DYNAMIC MIDDLE EASTDYNAMIC MIDDLE EASTA REGIONAL REVIEWA REGIONAL REVIEWA REGIONAL REVIEWA REGIONAL REVIEW

Conference-debat du Cercle des Economists Arabes15 Decembre 2010

Fouad Attar H d f C i l

15 Decembre 2010

Head of Commercial

Airbus Middle East

Dynamic Middle East

Airbus in the region

Regional Overview

Regional Market Forecast

Dynamic Middle East

Airbus in the region

Airbus in the region | Regional Coverage

Airbus in the region | Middle East market share

374A320

Family

204717737

65%35%

56% 44%159A300A310

A330 200

127767

787-3757

MD-80MD-90100-200 seater*

578 orders200-275 seater

286 orders

A330-200A350-800

787-8

21%

275-375 seater514 d

375+ seater134 d

56% 44%286A330-300A350-900A350-1000

A340

228777

787-9

106A380

2874779%

21%

514 orders 134 orders

*Firm orders for competitive deliveryAirbus

Boeing

Source: AIRBUS, end Sept 2010

Airbus in the region | Historical Orders

1024

1200

Airbus Historical Orders in MENAAirbus Orders

733

1024

800

1000

•• 3 decades 3 decades of strengthening regional of strengthening regional presencepresence 733

600

800

o. O

f Airc

raft

presence.presence.

•• Over Over 10001000 directly sold directly sold aircraft.aircraft.

M thM th 470 d li d470 d li d i fti ft

205200

400

No •• More than More than 470 delivered 470 delivered aircraft.aircraft.

1097

0

200

78 79 80 81 84 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

197

197

198

198

198

198

198

198

198

199

199

199

199

199

199

199

199

199

199

200

200

200

200

200

200

200

200

200

200

201

Source: AIRBUS, end Nov. 2010

Dynamic Middle East

Regional Overview

What will drive Middle East in the future ?

Regional economic growth

Regional Demographics

Location of the Middle East

Regional Overview | GDP growth 2000-2010

8

10

ear

2

4

6World

Euro area

h ye

ar o

n ye

(%)

-2

0

2Major advanced economies (G7)

Newly industrialized Asian economies

GD

P G

row

t (

-6

-4

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Middle East and North Africa

Over the past decade MENAMENA has performed well and unlike the rest of the world, avoided recession avoided recession in 2008 / 2009

Source: IMF Global Economic Outlook April 2010

Middle East Traffic outpacing global growth

35%

40% ME Historical Traffic growth vs. global

34%

25%

30%

35%Global Trend

Middle East

17%

13%

17%

17%

21%

11%

15%

20%

0%

9%7%

8%

2%2%

9% 8%

11%

0%

5%

10%

-4%

0%-2% -3%

-10%

-5%

0%2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: IATA Carrier Tracker, Sept 2010 International Scheduled Traffic

Regional Overview | Regional Demographics

Urban Population YoY Growth By Region (2005-2009)

The population of the MENA region is almost equivalent to that

1

1.5

2

2.5MENA

Asia PacificEastern Europe

region is almost equivalent to that of the European Union, and is one and a quarter times larger than the population of the United States.

0

0.5

1

WorldWestern EuropeMENA has the highest rate of urbanization in the world.

Australasia

Latin America

North America

Urban Population growth is a contributing factor to aircraftcontributing factor to aircraft demand increase.

Source: : Euromonitor, Airbus GMF 2009

Regional Overview | Regional Demographics

200520252025

MENA enjoys a very young very young j y y y gy y gpopulation.In 15 years15 years, MENA will still have a relatively youngyoung

Source: Airbus GMF 2009

y y gy gpopulation.

Regional Overview | Aircraft vs. Population

•• Except in the UAE and Qatar, Except in the UAE and Qatar, aaircraft Penetration ircraft Penetration is is much less much less in in emergingemerging or or Middle EasternMiddle Eastern countries countries than in developed than in developed and western countries.and western countries.

