THE WAY FORWARD FOR BUSINESS AVIATION

Tilmann Gabriel, Executive Vice President – Qatar Executive 13 June 2013

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AGENDA

QATAR EXECUTIVE IN BRIEFOur FleetOur Service portfolio

CURRENT BUSINESS AVIATION MARKETAn ever-changing landscapeChallenges & Opportunities for MENA OperatorsFragmented industry set up

WAY FORWARD

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QATAR EXECUTIVE

Qatar Airways’ private jet division

Launched in 2009

Worldwide business jet services

Awarded own AOC in June 2013

Voted “Best Business Aviation Operator 2012”by Aviation Business Magazine

Alliance with Flexjet – Bombardier’s fractional ownership programme to serve North American market

Member of MEBA, EBAA, NBAA, BACA

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OUR CHARTER FLEET

2 Global 5000s (13 passengers)

1 Global Express XRS (13 passengers)

3 Challenger 605s (11 passengers)

Fleet expansion plans

Qatar Executive plans to expand fleet

Aircraft Management

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OUR SERVICE PORTFOLIO

Private Jet Charter

Airliner CharterPremier provider for any kind of aircraft,including entire Qatar Airways’ fleet

Maintenance & RepairDedicated Hangar at Doha International AirportBombardier Authorised Service FacilityEASA Part 145 approvalQCAA Part 145 approvalLine and Base maintenance approval (up to C-Checks)

FBO Services at Doha Airport

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AN EVER-CHANGING LANDSCAPE

Market Conditions

On-demand charter, mainly driven through brokers.

Vulnerable in economic crisis, high number of brokers,increased competition among brokers

100 to 200 hours programmes, mainly drivenby operators, to lesser extent by brokers

Aircraft management – operator sales

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A CHANGING ENVIRONMENT

Product & Service Innovations

More customer-focused services and technologies needed

No real time interface available for businessaviation industry, similar to airline’s Global Distribution System (GDS) to capture entire market availability, offering transparency to direct customers

Avinode facilitates only broker business, not direct customer sales, has become a monopoly

Increasing trend towards loyalty programmes, customer added-value propositions, concierge services

Brokers have to commit to the product they are selling,and start establishing serious partnerships with selected operators

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CHALLENGES

Euro crisis affecting global economy

EU operators entering MENA market, wheretraffic rights can be easily secured (Open skies)

Political developments, strong regional protectionism, especially EU, (Italy’s luxury tax, ETS, slot restrictions, European cabotage)

Managed Aircraft Market - MENA operators with managed aircraft often fight for market share through low prices (without taking aircraft cost factor into account)

Broker-controlled market with a focus on lowest costs,no loyalty towards operators

Grey market

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OPPORTUNITIES IN MENA REGION

Favourable geographical location 80 % of global population can be reached within 8 to 12 hours from the Gulf non-stop using long-range executive jets

High economic activity – rising incomes2.2% increase in ultra-wealthy population in2012 in MENA region, roughly 4,600 super-richindividuals, combined total wealth of $ 710 billion

Strong financial backing in the region to support business aviation infrastructure projects

Superior business jet fleets (ultra-long range) available in region to cater to global travel demand ofprivate customers, corporations, VIPs, sports &entertainment industry

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FRAGMENTED INDUSTRY SET UP

Business Aviation Associations are well-established,but operate mainly regional

Regional business aviation associations work hard to change the perception of private jet travelas pure luxury, excessive and unjustified expense

Have mainly regional agendas, reducing theirshare and power of voice – similar organisationneeded with the stature of IATA

Address global industry issues – TO FLY GLOBAL

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GLOBAL REACH?

NORTH AMERICA

NBAA

SOUTH AMERICA

EUROPE

EBAA

RUSSIA

RUBAA

CHINA

INDIA

ASIA-PACIFIC

MIDDLE EAST

MEBAA

AFRICA

AfBAA

MENA Operators with long-range aircraft worth between US$30 million and US$70 million need to fly globally to be profitable

Focusing on GCC with cities in close proximity, means operating at a LOSS

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WAY FORWARD

Industry needs to form one voice, similar to IATA, to be heard on global scale

Forge ahead with creating operator alliances, to encounter regional restrictions & broader availability of aircraft

Stimulate product, service & technologyinnovations with strong customer-focus and profit returns; operators need to create a sustainablebusiness model for the business aviation industry (including OEM support)

Ignite industry change based on securities (direct sales/long-term agreements) to allow and justify repetitive billion dollar investments (fleet expansion, roll over programmes, infrastructure, safety enhancements)

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THANK YOU