Growth of Regional Aircraft in Africa

Presented By: Frédéric Morais Manager, Marketing & Analysis – International Bombardier Commercial Aircraft

40th AFRAA Annual General Assembly 24-25 November 2008 Forward Looking Statements

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All amounts are expressed in U.S. dollars unless otherwise indicated Proprietary The African Market Overview

The outlook for the African air transport market continues to improve due to positive commodity prices, growing tourism, and a more moderate political climate Four of the world‟s top 20 oil-producing nations are in Africa (Algeria, Angola, Libya, Nigeria) 150% growth in tourism, 120% growth in trade in last 15 years

In 2003-2007, Africa averaged year-over-year GDP growth of 5.2% Surpassed only by and GDP growth expected to exceed global average for the next 20 years

A growing market with huge future potential

Proprietary The African Market Projected GDP Growth Rates, 2007-2027

African GDP growth is expected to exceed the global average

Middle Latin North Asia World China India Africa Europe East America America Pacific (ex. China) Source: Global Insight

Proprietary The African Market Opportunities

Market liberalization and regulatory reforms are continuing More privately owned and low-cost carriers in operation Government-owned flag carrier privatizations and airline consolidation is under consideration Drive to implement African open-sky continues Intra-African routes are a largely untapped market with high potential Intra-African market currently less than 20% of continental market (versus more than 50% for North America) Air travel is an excellent alternative to ground transportation over vast distances and difficult terrain with poor road and rail infrastructure

Significant opportunities exist in the African market

Proprietary Requirements of the African Market Low Fuel Consumption

Large Old Turboprop 70 Seat Jet

Proprietary Requirements of the African Market Exceptional Hot & High Performance

Modern Large Turboprop 1,011 nm (1,872 km)

Older Generation Turboprop 170 nm (315 km)

Assumptions: Airfield Temperature = ISA+20C En-route Temperature = ISA+10C (7,656 ft) 85% Annual Winds Long Range Cruise Reserve Fuel for 100nm Diversion + 30 min Hold @ 1500 ft + 5 % Flight Fuel

Proprietary Requirements of the African Market Large Baggage and Cargo Capacity

Large Turboprop Baggage Compartment →

← Regional Jet Baggage Compartment

Proprietary Requirements of the African Market Unpaved Runway Capability

Proprietary The African Market Current Aircraft Age Profile by Seat Segment

63% of the current active passenger fleet is older than 15 years

Seat Number of Average Age Segment Aircraft (Years) 20-59 285 20.6 60-99 104 18.5 100-149 253 18.2

Source: ACAS Database (November 2008)

Proprietary Projected Demand by Seat Segment Africa & Middle East, 2008 –2027

Significant demand in African market for large regional aircraft (turboprops and jets) and small single-aisle 3% mainline aircraft in the next 20 years

97% of projected demand

Source: Bombardier Commercial Aircraft Market Forecast 2008-2027

Proprietary The Demand for Large Turboprops Has Already Begun

Arik Air (Nigeria) As of October 2008

South African Express

Tassili Airlines (Algeria)

Proprietary

Africa‟s Newest Large Turboprop Operator

"The 360 knot speed, low operating costs and environmental credentials of the Q400 NextGen aircraft will enable us to maintain the high standards for which we have received numerous awards. The aircraft's excellent range and payload capability will allow us to deploy it on routes within , as well as on regional routes up to 1,000 nm from Addis Ababa. Another key reason for our selection of the Q400 airliner is its exceptional performance in terms of climb rate, single-engine ceiling and higher take-off weight, and thus greater payload, from hot and high elevation airfields."

- Girma Wake CEO, Proprietary 20 November 2008 Example of Large Turboprop Application South African Express

Lubumbashi

Johannesburg to Bloemfontien Short domestic route not otherwise served by competitors

Johannesburg to George Johannesburg Medium distance high-density domestic trunk route Large turboprop against low-cost carrier operating Boeing 737s Comparable schedules, fares and load factors…but much lower cost Bloemfontein

Johannesburg to Lubumbashi Long-distance regional flight versus competitor operating Boeing 727s George Large turboprop flies 7 flights per week versus 3 for competitor Higher weekly seat count (511 vs. 447) with superior schedule frequency favored by customers Source: Sabre PlaNET (October 2008)

Proprietary Regional Jet Operators in Africa

Air Service Gabon South African Express

Sevenair (Tunisia) Arik Air (Nigeria) Libyan Airlines

As of October 2008

Proprietary 50 Seat Regional Jets Low-Risk Solution for New Intra-African Markets

50 Seat Regional Jets Typical Range* of 50 Seat Regional Jets Initial Market Entry

Large Turboprops (Up to 80 Seats)

Large Regional Jets Single-Aisle Mainline Jets (Up to 100 Seats) (Up to 145 Seats)

Assumptions: * Inner circle represents maximum passenger range (1,590 nm with 50 pax). Passengers: 100 kg each, airport temp.: ISA, en route temp.: ISA, Mach 0.78, 85% annual wind, 10 minutes taxi, OWE: standard + 2% (for allowances). Reserves include: 100 NM diversion + hold 30 min @ 1,500 ft. Outer circle represents maximum fuel range (2,360 nm with 33 pax).

