October 30, 2019

We continue to work on resuming our scheduled services to our destinations on Vancouver Island. We have experienced inevitable delays over the summer period, primarily due to our proposed corporate name change and complying with all regulatory requirements concerning such a process. However, this undertaking continues to proceed well.

Another remaining requirement is to finish the construction and infrastructure setup of our primary base of operations of which we are pleased to announce should be completed sometime in October. As these remaining requirements are accomplished, this will enable us to apply for our regulatory inspection. Should we satisfy all regulatory requirements, then our airline will be deemed operational.

Our new offices on Vancouver Island will become our primary flight operations and customer service center, where new flight management systems, live customer service management, and other process improvements that we’ve worked on during this year will be maintained.

In addition, during the summer period, we also experienced additional challenges concerning our overall corporate restructuring. Certain indebtedness and other operating inefficiencies of the past, has taken longer than anticipated to resolve, and some matters, essential to sustaining a consistent and satisfying experience for our customers, remain on-going. However, we confidently expect to resolve these matters before the end of November this year.

We remain committed to resuming our operations before the end of this year. Once all of these challenges are behind us, we look forward to a new year of servicing our destinations with new management, personnel, aircraft, a new name and brand, and service strategies that we believe will exceed today’s standards and expectations in our industry class.

Thank you for your continued patience, and for those customers receiving refunds and free flight credits attributed to service disruptions in 2018 and our temporary closure earlier this year, we continue to process those as best as we can, and if you have questions please feel free to email flightservices@kdair.com.

Respectfully,

KDAIR CORPORATION

Jeremy Barrett,

Chief Pilot & Ops Manager

October 30 KD Air Update Letter