The target customers are individuals, corporations, innovative regional airlines, fractional ownership companies, and jet charter service providers, all looking to expand business-to-business service. The underserved corporate travel market values the benefits of private jet travel. Traditional jet aircraft are currently priced anywhere from $4M to $50M, most companies are unable to afford direct purchase. Instead, companies may offer their top-level executives private jet travel service via fractional ownership programs or charter service. However, most companies have no alternative other than to continue using the commercial airline system for the bulk travel of their company employees.

Eviation Jets is fostering change, and the low-cost Vantage Jet is the catalyst. Our goals are predicated on the growing market demand:

• Global air transportation is a $400B market. But commercial airlines will have accumulated losses of $30B since 2000, the last year the industry was profitable. Despite a period of strong economic growth from 2003-2005, the industry has been unable to make money, and is headed for change.
  FAA Aerospace Forecast, FY2005 - 2016, March 2005.
• In 2000, the mainline air carriers, such as American, Delta, and United had 70% market share, while low-cost and regional airlines, including Southwest, JetBlue, and Frontier, had just 30%. By 2004, low-cost and regional airlines netted 43%, and will surpass the size of the mainline companies with 55% market share by 2016. These companies are flying point-to-point business models that are profitable. They comprise the target market for Eviation Jets.
  FAA Aerospace Forecast, FY2005 - 2016, March 2005.
• Businesses looking for affordable jets often turn to the used market. They typically find that these are jets averaging 31 years of age that threaten to burn through the money they saved on the initial investment with operating and maintenance expenses.
  GAMA Stats Book, 2003
• The private business aviation market has experienced the fastest growth in the general aviation industry over the last five years and is projected to experience continued strong growth. The number of turbine-powered aircraft (the Vantage's category) has increased 20% from 16,000 to 19,000 aircraft since 1993. Hours flown by these aircraft have grown substantially from about 290 hours per year to more than 3,210 hours per year. Annual sales volume for new and used private business aircraft exceeded 8% of the market's total available aircraft.
  AvData, 2004.
• Interest in private business aircraft ownership has risen dramatically over the past several years, and business jet operators and manufacturers anticipate that a much more diverse population of customers is ready for this form of travel. While the FAA recently reported that business jets grew by 14% in 2004, the forecasts stated, "New aircraft models are stimulating the high-end business jet market. Certainly, the introduction of the new micro jet in 2006 will spur this sector." FAA predicts 4,500 micro jets will be vying for airspace by 2016.
  FAA Aerospace Forecast, FY2005 - 2016, March 2005.
• Eclipse Aviation reports its Very Light Jet, Eclipse 500, has pre-orders for 2,400 jets. While Adam Aircraft recently won a pre-sale for 75 of it's A-700 jets in October 2004, from Pogo Air founded by Robert Crandall, ex-CEO of American Airlines.

Market Opportunity

• Market demand for business jets expected to grow to up to 9,000 units.
• Buying habits are changing in the $400B global transportation market.
• Giovanni Bisignani, Director General and CEOInternational Air Transport Association (IATA)
  • My concern is the bottom line.
  • Losses between 2001 and 2004 exceeded US$26 billion.and another US$6 billion in 2005 for larger airlines.
  • Parts of the industry are profitable (micro jets).
  • Urgent action and change are needed.

Trend 1: Commercial Airline Passenger Market Share shifts to Point-to-Point Travel

Trend 2: Business use of General Aviation Aircraft Become Viable Alternative to Commercial Airlines

FAA Predicts...
FAA Aerospace Forecast, 2005 - 2016

• Corporate side of general aviation should continue to benefit from growing market for new VLJs (Versatile light jets)
• Corporate safety/security concerns for its staff, combined with increased processing times at some US airports have made fractional, corporate, and on-demand charter flights viable alternatives to commercial flights.
• Relatively inexpensive twin-engine VLJs (priced between $1 - 2 million) are believed to have potential to redefine business jet segment by expanding business jet flying and offering performance that could support a true on-demand air-taxi business service.

Regional Jet Fleet Growths 38% Over Next Three Years

Low Cost Carriers Drive Mainline Carrier Fleet Growth

Demand Driven by Basic Trends

• Many Business Jet users want Personalized Value Jetting with added benefits:
  • Save employee time
  • Ensure personal and industrial security
  • Project positive corporate image
  • Close last minute deals
  • Boost corporate earnings

3 Factors creating the demand for affordable, high performance micro-jets

1. Technology
   • Engines
   • Avionics
   • Composite Materials
2. Access to many new airports
   • Small Airport Transportation System
3. Broken commercial airline system
   • Bankrupt airlines
   • Security line hassle
   • Change in consumer travel needs and habits