1. Air Cargo Air Cargo IndiaJuly 2009 2.

Executive Summary

by pharma, textiles fashion goods, telecom, IT hardware, gems Market and machinery parts . 5060 % of all cargo is transported as belly cargo in domestic airlines . International operations expected to grow at 12% p.a. while domestic operations expected to grow at 10% p.a. Drivers Challenges Challenges Strong macroeconomic fundamentals Rising air traffic fuel (ATF) prices Drivers & Growth in retail Growing congestion at airports Challenges Development of transportation system Delays in cargo handling & clearance Growth in clearing and forwarding agents .Changing FDI policy to attract investors . Introduction of the Open Sky policy Initiatives .Various bilateral agreements . Large scale investment to develop infrastructural capabilities Large scale investment to develop infrastructural capabilities . Many domestic and international players have entered the market in order to capitalize on the growing opportunities Competition Domestic Players Jet Airways Alliance Air Go Air Blue Dart International Players British Airways World Cargo Cathay Pacific Lufthansa Cargo UPS AIR CARGO INDIA 3. IntroductionMarket OverviewDrivers & Challenges i & Ch llGovernment InitiativesCompetitionKey Developments Key Developments AIR CARGO INDIA .PPT 3 4. Air cargo accounts for a large fraction of goods traded internationally with India dominating in the subcontinent Aviation Industry Support Airlines Aerospace Services Ground Design and Design and Passenger Cargo Training Catering MRO Handling Manufacture.International air cargo market is pegged at USD 50 bn (2009).Transportation via air accounts for 35% of the value of goods traded India accounts for 1% of internationally y an estimated 27 mn tonnes global air freight .India has the leading international freight market among countries in market the subcontinent AIR CARGO 5. IntroductionMarket OverviewDrivers & Challenges i & Ch llGovernment InitiativesCompetitionKey Developments Key Developments AIR CARGO INDIA .PPT 5 6. Air cargo traffic in India has been growing due to strong domestic demand and rising international tradeOverview Market Size and GrowthAir cargo market is estimated to grow at 20% p.a. and reach INR 133 bn by 201112 INR bnLargely dominated by pharmaceuticals, textiles 150 +20% 133 111 fashion goods, telecom (like mobiles), IT 93 100 hardware, gems and machinery parts which are 64 77 time critical 505060 % of all cargo is transported as belly 50 60 % of all cargo is transported as belly cargo in domestic airlines 0 200708 0809e 0910e 1011e 1112eGrowth Rate of Modes of Transportation Cargo Traffic 000 tonnes Air Import Cargo 21.5% Domestic 2,000 International 1,736 1,560 Ports (cargo) 12.5% 1,500 1,404 1,280 34% 1,069 1 069 34% Air cargo observed 979 34% Railway (freight) 8.2% 1,000 854 36% the highest growth 34% 35% 34% Air Export Cargo 6.7% in the cargo 500 66% 66% 64% 66% transportation 66% 66% 65% sector (200708) 0 2001-02 02-03 03-04 04-05 0506 06-07 07-08 AIR CARGO INDIA .PPT 6

7. Market is expected to witness growth in the future with large contributions from the international marketsInternational Operations Air Trade PartnersInternational cargo traffic is expected to grow Others at a faster rate than the domestic market North America 4% 18% EuropeExports outweighed imports by ratio of 1.8:1 33% in total tonnageEurope is the leading international destination for air articles, general West Asia industry machinery, electrical machinery and telecommunication equipment

