Air Cargo Opportunities in India

1. Air Cargo Opportunities in India Preston Murray Chief Executive Officer National Air Cargo

2. National Air Cargo Freight Forwarder and Cargo Airline Core Competencies Four Rings of Market Focus India Market Aspirations  emerging opportunities bolstered by growing U.S.-India strategic partnership

3. India Air Cargo Growth Indian Air Cargo Growth India Market Begins Rebound • India market rebounding with double digit growth in October 2009 • Domestic cargo growing faster than international since January 2009 Source: Airports Authority of India, Monthly Traffic News

4. International Air Cargo Volume 1,097,447 1,186,797 1,148,328 (Nov-Oct) YE 9/2006 YE 9/2007 YE 9/2008 • Current recovery since January 2009 has brought volumes back to within 2% of historical peak Source: Airports Authority of India, Monthly Traffic News

5. Domestic Air Cargo Volume 557,600 568,846 598,014 (Nov-Oct) YE 9/2006 YE 9/2007 YE 9/2008 • Domestic cargo at historically highest volume • Domestic volumes approaching 60% of international volumes Source: Airports Authority of India, Monthly Traffic News

6. India International Trade Profile • Diamond, precious metals and jewelry are top candidates for air cargo Source: CIA Country Factbook & Comtrade UN

7. India the Next China? China International Trade Profile • China’s top imports/exports are high value items benefiting from air cargo Source: CIA Country Factbook & Comtrade UN

8. India Market Strengths Strong economic growth • Average GDP growth over 7% past decade • Net exports grew over 24% in 2008 • Net imports grew over 36% in 2008 Strong growth forecasts for air cargo • International growth at 6.8% per year through 2013 • Domestic growth at 9.9% per year through 2013

9. India Market Weaknesses • Lack of proper infrastructure is a roadblock to efficient cargo handling • Cargo warehousing • Multi-modal links for local distribution • Regulatory and foreign ownership issues • Foreign ownership capped at 74% in cargo air carriers • Foreign airlines may have no ownership in airlines

10. India Market Opportunities Lagging infrastructure creates many partnership & investment opportunities

11. India Market Threats • Slow global economic recovery • Uneven economic recovery • Global recovery led by India, China and Asian economies • Fuel price volatility • Terrorism • Protectionism in developed countries

12. U.S. – India Strategic Partnership • Key strategic partner with common interests to U.S. • Nuclear non-proliferation • Counter-terrorism • Military cooperation and joint exercises • Central Asia stability and Afghanistan reconstruction • Military sales and support • Modernization • Life-cycle support • Long-term industrial partnership • Substantial air cargo implications • Integrating India into global supply-chain

13. National in India • Emerging Opportunities • Military sales and support • Nuclear and electric power generation equipment • Oil exploration rigs and drills • Earth moving and construction equipment • Afghanistan reconstruction and other humanitarian efforts • Foreign ownership limit in Indian carriers implies need for Indian JV partner to participate in Domestic market growth

14. Thank You Preston Murray Chief Executive Officer National Air Cargo