Passenger to Freighter Conversion

1. Fabien Bonavita Services Marketing Project Presentation 23 February 2006 Passenger to Freighter Conversion

2. A constantly growing market 7% p.a. growth over the last 30 years vs. 4.4% for pax traffic 3,139 freighters to be delivered till 2023 including 2,412 conversions

3. Stretching the marketing proposal Many volunteering players but not in contact Integration of the full service stretches the customer relationship Aircraft purchase Passengers Aircraft Conversion cycle Passengers Aircraft AircraftManufacturer Airlines Aircraft Manufacturer Airlines Lessors Lessors Independant site Banks Banks

4. The best actor to profit more? Many potential actors but few winners for this Marketing Strategy Consultant Can work with various players including competitors Requires capital ifwants to trade Difficulty to providecapital and trade Conversion plant Very different fromthe core business Difficulty to link allthese people Intensive capital activity No particular benefit Banks At the term of financeleases, title to the aircraftusually passes to theoperatorNo asset managementusually necessary(except default) Speculativeand risky investment Not core business Operating lessor` Stretches offer Ability to offer variousproductsLimited to aircraftin fleet Service allows clearingof the market andincrease of sales And younger fleet From a product lifecycle to a servicelife cycle Manufacturer Stretches the offer Provides seemlessto customers Service allows clearingof the market andincrease of salesand younger fleet From a product lifecycle to a servicelife cycle

5. Targeting the right customers Fully reliable and affordable solutions for freighter operators Disposal of recent aircraft for passengers airlines CombinationAirlines Cargo airlines Contract airlines Integrators/ forwaders

6. The value added Integration of the full service stretches the customer relationship • An approach adapted to each type of airline Segmentation is wider, through more targeted Change from a “product life cycle” to a “service life cycle” • Pax airlines buy a more liquid aircraft, access to a younger fleet, • Operators gain access to affordable reliable cargo aircraft Satisfaction is linked to the new solution where loyalty is increased