B&B Air Announces Annual PFIC Information Statement Available on Website

DUBLIN, March 24 /PRNewswire-FirstCall/ -- Babcock & Brown Air Limited (NYSE:
FLY) ("B&B Air"), a global lessor of modern, fuel-efficient commercial jet
aircraft, today announced it has published on its website its annual tax
information statement for 2008. This statement applies only to U.S.
shareholders who intend to file Form 8621 with their 2008 U.S. tax returns.
For U.S. federal income tax purposes, B&B Air will be treated as a passive
foreign investment company ("PFIC") for 2008 and expects to be treated as a
PFIC for the foreseeable future.

To access the statement, visit the Tax Information page under the Investor
Relations section of B&B Air's website at www.babcockbrownair.com.

About B&B Air
B&B Air acquires and leases modern, high-demand and fuel-efficient commercial
jet aircraft under multi-year operating lease contracts to a diverse group of
airlines throughout the world. B&B Air is managed and serviced by Babcock &
Brown Aircraft Management ("BBAM"), the world's fourth largest aircraft
lessor. For more information about B&B Air, visit our website at
www.babcockbrownair.com.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by words such as "expects,"
"intends," "anticipates," "plans," "believes," "seeks," "estimates," "will,"
or words of similar meaning and include, but are not limited to, statements
regarding the outlook for B&B Air's future business and financial performance.
Forward-looking statements are based on management's current expectations and
assumptions, which are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. Actual outcomes and results may
differ materially due to global political, economic, business, competitive,
market, regulatory and other factors and risks. B&B Air expressly disclaims
any obligation to update or revise any of these forward-looking statements,
whether because of future events, new information, a change in its views or
expectations, or otherwise.

Contact:
Matt Dallas
Babcock & Brown
+1 212-796-3918
matt.dallas@babcockbrown.com

SOURCE Babcock & Brown Air Limited

Matt Dallas of Babcock & Brown, +1-212-796-3918, matt.dallas@babcockbrown.com