flyOAX.com

flyOAX.com

The new Greek long-haul hybrid low-cost airline

flyOAX.com

market opportunity

to capture the market vacuum left by OA to serve the unfulfilled diaspora travel needs to stimulate untapped new travel segments

flyOAX.com

market overview

shrinking OA abandons long-haul network high fares in the market by remaining airlines are turning

air travel into luxury priced service no Greek airline flying intercontinental routes presently Greek diaspora feels abandoned as historical ties to

the motherland are severed abruptly ethnic traffic is expected to support a new Greek airline

offering fair prices and “value-for-money” level of service Intercontinental markets never stimulated by low fares

flyOAX.com

general market overview

global recession resulted in dramatic traffic declines and airline capacity constriction

economic crisis unfolding currently in Greece, impacted traffic demand significantly

in times of economic malaise, low-cost carrier sector performs better than traditional airline sector

historical low aircraft lease rates (A340 monthly lease rate c.$200k from $500k a couple of years ago)

A true long-haul low-cost airline in Europe not existing… still

flyOAX.com

company concept

Capitalize on the market gap opportunity while

Maintaining technical legacy of the brand but

re-launching service offering

flyOAX.com

market size analysis

arrival of foreigners to Greece

market 2009

2008

2007 2006

US 380,611 +6%

358,624

Canada 135,599 +19%

113,402

S. Africa

15,801 -11% 17,798

China 19,101 +91% 10,000

historical traffic levels at 150,000 passengers/year on OA alone

Greeks outside of Greece

US 1,350,600¹

Canada 450,000²

S. Africa 120,000³¹ United States Census Bureau (2008)² General Secretariat of Greeks Abroad (2004)³ General Secretariat of Greeks Abroad (2004)

flyOAX.com

competition analysis

limited or no nonstop services US market is served nonstop year round by only one US airline.Two more US airlines operate seasonal service (summer only) No year-round nonstop flights to CanadaNo nonstop flights to S. Africa nor SE Asia

only legacy carriers as long haul operators no charter, nor LCC presence high fares in the marketno Greek-based long haul airline

flyOAX.com

Competitor Analysis

Dependent on high yield passengers, a shrinking market

Highly exposed to economic downturns

Influential Trade Unions

Various aircraft types, mostly old aircraft

Complex organizational structure and slow adapting

Dependent on transfer traffic (competing with strong network carriers)

Advantage on FFPs and distribution through travel agents

Moderate service standards

High-cost base

Highly exposed to economic downturns

Influential Trade Unions

Complex organizational structure and slow adapting

Multiple aircraft types

Dependent on transfer traffic (competing with strong network carriers)

Advantage on FFPsand distribution through travel agents

Delta Airlines Star Alliance and BA

flyOAX.com

market niche

filling in the market vacuum after OA abandoned several long-haul routes

providing low fares on the most popular long-haul destinations from/to Greece

becoming the first true long-haul low-cost carrier in Europe becoming the only Greek long-haul airline Fill in gap existing in the European long-haul charter / ACMI

market opportunistically

flyOAX.com

OAX concept

a start up airline set up to fill in the big void in long-haul services from/to Greece; and widebody charter / ACMI market

truly long-haul low-cost Greek carrier no frills initially based in Athens operating a fleet of ex-OA A340s sustainable and risk-free business model – scheduled trans-

Atlantic ‘ethnic’ routes; scheduled services to seasonal leisure destinations; both inbound & outbound travel; charter & ad-hoc ACMI services e.g. Hajj flights, military flights; cargo services

flyOAX.com

OAX advantages

lowest cost base lowest but money making fares commercial and operational simplicity – no frills Greek related but at the same time market-neutral using OA planes, pilots and mechanics the new airline -

while making a fresh start - will be a natural claimant of OA’s technical and operational reputation and will inherit the brand loyaltyfactor OAX OA delt

a

Average gross fare

€300 €430 (30%)

flyOAX.com

OAX target market

ethnic market & VFR segment• Greeks living in the US, Canada and South Africa

inbound leisure market to Greece outbound leisure market from Greece – sold via tour

operators on hard-block basis, and direct to the public business traffic, SMEs initially in US market and later in

