AMERICAN EXPRESS PROPOSAL PRESENTATION

Jennifer Aguirre

Donny Davidson

Ian Hitchcock

Jackie Mai

Danielle Smith

WHERE IS AMERICAN EXPRESS TODAY?

"American Express is a global services company that

provides customers with access to products, insights and

experiences that enrich lives and build business success."

"Our brand and its attributes — trust, security, integrity,

quality and customer service — are key assets of the

Company."

WHERE IS THE AIR TAXI MARKET TODAY?

Air taxis are a niche segment of the airline industry. Ultimate goal is to provide economically viable short-

haul air travel to underserved markets.

Recent technological breakthroughs in jet engine performance make air

taxis a feasible commercial possibility.

AMERICAN EXPRESS BRINGS

COMPETITIVE ADVANTAGES

Large customer database and travel services business to build product and brand awareness

Existing awards program

Strength of logistics; history of employing advanced pattern recognition and customer profiling algorithms

Resources provide strategic flexibility

OUR RECOMMENDATION:

BUY THEN EXPAND

KEY POINTS

Established Business

Potential for

Expansion

Minimizes Risk

BUDDY AIR:

AN ESTABLISHED MARKET LEADER

BUDDY’S BUSINESS MODEL:

OIL AND RANCHERS

BUDDY AIR AND AMEX

CUSTOMERS OVERLAP

75% to 85% of Buddy Air flyers are

Platinum or Centurion cardholders...

...55% to 65% of those already use AmEx

travel services to book their flights.

TAKING ADVANTAGE OF

EXISTING INFRASTRUCTURE

ROOM FOR EXPANSION (RE)

Existing Resources

Optimization

Additional Markets

Existing Reputation

RE: WE GROW USING OUR

EXISTING RESOURCES

Travel Services

Investors

Loyal Customers

Capital

RE: WHERE DO WE GROW?

Expansion Interests

Travel Destinations

Rural & Industrial Markets

Potential Interests

Major Metropolitan Markets

RE: FURTHERING OUR REPUTATION

RE: STANDARDIZE AND OPTIMIZE

BUY VS. BUILD COMPARISON

0

100

200

300

400

2014 2015 2016 2017 2018

Projected revenue (in million)

Buy Build

2 markets:

Texas and

Oklahoma

5 markets

BUYING IS LESS RISKY

THAN BUILDING ALONE

Downside Base Scenario Upside

Terminal Value ($103,684,879) $453,001,728 $1,874,051,597

NPV ($138,901,886) $329,677,217 $1,479,103,233

IRR unavailable 105.58% 284.61%

Possibility 50.00% 25.00% 25.00%

Market Share 5.00% 13.50% 20.00%

Downside Base Scenario Upside

NPV of future cash (190,352,730) 217,496,808 534,324,684

IRR unavailable 13% 29.60%

Market Share 19.00% 19.00% 19.00%

Possibility 20.00% 55.00% 25.00%

LONG TERM RISKS OF BUYING

BUY THEN EXPAND:

THE BEST OF BOTH WORLDS

Established Industry Room for Expansion

Strategic Entrance into Air-Taxi Industry