Tables

Bond Spreads (In basis points over applicable Treasury instrument) As of March 28, 2003 Rating Aaa/AAA Aa1/AA+ Aa2/AA Aa3/AAA1/A+ A2/A A3/ABaa1/BBB+ Baa2/BBB Baa3/BBBBa1/BB+ Ba2/BB Ba3/BBB1/B+ B2/B B3/BCaa/CCC Source: 1 yr 43 47 53 58 63 68 78 98 113 133 650 1000 1300 1500 1600 1700 2300 2 yr 53 58 63 68 78 88 93 113 128 148 600 950 1250 1400 1500 1600 2100 3 yr 62 67 72 77 87 97 107 127 142 162 550 900 1150 1300 1400 1500 1900 5 yr 71 81 86 96 106 121 131 146 161 181 500 700 1000 1200 1350 1400 1800 7 yr 85 95 110 115 130 140 150 170 185 205 450 650 900 1100 1250 1300 1600 10 yr 95 105 115 130 145 165 180 195 215 230 475 750 900 1200 1300 1350 1500 30 yr 105 120 130 145 165 185 205 220 240 255 425 600 1000 1250 1400 1500 1600 http://www.bondsonline.com/asp/corp/spreadtran.html S&P/IFCG Indices Price Index Market (Number of Stocks) Mideast/Africa Bahrain (11) Egypt (52) Israel (50) Jordan (29) Morocco (19) Nigeria (31) Oman (27) Saudi Arabia (27) South Africa (67) Zimbabwe (32) Feb. 2003 (U.S. $) 81.62 39.00 111.68 167.67 149.77 126.84 88.81 124.20 179.98 2702.70 Jan. 2003 (U.S. $) 84.91 42.83 110.45 176.83 143.46 123.35 89.89 127.14 179.90 2110.93 % Change Over Month Total Return Index % Change Year-to-Date Feb. 2003 (U.S. $) 100.24 59.59 128.04 303.77 183.41 448.64 111.34 156.00 247.59 8254.79 Jan. 2003 (U.S. $) 104.28 65.45 126.44 320.38 175.15 436.28 112.69 156.68 246.59 6438.95 % Change Over Month % Change Year-to-Date -3.9 -8.9 1.1 -5.2 4.4 2.8 -1.2 -2.3 0.0 28.0 -4.6 -7.0 -0.4 -2.1 8.6 17.5 2.6 -1.2 -2.7 70.8 -3.9 -9.0 1.3 -5.2 4.7 2.8 -1.2 -0.4 0.4 28.2 -4.6 -7.0 -0.2 -2.1 8.9 17.5 2.6 0.8 -1.9 71.2 8.52% Average Market Total Return Source: http://www2.standardandpoors.com/spf/xls/index/IFCGmonthly.xls Treasury Rate Emirates Bank Offer Rate (EBOR) 2.93% Source: www.eiu.com and United Arab Emirates Central Bank Altman Z-Scores for Emirates Dirhams (AED 000's) Total Assets Total Current Assets Total Current Liabilities Retained Earnings EBIT Book Value of Equity Total Liabilities Working Capital 3/31/2002 11,784,325 5,232,973 2,779,039 2,593,000 625,794 2,820,931 8,798,500 2,453,934 3/31/2002 20.824% 22.004% 5.310% 32.061% 3/31/2002 6.0268638 EM Score Bond Rating 6.026 BBB+ X1 = Working Capital/Total Assets X2 = Retained Earnings/Total Assets X3 = EBIT/Total Assets X4 = BV of Equity/Total Liabilities Model 1: EM Score 2002 3/31/2002 2.6% Tax Rate Based on Altman Z-Score Model Default Spread (5 years, BBB+) + 5 Year Treasury Yield Pre-Tax Cost of Debt * (1 - Marginal Tax Rate = 2.6%) After-Tax Cost of Debt 0.0146 0.0293 0.0439 0.974 4.2759% Calculation of Beta Company UAL Northwest Malaysia Air France 3/02 Cathay Pacific 12/01 Korean Air 12/01 British Airways 3/02 Singapore 3/02 Lufthansa Delta Ticker UAL NWAC MAS AF 0293 HK 0349 KS BAB SIAL DLAKF DAL Average Marginal Tax Rate Unlevered Beta (b U) Emirates Debt/Equity 2.6% 0.29304758 2.029 Levered Beta 1.92 1.68 1.58 1.33 0.67 1.51 1.63 0.77 1.01 1.59 1.308 Market Value Market Value Debt/Equity Debt (000s) Equity (000s) 10,152,000 54,924 184.8358162 6,982,000 631,731 11.05217462 1,128,347 1,174,092 0.961038497 4,500,352 2,274,013 1.979035528 4,846,318 4,877,612 0.993584114 902,828 691,580 1.305456982 10,708,000 2,014,684 5.314977436 1,104,459 3,721,980 0.296739559 4,194,060 3,319,920 1.263301525 10,369,000 1,174,330 8.829715066 3.555 Imputed Beta for Emirates 0.87209365 Cost of Capital Using Built-Up Beta (Cost of Debt using Altman Model) Imputed Levered Beta (b) * Risk premium (Rm-rf) + Yield on EBOR Treasury Bond (rf) Cost of Equity (kE) * Weight for Equity MV Weighted Equity After-tax Cost of Debt (kD) * Weight for Debt MV Weighted Debt MV Weighted Equity + MV Weighted Debt After-tax WACC using MV weights 0.872094 0.0557 0.0293 0.077876 0.3429 0.0267 0.0428 0.6571 0.028098 0.0267 0.028098 5.4799% Risk free rate: Return on Market Debt Equity 2.93% 8.52% 65.71% 34.29% Margin Analysis Emirates Airlines Dirham (AED 000's) Total