1. EDS and the EDS logo are registered trademarks of Electronic Data Systems Corporation. EDS is an equal opportunity employer and values the diversity of its people. © 2004 Electronic Data Systems Corporation. All rights reserved. Driving Agility: In a Rapidly Changing Industry Jim Dullum Vice President, US Transportation Industry

2. Page 2 © 2004 Electronic Data Systems Corporation. All rights reserved. Agenda EDS Transportation Presence Airline Industry Trends and Directions Creating the Agile Airline The Challenge

3. Page 3 © 2004 Electronic Data Systems Corporation. All rights reserved. EDS Transportation Presence

4. Page 4 © 2004 Electronic Data Systems Corporation. All rights reserved. EDS: A Global Company Leading global services company More than 130,000 employees in 60 countries Revenues of $21.5 billion 45% of revenue from outside U.S. Ranked 87th on the Fortune 500

5. Page 5 © 2004 Electronic Data Systems Corporation. All rights reserved. Deep Knowledge of Global Industries GovernmentTransportation Consumer Industries & Retail Communications Energy Financial Services ManufacturingHealthcare EDS brings solutions to clients in each industry

6. Page 6 © 2004 Electronic Data Systems Corporation. All rights reserved. EDS US Transportation Market Segments Air Services Freight, Logistics & Rail Travel & Hospitality Hotel Cruise Vehicle Rental Gaming Tour Operator 300+ Clients in 60+ Countries Airlines Air Cargo Airports Air Service Suppliers Rail Trucking Ocean Container Courier Third Party Logistics (3PL) Distribution (CRS, GDS, TA) Passenger Rail/Mass Transit

7. Page 7 © 2004 Electronic Data Systems Corporation. All rights reserved. EDS US Air Services Environment 435 million passenger transactions per year Res Systems, Departure Control, Fare Pricing, Flight Ops 30 year old, dual use, expert-user core systems 150M messages/day 9 processors 1,328 MIPS 3.2 Terabytes 330M messages/day 24 processors 20,211 MIPS 45 Terabytes Tulsa Charlotte Sabre Multi-Host Clients (52) Other SHARES B Clients (8)

8. Page 8 © 2004 Electronic Data Systems Corporation. All rights reserved. Airline Industry Trends and Directions

9. Page 9 © 2004 Electronic Data Systems Corporation. All rights reserved. Key Airline Challenges Air Services Sector Overview Cash flow and liquidity Asset utilization and total cost of operations Regulation on passenger, staff and facility security Yield erosion Distribution effectiveness Alliance synergies Recovery is fragile Growth of LCC’s; share from Network and other LCC’s Permanent yield shift, despite business travel recovery Cost reduction and cash flow emphasis Fleet rationalization; Regional jets Growth of Alliances Air Service Trends

10. Page 10 © 2004 Electronic Data Systems Corporation. All rights reserved. US Airline Industry Earnings Since 1960 Source: Eclat Consulting; Arlington, Virginia

11. Page 11 © 2004 Electronic Data Systems Corporation. All rights reserved. Industry Yield has Declined at an Unprecedented Rate Source: Air Transportation Association Eclat Consulting; Arlington, Virginia

12. Page 12 © 2004 Electronic Data Systems Corporation. All rights reserved. The Rise of Low Cost Carriers Source: Eclat Consulting; Arlington, Virginia

13. Page 13 © 2004 Electronic Data Systems Corporation. All rights reserved. Brief Review of Industry Changes 2000-2003 Source: Eclat Consulting; Arlington, Virginia

14. Page 14 © 2004 Electronic Data Systems Corporation. All rights reserved. Unprofitable Network Carriers versus Profitable LCCs Source: Eclat Consulting; Arlington, Virginia

15. Page 15 © 2004 Electronic Data Systems Corporation. All rights reserved. The Network Carrier Costs Remain Substantially Higher Than Those of the LCCs Source: Eclat Consulting; Arlington, Virginia

16. Page 16 © 2004 Electronic Data Systems Corporation. All rights reserved. Network Carrier Costs Remain Substantially Higher Than Those of the LCCs Source: Eclat Consulting; Arlington, Virginia

17. Page 17 © 2004 Electronic Data Systems Corporation. All rights reserved. Worldwide RJ Departures Source: Eclat Consulting; Arlington, Virginia

