General Administration Civil Aviation in China (CAAC) Briefing

Regional Airline Association

Washington DC

April 10, 2008

• Regional airlines flew 159 million passengers in 2007– 14,000 flights per day (50% of domestic schedule)– 23% of U.S. domestic passengers travel on regional airlines

• Regional airlines operate 40% of U.S. commercial airline fleet– 1782 regional jets– 1100 turboprop & piston aircraft

• 61,000 regional airline employees - 18% increase since 2003

• 635 U.S. airports served by regional airlines– 450 served only by regionals

U.S. Regional Airlinesat a Glance

About RAA

• Founded in 1975

• Collaborative professional trade association of North American regional airlines based in Washington, DC.

• Serves U.S. regional airlines and the suppliers of products and services

• Represents regional airlines before• U.S. Congress• Federal Aviation Administration• Department of Transportation• Transportation Security Administration/Department of Homeland Security• Environmental Protection Agency and other federal and state agencies.

• 42 Airline Members

• RAA member airlines transport 97% of all regional airline passengers.

• 315 suppliers of goods and services to regional airlines that participate as Associate Members

70% of US Served Only by Regionals

Regional Airline Trends

• Virtually all U.S. regional flying done in partnership with network airlines, with exceptions for some “branded” flying (i.e. ExpressJet) and point-to-point service on smaller a/c in specific regions, (i.e. Alaska, Hawaii, New England, Mountain West)

• Regional airline growth has flattened, projected to remain slow through 2008

• Average seating capacity of the regional airline fleet has grown by 30% since 2002 to more than 51 seats per a/c

• Passengers flying on regional airlines increased by about 2.5% but the

number of regional airline flights declined 3% from 2005-2006