Stephen Embree

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EAGLE EXPRESS aka AMERICAN EAGLE

• Stephen Embree
• Johnny Fratila
• Dennis Gibbs
• Jodie LaFreniere
• Jim Lutz
• Dana Ursea

2
Overview

• 1. Mission Statement
• 2. History and Financial Background
• 3. Key Incidents
• 4. Financial Information
• 5. Conclusion and Future Outlook

3
Mission Statement

• Most reliable airline in all markets served
• Expand from 4 to 15 markets by 3rd quarter
• Increase number of of planes by 400 by 3rd qtr.
• Increase reliability and on-time service
• Raise productivity to above the industry average
• Decrease employee turnover
• Increase number of business contracts
• Raise ROE to greater than 15 by quarter 12
• Decrease the reliance on travel agents each qtr.

4
Tactical Decisions

• Acquire only one type aircraft
• Aircraft Type C chosen
• Pressurized
• Accommodates Flight Attendant
• Suited for
• 400 Mile Markets most numerous
• Cabin Service 2 Assumed Max Usable
• Smaller aircraft max flexibility with varying
  market

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Tactical Decisions

• Employee Compensation 20 Profit to All
• Be Number Two in Wages
• Dividend Policy 1.2 increase/qtr/share
• Advertising and Promotion 1.5 X Ave/Mkt
• Average Sales Force/Market
• Quality and Training 1.5 X Ave/Plane
• Price .42 - No Discounts

6
First Quarter B/I 120

• Sold 3 Type A Aircraft
• Leased 4 Type C Aircraft
• Purchased 4 Type C Aircraft
• Entered 13 Markets
• Financed
• 175K Shares of Stock Sold
• LT Loan

7
Second Quarter B/I 128

• Leased 4 Type C Aircraft
• Purchased 1 Type C Aircraft
• Entered 19 Markets
• Financed
• 360K Shares Stock Sold

8
Third Quarter B/I 147

• Leased 2 Type C Aircraft (total 15)
• Added Flights to various markets (19)
• First Positive EPS (.60)
• In Each Market - Market/Seats

9
Quarter Six/Seven/EightB/I 199 - 193 - 199

• Started Stock Buy Back Qtr 6
• Sold 2 Type C Airplanes Qtr 7
• Dual Designation
• Name Change to American Eagle
• Leased 1 Type C Airplane Qtr 8

10
Quarter Ten/Eleven/TwelveB/I 199 - 193 - 181

• Increased Cabin Service to Level 3 Qtr 10
• Turned in 1 Leased Plane Qtr 11
• Increased Price to 0.52 Qtr 11
• Sold 2 Planes/Leased 1 Plane Qtr 12

11
Key Incidents

• Many opportunities did not fit with core
  business
  
• Auto Rental Business
• Charter flight
• Transportation services for hospital
• Shuttle service for senator
• Dual-designator incident
• Station manager

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Dividend History
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Passenger Load Factor / Net Income
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Balance Sheetas of end of quarter 12
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Projections

• Revenues will increase due to contract-carrier
  arrangement.
  
• American Eagle will complete the transformation
  to luxury carrier.
  
• American Eagle will continue the stock buy-back
  program and the stable dividend policy.