Federal Aviation Administration

Forecast Conference

March 17, 2005

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Air Taxi ServiceAir Taxi Service

A new low cost, easy to use A new low cost, easy to use Private Jet Value Proposition Private Jet Value Proposition for time sensitive travelersfor time sensitive travelers

Very low price – never Very low price – never exceeding $6.00 per mileexceeding $6.00 per mile

Substantially faster than Substantially faster than scheduled air from smaller, scheduled air from smaller, less crowded, hassle-free less crowded, hassle-free airports airports

““Car service” like Car service” like accessibilityaccessibility

High quality, professionally High quality, professionally trained personneltrained personnel

Private jet experiencePrivate jet experience

• 225 aircraft and more than 2000 225 aircraft and more than 2000 airportsairports • Trips up to 500 MilesTrips up to 500 Miles

• Accessible and consistentAccessible and consistent

• Easy, like calling a car serviceEasy, like calling a car service

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Pogo LeadershipPogo 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 world’s largest repair and overhaul facility for aircraft landing gear

Robert Crandall – Chairman of the Board*: Former Chairman and CEO of American Airlines Michael Hodge – Board Member: Managing Director Tiger Management LLC David Hurley – Board Member: Vice-Chairman of Privatair

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NASA’s Small Aircraft Transportation System (SATS) program NASA’s Small Aircraft Transportation System (SATS) program provides the backdropprovides the backdrop

Jet Air Taxi

Commercial Air Service

Prop Air Taxi

Car1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030

Relative Intercity Transit

Market Growth

Cars Displace Trains

Propliners Displace Cars

Jetliners Displace Propliners

SATS SATS (Small(SmallAircraftAircraft

TransportatiTransportationon

System)System)

Mo

del

T

Ass

emb

ly L

ine

Jet

Tra

nsp

ort

s

DC

-3

Sp

eed

* Graph provided by Dr. Bruce Holmes, Director of NASA’s SATS program

Transformation is occurring

Significant time savings can be

realized

Much of the required infrastructure is already in

place

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Launch MarketLaunch 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 This represents less than 260 customers per day, or the equivalent

of 2 B737 / A320 flights per day, or the capacity of less than 1 B737 / A320 aircraft per day

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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.

Brand Positioning StrategyBrand Positioning Strategy

Affordable Luxury for High Performance, “Mass Affluent” andCritical Business Tool for Small, Growing Business Entrepreneurs

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Pricing StrategyPricing 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 StrategiesOperating 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

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Information Technology StrategyInformation 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

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Pilot StrategyPilot 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 HighlightsInvestment HighlightsMarket 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 DOC’s (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 NASA

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