CONFIDENTIAL

Investor Presentation2009

-:For Asia Pacific:-

Airnetz Aviation Pvt. Ltd.A India based Private

Limited company

-:For US, Europe and South America:-

Airnetz Charter Inc.A Delaware Closed CorporationSan Francisco Bay area office by

December 2008

http://www.netzcapital.com

CONFIDENTIAL

What is Airnetz?

Airnetz Aviation

Online Marketplace and Global

Distribution System for private jet

charter worldwide.

Virtual Private Airline

- Through listing in Amadeus,

galileo, kayak and expedia

CONFIDENTIAL

Airnetz Charter System

• Delaware Closed Corporation / India based Pvt. Ltd. Company• Started after 1 year of ground work, incorporated in March 2008• Generated about $1,000,000 (Rs. 5 Crores ) of Turnover since launch• 100% repeat business rate• Over 150 registered travel agents using airnetzcharter.com• Over 180 aircrafts in India network, 1500 aircrafts in global network• Supports over 25,000 airfields globally• Launch Target : To launch in all countries globally by FY’09• Revenue Target : $100 million of turnover by March FY03• IPO Plan : FY03

Airnetz Charter is an online marketplace and Global distribution system for worldwide private jet, turboprop, helicopter and airliner charter

services. Airnetz also has a commercial flight pool service that enables flyers to fly privately at commercial prices. Airnetz platform is used by

travel agents / resellers and global aircraft operators.

CONFIDENTIAL

Few of our Current and soon To-be Customers

Few of Other Partners (Vendors and Booking Partners)

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Turnover/Enquiries/Registered agents Chart Since Launch

Turnover Growth

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

March April May June July August

Months

Charter Enquiries Since Start

0100200300400500600700800

March April May June July August

Months

Registered Booking Partners

020406080

100120140160

March April May June July August

Months

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Public Relations

Airnetz Starts online Charter Booking- Rediff

Airnetz starts first Global distribution system for private jets - EconomicTimes

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Content

1. Team

2. Market Opportunity

3. Product & Technology

4. Business Model

5. Early Results /Early Entrant

6. Financing

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Founding Team

Co-Founder and CEOCo-Founder and Director

Atul Khekade (27)

Ritesh Kakkad (31)

Experience

Responsibilities

Flew Business Tourism Firm “Innovation Trip” from 0 to $200,000 within a year

Nominated by Businessweek as one of the top entrepreneurs in Asia under 25 (2006)

Worked as a Consultant for Citigroup via I-flex playing key role in trillion dollar global transaction system.

Worked as a consultant for Wells Fargo, Bank of America via Smartstream technologies in maintaining transaction processing system.

Co-founded Indsoft Systems and reached Rs. 40 crores annual turnover

Featured in Limca book records

Featured in BBC as Bright entrepreneur

Overall Strategy, PR, New Product launch, marketing, facilitating rapid Growth, Exploring overseas business expansion,

Strategy, Business Administration, Accounts, Finance, Recruitments, HR, Facilitating Rapid growth

CONFIDENTIAL

Current Setup

• CEO - Atul Khekade

• Director – Ritesh Kakkad

• 2 People Technology Team

• 4 People Customer Service Team

• 2 People public Relations Team

• Outsourced Legal and Accounts Department

• Rented office premises in Mumbai

CONFIDENTIAL

Content

1. Team

2. Market Opportunity

3. Product & Technology

4. Business Model

5. Early Results /Early Entrant

6. Financing

CONFIDENTIAL

Market Opportunity• Corporate executives travelling by air are increasingly opting for private aircrafts due to

time flexibility, higher safety and exclusive feeling – Private aircrafts worth $20 Billion are expected to be delivered worldwide by

2009– Aircraft charter market has seen over 50% growth in last 2 years

• Corporate executives travelling by Business class and Full Service carriers will be able to travel in their own aircrafts at the same price

– Very Light jets and Turbo prop aircrafts will be available at an hourly rate of $700 (Rs. 30,000)

– Clear-cut existing market for private aircrafts– Global Air Taxi market is worth $15 billion annually– Short distance flights to be replaced by air-taxi

• Schedule Airlines are in a consolidation phase globally– Schedule airlines are shutting down their operations, cutting flight schedules and

facing huge losses– At the same time order for private aircrafts are surging

• Opportunity of Private aviation lies in it’s system due to segmented aircraft ownership– High market entry barrier even for existing schedule airlines

CONFIDENTIAL

Market Size• 320,000 General Aviation aircrafts worldwide• 221,000 of these aircrafts are based in USA• General Aviation contributes more than $150 billion to the U.S. Economy and employs

more than 1,265,000 people• In the U.S., General Aviation aircraft fly over 27 million hours and carry 166 million

passengers annually.• Passengers for Business on general aviation are about 111 million with over 18 million

flying hours• There are over 4000 paved general aviation airports open to the public in U.S. Schedule

Airlines serve less than 500 airports• U.S has over 17,993 business operators• USA dominates the worldwide general aviation market with 70% of global market size.