000 tonnes +10%North American market 2,000 outweigh air imports by 3 to 1,151 1 in overall tonnage 1,000 708 780 860 584 643 0 200708 0809e 0910e 1011e 1112e AIR CARGO INDIA .PPT 7 8. Cargo Terminals: InternationalLocation: ChennaiOverview Cargo TrafficEstablished Feb 1, 1978 Feb 1 1978 ExportArea 51877.5 sq. m. Import 000 MTExport Wing 300 +13% 227 218Covered Area 15257 sq. m. 194 200 146 167 47% 48%Build up Stations 10 manual 106 119 51% 93 56% 53% 100 59% 57% 59% 53% 52% 3 wide bodied aircrafts with ULD 43% 44% 47% 49%Cargo Apron Capacity 41% 41% parking area, hydrant refueling setup 0 2001-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09Import WingImport WingCovered Area 5684 sq. m. Infrastructure and DevelopmentsPerishable Cargo Facility 3 airport terminals with one dedicated to cargo flights; equipped with modern cargo handlers such as Total Area 445 sq. m. forklifts and power hydraulic pallet trucks. forklifts and power hydraulic pallet trucks. o oCold Chambers 2, 44 sq. m. each, 0 4 C expected to span over 41,655 Examination: 135 sq. m., 12 18 C sq. m. and Phase 1 has been commissioned Other Sections Work Station: 89 sq. m.,7 ton capacity o Receiving Area: 45 sq. m., 15 18 Receiving Area: 45 sq m 15 18 C o Expansion of the airport is expected and is going to be constructed in Sriperumbudur taluk at an investment of INR 23.5 bn AIR CARGO INDIA .PPT 8 9. Cargo Terminals: InternationalLocation: DelhiOverview Cargo TrafficEstablished May 1, 1986 May 1, 1986 ExportArea 27 acres ImportExport Wing 000 MT +9%Covered Area 17, 500 sq. m. 400 272 272 301 297 300 237Build up Stations 6 mechanized with 24 build up points 197 203 200 167 62% 58% 55% 57% 66% 62% 6 wide bodied aircrafts with ULD 100 69% 70%Cargo Apron Capacity 45% 43% parking area and hydrant refueling 31% 30% 34% 38% 38% 42% 0Import Wing 2001-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09Covered Area 18,786 sq. m. Infrastructure and DevelopmentsDisposal Warehouse elevating transfer vehicles (ETV) with 3 level stacker Perishable Cargo FacilityPerishable Cargo Facility positions (350 slots) iti (350 l t )Total Area 1127 sq. m. Modern cargo handling equipment o 3, space 480 cub. m., Temp. capacity 12 aircraft pallets Celebi, a Turkish establishment, has undertaken the o Examination Area: 2024 cub. m., 16 Examination Area: 2024 cub m 16 C project for modernization of the airport in order to project for modernization of the airport in order toOther Sections o ETV Corridor: 996 cub. m., 16 C accommodate the growing cargo traffic AIR CARGO INDIA .PPT 9 10. Cargo Terminals: International Location: KolkataOverview Cargo TrafficEstablished October 5, 1975 October 5, 1975 ExportArea 9993 sq. m. ImportExport Wing 000 MT +7%Covered Area 2,600 sq. m. 40

39 40 35 30 31Holding Capacity 258 M.T. 25 26 25 48% 54% 51% 20 63% 61%Import Wing 64% 65% 64% 49% 53% 46% 36% 35% 36% 37% 39%Covered Area 7,250 sq. m. 0 2001-02 02-03 03-04 04-05 05-06 0607 07-08 08-09Holding Capacity g p y 725 M.T. Perishable Cargo Facility Infrastructure and DevelopmentsTotal Area 43.8 sq. m. The facility has an annual holding capacity37,120 MT o o A Drug 1.6 2.6 C 2 parking bays exclusively for freighter fleet o oCold ChambersCold Chambers B Vegetables and fruits 7.2 8 8 B Vegetables and fruits 7 2 8.8 C A t Automatic loading and unloading of cargo ti l di d l di f o o C Meat () 1.5 C (ASRS) for Walkincooler: space 62 sq. m. , loading cargo planes Other Sections o o temp 0 15 C, capacity Modernization of the airport is underway and will cost INR 16.02 and is to be completed by May 2011 AIR CARGO INDIA .PPT 10 11. Cargo Terminals: International Location: MumbaiOverview Cargo TrafficEstablished 1977 ExportArea 1,08,684.11 sq. m. ImportExport Wing 000 MT +10%Covered Area 25120 sq. m. 373 377 400 327 273 288Build up Stations 5 300 199 223 233 55% 58% 57% 200 64% 62% 59% 66% 65% 5 wide bodied aircrafts with ULD 100 45% 42%Cargo Apron Capacity 34% 35% 36% 38% 41% 43% Parking area & hydrant refueling 0Import Wing 2001-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09Covered Area 50,766.87 sq. m. Infrastructure and DevelopmentsPerishable Cargo Facility o Semimechanized terminal in India 14: Capacity 7.2 MT, Temp. 2 CCold Chambers o 5: Capacity 3.6 MT, Temp. ()20 C Capacity 32.4 MT, Processing of export general and perishable cargo Other Sections o o clearance Storage & processing of light import cargo and heavy Storage & processing of light import cargo and heavy import cargo AIR CARGO INDIA .PPT 11 12. Cargo Terminals: Domestic Owned & operated by AAI Cold Storage Volume of Cargo (in MT) Airport Commissioned Area Facility 200607 200708 200809Nagpur 1997 1800 sq. m. No 190 371 472 2 rooms for Export / Import Guwahati September 1999 No 98 20 7 cargo. 2 rooms for customs staff June 2000 June 2000Lucknow 4 rooms admeasuring 150 sq. m. Yes 224 242 81Coimbatore December 2001 878 sq. m. Yes 3198 3476 3280Amritsar 2007 2304 sq. m. Yes NA 579 1058Indore 2007 322 sq. m. 322 sq m No NA 884 1566 AAI plans on developing a cargo terminal in Patna, located outside the airport, which will span 1.5 acres through a joint venture with Bihar Industrial Area Development Authority AIR CARGO INDIA .PPT 12 13. Cargo Terminals: DomesticOwned & Operated by State Government Undertaking Owned & Operated by Others Airport Area Operator Airport OperatorAhmedabad 3000 GSEC Goa Central Warehousing Corporation Rajasthan Small Industries Cochin NAJaipur 724 Corporation Srinagar Indian AirlinesVaranasi 8800 UP State Export Corporation Jammu Indian Airlines Maharashtra State Pune 799 Bangalore International Airport Bangalore International Airport Agricultural Marketing Board Bangalore Limited JV: Kerala State Industrial Calicut NA Hyderabad International Airport Enterprises & Export Trml Hyderabad Limited State Warehousing Kanpur NA Amritsar Central Warehousing Corporation Central Warehousing Corporation Corporation C i Andhra Pradesh State Vishakapatnam NA Trading CorporationBhubaneshwar NA Customs Kerala State Industrial Trivandrum NA Enterprises Port Blair NA NA AIR CARGO INDIA .PPT 13

