16 November 2007

Minter Ellison

Aurora Place

88 Philip Street

SYDNEY  NSW  2000

Attention:  John Weber

Dear Mr Weber

Dick Smith and Air Services Australia

We refer to your letter of 15 November 2007 received at 5pm yesterday.

The initiatives now adopted by Air Services Australia, following our client’s intervention, are welcomed and obviate the need for our client to commence the foreshadowed proceedings.

You complain about a number of alleged factually incorrect statements made by our client in the media concerning Flightwatch including that Air Services did not perform a proper safety assessment for the proposed Flightwatch changes.  Our client is prepared to correct that statement if he is provided with a copy of the relevant safety study obtained by Air Services.

In relation to the alleged defamatory comments by our client on the Sunrise program, if that relates to the description of the Chairman of Air Services as a farmer who did not have aviation knowledge and relied on the advice he was given, please advise what part of that statement is not correct.

Yours faithfully

Johnson Winter & Slattery