China market charter and ad-hoc ACMI services on long-haul aircraft

on opportunistic basis, e.g. Hajj flights, highly demanded military flights to Afghanistan and Iraq

flyOAX.com

OAX aircraft choice

A340-300 ex-OA aircraft very high safety record - no fatal incidents

A340-300 characteristics

Seating capacity

330Y

Seat pitch 34”

Maximum range

13,700km

MTOW 276,500kg

Engines 4 x CFM56-5C

flyOAX.com

OAX network

route & weekly flights

year 1

year 2

year 3

New York - Athens 3 - 4 4 - 5 7+

Chicago – Athens 2 2 3

Johannesburg - Athens

2 2 2

Toronto – Athens 2 3

Bangkok – Athens 1* 1*

Peking - Athens 1 2*seasonal

flyOAX.com

OAX pricing policy

low-cost pricing policy very attractive starting fares to

• stimulate market and • siphon off traffic from high-fare legacy carriers

the earlier the ticket is booked, the lower the price no fuel surcharges no frills non-refundable fares but upgradable and changeable for a

fee general pricing strategy: match the fares of connecting

carriers and always be 30-40% lower than nonstop competitors

flyOAX.com

OAX ancillary revenues

strong focus on ancillary revenues keeping fares 40% below non-stop competitors making up the difference on

• optional services (baggage, seat assignment, catering)• affiliate services (hotels, hostels, car hire, airport transfers,

insurance)• advertising (in-flight magazine, aircraft livery, overhead bins,

trays)• sales (in-flight duty-free)

flyOAX.com

OAX ancillary revenues

providing choices to the guests as everybody is differentguest type leisure VFR business

airfare¹ (each way) €199 €299 €399

baggage (registered) €20 €25 €15

baggage (excess) - €45 -

seat assignment €10 - €50

priority check-in €5 - €5

travel insurance* €10 - €10

hotel* €52 - €67

car hire* €25 - -

airport transfers* €2 €2 -

onboard catering* €10 €5 €20

onboard duty-free* - - €10

in-flight entertainment* €10 - €10

total net revenues €333 €376 €586¹ based on advance purchase and demand* net revenue / commission on sale

flyOAX.com

OAX marketing positioning

truly Greek long-haul low-cost airline online / e-commerce brand = .com

• domain name already secured modern & fresh brand that is linked to Greece but at the

same time is market neutral flyOAX.com

• fly – reference to the airline business• OA – drawing on the legacy of Olympic Airlines brand• X – eXtended, long-haul flights (e.g. AirAsiaX)• .com – reference to the key point of sale - flyOAX.com

flyOAX.com

Growth Strategy

OAX plans to establish itself as a sustainable competitor by the first three years of services

After the 4th year introduction of new aircrafts will be considered as well as network expansion

The latter shall be directed towards China, Brazil and Singapore

Cooperation with low cost (short-haul) carriers in OAX’s destinations will be strongly encouraged in order to create “feeding traffic” and achieve economies of density. • JFK with JetBlue• Canada with WestJet• SE Asia with Tiger and JetStar

flyOAX.com

financial projections

Almost break-even in first year

Op. margin 5% in second full operating year

flyOAX.com

key performance indicators

flyOAX.com

profit & loss projections

flyOAX.com

Summary of OAX business model

OAX will act as the successor of former Olympic Airways on its long-haul routes

Business model: Low Cost (no-frills), Low Fare airline Demand stimulation Fares at 30% discount from legacy nonstop competitors Simple fare structure and ticket purchasing procedure Focus on ancillary revenues (menu priced service offering) Single aircraft type (A340) Economy and limited “Premium” class configuration (e.g.

AirAsiaX) e-commerce and social media potential to be fully capitalized Interline feeding at both origin and destination

Mission: evolve into the best Value For Money Airline