Business Leaders Forum

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Business Leaders Forum Andrew Strong, Chief
Operating Officer
March 2009
Europes Largest and Most Successful Regional
Airline
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Flybe Today
Flybe is Europes largest and most successful
regional airline

• Serving 13 countries
• Over 190 routes flown
• Operating from 36 UK and 30 European airports
• Largest airline at 9 UK airports by flights
• 7.5m passengers 2008.
• Revenues of 536m in 2007/08, record profits of
  35.4 million.
• Fourth most spontaneously recalled aviation brand
  in the UK
• Operating 73 Aircraft
• Over 500 flights a day.

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Flybe Today - What is different about Flybe?
Breakdown of Flybes Route Network

• Flybe has a unique market position
• Number one UK domestic regional point to point
  airline
• Number one UK regions to major European Cities
  airline
• Number one UK to regional France airline.
• Flybe has a defendable regional network
• Minimal competitive threat from surface transport
  
• 84 routes cross water
• No trunk rail competition
• 3 routes under 3 hours drive time / 3 routes
  under 4 hours train time
• Flybe is largest airline at 9 UK airports, many
  of which are capacity or operationally
  constrained (eg Southampton and Belfast City)
• Flybe operates mainly routes that are uneconomic
  to 150 seat aircraft

(1)

• ____________________
• Visiting Friends and Relatives
• Q2 2007

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Flybe Today - The Optimal Aircraft for Our
Regional Routes
Investment in right-sized fleet - economic,
environmental and customer appeal

• Economics
• Bombardier 78 seat Q400 - jet performance (speed
  and range) combined with turboprop economics
• Embraer 118 seat E195 - makes money across the
  network
• No regional airline has the seat costs of Flybe
  due the economics of the Q400 and the E195
• Flybe can offer 2 one hour flights on a Q400 for
  the same cost as one flight on a 150 seat jet.
• Environmental
• Environmentally sensitive/lower carbon and noise
  footprint.
• Customer Appeal
• 2x2 seat configuration (all customers have aisle
  or window)
• At least 30 inches of leg room on Q400 and E195
• Following fleet substitution the average fleet
  age will be 2.7 years.

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Flybe - Proud to be Serving the South West

• Flybe Headquartered at Exeter
• Over 800 Employees with an Exeter Postcode and
  employing over 1,200 staff at Exeter
  International Airport
• Engineers 650
• Pilots, Cabin Crew, 120
• Others - 450
• Passengers Approx 750,000 per year
• Routes 26 on 5 based aircraft

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What you may not know - Flybe Aviation Services
Flybe has built the largest Regional Aircraft MRO
business in Europe
In 2005 Flybe invested 14m in new hangar
facilities with support from SWRDA
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Flybe Aviation Services
Flybe has built a large Portfolio of Regional
Airline MRO Customers
Aircraft Manufacturers
Lufthansa Group
Scandinavian Airlines Group
Air France/ KLM Group
European Airlines
Worldwide Airlines
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Aviation Services A local success story
Industry Leading Facilities Now employing 850
engineers in the UK, 650 at Exeter Doubled the
number of highly skilled jobs in the last 3
years Capability on Embraer, Bombardier, ATR and
BAe Systems commercial aircraft Over 750,000
hours worked per annum Attracting 70 of work on
customer airlines from across the world
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Following the Aviation Services business model
Flybe Training is already establishing a large
customer base

• Flybe has developed a training methodology that
  is tailored to the need of an airline but has now
  expanded its capability to better serve the
  aviation industry as well as the local business
  community
• The Flybe partnership with Exeter College and
  University has launched new academic courses
  including a unique modern engineering apprentice
  scheme and a cabin crew transferable NVQ
• Flybe is the first UK private business to be able
  to award its own academic qualifications to
  degree level standard

Cabin Crew Training
Technical Training
Customer Delivery
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Training Academy will replicate the Successful
Aviation Services Model..

• Develop a state of the art Training Academy in
  Partnership with Exeter College and Exeter
  University
• 25 classrooms including e-learning
• 4 Full Flight Simulators
• Engineering Apprentice Workshop
• 2 Cabin Crew Door / Slide Trainers
• Designed with environmental credentials
• Campus style concept
• Adjoining 150 bedroom 4 star hotel

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Developing pilot training capability in the South
West
C
Flybe is anticipating the completion of a new
Flybe Academy for Summer 2010 and will include an
investment of 40m in electric motion flight
simulators
Flybe is the first in the UK to launch a new
Multi Pilot Licence scheme specific to Flybe and
tailored for the future growth plans of the
airline
This is the continuation of the Flybe desire to
bring high skilled employment and training to the
South West.