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Assumptions: Passengers: 100 kg each, airport temp.: ISA, en route temp.: ISA, Mach 0.78, 85% annual wind, 10 minutes taxi, OWE: standard + 2% (for allowances). Reserves include: 100 NM diversion + hold 30 min @ 1,500 ft. Assumptions: Passengers: 100 kg each, airport temp.: ISA, en route temp.: ISA, Mach 0.78, 85% annual wind, 10 minutes taxi, OWE: standard + 2% (for allowances). Reserves include: 100 NM diversion + hold 30 min @ 1,500 ft. Assumptions: Passengers: 100 kg each, airport temp.: ISA, en route temp.: ISA, Mach 0.78, 85% annual wind, 10 minutes taxi, OWE: standard + 2% (for allowances). Reserves include: 100 NM diversion + hold 30 min @ 1,500 ft. CSERIES. LAUNCH. July 2008

AFA0803 - PCP Proprietary CSERIES • The Future Wings of Africa

Best in Class Cabin Comfort Advanced and Flexibility Al-Li / CFRP Flight Deck & FBW Control Fuselage

Latest CFD Technology Game Changing Composite Superior Field Performance PW1000G PurePowerTM Engine Technology Wing & Range Flexibility

Proprietary CSERIES • Range from Ouagadougou (OUA)

CSeries 110 ER – 110 Pax 2,774 nm (5,137 km) CSeries 130 ER – 130 Pax 2,782 nm (5,152 km)

Performance Assumptions: • Passenger with Bags @ 225 lb (102 kg) each • Single-Class Cabin Configuration • 100 nm (185 km) Alternate • 45 min Holding @ 15,000 ft • 5% Flight Fuel Contingency

• 2.5% Margin on OWE for Airline Customization • Airport ISA+15ºC, Zero Wind • En Route ISA, 85% Annual Wind • Cruise M0.78

New opportunities for intra- African, European and Mediterranean air links

Proprietary 2008 Year at Glance

CSERIES CRJ1000 Q400 NextGen Program Launch First Flight Launch

Proprietary A Complete Portfolio The Right Aircraft for Each African Market

Large Turboprops

Q400 NextGen

Regional Jets

CRJ700 NextGen CRJ900 NextGen CRJ1000 NextGen

Single-Aisle Mainline Jets

CSeries 110 CSeries 130

CRJ, CRJ700, CRJ900, CRJ1000, CSeries, NextGen and Q400 are trademarks of Bombardier Inc. or its subsidiaries.

Proprietary Conclusion

The African market offers growth opportunities from continuing GDP growth, future market liberalization and untapped intra-African routes

Demand for larger next generation regional aircraft in Africa is continuing with numerous new aircraft orders in the last years

Bombardier offers next generation regional aircraft and is currently redefining the lower-end of the single-aisle segment with the CSeries

Modern high performance, low cost aircraft for Africa

Proprietary Bombardier Commercial Aircraft Continuous Innovation for Africa and the World

Opportunity for untapped intra-African & intl. Single-Aisle Mainline Jets markets that cannot be served profitably today

Thank You! Questions?

Regional Jets Ideal for developing longer thin intra-African markets

Combination of outstanding performance (hot & high) Large Turboprops with low seat-mile costs for short-haul operations

Proprietary Information contained in this document is proprietary to Bombardier Inc., Bombardier Aerospace, (“Bombardier”). This document must not be reproduced or shared with, or distributed to, any third party in whole or in part without Bombardier‟s prior written consent.

This document is submitted for informational purposes only; is not part of any proposal; and creates no contractual commitment. Bombardier provides the information contained in this document on an „as is, where is‟ basis and makes no representation or warranty of any kind regarding the applicability or reliability of any of such information with respect to any use whatsoever to be made of it by the recipient.

Any information of a technical nature contained in this document may contain inaccuracies and is subject to change and should never be relied upon for operational use.

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