GLOBAL AIRLINES

1. ADNAN BRKIC KAREN GUAN BHUPINDER KAUR CANDICE ZHOU GLOBAL AIRLINES

2. AGENDA INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

3. AIRLINE INDUSTRY OVERVIEW THE INTERNATIONAL AIRLINE INDUSTRY PROVIDES SERVICE FOR BOTH PASSAGENERS AND GOODS TO EVERY CORNER OF THE WORLD.IT IS A MAJOR ECONOMIC FORCE INFLUENCES BOTH THE RELATED INDUSTRIES SUCH AS TOURISM, AIRCRAFT MANUFACTURE AND INDIVIDUALS WHO TRAVEL BY AIR. INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

4. AIRLINE CATEGORIES INTERNATIONAL NATIONAL REGIONAL CARGO INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

5. AIRLINE ALLIANCES INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

6. COST STRUCTURE • FUEL COST • 15-35% OF TOTAL COSTS • LABOUR • 40% OF TOTAL COSTS • DEPRECIATION & AMMORTIZATION • MAINTENANCE • FOOD/BEVERAGES/SUPPLIES • COMMUNICATIONS AND INFORMATION TECH • AIRCRAFT FINANCING INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

7. OTHER FACTORS INFLUENCING COSTS INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

8. INDUSTRY PROFITABILITY INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

9. FACTORS DECREASE AIRLINE FARES AND REVENUES COMPETITIVE PRESSURE FROM LOW-COST CARRIERS THE LOSS OF CONSUMER CONFIDENCE IN THE AIR TRANSPORTATION SYSTEM’S RELIABILITY AND OPERATING PERFORMANCE, THE TRANSPARENCY OF PRICING FACILITATED BY THE INTERNET AND ONLINE TRAVEL DISTRIBUTION CHANNELS INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

10. LOAD FACTOR INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

11. PASSENGER AND CARGO STATISTICS INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

12. MAJOR RISKS INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

13. OPERATIONAL RISKS INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES OPERATIONAL RISKS ARISE FROM THE MORE TACTICAL ASPECTS OF RUNNING THE BUSINESS DAY-TO-DAY • ORGANIZATIONAL SOLUTIONS • REDESIGN THE PROCESS • ORGANIZATION STRUCTURAL CHANGES • IMPROVED COMMUNICATION • PERFORMANCE MEASUREMENT • REWARD SYSTEMS • CAPITAL ALLOCATION

14. STRATEGIC RISKS INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES STRATEGIC RISKS ARE DEFINED BY BUSINESS DESIGN CHOICES AND HOW THESE INTERACT WITH VARIOUS EXTERNAL FACTORS. EG: SHIFTS INCUSTOMER TASTES INDUSTRY CONSOLIDATION • SOLUTIONS • THROUGH THE SELECTION OF THE BUSINESS DESIGN ITSELF. • TRADITIONA RESPONSES • CREATING A CULTURE FOCUSED ON CUSTOMER • DEVELOPING A RIGOROUS STRATEGIC PLANNING PROCESS • MAINTAINING AN INDEPENDENT BOARD OF DIRECTORS

15. SOUTHWEST AIRLINES INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

16. COMPANY OVERVIEW INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

17. SOUTHWEST AIRLINES “THE MISSION OF SOUTHWEST AIRLINES IS DEDICATION TO THE HIGHEST QUALITY OF CUSTOMER SERVICE DELIVERED WITH A SENSE OF WARMTH, FRIENDINESS, INDIVIDUAL PRIDE, AND COMPANY SPIRIT.” MISSION STATEMENT INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

