Central Europe’s First Low Cost Airline

1. SkyEurope Airlines Central Europe’sFirst Low Cost Airline November 2004

2. Disclaimer • All statements contained in this presentation that are not statements of historical facts, including statements on projected operating results, financial position, business strategy and other plans and objectives for future results, constitute forward-looking statements and are prediction of, or indicate, future events and future trends which do not relate to historical matters. • No person should rely on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in many cases, beyond SkyEurope Airlines’ control and may cause its actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by the forward-looking statements and from past results, performance or achievements. • These forward-looking statements are made as of the Date of this presentation and are not intended to give any assurance as to future results. None of SkyEurope Airlines, its employee and representatives assume any obligation to update these statements.

3. Krakow Central Europe Specificities • 8 Central European countries and75 million inhabitants joined the EU on 1 May 2004 • Strong economic growth triggered by removal of borders • Lack of competitive ground transportation • Lack of affordable air transport

4. SkyEurope Concept • Started in Bratislava because: • Gap in the market: no schedule airline in Slovakia after Czechoslovak separation • Proximity to Vienna (only 50 km) making Bratislava the“Stansted Airport” of Vienna • As a low-cost airline operating from a low cost country, SkyEurope benefits from a competitive cost structure • Business development strategy: • „Connecting the dots“ in a multi-base network – instead of a traditional airlines’ hub-and-spoke network • Base in Budapest since November 2003 • Base in Warsaw since May 2004 and in Krakow since September 2004 • Additional bases planned in Central & Eastern Europe

5. What Low Cost Means • Simplicity: point-to-point connection, no-frills (lounges, newspaper) • Light structure: subcontracting of handling, catering, heavy maintenance • Intensive use of technology to maximize efficiency (reservation, payment, ticketing, etc.) • Low cost means high quality of maintenance and training according to latest EU standards (JAR OPS 1 and JAR 145) to allow high aircraft utilization • Low costs enable an airline to offer low fares, and stimulate the market growth, by attracting new air passengers previously traveling by car, bus or train.

6. Founders & Management • Alain Skowronek • EBA Express (Belgium):first lowcost airline in Europe; • Strategic sale to Virgin Expressin 1996; IPO in 1997; • Former General Manager of City Bird Airlines. • Christian Mandl • EU-related projects in Central & Eastern Europe; • Business Development consultancy in Bratislava.

7. Investors European equity funds of: and private Central European investors

8. SkyEurope Milestones • Founded in 2001 • 3rd year of operation • 4 bases in Hungary, Slovakia and Poland • Fleet of 13 aircraft • 19 destinations • 35 routes • 12 countries • Close to 1 mil. passengers

9. Bratislava Scheduled Passengers Growth over the period Jan.-Apr. 2003/2004 • SkyEurope is responsible for 83% of the growth • 141% growth of Bratislava scheduled passengers volumes • 271% growth of SkyEurope passengers volumes

10. SkyEurope Market Share at Bratislava

11. Low Cost Production Basis Source: Raymond James’ Growth Airlines Outlook 2004.

12. High Productivity Source: Raymond James’ Growth Airlines Outlook 2004.

13. Fleet development

14. SkyEurope’s advantages • SkyEurope benefits from: • Operating in a low cost country • First mover advantage: 3 years of experience in Central Europe • Recognised brand • Multi-base network • Presence not only on East-West but also on East-East traffic • Strong financial backing

15. Human resources in Sky • Who is SkyEurope employee? • Dynamic individual • English speaker • Creative thinker • Initiative and responsible • Part of the story of building first low fare airline in Central Europe • Team player working in international environment • Cost conscious • Usually graduate from University or with few years experience • Career opportunities seeker • Fun lover

16. Why SkyEurope Airlines is a “company to work for”? • “SkyUniversity” • “SkySpirit” • “SkyBenefits”

17. „SkyUniversity“ • Hire for attitude and skills more than for experience. We look for Excellence. • For many people, SkyEurope is a “University” as they learn something new (different than cut/paste from previous job). • SkyUniversity means giving opportunity to people even with long working experience but not in the position they have been hired for. • SkyUniversity means also that most of these newcomers do not have previous experience in the aviation neither. • SkyUniversity means as well giving opportunity to the current employees to be internally promoted, to try their skills in different position than the one they joined in. • SkyUniversity means on-job internal training of all employees. • SkyUniversity means low - cost remuneration of all „trainees“ based on productivity and results • Added value for employee: unique chance to have responsibility, to learn, to benefit from internal accelerated promotion philosophy, to gain experience and have fun

18. „SkySpirit“ • Dynamic international environment of a young non-traditional airline • „KISS concept“ = „Keep it simple and smart“ philosophy • Having fun • Regular company social employees events rotating in bases • Working together to share and achieve the company vision • Finding new and creative solutions in all company fields

19. „SkyBenefits“ • Great opportunity to improve language skills while working in multinational environment • Employees standby private travel {applicable for employee qualified family members} • Internal Promotion policy • Internal Mobility among bases • Additional bonuses provided according to the announced teams targets achievements • Performance based remuneration • Social fund use for various activities in terms of relax, free time, culture; life events contribution • Tatrabanka advantages package

20. SkyEmployees in numbers • SkyEurope Airlines currently employs up to 600 employees in all its bases • SkyEurope Airlines already employs about 32 employees (17 pilots) Of Zilina University graduates in following positions: • Flight Operations Manager • Pilots • Operations Control Center Manager • Flight dispatchers • Operations supervisors in our OCC • Ground operations coordinators • Navigation officer • Flight performance officer • Crew planners • Crew controllers • Flight dispatcher assistants • Assistant Flight Operations Manager • Cabin attendants

21. Booking • All destinations from €25:“the earlier you book, the better the price” • www.skyeurope.com • Online flight booking • Online car rentals and hotels booking • European Call Centre accessible through local numbers • Reservation agents communicating in 8 languages(English / French / German / Italian / Hungarian / Slovak / Czech / Polish) • Travel agencies • For corporate customers and ministries • Internet booking tool

22. First Low Cost Airline to CarryHis Holiness Pope John Paul II

23. Boeing 737 – “Adriana”

24. Boeing - Miss Europe from HU

25. Quote from “The Economist” Although Wizz Air claims that its base in densely populated Katowice will pay off, it may struggle to stimulate demand among still hard-up Poles, or to lure British and Italian passengers to drab Silesia. SkyEurope, with its first-mover advantage, is the likeliest to succeed. With low costs and ample slots at its base in Slovakia, which forfeited its national airline after splitting from the Czech Republic in 1993, it markets Bratislava as a secondary airport for nearby Vienna, allowing it to tap into demand for low-fare services from wealthier Austrians. As Christian Mandl, SkyEurope's Belgian chief executive, puts it, “We have the best of both worlds.” “SkyEurope, with its first-mover advantage, is the likeliest to succeed.” 15 May 2004 - The Economist

26. Contact SkyEurope Airlines Ivanska cesta 26 P.O. Box 24 820 01 Bratislava 21 Slovakia Phone: +421 2 4850 1111 Fax: +421 2 4850 1000 Chairman: alain.skowronek@skyeurope.com CEO: christian.mandl@skyeurope.com CFO: juraj.koman@skyeurope.com COO: graham.williamson@skyeurope.com FOM: peter.svec@skyeurope.com Investor Relations Manager: jaroslav.sopuch@skyeurope.com

27. Thank you