1. Emerging Air Cargo Scenario in India January 2008

2. 2 Emerging Air Cargo Scenario in India Tracks & Traces of the Vibrant Dynamics in India Traits & Trends of the Air Cargo Scenario Risk Factors and Road Blocks Now it’s Time to Move Mini commercial on Jet Airways and its expansion plans

3. 3 Tracks & Traces of the Vibrant Dynamics in India Population and Demographics Population growth is slowing Source: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001) % average annual growth 1901-19501.0 1951-19802.2 1981-19902.1 1991-20001.8 2001-20101.5

4. 4 Tracks & Traces of the Vibrant Dynamics in India Population and Demographics Literacy is rising Source: Censes of India (2001) % 195017 199052 200065 2010 (proj)80

5. 5 Tracks & Traces of the Vibrant Dynamics in India GDP Rising GDP growth Source: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001), 2000-2005 Finance Ministry % average annual GDP growth 1900-19501.0 1950-19803.5 1980-20026.0 2002-20068.0

6. 6 Tracks & Traces of the Vibrant Dynamics in India GDP Source: CII

7. 7 Traits and Trends of the Air Cargo Scenario India’s Air Import & Export Source: CII

8. 8 Traits and Trends of the Air Cargo Scenario India’s Air Import & Export

9. 9 Traits and Trends of the Air Cargo Scenario Perishable Market Profile

10. 10 Traits and Trends of the Air Cargo Scenario Perishable Market Profile

11. 11 Traits and Trends of the Air Cargo Scenario Perishable Market Profile

12. 12 Risk Factors & Road Blocks Vibrant Private Space in India ＞ 100 Companies have market cap US$1 billion ＞ 1000 Companies have received foreign institutional investment ＞ 125 Fortune 500 Companies have R&D bases in India ＞ 390 Fortune 500 Companies have outsourced software development to India ＜ 2% bad loan in Indian banks (vs. 20% in China) ＞ 80% credit goes to private sector (vs. 10% in China)

13. 13 Risk Factors & Road Blocks Imperfect Public Space in India ＋ Dynamic democracy with honest elections ＋ Free, lively media and press － Poor governance － High populist subsidies → High fiscal deficit － Lack of money → Creaky infrastructure － Inefficient government companies Source: RB Roy Choudhury Memorial lecture

14. 14 Risk Factors & Road Blocks Key principles for managing risk in emerging markets Hedge risks that are not specific to the organization Beware the effect of decision-making Allow two-way communication with emerging market operations and be prepared to hear the truth Link risk management with performance assessment Structure risk approach to reflect the business model In general, manage risk at their source

15. 15 Risk Factors & Road Blocks However, the majority of risks fall into the “ it depends” category, for example: Pricing Fraud and corruption Market Currency Supply chain Compliance Tax

16. 16 Risk Factors & Road Blocks Geography & Main Logistics Flows All modes of transport suffer infrastructure deficiencies Geographic, cultural, political and economic barriers for infrastructure improvements Supply of Warehouse Capacity There is no present supply of warehouse in any of the metropolitan areas Only some emerging manufacturing and logistics clusters that are being developed by third party logistics services operations, etc…

17. 17 Now It’s Time to Move Time is now for India Cargo to improve airports, roads and in short infrastructure at the major meteors in the country Airlines, shippers, agents and local authorities need to work side by side and single voice Customers service still need to be improved in term of service after sales for which infrastructure is not needed and we all need to do our part

18. 18 Infrastructure and facilities requirement. Space. BOM,DEL,MAA,BLR,HYD,CCU. Time schedule. i. Truck turnaround. ii. Documentation & inspection. iii. Screening facilities. iv. Build and break. v. Acceptance and Delivery. Equipment & IT. i. Warehouse and ramp handling. ii. Interface with carriers and forwarders systems. iii. Real time status update. Support areas. i. Facilities to handle multi modal freight. ii. Improved and increased road network. iii. Effective Road Feeder Service to and from inland points. iv. Attitude of authorities.

19. 19 Progress on infrastructure. Up gradation of Mumbai and New Delhi. Green field airports at Bangalore and Hyderabad. Development of a cargo “HUB” at Nagpur. All projects - Joint Ventures with AAI & a consortium of Indian and International companies ( GVK/GMR/FRAPORT/ Zurich Airport Authority etc.) Presence of International Ground Handling Agents – SATS/ Menzies.

20. 20 Areas of concern. Time frame. Involvement of users – forwarders and carriers in the planned scale of operations. Increasing costs. Service level guarantee. Accessibility to the airports.

21. 21 Future Strategic Objectives Maintain leadership position in domestic market –Consistently to enhance product and service delivery –Reduce costs by further streamlining operations and emphasis on technological innovations –On-line sales to form 25% of total sales in the next 18 months –Improved connectivity of existing points and higher frequencies –Expand core business traveler/customer base Build leadership position in International markets –‘Raise the bar’ with our product and service –Develop international network as the ‘second pillar’ of our operations –Carry forward domestic structure, reliability and efficiency levels to international operations –Comprehensive route specific bilateral partnerships –Seamless “feed/de-feed” between domestic and international networks

22. 22 Fleet Plan No. of aircraft

23. 23 International Fleet Plan 10 B777-300ER between Apr 07 and Feb 08 –To be deployed on high-dense long haul routes – i.e. USA, and UK –3 Class product with 312 seats (8/30/274) 9 additional A330-200 between Jan 07 and Sep 08 –To be deployed mainly on medium-long haul routes – mainly Canada, South East Asia, Africa and Gulf routes –2 Class product with 220 seats (30/190) 2 additional B737-800s by Oct 07 –To be deployed on regional international routes to neighbouring countries and thin SE Asia and Gulf routes. –2 Class product with 150 seats (24/126) 10 B787 Dreamliner aircraft, deliveries by 2011

24. 24 9W Network Opportunities – Medium Term Target Market : Jet Airways Halfway between Europe and Australasia Halfway between Africa and Asia Ideal Cross road between Major Markets Supported by Huge Home Market

25. 25 USA / Canada / UK Network (by 2008) Widebody Network

26. 26 Asia/Africa Network (by 2008) Widebody Network

27. 27 Future International Route Network (by 2008) RouteFreq / wkA/C TypeRouteFreq / wkA/C Type BOM-LHR14B777ATQ-LHR6A330 DEL-LHR7B777BLR-BRU-YYZ7A330 BOM-BRU-EWR7B777BOM-HKG7A330 BOM-PVG-SFO7B777DEL-HKG7A330 DEL-BRU-JFK7B777BOM-NBO7A330 BOM-JNB7A330 BOM-DXB14A330 Additionally, regional international flights will also be operated with B737 aircraft DEL-DXB7A330 COK-DXB7A330 TRV-DXB7A330 HYD-DXB7A330 MAA-DXB7A330 BOM-AUH7A330 BOM-SIN7A330 MAA-SIN7A330 MAA-KUL7A330 DEL-BKK7A330 BOM-BKK7A330

28. Thank You