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

RE:RE:Communications to Shareholders

[Mongoose11]

I highly doubt that the government service sectors (fire and fighter training) are losing money since they are very specialized and are long term negotiated programs. That leaves Air Tindi/Great Slave/mining services and DATS. The former three must be losing money big time and are likely to get worse as the western Canadian resource sector continues to suffer. I will be shocked if aircraft from these entities aren't parked/sold and crews laid off. How could it be otherwise? As far as DATS goes I suspect it's a low margin, relatively static kind of operation that might need a little tinkering with.