Mongolian Civil Aviation

S. Munkhsukh

Eznis Airways

$100 100

$214 215

$268 267

$363 580

$872

ДНБ Ажлын байр

+бусад салбарын каталист

+аялал жуучлалын каталист

+шууд бус

+холбоотой салбарууд

Агаарын тээврийн салбар

THE IMPLICATIONS OF AVIATION SECTOR

The aviation sector has a multiplier effect across all industries

Source: Economic and Social benefits of air transport, ATAG, 2008

• The aviation sector creates 8.7 times more revenue in the remaining

sectors

• Annually, one additional job in the aviation industry creates 5.8 more

jobs in the remaining industries

GPD Employment

Other catalysts

Tourism catalysts

Unrelated sectors

Related sectors

Aviation sector

-

5

10

15

19851990

19952000

2005

2010F

2015F

1.4 1.2 1.1 1.0 1.1 1.2 1.3 1.4 1.8 2.3 3.2 3.9 5.1 4.2

5.8 7.2 7.7 9.5

11.0 12.4

5.3 7.4 6.9 7.6 7.2 7.4 8.1 9.1

11.3 10.3

12.4

Mongolia 2005 - 2015 Qatar 1985 -1995

2010 Qatar GDP = US$ 110 billion

538

351 360

168

0.42%

0.32%

0.39%

0.25%

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%

0.45%

0

100

200

300

400

500

600

Камбож Кени Иордан Ямайк

Агаарын тээврийн салбар дахь хөрөнгө оруулалт (ам.доллар, сая)

ДНБ-д үзүүлж буй нөлөөлөл (%)

Aviation sector investment (mln USD)

Effect on GDP (%)

Mongolia needs an efficient, liberalized, internationally competitive aviation sector to reach its potential growth

Cambodia Kenya Jordan Jamaica

348386

476

673

919

1,261

800

163

186137

88 112172

286

485

691

934

0

200

400

600

800

1000

1200

1400

1989 1994 1997 2006 2009 2010f 2012f 2014f 2016f 2018f 2020f

Орон нутгийн зорчигч урсгалын потенциал (мян.хүн)

Орон нутгийн зорчигч урсгал, гүйцэтгэл (мян.хүн)

Орон нутгийн зорчигч урсгалын прогноз (мян.хүн)

MONGOLIAN AVIATION POTENTIAL

89% decrease in domestic traffic in 9years

Vast distances

Dispersed population

Underserviced market

Transport dependent sectors

Proven market potential

Mongolia

Domestic passenger potential (‘000)

Domestic passenger actual (‘000)

Domestic passenger forecast (‘000)

Mongolia’s domestic passenger numbers have the potential to grow in the next 10 years

MONGOLIAN AVIATION POTENTIAL

Mongolia’s gateway to international destinations is 5 times less than that of Kazakhstan

348386

476

673

919

1,261

800

163

186137

88 112172

286

485

691

934

0

200

400

600

800

1000

1200

1400

1989 1994 1997 2006 2009 2010f 2012f 2014f 2016f 2018f 2020f

Орон нутгийн зорчигч урсгалын потенциал (мян.хүн)

Орон нутгийн зорчигч урсгал, гүйцэтгэл (мян.хүн)

Орон нутгийн зорчигч урсгалын прогноз (мян.хүн)

Domestic passenger traffic potential (thousands)

Actual domestic passenger traffic (thousands)

Domestic passenger traffic forecast (thousands)

The number of foreign tourists in Mongolia:

- over 400 thousand (2009)

Source: National Tourism Center Source: World travel and Tourism Council, 2009

Domestic traffic can be stimulated

1990 Mongolia’s aviation sector:

800 thousand domestic passengers

103 destinations

79 aircrafts in use

2010 Mongolia’s aviation sector:

140,000 domestic passengers

destinations

7 aircrafts in use

Kazakhstan is becoming a

bridge between Europe and

Asia

Number of foreign tourists in Kazakhstan:

- over 4,0 million (2009)

Aggressively filled the vacuum in domestic service:Eznis facts:

Fleet: 4 fully owned SAAB340

Employees: over 230

Years in operation: 5 years

Destinations: 12 domestic, 2 regional

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2007 2008 2009 2010F

PAX served

Eznis

AeroMongolia

MIAT

EZNIS IS THE LEADING DOMESTIC AIRLINE

• Well established brand with safe operations and on-time performance

• Zero accidents and zero incidents since the launch in 2006

• Successful passage of all safety audits by MCAA and by independent agencies (by the UN office in Mongolia and Hart Aviation conducted on behalf of charter clients)

•Carrier of choice for well-known corporations, international organizations and foreign governments

Safety:

Peak season (Aug 2009) Off-season (Nov 2009)

Eznis Global peers Eznis Global peers

Dispatch reliability 99.3% 99.1% 98.39% 99.1%

Aircraft daily utilization 7.3 hrs 3.6 hrs 4.7 hrs 3.2 hrs

Source: SAAB Aerotech, 2009

Operational performance comparison with worldwide SAAB operators:

WELL ESTABLISHED BRAND WITH SAFE AND ON TIME PERFORMANCE

State of the art hangar construction to be operational by Nov 2011

AVRO RJ 85

• Gravel operations capability• Short take off capability• The ideal jet for operationally limited runways such as mines

• Number of seats: 93• Range: 3150km • Speed: 650 km/hour• Passenger cabin height: 2.07 m• Overhead bin volume: 4.4 cu m• 61 Operators and 248 Aircraft in Service worldwide• 3 Engine ferry capability

Runway Capabilities

EZNIS WILL ACQUIRE 2 AVRO RJ 85 AIRCRAFTS

Client tailored

• Dedicated Avro RJ 85 upon client’s request• On demand 24/7• VIP conversion

• Downtime can be EXTREMELY expensive for mines and drilling companies

• Have the capability to refit existing fleet for cargo use

Possible Freight/Cargo

• Parcel service

• Banks

• Tourism companies and remote ger camps

• Catering companies that have mining contracts

Others with special charter/cargo needs

• Financial companies/Investors

• Drilling companies

• Mine site medical emergency

WHAT'S NEXT?

Huge potential for air cargo

Possible freight/cargo

Others with special cargo needs

B737

(4C)

Bae

146-200

(3C)

Q400

(3C)

1900D

(2B)

DHC6-

300 (1B)

Earth

works7,965 4,290 2,970 513 331

Airside

Infrastruc

ture

Runway13,959 5,047 3,986 920 562

Taxiway226 153 144 12 12

Apron 3,882 2,175 1,927 216 216

Paints

and

markings

70 48 48 15 15

TOTAL 26,102 11,713 9,075 1,676 1,136

WHAT'S NEXT?

Airport capital development cost estimation (mln MNT)Most airports are underdeveloped and lacking vital infrastructure

AVRO RJ 85 is the answer to Mongolia’s present airport conditions

Private businesss aircraft

WHAT’S NEXT?

•Executive transportation

•On call 24/7

•Time saving

•Jet pooling

•Flexible schedules

•Extreme operational flexibility

•Comfort

•Style

Thank you!