14. IntroductionMarket OverviewDrivers & Challenges i & Ch llGovernment InitiativesCompetitionKey Developments Key Developments AIR CARGO INDIA .PPT 14 15. Drivers and challenges Challenges Drivers Di Rising Air Traffic Fuel (ATF) Prices Strong Macroeconomic Fundamentals Growing Congestion at Airports Growth in Retail Delays in Cargo Handling & Clearance Development of Transportation System Growth in Clearing and Forwarding Agents AIR CARGO INDIA .PPT 15 16. Strong macroeconomic fundamentals driving the demand for air cargo servicesStrong macroeconomic fundamentals Impact Economic growth has increased purchasing power significantly across all consumer groups, creating one of the largest consumer groups globally EXIM trade Industrial Production Index Base: 199394 = 100 INR bn 400 00 Basic Goods8,000 Export Capital Goods Import Consumer Goods6,000 300 Intermediate Goods IPI4,000 2002,000 100 0 2001 2002 2003 2004 2005 2006 2007 2008 2001 2002 2003 2004 2005 2006 2007 2008 AIR CARGO INDIA .PPT 16 17. Growth in organized retail coupled with the entry of large retailers is a major driver for the marketGrowth in retail Impact In order to support the large scale domestic demand for retail products, the international and domestic freight market is expected to grow strongly A substantial share of organized retail is transported as air freight which is estimated to increase with the entry of retail giants like WalMart, Carrefour, Reliance in the organized retail sector is expected to boost this segment The retail sector is expected to grow at 10% p.a. and reach USD 833 bn by 2011L l f i Level of investment, by 2012, is expected to reach USD 22 bn b 2012 i d h USD 22 b Organized retail, which is accounts for ~ 8% of the whole, is expected to grow to USD 64 billion by 2015 Total Retail Market Share of Organized Retail USD bn1,000 +10% % Growth of 833 organized retail is a 800 750 20 680 direct driver for air 620 cargo 600 511 562 15 400 10 200 5 0 0 2008 2009 2010 2011 2012 2013 2004 2005 2006 2007 2008 2009 2010 AIR CARGO INDIA .PPT 17 18. Improvement in the transportation network will support the growing air cargo industryDevelopment of transportation system ImpactGolden Quadrilateral and NSEW Road Corridor Dedicate Freight Corridors Route Map As part of road infrastructure development: Government has proposed two est and east towards highways g y which private sector participation is being sought which private sector laning 20, 000 km of National Highways This is expected to be beneficial for air cargo Roads are crucial for the development of air cargo segment as delays at port facilities, custom industry as it faster transportation of goods to the clearance will be reduced as goods can be designated airport from where it is exported across transported easily to an ICD/CFS p y / the globe or to another domestic destination AIR CARGO INDIA .PPT 18 19. Clearing and forwarding agents have made the transportation process highly efficient and cost effective Growth in clearing and forwarding agents Impact Emergence of clearing agents or freight forwarders has made the process of air transportation extremely efficient leading to direct costs benefits for players in the industry Clearing and forwarding agents fulfill the legal formalities of