Source :

Download :

2008 Briefing General Aviation Industry

Download :

2007 General Aviation Statistical Databook

INDIA

• 150 General Aviation aircrafts in India• Annual 20,000 hours of flying in 2007 for

business purposes• Over 300 airfields in India, schedule

airlines fly to only 60 of those airfields• India has around 45 business operators• Share of Indian General Aviation Market

is only 0.1% in the global market.

GROWTH

• Fractional Owners in US are 5168 in 2007 as compared to 4863 in 2006

• Total shipments in 2007 of business jets increased to 815 at 35% from 2006 year and that for turbo prop increased to 15% at 290

• Annual flying hours on general aviation in India growing at 50%

CONFIDENTIAL

Market Distribution

General (Private) Aviation Flying Hours

India

US

Europe

Middle East

Other

Flying Hours

India 25,000

US 18,000,000

Europe 1,800,000

Middle East 100,000

Other 8,000,000

Total 27,925,000

Private Aircrafts

India 150

US 221,000

Europe 26,000

Middle East 1,000

Other 72,000

Total 320,150

- 27,925,000 Flying Hours

-Average price of $1200 per hour

- $33 billion Market for Charter Arrangement growing at 15-20% globally

CONFIDENTIAL

Private Aviation MarketPrivate Jet Owners

Prepaid Jet Hours and Fractional Owners

SME preferring Charter on Hourly Rate

Air Taxi

-Billionaires

-Very High Net worth Individuals

-Bill Gates, Steve Jobs, Mukesh and Anil Ambani

- High Net worth Individuals

- Billion Dollar Corporate

- High Turnover, no loss but not so great profit

- Fractional Ownership Company

- $14 billion of turnover

-$1 billion of Revenue

-Acquired by Warren Buffet for $850 million in 2007

- Over 10 aircrafts

- Delta’s profit making business

- Offers their own as well as third party part 135 carrier aircrafts

- Corporate Executives traveling first class, full service carriers or traveling in groups otherwise go for charter available on on-demand basis

-Segmented aircraft owners making charters available to corporate through charter services divisions or brokers

Operators Brokers

- Brokers don’t provide much value

-Only Mediators

-Manual work

- Small aircrafts with different specifications for Air Taxi

- Aircrafts used :- Single Piston, Multi piston, Turbo Props and Very

Light Jets

- Airfares comparable to full service carrier tickets

- No highly profitable operator yet- Dayjet has over 50 very light jets for air taxi

-Not profitable

- Europe’s leading Air Taxi Operator

-Doing well but not profit making

CONFIDENTIAL

Various Business Models (Aircraft Ownership)

Fractional Ownership

- Net Jets is the biggest Operator in the world with over 800 private jets

-Net Jets revenues are in excess of $1 billion.

-Net Jets was acquired by warren buffet for $750 million in 1998

-Net Jets keeps its aircrafts positioned in Columbus, OH, Portugal for Europe Operators and Dubai for Middle East and Asia Operations

-Customers buy fractional ownership of NETJETS aircrafts or block hours sold by NETJETS resellers

-Customers only have to pay for the time they fly. Ferrying time is discounted.

-There are over 5158 fractional aircraft owners in USA. (Last recorded count in 2007)

On-Demand Charter Operators

( Air Taxi Operators )

- USA has over 17,993 Charter operators owning not more than 3 planes each (recorded count in 2007)

-India has only 40 Charter operators owning not more than 3 planes each (recorded count in July 2008)

-Charter operator firm is registered by an individual who wants to own a jet and also makes it available to others for on-demand flying whenever he is not using it

-US based DAYJET and UK based BLINK got started as air taxi operators but are loss making due to high capital investment and incremental monthly costs related to aircraft ownership.