18. FINANCIALS INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

19. INCOME STATEMENT INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

20. QUARTERLY INCOME STATEMENT INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

21. QUARTERLY INCOME STATEMENT INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

22. QUARTERLY INCOME STATEMENT INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

23. BALANCE SHEET INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

24. BALANCE SHEET INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

25. QUARTERLY BALANCE SHEET INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

26. QUARTERLY BALANCE SHEET INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

27. QUARTERLY BALANCE SHEET INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

28. QUARTERLY BALANCE SHEET INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

29. QUARTERLY BALANCE SHEET INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

30. QUARTERLY CASH FLOW INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

31. CASH FLOW INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

32. QUARTERLY CASH FLOW INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

33. QUARTERLY CASH FLOW INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

34. QUARTERLY CASH FLOW INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

35. GENERAL RISK FACTORS INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

36. RISK MANAGEMENT POLICY • FIRM USES DERIVATIVE INSTRUMENTS TO MITIGATE THE RISK OF JET FUEL PRICE INCREASES • TO REDUCE VOLATILITY IN OPERATING EXPENSES FIRM USES A FUEL HEDGING PROGRAM INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

37. HEDGING GOVERNANCE STRUCTURE INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

38. RISK MANAGEMENT COMMITTEE • AUDIT COMMITTEE CHARTER DEALS WITH RISK MANAGEMENT • DISCUSSES THE FIRM’S MAJOR FINANCIAL RISK EXPOSURES • EVALUATES THE FIRM’S RISK ASSESSMENT AND RISK MANAGEMENT POLICIES • ANALYSES THE MANAGEMENT’S INITIATIVE TO MONITOR, CONTROL, OR MITIGATE SUCH EXPOSURES INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

39. TYPES OF RISKS INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

40. JET FUEL EXPENSE INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

41. JET FUEL EXPENSE FOR THE SEVEN CONSECUTIVE YEARS, FUEL AND OIL EXPENSE REPRESENTED THE COMPANY’S LARGEST OR SECOND LARGEST COST. INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

42. FUEL PRICE RISK • HIGH DEPENDENCY ON FUEL • UNPREDICTABLE AND UNCONTROLLABLE PRICE MOVEMENTS • LIMITED ABILITY TO PASS ON HIGHER FUEL COST TO CUSTOMERS INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

43. FUEL HEDGING • NOT WIDELY TRADED ON FUTURES EXCHANGES INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

44. FUEL HEDGING • NOT WIDELY TRADED ON FUTURES EXCHANGES • SOUTHWEST USES CROSS-HEDGES IN THE OTC MARKET ON THE FOLLOWING: • CRUDE OIL • HEATING OIL • UNLEADED GASOLINE INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

45. DERIVATIVES USED • CALL OPTIONS • COLLARS (BUY CALL OPTION, WRITE PUT OPTION) • CALL SPREADS (BUY CALL OPTION AND WRITE CALL OPTION) • SWAP AGREEMENT INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

46. FUEL HEDGING POLICY • WHEN SOUTHWEST PERCEIVES THAT PRICES ARE LOWER THAN HISTORICAL OR EXPECTED FUTURE LEVELS, THEY PREFER TO USE FIXED PRICE SWAP AGREEMENTS AND PURCHASED CALL OPTIONS. • HOWEVER, AT TIMES WHEN THEY PERCEIVE THAT PURCHASED CALL OPTIONS HAVE BECOME TOO EXPENSIVE, THEY CHOOSE TO USE MORE COLLAR STRUCTURES AND CALL SPREADS. INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

47. DERIVATIVES SOUTHWEST FUEL DERIVATIVE CONTRACTS AS OF OCTOBER 17, 2011 INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

48. DERIVATIVES SOUTHWEST FUEL DERIVATIVE CONTRACTS AS OF OCTOBER 17, 2011 INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

49. DERIVATIVES THE LOCATION OF ALL ASSETS AND LIABILITIES ASSOCIATED WITH THE COMPANY’S HEDGING INSTRUMENTS INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES

50. INTEREST RATE HEDGING THE FLOATING RATES RECOGNIZED DURING 2010, BASED ON ACTUAL AND FORWARD RATES AT DECEMBER 31, 2010, UNDER THE COMPANY’S FIXED-TO-FLOATING INTEREST RATE AGREEMENTS INDUSTRY OVERVIEW SOUTHWEST AIRLINES SINGAPORE AIRLINES