1. New Level 2 Concept JSAG SPR review – GVA September 2013 CONFIDENTIAL – NOT FOR DISTRIBUTION

2. What’s the problem? Voluntary Level 2 processes are ineffective – Airports/ATC/regulators need greater certainty, resulting in airports being designated Level 3 for peak-time only issues – Small minority of uncooperative airlines cause the voluntary Level 2 process to breakdown Full Level 3 imposes costs and inefficiencies on the industry – Airline inefficiencies from having to operate during periods of low passenger demand to maintain slot series and 80/20 (also environmental dis-benefits) – Airport inefficiencies from new entrant rules and poor use of slots (small aircraft, late handback, etc). Complex rules only necessary at a small number of airports – Many/most current Level 3 airports only have peak time issues and market access is not significantly constrained. – Only the most congested hub airports tend to have genuine market access issues (eg, LHR, FRA, NRT etc) or where there are binding environmental constraints (ie, movement caps or night restrictions – eg, ORY, LIN, AMS) – Only these airports need formal market access rules (slot pool, new entrants, slot trading, etc). CONFIDENTIAL – NOT FOR DISTRIBUTION

3. The Current Airport Levels Level 1Level 2Level 3 DefinitionAdequate capacity to meet demand at all times Peak time congestion resolved by voluntary schedule adjustment Demand significantly exceeds capacity; voluntary cooperation ineffective Message TypeSMA SCR Mandatory slot allocationNo Yes Market access rules -Slot pool -50% new entrant rule No Yes Usage requirements -Slot series -80/20 rule -Force majeure rules No Yes Historic PrecedenceNo Historic Rights Sanctions against misuseNo Yes (depends on local law) Slot trading and exchangesNo Yes Airport status listed by IATANoYes CONFIDENTIAL – NOT FOR DISTRIBUTION

4. Possible Future Levels Level 1Level 2Level 3 DefinitionGenerally adequate capacity to meet demand; voluntary adjustments possible Peak time congestion requiring slot allocation, but all flights get slots within +/- 1h. Excess demand creating market access issues; ‘no slots’ or offers more than +/- 1h. Message TypeSMASCR Mandatory slot allocationNoYes Market access rules -Slot pool -50% new entrant rule No Yes Usage requirements -Slot series -80/20 rule -Force majeure rules No Yes Historic PrecedenceNoHistoric PriorityHistoric Rights Sanctions against misuseNoSignificant off slot; significant different way Slot trading and exchangesNoExchanges – Yes; Trading not necessary Yes Airport status listed by IATAYes CONFIDENTIAL – NOT FOR DISTRIBUTION

5. Current Airport by coordination level* Half of schedule managed airports are Level 3, and the number is growing Many Level 3 airports only have modest peak-time issues, but voluntary Level 2 does not work Few airports have targeted Level 3 during peak seasons/periods only * WWACG data including Level 1 airports not published by IATA CONFIDENTIAL – NOT FOR DISTRIBUTION

6. Possible Future* Simpler, more effective, more targeted processes * Indicative only CONFIDENTIAL – NOT FOR DISTRIBUTION

7. Benefits To Airlines – More efficient and flexible scheduling (no slot series and 80/20 requirements) in exchange for submitting to mandatory Level 2 slot allocation – Ensure the less cooperative competitor airlines do not abuse a voluntary process and force unnecessary Level 3 designation To Airports – Ensure robust slot allocation processes without excessive complexity – More flexible commercial development without being bound by inefficient new entrant rules Other Benefits – Objective criteria for designating airport levels, ie, whether demand can be accommodated within +/- 1h. – Easier to combine Level 2 with targeted Level 3 during peak seasons/times of day, rather that declare full time Level 3 – Airport level criteria are aligned with triggers set by competition authorities (eg, acceptability of slots +/- 1h) in recent slot remedy cases – More complicated market access rules and slot trading are limited to only the world’s most congested airports – Reduces the costs of coordination and compliance CONFIDENTIAL – NOT FOR DISTRIBUTION

8. Next steps Agreement in principle by JSAG – Work up concept in more detail Consultation with ACI – The objective is fewer Level 3 airports, not more formal Level 2 airports Consultation with Regulators – eg, European Commission about compatibility with existing/future regulations CONFIDENTIAL – NOT FOR DISTRIBUTION