1. First Quarter 2015 The Corporate Publication of DJA Aviation Insurance Brokers P. O. Box 71626, Bryanston, 2021. Telephone: 0800FLYING. Website: www.jankelow.co.za. Email: mail@jankelow.co.za Windsock Click to turn pages Exit Next Page one

2. Page two Click to turn pages Exit Next Press Release DJA Announces the Retirement of Dennis Jankelow Dennis Jankelow & Associates (DJA) the leading southern African aviation insurance broker, announced today that its founder and CEO, Dennis Jankelow, has retired after 46 years at the helm. This follows the implementation of a well-formulated succession plan several years ago, including the formation of a strong leadership team at DJA, comprising the current directors, all of whom have been with the company for many years: Graham Speller (35 years), Joanne Herman (23 years), Darryl Fisher (21 years), Marlene Gill (15 years), Jackie Nieuwoudt (16 years) and Carol Grobler (12 years). More recently, Lance Williams joined the board. As part of this process, i capital, a black-empowered investment group, took a minority stake in DJA in 2010. DJA has subsequently become part of the i capital Group, which also holds stakes in several other South Africa-based insurance intermediaries. Dennis started DJA in 1968 and the company became solely dedicated to aviation insurance in 1976. He has subsequently successfully grown DJA into southern Africa’s largest dedicated aviation insurance broking firm, a position it still proudly maintains. Lance Williams, managing director of i capital, will assume the role of CEO and will work closely with DJA’s existing leadership team. “Dennis is a pioneer in the field of aviation insurance, having recognised the importance of providing specialised advice, service and cover to the aviation industry. Dennis has built up DJA into the highly successful business it is today. We look forward to continuing on the path Dennis has established for the company and going from strength to strength in aviation insurance, both in South Africa and Africa”, said Williams. “Under Dennis’ leadership, the DJA team has developed DJA into an integral part of the aviation industry in both South Africa and the continent, ensuring that aviation owners are provided with the best cover and peace of mind when operating their aircraft” said Graham Speller. “DJA will continue to provide the best level of service and attention to the aviation industry and to develop and be a pioneer in this vitally important field.” About Dennis Jankelow Dennis was born in Johannesburg in 1948. He attended Northview High School where he was Head Boy and Captain of virtually every 1 st sports team. He trained as a toolmaker before moving into life assurance with Manufacturer’s Life and subsequently starting his own insurance brokerage, initially operating from his parent’s garage. He purchased his first aircraft in 1968 having qualified as a PPL. Over the next few years, he owned a succession of fixedwing aircraft, both single and twin-engined. Difficulties in finding a broker who knew anything about aviation led Dennis to handling his own aviation insurance requirements, which led to him developing a book of aviation clients in addition to his growing general insurance brokerage. Ultimately, in 1976, the decision was made to dispose of all non-aviation business and Dennis Jankelow & Associates became a dedicated specialist aviation insurance brokerage. Dennis is married to Michele and they have three children and two grandchildren. His interests include aviation, classic cars and motorbikes. The board of directors and entire DJA team wish Dennis all the best in his well-deserved retirement. Back

3. Page three A young hotshot pilot in an F-15 with an inflated ego was escorting a B-52; he was swooping and rolling around the bomber and generally being a pain in the you-know-what. “I can do anything you can” he was bragging to the B-52 pilot. “Try this” the seasoned pilot said. The B-52 continued flying straight and level. Perplexed, the hotshot pilot asked, “So what did you do?”. The bomber pilot replied, “I shut down two engines!”. DJA is proud to announce the launch of new aviation products for 2015. This innovative cover revolutionises insurance for private and recreational aviation. 0800FLYING allows an aircraft owner to choose the mix of cover he wants rather than having to buy a specific product. Key features include: -A truly monthly policy -Incomparable rates -Choice of benefits -No excess or deductible -Choice of repair or cash in-lieu Call 0800FLYING now for information and quotes or visit www.0800flying.co.za and complete the on-line enquiry form.www.0800flying.co.za Pistonsure provides mechanical breakdown coverage that will cater for the potentially catastrophic costs incurred following in-operation failure of your piston engine. Regular aircraft Hull policies excludes mechanical breakdown and Pistonsure will fill this gap in hull coverage. Most standard-type horizontally-opposed piston engines may be covered under Pistonsure. Call 0 800 FLYING now for information and quotes or visit DJA website at www.Jankelow.co.zawww.Jankelow.co.za Click to turn pages Exit Next Wing Tips Carrying a toolbox in your aircraft, which contains all the things needed to fix the fridge, Land Rover, borehole, etc., is obviously out of the question, so what do most pilots carry to fix things? – NOTHING! Not a good move. There always ought to be some kind of toolkit in your aircraft. The minimum requirement is a Leatherman, or similar - you will feel less vulnerable with a small but effective toolbox on board. Pilot Excess DJA’a Pilot Excess product now offers excess coverage up to R200 000 on Rotorwing aircraft. Products Traditional Loss of Licence Insurance is only made available to professional pilots who rely Upon being able to maintain their CPL and ATPL in order to earn a living. DJA has devised a form of loss of licence insurance for non-professional pilots which will cover irrevocable training expenses in the event of the permanent loss of a licence, whether a SPL, PPL, CPL or ATPL, or any rating, due to accident or illness. Training expenses incurred in the 36 months immediately preceding the loss are covered and coverage also includes accommodation expenses where accommodation was provided i.e. a residential training course. This unique product is designed to provide a high level of protection for those who may have extended financial assistance to enable family members or friends to follow their dreams of learning to fly, only to have their dreams dashed by the loss of their licence, either during or after training, through accident, illness or other health-related issues. Coverage can also be extended to include an Accidental Death benefit. Call 0 800 FLYING for further information and premium indications. Loss of Licence for Loss of Licence for Amateur Pilots Amateur Pilots AIRLARITIES Back

