Global Opportunities April 13, 2012

2012 International Survey Questions we will answer during this presentation: What does being a “global” organization mean? How would our members benefit from a global membership? What’s in it for me and my country’s AOPA? How will it work? How will we know if it’s successful? “Being global assures that you act as and are perceived to be a citizen in every community in the world, that you are able to bring resources to bear when and where there are opportunities, and that you are adept at recognizing and addressing trends in customer needs and wants on a local as well as a global scale.” -Steven M. Worth, Plexus Consulting 2

2012 International Survey Why are we talking about this? 3 Declining memberships Declining active pilots Declining pilot population in mature markets Decline in flying activity Increasing fuel and other associated costs Increasing demand for future pilots Borderless world through the internet creates challenges and increased accessibility. How can we ensure that general aviation will be around for future generations? Are you interested in an opportunity to leverage existing assets and resources to create a stronger global brand for AOPA and enhance your local AOPA offering ?

2012 International Survey What’s in it for me? Grow your membership Leverage expertise throughout the IAOPA network Capitalize on operational efficiencies Expand your membership offerings, benefits and services Generate new revenue Reduce your overhead Increase your marketing and communications at no additional cost Does this list incorporate items important to you and your AOPA’s success? 4

2012 International Survey Summary of Activities  Attended the IAOPA EU Regional Meeting in Krakow, Poland, September 2011  Strong support for AOPA US to work with IAOPA affiliates on membership development and supplemental products and services.  AOPA US launched an International online lead generation campaign in November 2011 providing free aviation content in exchange for contact information.  Generated 6,000 new leads and cultivation of these leads in process ( and direct mail)  Four IAOPA’s have agreed to participate in a joint membership offer ($45 AOPA US; $45 local AOPA) UK, Germany, Lebanon, Denmark  AOPA US engaged a consultant based in Washington, DC to evaluate the opportunities for AOPA (collectively) from a global branding and growth opportunity standpoint.  Situational analysis report completed mid-November with recommendations for additional research  AOPA US surveyed 5,000 international members in February to identify their reasons for joining AOPA US and their products and services needs  In February, consultant completed six interviews with aviation opinion leaders who have expanded globally  Attended the IAOPA EU Regional Meeting in London, UK, March 2012  Shared research related to AOPA as a global brand  Discuss the viability and appetite for AOPA to pursue a more global approach  Agreement to refine concepts and continue the conversation 5

2012 International Survey Key Findings  Strong interest from international members for a global organization to meet all of their needs  Industry opinion leaders believe there is tremendous opportunity and need for AOPA to expand global presence and leverage the growth opportunities in emerging markets  Opinion leaders recommend AOPA partner with “sister” organizations and develop innovative new strategies to reignite interest in private aviation  Opinion leaders believe that AOPA is the only organization of its kind with well- established, successful programs and an infrastructure that would be capable of serving these markets 6

2012 International Survey Key Findings  31% of AOPA US international members joined to become a better more informed pilot  30% of respondents are also a member of their “local” AOPA 36% of “local” AOPA members selected advocacy as the primary reason for membership  AOPA Pilot, AOPA.org, and online safety courses were the top rated benefits for AOPA US international members  81% of international members agree or strongly agree that AOPA should be a more global organization that provides additional products and services  When asked what products and services were of most interest, international members were most interested in “international destination information,” a safety certification program, and international flight planning 7

2012 International Survey Conclusions:  As our industry transforms into a globalized marketplace, we all recognize the innate challenges of serving audiences that no longer have geographic barriers - while maintaining collaboration and limiting competition.  Growing need and importance for mutually beneficial collaborations that pool resources and build synergies between organizations to advance and pursue common interests, goals, and mission objectives.  AOPA US has nearly 400,000 members, representing about 2/3 of all certificated pilots in the United States;  Additionally, there are approximately 60,000 members across 69 countries affiliated with International AOPA, representing only 10% of the estimated 600,000 pilots outside of the US;  US and European markets are mature and declining;  Countries such as Brazil, Russia, India, China, and South Africa (BRICS) represent the largest growth areas for general aviation and represent opportunities for manufacturing, flight training, and aviation service providers; as well as opportunities for both IAOPA and AOPA market growth and expansion. 8

2012 International Survey Associations and Globalization The areas of greatest interest are: Membership development Conferences Trade Shows Scientific/scholarly publications and information exchange Education and training Credentialing/standards setting Regions of most active membership presence (outside North America) Europe – both east and west Asia Latin America 9

2012 International Survey Global Strategic Alliances Powered by Technology Organizations which are nationally-rooted but tied to international trends can form strategic alliances with overseas partners Partnerships consist of cooperation and joint venture agreements with a wide variety of other types of organizations to host international conferences and other information exchanges Revenue-sharing arrangements are worked out on a per-project basis Offers maximum flexibility to work with groups that may share some interests but are otherwise different. Even cheaper than other models but also least control with less shared sense of purpose for the events Many organizations face a conflict between domestic national market interests and the provision of global products and services The creation of virtual global organizations, through the Internet, minimizes costs while allowing for communication and service provision 10

2012 International Survey Model #1: Global Strategic Alliances Powered by Technology 11 AOPA Global

2012 International Survey What if an organization existed with the following: Vision: To have a world in which everyone has the freedom and ability to explore and participate in aviation. Mission: We share our passion for aviation with our partners around the world to help people realize their aviation dreams. Principles: Supporting education and safety Representing operational excellence Respecting local cultures, traditions and laws Forging partnership based on mutual benefit Promoting the community and fun of aviation 12

2012 International Survey Can I include you country in this new endeavor? Next Steps: 1. Formalize the business plan for new service organization 2. Share business plan and participation/partner agreement with all IAOPA countries outlining details, roles and responsibilities 3. Establish new service entity and begin marketing the AOPA Global Membership 4. Increase the overall AOPA membership and penetration in each respective country. 13