Current Assets - Cash -Held-for-trading Investments Noncash Current Assets Total Current Liabilities -Borrowings and Lease Commitments Nondebt Current Liabilities Noncash Current Assets - Nondebt Current Liabilities Noncash Working Capital (NWC) Margin Analysis Cost of Goods Sold/Sales SGA/Sales EBITDA/Sales EBIT/Sales Net Working Capital/Sales CapEx/Sales Income Tax/Income Before Tax Percentage Change Revenue Growth EBIT Depreciation CapEx 2002 5,232,973 3,124,392 27,434 2,081,147 2,779,039 546366 2,232,673 2,081,147 2,232,673 -151,526 2002 3.03% 69.1% 16.3% 8.6% -2.1% 11.5% 2.6% 2002 13.36% -5.99% 9.31% 11.50% 2001 3,214,633 1,448,367 ________ 1,766,266 2,458,380 457,725 2,000,655 1,766,266 2,000,655 -234,389 2001 2.55% 69.7% 18.6% 10.4% -3.7% 3.7% 2.2% Mean 2.79% 69.39% 17.44% 9.49% -2.87% 7.57% 2.44% Median 2.79% 69.39% 17.44% 9.49% -2.87% 7.57% 2.44% Discounted Cash Flow Valuation Assumptions Revenues (LTM) EBIT (LTM) Depreciation & Amortization (LTM) Noncash Working Capital (LTM) Capital Expenditures (CapEx) (LTM) Cash and Marketable Securities (LTM) Cost of Goods Sold/Revenues SGA/Revenues Growth rate in revenue Growth rate in depreciation & amortization CapEx/Revenues Marginal tax rate (t) Noncash Working Capital/Revenue After tax WACC using Built-up Beta (MV weights) Dirhams (AED 000's) 7,274,700 625,800 1,187,463 -151,526 833,966 3,151,826 3% 69.1% 13.4% 6.97% 11.5% 2.6% -2.1% 5.4799% Stable Growth 5 2007 13,617,425 412,989 13,204,436 9,409,654 3,794,781 1,663,145 2,131,637 0.974 2,076,214 283,640 33,426 2,076,214 713,920 1,561,091 33,426 1,195,617 21,818,320 1,195,617 21,818,320 23,013,936 5.4799% 1.055 1.305713914 0.76586455 23,013,936 0.76586455 17,625,558 Time (Year) Revenues Less: Cost of Goods Sold Gross Profit Less: Selling, general, and admin (SGA) EBITDA Less: Depreciation and Amortization EBIT (Unadjusted) *(1 - Marginal Tax Rate) EBIT*(1-t) Noncash Working Capital (NWC) Change in Noncash Working Capital (DNWC) EBIT*(1-t) + Depreciation - Capital Expenditures (CapEx) - Change in Noncash Working Capital (DNWC) Free Cash Flow to the Firm (FCFF) Terminal Value in Year 5 Free Cash Flow to the Firm (FCFF) + Terminal Value @ EOY5 Total Cash Flows to Firm After tax WACC (MV weights) 1+WACC(MV weights) Cumulative Product of [1+WACC(MV weights)] PV Factor based on MV (1/Cumulative Product) Total Cash Flows to Firm * PV Factor based on MV PV of Cash Flows to Firm Value of Op Assets (using MV WACC) (in 000s) + Cash and Equivalents Value of Firm (using MV WACC) (in 000s) - Firm's Debt PV of Equity (AED 000's) PV of EquityEBIT000's)(BV Weights) (USD Multiple WACC (MV Weights) WACC 0 2002 7,274,700 220,627 7,054,073 5,240,810 1,813,263 1187463 625,800 0.974 609,529.20 -151,526 82,863 609529.2 509,729 833,966 82,863 202,429 1 2003 8,246,527 250,101 7,996,426 5,698,358 2,298,068 1,270,229 1,027,839 0.974 1,001,115 171,768 323,294 1,001,115 545,257 945,375 323,294 277,702 2 2004 9,348,180 283,511 9,064,668 6,459,601 2,605,067 1,358,764 1,246,302 0.974 1,213,899 194,715 22,947 1,213,899 583,262 1,071,668 22,947 702,546 3 2005 10,597,002 321,386 10,275,616 7,322,539 2,953,077 1,453,470 1,499,607 0.974 1,460,618 220,727 26,012 1,460,618 623,915 1,214,832 26,012 843,688 4 2006 12,012,655 364,320 11,648,335 8,300,757 3,347,579 1,554,777 1,792,802 0.974 1,746,189 250,214 29,487 1,746,189 667,402 1,377,121 29,487 1,006,982 277,702 277,702 5.4799% 1.055 1.055 0.948048147 277,702 0.948048147 263,275 20,052,659 3,151,826 23,204,485 5,722,799 17,481,686 702,546 702,546 5.4799% 1.055 1.112600403 0.898795288 702,546 0.898795288 631,445 843,688 843,688 5.4799% 1.055 1.173569514 0.852101207 843,688 0.852101207 718,908 1,006,982 1,006,982 5.4799% 1.055 1.237879657 0.80783297 1,006,982 0.80783297 813,474 4,720,055 Exchange Rate: $.27/AED Economic Value Added Durham's (AED 000's) Book Value of Equity (LTM) + Book Value of Debt (LTM) BV of Total Capital (LTM) Percentage Weights BV of Equity/ BV