flyOAX

1. flyOAX.com The new Greek long-haul hybrid low-cost airline flyOAX.com

2. market opportunity to capture the market vacuum left by OA to serve the unfulfilled diaspora travel needs to stimulate untapped new travel segments flyOAX.com

3. market overview • shrinking OA abandons long-haul network • high fares in the market by remaining airlines are turning air travel into luxury priced service • no Greek airline flying intercontinental routes presently • Greek diaspora feels abandoned as historical ties to the motherland are severed abruptly • ethnic traffic is expected to support a new Greek airline offering fair prices and “value-for-money” level of service • Intercontinental markets never stimulated by low fares flyOAX.com

4. general market overview • global recession resulted in dramatic traffic declines and airline capacity constriction • economic crisis unfolding currently in Greece, impacted traffic demand significantly • in times of economic malaise, low-cost carrier sector performs better than traditional airline sector • historical low aircraft lease rates (A340 monthly lease rate c.$200k from $500k a couple of years ago) • A true long-haul low-cost airline in Europe not existing… still flyOAX.com

5. company concept Capitalize on the market gap opportunity while Maintaining technical legacy of the brand but re-launching service offering flyOAX.com

6. market size analysis • historical traffic levels at 150,000 passengers/year on OA alone ¹ United States Census Bureau (2008)² General Secretariat of Greeks Abroad (2004)³ General Secretariat of Greeks Abroad (2004) flyOAX.com

7. competition analysis • limited or no nonstop services • US market is served nonstop year round by only one US airline. • Two more US airlines operate seasonal service (summer only) • No year-round nonstop flights to Canada • No nonstop flights to S. Africa nor SE Asia • only legacy carriers as long haul operators • no charter, nor LCC presence • high fares in the market • no Greek-based long haul airline flyOAX.com

8. Dependent on high yield passengers, a shrinking market Highly exposed to economic downturns Influential Trade Unions Various aircraft types, mostly old aircraft Complex organizational structure and slow adapting Dependent on transfer traffic (competing with strong network carriers) Advantage on FFPs and distribution through travel agents Moderate service standards High-cost base Highly exposed to economic downturns Influential Trade Unions Complex organizational structure and slow adapting Multiple aircraft types Dependent on transfer traffic (competing with strong network carriers) Advantage on FFPsand distribution through travel agents Competitor Analysis Delta Airlines Star Alliance and BA flyOAX.com

9. market niche • filling in the market vacuum after OA abandoned several long-haul routes • providing low fares on the most popular long-haul destinations from/to Greece • becoming the first true long-haul low-cost carrier in Europe • becoming the only Greek long-haul airline • Fill in gap existing in the European long-haul charter / ACMI market opportunistically flyOAX.com

10. OAX concept • a start up airline set up to fill in the big void in long-haul services from/to Greece; and widebody charter / ACMI market • truly long-haul low-cost Greek carrier • no frills • initially based in Athens • operating a fleet of ex-OA A340s • sustainable and risk-free business model – scheduled trans-Atlantic ‘ethnic’ routes; scheduled services to seasonal leisure destinations; both inbound & outbound travel; charter & ad-hoc ACMI services e.g. Hajj flights, military flights; cargo services flyOAX.com

11. OAX advantages • lowest cost base • lowest but money making fares • commercial and operational simplicity – no frills • Greek related but at the same time market-neutral • using OA planes, pilots and mechanics the new airline - while making a fresh start - will be a natural claimant of OA’s technical and operational reputation and will inherit the brand loyalty flyOAX.com

12. OAX target market • ethnic market & VFR segment • Greeks living in the US, Canada and South Africa • inbound leisure market to Greece • outbound leisure market from Greece – sold via tour operators on hard-block basis, and direct to the public • business traffic, SMEs initially in US market and later in China market • charter and ad-hoc ACMI services on long-haul aircraft on opportunistic basis, e.g. Hajj flights, highly demanded military flights to Afghanistan and Iraq flyOAX.com

13. OAX aircraft choice • A340-300 ex-OA aircraft • very high safety record - no fatal incidents flyOAX.com

14. OAX network *seasonal flyOAX.com

15. OAX pricing policy • low-cost pricing policy • very attractive starting fares to • stimulate market and • siphon off traffic from high-fare legacy carriers • the earlier the ticket is booked, the lower the price • no fuel surcharges • no frills • non-refundable fares but upgradable and changeable for a fee • general pricing strategy: match the fares of connecting carriers and always be 30-40% lower than nonstop competitors flyOAX.com

16. OAX ancillary revenues • strong focus on ancillary revenues • keeping fares 40% below non-stop competitors • making up the difference on • optional services (baggage, seat assignment, catering) • affiliate services (hotels, hostels, car hire, airport transfers, insurance) • advertising (in-flight magazine, aircraft livery, overhead bins, trays) • sales (in-flight duty-free) flyOAX.com

17. OAX ancillary revenues • providing choices to the guests as everybody is different flyOAX.com ¹ based on advance purchase and demand* net revenue / commission on sale

18. OAX marketing positioning • truly Greek long-haul low-cost airline • online / e-commerce brand = .com • domain name already secured • modern & fresh brand that is linked to Greece but at the same time is market neutral • flyOAX.com • fly – reference to the airline business • OA – drawing on the legacy of Olympic Airlines brand • X – eXtended, long-haul flights (e.g. AirAsiaX) • .com – reference to the key point of sale - flyOAX.com flyOAX.com

19. Growth Strategy • OAX plans to establish itself as a sustainable competitor by the first three years of services • After the 4th year introduction of new aircrafts will be considered as well as network expansion • The latter shall be directed towards China, Brazil and Singapore • Cooperation with low cost (short-haul) carriers in OAX’s destinations will be strongly encouraged in order to create “feeding traffic” and achieve economies of density. • JFK with JetBlue • Canada with WestJet • SE Asia with Tiger and JetStar flyOAX.com

20. financial projections Almost break-even in first year Op. margin 5% in second full operating year flyOAX.com

21. key performance indicators flyOAX.com

22. profit & loss projections flyOAX.com

23. Summary of OAX business model • OAX will act as the successor of former Olympic Airways on its long-haul routes • Business model: Low Cost (no-frills), Low Fare airline • Demand stimulation • Fares at 30% discount from legacy nonstop competitors • Simple fare structure and ticket purchasing procedure • Focus on ancillary revenues (menu priced service offering) • Single aircraft type (A340) • Economy and limited “Premium” class configuration (e.g. AirAsiaX) • e-commerce and social media potential to be fully capitalized • Interline feeding at both origin and destination • Mission: evolve into the best Value For Money Airline flyOAX.com