Source: Airbus, ASCENDSource: Airbus, ASCEND

HIGH HIGH POTENTIALPOTENTIAL

Source: Airbus GMF 2009

Middle East, a natural crossroads

Location, Location, Location

The Middle East is located at the equivalent of a global roundabout rather than being stuck at the end of the road

6.2 billion people

8 000nm

The importance of the Middle east’s location is set to grow as the population’s of the Middle

f5 billion people

4,500nm

8,000nm East, Africa and Asia will grow relatively faster than Europe, Australia and the Americas

2.5 billion people

2,500nmThe world population is forecasted to grow to 9.1 billion b 2050 i f 47%by 2050 – an increase of 47%

1.5 billion of that increase will

Source:*United Nations Department of Economic and Social Affairs/Population Division World Population to 2300

be in Asia, 1 billion in Africa *

Middle East | Geography

Top 500 Top 500 most most growing cities growing cities

ff

in term of departing in term of departing passengerspassengers

•• Middle East atMiddle East at the crossroadthe crossroad of theof the

Source: Airbus GMF – Growth for the next 10 years

Middle East at Middle East at the crossroad the crossroad of the of the most dynamic markets in the worldmost dynamic markets in the world

With continuing growth & urbanisation, the number of mega-cities will more than d bldouble

82 big cities where long-haul passengers

MoreMega-cities

will want to fly between in 20 years

In 20 yearsIn 20 years

AA B

A

In 20 years, In 20 years, at least at least 77•• DubaiDubai

•• JeddahJeddahA JeddahJeddah•• DohaDoha

•• Abu DhabiAbu Dhabi•• CairoCairo•• BeirutBeirut

•• Kuwait CityKuwait City

Destinations with more than 10 000 daily long haul pax

Source: AIRBUS GMF

Middle East | Geography

12 of the top 20 most growing RPK flows 12 of the top 20 most growing RPK flows (next 20 years)(next 20 years)

U S AU S A

EuropeEurope

CISCIS

CanadaCanada

U.S.A.U.S.A.

Indian SubIndian Sub A iA i

Northern AfricaNorthern Africa PRCPRCMiddle EastMiddle East

C t l A iC t l A i

JapanJapan

South AmericaSouth America

Indian SubIndian Sub AsiaAsia

Africa SubAfrica Sub--SaharaSahara

Central AmericaCentral America

Southern AfricaSouthern Africa Australia/NZAustralia/NZ

12 of the forecasted 12 of the forecasted 20 most growing air 20 most growing air

Source: Airbus GMF

g gg gflowsflows can pass through the Middle Eastcan pass through the Middle East

Middle East | Traffic Flows

AlmostAlmost 90%90% of the international traffic from theof the international traffic from theAlmost Almost 90%90% of the international traffic from the of the international traffic from the main main Gulf based Gulf based airlines is airlines is generated via generated via

passengers in transitpassengers in transit versus: versus:

52%52% at at Frankfurt Frankfurt

38%38% at London at London HeathrowHeathrow

32%32% at at Paris CDGParis CDG

Source: ODDO Airlines Equity Report

Dynamic Middle East

Regional Market Forecast

Middle East airlines traffic will double before 2017

Source: Airbus GMF 2010 (Traffic of Middle East airlines)

Middle East strong traffic growth

Source: Airbus GMF 2010

Forecast passenger aircraft deliveries 2009-2029

Source: Airbus GMF 2010

Conclusion

The Middle East has prospered through the current recession

Airline traffic remains strong

The region will see the strongest growth over the next 20 years, with g g g y ,regional airlines set to benefit

Combining a strong domestic and regional market religious tourismCombining a strong domestic and regional market, religious tourism with a wide network will ensure strong growth over the coming decades

Airbus is proud to be a partner in the future of Middle East and North African airlines

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