AIR Issue No. 9 - March 2012 by Leah Dupuis

MARCH 2012

CAC SPECIAL EDITION IN THIS ISSUE: Future of Air Cargo - Page 2

CEO’s Message – p 1 Feature Articles – p 2 Regional Updates – p 8 Canada • United States • Europe Asia-Pacific • Latin America

Airline & Airport Traffic Updates – p 16 Beyond the Border - Page 4

Aviation News – p 20 InterVISTAS News – p 29

Winnipeg Airport Opening Day - Page 6

CEO’S MESSAGE March 2012

Welcome to the CAC “One of Our Airports is Missing” Conference and this inaugural edition of our revised Aviation Intelligence Report. With this revised format we intend to offer our readers more feature articles and expanded coverage of aviation issues around the world. Our news and traffic sections have been similarly expanded.

Gerry Bruno Group Chief Executive Officer

This month, Robert Andriulaitis explains the future of air cargo. Despite some recent negative publicity, we believe the future is very bright for this critical sector of aviation. Solomon Wong gives an update on Beyond the Border, a very important Canada-U.S. border initiative. Binational coordination will be critical in successfully implementing the Perimeter Action Plan over the next five years. Karla Petri covers the opening of the Winnipeg Airport’s new terminal. Her article highlights the importance of communication and staff coordination in ensuring a smooth opening day. A number of regional reports written by other members of our team provide insights on aviation issues and developments around the world. We hope you enjoy our redesigned Aviation Intelligence Report, which also features our new logo:

Page 1 March 2012

CARGO CAPERS: THE FUTURE OF AIR CARGO March 2012

Rob Andriulaitis Vice President, Transportation & Logistics Studies

I’ve been reading some rather pessimistic blogs and articles about the future of air cargo. With all the talk of environmental pressures (air is the most offending mode!), high fuel costs (freighters are not viable with $100 oil!), ever-increasing cargo security provisions (the cost will be prohibitive!), the permanent shift of some air cargo to marine transport (more to come!) and the inevitable near-shoring of production (wage rates are increasing overseas! how can we have relied on offshore manufacturing in earthquake/flood prone zones!) it is difficult to blame anyone for questioning what tomorrow will bring for air carriers and airports alike. But is the future really that dismal?

Drivers of Air Cargo. When considering

Typical Recent Headlines: Air cargo faces uncertain future Sea change: is air cargo about to

reach maturity? International Air Freight: Turbulence Ahead Risky Business: Re-thinking Supply Change Risk Volatility Becomes Status Quo

the future, let us consider the drivers of air cargo, and whether they have changed. One key driver is GDP growth. Now while several countries around the world are facing severe economic issues, expectations are that global economic growth will continue. Certainly the growth will not be even, and some countries may face declines, but growth overall will continue, with positive impacts on aviation. While air cargo volumes have suffered during past global recessions, it has proved to be a resilient industry, and has rebounded strongly time and time again. Another key driver is international trade. There is no doubt that international trade continues to grow – and by more than global GDP grows. Recent Free Trade Agreements by the U.S. (South Korea, Panama, Columbia), Canada (Columbia, Peru, pending with Honduras) and the EU (South Korea) as well as initiatives elsewhere such as ASEAN and the Trans-Pacific Strategic Economic Partnership suggest an even greater need for international transport moving forward. Air transport has also been driven by JIT supply chains. Here the pessimists will point to an emerging trend among U.S. firms towards “near-shoring” that will diminish the need for air transport. Offshoring, however, should never have been about lower labour costs in the first place. Firms that did it right looked at the entire logistics costs of outsourcing – not just labour costs. For many firms, outsourcing offshore will continue to make sense. It may make even more sense in the future as growth in the middle class in countries such as China, India, Russia, Brazil and South Africa will increasingly mean that “proximity to the final market” is somewhere other than the traditional places such as the U.S., Canada, Japan and Western Europe. Air cargo growth has also been driven by the need for speedy secure delivery. For high value goods, perishables, and express products, air transport provides a safe and quick delivery that other modes cannot match.

