Para 8.Point  B.         

Reliance on them–“comprehensive/thorough” = truth underpinned by independence /objectivity
Reliance - the MAC Annual report for FY2006 at page 14 refers to reliance on customer delivery projections as well as external market forecasts – as para 5. above

Para.9.3.   - Customer delivery projections

although provided to PwC by both MAC and me it clearly showed reducing A340-500/600 production programmes for FY2007 – FY2009 (32 a/c) at a rate of circa ten a/c per year and consistent with Mr Butyniec’s knowledge in his oral evidence in January 2008

Mr Little

Airbus internal plan – rate about 10 per year?

Mr Butyniec

That makes sense                                               

You will also have had the opportunity to read paragraph 5 and the oral evidence/knowledge of some Magellan senior management.

The implications of this customer delivery projection information and these documents were EXCLUDED from the PwC report and its Exhibits.  That is important as not only does it state such reliance by Magellan in the Annual Report it also sets the benchmark for the most likely “highest delivery rate” in an aircraft production industry with approximately a 24 - 36 month lead time to increase existing production rates for twin aisle / wide- body aircraft.

Q9.3:Why did PwC exclude this doc./ignore this A340 x 10 a/c  rate p.a. from all their analyses/report??

Factually Airbus did correctly project in their February 2007 production plan a 32 a/c build from FY2007-FY2009; and then deliver 30 + 2 “cancelled” Kingfisher A340-500 aircraft  by the end of December 2009.

UPDATED August 2010: The plan for FY2010-2014 published by Airbus on 30 June 2010 now shows no further A340-500/600 production build.  I anticipate Airbus will add occasional A340 500 aircraft to the production schedule to use up inventory for VVIP customers up to 2014 so a Production build = 135 a/c.