Air Cargo Opportunities in India

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Air Cargo Opportunities in India
Preston Murray Chief Executive Officer National
Air Cargo
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National Air Cargo

• Freight Forwarder and Cargo Airline
• Core Competencies
• Four Rings of Market Focus
• India Market Aspirations ? emerging opportunities
  bolstered by growing U.S.-India strategic
  partnership

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India Air Cargo Growth
Indian Air Cargo Growth
India Market Begins Rebound

• India market rebounding with double digit growth
  in October 2009
• Domestic cargo growing faster than international
  since January 2009

Source Airports Authority of India, Monthly
Traffic News
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International Air Cargo Volume
1,097,447
1,186,797
1,148,328
(Nov-Oct)
YE 9/2006
YE 9/2007
YE 9/2008

• Current recovery since January 2009 has brought
  volumes back to within 2 of historical peak

Source Airports Authority of India, Monthly
Traffic News
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Domestic Air Cargo Volume
557,600
568,846
598,014
(Nov-Oct)
YE 9/2006
YE 9/2007
YE 9/2008

• Domestic cargo at historically highest volume
• Domestic volumes approaching 60 of international
  volumes

Source Airports Authority of India, Monthly
Traffic News
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India International Trade Profile

• Diamond, precious metals and jewelry are top
  candidates for air cargo

Source CIA Country Factbook Comtrade UN
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India the Next China?
China International Trade Profile

• Chinas top imports/exports are high value items
  benefiting from air cargo

Source CIA Country Factbook Comtrade UN
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India Market Strengths
Strong economic growth

• Average GDP growth over 7 past decade
• Net exports grew over 24 in 2008
• Net imports grew over 36 in 2008

Strong growth forecasts for air cargo

• International growth at 6.8 per year through
  2013
• Domestic growth at 9.9 per year through 2013

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India Market Weaknesses

• Lack of proper infrastructure is a roadblock to
  efficient cargo handling
• Cargo warehousing
• Multi-modal links for local distribution
• Regulatory and foreign ownership issues
• Foreign ownership capped at 74 in cargo air
  carriers
• Foreign airlines may have no ownership in airlines

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India Market Opportunities
Lagging infrastructure creates many partnership
investment opportunities
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India Market Threats

• Slow global economic recovery
• Uneven economic recovery
• Global recovery led by India, China and Asian
  economies
• Fuel price volatility
• Terrorism
• Protectionism in developed countries

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U.S. India Strategic Partnership

• Key strategic partner with common interests to
  U.S.
• Nuclear non-proliferation
• Counter-terrorism
• Military cooperation and joint exercises
• Central Asia stability and Afghanistan
  reconstruction
• Military sales and support
• Modernization
• Life-cycle support
• Long-term industrial partnership
• Substantial air cargo implications
• Integrating India into global supply-chain

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National in India

• Emerging Opportunities
• Military sales and support
• Nuclear and electric power generation equipment
• Oil exploration rigs and drills
• Earth moving and construction equipment
• Afghanistan reconstruction and other humanitarian
  efforts
• Foreign ownership limit in Indian carriers
  implies need for Indian JV partner to participate
  in Domestic market growth

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Thank You
Preston Murray Chief Executive Officer National
Air Cargo