WELCOME to

OfficialIGHC2017Opening

JosephSuidanHeadofGroundOperations,IATA

WelcomefromourHosts

Arkhom TermpittayapaisithMinisterofTransport,Thailand

WelcomefromourHostsArun MishraRegionalDirector,ICAOAsiaandPacificOffice

OpeningRemarksfromIATA

NickCareenSeniorVicePresident,Airport,Passenger,CargoandSecurity,IATA

MasterofCeremony

JohnBaileyPartner,ManagingDirector,KetchumSingapore

Track BUSINESS, ENGAGEMENT, DEVELOPMENT

ThankyoutoourMorningSessions’Sponsor

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EyeontheFuture

Phakkhra RuangsiradechoExecutiveVicePresident,AviationBusinessUnit,ThaiAirways

EconomicStateoftheAirlineIndustry

ConradCliffordRegionalVicePresident,IATAAsiaPacific

16

IN 2016…

17

Boosting trade and tourism

1000

2000

3000

4000

5000

6000

7000

8000

200

300

400

500

600

700

800

2000 2002 2004 2006 2008 2010 2012 2014 2016

Traded

goo

ds,U

S$billion

Touristsp

end,US$billion

Valueoftradecarriedbyairandthespendingoftourists

Valueoftradedgoodscarriedbyair

Spendingbytouristscarriedbyair

Source: IATA Economic Performance of the Airline Industry – end year 2016 report

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2017 less profitable but still value creating

-35 -30 -25 -20 -15 -10 -5 0

5

10

15

20

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

US$billion

Differencebetweeninvestinginairlinesandinvestinginsimilarassetselsewhere

Source: IATA Economic Performance of the Airline Industry – end year 2016 report

19

Now creating value for investors

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

%ofinvestedcapital

ReturnoncapitalinvestedinairlinesCostofcapital(WACC)

Returnoncapital(ROIC)

Source: IATA Economic Performance of the Airline Industry – end year 2016 report

20

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

-30%

-20%

-10%

0%

10%

20%

30%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

%year-on-year %year-on-year

GrowthinindustryFTKs GlobalPMInewexportorders component(adv.2months)

Sources:IATAEconomics,IATAMonthlyStatistics,Markit

ImpliedPMIseriesiftheindexremainsflatatits

February2017leveloverthecomingmonths

Growth has Returned to Air Cargo

21

Someregionsdoingmuchbetterthanothers

Source: IATA using data from The Airline Analyst

-15%-10%-5%0%

5%10%15%20%25%30%35%

40%ROICin2016(partyear)byregionandairline

NorthAmerica Europe Asia PacificLatinAmerica

MiddleEast

Africa

Averagecostofcapital

22

Change in top-10 air travel markets over the next 20 years

0.9

1.9

2.9

3.9

4.9

5.9

6.9

7.9

8.9

9.9

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

Source:IATA/TEPassengerForecastservice

The10largestairpassengermarketsovertime(rankedbypassengernumbers,to,fromandwithineachcountry)

0

2

4

6

8

10

12

1

US

China

UK

Japan

Spain

Germany

India

Italy

France

Indonesia

0

2

4

6

8

10

12

1

China

US

India

UK

Indonesia

Japan

Spain

Germany

Thailand

France

23

Source: IATA Economics

Change in LCC Penetration, 2005-2016

24

ASEAN Single Aviation Market Visa Restrictions

Aviation Security Fees and Charges

Infrastructure

Forex – Fuel

25

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