London27 September 2007

OnAir

Briefing

© OnAir 2007 2

Agenda

• Corporate Information

• Airline & Passenger Benefits

•Market Overview

• Entry in to Service/Commercial Situation

© OnAir 2007 3

• OnAir business: In-flight passenger communications service

• Develop, sell and operate in-flight communication services that supports

voice, SMS and email services over passengers’ own handsets (mobile

phones, BlackBerry, etc)

• Passengers will be charged international roaming rates as set by and billed

by their existing operator

• Develop and sell internet services

• Member of GSM Association

© OnAir September 2006

OnAir corporate overview

© OnAir 2007 4

OnAir shareholding structure

OnAir NV(Dutch Registered Company)

SITA NVVarious

ShareholdersAirbus

c. 65% c. 30% c. 5%

SITA NV - Community service provider owned by members of air travel industryAirbus - Leading aircraft manufacturer

Shareholder strength integral to OnAir successCommitted funding of more than US$100M

© OnAir 2007 5

OnAir service architecture

OnAir point of presence

OnAir business systems

OnAir GSM ground infrastructure

Repository

Ground station

@

SwiftBroadband

© OnAir 2007 6

Commercial commitments

B737 retrofit (fleet wide)

A320 line & retrofit (fleet wide)

A320 family line & retrofit + B737 retrofit (fleet wide)

Fleet deployments:

A318 linefit

A319 retrofit

A320 retrofit

Trials leading to fleet deployment:

A330/A340/A350/A380 (fleet wide) linefit

Undisclosed Customer A320 line & retrofit (fleet wide)

X A330 line & retrofit (fleet wide)

© OnAir 2007 7

Why OnAir is leading the market

• Certification (alone)• Two shareholders from air transport community

• Superior product performance (SBB)• Enhanced capacity/ simultaneous calls

• Lower communication costs

• Affordable GPRS access

• Open integration solution• Service from 3000 metres

© OnAir 2007 8

Airline perspective

• Competition with low-cost carriers for

business traveller market through service

differentiation

Medium carrier

• Stay ahead of the gameMarket leader

• Must haveBusiness jets

DriverType of airline

• Improved service to business travellers

• CompetitivenessLarge traditional carrier

• Ancillary revenueLow-cost carrier

54% of business travellers would turn their phone on to be reachable

40% of Business Class travellers departing from LHR carry a BlackBerry-type device

© OnAir 2007 9

Airline perspective

• Up to €105,000 per aircraft per annum from basic usage

• Passengers’ mobile phones used as inflight entertainment terminals on single-aisle aircraft (games, gambling, quizzes etc.)

— Additional revenue from content

provision (premium)

— Additional revenue from increased

communications

Ancillary revenue

© OnAir 2007 10

Airline perspective

• Travel information sent to passenger by text message (e.g. departing & connecting gates; baggage carrousel number)

• Passenger information sent to crew (e.g. passenger preferences)

• Passenger surveys over mobile phone

• Purchase of duty-free items & onboard refreshments through premium SMS (reduced risk of fraud, convenience)

• Customer Relationship Management

• Targeted AdvertisingPayment by SMS

Improved service to passengers

© OnAir 2007 11

The crew is in control

Three service modes

1. Voice, text messages, emails

2. Text messages and emails only

3. System off

The ‘no mobile’ sign lets passengers know when they can use their phones

© OnAir 2007 12

Market demandOnAir has conducted extensive market research which shows that:

Passengers travelling on business

• Up to 40% carry a BlackBerry-type device

• 69% would like to turn their device on

• 93% of those would like to send & receive emails

Voice calls

• 55 % would like to turn their phone on

• Of those

– 94% would accept incoming calls – they want to be

reachable

– 82% would make calls & send emails

© OnAir 2007 13

Pricing & usage

Wholesale rates charged by one mobile operator to another for

handling communications of the other operator’s visiting subscribers.

OnAir’s inter-operator tariffs (IOTs) and usage

€15.00/MB

€0.50/sms

€1.20/min

€1.80/min

IOT Wholesale Pricing

1 MB

50

40 mins

60 mins

Sample Usage

GPRS traffic

Outgoing SMS

Incoming calls

Outgoing calls

Service type (/flight/100

passengers)

© OnAir 2007 14

Retail roaming market (Europe)

€0.80 €4.00€2.70€1.70€1.20

Farcountries

Exotic countries

Outgoing calls/messages

€0.25

€0.55

SMS

€1.00 €1.40

WithinWestern Europe

Eastern Europe& North America

Satellite services up to €5.50

Calls from abroad to home in Western Europe

Desired OnAir positioning

Rates exclude VAT

© OnAir 2007 15

Operational performance

Traditional carrier:

• Seating capacity 144

• Load factor 70%

• Split business/leisure 50%/50%

• Daily service flights 5.5

• Out-of-service days per year 14

Low cost carrier:

• Seating capacity 156

• Load factor 80%

• Split business/leisure 30%/70%

• Daily service flights 6

• Out-of-service days per year 5-6

Note: Only OnAir can offer service starting at 3000 meters = greater revenue potential

© OnAir 2007 16

Airline revenue projections

No Voice ModelFull Service Model

2.1 years

€105,600

€528,000

5 years

€44,000

€222,000

Payback*

Airline revenue share (10-20%)

Annual aircraft revenue

•Based on airborne cost of circa €225,000

Sample Benefits:

• Sample LCC Airline with 100 A320 aircraft • Revenue generation potential of Euro 10M per year• Model possible without voice component but payback is

longer

© OnAir 2007 17

Flow of funds

Monaco Telecom (bills on behalf of OnAir)

Mobile Network Operators(MNO)