of Total Capital BV of Debt/BV of Total Capital Cost of Equity After tax Cost of Debt After tax WACC Marginal Tax Rate 2,820,931 5,722,799 8,543,730 33.02% 66.98% 7.79% 4.28% 5.4353% 2.6% LTM 609,529 5.4353% 8,543,730 145,149 39,519.61 EBIT(1-t) (LTM) After tax WACC BV of Total Capital (LTM) EVA (AED 000) EVA ($000) $ Relative Valuation Total Dollar Amounts in Millions of Dollars Equity Market Total Debt Total Enterprise Value TTM Revenue 2002 TTM EBITDA 2002 TTM EBIT TTM Revenue TTM EBITDA TTM EBIT LTM BV EQTY P/E Total Enterprise Value (TEV) Multiples Equity Market Value (EMV) Multiples Company Name UAL Northwest Malaysia Air France 3/02 Cathay Pacific 12/01 Korean Air 12/01 British Airways 3/02 Singapore 3/02 Lufthansa Delta Ticker Value (mill) UAL NWAC MAS AF 0293 HK 0349 KS BAB SIAL DLAKF DAL $ 54.92 $ 631.73 $ 1,174.09 $ 2,274.01 $ 4,877.61 $ 691.58 $ 2,014.68 $ 3,721.98 $ 3,319.92 $ 1,174.33 $ $ $ $ $ $ $ $ $ $ 10,152.00 6,982.00 1,128.35 4,500.35 4,846.32 902.83 10,708.00 1,104.46 4,194.06 10,369.00 $ 10,206.92 $ 7,613.73 $ 2,302.44 $ 6,774.36 $ 9,723.93 $ 1,594.41 $ 12,722.68 $ 4,826.44 $ 7,513.98 $ 11,543.33 $ $ $ $ $ $ $ $ $ $ 13,767.00 9,489.00 2,204.71 11,616.46 4,243.46 4,276.12 11,887.00 4,970.76 17,602.40 13,305.00 $ (780.00) $ 57.00 $ 86.54 $ 1,186.96 $ 683.41 $ 473.90 $ 940.00 $ 949.80 $ 2,971.93 $ 2,457.00 $ (2,646.00) $ (846.00) $ (204.38) $ 297.17 $ 609.14 $ 157.38 $ (157.00) $ 597.43 $ 1,669.00 $ 1,309.00 0.7 0.8 1.0 0.6 2.3 0.4 1.1 1.0 0.4 0.9 NMF 133.57423 26.606785 5.7073234 14.228568 3.3644619 13.53477 5.0815354 2.5283166 4.69814 NMF NMF NMF 22.79626 15.963374 10.131207 NMF 8.0787094 4.5020851 8.818434 0.042055 NMF 0.712734 0.526898 1.184338 0.270292 0.701247 0.616017 0.767709 0.210567 NMF NMF NMF 11.921 9.549 1.556 NMF 5.082 4.418 NMF *NMF - Not meaningful figure Mean Median StDev Max Min Emirates Airlines $ 1,558.15 $ 1,980.68 $ 493.70 $ 170.39 $ 0.9 0.8 0.5 2.3 0.4 1,980.68 9.5 5.4 8.2 26.6 2.5 $ 493.70 $ 11.7 9.5 6.6 22.8 4.5 170.39 $ 0.6 0.6 0.3 1.2 0.0 768.05 $ 6.5 5.1 4.2 11.9 1.6 127.48 Emirates Airlines Implied Equity Valuation Mean Equity Value ($USmillions) Median Equity Value ($USmillions) $ $ 258.41 95.69 $3,116.54 $1,105.07 $ $ 437.93 56.24 $ $ 429.42 473.13 $ $ 829.29 647.84 Peer Group Exchange Company UAL Northwest Malaysia Air France 3/02 Cathay Pacific 12/01 Korean Air 12/01 British Airways 3/02 Singapore 3/02 Lufthansa Delta Ticker UAL NWAC MAS AF Currency USD USD Ringitt Euros HKD Rate $/FC Revenues (mil) $13,767.00 $ 9,489.00 0.2631579 $ 2,204.71 1.0483 $11,616.46 0.12824 $ 4,243.46 EBIT (mil) EBITDA (mil BV Equity (mil) 1,306.00 $ BV of Debt (mil) 10,152.00 6,982.00 1,128.35 4,500.35 4,846.32 902.83 10,708.00 1,104.46 4,194.06 10,369.00 $ $ $ $ $ $ $ $ $ $ (2,048.00) (798.00) (219.89) 190.75 510.78 444.45 (202.00) 732.39 751.42 (1,287.00) 1.92 1.68 1.58 1.33 0.67 1.51 1.63 0.77 1.01 1.59 $ $ $ $ $ $ $ $ $ $ 0.83 7.36 0.94 10.35 1.46 9.70 18.62 3.06 8.70 9.52 Net Income Beta Price Shares Outsanding (mil) 66.174 85.833 1253.24 219.78 3336.41 71.289 108.2 1218.144623 381.6 123.354 $(2,646.00) $ (780.00) $ $ (846.00) $ $ (204.38) $ $ $ $ 297.17 609.14 157.38 57.00 86.54 $ (2,036.00) $ $ $ $ $ $ $ $ $ 1,647.31 4,315.85 4,118.43 2,558.65 2,873.00 6,042.01 4,324.45 5,577.00 $ $ $ $ $ $ $ $ $1,186.96 $ 683.41 $ 473.90 0349 KS Korean Won 0.0008363 $ 4,276.12 BAB SIAL DLAKF DAL USD SGD USD USD $11,887.00 0.5765 $ 4,970.76 $17,602.40 $13,305.00 $ (157.00) $ 940.00 $ 597.43 $ 949.80 $2,971.93 $2,457.00 $ 1,669.00 $ 1,309.00 Emirates AED 0.27227 Preliminary Calculations for Dubai - New York Route Valuation Assumptions Price of Airbus A380 Depreciation expense for 15-year useful life Malaysia's flights for Newark - Dubai Malaysia's total number of flights Percentage of flights for Newark route Malaysia's revenues for 2002 (Ringitts) Malaysia's revenues for Newark route (Ringitts) Sales projection in US$ for New York route Emirates' Number of aircraft