Welcome to Blade Engine Finance Reports

Blade is a special-purpose Cayman Islands limited liability exempted company managed and controlled through its board of directors in Ireland. Blade acquired an initial portfolio of 50 aircraft engines (the “Engines”) from General Electric Capital Corporation, a Delaware corporation (“GECC”), and certain of its affiliates. On the Closing Date, 12 September 2006, Blade agreed to purchase from GECC and such affiliates (collectively, the “Sellers”) the beneficial interests in 50 Utah common law trusts (the “Engine Trusts”), each of which owned a single Engine.

Initial Portfolio

All of the Engines in the initial portfolio and any other Engines acquired directly or indirectly by Blade are Stage 3 aircraft jet engines. The initial appraised value of the Engines in the initial portfolio (the “Initial Appraised Value”) was $351,965,231, based on the average of the base values of the Engines determined in three appraisals.

Leasing Subsidiaries

Blade owns three special purpose companies, to which some of the Engine Trusts will lease the Engines owned by such Engine Trusts, and which in turn will lease the Engines to individual Lessees. This two-tier structure is designed to accommodate the tax or regulatory needs of certain Lessees. Such special purpose companies and any other special purpose companies or other entities formed by Blade or any Engine Trust that will lease Engines from Blade or the Engine Trusts and sub-lease the Engines to Lessees are referred to as “Leasing Subsidiaries.”

Initial Notes

On the Closing Date, Blade issued the Series A-1 Notes in the initial principal amount of $226,000,000, the Series A-2 Notes in the initial principal amount of $59,000,000 and the Series B Notes in the initial principal amount of $45,000,000. The net proceeds of all of such Notes were used to fund in part the payment to GECAS of the purchase price of the beneficial interests in the Engine Trusts. The Series A Notes and the Series B Notes were issued pursuant to an Indenture (the “Indenture”) among Blade, the Administrative Agent and Deutsche Bank Trust Company Americas, a New York banking corporation (“DB Trust Company”), as trustee (the “Trustee”). Each series of Notes has an expected amortization schedule and an expected final payment date as well as a final legal maturity date, specified below. Payments on the Series B Notes are subordinated to payments on the Series A Notes to the extent provided in the Indenture. Payments on the Series A-1 Notes and the Series A-2 Notes are pari passu under the Indenture.

Collateral

To secure repayment of the Notes, Blade pledged its beneficial interests in the Engine Trusts and any Leasing Subsidiaries to DB Trust Company, as Security Trustee (the “Security Trustee”), pursuant to a Security Trust Agreement (the “Security Trust Agreement”) among the Security Trustee, Blade, the Engine Trusts and the Leasing Subsidiaries. (Each Leasing Subsidiary and Engine Trust formed or acquired in the future will become a party to the Security Trust Agreement.) Under the Security Trust Agreement, the Engine Trusts also will pledge all of their other assets to the Security Trustee, including a security interest in the Engine owned by each Engine Trust and in the leases of such Engine and related assets and will cause the security interest in the Engines to be registered with the International Registry under the Cape Town Convention and an appropriate instrument evidencing such security interest to be filed with the central registry maintained by the Federal Aviation Administration (“FAA”). Except for such registration with the International Registry and the FAA, no other recordation or filing of the security interest in the Engines is contemplated. Each of the Engine Trusts and the Leasing Subsidiaries will guarantee, on a limited recourse basis, the obligations of Blade, including the repayment of the Notes.

The Security Trustee established a reserve account, the “Senior Cash Account,” to provide a source of liquidity for payments of interest on the Series A Notes, certain payments under interest rate Hedging Agreements and operating and other expenses of Blade, the Engine Trusts and the Leasing Subsidiaries. The Security Trustee also established a reserve account, the “Junior Cash Account,” to provide a source of liquidity for payments of interest on the Series B Notes. In addition, an initial deposit of $10,000,000 was deposited in a separate account, the “Maintenance Support Account,” and additional amounts are deposited in that account up to an initial maximum of $15,000,000, to provide a source for payment of certain maintenance costs and of reimbursements to Lessees for their performance of certain maintenance. Any cash security deposits or other collateral provided by Lessees to secure their obligations also were held in a separate account (the “Security Deposit Account”). As noted above, the portion of the purchase price for the Engine Trusts not paid to the Sellers on the Closing Date was deposited in a separate account (the “Engine Acquisition Account”), pending payment of the balance of the Purchase Price after the Closing Date. Such accounts, together with any accounts established by Blade and the Engine Trusts, are under the control and dominion of the Security Trustee.

Servicer

GE Commercial Aviation Services Limited (“GECAS”), an Irish company and a wholly owned subsidiary of GECC, acts as servicer (the “Servicer”) with respect to the Engines pursuant to a Servicing Agreement (the “Servicing Agreement”) among Blade, the Engine Trusts, the Leasing Subsidiaries and the Servicer. As Servicer, GECAS performs certain lease and engine-related services with respect to the Engines, including collecting lease payments from Lessees, monitoring the performance of the Lessees and the technical status of the Engines, complying with any lessor obligations to the Lessee on the lessor’s behalf, and remarketing the Engines for lease or sale. The Servicer receives as compensation for its services monthly fees

Ownership of Blade

Blade has a single class of equity shares, all of which is owned by an Irish trustee (the “Irish Trustee”) for such charitable purposes under Irish law as the trustee may select. The Irish Trustee owns 1,000 duly issued and fully paid up shares of the authorized share capital of Blade, consisting of 50,000 ordinary shares having a nominal value of $1.00 each.

Governance of Blade

Blade has a board of directors (the “Board”) that manages the property and affairs of Blade. The Board generally will consist of three directors, one of whom (the “Equity Director”) is designated by the E Certificate Investor and who may be affiliated with the E Certificate Investor or the shareholders thereof. The other two directors (the “Independent Directors”) were initially appointed by the initial directors of Blade or the shareholder. All of the Directors must be independent of GECAS and its affiliates, and the Independent Directors must be independent of the E Certificate Investor and its shareholders and any of their respective affiliates and must be knowledgeable with respect to the aviation industry and experienced in business and finance.