4. Exchange Rates and Under-insurance In January 2011, just 4 years ago, one US Dollar would have cost R6,62. In January 2015, that same US Dollar would have cost R11,62. A R5,00 swing in just four years. The USD/ZAR exchange rate has a profound effect on aircraft values in South Africa and currently there is a very real danger of finding yourself under-insured in the event of a loss. Being under-insured can lead to a write-off (known in the insurance industry as a Constructive Total Loss) when your aircraft is eminently repairable. Most insurers these days will allow you to specify a US Dollar value for your aircraft, which will create an automatic “hedge” against the gradual devaluation of the Rand. Premiums would still be paid in Rands, but the sum insured would be converted into Rands on the date of settlement of a total loss claim. For advice on how to go about establishing Dollar-linked aviation insurance coverage, call DJA now on 0800FLYING Page four The Coverage Envelope and the Seven Deadly Sins of Aviation Insurance Most aircraft owners understand the concept of the insurance “Coverage Envelope” - the parameters which outline the circumstances under which their aircraft insurance applies i.e. the “Permitted Uses”, “Permitted Pilots” and “Geographical Limits”. You could add the “Period of Insurance” to this list, but that’s really obvious! However, even if you remain within the Coverage Envelope, there are a few “Deadly Sins” which even the most generous-hearted insurer will find difficult to forgive or overlook, no matter how sympathetically they may wish to consider your claim. Committing one of these Deadly Sins will very likely lead to the denial of coverage or, at the very least, a long and difficult claims negotiation with no guarantee of a successful outcome. And, as often as not, it doesn’t matter if the Deadly Sin was unrelated to the loss. So, in no particular order of importance, here are the 7 Deadly Sins of Aviation Insurance: Flying IMC without a valid instrument rating Running out of fuel in-flight Commencing a flight without a valid C of A or ATF (Authority to Fly) Flying without a valid pilot licence/medical Operating an air service without an air service licence Overstating any pilot’s flying experience on an insurance proposal Understating or omitting any requested loss history on an insurance proposal Commit any of these 7 Deadly Sins and chance are you’ll be left without coverage, irrespective of the actual cause of your loss and regardless of the fact that you remained within the Coverage Envelope. Click to turn pages Back Exit Next Current Affairs AIRLARITIES Overheard following a Lear’s very steep climb out of ORTIA: Controller: “Lear 12345, after retrieving your passengers from the tail section, contact departure… RECENT AIRWORTHINESS DIRECTIVE AFFECTING ROBINSON HELICOPTER R22/R44 MODELS Recent Airworthiness Directives have been issued by the Federal Aviation Administration in the USA, which potentially affect owners of Robinson R22/R44 series aircraft. The Robinson-related AD No 2014-23-16 deals with potential delamination of the main rotor-blades and requires a daily visual inspection for any exposed (bare metal) skin-to-spar joint area on the lower surface of each blade. Should such bare metal be found, the AD specifies further actions to be taken. Within 5 years of the date of the AD (i.e. by 9 January 2020), regardless of whether any other action has been taken in the meanwhile, all main rotorblades, on both the R22 and R44 series, must be replaced with specified replacement blades. Whilst initially issued only by the FAA, similar ADs have been issued in Australia, New Zealand and may be expected to appear in other countries in due course.

