircraft and to fly for free for 50 hours a year with no other costs, as we can and will charter the aircraft out when they are not using them. To user 2 they would get to be picked up where they want to be picked and dropped off where they want to be dropped off on their schedule which any lay-over fees or overnight expenses. They will be picked up and taken back where they want to go on their schedule, not an airline’s schedule.

What are the principal features of your product or service?

User 1 gets to own and fly in his aircraft for free. User 2 gets effective cheaper use without any conditions or costs other than the cost of the charter, which will be lower than anyone else can because we are going to be flying 500% more than a current charter company can.

What specifically do these features do that adds value to your customer?

1) Customer does not need to own an aircraft. 2) Customer does not have to fly on an airline schedule to and from where the airlines are located. In addition, there is no TSA, no need to get to the airport 2 hours ahead of time and no hassles. They can conduct business meetings en route.

How would you briefly and concisely describe the development stage of your product or service?

Customers are readily available to buy the aircraft under these conditions: 1) 15% refundable payment. 2) a 15-year loan with a 4-year balloon. 3) We will flip the owners every four years into a different aircraft to maintain their tax benefits.

How would you briefly and concisely describe the design and engineering activities necessary to complete your “minimum viable product”, the initial commercial version of your product or service?

We will buy a FAR Part 135 operating certificate for under $300k and start buying and operating aircraft.

If given the opportunity to describe these research and development activities in greater detail, what would you add to your brief description?

As we will be using three cabin sizes to fit every need, we will need to put at least three aircraft onto the operating certification. That would take around 120 days and $500k in operating expenses to satisfy the FAA.

How would you briefly and concisely describe the design and engineering activities necessary to continue the immediate further development of the initial commercial version of your product or service?

We already have a software company ready to develop the AI software that I would like to have to make this system as efficient as possible.

If given the opportunity to describe these research and development activities in greater detail, what would you add to your brief description?

I have already talked to the software company, and I know from my own experience that corporations always schedule 48 hours in advance or more. Explaining that lead time, the software company can and will develop software (for an equity position) that they say would actually create a real Uber functioning system.

If you have additional new products in development, how would you briefly and concisely describe the development stage of these products or services?

We are currently operating Executive AirPower Inc. www.airpwr.com . This system will offer aircraft owners the opportunity to save $150,000 to $400,000 annually on their aircraft operations. The idea here is take aircraft owners that are using charter companies to try to earn extra income from the charter system. This would eliminate them from the charter fleets and create more charter business for us.

If given the opportunity to describe these research and development activities in greater detail, what would you add to your brief description?

Nothing at this point. Unlike most people in the aircraft industry, I am actually an ops person which means I know how to operate aircraft and how to make money from them. That is a detail you cannot put a price or value on.

If you envision additional new commercially-viable products, how would you briefly and concisely describe the design and engineering activities necessary to create these products and/or services?

More and more aircraft… There are currently 4.5 million hours of charter being flown in the US, and I want as much of that as I can get. That means a lot of aircraft ultimately need to be moved into this program.

How would you briefly and concisely describe the state of your intellectual property?
(Do you have proprietary technology or trade secrets? Do you have trademarks applied for and/or issued? Do you have patents applied for and/or issued? Are you developing technologies for which you may apply for patents in the future?)

I have everything I need in my head. Aviation is a very poorly run industry. Most of the people that run aviation are not ops people, so they have no idea how the system works. Most pilots just want to fly and do not care about anything else like making money from flying. I have all that knowledge and I have others like me who I can and will bring in. Trademarks are also available.

How would you briefly and concisely describe the regulatory stage of your product or service?
(If applicable, do you have the necessary approvals and licenses? Have you filed the applications?)

We would acquire the necessary FAA certificates by buying one. Just today I received an offer from a dormant charter operation looking to sell with all the necessary certificates in place. All we would need to do is to add three new types to their “type certificates”.

How would you briefly and concisely describe the regulatory environment for your product or service?

FAA: I have created and operated three charter companies. One was for the Federal Reserve where we moved $840 billion a week with 55 aircraft 72,000 miles per night 6 nights a week. I left to fly for Mercedes Benz in 1976. That company went on to be known as Airborne and today is known as DHL.

If given the opportunity to describe the regulatory environment for your product or service in greater detail, what would you add to your brief description?

I totally understand the FAA and work great with them. I have never had any issues with them…ever!

How would you briefly and concisely describe how you intend to manufacture or deliver your product or service?

