1. Creating Value Looking for Opportunities

2. Home Previous Next Help Introduction – Mia Maki Why this topic?

3. Home Previous Next Help Agenda Business models and opportunities in revenue Trends in aviation –Simulation training technology trend –Regulatory changes –Geographic changes Macro trends

4. Home Previous Next Help How much would you pay for this purse? Ebay Buy it Now CDN $112,000 HERMES BIRKIN 30CM HIMALAYAN WHITE CROCO SILVER Business models

5. Home Previous Next Help What about this ‘vintage’, pristine condition Hermes Birkin? Member Price US $4,800/month Value approximately US $42,000 Business models

6. Home Previous Next Help Revenue Models Streams –Single –Multiple Bundling (iFR ground school with simulator time) –Interdependent Razorblades –Loss leader Giving away ground school if the flying is done with the school Models –Volume or Unit- based Zipcar (rental pilot/general aviation 15% of revenues; block time at reduced rate; prepaid?) –Subscription or membership –Advertising –Licensing –Transaction fee

7. Home Previous Next Help Velotaxis – Revenue Model

8. Home Previous Next Help Revenue Models What about bundling opportunities? –Interdependent, e.g. razorblades Supplementary revenue models? –Subscription or membership Next generation target market (children) Creating communities of customers –Advertising Reaching customers? Reaching employees? –Licensing and/or merchandising?

9. Home Previous Next Help Simulation training technology trend Demand is driving down simulator costs from $tens of millions/millions to hundreds of thousands –What opportunities exist as a result of this trend? Newer and advanced technology with high fidelity graphics which are as effective for training as a full motion simulator Pricing? –How can your organization capitalize on this?

10. Home Previous Next Help Regulatory changes A few things to consider… –Jet transition rating (simulation access) –Multi-crew license (MCL or MPL) Must be an approved training organization (ATO certification, very robust, requires SMS with effective quality assurance elements) Gives an ATO latitude to provide alternative means of compliance –Partnering opportunities (domestic & international) –Worldwide attrition due to demographic shifts (retirements)

11. Home Previous Next Help Geographic and demographic changes Recent graduates and retention –How can you tap into that walking advertisement? (the ones that leave for good) –Domestic licenses have fallen substantially (skill shortage; opportunity for the right student to ‘get that job’) Fewer schools-fewer students trend How much more knowledgeable or sophisticated is the entering student compared to 10 years ago? Educate the student to be successful (not just technically)

12. Home Previous Next Help Geographic and demographic changes China –Long-term, hard to develop market –Limited current approval of North American schools (4 schools in Canada approved put of ~30 schools worldwide) One of our schools in Canada has the second highest number of students approved in the world (behind the US) for delivery of Chinese professional pilots (cadet or airline sponsored program)

13. Home Previous Next Help Geographic and demographic changes India –Funding from “The Global Opportunities for Associations (GOA)” (formerly PEMD) –Delegation just came over (follow on to March 2010 trip to India)

14. Home Previous Next Help Geographic and demographic changes India –What are the opportunities? Lifecycle? Initial round created a glut; downturn dampened economy; consolidation; ex-patriots 3,000 Indian pilots went off worldwide to get their training during the initial round; weren’t qualified enough when they returned for interviews –Commercial licenses – check –But it wasn’t enough…. Airlines have ramped up their requirements –Advanced training opportunities for these pilots –Need for more Commanders/First Officers with advanced decision-making skills and crew resource management skills (Canada is a leader)

15. Home Previous Next Help Macro trends Play –Volkswagen and the Fun Theory program –http://www.thefuntheory.com/http://www.thefuntheory.com/ –The piano staircase Would more people use the stairs? –World’s largest trash can –Changing behaviour with fun Implications for cost reductions? Productivity?

16. Home Previous Next Help Summary Business models and opportunities in revenue Trends in aviation –Simulation training technology trend –Regulatory changes –Geographic changes Macro trends

17. Creating Value Opportunities? Questions?