May Investor Presentation May 2008 Air Arabia PJSC

May Disclaimer Information contained in this presentation is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the company. Neither we nor our advisors make any representation regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein. In addition, the information contains projections and forward-looking statements that reflect the company’s current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and which may change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the company’s assumptions are correct. Actual results may differ materially from those projected. This presentation is strictly not to be distributed without the explicit consent of Company management under any circumstance.

May  Air Arabia at a Glance  Investment Highlights  Financial Highlights  Strategy and Outlook Agenda

May Highlights  A national carrier of the UAE… Established in 2003 by the Government of Sharjah  First and largest low-cost airline in the MENA region  5.03 billion RPK(1)  2.5x the number of passengers as its closest LCC rival(1)  Current fleet of 11 leased Airbus 320s  Network covering a total population of 1.7 billion, 37 destinations in 21 countries within the Subcontinent, MENA region and Central Asia  Broke even within the first full year of operations  Awarded “best low cost carrier in the Middle East” by Skytrax  Adel Ali, CEO was awarded the CEO of the year 2007 by Aviation Business Magazine  Started operations from second Hub in Nepal in Jan 08 (1) For Year Ending 31 December, 2007 Route Network – as of December 2007

May Passenger and Aircraft Growth Total Passengers and Load Factor Geographic Distribution Fleet Size Number of Destinations

May Investment Highlights  Highly favorable home and regional market dynamics  Strong air traffic growth projected in our target regions  Low Cost Carrier (LCC) model highly untapped in the Middle East  First mover advantage  Highly profitable Low Cost Carrier business model  Continue to drive costs lower through operational efficiencies  Consistently achieved the highest level of aircraft utilization in the A320 family  Cost-effective distribution network and booking system  Drive growth through an aggressive expansion plan  Significant route and fleet expansion planned, supported by Sharjah Airport expansion  Track record of profitable expansion  Started operations from second hub in Nepal in Jan 08 and plans for third hub through 2008  Support from the Sharjah and UAE Government  Experienced management team

May Highly Favorable Home and Regional Market Dynamics International Air Traffic Growth by Key Route AreaMiddle East Passenger Traffic (1) Source: Airbus  Strong Air Traffic Growth Projected in Our Target Regions (1) Airbus Estimate; based on number of passengers of the top 20 airlines in the Middle East

May Highly Favorable Home and Regional Market Dynamics LCC Penetration - Middle East (2) Europe (1) Source: IBM Business Consulting Services North America LCC Penetration – Proven Markets – 2005A (1)  GCC countries, particularly UAE, have a significant expatriate population from the Indian Subcontinent, Egypt and the Levant (80% of UAE population is expatriate)  Low Cost Carrier (LCC) Model Highly Untapped in the Middle East ( 2) Source: Air Arabia – 2005A: based on number of passengers of Air Arabia and Jazeera Airways (1.2m; Source: respective company websites) as a percentage of total passenger traffic in the Middle East (148m; Source: Zawya.com). 2005A 2008E – Air Arabia Estimate

May Highly Profitable Low Cost Carrier Business Model (Q3/07)

May Highly Profitable Low Cost Carrier Business Model 12% Y-o-Y Growth Revenue/Passenger – Q Vs. Q Cost/Passenger – Q Vs. Q % Y-o-Y Increase 5% Y-o-Y Increase Cost/Passenger – Excluding fuel  Continue to Drive Costs Lower Through Operational Efficiencies

May Highly Profitable Low Cost Carrier Business Model Source: Airbus YTD we have achieved a flying time per aircraft of over 14 hours per day with more than 99% reliability * *Data indicated for Q Avg. A320  Consistently Achieved the Highest Level of Aircraft Utilization in the A320 Family

May Drive Growth Through an Aggressive Expansion Plan We currently serve only 38 out of the potential 200 airports within 5-hours flying radius  Significant Route and Fleet Expansion Planned, Supported by Sharjah Airport Expansion 5 Hour Flying Radius (Sharjah Hub)

May Drive Growth Through an Aggressive Expansion Plan # of Destinations vs. Net Profit Margin Breakeven Load Factor vs. Actual Load Factor *  Track Record of Profitable Expansion (1) Two destinations added in October; Net income excluding interest on IPO funds Months to

May Experienced Management Team

May Historical Financial Performance RevenuesGross Profit EBITDARNet Profit

May Operating Statistics