1. BRAZIL : Air Transport and Hotels Markets This document was prepared to JCKS group Jul 2011

2. The Country Air Transportation Hotels Summary BRAZIL : Air Transport and Hotels Markets This document was prepared to JCKS group Jul 2011

3. Brazil is South America's most influential country, an economic giant and one of the world's biggest democracies. It is one of the rising economic powers - otherwise known as BRIC nations - together with Russia, India and China. Over the past few years it has made major strides in its efforts to raise millions out of poverty. The discovery of major offshore oil reserves could propel the country into the top league of oil-exporting nations. Worl Bank The Country Air Transportation Hotels

4. The solids macro economic fundamentals and maturity of government and non government Institutions provide a political and social climate of predictability to investors and favorable the continuous growth. An era of prosperity . . . World Bank and IBGE The Country Air Transportation Hotels

5. The predictions to 2020 are that Brazil will overtake UK and France economies https://www.gplus.com/Infographic/INFOGRAPHIC-Whats-Best-for-Brazil The Country Air Transportation Hotels

6. Demography is one the most important macro variable that is impacting a significant change in consumers behaviors. "About 40 million came to the middle class. And the middle class came from the poorest of the population. Even we get a sense of proportion is as if, during this period, we get up off of poverty, the whole Argentina population. It is made a huge and this thing is very important because it means that all these Brazilians have joined a group of citizens who have more access to health care. We know that this process will continue, has the commitment of the Brazilian government, "said President Dilma during the commemoration of 60th anniversary of the newspaper "Day" in Rio de Janeiro. g1.globo.com/ As a result, there is a positive and consistently impact in growing. Pyramed Age I BGE The Country Air Transportation Hotels

7. Brazil has a unique combination of four strengths to foster sustainable economic growth The Country Air Transportation Hotels

8. The good performance of the economy directly impacts the traffic of airline passengers and has caused a consistent growing demand. The main variables of the airline operation , 1 - Expenditure on Leasing 2 - Fuel 3 - Development of the Real against major international currencies, are causing a positively impact to compete in price of air tickets and allow Them to reachthe demand for air transport in population Class C and D. Domestic Air Traffic Grow ANAC The Country Air Transportation Hotels

9. Domestic Air Traffic - 2010 MARKET SIZE Passenger volume 71,7 million Embarking + Disembarking 137,8 million passenger volume ASK 102,0 billion RPK 71,4 billion Industry Average Load Factor 68,7% ANAC , INFRAERO The Country Air Transportation Hotels

10. Passenger volume evolution ANAC The Country Air Transportation Hotels

11. Brazil Civil Aviation Fleet ANAC The Country Air Transportation Hotels

12. Domestic Market Share as of Jun/2011 ANAC The Country Air Transportation Hotels

13. Domestic Market Share as of Jun/2011 ANAC Leaders Destinations TAM 42,47% 44 GOL 37,47% 49 Followers AZUL 7,91% 24 WEB JET 5,42% 14 AVIANCA 2,67% 14 Regional TRIP 2,77% 78 Passaredo 0,77% 19 The Country Air Transportation Hotels

14. Airports TOP 5 50% TOP 10 70% TOP 13 80% São Paulo State 31% Infraero network: 67 airports Infraero The Country Air Transportation Hotels

15. Passenger Services Systems Information of Domestic Airlines Research from author The Country Air Transportation Hotels Airline CRS DCS GDS Rev. Manag. GOL Navitaire Navitaire Amadeus Sabre AirMex TAM Amadeus Amadeus Amadeus Na AZUL Navitaire Navitaire Direct NA WEB JET CIONS CIONS Direct NA TRIP SABRE SABRE Direct (?) NA

16. Passenger Services Systems Information of Domestic Airlines Status of services: TAM migrated to Amadeus full service platform one year and half ago GOL is committed with Navitarie but there some discomfort since the platform is over capacity AZUL is committed with Navitarie TRIP will migrate in full to SABRE in a few months. WEB JET uses a local system solution, The Country Air Transportation Hotels

17. Hospitality Industry Similar to Airline business the hotel demand is very high with consistent Load Factor. At major metropolitan regions Brazil room night offer is facing under capacity and the Average Net Fares high. The large hotels chains have nearly 40% of market share And the remaining is hold by independents. Since the Hotels technology development is behind the Airline business stage, we strong believe we may have relevant opportunities to technology vendors We will develop a summary of Hotel market for next conference call. The Country Air Transportation Hotels

18. Thank You The Country Air Transportation Hotels

19. Questions and Answers. Next steps ? The Country Air Transportation Hotels