Superjumbos Prashant Chopra Jenny Gordon Timothy Richter Aaron Rosenberg Katerina Vrettou

Agenda  Market Overview & Current Strategies  Trade Issues  Current and Future Situation  Conclusions  Q & A

Rationale for Superjumbo  Fewer, larger aircraft will reduce airspace and airport congestion  Airlines will achieve lower operating costs

Boeing Cedes Market to Airbus  Airbus effectively signaled commitment  Companies have different market forecasts

Current Strategies  Airbus A380  Delivery scheduled for 2006  Validated by Boeing’s retreat  Boeing Sonic Cruiser  Betting on increased demand for smaller, faster jets

Specifications A380 Sonic Cruiser Capacity (seats) 555Up to 300 Range6200 nm9000 nm SpeedMach.85Mach.95 Price $230 million N/A

Trade Issues  1992 EC –US Bilateral Agreement on Trade in Large Aircraft  Direct vs. indirect subsidation  1994 Uruguay Round Agreement  Current status

Current Situation  Order status (A380)  Firm orders: 62  Options: 60+  Sonic Cruiser  Exists on paper only  No orders

Current Situation  Some airports being expanded  Dubai  Singapore  Schiphol (Amsterdam)  Hong Kong  Engines  GP 7000 series (GE / Pratt & Whitney alliance)  Trent 900 series (Rolls Royce)

And Now…  Success factors  A380: acceptability  Airports  Airlines  Load factor  Sonic Cruiser  Feasibility  Time factor

Conclusions  Boeing/Airbus pursuing different segments  This opens two segments for us as an engine manufacturer  We’re ready for both  It doesn’t appear that trade issues will affect this situation

Questions