Emirates' Number of routes Initial Investment of aircraft given percentage of planes to routes Malaysian Ringitt UAE Dirham Emirates operating costs breakdown 2002 AED’000 Employee (see (a) & (d) below) Fuel and oil Sales and marketing Aircraft operating leases (see (b) below) Handling (see (c) below) Inflight catering Overflying (see (c) below) Cost of goods sold Aircraft maintenance Landing and parking (see (c) below) Corporate overheads (see (e) below) 1,290,796 830,135 810,979 702,370 444,986 392,506 232,712 220,627 196,805 149,246 678,660 6,511,485 Cost per route $ 8,173.14 $ 5,256.30 $ 5,135.01 $ 4,447.31 $ 2,817.59 $ 2,485.29 $ 1,473.50 $ 1,396.98 $ 1,246.14 $ 945.00 $ 4,297.18 $ 37,673.44 --> annual cost projection for new route $ 250,000,000.00 as of Jan. 2003 $ 16,666,666.67 312 56,750 0.005498 7,721,637,821 42,452,000 $ 11,171,578.95 38 43 $ 220,930,232.56 0.263157895 0.27227 WACC Calculation Tax rate Risk-free rate + 5- year default spread BBB+ After-tax cost of debt Risk Premium Beta Cost of Equity Debt weight Equity weight WACC 2.60% 2.930% 1.460% 4.276% 5.570% 1.370 10.561% 0.6571 0.3429 6.4310% Dubai - New York Route Valuation Assumptions Passenger Growth Rate Forecasts 2002 2003 2004 2005 2006 Source: International Air Transport Association 5-year constant average passenger growth rate Tax rate WACC 0.58% 2.60% 6.43% -11.00% 1.60% 3.10% 4.60% 4.60% Project Valuation using Cash Flow Perpetuity Sales - Costs - Depreciation EBIT * (1-t) EBIT (1-t) + Depreciation Incremental OCF Perpetuity Calculation = FCFF/(WACC - g) $ $ $ $ $ $ $ 11,171,578.95 37,673.44 16,666,666.67 (5,532,761.16) 97.40% (5,388,909.37) 16,666,666.67 11,277,757.29 = 11,277,757.29 (6.43% - 0.58%) $ $ $ 192,749,220.28 220,930,232.56 (28,181,012.28) Present Value of Cash Flows Initial Investment Net Present Value Option Valuation Begin operating New York Dubai route now or delay for one year Time 0 Time1 PV of future cash flows $11,978,026.41 $359,592,483.73 Totals $371,570,510.14 $11,451,268.08 $11,749,001.05 Option Value if delay and lose first period cash flow $352,716,910.43 $364,465,911.48 $ 138,662,251.17 Option Value =153,698775.52*.17 1.0293 NPV to Delay $22,227,991.30 $0.00 NPV to begin NY-Dubai $ (28,181,012.28) The value of the option suggests that Emirates should delay the New York to Dubai route for one year. Risk Neutral Probability of a Rise Initial investment High growth Low growth Average $ (220,930,232.56) 4.60% 2.60% 3.10% =( (1.0293)*11,451,268.08)-11749001.05) 11,978,026.41-11,749,001.05 0.17 WACC 6.4310% Ratio Analysis 2002 Profitability Gross Profit Margin Net Profit Margin Return on Assets Return on Equity Liquidity/Short-term Solvency Current Ratio Quick Ratio Activity Inventory Turnover Days Sales Outstanding Asset Turnover Leverage Debt to Assets Debt to Equity Interest Coverage Valuation Price to Earnings 60.86% -22.48% -13.30% n.a. United Airlines 2001 56.69% -13.29% -8.51% -70.72% 2000 59.04% 0.26% 0.21% 0.87% 2002 60.48% -8.41% -5.90% n.a. Northwest Airlines 2001 53.15% -4.27% -3.27% 207% 2000 56.02% 2.24% 2.35% 55% Malaysia 2001 -8.91% -4.66% -2.98% -33.34% 0.57 0.40 0.63 0.59 0.70 0.64 0.88 0.70 0.91 0.85 0.57 0.48 0.51 0.43 17.40 37.42 0.60 21.24 27.24 0.64 18.69 24.67 0.79 13.50 17.83 0.70 17.00 18.61 0.76 16.04 16.84 1.05 28.16 63.70 0.64 n.a 0.40 0.30 7.88 7.307616 3.22756466 -3.7 n.a. n.a. n.a. n.a. -1.10 0.44 -64.50 n.a. 0.35 22.49 n.a. 1.09 10.16 -94.09 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2002 Profitability Gross Profit Margin Net Profit Margin Return on Assets Return on Equity Liquidity/Short-term Solvency Current Ratio Quick Ratio Activity Inventory Turnover Days Sales Outstanding Asset Turnover Leverage Debt to Assets Debt to Equity Interest Coverage Valuation Price to Earnings 9.82% -1.55% -0.94% -6.40% British Airways 2001 13.82% 1.38% 0.93% 3.97% 2000 10.17% -0.12% -0.08% -0.34% Singapore Air 2002 62.50% 6.69% 3.40% 6.42% 2002 9.27% 1.22% 1.14% 