transportation and as act as a consolidator of shipments The freight forwarders deliver most of air partner of the airlin while organizing chartered flights for shippers The freight forwarder organizes allcargo charter flights The integrators offer doortodoor services to shippers An integrator controls the sales channels and the transportation processes AIR CARGO INDIA .PPT 19 20. Rising prices of fuel, which accounts for a large fraction of the cost, is a major barrier in the market Air Traffic Fuel (ATF) prices Impact ATF accounts for ~ 45% of the operational costs of carriers Rise in fuel prices has led to large scale losses for companies in aviation sector Volatility in crude oil prices Fuel prices are USD/barrel +10% expected to see an 150 126 surge in 2009 52% (Source: Platts, 100 58 64 +97% 60 Bloomberg) Bl b ) 38 50 50 0 2004 2005 2006 2007 2008 2009 Multiple taxation by the Government leads to escalation in fuel prices Central Government State Government Total Government Levies Levies local sales tax Levies excise duty of 8% Escalates cost by 35% ranging from 439% Price of price comparison Mar 0740,000 36,100 21,272 20,779 20,874 21,70020,000 0 Bangkok Singapore Kuala Lumpur Sharjah India AIR CARGO INDIA .PPT 20 21. Congestion at airports has made air cargo transportation inefficientGrowing Congestion at airports Impact High growth in passenger traffic is creating a pressure on freight traffic Domestic Passenger Traffic International Passenger Traffic mn 200 +16% 151 150 +20% 126 105 100 87 73 61 54 40 46 50 30 35 26 0 200607 0708 0809 0910 1011 1112 Furthermore, this has led to large cost escalations due to the large quantities of fuel wasted as airplanes are unable to land due to the unavailability of a 2530% extra fuel which is tantamount to approximately ~ INR 1,00,000/hr Delhi and Mumbai airports are the extremely congested due to high growth in traffic levels AIR CARGO INDIA .PPT 21 22. Infrastructural shortcomings have led to delays in cargo handling and clearance leading to cost escalationsDelays in cargo handling & clearance Impact Issues with respect to cargo handling and

hours Dwell time for import and export cargo at Indian airports is between 37 days which compares port: Dwell time for export cargo is 4 hrs The been reduced to 72 hrs from five 5 Import cargo: Free time has been reduced to 72 hrs from five 5 AIR CARGO INDIA .PPT 22 23. IntroductionMarket OverviewDrivers & Challenges i & Ch llGovernment InitiativesCompetitionKey Developments Key Developments AIR CARGO INDIA .PPT 23 24. Government has taken various measures towards developing this segment by introducing major changes in the FDI policy Sector Policy Cargo and Non Hiked to 74% FDI from the initial permissible

rate of 49% scheduled Airlines Greenfield Airports FDI up to 100 % is permitted through automatic approvals FDI Policy FDI up to 74 % is permitted through automatic approvals and up Existing Airports to 100% with special permission from FIPB 49% FDI is allowed in domestic airlines under the automatic route (but not by foreign airline companies) Domestic Airlines 100% equity ownership by Non Resident Indians (NRIs) is permissible 100% FDI in maintenance, repair and overhaul (MRO) organizations, flying training institutes (FTIs) and helicopter Others services 100% tax exemption for airport projects for a period of 10 years in order to attract investors In order to develop the air cargo market, major emphasis has fallen on attracting large scale FDIs which the Government plans on achieving by implementing policies towards liberalization AIR CARGO INDIA .PPT 24 25. Open Sky policy forwarded by the government coupled with the various bilateral agreements has helped to develop the market The Government introduced the Open Sky policy for cargo in April 1990 Under this policy, any foreign airlines or association of exporters can bring freighters to Open Sky O Sk the country for cargo shipment h f hi Policy The "Open Sky" policy of the government and

