1. Board Presentation 2006 Group 8 Dickson CHAN / Michelle CHONG / Belle KWOK / Kevin LI / Jonathan WONG

2. Presentation Outline Introduction Business model (comparison with similar airlines) Market Share Estimate Key Performance Indicators (Profit / Loss) Fleet Planning Summary

3. Introduction Organisational Structure

4. Introduction Our Objectives Provide at least one daily frequency between our destinations To achieve average load factor of 70% in our first year To become profitable within our first year Mission Statement To become the preferred airline in the premium business travel market sector in Australia and the World Delivering Safe, efficient and reliable air services Innovative and personalised customer care

5. Product and Services All Business Class cabin 60 passengers Introduction

6. Product and Services 2-2 configuration 61 inch seat pitch 22.9” inner seat width Introduction

7. Sydney (SYD) Melbourne (MEL) Hong Kong (HKG) London (STN) HKG/SYD: 8 per week HKG/MEL: 7 per week HKG/STN: 12 per week Network / Frequencies Frequencies

8. Business Model Developing the business model… EOS premium business/first class service Maxjet: low fare business class service Privatair Service operated on behalf of Lufthansa, KLM and Swiss International

9. Business Model We are different from Ozjet... - Domestic: Network and Frequency - Fuel-inefficient 1970s aircraft - High cost of maintenance - Lack of travel agent support - High break-even seat factor - International: Comfort - Fuel-efficient ( newest generation of 737) - New airframe, low maintenance costs - Ticket distributions on GDS - Better break-even seat factor

10. Market Share Estimate 14.3%15.6%15.5%29.7%24.2% Total Market Share 10.2%13.3%13.5%21.3%22.4% Capacity Share (30%) 16.0%16.7%16.3%33.3%25.0% Frequency Share (70%) 102,60074,70060,20032,70036,600 Forecasted NS06 Total Business Class Passenger Traffic Hong Kong/ London Sydney/ London Sydney/ Hong Kong Melbourne / London Melbourne/ Hong Kong Routes

11. Yield (per route) Unit Cost (per route) Breakeven Actual Seat Factor Utilisation Profit / Loss Key Performance Indicators

12. 14.7 Aircraft Utilisation (hours/day) 18.8 18.918.818.618.818.6 Unit Cost (cents/ASK) 28.8 33.724.731.124.731.1 Yield (cents/RPK) 66.9% 56.2%76.0%59.8%76.0%60.0% Breakeven Seat Factor - ~40~35 ~25~30 Allocated Capacity (one-way seats/day) 75.9% 65.0%78.5%62.5%82.4%62.3% Passenger Seat Factor 637.3 112198.168.6164.865.6 Expected Revenue Passenger Km (million RPKs) 839.5 172.3252.3109.7199.9 105.3 Available Seat Km (million ASKs) System-wide (NS06) Hong Kong/ London Sydney/ London Sydney/ Hong Kong Melbourne/ London Melbourne/ Hong Kong

13. Key Performance Indicators Profit / Loss - NS06 (1) 21.1 14.61.60.93.20.8 Profit/Loss before interest and tax (A$ million) (157.5)(32.6)(47.3)(20.4)(37.5)(19.6) Operating Expenditure (A$ million) 178.647.24921.340.720.4 Passenger Flight Revenue (A$ million) System-wide Hong Kong/ London Sydney/ London Sydney/ Hong Kong Melbourne/ London Melbourne/ Hong Kong

14. Key Performance Indicators Profit / Loss – NS06 (2) 8.9%7.8%6.9%11.8% Gross Profit Margin 110.3%108.9%109.5%113.4%Operating Ratio Qantas Cathay Pacific British AirwaysSkyways

15. Fleet Planning Boeing BBJ2 Range With 7 auxiliary fuel tanks- 10,460km Mission Requirements Route Distance (km) Sydney / Hong Kong7372 Melbourne / Hong Kong 7387 London Stansted / Hong Kong9582 Future Mission Requirements Brisbane / Hong Kong 6930 Perth / Hong Kong 6007 Paris / Hong Kong 9607 Frankfurt / Hong Kong 9171 Boeing BBJ2 Range Capability Chart Mission Requirements

16. Fleet Planning (2008-2012) Forecast 717,500 Stansted / Hong Kong 368,010 Sydney / Hong Kong 322,664 Melbourne / Hong Kong ASK (000s) 2006 Annual ASKs PRODUCED 953,864900,737850,718803,751759,780 Stansted / Hong Kong 475,218434,921399,412368,694368,010 Sydney / Hong Kong 512,629461,726415,115372,728334,494 Melbourne / Hong Kong 20122011201020092008 ASK (000s) Annual ASKs required Note: Cells highlighted in Yellow indicates that the current ASKs would not meet the ASK requirements of that year

17. Fleet Planning Boeing 767-200ER 102 seats / 2-2-2 configuration (similar to Maxjet) max range 12,223km Capable of carrying FRT 10 tonnes on SYD-HKG 3.7 tonnes on STN-HKG Aircraft Evaluations Figure: Boeing 767 family Range Capability Chart

18. Business model proven in the Trans-Atlantic market Applying this model on our market, avoiding Ozjet’s mistakes Profit of $21.1 million AUD (NS06, before interest and tax) Operating Ratio: 113.4%, Gross Profit Margin at 11.8% Breakeven SF (66.9%); PAX SF (75.9%) Aircraft Utilisation: 14.7 hrs per day Fleet Planning: Acquiring additional BBJ2s for new routes 2 x 767-200ERs for London to Hong Kong Summary