3.86% Air France 2001 9.77% 3.43% 3.38% 10.87% 2000 42.95% 3.43% 3.11% 10.16% 0.80 0.77 0.74 0.72 0.77 0.75 0.92 0.90 n.a. n.a. n.a. n.a. n.a. n.a. 69.16 38.31 0.61 120.57 41.31 0.68 103.19 55.09 0.66 52.92 51.25 0.51 42.74 12.49 0.94 48.80 13.92 0.99 42.74 14.75 0.91 0.55 3.73 n.a. 0.52 2.23 n.a. 0.52 2.24 n.a. 0.12 0.22 n.a. 0.35 1.17 n.a. 0.33 1.05 n.a. 0.32 1.04 n.a. 6.27 n.a. n.a. n.a. n.a. n.a. Cathay Pacific 2001 2000 Profitability Gross Profit Margin Net Profit Margin Return on Assets Return on Equity Liquidity/Short-term Solvency Current Ratio Quick Ratio Activity Inventory Turnover Days Sales Outstanding Asset Turnover Leverage Debt to Assets Debt to Equity Interest Coverage Valuation Price to Earnings 24.85% 2.16% 0.93% 2.10% 58.76% 14.50% 7.21% 15.98% Delta Airlines 2001 2000 70.46% -8.76% -5.15% -30.22% 75.34% 4.95% 3.78% 14.85% Emirates Air 2001 2000 8.77% 6.56% 3.97% 15.68% 10.47% 6.63% 4.82% 18.02% 4.67 4.49 5.72 5.50 0.56 0.53 0.61 0.61 1.88 1.75 1.31 1.16 38.94 56.51 0.43 22.02 52.20 0.50 22.65 9.55 0.59 n.a. 8.73 0.76 17.25 79.68 0.61 15.67 79.43 0.73 n.a. n.a. n.a. n.a. n.a. n.a. 0.40 2.34 n.a. 0.27 1.08 n.a. 0.75 2.95 22.28 0.73 2.73 18.41 n.a. n.a. n.a. n.a. n.a. n.a. Korean Air 2001 2000 Profitability Gross Profit Margin Net Profit Margin Return on Assets Return on Equity Liquidity/Short-term Solvency Current Ratio Quick Ratio Activity Inventory Turnover Days Sales Outstanding Asset Turnover Leverage Debt to Assets Debt to Equity Interest Coverage Valuation Price to Earnings 16.35% -10.39% -5.39% -17.37% n.a. -8.32% -4.30% -11.55% Pakistan International 2001 2000 0.84% -29.49% 26.23% n.a. -7.55% -28.24% 23.46% n.a. Industry Average 2002 50.25% -7.20% -4.60% n.a. 0.61 0.46 0.51 0.36 0.40 0.27 0.37 0.24 0.76 0.5 10.86 167.51 0.52 n.a. 155.12 0.52 11.78 45.14 1.10 11.80 39.56 1.03 18.8 26.73 0.6 0.30 0.97 n.a. 0.02 0.05 n.a. 0.27 n.a. n.a. 0.28 n.a. n.a. n.a. 3.2 -2.6 n.a. n.a. n.a. n.a. n.a. Airline Operating Data 199 - 2001 1999 Revenue Passengers Available Seat - Passenger Passengers Carried Kilometers Load Factor Kilometers Employees 96,574,732 77.24 74,598,735 52721.00 20,743,496 30,315,191 162,579,605 70.43 114,502,996 55,905 10,493,312 58,035,857 71.4 41,434,943 13,159 7,236,206 53,021,337 75.52 40,043,482 72,450 4,540,595 21,257,178 72.06 15,318,106 7,157 3,901,591 15,835,845 69.55 11,013,807 5,101 839,364 4,168,084 53.03 2,210,129 10,563 7,515,820 44,171,605 73.05 32,266,345 15,591 2,130,000 8,717,363 70.64 6,158,092 4,606 6,770,472 42,135,186 69.43 29,253,250 21,970 9,769,966 66,432,640 79.61 52,866,600 52,535 2,442,911 13,705,046 62.39 8,550,013 17,903 1,018,258 3,447,340 64.05 2,207,971 1,034 1,252,196 6,099,417 68.77 4,194,507 4,785 13,545,000 85,958,000 75.07 64,528,800 13,464 11,374,123 101,975,305 72.51 73,943,962 99,916 Air France British Airways Cathay Pacific Delta Emirates Air Gulf Air Iran Korean Air Kuwait Airways Malaysia Northwest Pakistan International Qatar Royal Jordanian Singapore United Airlines 2000 Revenue Passengers Available Seat - Passenger Passengers Carried Kilometers Load Factor Kilometers Employees 104,309,604 79.07 82,481,799 22,766,954 56,426 31,249,001 161,326,868 71.34 115,087,911 55,263 11,843,853 61,846,659 76.15 47,096,989 14,328 7,677,945 54,928,219 77.18 42,394,253 72,777 5,488,924 26,079,520 74.44 19,413,418 7,777 4,239,916 17,512,445 70.56 12,356,224 5,000 968,925 4,335,324 58.85 2,551,346 10,000 8,350,739 49,423,320 72.9 36,029,580 16,195 2,122,732 8,783,877 69.87 6,137,195 4,394 7,422,375 44,589,028 73.81 32,912,605 22,064 10,625,922 70,987,141 81.09 57,566,451 54,390 2,785,019 15,758,798 64.11 10,103,655 17,472 1,290,512 4,698,310 60.82 2,857,529 1,381 1,281,997 6,169,716 68016 4,206,567 3,638 14,874,000 92,304,000 76.7 70,795,300 14,484 11,778,308 108,164,569 73.77 79,797,186 101,814 Air France British Airways Cathay Pacific Delta Emirates Air Gulf Air Iran Korea Air Kuwait Airways Malaysia Northwest Pakistan