This document discusses considerations for expanding the corporate air taxi market in Europe. It notes that choice of aircraft type and managing funding issues are critical factors. The commercial airline price benchmark is moving down, so air taxis must generate positive cash flow sooner rather than later to compete. Access to funding is a primary challenge since financiers want returns within a short window, and competition is high for limited financing from other industries. Aircraft performance must closely match customer demand characteristics to expand the market successfully.

1. Considerations in Expanding the Corporate Air Taxi Market in Europe Gary Crichlow Aviation Analyst 19 th March 2009

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8. Corporate air taxi market Flight cost by distance using a range of business jet models Journey Length Price Commercial Airline: - Without hubbing - With hubbing VLJ air taxi (whole aircraft) Traditional business jet charter VLJ air taxi (per seat) Source: Embraer

10. Considerations in expanding the market European Aviation Market DEMAND SIDE SUPPLY SIDE Access to funding Price & scheduling Geography Customer characteristics Economic environment Public perception Aircraft type Operating model Regulatory compliance Infrastructure Competition

11. Demand side—European economic environment Sources: Eurocontrol, Eurostat, Ascend analysis Business aviation and the economy

13. European economic environment Cost differential between commercial and corporate aviation increasing Journey Length Price Traditional business jet charter Source: Embraer, Ascend analysis Economy class Business class VLJ air taxi (whole aircraft) VLJ air taxi (per seat)

15. Aircraft types Operating costs Matching performance, capacity and cost to demand is critical

16. Aircraft type There is a known backlog of 542 VLJs for European customers … Source: Ascend Online Fleets

17. Aircraft type … however, there is cause for concern Source: Ascend Online Fleets

23. “ The information contained in our databases and used in this presentation has been assembled from many sources, and whilst reasonable care has been taken to ensure accuracy, the information is supplied on the understanding that no legal liability whatsoever shall attach to Ascend Worldwide Limited, its offices, or employees in respect of any error or omission that may have occurred.” Provider of specialist information and consultancy services to the global air transport industry. THANK YOU! AEROSPACE INFORMATION REDEFINED