Epstein Secrets

0% 5% 10% -15% 20% Operating Margin EUROPE RyanAir. Wizz If • Aeroflot IAG easviet, .• • ..1 El Al / Pegasus ifirinair • e. 0 * Lufthansa • .. .." • • AF-KLM SAS 0% 120 100 80 60 25% 20% 15% 10% 5% Operating Margin 4 Average Narrowbody Ground Times (Min.) 2 million

: 19-26 Apr 2017 • Narrowbodies only for FY2015 and 2016 N. AMERICA Allegiant *Alaska Spirit • .••• Delta* • JetEllue .....• ./.. ./.. ..0. Southwest ••••4. • united American • Westlet - Air Canada 120 100 80 0% 60 30% 25% 20% 15% 10% 5% Data From: ©f light rsIdA9Li! EFTA00810

f.0 14-20 Aug 2016 22-28 Nov 2016 19-26 Apr 2017 Operating Margin EUROPE El Al lwanAir• Win le easTlet, Aeroflot • IAG :'Pegasus • * Lufthansa Innair • • SAS AF-KLM 26% -, 30% N. AMERICA 20% 15% 10% Operating Margin Allegiant • Alaska Spirit • • Delta' Jetelue 7 Southwest

* Lufthansa Innair • • SAS AF-KLM 26% -, 30% N. AMERICA 20% 15% 10% Operating Margin Allegiant • Alaska Spirit • • Delta' Jetelue 7 Southwest ...'" ••• • American • • United Westlet 44AI.r Canada 0I4t, 120 1to.; 10) 120 14/ Average Narrowbody Ground Times (Min.) • Carriers

value. ■ Airline M&A has historically been highly accretive, generally yielding synergies of 3-7% of combined revenues (3/4 revenue, 1/4 cost). ■ Lufthansa is not inheriting legacy costs, only purchasing assets at market rates. It has guided that the deal should reduce unit costs. ■ We see a ROCE of 25

■ Antitrust risk is limited: 1) Lufthansa is providing much of Air Berlin bridge Date Acquirer Candidate Total Synergies % of Revenue Sep 2010 Southwest / AirTran US$400 million 3% financing; 2) EC did not block the Lufthansa-Swiss Air deal despite similar local market dominance Aug 2010 LAN / T