International Qatar Royal Jordanian Singapore United Airlines 2001 Revenue Passengers Available Seat - Passenger Passengers Carried Kilometers Load Factor Kilometers Employees 112,352,645 75.99 85,377,833 24,379,107 59160 28,112,806 143,697,893 69.51 99,866,610 55,308 11,177,265 62,746,154 71.32 44,751,488 14,473 7,181,743 55,536,880 71.47 39,692,875 64,652 6,425,778 31,480,219 73.46 23,125,924 8,974 3,687,785 17,183,985 67.71 11,634,610 5,159 1,040,142 4,602,588 58.57 2,695,627 9,439 8,137,741 49,184,672 68.79 33,833,657 16,820 2,096,235 8,963,285 67.07 6,011,269 4,324 7,015,651 45,792,348 66.97 30,666,299 21,974 9,689,299 67,440,913 77.97 52,583,983 46,161 2,690,295 15,032,179 65.58 9,858,295 17,085 1,528,040 5,539,528 61.99 3,433,790 1,651 1,178,058 5,917,937 65.03 3,848,438 3,569 14,696,000 94,202,782 73.06 68,821,519 14,458 11,229,748 105,876,539 71.68 75,894,294 84,113 Air France British Airways Cathay Pacific Delta Emirates Air Gulf Air Iran Korea Air Kuwait Airways Malaysia Northwest Pakistan International Qatar Royal Jordanian Singapore United Airlines Exhibit 8 UNITED ARAB EMIRATES - Economic Data 1992 - 2003 Series Name GDP (% real change pa) Nominal GDP (US$ at PPP) Real GDP Real GDP (PPP US$ at 1996 prices) Real GDP (US$ at 1996 prices) Private consumption (% of GDP) Exports of G&S (% of GDP) Imports of G&S (% of GDP) Domestic demand (% of GDP) Gross national savings rate (%) Gross national savings/investment Agriculture/GDP Industry/GDP Services/GDP Petroleum production (b/d) Petroleum reserves (barrels) Consumer prices (% change pa; av) Exchange rate LCU:US$ (av) Lending interest rate (%) Exchange rate LCU:$ (end-period) Real effective exchange rate Public debt Public debt (% of GDP) Money market interest rate (%) Consumer price index (av) Consumer price index (1996=100; av) Consumer price index (end-period) Population GDP per head Population (% change pa) Labour force Private consumption per head Real GDP growth per head (% pa) Current account balance/GDP Inward direct investment International reserves Current-account balance Goods: exports fob Goods: imports fob Trade balance IMF credit Change in international reserves Foreign-exchange reserves Gold, national valuation Capital flight Total foreign debt Public medium & long-term Private medium & long-term IMF debt Short term Net debt Total foreign debt service, paid Short-term debt (interest only) IMF debits Total exports fob Export 1 Tourism receipts Export market 1 (% share) Import market 1 (% share) Export 1 (% share) Unit % mil USD mil AED mil USD bil USD % % % % % % % % % th b/d mil barrels % AED/USD % AED/USD X bil USD % % X X X million USD % million USD % % bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD bil USD % % % 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2.69 -0.9 6.5 6.7 5.9 8.1 1.1 3.7 6.9 1.3 2.4 3.1 34383 34073.5 36288.3 38719.6 41313.8 43751.3 47295.2 47815.4 49585 53006 53695 54983.711 130535.8 129361 137769.4 147000 155673 168282.5 170133.6 176428.6 188602 191054 195639 201704.075 34643 34331 36562 39012 41314 44660 45152 46822 50053 50704 51920 53529.94 37.392 37.056 39.464 42.108 44.593 48.205 48.735 50.538 54.025 54.728 56.041 57.778422 44.538 44.215 45.097 47.143 45.449 47.572 53.134 46.691 43.676 46.934 47.9 47.1 70.769 75.402 77.86 74.422 76.848 70.971 67.37 62.222 74.032 72.485 69.3 70.2 57 66.897 70.282 67.347 64.692 62.196 67.37 52.532 56.064 60.646 59.8 59.3 86.231 91.494 92.422 92.925 87.844 91.225 100 90.31 82.032 88.161 90.5 89.1 39.1 50.2 32.6 32.8 40.3 39.5 35.5 37 47.4 43.6 37.9 38.4 161.9 170.9 111.2 115.2 152.7 140.3 117.9 139.7 206.9 179.6 149.7 153.6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3 3 3 3 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 52 52 49 49 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 45 45 48 48 2290 2170 2220 2200 2227.5 2280 2300 2115 2239.167 2157.5 1995 2125 98100 98100 98100 98100 98100 97800 97800 97800 97800 97800 