1. Impact of Low Cost Carriers Tourism

2. Fundamentals of Low Cost Aviation Simplicity reduces cost Uniformity and consistency drives operating efficiencies. Reduced cost drives lower Prices LCC’s adopt Market penetration pricing strategies, supported by active promotions, Marketing and Innovation. Lower prices drives demand growth Demand growth due to increased frequency of use as well as modality switch. 35% of global air traffic 50% of all passengers between Johannesburg & Cape Town 60% of narrow-body aircraft orders All on/from low cost carriers.

3. Estimates adapted from a recent study by Oxford Economics Approximate direct contribution to Mango’s local supply chain (ex fuel): ZAR 400m; Economic Impact of Low Cost Airlines (Mango) Approximate indirect contribution through supply chain and employee spend: ZAR 320m; Approximate catalytic benefits through tourism: ZAR 1 bn; SOC contribution (ACSA, ATNS, SA Weather Services): ZAR500m; GDP Contribution Approximate Treasury contribution through VAT and taxes: R200m; Approximate Industrial Participation Program benefit: R70m. Estimates adapted from a recent study by Oxford Economics

4. Estimated that approximately 100 new jobs are created when an airline assumes operation at an airport; Economic Impact of Low Cost Airlines (Mango) Mango directly employs 543 people, supporting approximately 5,000 persons downstream; Approximately 7,400 jobs are supported through the Mango supply chain and employee spend; Catalytic effects on tourism sees an approximate 9,000 jobs created; Employment Effect Aviation creates high-value employment – twice the national average.

5. Potential for Low Cost Aviation and Tourism International precedent Premise: LCC’s reduce cost of travel with resultant benefit to the economy as a whole and the business as well as tourism sectors individually; Spanish Example: Volume growth post 9/11 driven by LCC expansion; By 2008: LCC’s gained > 50% share; Overall Market showed sustained growth, despite recessionary impacts Substantial benefit: 612,000 tourism jobs supported; €40.0 billion in ‘catalytic’ benefits through tourism; 149m passenger per annum, 55% LCC. 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1

7. More than just low prices Ongoing generic awareness campaigns Mango Juice – 75% tourism/destination content; Social media – 250,000 downstream communication recipients; Leverage of distribution networks – Edcon, Shoprite, Momentum etc. Intentional tourism stimulation Event and Destination-driven offerings; Cooperation with tourism authorities and bodies in targeted promotional campaigns. Value-chain alignment for gain Bundling of related products, offered to the right customer, at the right time.

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