Dr. Dinesh Keskar

1
Boeings Outlook on EmergingAir Cargo
MarketJanuary 24, 2008

• Dr. Dinesh Keskar
• Senior Vice President Sales,
• Boeing Commercial Airplanes

2
Agenda

• World Air Cargo Forecast
• India Cargo Market
• Boeing Freighter Products
• Summary

3
World Air Cargo Grew 5.1 in October 2007
Relative to Traffic Levels of October 2006
Monthly Percentage Change Over Prior Year
Sources U.S. Department of Commerce, AAPA, AEA,
ATA and the Boeing World Air Cargo Forecast.
4
World Air Cargo Traffic Is Expected To Triple
Over the Next 20 Years
RTKs, billions
History
Forecast
Average annual growth, 2005 to
2025 High 6.9 Base 6.1 Low 5.3
5.1 growth per year
YEAR
5
World Air Cargo Traffic Will Triple, and Asia
Will Lead Industry Growth
Europe-Asia 6.9 Average Annual Growth through
2025
Asia- North America 7.1 Average Annual Growth
through 2025
Intra-Asia 8.6 Average Annual Growth through
2025
As intra-Asia, Transpacific and Europe-Asia
routes will lead growth, the market will
increasingly demand long range, low
tonne-kilometer cost service.
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In-Service Freighter Fleet will DoubleWith a
Shift Toward Widebody Freighters
Large (gt80 tonnes) Medium widebody (40-80
tonnes) Standard-body (lt45 tonnes)
2026
2006
3,980freighters
1,980 freighters
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Freighters Will Remain 11 of the Worlds Jet
In-Service Fleet in the Future
Y2026
Y2006
Freighters
Freighters
36,420 Airplanes
18,230 Airplanes
8
Future Deliveries of New Aircraft2007 - 2026
Large2
LargeFreighters72
Freighters3
MediumWidebody26
Standard-body 2
Total 28,600
Total 870
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Freighter Fleet Growth Forecast Thru 2026 Nearly
Three-Quarters Will Be Converted Units
Freighter aircraft, units
New freighters
Fleet additions, 3,350 units
Conversion market
Current/retained fleet
630 units
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Future Freighter Deliveries New and Converted
2007-2026
Standard-body (lt45 tonnes) Medium widebody
(40-80 tonnes) Large (gt80 tonnes)
Standard-body 1,290 total
630 new
Large 1,090 total
1,270 converted
460 converted
220 new
20 new
750 converted
Medium Widebody 970 total
Total 3,350 Units (2,480 Converted, 870 New)
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Asia Will Receive the Most Large
Freighters Number of New and Converted Airplanes,
2007-2026
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Indias Cargo Market
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India GDP growth has averaged well over 6 over
the last 10 years
Actual
Forecast
Source The Economist
14
Increased Twin Aisle Deliveries to India Will
Boost Belly Cargo Y2007 - Y2026
In year 2006 dollars Catalogue Prices
Source Boeing Current Market Outlook 2007
15
Scheduled International Indian Air Cargo Traffic
Has Grown 9.9 per Year Over the Last 5 Years
Metric tons (tonnes) enplaned, thousands
Source Statistical Division of the Director
General of Civil Aviation, India
Source Statistical Division of the Director
General of Civil Aviation, India
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Europe, Far East Asia and the Middle East
Comprise Indias Three Largest Scheduled Cargo
Traffic Flows
Metric tons (tonnes) enplaned, thousands
historic five-year growth rate, percentage
Europe to India 122.8 / 7.3
India to Far East Asia 87.9 / 8.7
India to Europe 187.3 / 7.3
Far East Asia to India 121.3 / 18.7
Middle East to India 57.1 / 17.9
India to the Middle East 151.1 / 6.0
Source Statistical Division of the Director
General of Civil Aviation, India, Financial Year
2005-2006 data. Non-Scheduled (charter) and
sea-air traffic NOT included.
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Leading Indian Air Cargo Airports
The size of the Indian international and domestic
air freight market in 2006 was estimated to be
1,500,000 tonnes, up about 10 from 2005.
Leading air freight airports in terms of tonnage
were
Mumbai 478,600 Delhi 398,437
Chennai 233,769 Bangalore 165,406 Kolkata
83,528
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Domestic Indian Air Cargo Traffic Will Expand at
9.1 per Year, Although from a Small Base
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Private carriers are leading the way in cargo
carried
Source India DGCA
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Current India Freighter Fleet
In-Service Freighter Fleet Consists of 12
Aircraft
Source AirClaims reported as of Nov 14, 2007.
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Boeing Offers Freighter Solutions For Every
Market
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Record Freighter Orders
Boeing freighters sets third consecutive record
sales year
2005
2006
2007
83
81
74
Note Orders reflected are net orders for the
year.
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Boeing offers a complete line of freighters to
meet the market needs
Revenue payload 1,000-kg (1,000-lb)
Boeing
Airbus
747-8 F
A380F
747-400F/-ERF
747-400BCF
777 Freighter
MD-11BCF
767-300F
A330-200F
A300-600F
767-300BCF
A300-600P2F
767-200SF
A310P2F
757-200SF
737-700C

