1. AIRSHIP MANUFACTURING Business Plan Daniela Chiriac October 31, 2008

2. Key Issues Market Summary Opportunities Business Concept Competition Financial Plan Risks and rewards

3. Market Summary Central and Eastern Europe countries are emerging markets, where innovative promoting means for a wide range of products and services are needed One of the most successful ways to advertise various companies’ products and services is by using an airship Rich people in these countries also look for new and exciting entertainment products Flying an airship is considered by some of them ‘the adventure of their lives’

4. Opportunities At present, there is no airship manufacturing company in the region In Romania, there are very good professionals (engineers, technicians etc.) in the aircraft building business Well trained aircraft pilots can be also licensed for airship test and/or commercial flights The airship factory can be easily located in Romania, with relatively low costs

5. Business Concept An airship, also known as a dirigible, is a powered lighter-than-air craft. In other words, an airship is an aircraft that derives its lift from a lifting gas (usually helium or hot air) while it is propelled forward by an engine. There are four categories of airships: –Rigid –Semi-Rigid –Non-Rigid –Hot Air Airships.

6. Business Concept Rigid Airships As their name implies, rigid airships have an internal frame. The rigid structure, traditionally an aluminum alloy, holds up the form of the airship. In general rigid airships are only efficient when longer than 120 Meters because a good weight to volume ratio is only achievable for large airships. For a small airship the solid frame would have been too heavy. There is hope that the use of composite materials will change this.

7. Business Concept Semi-rigid Airships Semi-rigid airships were more popular earlier this century. They usually comprise a rigid lower keel construction and a pressurized envelope above that. The rigid keel can be attached directly to the envelope or hung underneath it.

8. Business Concept Non-rigid Airships or Blimps Non-rigid airships, also known as Blimps, are the most common form nowadays. They are basically large gas balloons. Their shape is maintained by their internal overpressure. The only solid parts are the passenger car and the tail fins. All the airships currently flying for publicity use are of that type.

9. Business Concept Hot Air Airships Also known as thermal airships, hot air airships are counted as a fourth kind even though they are technically part of the non-rigid category. Hot air airships are derived from traditional hot air balloons. Early models were almost like balloons with an engine and tail fins added. Pretty soon envelopes were lengthened and the tail-fins and rudder were pressurized by air from the wash of the propeller. Newer hot air airships maintain their shape with internal overpressure in the whole envelope, a feature which older models did not have.

10. Business Concept The feasibility study that will be carried will determine which of these airship types better fit(s) the market needs, at the most competitive price(s) The market research will reveal the consumer behavior in this field and, consequently, the most appropriate way for marketing the selected airships The necessary resources for personnel, technology, marketing, finances etc. must be evaluated as well

11. Competition As mentioned before, the competitive advantage of the new airship manufacturing company is that, at present, there is no other similar company in the region Therefore, we have the chance to build the leader of an emergent large market

12. Financial Plan A high-level financial plan indicates that £ 5 million will be necessary for financing this project for an initial period of 3 years, as follows: - Research – £ 400, 000 - Development – £ 1,400,000 - Production - £ 2,800,000 - Marketing - £ 400,000 The expected annual sales for the first three years are: –Y1 – Sales £ 1,200,000 –Y2 – Sales £ 2,000,000 –Y3 – Sales £ 2,400,000

13. Risks and Rewards The main potential risk of the proposed project is related to the relatively high costs of manufacturing the airships, which will make them expensive products. Consequently, some difficulties might appear in selling them to the public and/or specialized advertising companies. However, this risk can be overcome by using the appropriate promoting channels and campaigns. In the meantime, the expected reward for the potential investors is significant: £ 600,000 profit at the end of the initial period of 3 years.

14. Questions? Thank you!