18. Page 18 © 2004 Electronic Data Systems Corporation. All rights reserved. RJ % of Fleet Operations – The Americas Source: Eclat Consulting; Arlington, Virginia

19. Page 19 © 2004 Electronic Data Systems Corporation. All rights reserved. Great Pressure to Perform, Compete, Grow Source: BTS Form 41 (Traffic), T-100 (Market) Consequence: Reduce Complexity- Industry moves from TPF environment? Airline Industry Trends -20 0 20 40 60 80 100 120 1999200020012002 Revenue $ (Trillions) 0 50 100 150 200 250 Passengers (Trillions) Passenger Service Operating RevenuesOperating ProfitPassengers

20. Page 20 © 2004 Electronic Data Systems Corporation. All rights reserved. Creating the Agile Airline

21. Page 21 © 2004 Electronic Data Systems Corporation. All rights reserved. What is Agility?

22. Page 22 © 2004 Electronic Data Systems Corporation. All rights reserved. What is Agility? Visibility Velocity Flexibility Quality Efficiency

23. Page 23 © 2004 Electronic Data Systems Corporation. All rights reserved. Focus on Recovery Fundamentals Today’s extraordinary times place a dominant focus on Cash and Customers, reshaping airline priorities… CXO Agenda CashGrowthMarginsVelocityROICustomers Scale operating costs to revenue Maintain liquidity Manage working capital “Re-stimulate” traffic, create and fulfill demand Restore public confidence Provide safe operating environment

24. Page 24 © 2004 Electronic Data Systems Corporation. All rights reserved. Reshaping Airline Priorities StabilizeTheBusinessSecureTheBusinessRebuildTheBusiness Financial restructuring and aggressive cash management Operational effectiveness, network rationalization and improving operating performance Designing and implementing new passenger security measures Market responsiveness with network strategy, alliances, fleet planning Position key recovery technologies with reservations, CRM, flight operations and MROPosition key recovery technologies with reservations, CRM, flight operations and MRO Position mid/long-term deployment of comprehensive biometric- based security solutions The future can be in enabling the Agile Airline with TPF

25. Page 25 © 2004 Electronic Data Systems Corporation. All rights reserved. Driving Down Costs Through Re-platforming Steady-State Platform Comparison MainframeNSKHybrid Environment Per Message Cost Data Processing Costs Variable cost per simple pricing message NSK represents an > 80% improvement over mainframe Hybrid represents a > 90% improvement over mainframe Midrange Source: Craig Murphy, Senior VP and Chief Technology Officer, Sabre Holdings 2003 Sabre Holdings Corporation. All right reserved.

26. Page 26 © 2004 Electronic Data Systems Corporation. All rights reserved. Most Global 2000 companies have a journey to make as the IT profession matures EVENTS Sense Response EVENTS Sense Response EVENTS Sense Response Mfg/Dist/Sales Back Office Procurement Marketing EVENTS Sense Response Leverage Centralized data management Simplified end-to-end business processes Highly scalable, secure network Application renewal skills Surge capable capacity Enabling integration platform IT program and process management skills Building an Agile Enterprise MULTI- YEAR JOURNEY H H L Speed Demand Event Supply Event

27. Page 27 © 2004 Electronic Data Systems Corporation. All rights reserved. Agile Airline Global Secure Network Services Tools Hardware Carriers Security Agile Infrastructure Edge Compute & Storage Network Security Tools Agile Infrastructure Edge Compute Storage Security Tools Agile Applications Composite Solutions Business Applications Application Capabilities Development Integration Global Secure Network Airline Business Processes Finance/Admin New Services Flight/Tech Ops Passenger Services Alliances

28. Page 28 © 2004 Electronic Data Systems Corporation. All rights reserved. Funding the Investment CXO/CIO challenge — reduce fixed costs in order to fund higher value activities Fixed Variable Development Maintenance Infrastructure 100% Cost Reductions Development

29. Page 29 © 2004 Electronic Data Systems Corporation. All rights reserved. The Challenge

30. Page 30 © 2004 Electronic Data Systems Corporation. All rights reserved. Your Challenge How is this community going to extend TPF to speed up the transformation and create the Agile Airline?

31. EDS Confidential – Do Not Distribute EDS and the EDS logo are registered trademarks of Electronic Data Systems Corporation. EDS is an equal opportunity employer and values the diversity of its people. © 2004 Electronic Data Systems Corporation. All rights reserved. EDS Confidential – Do Not Distribute eds.com