Central Europe’sFirst Low Cost Airline

November 2004

SkyEurope Airlines

• All statements contained in this presentation that are not statements of historical facts, including statements on projected operating results, financial position, business strategy and other plans and objectives for future results, constitute forward-looking statements and are prediction of, or indicate, future events and future trends which do not relate to historical matters.

• No person should rely on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in many cases, beyond SkyEurope Airlines’ control and may cause its actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by the forward-looking statements and from past results, performance or achievements.

• These forward-looking statements are made as of the Date of this presentation and are not intended to give any assurance as to future results. None of SkyEurope Airlines, its employee and representatives assume any obligation to update these statements.

Disclaimer

Central Europe Specificities

• 8 Central European countries and

75 million inhabitants joined the EU

on 1 May 2004

• Strong economic growth triggered by

removal of borders

• Lack of competitive ground

transportation

• Lack of affordable air transport

Krakow

SkyEurope Concept

• Started in Bratislava because:– Gap in the market: no schedule airline in Slovakia after Czechoslovak

separation– Proximity to Vienna (only 50 km) making Bratislava the

“Stansted Airport” of Vienna– As a low-cost airline operating from a low cost country, SkyEurope

benefits from a competitive cost structure

• Business development strategy:– „Connecting the dots“ in a multi-base network – instead of a traditional

airlines’ hub-and-spoke network– Base in Budapest since November 2003– Base in Warsaw since May 2004 and in Krakow since September 2004– Additional bases planned in Central & Eastern Europe

What Low Cost Means

• Simplicity: point-to-point connection, no-frills (lounges, newspaper)

• Light structure: subcontracting of handling, catering, heavy maintenance

• Intensive use of technology to maximize efficiency (reservation, payment, ticketing, etc.)

• Low cost means high quality of maintenance and training according to latest EU standards (JAR OPS 1 and JAR 145) to allow high aircraft utilization

• Low costs enable an airline to offer low fares, and stimulate the market growth, by attracting new air passengers previously traveling by car, bus or train.

Founders & Management

• Alain Skowronek– EBA Express (Belgium):

first low cost airline in Europe;

– Strategic sale to Virgin Express in 1996; IPO in 1997;

– Former General Manager of City Bird Airlines.

• Christian Mandl– EU-related projects in

Central & Eastern Europe;– Business Development

consultancy in Bratislava.

Investors

European equity funds of:

and private Central European investors

SkyEurope Milestones

• Founded in 2001

• 3rd year of operation

• 4 bases in Hungary,

Slovakia and Poland

• Fleet of 13 aircraft

• 19 destinations

• 35 routes

• 12 countries

• Close to 1 mil. passengers

Bratislava Scheduled Passengers

Growth over the period

Jan.-Apr. 2003/2004

• SkyEurope is responsible for 83% of the growth

• 141% growth of Bratislava scheduled passengers volumes

• 271% growth of SkyEurope passengers volumes

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Jan.-Apr. 2004

Increase SkyEurope

Increase other carriers

Scheduled passengersJan.-Apr. 2003

SkyEurope Market Share at Bratislava

Scheduled Flights Jan.-Apr. 2004

66%

34%

SkyEurope

Others

Labour Cost as % of Revenue

6.9%10.9%

13.3%

26.5%

37.5%

0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%40.0%

SkyEurope Ryanair easyJet JetBlueAirways

SouthwestAirlines

Source: Raymond James’ Growth Airlines Outlook 2004.

Low Cost Production Basis

Source: Raymond James’ Growth Airlines Outlook 2004.

Employees per Avg. Aircraft

3950

86

110

45

0

20

40

60

80

100

120

SkyEurope Ryanair easyJet SouthwestAirlines

JetBlueAirways

High Productivity

2003 2004 20052bases

14cities

16routes

9countries

4bases

19cities

38routes

12countries

5bases

22cities

48routes

13countries

Fleet development

SkyEurope’s advantages

• SkyEurope benefits from:

– Operating in a low cost country

– First mover advantage: 3 years of experience in Central Europe

– Recognised brand

– Multi-base network

– Presence not only on East-West but also on East-East traffic

– Strong financial backing

Human resources in Sky

• Who is SkyEurope employee?