97800 97800 6.825 4.703 5 4.4 2.589 2.035 1.994 2.1 1.8 2 2.8 3 3.671 3.671 3.671 3.671 3.671 3.67112 3.6725 3.6725 3.6725 3.6725 3.673 3.673 0 0 7.6 7.58 9.7 9.5 9 10.6 9.73 8.2 6.8 6.5 3.671 3.671 3.671 3.671 3.671 3.6725 3.6725 3.6725 3.6725 3.6725 3.673 3.673 95.294791 91.434823 87.512858 83.110659 91.051675 100 113.2 103.7 101.7 112.2 113.1 n.a. 2.608008717 7.180849905 6.854862435 6.653255244 4.376382457 5.191204901 6.728304969 8.895820286 9.229680054 10.20884956 11.57119521 12.73221263 7.365 20.2 18.696 16.615 9.814 10.521 14.476 15.351 13.1 15.1 16.6 17.3 3.65 2.67 4.309 5.682 5.176 5.445 4.4 5.26 6.47 3.9 1.6 1.4 112.7 118 123.9 129.352 132.7 135.4 138.1 141 143.5 146.4 150.5 155 84.928 88.922 93.369 97.477 100 102.035 104.069 106.255 108.1 110.3 113.4 116.8 n.a. 120.95 126.626 131.026 134.05 136.75 139.55 142.25 144.9 148.4 152.7 156.5 2.16 2.1 2.29 2.31 2.44 2.62 2.78 2.94 3.108 3.29 3.48 3.67 16,395 16,928 16,011 17,335 18,276 18,839 16,720 19,710 22,602 20,520 20,110 20,080 3.349 -2.778 9.048 0.873 5.628 7.377 6.107 5.755 5.714 6 5.5 5.5 0.77 0.86 0.941 1.074 1.27 1.35 1.41 1.54 1.71 1.89 2.08 2.27 7302 7484.7 7220.5 8172.2 8306.1 8962.1 8883.8 9202.9 9871.4 9630 9630 9450 -0.638 1.931 -2.336 5.776 0.258 0.673 -4.719 -1.944 1.1 -4.4 -2.9 -2.3 14.9 20.8 3.3 4.3 13.9 11.3 5.4 10.5 24.5 19.3 12.6 13.4 0.111 0.111 0.062 0.399 0.13 0.1 0.1 0.16 0.18 0.21 0.25 0.2 5.8938 6.2862 6.8405 7.6526 8.2383 8.5536 9.2584 10.7658 13.6134 14.2374 14.541 14.941 5.292 7.4 1.2 1.734 6.2 5.6 2.5 6.1 17.2 13.057 8.803 9.866767 24.271 26.8 27 30.434 37.3 40.5 33.8 36.5 48.9 46.858 44.989 48.012134 -15.827 -21 -24.1 -26.9 -26.9 -30 -28.7 -27.9 -28.6 -29.601 -30.785 -32.170367 8.444 5.8 2.9 3.534 10.4 10.5 5.1 8.6 20.3 17.257 14.203 15.841767 0 0 0 0 0 0 0 0 0 0 0 0 -0.3467 -0.3924 -0.5543 -0.8121 -0.5857 -0.3153 -0.7048 -1.5074 -2.8476 -0.624 -0.304 -0.4 5.7118 6.1037 6.6588 7.4709 8.0555 8.3723 9.0771 10.6751 13.5227 14.1464 14.45 14.85 0.182 0.1825 0.1817 0.1817 0.1828 0.1813 0.1813 0.0907 0.0907 0.091 0.091 0.091 -5.777 -6.989 -2.726 1.263 -7.183 -6.748 -7.518 -5.324 -14.022 -12.323 -10.062 -10.663466 10.983 10.963 13.401 10.827 10.876 12.349 18.172 18.923 18.613 18.513 20.065 21.322059 2.608 3.821 3.434 3.17 1.545 2.713 3.265 4.614 5.804 7.204 8.304 9.329 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8.375 7.142 9.967 7.657 9.331 9.636 14.907 14.309 12.809 11.309 11.761 11.993059 5.0892 4.6768 6.5605 3.1744 2.6377 3.7954 8.9136 8.1572 4.9996 4.276 5.524 6.381059 0.948 0.791 1.409 1.146 1 0.968 1.633 1.612 1.822 1.468 1.216 1.186696 0.365 0.293 0.458 0.659 0.55 0.593 0.749 0.937 1.021 0.577 0.323 0.280172 0 0 0 0 0 0 0 0 0 0 0 0 24.2713 23.6448 27.3849 29.1719 35.116 38.829 34.029 40.4 51.838 46.858 44.989 48.012134 14.0561 12.122 11 11.8 14.2 14.41 9.623 12.893 19.806 16.253 15.139 17.414173 24.2713 23.6448 27.3849 29.1719 33.596 33.999 31.071 36.474 49.835 46.636 43.456 46.525966 38.931 38.499 38.596 38.39 37.773 35.795 29.294 29.124 32.641 31.149 n.a. n.a. 8.849 9.155 8.671 8.402 11.017 11.276 10.082 8.524 6.287 6.852 n.a. n.a. 57.912 51.267 40.168 40.45 40.4 37.1 28.3 31.9 38.2 34.7 33.7 36.3 20 Exhibit 1 United Arab Emirates Current 2002 Data Population (millions) Major Cities Age: 0-14 years 15-44 years 45 years and over Population Growth Literacy Total Labor Force (millions) Unemployment Wage Rate (monthly) GDP ($US billions PPP) GDP Per Capita ($US PPP) GDP Growth Rate (Real) Inflation Currency Exchange Rate (Per $US) Government Structure Leader External Debt ($US billions) Short -term Interest Rate Current Account Balance ($US billions) Highways (Total/Paved) (km) Shipping Ports **Source: CIA World Factbook 2002 3.50 Abu Dhabi (capital), Dubai, Sharjah 27.70% 69.70% 2.60% 1.58% 79.20% 1.6 2.40% Dh8,000 (college grads), Dh5,000 (HS grads) $ 51 $ 21,100 5.60% 4.50% Emirati dirham (AED) 3.6725 Federation President Zayid bin Sultan Al Nuhayyan $ 12.60 6.23% $ 19 4835 Ajman, AlFujayrah, Das