• Revenue payload does not include tare weight.
• Boeing assessment.

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The 777 Freighter - Widebody Freighter With
Twinjet Economics
Carries Industry-standard 3-m High Pallets
and 159 kg/m3 Density Cargo
Medium-largesize offers low risk Quiet for
nighttime departures
Large CargoDoor
103 Tonnes Max Structural Payload
Long-range Capability
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777 Freighter Customers and Firm Orders
5
8
8
6
15
5
14
6
Unidentified Customers
2
6
5
2
82 firm orders from 12 customers worldwide

• As of October 31, 2007.

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The 777 Freighter delivers

• 103-tonne (226,700-lb) revenue payload capability
• The longest range twin-engine freighter
• Lowest trip cost of any large freighter
• 19 to 40 fuel per tonne advantage over todays
  freighters
• High commonality with 777 passenger airplanes
• Mixed-fleet flying potential with 747 and 787
• Same airport infrastructure as 747F
• Capable of hauling real world densities
• Meets Stage 4/QC2 noise regulations

797-WD-0261 8-24-5-CF/JW
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747-8F The right choice for the large freighter
market

• Proven Market Leadership
• New revenue opportunities
• Lowest tonne-mile costs of any freighter
• Key commonality with existing fleets
• Environmental benchmark for large freighters

BOEING PROPRIETARY
BOEING PROPRIETARY
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9 out of the Top 10 World Air Cargo Carriers Use
747 Freighter Aircraft
Building on the Proven Performance of the 747
Freighter

• These top carriers represent more than one-third
  of world air cargo traffic

Source International Air Transport Association,
company reports, Air Cargo World research
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Boeing Widebody Freighter Performancemax design
range at structural limit
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Boeing Converted Freightermuch more than a
conversion

• Boeing freighter airplane
• Created from production-passenger and
  production-freighter airplanesby the same OEM
  team
• Based on experience of hundreds of conversions
• Conforms to Boeing standardsengineering, product
  integrity and safety, certification, program
  management, and support
• High-quality, low-risk, on-schedule execution
• Boeing management and commitment
• World-class supplier-partners
• Proven track record
• Operational flexibility
• Fully integrated data and manuals
• Payload-range advantages
• Seamless global in-service support
• Support network for the whole airplane
• Spare parts commonality with production freighter

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747-400BCF customer status
6 2 firm 3 5 firm 4 4 firm 4 3
firm 4 3 firm 3 1 3 firm 2 firm 25
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In Service On Order
2 combis combis
Data as of December 31, 2007
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Summary

• World air cargo growth was accelerating in 2007
  and grew nearly 5
• The world freighter fleet will nearly double to
  3980 aircraft by 2026, primarily led by
  widebodies
• Markets connected to Southwest Asia will expand
  from 6 to 6.5 per year while domestic India
  will expand 9.1 per year over the next 20 years
• India is projected to have leading GDP going
  forward enabling great opportunities for cargo
  market growth
• Over 90 of worldwide freighter airplane capacity
  is flown by Boeing aircraft
• Boeing offers the most comprehensive freighter
  solutions to meet varying market demands

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