Case Study: - a Successful Underdog in the European Market Introducing Germania Fluggesellschaft mbH – 18th October 2017

INTRODUCTION: GERMANIA GROUP

Germania Holding

Germania S.A.T. Germania Bulgarian Germania Technik Fluggesellsch Fluggesell- Eagle EODD Finanz AG Brandenburg aft mbH schaft mbH GmbH

Germania Mangentum Aviati GmbH Flugdienste AG GmbH

Germania Germania Flug AG Reisen GmbH

Germania Grundbesitz GmbH

Leasing Passenger Financial Services transportation services GERMANIA: 30 YEARS OF HISTORY INTRODUCTION: GERMANIA FLEET Current fleet:

Germania Fluggesellschaft Germania Flug AG INTRODUCTION: GERMANIA ORDER

Airbus order (25 aircrafts, plus 15 options)

Delivery Stream

2 2 2 2 2 2 2 2

1 1 1 1 1 1 1 1 1 INTRODUCTION: GERMANIA

Business Areas

LEISURE • Full charter, split charter and single seat sales SCHEDULED SERVICES • Visiting friends & relatives SPECIAL CHARTER • Shuttle for employees between TLS and XFW • ACMI & ad-hoc charter INTRODUCTION: GERMANIA AIRLINES

Network Destinations INTRODUCTION: GERMANIA AIRLINES

Product • High quality & top service • Reliable & on time Booking & Sales • German crews & maintenance B2C • via website: flygermania.com • via service center • via travel agents or tour operators • via general sales agents in target regions

B2B • via agency login under flygermania.com • via GDS: , Sabre, Worldspan, Travelport, Galileo CHALLENGES OF THE EUROPEAN MARKET THE CHALLENGES OF THE EUROPEAN MARKET

Brexit / EU regulations /national air traffic taxes / general barriers

Market saturation (more than 237 groups operating in Europe)

Legacy Carriers

Leisure Carriers

Established LCCs

New Generation Airlines

In-house Hybrids THE CHALLENGES OF THE EUROPEAN MARKET

Three major insolvencies within the last 6 months: , Air and Monarch

No. of aircrafts: 120 No. of employees: 13,000 Passengers: 22.6 Mio.

No. of aircrafts: 139 No. of employees: 8,500 Passengers: 29 Mio.

No. of aircrafts: 36 No. of employees: 2,000 Passengers: 5.5 Mio. Others may follow… WHY DO WE BELIEVE THAT GERMANIA SUCCEEDS IN THE EUROPEAN MARKET GERMANIA’S PHILOSOPHY

Not seeking to compete against legacy carriers • Stay in the market we know • Partnering with similarly situated airlines and tour operators • Core product without shenanigans

Not seeking to compete against LCCs, the new generation of airlines and in-house hybrids • Maintain service & quality product • Ability to partner and cooperate with regional tourism boards GERMANIA’S UNIQUE SELLING POINTS

Niche markets • Focus on routings between de-centralized airports and hubs • Adapting to changing European demographics • Ability to take advantage of ad-hoc opportunities and special charters

Flexibility & Agility • Flat hierarchies, lean structure, concentrated leadership • Flexible maintenance concept due to own MRO

Long-term perspective / sustainability • Strategic planning without need to satisfy short-term shareholder interest • Increasing value and organic growth GERMANIA’S COMMITMENT

Fighting for free and fair competition • Filing preliminary injunction against the German takeover government of • Submission of antitrust complaint with the EU commission Battling for transparent institutional and governmental regulation

• Lobbying through industry associations (IATA/BDF)

Advocating for reasonable airport charges and taxes • Opposing unjustified increasing airport charges (example: ) à Defending our market space CONCLUSION

NOT BIGGER – BETTER NOT FASTER – SMARTER NOT CHEAPER – VALUE THANK YOU FOR YOUR ATTENTION

QUESTIONS?