DISCOVERY AIR INC 8.375 PCT DEBS T.DA.DB.A

RE: Q4 2013 Results

[Mongoose11]

I may be wrong but I find 15Stanmore's Q-4 disaster prediction a bit pessimistic. I suspect that the most recent quarterly operating loss will be less than Q-4 2012 $10 million loss. The interest costs should be lower and the incremental $8 million in sales should generate a small profit I would hope. I'll predict a $7 million operating loss.

As far as the $30-$40 million write down prediction goes I can only say that I don't see any drastic change in the goodwill/intangibles balance. If I remember correctly it mostly relates to Top Aces and the new Chilean helicopter entity that are still going concerns. The intangibles look to be amortized by about $1 million per quarter as it stands anyway. I'll predict $5 million in redundant aircraft write downs, in line with the previous quarter.

What I'm looking for is reduced debt and margin improvements.