Opportunity

Market

Economic growth and the requirements of redevelopment, not to mention the impending entry of several countries in the region to the European Union, are creating increased demand for air services between Western Europe and the countries of Southeast Europe and Turkey.

The market combines a variety of elements all of which demand a higher quality of air service than often currently available:

1. 1. Business travelers demand speed, reliability and flexibility that are tailored to their business needs.

1. 1. Both government and international visitors require the same elements.

1. 1. Personal and leisure travelers from the Southeast Europe/Turkey region who have the money to travel by air and who increasingly demand a higher level of service and convenience, but at an economical cost.

1. 1. The “Diaspora,” Personal and leisure travelers originally from the Southeast Europe/Turkey region, but now living and working in sizable numbers in the countries of Western Europe, with the same demands.

1. 1. Western European personal, leisure, and business travelers, who primarily travel on airline’s routes connecting Western European points.

1. Seasonal (primarily during summer, with a few niche markets in the winter) holiday traveler, primarily to Greece, Turkey, the Mediterranean islands and Turkey. These travelers are focused on cost, reliability as well as convenience and destination.

All these groups will benefit from the new airline proposal. The airline will offer better service, including in certain cases offering service where none currently exists, at a higher standard of safety, comfort, convenience, and fares that are more affordable than what is currently available. This plan also identifies niche markets that the new airline will serve, which will allow it to be more effective in serving those markets and become the preferred carrier.

Competition

The four primary segments that make up the global airline industry, which operates between Western Europe, Southeastern Europe and Turkey, are:

1. 1. Established European mainline carriers (primarily Swiss International. Lufthansa. Alitalia. Malev. Turkish) used their Southeast European routes for spokes connecting to main hubs within Western Europe (or Budapest. Istanbul in the cases of Malev.) They also served to feed traffic on their primary intra-European or trans-Atlantic routes (or domestic Turkish routes, in the instance of Turkish).

1. 1. Regional airlines that are smaller but more established than mainline carriers, mainly from Western Europe and the upper levels of Eastern European countries (primarily Swiss International, Tyrolean and Adria), perform the same function or link destinations in Southeast Europe with their national capitals.

1. 1. Home-based Southeastern European airlines (such as ADA Air or Albanian Airlines), are often older, Soviet built aircraft or turboprops. They offer a lower level of service, but not always lower fares, and are often less well-regarded by travelers from Southeastern Europe. These airlines link points in Southeast Europe with other destinations, or may connect Southeastern European destinations to major Western European cities.

1. There also is a fourth segment worth noting, and that is the fairly significant charter market that exists within certain niche or seasonal markets. This market includes charter flights between Pristina (and destinations in Germany or Switzerland), as well summer charters from New York City and other North American cities. These charters can be operated by airlines or individual travel agencies. Also, there are vacation charters that fly from Western Europe to Greece and Turkey, Cyprus and other destinations in Southeastern Europe and Europe.

The proposed airline would be most compatible with the second grouping. However, it would still compete effectively against all four main segments by offering a combination safety and service, carefully chosen routes, niche-market service and convenient schedules. It would also offer reasonable and competitive fares and modern, safe and comfortable aircraft. It will also provide service on routes that are not currently served or where there is no competition.

Why Us?

Air Leo will be a leader in the expanding air-travel and cargo markets connecting Western Europe and Turkey. It will identify and serve key routes and city pairs that are currently unserved, under-served or not served and set new standards for professionalism and air service within and outside the target market.

Expectations

Financial Highlights by Year