connectivity y In order to maintain market competition the government has adopted a policy where market forces determine cargo tariff, with IATA rates as the floor rate In order to allow for greater connectivity between India and their trading partners across the globe, the Government entered into various bilateral agreements Bilateral Traffic rights were enhanced with 17 countries in 2008Agreements Significant changes came about in Air Services with Japan, China, Chile, Mexico, UAE India entering the WTO coupled with the signing of several ASEAN Free Trade Agreement will increase foreign trade, which in turn will drive demand for logistics industry upwards AIR CARGO INDIA .PPT 25 26. Government has planned various projects for the development of airport infrastructure on a pan India basis An additional 46 airports are expected to be operational airports by 2020, through large scale private investment Contracted Larsen & Toubro (L&T) to build a new integrated terminal at Mumbai at an Expansion plansExpansion plans investment of USD 1.36 bn expected to be operational by 2012 Plan on developing Nagpur as a cargo hub through large scale investments in infrastructure Mumbai and Delhi airports, which have been privatized, is expected to be upgraded at an estimated investment of USD 4 bn over 200616 Up gradation By 2011, 35 other airports are expected to be upgraded through a publicprivate plans partnership (PPP) at an investment of USD 357 mn AAI plans on investing a total sum of USD 3 07 bn towards upgrading airports and AAI plans on investing a total sum of USD 3.07 bn towards upgrading airports and modernizing the existing aeronautical facilities across India 43% of the amount being reserved for Kolkata, Chennai and Trivandrum Government has planned an investment of ~ USD 9 bn inorder to develop 10 greenfield airports under the 11th Plan period (200712) airports under the 11th Plan period (200712) Greenfield Private sector is expected to contribute ~ USD 5.92 bn Airports AAI is expected to invest USD 2.96 bn Bangalore facility is operational while the facility at Hyderabad is expected to be operational soon In Navi Mumbai, the second greenfield airport is expected to be developed via PPP at a total cost of USD 2.5 bn AIR CARGO INDIA .PPT 26

27. IntroductionMarket OverviewDrivers & Challenges i & Ch llGovernment InitiativesCompetitionKey Developments Key Developments AIR CARGO INDIA .PPT 27 28. Domestic Players (1/10)Company Snapshot: Air Sahara / Jet LiteCorporate Information Financial PerformanceHeadquarters New Delhi New Delhi Revenue Revenue ProfitFounded 1991 INR mn Profit / Loss INR mnFleet Size 25 30,000 0 0Parent Jet Airways 20,617 20,153 20,000 20 000 2 000 2,000 15,055 15 055Subsidiaries N.A.Key People Mr.Subrata Roy (Founder) 10,000 4,000 Mr. Naresh Goyal (Owner, Jet Airways) Mr. Gary Kingshott (CEO) 0 6,000 200506 0607 0708Business Highlights Operational Performance It expanded its operations by introducing new daily Average Weight Load Factor flights between DelhiSrinagar via Jammu and Tonnes/day Cargo Carried % MumbaiSrinagar g 70 61 56 80 60 54 53 Plans on introducing flights between DubaiNagpur as 50 48 60 Nagpur is expected to become a major logistic hub in 40 27 40 India 30 28 Cargo carried ranges from carriage of various 20 20 10 perishables, household pets, life saving drugs, 0 0 valuables and general goods 2001 02 0203 0304 0405 0506 0607 0708 AIR CARGO INDIA .PPT 28 29. Domestic Players (2/10)Company Snapshot: Alliance AirCorporate Information Financial PerformanceHeadquarters Mumbai Revenue Revenue R Profit INR mn Profit / Loss INR mnFounded 1996 8,000 0 0Fleet Size 20 6,536 6,000 5,533 200Parent Indian Airlines 3,803 3 803 400 400Subsidiaries N.A. 4,000 3,034 600Key People Mr. A.K. Goyal (MD) 2,000 800 0 1,000 200405 05 06 0607 0708Business Highlights Operational PerformanceStrong focus on the North East region Average Weight Load Factor Tonnes/day Cargo Carried %Expanded its network by encompassing 25 24 25 80 Chennai and Visakhapatnam Ch i d Vi kh 20 60 15 15 40 10 20 5 0 0 200506 0607 0708 AIR CARGO INDIA .PPT 29 30. Domestic Players (3/10)Company Snapshot: Go AirCorporate Information Financial PerformanceHeadquarters Mumbai Revenue Revenue R Profit fiFounded June 2004 INR mn Profit / Loss INR mnFleet Size 7 6,000 5,099 0 0Parent Wadia Group 4,000 3,483 1,000Subsidiaries N.A. 2,000 2,000Key People Mr. Edgardo Badiali (CEO) 384 Mr. Jeh Wadia (Managing Director) 0 3,000 Mr. GP Gupta (CFO) 200506 0607 0708Business Highlights Operational Performance Inducted two A320 (Mar 2009) to their fleet towards Average Weight Load Factor tapping in to the penetrate the Southern and Tonnes/day Cargo Carried % Northern Indian market while focussing on major g j 10 9 80 8 destinations such as Amritsar, Bangalore and 8 60 Chandigarh 6 40 Expanded its network by initiating flights to 4 Guwahati and Bagdogra from May 2009 20 2 1 Plans to scale up its fleet by 25 aircrafts in 2009 and 0 0 another 10 by 2011 200506 0607 0708 AIR CARGO INDIA .PPT 30 31. Domestic Players (4/10)Company Snapshot: Jet AirwaysCorporate Information Financial PerformanceHeadquarters Mumbai Revenue R Profit P fi RevenueFounded May 5, 1993 INR mn INR mn ProfitFleet Size 87 160,000 10,000 130,779Parent Tail Winds Limited 120,000 94,815 0 0Subsidiaries Jetlite and Jet Cargo 80,000 70,578 56,961 10,000Key People Naresh Goyal (Founder and Chairman) 40,000 Carl Saldanha (CFO) Wolfgang ProckSchauer ( CEO) 0 20,000 200506 0607 0708 08 09Business Highlights Operational Performance Plans on developing an independent air cargo unit at Average Weight Load Factor an investment of USD 15 mn Tonnes/day Cargo Carried % 400 385 80 It has interline agreements with 64 carriers for It has interline agreements with 64 carriers for 318 313

