The Association of European Airlines (AEA)35 member airlines:

Network carriers with a global reach11,865 flights a day

615 destinations in 165 countries380 million passengers

7 million tonnes of cargo426,000 employees

2,660 aircraftTotal turnover of €79 billion

0

200

400

600

800

1000

1200

1400

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Growth - The Industry's LifebloodTraffic to/from & within Europe

[RPK bn]

6 years6 years

8 years

13 years

13 years

Traffic doubles

Notes:(b) The analysis is based on OAG data and it therefore excludes non-scheduled services.(c) No Frills airlines defined as bmibaby, Buzz, Debonair, easyJet, Go, Ryanair, Virgin Express

EU European Commission publication: "Updating and development of economic and fares dataregarding the European Air Travel Industry": EU1 - Summer 2002 update, comparing summerschedule 2000 with summer schedule 1992; EU2 - July 1992 from 2000 Annual Monitoring Report,Summer 2002 from OAG schedules; EU3 - Winter 2001 Fares Report, comparing January 2001with January 1993.

AIR TRANSPORT LIBERALISATION IN EUROPE: KEY INDICATORS

1993 2002 Source

Number of EU Scheduled Airlines 124 131 AEANumber of EU domestic routes 813 910 EU1Number of domestic routes with more than one carrier 106 199 EU1Weekly Seats on EU domestic routes (in thousands) 2,910 4,097 EU1Yearly ASKs on EU domestic routes (in billions) 74 105 EU1Share of EU domestic ASKs on routes with more than one carrier 34% 68% EU1Number of Intra-EU (international) routes 692 1,202 EU1Number of Intra-EU routes with more than two carriers 61 217 EU1Weekly Seats on Intra-EU routes (in thousands) 2,345 4,603 EU1Yearly ASKs on Intra-EU routes (in billions) 107 244 EU1Share of Intra-EU ASKs on routes with more than two carriers 42% 52% EU1No-Frills Airline share of total ASKs 0.40% 11.6% EU2

Change in Business Fares on Intra-EEA routes (nominal) €233 €309 EU3Change in Economy Fares on Intra-EEA routes (nominal) €209 €263 EU3Change in Promotional Fares on Intra-EEA routes (nominal) €123 €108 EU3

85,000

90,000

95,000

100,000

105,000

110,000

2000 2001 2002 2003 2004 2005 2006 2007

Air France-KLMLufthansa-Swiss

Consolidation does not Affect Employment

[Number of employees]Air France - KLM merger

Lufthansa - Swiss merger

European market is moving…

Source: AEA

AEA members as of September 2008

privatisation

privatisation

privatisation

Major restructuring,privatisation

…towards consolidation

In negotiation

AEA members as of September 2008

Source: AEA

0

1

2

3

4

5

6

7

8

1961 1966 1971 1976 1981 1986 1991 1996 2001 2006

[ % growth]

Timeline of crises since 1961 (GDP growth)

The background: A new crisis ahead…

Source: World Bank, IMF

Oil

Cris

is

Oil

Cris

is

Eco

nom

ic C

risis

Eco

nom

ic C

risis

Eco

nom

ic C

risis

911,

Gul

f War

II, S

AR

S

Asi

an

Fi

nanc

ial C

risis

Estimate2008 -Estimate2008 -

‘World Recession’ = 3% or less GDP growth

2009: 2.2%

2008: 3.7%