Page 2 March 2012

The Current Pessimism? Certainly the concerns I noted at the outset do have some legitimacy. Environmental issues will impact aviation … but they will impact other modes as well. While air transport certainly has faced the bulk of world attention to date, marine shipping will also come under increasing scrutiny. Issues such as oil pollution, waste disposal, spills, air pollution, the transfer of non-indigenous species, and environmental concerns about port expansion are issues maritime operators face. One of the responses used so far – slow steaming – will likely have positive impacts for aviation as it exacerbates the service differential between air and marine. So while there has been a shift of freight from air to marine, this does not mean the trend will continue for all freight. Goods will always move on the mode that provides the greatest benefit, and for many that means air. High fuel costs will also be a factor that will impact aviation. Aircraft have improved their efficiency considerably, and experiments in alternative fuels are well underway. Fuel costs, however, will remain a challenge for aviation, particularly freighters. Security is always a concern, but like the environment, no mode is immune. While the enhanced security provisions are relatively new to many of us, industry practitioners in states such as Israel have been dealing with this for a long time. Aviation will adapt, and is in fact already adapting. Near-shoring I’ve dealt with above. As for it being driven by concerns about natural disasters, well I have my doubts. The impact of the Japanese earthquake and tsunami on semiconductor manufacturing, and the impact of the floods in Thailand on hard drive production certainly impart valuable lessons on the dangers of concentration of activity. But really, does anyone believe that places such as Canada and the U.S. are immune from earthquakes and floods? Natural disasters occur everywhere, and will not lead to a significant decrease in air transport due to migrating economic activity to North America. (Ironically, natural disasters typically mean increased aviation activity in support of relief measures.)

Smooth sailing? My comments above should not be taken to suggest it will be smooth sailing for air cargo. Government policy and taxation decisions, airport congestion, sub-optimal air traffic control, fuel costs, environmental concerns and other factors continue to pose significant challenges. The awareness of air transport as a driver of economic growth grows however, and governments around the world are beginning to appreciate the need to work with industry to address these issues. There are challenges ahead, but I am cautiously optimistic that we will have the courage and will to face them head on. Besides, if uncertainty and volatility are to be the new norms, what better mode to rely on to cope with volatile markets than fast flexible aviation? If currently restrictive government regulations and bilateral agreements continue to evolve to allow air operators to react in the fast and flexible manner the industry is physically capable of doing, air cargo will continue to play a key role in international trade and development.

Page 3 March 2012

BEYOND THE BORDER MOVES TO IMPLEMENTATION March 2012

An Opportunity for Canada-U.S. Perimeter Border Management Canada and the U.S. share the largest trade and travel relationship of any two countries in the world. Although there are a lot of common approaches in free trade, defense and airspace management, the coordination of border management has multiple layers of complexity and challenges.

Solomon Wong Executive Vice President

In December 2011, Prime Minister Harper and President Obama announced an action plan that focuses investment in 2012-2015 and beyond towards new programs, risk management tools as well as approaches to make trade and travel more efficient. A town hall meeting was held in late February 2012 to solicit opinions from the aviation industry on implementing the Action Plan. The impacts for the aviation sector have yet to be fully realized; both governments are still in the planning stages for rolling out early wins. However with Beyond the Border, also known as the “Perimeter Action Plan”, there are major ramifications that can alter the way borders work between Canada and the U.S., as well as for others travelling into the common region. Improved airport space, reduced cost burden for transportation as well as an improvement in overall efficiencies of Canada/U.S. government departments/agencies to meet growing trade and travel are some of the expected benefits.

A Common Approach to Border Risks The two countries are the not the first ones to adopt a common approach to managing border risks. The Schengen Agreement countries in Europe and the sharing of SmartGate systems between Australia/New Zealand are some examples of multilateral and bilateral arrangements. Information management is a key part of the Action Plan, including the ability for “entry” data to Canada to be shared with the U.S. to signal an “exit” record. Other information sharing ideas could also assist with air manifest reviews to meet both transportation and border security objectives.

