Subject
  To create an operating consortium among Millennium Airship Inc. (US Corporation) and Canadian Affiliated companies in the joint operation of SkyFreighter Canada ltd. This business venture will encompass the purchase and/or lease of HVLA airships, the creation and operation of the Depot and Field Maintenance facilities and activities, freight moving and handling facilities, and all associated flight operations requirements.
 Purpose
SkyFreighter Canada Ltd. is to establish a hybrid heavy lift aircraft operation in Canada to transport equipment, supplies, personnel, and other cargo from southern areas of Canada or northern United States to the far northern areas of Canada. The operation will enable the support of oil drilling, pipelines, mining, logging, firefighting, and supply and re-supply of communities throughout Canada.
 Legal Status
SkyFreighter Canada Ltd. will be a MAS wholly owned subsidiary formed in Canada and be operated within the Canadian laws.
   SkyFreighter Canada Ltd. will be the joint responsibility of Millennium Airship Inc. and The Canadian Affiliated Companies, with Millennium Airship Inc. securing 51% and the Canadian Affiliated Companies 49% of Millennium Airship Canada Ltd of all voting and management rights.
   The SkyFreighter Canada Ltd. Organization Board of Directors will be responsible for the oversight of this company. This board will have a set number of directors (TBD), with the majority of the Board members from MAS. The Chairman of the Board will be from MAS initially; at some time in the future the Chairman will be elected from the Board of Directors. Each member will be dedicated to the success of this company and will be available for biannual scheduled meetings and emergency meeting as called by the Chairman of the Board. The Board of Directors will be responsible for appointment of the President, who is responsible for the day-to-day management of the company.
   The President of SkyFreighter Canada Ltd. will be responsible for appointing the Executive Vice President, with the Board of Directors approval. The Executive Vice President will be responsible for the appointment of the Executive Office, Chief Operations Officer, and the heads of each group, with approval of the President. The annual report to the Partners will include a copy of the Partnership's Federal Income Tax filing and the following: Supporting Income Statement, Balance Sheet, Cash Flow Statement, and Profit and Loss Summary.
 Operating Directives
Each organizational group, including the Board of Directors, will originate a set of operating directives to guide their day to day operations. The directives will be approved by the director of the particular group. These will be determined and finalized after we have come to a mutual agreement to in upcoming meetings.
 Sound Profitable Growth
   The sky is the limit for potential profit generation for Millennium Airship. As design turns from paper to product, more and more interest (and orders) will be generated as MAS prepares for first flight of their production models. Once the HHLAV has flown and proven its capabilities, the transportation world will be at Millennium Airship's door step. We must be in position that we fully control this marketplace by securing at least the first 100 production units of the HHLAV. The long term planning would be to never allow another company to enter the market and ensure production orders well into the 21st century.
   Profit will be generated in a variety of means. The most obvious is by movement of freight via the HHLAV. Based on technical information currently available on range, duration, fuel consumption, lifting capabilities, maintenance intervals and equipment life cycle, we have conservatively estimated that once at least ten air ships are in service, gross profits per air ship would range from ten to fifteen percent. The larger the number of air vehicles, the larger the base to spread non-value added operational costs.
   Note: the single largest driver affecting profits is the price of fuel.
Pricing assumptions: 50 ton lift HHLAV
Average distance of flight - 2000 miles
Average speed of flight - 80 MPH / 70 KH
Average flight time - 6.3 hours
Average cost per ton/mile - $.55 to $.67
Average flight ops time - 60%
Number of flight crews Air vehicle - 3
  Another revenue stream will be the removal of waste and/or recyclable materials from environmentally and remote areas on the return sortie on each freight delivery flight. An expansion of this revenue stream will be the manufacture of the containers needed to store and transport this material. This element will also serve to improve flight characteristics of the HHLAV on the return leg of each delivery flight (ballast is good for an air vehicle).
   Yet another revenue stream would be the creation of an air vehicle leasing company that would purchase the HHLAV directly from another manufacturer and lease those ships back to Millennium Airship. This would be a non-trivial undertaking as the cost of each air ship is currently estimated to be between fifty and sixty-million dollars. With the estimated initial commitment of 150 air ships, total financing on sixty-billion would need to be secured over a five year period. Depending on the business model approach, we currently estimate that this leasing company could easily generate at least ten percent (10%) operating profit without affecting Millennium Airship bottom line.
   Millennium Airship's HHLAV management team is certain that there is a world wide need of hundreds and hundreds of these hybrid heavy lift air vehicles. This leasing company would always have a paying customer for every ship they purchased and should have no concern about excess inventory.
   A less obvious means of revenue would be via marketing on the sides of the air vehicles as they sortie from location to location. As the initial air vehicles are planned to be used in the Canadian far north, this option would not be viable until there are enough air vehicles in service flying in more populous areas.
   In the event that other companies are able to purchase the HHLAV directly from another manufacturer, we have the option of performing their yearly depot maintenance at our dedicated depot facilities that will be eventually located throughout Canada. An independent operator having less than ten air vehicles would have extremely high operating costs and not be able to generate their own facilities.
Continue to
.