carriage of cargo to their destinations 300 271 60 Major network expansions in 2009 201 200 154 170 40 Domestic: Mumbai with Rajkot and Bengaluru; Delhi to Indore and Bhopal; Kolkata to Jorhat, Agartala,and 100 20 Guwahati; Guwahati Agartala; New Delhi to Srinagar 0 0 International: Dubai to Chennai; Mumbai to Kuwait 200102 0203 0304 0405 0506 0607 0708 AIR CARGO INDIA .PPT 31 32. Domestic Players (5/10)Company Snapshot: Kingfisher AirlinesCorporate Information Financial PerformanceHeadquarters Bangalore Revenue R Revenue ProfitFounded 9 May 2005 INR mn Profit INR mnFleet Size 86 30,000 26,875 0 0Parent United Breweries Group 20,000 15,085 15 085Subsidiaries Kingfisher Red 5,000Key People Dr. Vijay Mallya (Chairman & CEO) 10,000 4,250 Mr. A. Raghunathan (CFO) Mr. N. Srivatsa (Company Secretary) 0 10,000 200506 0607 0708Business Highlights Operational Performance Augmented its cargo services with the development Average Weight Load Factor of a dedicated cargo warehouse facility in Goa Tonnes/day Cargo Carried % 99 Tied up with IBS to implement its `iCargoNet solution Tied up with IBS to implement its iCargoNet solution 100 80 with nting and revenue optimization 0 0 functions 200506 0607 0708 AIR CARGO INDIA .PPT 32 33. Domestic Players (6/10)Company Snapshot: Blue Dart Express Ltd.Corporate Information Financial PerformanceHeadquarters Mumbai Revenue Revenue R Profit INR mn INR mnFounded 1983 Profit / Loss 9,825 10,000 8,118 800Fleet Size 7 8,000 6,698 600Parent DHL Group 6,000 4,227 400Subsidiaries Blue Dart Aviation 4,000Key People Mr. Sharad Upasani (Chairman ) 2,000 200 Mr. Anil Khanna (MD) 0 0 Mr. Malcolm Monteiro (Director) 2005 (Apr 2006 2007 2008 Dec)Business Highlights Introduced an innovative packaging solution Express Pallet Pallet is a unique, weatherresistant, safe, secure and affordable doortodoor packaging solution Invested USD 25 mn in order to develop oneofakind integrated terminal at the Bengaluru International Airport Invested USD 25 mn in order to develop oneofakind integrated terminal at the Bengaluru International Airport which has helped the company synergize the domestic and international express operations in South India Offers a domestic air payload of 300 tonnes/day Introduced Dart Apex 1200 a doortodoor delivery service for domestic shipments of 10 kgs and above Plans on investing INR 1 bn in 2009 towards developing its infrastructural capabilities Plans on investing INR 1 bn in 2009 towards developing its infrastructural capabilities Plans on developing 58 warehouses across India by 2010 for efficient movement of cargo AIR CARGO INDIA .PPT 33 34. Domestic Players (7/10)Company Snapshot: Indigo AirlinesCorporate Information Financial PerformanceHeadquarters GurgaonFounded 2005 Op. Revenue 2,162.8Fleet Size 20 Parent Interglobe Enterprises Op. Expenses 3,904.2Subsidiaries N.A. Profit/ Loss 1,741.3Key People Mr. Aditya Ghosh (President) Mr. Riyaz Peermohammed (CFO)Business Highlights Operates flights out of 17 new daily flights from Mumbai to Goa Hyderabad and Kolkata In Apr 2009, introduced 3 new daily flights KolkataGuwahati and BangaloreChennai sector Plans on expanding its network route by launching flights from Patna to Bangalore, Mumbai, Lucknow, Kolkata, and New Delhi Carried 3 tonnes of cargo/day in 200607 Carried 3 tonnes of cargo/day in 2006 07 AIR CARGO INDIA .PPT 34

