2. Capitalization & Formation
Years 1 - 4
Year 1
* Commitment of $10 Billion (USD), and 10 Years:
Option #1: $3 Billion per Year for Years 1, 2 & 3,
then $1 Billion Year 4
Option #2: $2.5 Billion per Year, over Years 1 - 4
Option #3: $2 Billion per Year, over Years 1 - 5
* Exclusive Two Year Agreement w/ BOEING & BOEING
Capital For New 737's
Year 3
* Non-Exclusive Agreement w/ AIRBUS & "AIRBUS Capital"
For New A-320's
Year 4
* Introduce Major Insurance Companies [and Pension Funds]
as Equity Investors & Buyers of Inventory
and/or Depreciation,
Optional: Securitize Portfolio, during Top of Cycle,
for Sale on Wall Street
and/or Lloyd's of London
3. Mitigation of Risk
* Individual Airline Risk:
Hedge using Options against Airline Shares
* Industry Economic Risk:
Hedge using Options against Industry ETFs
* Industry Fuel Price Risk:
Hedge using Options against Fuel Futures Contracts
* Interest Rate Risk:
Hedge using Options against Pertinent Interest Rate
Futures Contract
* Debt Risk:
This is the Ultimate Risk,
Especially in an environment of High Debt
around the World
Option #1:
Zero Debt, for First $10 Billion,
Supplemented with a Line of Credit
to Smooth Out Purchasing Power
during Years of Capitalization;
Maximum LTV of 20 to 40%
Option #2:
Medium Debt, for First $10 Billion,
Supplemented with a Line of Credit;
Maximum LTV of 40 to 60%
* “Buy Low & Sell High” Risk:
Timing the Low, and the High, of the Aircraft Market,
at least within 20% of the Two Extremes
4. Expansion
Years 5 - 10
Year 5
* Introduce Sovereign Wealth Funds (SWF)
as Portfolio Clients & Buyers of Inventory
Reference: http://www.swfinstitute.org/fund/qatar.php
Year 6
* Introduce Hedge Funds
as Portfolio Clients & Buyers of Inventory
Year 7
* Introduce Mutual Funds
as Portfolio Clients & Buyers of Inventory
5. Growth & [Optional] Recovery
of Capital + Profits
Years 11 - 15
Year 11 - 15
* Optional: QIA Initiates Recovery of Capital & Profits,
along the same Schedule used for Capitalization Process
[Optional]
IPO & Harvest
Years 16 to 19
Year 16 - 19
* Initiate the IPO Process [Optional]
Year 20
* Nader Retires [Buy Out]
6. PROJECTIONS
Growth
Years 1 Through 20:
9%, 12%, 15%, 20% Return
For Each 5 Year Increment
Year 1
$2 Billion, Capitalization Option # 3
Year 5
$16 Billion (16,123,917,039.60) + $3 Billion/Yr.
Year 10
$49.5 Billion (49,543,034,060.80) + $5 Billion/Yr.
Year 15
$138.3 Billion (138,330,872,968.75) +8 Billion/Yr.
Year 20
$415.5 Billion (415,574,016,000.00) + 10 Billion/Yr.
Maturity
Years 21 Through 60
25% + Return
For Each 5 Year Increment
Year 25 $1,370.5 Billion (1,370,593,261,718.75) + 10 Billion/Yr.
Year 30 $4,285.0 Billion (4,285,021,972,656.25) + 10 Billion/Yr.
Year 35 $13,179.3 Billion (13,179,370,117,187.50) + 10 Billion/Yr.
Year 40 $40,322.6 Billion (40,322,619,628,906.25) + 10 Billion/Yr.
Year 45 $123,157.3 Billion (123,157,397,460,937.50) + 10 Billion/Yr.
Year 50 $375,948.8 Billion (375,948,840,332,031.25) + 10 Billion/Yr.
Year 55 $1,147,275.3 Billion (1,147,407,275,390,625.00) + 10 Billion/Yr.
Year 60 $3,501,711.4 Billion (3,501,711,474,609,374.50) + 10 Billion/Yr.
![Capitalization & Formation
Years 1 - 4
Year 1
* Commitment of $10 Billion (USD), and 10 Years:
Option #1: $3 Billion per Year for Years 1, 2 & 3,
then $1 Billion Year 4
Option #2: $2.5 Billion per Year, over Years 1 - 4
Option #3: $2 Billion per Year, over Years 1 - 5
* Exclusive Two Year Agreement w/ BOEING & BOEING
Capital For New 737's
Year 3
* Non-Exclusive Agreement w/ AIRBUS & "AIRBUS Capital"
For New A-320's
Year 4
* Introduce Major Insurance Companies [and Pension Funds]
as Equity Investors & Buyers of Inventory
and/or Depreciation,
Optional: Securitize Portfolio, during Top of Cycle,
for Sale on Wall Street
and/or Lloyd's of London](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)