Copyright © 2017
Millennium Airship Inc/SkyFreighter Canada Ltd
Subject
  To create an operating consortium among Millennium Airship Inc. (US Corporation) and Canadian Affiliated companies in the joint operation of SkyFreighter Canada ltd. This business venture will encompass the purchase and/or lease of HVLA airships, the creation and operation of the Depot and Field Maintenance facilities and activities, freight moving and handling facilities, and all associated flight operations requirements.
  Purpose
SkyFreighter Canada Ltd. is to establish a hybrid heavy lift aircraft operation in Canada to transport equipment, supplies, personnel, and other cargo from southern areas of Canada or northern United States to the far northern areas of Canada. The operation will enable the support of oil drilling, pipelines, mining, logging, firefighting, and supply and re-supply of communities throughout Canada.
 Legal Status
SkyFreighter Canada Ltd. will be a MAS wholly owned subsidiary formed in Canada and be operated within the Canadian laws.
   SkyFreighter Canada Ltd. will be the joint responsibility of Millennium Airship Inc. and The Canadian Affiliated Companies, with Millennium Airship Inc. securing 51% and the Canadian Affiliated Companies 49% of Millennium Airship Canada Ltd of all voting and management rights.
   The SkyFreighter Canada Ltd. Organization Board of Directors will be responsible for the oversight of this company. This board will have a set number of directors (TBD), with the majority of the Board members from MAS. The Chairman of the Board will be from MAS initially; at some time in the future the Chairman will be elected from the Board of Directors. Each member will be dedicated to the success of this company and will be available for biannual scheduled meetings and emergency meeting as called by the Chairman of the Board. The Board of Directors will be responsible for appointment of the President, who is responsible for the day-to-day management of the company.
   The President of SkyFreighter Canada Ltd. will be responsible for appointing the Executive Vice President, with the Board of Directors approval. The Executive Vice President will be responsible for the appointment of the Executive Office, Chief Operations Officer, and the heads of each group, with approval of the President. The annual report to the Partners will include a copy of the Partnership's Federal Income Tax filing and the following: Supporting Income Statement, Balance Sheet, Cash Flow Statement, and Profit and Loss Summary.
 Operating Directives
Each organizational group, including the Board of Directors, will originate a set of operating directives to guide their day to day operations. The directives will be approved by the director of the particular group. These will be determined and finalized after we have come to a mutual agreement to in upcoming meetings.
 Sound Profitable Growth
   The sky is the limit for potential profit generation for Millennium Airship. As design turns from paper to product, more and more interest (and orders) will be generated as MAS prepares for first flight of their production models. Once the HHLAV has flown and proven its capabilities, the transportation world will be at Millennium Airship's door step. We must be in position that we fully control this marketplace by securing at least the first 100 production units of the HHLAV. The long term planning would be to never allow another company to enter the market and ensure production orders well into the 21st century.
   Profit will be generated in a variety of means. The most obvious is by movement of freight via the HHLAV. Based on technical information currently available on range, duration, fuel consumption, lifting capabilities, maintenance intervals and equipment life cycle, we have conservatively estimated that once at least ten air ships are in service, gross profits per air ship would range from ten to fifteen percent. The larger the number of air vehicles, the larger the base to spread non-value added operational costs.
   Note: the single largest driver affecting profits is the price of fuel.
Pricing assumptions: 50 ton lift HHLAV
Average distance of flight - 2000 miles
Average speed of flight - 80 MPH / 70 KH
Average flight time - 6.3 hours
Average cost per ton/mile - $.55 to $.67
Average flight ops time - 60%
Number of flight crews Air vehicle - 3
  Another revenue stream will be the removal of waste and/or recyclable materials from environmentally and remote areas on the return sortie on each freight delivery flight. An expansion of this revenue stream will be the manufacture of the containers needed to store and transport this material. This element will also serve to improve flight characteristics of the HHLAV on the return leg of each delivery flight (ballast is good for an air vehicle).
   Yet another revenue stream would be the creation of an air vehicle leasing company that would purchase the HHLAV directly from another manufacturer and lease those ships back to Millennium Airship. This would be a non-trivial undertaking as the cost of each air ship is currently estimated to be between fifty and sixty-million dollars. With the estimated initial commitment of 150 air ships, total financing on sixty-billion would need to be secured over a five year period. Depending on the business model approach, we currently estimate that this leasing company could easily generate at least ten percent (10%) operating profit without affecting Millennium Airship bottom line.
   Millennium Airship's HHLAV management team is certain that there is a world wide need of hundreds and hundreds of these hybrid heavy lift air vehicles. This leasing company would always have a paying customer for every ship they purchased and should have no concern about excess inventory.
   A less obvious means of revenue would be via marketing on the sides of the air vehicles as they sortie from location to location. As the initial air vehicles are planned to be used in the Canadian far north, this option would not be viable until there are enough air vehicles in service flying in more populous areas.
   In the event that other companies are able to purchase the HHLAV directly from another manufacturer, we have the option of performing their yearly depot maintenance at our dedicated depot facilities that will be eventually located throughout Canada. An independent operator having less than ten air vehicles would have extremely high operating costs and not be able to generate their own facilities.
Continue to
.
Copyright © 2017
Millennium Airship Inc/SkyFreighter Canada Ltd