Key Air Completes Recapitalization Transaction

Existing Equity Investors Acquire Key Air Debt; Transaction Ensures Key Air’s Long-Term Financial Stability and Facilitates Growth Strategy

The principle equity investors (led by Rizvi Traverse Management) of Key Air, a leading national provider of FBO services and best-in-class aircraft management and worldwide executive charter services, has recently acquired all of Key Air’s debt in a recapitalization transaction. The transaction will enable Key Air to successfully restructure its balance sheet with no disruption to the business and will provide additional working capital to enable Key Air to execute on its growth strategy in 2010 and beyond. Key Air has implemented several recent organizational initiatives, including the hiring of key industry personnel, implementation of specialized customer service programs and expansion of its facilities and support centers nationwide.

“This transaction demonstrates the importance of having a strong financial sponsor,” says Brad D. Kost, President and CEO of Key Air. “By restructuring Key Air’s balance sheet, the Company is financially well-positioned to continue investing in building a strong national presence and infrastructure so that we can continue our growth plan into 2010 and beyond.”

Key Air experienced significant growth in 2009 and added 12 managed aircraft to its certificate, bringing the total number of aircraft under management to 28. Key Air saw a sizeable increase in aircraft based at Key Air NY Metro (OXC) in Oxford, CT and also in other national locations. Several Dassualt Falcon aircraft were added to both its Key Air NY Metro (OXC) and Key Air Twin Cities (ANE) locations and are currently available for charter. Key Air also added hangar facilities and client support at Van Nuys Airport in Van Nuys, California to provide its West Coast customers access to aircraft management and charter services.

“We have streamlined our internal processes and added key personnel to enhance our client service and aircraft on-boarding processes, now adding aircraft to our fleet in an even more efficient manner,” Mr. Kost continues. “We also now have self-conformity authority from the FAA, ensuring that we can get our new clients’ Part 135 aircraft flying and generating revenue quickly.”

Key Air also experienced considerable growth in their FBO operations in 2009, adding a record number of hangar and office tenants in each of its three FBO locations: Key Air NY Metro (OXC) in Oxford, CT; Key Air Twin Cities (ANE) just outside Minneapolis-St. Paul, MN; and Key Air South Florida (FPR) in Ft. Pierce, FL. “We have invested significant dollars in further developing our U.S. infrastructure and now have our domestic hub system in place to better service our clients,” Kost adds.