-On-demand Charter operators rely on charter brokerage firms to get them customers.

-Charter brokerage firms also sell block flying hours for various Operators, this service is equivalent to block flying hours offered by NETJETS or soon to be started by BJETS in Asia.

-Club one air in India with 7 private jets, but highly loss making

-BJETS, invested by TATA, starting Indian operations from September-October 2008

None of the Aircraft Operators are profitable

CONFIDENTIAL

Various Business Models (Resellers and Brokerage)

Block Usage Resellers

- Marquis Jets sells block hours on Net Jets Planes

-Marquis Jets projected to reach $900 million in 2008, only in 7 years.

-Marquis Jets

-NAS (National Air Services) sells NETJETS flying hours in Dubai

-SHREYANS Motors sells block flying hours in India for NETJETS planes based in Dubai.

Charter Brokerage Firms

- 100s of Charter Brokerage firms in US

- Brokerage is the most profitable part of this business. Brokers get 15-20% commission on arranging a charter

-Charter brokerage firms like Halcyon Jets and Blue Star Jets sell prepaid block hours equivalent to marquis jets card offered on NETJETS planes.

-Companies like Halcyon Jets and BlueStar Jets are growing at 100% every year

-Brokerage firms just arrange the aircrafts

CONFIDENTIAL

Charter Management Systems

- Avinode and CharterX

-They provide Charter management system on subscription basis

-Some of the charter brokers use Avinode and Charter X on software as a service model

-Existing systems are too complicated for use of customers and travel agents

- They do no support amadeus or galileo listings currently.

-They are only a software and earn only from subscription charges paid by charter operators or brokerage firms.

CONFIDENTIAL

The Need- One Aircraft owner owns one to two aircraft on an average. The number of aircrafts owned can be maximum 10.

-A corporate executive needs to travel anywhere globally.

-One needs to call 1000s of aircraft owner companies to get a charter arranged for a requirement.

-90% of customers interested in charter need to know the approximate quote instantly.

-There is no centralized system which can resolve the aircraft availability, arrange the charter and automate the process to make it quickest.

Entry Barrier against Airnetz-Airnetz built the world’s first global simplistic and comprehensive Global Distribution System for private jet Industry after background work of over 1 year

-Airnetz also built the world’s first commercial flight pool system

-Airnetz currently works on level 2 Charterer agreement with Aircraft owners

-Airnetz gets client exclusivity

-Airnetz gets better rates than the market

-Airnetz will start locking the aircrafts only for it’s exclusive use as flying hours increase with the operators, this restricts anyone from entering the field by restricting them access to the pool of available aircrafts

CONFIDENTIAL

Revenue distribution in Charter

Charter Payment from Customer

Aircraft Owner70-80%

Charter Brokerage Firm20-30%

•50% Operating Cost

•30-50% Overhead Cost

•0-10% Max Profit

•Mostly Loss Making

•20-30% Net Revenue

•10-15% Operating Cost

•10-15% Max Profit

•Profit Making and growing•Limited business

opportunity due to limited aircrafts ownership

•Loss Making

•Rising ATF, reducing margins

•Big Business Opportunity, grows with marketing and PR

•Nice profit making, market showing continuous growth

•Not much affected by ATF RiseLeading Brokerage Firms

•Posting $5 million revenue every month

•Growing at 100% per year

•Halcyon Jets did IPO in 2008, 1 year after it was founded

•Posting $200 million revenue every year

•Growing at 50% per year

CONFIDENTIAL

The Real Opportunity

Problem with Charter brokerage Firms

•No Long term Asset building

•Only trading

•No market entry barrier

Long term value lies in an automated system

•Generating instant quote for customer

•Exclusive charterer agreement with aircraft owners

•Easy to use and automates the whole charter brokerage process

•Can be used by Channel partners/Travel agents/booking partners

•A company called “Charter 101” built a system that has automated the charter broking process

•Smart Branson knows real opportunity

•Branson doesn’t buy the private aircrafts but acquires company “Charter 101”

•Branson buys Charter 101(a start-up) for $50 million, retains its Founder and CTO

•“Charter 101” becomes Virgin Charter

Branson's Online Charter plane service launches

Branson said the new business will court the approximate $30 billion market for booking private air travel by letting operators market availability and allowing customers to bid and book online.

