Federal Aviation Administration

1

• Federal Aviation Administration
• Forecast Conference
• March 17, 2005

2
Air Taxi Service

• A new low cost, easy to use Private Jet Value
  Proposition for time sensitive travelers
• Very low price never exceeding 6.00 per mile
• Substantially faster than scheduled air from
  smaller, less crowded, hassle-free airports
• Car service like accessibility
• High quality, professionally trained personnel
• Private jet experience

• 225 aircraft and more than 2000 airports
• Trips up to 500 Miles
• Accessible and consistent
• Easy, like calling a car service

3
Pogo Leadership

• Donald Burr - Chief Executive Officer and
  President
• Chairman and Chief Executive Officer of SBS
  International, a leading provider of scheduling
  software to the airline industry (recently sold
  to Boeing)
• Founder and Chief Executive Officer of People
  Express Airlines
• President and Chief Operating Officer of Texas
  International Airlines, which acquired and became
  part of Continental Airlines
• President of National Aviation, a closed-end
  investment company specializing in aviation
  investments including early-stage and
  reorganizations
• Cameron Burr Executive Vice President and Board
  Member
• Partner at The Burr Group and Director of
  Corporate Development of SBS International
• Hambrecht Quist and PaineWebber where he
  specialized in convertible bond financings
• David Leblanc Chief Financial Officer and
  Treasurer
• Partner at The Burr Group and Chief Operating and
  Chief Financial Officer of SBS International
• Spent several years working in the airline
  industry with First Equity Development and Air
  Canada
• Mike Bristow - Chief Operating Officer
• Co-founder and head of operations at Vanguard
  Airlines, based in Kansas City, MO.
• Captain for Continental Airlines
• General Manager for People Express Airlines with
  responsibility for reservations,
  telecommunications, computer operations, and
  inventory control
• U. S. Air Force - Deputy Director of the worlds
  largest repair and overhaul facility for aircraft
  landing gear

4
NASAs Small Aircraft Transportation System
(SATS) program provides the backdrop
Transformation is occurring
Significant time savings can be realized
Jet Air Taxi Commercial Air Service Prop Air
Taxi Car
Much of the required infrastructure is already in
place
5
Launch Market

• Northeast region, defined as the area within 500
  miles of New York City
• There are 1.3 million high-earning, frequent
  flying people in this area
• These individuals currently average 38,800,000
  domestic trips/year
• Approximately 25 of those trips are under 500
  miles, resulting in 9.7 million POGO-able
  customer trips a year
• POGO's total customer trip count by the end of
  our second year of operations will be
  approximately 92,000
• POGO's 1st year revenue forecasts will be met by
  satisfying less than 1.0 of current demand

6
Brand Positioning Strategy
For time-pressed, High Performance individuals,
Pogo is the revolutionary air taxi service that
makes the benefits of on your terms private
jet travel accessible, affordable and convenient
to those whose lives most demand it.
Affordable Luxury for High Performance, Mass
Affluent and Critical Business Tool for Small,
Growing Business Entrepreneurs
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Pricing Strategy

• Simple and consistent pricing. Customers will be
  charged a maximum of 6.00 per Mile per Airplane
• Significantly and consistently cheaper than other
  private jet alternatives
• Yield management practices to manage demand
• Reduced pricing for off-peak use
• Reduced pricing on repositioning flight

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Operating Model Key Strategies

• Operating System Comprehensively Different
• Single aircraft type 75 Very Light Jets
• First very light jet with very low acquisition
  and direct operating cost
• One support, maintenance, and training process
• Regional 650 airports / 500-mile flight radius
• Best use of aircraft operating capabilities
• Network efficiency reduced backhaul
• Facilities
• Variable cost, no investment
• Information Technology
• Maximize use of real-time information in decision
  process
• Optimize network efficiencies and revenue
  opportunities
• Web-based flight request, confirmation and
  revenue capture
• Marketing
• Very low prices, pay at time of booking
• Accessible short fulfillment times with
  consistency and reliability
• Personalized service information driven and
  customer focused database coupled with motivated
  service providers

• Operations
• Customer support and flight dispatch
• Operations control center with cross-functional
  operations teams
• Customer communications
• Destination support requirements
• Flight assignment and monitoring
• Maintenance and Support
• Progressive air carrier fleet management system
• Co-locate with VLJ OEM
• Fixed price contract with VLJ OEM for parts and
  maintenance
• People
• Recruit customer service oriented individuals
• Comprehensive recruiting, training, motivation,
  and compensation programs
• Pursue cross-utilization approach to staffing
• Whenever geographically appropriate

9
Information Technology Strategy

• Leading edge information technology
• Optimization tools such as network management,
  tail assignment and day of operation repair
• Customer relationship management
• Integrated end-to-end software suite that will
  highly automate and optimize the use of the first
  very light jet innovation in an on-demand
  environment
• Benefit from a late-mover position in the
  development of information technology
• Integrated, Web-based, end-to-end software
  solutions that minimize cost while maximizing
  network revenue and customer service
• POGO will use the latest real-time data gathering
  and decision support systems
• Customer request evaluation and fulfillment
• Flight dispatch
• Aircraft maintenance
• Personnel support
• Regulatory compliance

10
Pilot Strategy

• Pilots in our model are central to safety,
  service delivery (revenue) and cost control
  (fuel) they are double leveraged both positive
  and negative
• Safety
• 2 Pilots
• Pilots will be trained to an air carrier standard
  and pilot-in-command proficiency
• The pilot-in-command will be type rated and hold
  an ATP (Air Transport Pilot) certificate
• Single aircraft type permits standardized flight
  training and operating procedures
• High levels of service and productivity requires
  concerted, consistent leadership attention
• A highly focused, disciplined recruiting,
  training and motivation program that emphasizes
  safety, service delivery, and efficiency
• Rigorously design, develop and use programs that
  are comprehensively responsive to key pilot
  metrics such as, pay, schedule and respect
• Specific programs include
• Comprehensive compensation plan -  salaried base
  pay, profit sharing, equity, and other benefits
• Teamwork
• "Open-book" communication
• Cross-utilization      

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Investment Highlights

• Market Opportunity
• Compelling value proposition very low priced,
  time saving, on demand private jet travel
• Very large market potential
• No one serving this market
• Operating technology currently available
• Highly productive operating model
• Current aircraft and engine production provides
  lead time advantage
• Available Enabling Technologies
• Aircraft, engine and avionics technology
• Very first, very light jet
• Low acquisition price and DOCs (Direct Operating
  Costs)
• Lighter, simpler aircraft, avionics and engine
  has positive maintenance and utilization benefits
• Advanced digital all-glass cockpit
• Integrated information systems
• Optimization of revenue and operating model
• CRM technology
• New support technology
• FAA

• Leadership Team
• Experienced in identifying aviation growth
  opportunities and delivering value to investors
• Experienced in air carrier operations
• Knowledgeable in the use and deployment of
  leading-edge technology
• Financial Returns
• Powerful scalability drives rapid growth in
  revenue and net income
• Operating cash flow positive within 12 months of
  start-up
• Projected to have self funding operating cash
  flows post equity capital of 40.0M