Island 13 Exhibit 2 Middle East Comparison Data (2000-2002) IRAN - Selected series fro m 2000 to 2002 Series Nam e GDP (% real change pa) Nominal GDP (US$ at PPP) Exchange rate LCU:US$ (av) Stockmarket index Change in $ value of stockmarket index (% pa) Population GDP per head IRAQ - Selected series fro m 2000 to 2002 Series Nam e GDP (% real change pa) Nominal GDP (US$ at PPP) Exchange rate LCU:US$ (av) Population GDP per head QATAR - Selected series fro m 2000 to 2002 Series Nam e GDP (% real change pa) Nominal GDP (US$ at PPP) Exchange rate LCU:US$ (av) Stockmarket index Average real wage index (LCU, 1996=100) Average real wages (% change pa) Change in $ value of stockmarket index (% pa) Population GDP per head SAUDI ARAB IA - Selected series fro m 2000 to 2002 Series Nam e GDP (% real change pa) Nominal GDP (US$ at PPP) Exchange rate LCU:US$ (av) Stockmarket index Population GDP per head UNITED ARAB EMIRATES - Selected series fro m 2000 to 2002 Series Nam e GDP (% real change pa) Nominal GDP (US$ at PPP) Exchange rate LCU:US$ (av) Population GDP per head ($ at PPP) Un it % mil USD AED/USD million USD 2000 6.9 49585 3.6725 3.108 2001 1.3 53006 3.6725 3.29 2002 2.4 53695 3.673 3.48 Un it % mil USD SAR/USD X million USD 2000 4.857 227977.3 3.745 225.8 20.35 2001 1.186 236132.3 3.745 260 21.03 2002 0.6 240503 3.745 280 21.7 Un it % mil USD QAR/USD X X % % million USD 2000 7.2 17241 3.64 n.a. n.a. n.a. n.a. 0.57 2001 5.2 18566 3.64 n.a. n.a. n.a. n.a. 0.6 2002 3.4 19437 3.64 n.a. n.a. n.a. n.a. 0.61 Un it % mil USD IQD/USD million USD 2000 4 81211 n.a. 22.95 2001 -6 78142 n.a. 23.58 2002 -4.5 74626 n.a. 24.22 Un it % mil USD IRR/USD X % million USD 2000 5.198 445788.8 8077.6 2978.26 35.018 63.66 2001 4.965 478977.9 7921.5 n.a. n.a. 64.53 2002 5.7 512711 7937 n.a. n.a. 65.5 1,106 1,302 1,700 1,380 1,180 1,060 28,874 26,940 28,450 9,274 8,870 8,510 22,602 20,520 20,110 Mid d le East Co m p ariso n Data 2002 Iran GDP (% real change pa) (2000-2002 average) Nominal GDP (US$ at PPP) Population (millions) GDP per head Oil -- % of GDP Oil -% of government revenues Oil -% of exports Trade Policy, export to Trade Policy, import from Literacy Rate, 2002 **Source: EIU Country Data 5.288 512,711 65.5 1,700 Iraq -2.167 74,626 24.22 1,060 Qatar Sau d i Arab ia 2.214 240,503 21.7 8,510 45% 75% 90% US, Japan, South Korea, Singapore, India US, Japan, Germany, UK 78% UAE 3.533 53,695 3.48 20,110 33% 5.267 19,437 0.61 28,450 30% 72% 85% 95% 80% Japan, Italy, UAE, US, Italy Japan, Singapore, UAE France, China France Spain South Korea, US Germany, Italy, France, Australia, UK, Japan, Germany China, Japan, UAE China, Russia , Italy, US 72.10% 58% 79% Japan, India, Singapore, South Korea, Oman, Iran Japan, UK, US, Italy, Germany, South Korea 79.20% 14 Exhibit 3 Population (millions) 70 60 50 40 30 20 10 0 Iran Iraq Qatar Saudi Arabia UAE 15 Exhibit 4 Change in GDP (%) 6.000 5.000 4.000 3.000 2.000 1.000 0.000 Iran -1.000 Iraq Qatar Saudi Arabia UAE -2.000 -3.000 16 Exhibit 5 GDP per Capita (USD) 30,000 25,000 20,000 15,000 10,000 5,000 Iran Iraq Qatar Saudi Arabia UAE 17 Exhibit 10 UAE Change in GDP (%) 9 8 7 6 5 4 3 2 1 0 1992 -1 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 -2 22 Exhibit 9 UAE GDP (US millions) 60000 50000 40000 30000 20000 10000 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 21 Exhibit 12 UAE Exchange Rate (AED/USD) 3.6735 3.673 3.6725 3.672 3.6715 3.671 3.6705 3.67 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 24 Exhibit 13 UAE Interest Rates 12 10 8 6 4 2 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 25 Exhibit 6 UAE Population (millions) 4 3.5 3 2.5 2 1.5 1 0.5 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 18 Exhibit 7 UAE Population Growth (%) 10 8 6 4 2 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 -2 -4 19 Exhibit 11 UAE GDP Per Capita (USD) 25,000 20,000 15,000 10,000 5,000 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 23