CONFIDENTIAL

Content

1. Team

2. Market Opportunity

3. Product & Technology

4. Business Model

5. Early Results /Early Entrant

6. Financing

CONFIDENTIAL

A Live Charter using Airnetz System (www.airnetzcharter.com)

Booking Partner HRG Sita opens their customized airnetz booking URL

CONFIDENTIAL

A Live Charter using Airnetz System Travel Agent generates instant

approximate quote for their

client, a fortune 500

energy company

- Airnetz is the only system that can generate instant approximate quote within a fraction of a second

-The quote can be generated for any two airfields in the world for any aircraft for helicopter type

CONFIDENTIAL

A Live Charter using Airnetz SystemTravel Agent

confirms charter with departure

time, destination and contact

details

- Airnetz offers the simplest system that even a travel agent can use.

-No other system can be used by an average person

CONFIDENTIAL

A Live Charter using Airnetz System

System suggests that a nearest

aircrafts for the requirement are 2 Gulfstream IV based in Delhi

System can request quote

from the available aircrafts

automatically or with a click of a

button by a customer service

executive

CONFIDENTIAL

A Live Charter Using Airnetz System

Operator Sends the quote which is automatically marked up and final Invoice is

sent to the customer

System Generates

Invoice and it is sent to the client for confirmation.

5% commission is included for a travel agent and will be paid to

them after charter is done.

CONFIDENTIAL

Flight Pool.com (Serving a $1 trillion + global market for business executives who want to travel

privately.

Request a Flight Pool

Book a Flight pool

Ticket

View Flight pool

Flight pool offers sharing a charter plane with other business executives for fares as much as a

business class ticket

From : Delhi To: Mumbai

(Every Monday morning 5:30 AM)Aircraft : Hawker 800 (08 Passengers)Total Charter cost : Rs. 6,00,000*Cost Per Passenger : Rs. 75,000*

Enroll for this pool

Request a Pool

From :

To :

Frequency : Weekly/MonthlyDay :

Time :

From : Mumbai To: Bangalore HAL

(Every Monday morning 5:30 AM)

Aircraft : Cessna Citation XL (08 Passengers)Total Charter cost : Rs. 5,00,000*

Cost Per Passenger : Rs. 65,000*Enroll for this pool

From : Bangalore HAL To: Mumbai

(Every Monday morning 7:30 AM)

Aircraft : Cessna Citation XL (08 Passengers)Total Charter cost : Rs. 5,00,000*

Cost Per Passenger : Rs. 65,000*

Enroll for this pool

CONFIDENTIAL

Competitive Analysis

Registered Aircraft Companies 100 50

Aircrafts in network 1500 in USA Over 700 worldwide

Geographical Existence USA Supports 25,000 airfields worldwide with all aircraft

types

Reseller/Affiliate System Yes Yes

Time to know approximate Quote Till Operator bids Instant

Registered Travel Agents 400 150

Flight Pool No Yes

Time to Arrange Charter More than 6 hours 3 Hours

Usability Complex Simple

Drawback          Operator has to keep bidding for 1000s of requests everyday without surety of charter booking          Irrelevant addition information to be filled up

-

Valuation Bought for $50 million $20 million

CONFIDENTIAL

Content

1. Team

2. Market Opportunity

3. Product & Technology

4. Business Model

5. Early Results/Early Entrant

6. Financing

CONFIDENTIAL

Business Model

Charter Payment from Customer

Airnetz Automated Charter Brokerage and

arrangement20% Net Revenue

Booking Partner5% Net Revenue

Travel Agent5% Net Revenue

Broker5% Net Revenue

Aircraft Owners

Exclusivity Agreement

Airnetz Automated

Online Charter

•Online Quote Generation

•Online Charter Request

•Finding nearest aircraft and final quote

•Sales through channel partners/travel agents/booking

partners

Affiliate or

Direct

Customer

CONFIDENTIAL

Thinking Scale• Marketing

– Television & Newspaper advertisements– Email Invitations to travel agents, customers– Customized Affiliate Brochures– SEM: Google Adwords– SEO: Constant SEO work– PR: Every week coverage in leading media

• Business Development – API for integration with Amadeus Galileo – Continuous registrations for travel agents/booking partners

• Expansion to other countries starting Q4 2008 – Country specific System can be set-up within 1 day– To be launched in USA, UK, Dubai, Asia Pacific– Launching to new country is very easy, we only need to have a master

franchise– Immediate revenue generation after launch in new country

• M&A– Acquisition of country specific charter company with license for non

schedule operations and existing customer base.

