TITLE NAME Air Cargo Opportunities in India Preston Murray Chief Executive Officer National Air Cargo

2 - Air Cargo India 2010 National Air Cargo  Freight Forwarder and Cargo Airline  Core Competencies  Four Rings of Market Focus  India Market Aspirations  emerging opportunities bolstered by growing U.S.-India strategic partnership 2

3 - Air Cargo India India Air Cargo Growth  India market rebounding with double digit growth in October 2009  Domestic cargo growing faster than international since January 2009 Indian Air Cargo Growth Source: Airports Authority of India, Monthly Traffic News

4 - Air Cargo India 2010 Annual Totals 4 International Air Cargo Volume  Current recovery since January 2009 has brought volumes back to within 2% of historical peak International Cargo Recovery Source: Airports Authority of India, Monthly Traffic News YE 9/2006YE 9/2007YE 9/2008 1,097,4471,186,7971,148,328 (Nov-Oct)

5 - Air Cargo India 2010 Annual Totals Domestic Air Cargo Volume  Domestic cargo at historically highest volume  Domestic volumes approaching 60% of international volumes Domestic Cargo Boom Source: Airports Authority of India, Monthly Traffic News 5 557,600568,846598,014 (Nov-Oct) YE 9/2006YE 9/2007YE 9/2008

6 - Air Cargo India India International Trade Profile Petroleum oils ($22.8 bil) Diamonds ($13.3 bil) Precious metal/Articles of jewelry ($5.0 bil) Top Exports Petroleum oils ($54.0 bil) Gold ($17.2 bil) Diamonds ($8.4 bil) Top Imports United States (12.3%) UAE (9.4%) China (9.3%) Top Export Countries China (11.1%) Saudi Arabia (7.5%) United States (6.6%) Top Import Countries Source: CIA Country Factbook & Comtrade UN  Diamond, precious metals and jewelry are top candidates for air cargo

7 - Air Cargo India India the Next China? Source: CIA Country Factbook & Comtrade UN Data processing units ($112.2 bil) Radio transmission apparatus ($46.8 bil) Machine parts & accessories ($32.7 bil) Top Exports Electronic circuits ($128.8 bil) Petroleum oils, crude ($79.8 bil) Liquid crystal devices ($45.3 bil) Top Imports United States (17.7%) Hong Kong (13.3%) Japan (8.1%) Top Export Countries Japan (13.3%) South Korea (9.9%) United States (7.2%) Top Import Countries China International Trade Profile  China’s top imports/exports are high value items benefiting from air cargo

8 - Air Cargo India  Average GDP growth over 7% past decade  Net exports grew over 24% in 2008  Net imports grew over 36% in 2008 India Market Strengths  International growth at 6.8% per year through 2013  Domestic growth at 9.9% per year through 2013 Strong economic growth Strong growth forecasts for air cargo

9 - Air Cargo India  Lack of proper infrastructure is a roadblock to efficient cargo handling  Cargo warehousing  Multi-modal links for local distribution  Regulatory and foreign ownership issues  Foreign ownership capped at 74% in cargo air carriers  Foreign airlines may have no ownership in airlines India Market Weaknesses

10 - Air Cargo India India Market Opportunities Creation of cargo villages Creation for greenfield airports with cargo focus Government allows 100% FDI in greenfield airports Leverage foreign & domestic expertise in new ways Foreign investment in non- scheduled and charter operations, support services such as ground handling and maintenance Lagging infrastructure creates many partnership & investment opportunities

11 - Air Cargo India  Slow global economic recovery  Uneven economic recovery  Global recovery led by India, China and Asian economies  Fuel price volatility  Terrorism  Protectionism in developed countries India Market Threats

12 - Air Cargo India  Key strategic partner with common interests to U.S.  Nuclear non-proliferation  Counter-terrorism  Military cooperation and joint exercises  Central Asia stability and Afghanistan reconstruction  Military sales and support  Modernization  Life-cycle support  Long-term industrial partnership  Substantial air cargo implications  Integrating India into global supply-chain U.S. – India Strategic Partnership

13 - Air Cargo India  Emerging Opportunities  Military sales and support  Nuclear and electric power generation equipment  Oil exploration rigs and drills  Earth moving and construction equipment  Afghanistan reconstruction and other humanitarian efforts  Foreign ownership limit in Indian carriers implies need for Indian JV partner to participate in Domestic market growth National in India

TITLE NAME Thank You Preston Murray Chief Executive Officer National Air Cargo