(1) Receives passenger usage data

Ground Infrastructure

(2) Bills passenger MNO via roaming agreements (3) MNO pay OnAir

OnAir

(4) OnAir pays MTI/Inmarsat(5) Revenue share(6) OnAir corporate

© OnAir 2007 18

Requires CDMA / GSM 1900 Mhz connectivity via BTS (Not planned)SBB satellite

Middle East & North Africa

Japan, S Korea

India

South / Central America

Aus / Pac

China

SE Asia

N America

Addressable Market, with 3rd Satellite & ALNAv2 from mid 2008 (red = no planned reach)

Europe

Target markets of Europe, MEA, Asia and South America

Target markets

© OnAir 2007 19

Not targeted(RoW)

Target market(EU, ME, APAC)

PercentageAircraftDefinitionMarket

EU, ME, APAC

A320s/B737s in operation & on order

9.6% of total

20% of target1,262OnAir objective

48% of total6,312Target market

100%13,135 Total market

OnAir objective

Addressable market – single aisleA320/B737 market

© OnAir 2007 20

In operation in EU,

2560

On order in EU, 944In operation in ME,

104

On order in ME, 77

In operation in

APAC, 1413

On order in APAC,

1214

Aircraft known orders in target market (up to Jul 07): 2,235 aircraft

Aircraft needed in target market 2006-2015: 4,140 aircraft

OnAir objectives

Europe: 762/3,504= 21%

ME & APAC: 500/2,808 = 18%

Addressable market – single aisleAircraft #’s

© OnAir 2007 21

Long Range – GSM plus Internet

Access through laptop

• Either wired (RJ-45) or wireless

(802.11 b)

• Support of Internet-enabled

applications

• VPN clients

• Web browsers

Access through seatback

• A Web browsing commodity

service

• Access to files relies on

applications supported by the

IFE e.g.

•Adobe Acrobat

•MS Office

Passenger payment by major credit cards

Currently up to two volume-based price plans to be agreed with airline

Available over SwiftBroadband only - today

© OnAir 2007 22

Long-haul usage profile

1 2

Time(10-hour flight)

3 4 5 6 7 8 9

A

B

C

Take-off Hour before main meal

Light meal

Main meal Landing

Voice Off mode

Usage

On a typical long-haul flight,

• Passengers are likely to use the voice service over a period of 3 hours(see above flight profile)

• While SMS can easily be used at any time between take-off & landing, it is likely to be used mostly over the same 3 hours because of

―The nature of the messages (“Will be landing…” , “Flight delayed” etc.)

―The closeness of the time zone of the other party

© OnAir 2007 23

The new long-range cabin

• SwiftBroadband will introduce real-time IP connectivity to the aircraft, opening the door to the introduction of new applications that improve:

• Operational efficiency (cockpit & crew)

• Customer service

• Passenger entertainment

• Passenger & crew communications

• OnAir will provide its own communications applications but also support third-party applications, and enable the airline to charge third-parties for the use of the bandwidth.

© OnAir 2007 24

Link OnAir

Link OnAir SBB service

Customer service

TelemedicineBaggage tracingInventory controlCredit card authorizationSMS micro-payments

OnAir-enabled

Third-party applications

Operational efficiency

Electronic flight bagCrew emailInventory control

OnAir-enabled

Third-party applications

Entertainment

Embedded Internet access for IFEapplications, to update entertainmentcontent in real time

Onboard online shopping

OnAir-enabled

Third-party applications

Communications

Mobile telephonySmartphones & PDAVPN, Internet, Webmail, Webchat

OnAir-provided

OnAir applications

© OnAir 2007 25

Regulatory status in Europe

= Secured

= Expected to be secured within 1 - 6 months

= Too early to make assessment – target is 6 – 12 months

© OnAir 2007 26

Roaming status 200+ agreements

= Secured roaming agreements with MNOs that have a total of 50%+ subscriber share

= Secured roaming agreements with MNOs that have a total of 25%+ subscriber share

= Roaming agreement in signing process

© OnAir 2007 27

Entry into service - Key milestones• Aviation regulatory

• OnAir ahead in certification

• EASA approval of installations on A318

• EASA approval on B737

• National Authorization to Operate

• Telecom regulatory

• CEPT framework providing framework for in-flight

mobile telephony across Europe

• Country of Registration of aircraft and overfly

rights (access to GSM1800 and operational approval)

• Product conformance (R&TTE and ETSI)

�In progress

�

In progress

In progress

In progress

© OnAir 2007 28

Entry into service - key dates

Air France trial Dec 2007

Ryanair 1st 25 aircraft Q1 2008

Bmi & TAP trials Q1 2008

Undisclosed European LCC mid 2008

AirAsia mid 2008

Shenzhen mid 2008

Kingfisher Q3 2008

AirAsia X Q2 2009

© OnAir 2007 29

Projected Deployment

Commercial commitments

- -53 54 91 112 131 150 183 223 262 301

349405

461516

560 592 624 660

- -

97

160

221

280

327

351

365

380

442

495

559583

602

- - 834 66

-

200

400

600

800

1,000

1,200

Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412

Air

cra

ft

Targets

Customer negotiations started

© OnAir 2007 30

OnAir leads market

• 660+ aircraft representing up to $2 Bn in revenue potential

• Both Airbus & Boeing aircraft

• Long range & short range

• Voice & data

© OnAir 2007 31

Conclusion

•OnAir launch of service imminent

• Service launch lead by early adopter (LCC market)

• Expect passenger demand to lead to full market penetration

• Financially attractive to airlines

•OnAir uniquely positioned to remain market leader

© OnAir 2007 32

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However, nothing in this disclaimer shall exclude or limit our liability for fraud, for death or

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