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
.
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
.
Skyfreighter Canada Ltd