35. Domestic Players (8/10)Company Snapshot: Paramount AirwaysCorporate Information Financial PerformanceHeadquarters Chennai Revenue Profit INR mn Revenue INR mnFounded 2005 Profit / Loss 4,000 400Fleet Size 5 2,550 2,680 200Parent Paramount Airways Paramount Airways 2,000Subsidiaries N.A. 0 0Key People Mr. Thiagarajan (CEO) 144 0 200 200506 2005 06 0607 06 07 0708 07 08Business Highlights Began operations in Feb, 2009 with Chennai as its hub Network coverage includes Chennai, Kolkata, Coimbatore, Madurai, Bangalore, Hyderabad, Thiruvananthapuram, Kochi, Vizag, Tiruchirapalli, Ahmedabad, Goa and Pune Kochi Vizag Tiruchirapalli Ahmedabad Goa and Pune Its freight service has an overall capacity of 100 tonnes/ day and is expected to reach 300 tonnes/day by 2010 This business venture is expected to contribute 1015% of the overall revenue It signed an MOU to buy 10 A321 aircraft, as it offers a containerized cargo system, in order to foray into the international market by providing services from south India international market by providing services from south India Provides doortodoor cargo services; Cargo division focussing on medical, horticulture and aqua culture goods AIR CARGO INDIA .PPT 35 36. Domestic Players (9/10)Company Snapshot: Spice JetCorporate Information Financial PerformanceHeadquarters New Delhi New Delhi Revenue Revenue Profit fiFounded May 2005 INR mn Profit / Loss INR mnFleet Size 19 15,000 12,949 0 0Parent Spice Jet 500 10,000 , 7,574Subsidiaries N.A. 1,000 5,000 3,419Key People Mr. Siddhant Sharma Chairman and CEO 1,500 Mr Peter Hill (COO) 0 2,000 Mr Gary Osborne (CFO) 200506 0607 0708Business Highlights Launched their cargo operations in May 2008; currently operates from 13 stations By 2009, they plan on generating 3% of their revenues from the cargo business Currently carries an average of 85 tonnes/ day while target capacity stands at 110 tonnes/ day Currently carries an average of 85 tonnes/ day while target capacity stands at 110 tonnes/ day Added Goa to their existing network of domestic cargo operations Automated their business by adopting newgeneration cargo management system iCargoLite allowing them to integrate management of cargo reservations and ground operations including flight planning inbound cargo operations, billing and shipment tracking operations billing and shipment tracking Plans to set up hanger facility by investing INR 150 mn; Plans to begin cargo operations from Guwahati & Bagdogra AIR CARGO INDIA .PPT 36 37. Domestic Players (10/10) Company Snapshot: Deccan 360Corporate Information Business HighlightsHeadquartersH d t Bangalore B l Service based on a hubandspoke model with Service based on a hub and spoke model with Nagpur, Hyderabad and Delhi serving as hubsFounded May 8, 2009 Signed a MOU with the GMR Group for setting up Fleet Size 11 express cargo operations at Delhi and HyderabadKey People Capt. GR Gopinath (Founder) Revenues expected to hit USD 450 mn by 2014 Mr. Jude Fonseka CEO Plans to begin international operations connecting Mr D.P. Hemanth (COO) India with the MiddleEast and SouthEast Asia Mr G.K. Raman (CFO)Recent Players Player Business Highlights Hyderabadbased air cargo company invested USD 945 mn in order to purchase four Boeing Flyington 777200 freighter aircraft to expand operationsFreighters Plans` to carry out cargo operations to China, the Middle East, the US and Europe y g p , , pAryan Cargo New Delhibased company plans to enter the market looking at the strong opportunitiesExpress Forayed into the air cargo space with flights to Mumbai, Delhi and ChennaiFirst Flight Couriers Invest INR 1 bn in 2008 to set up an integrated logistics services division offering warehousing, g Invest INR 1 bn in 2008 to set up

an integrated logistics services division offering warehousing, inventory management, supply chain and distribution services AIR CARGO INDIA .PPT 37 38. International Players (1/2) Player Business Highlights British Airways Its network encompasses Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, World Cargo Pune and Cochin