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6. Page six Click to turn pages Back Exit Next Full Premium if Lost (FPIL) “FPIL” is one of those aviation insurance terms that emerge from the small print at the worst possible time…when your aircraft is in pieces! “FPIL” stands for “Full Premium If Lost” and basically means that, irrespective of whether the Insurer has agreed to accept payment of premium in instalments, in the event of a claim arising, the full annual premium becomes payable immediately. Unlike personal insurance, aviation insurance is usually only arranged on an annual basis, even if, by agreement, the annual premium is paid in monthly or quarterly instalments. Hence, when a loss occurs, Insurers insist on payment of the full annual premium to prevent premium payments being cancelled once the claim has been settled. This is fairly standard procedure and very few exceptions are ever made by Insurers. Where separate premium financing arrangements have been made, the event of a loss will not usually result in any payment acceleration requirements other than following a total loss, where the Policy will usually be cancelled upon settlement of the claim. When aircraft accidents occur, there are often secondary, or uninsured losses, that arise unexpectedly and which can cause a good deal of financial discomfort. The situation is exacerbated when the aircraft has been operated by a third party on the assumption that “It’s insured, so don’t worry”. The sort of secondary losses that arise will include: Loss of unearned insurance premium, applicable to the repair period Loss of market value owing to accident history Loss of income during the repair period The costs involved in hiring a replacement aircraft during the repairs Contributions to the cost of replacing life- limited components (“Betterment”) Uninsured portions of deductibles or excesses The cost of complying with ADs or SBs which would not have become due but for the repairs now being undertaken (i.e. the engine has to be opened). Whilst most of these are not insurable, it is important that you be aware of them, lest an accident gives rise to a greater uninsured loss that the insured part. When the aircraft is to be used by a third party (whether a charter company or a pal borrowing the aircraft for the weekend) it is important that the question of secondary losses, and responsibility therefor, be raised in advance, so as to avoid unnecessary argument and dispute following a loss. So you has just suffered your first aircraft accident and you’ve advised your broker…what happens next? Once your broker has advised the Insurer, they will usually appoint an Assessor to handle your claim. The Insurer will not admit liability until the Assessor reports that the circumstances of the accident fall within the cover provide by your policy. The Assessor will usually make arrangements to recover the aircraft from the accident site and move it to a suitable AMO. In order to complete his report, the Assessor will require copies of the following minimum documentation / information: The pilot’s license The last 3 pages of the pilot’s logbook A statement form the pilot regarding circumstances of accident Certificate of Airworthiness and Certificate of Safety Repair quotations (the Assessor will assist you with this) Please remember that wreck removal is not always included in insurance coverage and can be very expensive: please check with your broker that you are sufficiently covered. Both optimists and pessimists contribute to society. The optimist invents the aeroplane, the pessimist the parachute. — George Bernard Shaw “Flying is not dangerous, crashing is”. Unfortunately most life insurance companies believe that flying is dangerous and, to that end, exclude aviation. Don’t leave your family destitute with a insurance portfolio of good intentions. Take a careful look at all your policies, be they Life, Endowment, Mortgage Redemption, Sale Protection, Pension or Provident or whatever they have been called; read them and double check for aviation exclusions and, where they exist, have them changed. Claims

7. AIRLARITIES Page seven A student became lost during a solo cross-country flight. While attempting to locate the aircraft on radar, ATC asked, “What was your last known position?” Student: “When I was number one for take-off!” Click to turn pages Social Responsibility Social Responsibility is not about giving money to charity, or just asking people not to print emails for the sake of Mother Earth! First and foremost, businesses exist to make profit, and this isn’t meant to change as a goal. The reality is that no organisation operates in isolation; there is interaction with employees, clients, suppliers and stakeholders. Social responsibility is about managing these relationships to produce an overall positive impact on society, whilst making money. DJA proudly associates itself with numerous charities but two of the social responsibility programs they are most actively involved with are: REACH FOR A DREAM PROJECT - To make dreams come true, please visit www.aircraftraffle.co.za.www.aircraftraffle.co.za Back Exit Next Social Responsibility DJA’s 2014 sponsored puppy, “Tenille”, is well on her way to become a guide dog. Tenille is now 18 months old, in her final stages of training, wearing a full harness and learning new skills every day. “Kenobi” – DJA’s 2015 Sponsored Pup DJA sponsors a Guide Dog’s puppy each year. DJA covers Kenobi’s costs from the moment he is born to the day he retires following a life of service as a guide dog or service dog to a lucky recipient. Visit the DJA social responsibility page for more puppy picturessocial responsibility