Reducing the Hassle for Trusted Travelers The plan includes a dramatic expansion of benefits for so-called “trusted” travelers. Nexus, GlobalEntry and programs in Europe such as Privium have for many years provided low-risk travelers with faster processes. The Action Plan calls for expansion of benefits, including faster security screening queuing and processing. For example, the U.S. Transportation Security Administration Pre™ program allows Nexus members to no longer remove shoes, laptops, certain liquids, jackets or belts from carry-on luggage when going through screening. While today Pre is only available for U.S. citizens, Canadians in Nexus will soon have access to this program. Nexus members also have further benefits at the eight preclearance airports in Canada through improved queuing to CATSA pre-board screening.

Perimeter and Expanding the Border Since the 1995 Shared Border Accord, Canada and the U.S. already have a range of cooperative initiatives. After 9/11, an acceleration of joint initiatives occurred. The 2012 plan includes dramatic expansion of reviewing passenger and cargo data before flight departure. Interactive advance passenger information will allow future board/no-board decisions to be rendered before departures. The benefits will include the ability to focus border inspection decisions on arrivals to purely be based Page 4 March 2012

on those who are cleared for boarding flights. For tourism development, this strategy has proven beneficial to providing border agencies with greater capacity to deal with legitimate travelers. For example, both countries have expressed prioritization of travel from China and Brazil in order to capture the share of visitor spend. The Perimeter Action Plan will ensure that the first welcome to Canada or U.S. is a speedy welcome to the country – irrespective of whether the passenger flies directly or connects via the other country.

Next Generation of Preclearance U.S. Preclearance was pioneered at Malton Field (Toronto Pearson International Airport) in 1952. Sixty years later, Canada now has the largest number of Preclearance sites at its airports as well as volume of travelers using this process. The Action Plan calls for a renewed approach for Preclearance with agreements that cover land, marine and rail operations, as well as a review of powers for foreign officers in the current air agreement. Opportunities abound to ensure that the 13 million air passengers facilitated by preclearance have an improved process. The elimination of baggage rescreening as outlined in the Action Plan is one small step to improving explosive detection system flows through U.S. airports such as Minneapolis-St. Paul. More importantly, at large sites where Preclearance wait times are sizable during peak periods, there may be operational improvements to ensure that flights take off without delay to U.S. airports.

Major Considerations for Success in the Perimeter Vision The plan is extremely aggressive in its timelines, but is more focused on outcomes and quantifiable benefits to industry than predecessor initiatives in 2001 and 2005. Coordination will be an important consideration for the success of the agreement. The plan includes 17 different departments and agencies and over 80 separate actions/initiatives. Furthermore, there are a range of policy issues that will require appropriate input from all stakeholders. Three prime considerations that will impact the success of this latest Canada/U.S. initiative include: Sufficient Funding: Canada’s Budget 2012 and the U.S. Administration’s budget process will provide some hints around whether the initiatives are unfunded mandates, or will be sufficiently funded to produce the target benefits. Appropriate Privacy Protections: Management of personal and commercially sensitive information is an increasing concern for travellers as well as oversight mechanisms (e.g., Privacy Commissioners). Each initiative will need to have privacy built into the design of programs to manage information appropriately. Partnerships with Industry: Increasingly management of security issues requires partnership with the transportation industry. Partnership programs between the aviation industry and governments are becoming the norm to ensure that all parts of the supply chain/transportation process are adequately covered. Stay tuned in 2012 and beyond for early wins and long term benefits of Canada/U.S. initiatives to improve our common and perimeter borders. Page 5 March 2012

WINNIPEG JAMES ARMSTRONG RICHARDSON INTERNATIONAL AIRPORT’S NEW TERMINAL BUILDING: A SUCCESSFUL OPENING DAY Karla Petri Manager, Consumer Research

March 2012

On October 30, 2011, the Winnipeg Airports Authority (WAA) proudly opened their new terminal for operations. Part of a larger airport redevelopment, the 51,000 square meter facility is considered one of the greenest airports in North America, targeting a LEED Silver certification and designed to minimize energy consumption and reduce greenhouse gas emissions. In addition to becoming LEED certified, the WAA was subsequently named recipient of the 2011 Airports Going Green award, handed out by the Chicago Department of Aviation (CDA), in recognition of leadership in the pursuit of sustainability within the aviation industry. The facility features 32 common use check-in kiosks and bag tagging stations and a new range of retail and food and beverage offerings addressing the needs of passengers, employees and meeters and greeters. With over 10,000 square metres of glass and 55 skylights, the terminal has an open, modern feel, lots of natural light, and features stunning views of both the downtown and prairie landscapes.