and he Kalimpong flowers and mica Cathay Pacific It operates through offices in Mumbai, Delhi, Chennai and Bangalore along with group company Dragonair It operates on the DelhiHong Kong sector twice a day, and 10 flights a week from Mumbai to Hong Kong Hong Kong Partnered with NIIT for IT solutions for cargo ground handling operations in the Bangalore International Airport Etihad Crystal Currently operates in Cochin, Trivandrum, Mumbai and New Delhi Cargo Expanding their network by adding daily flights to Chennai and Kozhikode p g y g y g Plans on securing traffic rights to Ahmedebad, Amritsar, Hyderabad and Bangalore AIR CARGO INDIA .PPT 38 39. International Players (1/2) Player Business Highlights Lufthansa Cargo Plans on expanding their operations in India through partnerships with leading domestic players BBegan new flights to Hyderabad as it allows the company to enhance their position in India as fli h H d b d i ll h h h i i i i I di well as cater to South East Asia and Middle East, Europe and USA. This has made them the first airline to offer a freighter service to the south Indian metropolis Planning to enter a partnership with Chinas Jade Airlines to transport cargo from China to India Signed a 10 year contract with Deccan to organize their cargo fleet as well as warehousing and g y g g g MRO (maintenance, repair and overhaul) services UPS Set up an operational facility at the cargo terminal of Indira Gandhi International Airport in New Delhi Launched a special shipping programme, UPS Express Saver Service from India to various destinations across the world d ti ti th ld Tied up with AFL to provide extensive logistics services including branding and enhancing reachOther Major Players : Malaysia Airlines Cargo, Alitalia, Atlas Air, Cargolux, Emirates SkyCargo, Great Wall Airlines (China), Korean Air, Polar Air Cargo, Qatar Airways Cargo, Singapore Airlines Cargo AIR CARGO INDIA .PPT 39 40. IntroductionMarket OverviewDrivers & Challenges i & Ch llGovernment InitiativesCompetitionKey Developments Key Developments AIR CARGO INDIA .PPT 40 41. Key DevelopmentsDate DevelopmentJune 2009 Gujarat Agro Industries Corporation plans on commissioning an air cargo complex at Sardar Vallabhbhai Patel International Airport in Ahmedabad in the next 6 months. This plan has been forwarded in order to develop exports of perishable agro products to Gulf countries and European markets. An investment of d l t f i h bl d t t G lf ti dE k t A i t t f INR 70 mn is expected.June 2009 The old airport complex in visakhapatnam is expected to be converted into an air cargo complex at an investment of INR 950 mn. June 2009J 2009 Boeing has forecasted that the air cargo business to grow at an average annual rate of 5.4 per cent B i h f t d th t th i b i t t l t f54 t between 2009 and 2028. May 2009 DECCAN 360 plans on hiring 5000 staff by 201213 in order to develop its nascent air cargo operations.Mar 2009 A Centre for Perishable Cargo (CPC) was developed at the air cargo complex of the Cochin International Airport Ltd (CIAL) to improve the export of perishable

cargo. The centre is equipped with several facilities Airport Ltd (CIAL) to improve the export of perishable cargo The centre is equipped with several facilities such as temperature and humidity control, apart from three cold storages with a capacity of 30 tonnagesDec 2008 The cargo airport in Gwalior has been approved and is expected to be developed at an investment of INR 810 bn. AIR CARGO INDIA .PPT 41 42. Thank you for your timeFor an updated report or any customized research requirements, please contact:Gaurav KumarEMail: gaurav.kumar@netscribes.com; sales@netscribes.comPhone: +91 33 4064 6214; +91 983 030 9715Netscribes Services:RESEARCH & ANALYTICSRESEARCH & ANALYTICS MARKET INTELLIGENCE MARKET INTELLIGENCE CONTENT SOLUTIONS CONTENT SOLUTIONSInvestment Research Market Monitoring & Competitive Social Media MarketingEnterprise Market Research Intelligence Marcom Support ServicesPatent Research Sales & Prospect Intelligence Content Management ServicesSyndicated Market ResearchS di t d M k t R h Listening & Media Monitoring Li t i & M di M it i Book Packaging Services B kP k i S i Brand SurveillanceFor further details, visit us at: www.netscribes.comAbout NetscribesNetscribes supports the organic and inorganic growth objectives of global corporations through a combination of Enterprise Market, Investment & Patent Research, Market & Sales Intelligence, Social Media Monitoring & Management and Custom Publishing solution.Disclaimer: This report is published for general information only. High standards have been used for preparing this market research report; Disclaimer: This report is published for general information only High standards have been used for preparing this market research report;however, Netscribes, Inc. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. AIR CARGO INDIA .PPT 42