Tom Crabtree Boeing Commercial Airplanes 17 November 2006 Tom Crabtree Boeing Commercial Airplanes 17 November 2006 Historic & Future Air Cargo Markets of Southwest Asia, India & the World

2005 Air Freight Growth by Major Market World 2.0% North America-2.4% Europe – North America 1.4% Asia – North America 1.3% North America - Latin America -2.6% Europe – Asia 9.0% Intra-Asia 6.3% Domestic China 12.2%

Growth in Major Air Cargo Markets Was Curbed Primarily Owing to High Jet Fuel Prices Monthly percentage of change over prior year Average spot jet fuel price, cents per gallon

World Air Cargo Grew 3.7% for Jan – Aug 2006 Relative to Traffic Levels for Jan - Aug 2005 Year-Over Comparison World Annualized Air Cargo Growth by Regional Market Jan.- Aug vs. Jan.- Aug. 2005: 3.7% 3.8% 4.7% 3.4% -3.5% 3.3% 6.9% 3.5% 1.1% -1.7% Sources: U.S. Department of Commerce, AAPA, AEA, ATA and the Boeing World Cargo Forecast.

Europe is Southwest Asia's Primary Air Trade Partner Estimate for million tonnes

Scheduled International Indian Air Cargo Traffic Expanded 7.7% per Year From 2000 to 2005 Source: Statistical Division of the Director General of Civil Aviation, India Financial Year Metric tons (tonnes) enplaned, thousands

Europe, Far East Asia and the Middle East Comprise the Three Largest Scheduled Cargo Traffic Flows Source: Statistical Division of the Director General of Civil Aviation, India, Financial Year data Europe to India: / 4.1% India to Europe : / 3.5% Metric tons (tonnes) enplaned, thousands & historic five-year growth rate, percentage Middle East to India: 46.2 / 13% India to the Middle East: / 6.8% India to Far East Asia: 91.9 / 9.7% Far East Asia to India: / 16.7% Note: Non-Scheduled (charter) and sea-air traffic NOT included.

Domestic Indian Air Cargo Traffic Will Rapidly Expand at 9.1% per Year, Albeit from a Small Base History Forecast Average annual growth, 2005 to 2025 High10.0% Base9.1% Low8.1% Tonnes, thousands 12.5% growth per year High Base Low The size of the Indian domestic air freight market in 2005 was estimated to be 265,000 tonnes. Leading air domestic air freight airports in terms of tonnage were: Mumbai: 140,800 Delhi:109,600 Banglore: 53,600 Kolkata: 41,100 Chennai: 37,900

World Air Cargo Traffic Will Triple Over the Next 20 Years HistoryForecast Average annual growth, 2005 to 2025 High6.9% Base6.1% Low5.3% 5.1% growth per year RTKs, billions High Base Low

Asia’s Cargo Markets Will Continue to Lead Industry Growth… Growth, percentage World Average, 6.1%

… and Increase Their Share of World Cargo Share of world total market, RTKs percentage Europe- Asia Europe - North America Latin America- Europe Europe - Africa Domestic China Intra- Europe

Widebody Freighter Fleet Growth Has Accelerated Number of freighter airplanes

Freighter Fleet Is Grouped Into Size Categories BAe C DC-9*DC-8* 737* *MD-80/-90 A320* Standard-body (< 45 tonnes) Medium widebody ( tonnes) Large (> 75 tonnes) DC-10-30/40 MD-11 A * A * DC A300* A330 A310* A350 L * Represents a series

Widebody Freighters Dominate the Future Fleet ,563 freighters ,789 freighters Standard-body (<45 tonnes) Medium Widebody (40-75 tonnes) Large (>75 tonnes)

The Percentage of New to Converted Freighters Added to the Fleet Varies by Size Category 1,140 converted 522 new 480 converted 597 converted 244 new Large 1,002 total Medium Widebody 841 Total Standard-body 1,140 total Total 2983 Units (2,217 Converted, 766 New) Standard-body (<45 tonnes) Medium widebody (40-75 tonnes) Large (>75 tonnes)

While North America Predominates in Total Freighter Deliveries, Asia Will Receive the Most Large Freighters Number of airplanes * Includes Southwest Asia

Boeing Freighters: Superior Solutions for Every Airline Business Model

Historic & Future Air Cargo Markets of Southwest Asia, India & the World Summary The world freighter fleet will nearly double to 3563 aircraft by 2025, led primarily by widebodies. Markets connected to Southwest Asia will expand at roughly 6% to 6.5% per year; domestic India will expand 9.1% per year through While growth has been hesitant in 2005 and 2006, world air cargo traffic levels will triple over the next two decades.