Photos of the new terminal: (L-R) skylights, departures area. Provided by the WAA What was most notable about the new terminal opening day, however, was how smoothly operations went. As brand new airport terminal openings are not an overly common occurrence, it is a difficult event to prepare for with little expertise and precedence to draw upon. As such, it is worth a second look at how the WAA staff and the airport community prepared for and successfully carried out opening day operations. According to Christine Alongi, the Winnipeg Airport Authority’s Director of Communications and Public Affairs, consultation and communication were key to opening day preparations. Stakeholder communications have been ongoing since 2003 with over 1,200 stakeholder presentations given within the community to both provide information and collect feedback. WAA held a Transportation Innovation Forum to connect services providers and encourage local and national partnerships through the RFP process. Page 6 March 2012

Media engagement was another priority through the process ensuring that information was provided and the community kept up to date on terminal progress. As opening day came closer, the WAA began training for the entire airport campus. The training program included the following components: Campus Crew Training: The Campus Crew is an umbrella program for all airport campus employees (all employees working within the air terminal) focused on creating a customer service oriented culture. Members were offered classroom time (Terminal 101 Course), airport tours and take-aways. For example an armband with a USB port was provided to each Campus Crew member, containing maps and directories with information about the new terminal. An on-line Intranet Portal for up-to-the-minute information on the new terminal was also set up and is maintained by the WAA. Activation Team: This team, with members from the WAA and the airport campus, was set up to gain a greater understanding of how all airport groups work together and addressed such topics as the use of the new common use check-in terminal and ensuring a smooth transition from the existing terminal to the new terminal. This team, led by the WAA, included members from the airlines, security, airport tenants and concessionaires and operated to ensure a smooth transition and move from the old terminal into the new facility.

New terminal exterior. Provided by the WAA The WAA also wanted to ensure that all systems were “de-bugged” and ready for opening day. To test all passenger processes, including check-in, baggage handling, signage and curbside arrival, the WAA held extensive “passenger trials” prior to opening day. Firstly, focus groups (100 participants in total) were held to assess new airport processes. Secondly, friends and family (300 participants in total) were invited to test passenger processes from terminal check-in, baggage systems, through to end of the gate. Lastly, members of the community and local media were invited to participate in passenger trials. Used luggage was donated and over 1,300 people volunteered their time to simulate the passenger experience and ensure smooth operations prior to opening day. For more information about the WAA, please go to www.waa.ca or twitter.com/YWGairport.

Page 7 March 2012

CANADA REPORT March 2012

Even though government processes can seem glacial at times, a number of key initiatives have been working their way through the system, with a soon-to-be released Senate committee report on Canada’s airports, a new aviation security regulatory regime, and new TRP exemptions for transiting foreign nationals.

Senate Interim Report Focuses on Canada’s Airports Debra Ward Executive Consultant

Canada’s airports will be the main focus of the Senate Committee on Transport and Communications interim report on the emerging issues related to the Canadian airline industry. Scheduled for release in late spring or early summer, the report is expected to include topics such as airport governance and the impact of taxes, fees and charges. A final report is expected later this year and will include a wider range of Canadian aviation issues, including international competitiveness and customer service. This study has been a major undertaking, with testimony received from federal ministers, airport authorities, airlines, senior bureaucrats and unions. The study includes, but is not limited to, an examination of the aviation sector’s: performance and long-term viability in the changing global market; place within Canada; business relationship with their passengers; and important economic effect in the Canadian communities where airports are located.