8. DJA STAFF RAISE R80 000 FOR GUIDE DOGS SA Page eight Click to turn pages Staff Changes Dennis Jankelow retired on 31 st January 2015 Ilze Strijdom joined DJA on 30 th October 2014 Dale Kent joined DJA on 1 st March 2015 Natalie Gaddie has left DJA after 10 years to spend more time with her young family. Veronica Joyce left DJA after 15 years to pursue exciting new opportunities overseas. Nelia do Tanque recently completed 10 years’ service with DJA. Who’s who Visit the DJA website and put a face to a name.website Back Exit Next DJA Staff Lance Williams heads up the i capital Group and is responsible for the overall operations of i capital. He is one of the original founders of i capital and serves as a director of the group’s various subsidiary companies, one of which is DJA. He has a B.Comm BAcc (with distinction) from the University of the Witwatersrand and graduated in the top ten in the board exam (QE). Prior to his co-founding i capital, Lance was an associate within the Corporate Finance division of the Union Bank of Switzerland (UBS). At UBS he was involved in executing large corporate finance transactions, including mergers, acquisitions and disposals. Lance has been involved in a number of high profile transactions involving large listed companies. Prior to joining UBS, Lance served his articles at Price Waterhouse and was also employed in its corporate finance department. During his period of employment at Price Waterhouse, Lance gained exposure to a range of transactions involving smaller, primarily unlisted businesses. Lance was born and still lives in Johannesburg with his wife Roanna and 4 daughters: Berlynn, Camden, Jada and Milan. He is passionate about investing, insurance and the growth and participation of individuals within an organisation. DJA’s newest graduates who have successfully completed the DJA Aviation Insurance Programme. From left: Ashney Chetty, Colleen Winter, Nozipho Nkomonde, Rakeesha Odayan, Mandy Mosifane and Faith Senene. DJA believes that the business is all about the people who work here. In order for people to grow they must be taught the basics. Over the years, our training programme has developed and advanced to cater for our growing company and to align with current compliance regulations. The training provided to our brokers can be likened to the training that pilots undergo. We start off with our “ab-initio” training where potential Brokers attend regular classes in which they are taught the general principles and practices of insurance. They then attend “conversion-to-type” classes where they are provided with in-depth training of the various types of aviation insurance policies. “Advanced Instruction” is the on-going training that is provided by mentors within each team as Brokers are taught broking skills and the handling of specific accounts. Also included is the training on specific subjects that is provided twice a month by Directors and qualified Brokers.

9. Page nine Back Exit Aircraft Identification Can you correctly identify these aircraft CROSSWOR D CLUES ACROSS34. Soft, gentle breeze or wind (6) 8. Greenwich is 0 ˚ ! (8) 26. Heavenly body used in navigation 1. Peruvian capital (4)36. Against the flow (6) 12. It’s the real thing without being put there by Lockheed (8) 7. Adjust balance of (aircraft) (4)37. King of the night sky (3) on board! (9)28. Narrow strip of land connecting two 9. Terminal control area (3) 38. (Maths) A set with no members (4) ) 13. Min take-off visibility (inits)(3) larger areas (7) 10. Straight line joining centre and 39. Ride the thermals (4) 15. Narrow beam of light from small29. Material used in model construction (7) circumference of circle (6) DOWN or distant source (3)32. Pull lever backwards and start the 11. Gains altitude (6) 1. Angular distance on an 8 down 8) 18. War-time captive (inits) (3) party (5) 14. Dumps (excess weight)2. Pertaining to flyers (5) 19. Aerial sharp-shooter? (3)33. Fastens string at speed? (5) 16. Rapid descent into hovel (4)3. Measure of intensity of sound (7) 20. Fail to hold straight course (3)35. Sounds aerobatic…but it’s only a 17. ICAO version of HLA (4)4. Those who all pilots must obey(4) 21. Type of aero engine(3) job! (4) 22. Vibrate (9) 5. Where to fly for bacon and sausages(4) 23. State of panic when aircraft36. Neither birds, planes nor Superman! 27. …and graces (4) 6. Straight lines joining vertex of triangles descends while turning rapidly? (8) (inits) (4) 30. Flying without companionship (4) to midpoint of opposite side (7)24. Part of circumference of circle (3) 31. Lines of equal magnetic variation(9)7. Increases propulsive thrust (5) 25. Cry for help – dots & dashes (3) All answers will appear in the next Air Affairs. Win a high performance Led Lenser P14 torch by forming a word from the letters in the shaded blocks into one of DJA’s innovative products described in this newsletter. Email answer to debram@Jankelow.co.za first correct entry drawn wins.debram@Jankelow.co.za What was the largest aircraft to land and take off from an aircraft carrier? 2. What was special about the Fodder Eindecker fighter plane? 3. Which was the first supersonic commercial airliner? 4. Where does the name Flak (anti-aircraft fire) come from? 5. What was the name of the plane that Buddy Holly died in? Click on pictures to enlarge 1 2 3 456 7 8 9 10 11 12 13 14 15 16 17 18192021 22 2324 25 26 27 2829 30 31 32 33 34 35 36 37 38 39 Competitions 16 17 22 34 1 2 3 4 56 Trivair

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