No manufacturing is involved. Operations are pure charter and would be scheduled through AI with less than 10% empty flights. Customers schedule a trip, we fly a trip through the AI, and we use the AI to get to the next trip, etc.

If given the opportunity to describe your manufacturing (or service delivery process) in greater detail, what would you add to your brief description?

It changes the entire business aviation industry, completely and forever, as mentioned above!

How would you briefly and concisely describe your strategy with respect to quality control?

We will operate within and with the FAA oversight. No exceptions ever!

If given the opportunity to describe your strategy with respect to quality control in greater detail, what would you add to your brief description?

Stay out of the trees!

How would you briefly and concisely describe the competitive advantage(s) of your company?

Pricing, plain and simple, in addition to being able to go exactly where the customers want to go, no layover charges, no overnight charges, and no TSA. Just schedule, show up and go!

If given the opportunity to describe the competitive advantage(s) of your company in greater detail, what would you add to your brief description?

This system will disrupt all aspects of the current corporate aviation industry. These changes have been needed for 60 years and no one every could do it. Apparently, no one ever thought of equating the airline system with corporate jets.

How would you briefly and concisely describe the competitive landscape for your product or service?

Absolutely perfect and absolutely necessary!

If given the opportunity to describe the competitive landscape of your company in greater detail, what would you add to your brief description?

Wide open and ready to take-off!

Who/What are your principal competitors?

No one else has anything like this system. What is out there are charter operators that use a system called piggyback, which you will see on my website covers that in an article called “Piggy Back Charter, the three-card Monte of aviation”. Currently, we are operating Executive AirPower with the real purpose of offering piggyback charter clients an alternative without the expenses of piggyback or the liability and it is starting to work.

What are their principal strengths?

None.

What are their principal weaknesses?

Piggyback charter is the charter operators using other peoples’ aircraft with the story that it will save them money. That, not only cannot happen, but will never happen! It would add hours to their aircraft and increase their liability.

How would you briefly and concisely describe how you intend to compete with them?

As explained above.

If given the opportunity to describe your strategy for competing in the marketplace in greater detail, what would you add to your brief description?

Cheaper, safer, and more productive from the clients point from our point of view. It will also be a huge money maker. Charter aircraft do not fly enough hours to be profitable. In our system we are increasing usage and revenue by 500%.

How would you briefly and concisely describe the domestic market for your product or service?

Last year there were over 4.5 million hours of charter flown in the USA (source the FAA).

If given the opportunity to describe the domestic market for your product or service in greater detail, what would you add to your brief description?

We would totally change it completely and forever!

How would you briefly and concisely describe your “low hanging fruit”, the domestic market segment for your product or service which you view as the most likely to generate quick sales and commercial traction?

The charter users are an important domestic market, and the aircraft owners constitute an entirely separate market segment.

If given the opportunity to describe this market segment in greater detail, what would you add to your brief description?

The entire industry is broken. This program fixes it.

How would you briefly and concisely describe your “mother lode”, the domestic market segment for your product or service which you view as the most likely to generate the magnitude of scalable commercial traction sufficient to support a liquidity event?

Every 150 set of aircraft (50 large-cabin, 50 medium-cabin, 50 small-cabin) will produce revenue of $1,080,000,000 with a profit of $400,000,000. That is for every set of 150, and there are 30,000 aircraft out there that the fit our needs.

If given the opportunity to describe this market segment in greater detail, what would you add to your brief description?

Everyone that flies in charter, corporate and high-end airlines could use this system.

How would you briefly and concisely describe your program to reach your “low hanging fruit” market segment?

Marketing! Use existing charter brokers with our pricing standards, moving everyone else into our system.

If given the opportunity to describe your marketing strategy to this “low hanging fruit” market segment in greater detail, what would you add to your brief description?

Web, WSJ, Forbes, industry magazines, videos and word-of-mouth.

How would you briefly and concisely describe your program to reach your “mother lode” market segment?

Make it known to the end users via the marketing mentioned above.

If given the opportunity to describe your marketing strategy to this “mother lode” market segment in greater detail, what would you add to your brief description?

Nothing! Build it and they will come.

How would you briefly and concisely describe your brand or the brand you intend to establish in the marketplace?

Compared to standard charter rates, this is the least expensive, most productive way to fly!

If given the opportunity to describe your branding strategy in greater detail, what would you add to your brief description?

For the aircraft owner, this is the least expensive, most productive way to fly!

What are your principal business objectives for your first 90 days post-closing (your Series A round)?

Start getting qualified aircraft buyers. Start buying aircraft and hooking up with charter brokers.