Temporary Resident Fee Waived for Unscheduled Transits Through Canada Customs and Immigration Canada has relieved a long standing issue by approving a public policy exempting the $200 Temporary Residents Fee for foreign nationals transiting Canada through either the Transit Without Visa (TWOV) or the China Transit Trial (CTT) when transit is delayed because of weather or mechanical issues. This policy also applies to emergency landings.

Canadian Aviation Security Regulations Modernized, Streamlined to International Standards The new Canadian Aviation Security Regulations, 2012 came into effect at the start of the year. These modernized regulations are intended to simplify the regulatory framework and better harmonize with international standards and related program components through consolidation of requirements, elimination of overlap and duplication, and use of performance-based regulations where appropriate. Transport Canada has prepared a reference document for airports and aerodromes, Industry Guidance: Aviation Security Programs for Aerodromes. The coming-into-force dates for these regulations are: July 1, 2012 for Class 1 aerodromes (operators and primary security line partners); March 1, 2013 for Class 2 aerodromes (operators and primary security line partners); and June 1, 2013 for Class 3 aerodromes (operators and primary security line partners).

Page 8 March 2012

UNITED STATES REPORT March 2012

President Releases FY 2013 Budget; A Return of Fees and Charges, Otherwise Few Major Changes Proposed for Aviation President Obama released his budget request for fiscal year 2013 which largely continues program activity at both the Department of Transportation (DOT)/Federal Aviation Administration (FAA) and relevant portions of the Department of Homeland Security (DHS), especially Customs and Border Protection (CBP) and the Transportation Security Administration (TSA), without major changes.

Steve Martin Senior Vice President

However, the budget does revive a proposal for levying new user fees and charges for some aircraft that operate in controlled airspace, as well as proposed increases in the passenger security fee. The budget also proposes to reduce federal aid to medium and large hub airports. As a result, the commercial airlines and airport trade associations spoke out in opposition to the budget. Federal Aviation Administration: The Administration's proposal includes $15.2 billion in total funding for FAA, down $700 million from the enacted FY 2012 budget. The overall decrease is due largely to the proposed reduction to the funding level for the Grants-in-Aid for Airports program.

Account Operations Facilities & Equipment Research, Engineering and Development Grants to Airports Total

FY 2012 Enacted ($ millions) 9,653 2,731 168 3,350 15,902

FY 2013 Request ($ millions) 9,718 2,850 180 2,424 15,172

+/65 119 12 (926) (730)

The Operations budget funds the Air Traffic Organization and provides for the operation, maintenance, communications, and logistical support of the air traffic control and air navigation systems. It includes an additional $10 million for developing and deploying new Performance Based Navigation procedures. The Facilities and Equipment account includes nearly $1 billion for NextGen, an increase of more than $99 million compared to FY 2012. It includes $272 million for ADS-B, $36 million for Area Navigation/Required Navigation Performance, and $143 million for enhanced ground-to-air data communication. Research, Engineering and Development: The President is requesting $180 million to support the research in areas such as environmental research, unmanned aircraft, and weather research. Grants in Aid to Airports (AIP). The request includes an obligation limit for AIP of $3.35 billion that would drop to $2.42 billion if Congress approves higher Passenger Facility Charge (PFC) rates for medium and large hub airports. The Administration proposes to focus Federal grants to support smaller commercial and general aviation airports that do not have access to additional revenue or other outside sources of capital. The budget proposes to allow large and medium hub airports to increase the non-Federal Passenger Facility Charge thereby giving them greater flexibility to generate their own revenue. The budget also proposes to eliminate funding for the Small Community Air Service Development Program. Congress had provided $6 million for the program in the fiscal year 2012 appropriations process, and the recently-enacted FAA reauthorization bill also calls for $6 million per year for the Page 9 March 2012

program. The Essential Air Service program would receive $214 million. The Administration includes new charges to bolster the Aviation Trust Fund and relieve some of the need to draw from general tax dollars. The budget includes a proposal for a new surcharge of $100 per flight for air traffic services. Military aircraft, public aircraft, piston aircraft, air ambulances, aircraft operating outside of controlled airspace, and Canada-to-Canada flights would be exempt. The administration estimates that the fee would generate $7.4 billion in revenue over 10 years. The surcharge would take effect beginning after September 30, 2012. Transportation Security Administration: Funding for the TSA is set at $7.4 billion in total gross discretionary spending, a decrease of $197 million compared to FY 2012. Funding for aviation security decreases $156 million to a total of $5.1 billion.