CONFIDENTIAL

Content

1. Team

2. Market Opportunity

3. Product & Technology

4. Business Model

5. Early Results/Early Entrant

6. Financing

CONFIDENTIAL

Turnover of $500,000 in less than 8 months

Turnover Growth

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

March April May June July August

Months

CONFIDENTIAL

Increase in Charter Enquiries every Month

Charter Enquiries Since Start

0100200300400500600700800

March April May June July August

Months

CONFIDENTIAL

Increase in affiliate Partners every month

Registered Booking Partners

020406080

100120140160

March April May June July August

Months

CONFIDENTIAL

Key Financials

Metrics

Enquires

Charters Booked

Booking Partners

Enquiries Through

Partners

Financials

Turnover

Net Revenue

Operating Cost

Technology Investment

Net Profit

May’08 June’08

150

2

30

40

$15,000

$3,000

$1,500

$1,500

$0

300

3

50

135

$30,000

$7,000

$1,700

$5,000

$300

July’08

450

3

100

210

$40,000

$9,200

$1,800

$500

$6,000

August’08

700

5

150

430

$110,000

$18,500

$3,800

$3000

$11,000

CONFIDENTIAL

Yearly Forecast (Post Funding)

Metrics

Enquires

Charters Booked

Booking Partners

Enquiries Through

Partners

Financials

Turnover

Net Revenue

Operating Cost

Profit before tax

FY’03FY’02

100,000

500

25,000

95,000

$5,000,000

$1,350,000

$600,000

$750,000

FY’04

2,000,000

10,000

150,000

1,900,000

$100,000,000

$25,000,000

$12,500,000

$12,500,000

10,000,000

100,000

300,000

9,800,000

$1,000,000,000

$175,000,000

$75,000,000

$100,000,000

IPO Process Begins in 2009

CONFIDENTIAL

Content

1. Team

2. Market Opportunity

3. Product & Technology

4. Business Model

5. Early Results/Early Entrant

6. Financing

CONFIDENTIAL

Financing• Seed Funded by Founders in November 07

– Founders committed $30,000

• Looking for Series A Capital – – $5 million (Rs. 25 Crores) from VC Funds, Private equity Players

• 2009 Goals– Global Customisation and country specific Launch of the system – Building Travel agent base worldwide, 25,000 travel agents by 2008– Reaching $5 million in Revenues– Launch of Pre-Paid/Block Flying Cards worldwide

• 2010 Goals– Scaling Online system to generate $100 MM in revenues– A subsidiary or joint Venture for Fractional Ownership, block usage of

Air Taxi, Very light jets, Turbo prop, piston aircrafts – Virtual Business Airline listing on systems like galileo, amadeus to target

mass distribution and giving flyers a private flying option when they buy a scheduled airline ticket

CONFIDENTIAL

Fund Utilization

• 2 Year Establishment & Expansion capital for the following :-

• Office - Moving to Bigger Office• Renting office

• Recruitment of Key Personnel in Asia/USA– Experienced COO from Aviation Industry – Extended Customer service team– Experienced CTO for enhancing technology – HR, Admin and CFO

• Marketing and Sales• Promotional Material• Advertising in select Key Media

• Business Development/Overseas Expansion• Identifying Master Franchisee• Training travel agents

CONFIDENTIAL

Valuation

• Pre-Money Valuation of $20 Million (Rs. 85 Crores)

• Why $20 million

– A fully built automated system– Featured by over 70 publications globally, already reached audience of

about 100 million people– Acquisition of start-up competitor at $50 million – Tried and tested, Generated revenues of $120,000 till date– 100 registered travel agents– A trained travel agency can generate yearly revenues of $100,000

– 100 * $100,000 = $10,000,000 only– $10 MM * 2 years = $20 MM valuation comes from registered travel

agents only– Early Entrant– Fastest growing segment in Aviation unaffected by ATF– No other competition than Virgin Charter

CONFIDENTIAL

Exit Strategy

• Yearly Profit Draw– clear-cut Strong revenue Model

• Reverse Merger

• IPO in FY03-FY04

• Acquisition from an Airline– $1 billon+ exit

CONFIDENTIAL

Interested? Contact us

info at airnetz.comIndia Phone : +91 9930403019US Phone : +1 608 554 0461

Airnetz Aviation Pvt. Ltd. F-220, International Infotech park, New

Mumbai. India.