• Dynamic individual• English speaker• Creative thinker• Initiative and responsible• Part of the story of building first low fare airline in Central Europe• Team player working in international environment• Cost conscious• Usually graduate from University or with few years experience• Career opportunities seeker• Fun lover

Why SkyEurope Airlines is a “company to work for”?

• “SkyUniversity”

• “SkySpirit”

• “SkyBenefits”

„SkyUniversity“

• Hire for attitude and skills more than for experience. We look for Excellence. • For many people, SkyEurope is a “University” as they learn something new

(different than cut/paste from previous job).• SkyUniversity means giving opportunity to people even with long working

experience but not in the position they have been hired for. • SkyUniversity means also that most of these newcomers do not have

previous experience in the aviation neither.• SkyUniversity means as well giving opportunity to the current employees to

be internally promoted, to try their skills in different position than the one they joined in.

• SkyUniversity means on-job internal training of all employees.• SkyUniversity means low - cost remuneration of all „trainees“ based on

productivity and results• Added value for employee: unique chance to have responsibility, to learn, to

benefit from internal accelerated promotion philosophy, to gain experience and have fun

„SkySpirit“

• Dynamic international environment of a young non-traditional airline

• „KISS concept“ = „Keep it simple and smart“ philosophy• Having fun• Regular company social employees events rotating in

bases• Working together to share and achieve the company

vision• Finding new and creative solutions in all company fields

„SkyBenefits“

• Great opportunity to improve language skills while working in multinational environment

• Employees standby private travel {applicable for employee qualified family members}

• Internal Promotion policy• Internal Mobility among bases• Additional bonuses provided according to the announced teams

targets achievements• Performance based remuneration• Social fund use for various activities in terms of relax, free time,

culture; life events contribution• Tatrabanka advantages package

SkyEmployees in numbers

• SkyEurope Airlines currently employs up to 600 employees in all its bases • SkyEurope Airlines already employs about 32 employees (17 pilots) Of Zilina

University graduates in following positions:• Flight Operations Manager• Pilots• Operations Control Center Manager• Flight dispatchers• Operations supervisors in our OCC• Ground operations coordinators• Navigation officer• Flight performance officer• Crew planners• Crew controllers• Flight dispatcher assistants• Assistant Flight Operations Manager• Cabin attendants

Booking

• All destinations from €25:“the earlier you book, the better the price”

• www.skyeurope.com– Online flight booking– Online car rentals and hotels booking

• European Call Centre accessible through local numbers– Reservation agents communicating in 8 languages

(English / French / German / Italian / Hungarian / Slovak / Czech / Polish)

• Travel agencies– For corporate customers and ministries– Internet booking tool

First Low Cost Airline to CarryHis Holiness Pope John Paul II

Boeing 737 – “Adriana”

Boeing - Miss Europe from HU

Quote from “The Economist”

Although Wizz Air claims that its base in densely populated Katowice will pay off, it may struggle to stimulate demand among still hard-up Poles, or to lure British and Italian passengers to drab Silesia. SkyEurope, with its first-mover advantage, is the likeliest to succeed. With low costs and ample slots at its base in Slovakia, which forfeited its national airline after splitting from the Czech Republic in 1993, it markets Bratislava as a secondary airport for nearby Vienna, allowing it to tap into demand for low-fare services from wealthier Austrians. As Christian Mandl, SkyEurope's Belgian chief executive, puts it, “We have the best of both worlds.”

“SkyEurope, with its first-mover advantage, is the likeliest to succeed.”

15 May 2004 - The Economist

SkyEurope AirlinesIvanska cesta 26P.O. Box 24820 01 Bratislava 21Slovakia

Phone: +421 2 4850 1111Fax: +421 2 4850 1000

Chairman: alain.skowronek@skyeurope.comCEO: christian.mandl@skyeurope.comCFO: juraj.koman@skyeurope.com COO: graham.williamson@skyeurope.com FOM: peter.svec@skyeurope.comInvestor Relations Manager: jaroslav.sopuch@skyeurope.com

Contact

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