General Administration Civil Aviation in China (CAAC) Briefing Regional Airline Association Washington DC April 10, 2008

Regional airlines flew 159 million passengers in 2007 – 14,000 flights per day (50% of domestic schedule) – 23% of U.S. domestic passengers travel on regional airlines Regional airlines operate 40% of U.S. commercial airline fleet – 1782 regional jets – 1100 turboprop & piston aircraft 61,000 regional airline employees - 18% increase since U.S. airports served by regional airlines – 450 served only by regionals U.S. Regional Airlines at a Glance

About RAA Founded in 1975 Collaborative professional trade association of North American regional airlines based in Washington, DC. Serves U.S. regional airlines and the suppliers of products and services Represents regional airlines before U.S. Congress Federal Aviation Administration Department of Transportation Transportation Security Administration/Department of Homeland Security Environmental Protection Agency and other federal and state agencies. 42 Airline Members RAA member airlines transport 97% of all regional airline passengers. 315 suppliers of goods and services to regional airlines that participate as Associate Members

70% of US Served Only by Regionals

Regional Airline Trends Virtually all U.S. regional flying done in partnership with network airlines, with exceptions for some “branded” flying (i.e. ExpressJet) and point-to-point service on smaller a/c in specific regions, (i.e. Alaska, Hawaii, New England, Mountain West) Regional airline growth has flattened, projected to remain slow through 2008 Average seating capacity of the regional airline fleet has grown by 30% since 2002 to more than 51 seats per a/c Passengers flying on regional airlines increased by about 2.5% but the number of regional airline flights declined 3% from