Business Aviation to Grow 4% Annually in Europe

European social perspectives recognize the value of business aviation rather than seeing it as a luxury.


Summary of traffic by distance and type Airport Pairs Median Distance (km) Mean Distance (km) Business Jet 73045 601.5 1100.8 Piston 14499 196.6 284 Turboprop 36401 332.5 420.9 Other 108535 1024.3 1553.9 Scheduled 29614 672.5 1423.3

Forecasted Business Jet Aircraft Deliveries : Pratt & Whitney Worldwide Forecasted Deliveries: 12,200 Forecast Period: 2004 - 2013 Yearly Deliveries: 1,220 Total Value billions US$: Replacement Rate for Period: Europe % of New Deliveries: : Rolls-Royce Worldwide Forecasted Deliveries: 22,500 Forecast Period: 2005 - 2024 Yearly Deliveries: 1,125 Total Value billions US$: 300 Replacement Rate for Period: 33% Europe % of New Deliveries: : Forecast International Worldwide Forecasted Deliveries: 10,900 Forecast Period: 2004 - 2013 Yearly Deliveries: 1,090 Total Value billions US$: 135 Replacement Rate for Period: Europe % of New Deliveries: : Embraer Worldwide Forecasted Deliveries: 9,680 Forecast Period: 2006 - 2015 Yearly Deliveries: 968 Total Value billions US$: 144 Replacement Rate for Period: Europe % of New Deliveries: 18.40% : Honeywell Worldwide Forecasted Deliveries: 9,900 Forecast Period: 2005 - 2015 Yearly Deliveries: 900 Total Value billions US$: 156 Replacement Rate for Period: 25% Europe % of New Deliveries: 15% : Teal Group Worldwide Forecasted Deliveries: 7,417 Forecast Period: 2005 - 2014 Yearly Deliveries: 742 Total Value billions US$: 107 Replacement Rate for Period: 26% Europe % of New Deliveries: 12% : Walsh International Worldwide Forecasted Deliveries: 6,356 Forecast Period: 2005 - 2014 Yearly Deliveries: 636 Total Value billions US$: Replacement Rate for Period: Europe % of New Deliveries: Source: Company published forecasts

Forecast Scenarios for Europe 2006-2015 Jet Scenario Worldwide Europe % of European Deliveries Yearly Deliveries New Deliveries Over Ten years High Growth 1,220 15% 1,830 Central Forecast 928 13.50% 1,253 Low Growth 636 12% 763 Jet Total European Business Scenario Yearly Jet Turboprop Replacement rate High Growth 1.70% 2,620 700 Central Forecast 2.30% 2,060 650 Low Growth 2.90% 1,630 600 Jet Fleet 2015 Scenario Piston High Growth 400 Central Forecast 300 Low Growth 250 Source: Published forecasts and ALG analysis

[Copyright 2006 Access Intelligence, LLC. All rights reserved.]

>

We Recommend