TSA Program Aviation Security Surface Transportation Security Transportation Threat Assessment Transportation Security Support Federal Air Marshals Total

FY 2012 Enacted ($ millions) 5,254 135 200 1,032 966 7,587

FY 2013 Request ($ millions) 5,098 124 267 970 929 7,390

+/(156) (11) 67 (62) (37) (197)

Highlights: Explosive Detection System (EDS) Procurement and Installation (- $88 million). TSA will focus on recapitalizing existing EDS systems to sustain current capability. Checkpoint Support (- $31 million). The checkpoint support program includes funds to accelerate and expand passenger and carry-on baggage technologies, including Advanced Imaging Technology. TSA expects to be at or near full operational capability for most checkpoint screening technologies after FY 2013 purchases. Federal Flight Deck Officer and Crew Training (FFDO). The budget proposes to cut this program activity by 50%, or $12.6 million. The FFDO was created as a “last line of defense,” but improvements in security elsewhere in the system have lowered the risk of unauthorized cockpit access. The budget included a proposal from DHS/TSA to increase passenger security fees. The fee (now $2.50 per segment with a $5 maximum) would rise to a flat one-way trip fee of $5 in 2013, with annual increases of 50 cents from 2014 to 2018, resulting in a $7.50 fee in 2018 and thereafter. The changes would raise some $25.5 billion during the next decade, $18 billion of which is proposed to go for debt reduction with the remainder to offset TSA costs. Key Congressional leaders have all indicated that they oppose the increase. House Appropriations Committee Chairman Hal Rogers, DHS appropriations subcommittee Chairman Robert Aderholt, and subcommittee Ranking Member David Price say that the proposed fee increase is unlikely to be adopted.

Page 10 March 2012

EUROPE REPORT March 2012

Joint Declaration Signed Against the European Union’s Emission Trading Scheme (ETS)

Ian Kincaid Vice President, Economic Analysis

The European Union’s Emission Trading Scheme (ETS), the EU’s policy to address climate change using a “cap and trade” principle, was first implemented in 2005. The ETS places a cap or limit on the total amount of certain greenhouse gases that can be emitted by the factories, power plants and other economic activities within the EU. Within this cap, companies receive emission allowances which they can sell to or buy from one another as needed. At the end of each year each company must surrender enough allowances to cover all its emissions, otherwise fines are imposed. Companies that do not fully utilise their allowance can sell them to other companies, providing an additional economic incentive to reduce emissions. Over time, the EU will reduce the total number of allowances available so that total emissions fall. At the end of 2011, the EU ETS operated in 30 countries (the 27 EU Member States plus Iceland, Liechtenstein and Norway). It covers CO2 and nitrous oxide emissions from installations such as power stations, combustion plants, oil refineries and iron and steel works, as well as factories making cement, glass, lime, bricks, ceramics, pulp, paper and board. Between them, the installations currently in the scheme account for almost half of the EU's CO2 emissions and 40% of its total greenhouse gas emissions. The latest controversy relates to the EU’s action to include aviation in the ETS starting 1 January 2012. The ETS will apply charges for emissions on any flight in or out of the EU, whether operated by an EU or foreign airline. No airline will receive a bill until next year, after this year's carbon emissions have been calculated. Initially airlines will be given free allowances to cover 85% of their emissions. Following a meeting of representatives in Moscow on the 21st February, 26 nations signed a joint declaration in protest against the new law, as they believe it infringes on national sovereignty and violates the agreements from the 1944 Chicago Convention on International Civil Aviation. The countries that signed the protest include the United States, Russia, China and India. These countries intend to file a complaint with the International Civil Aviation Organization (ICAO), and prohibit their carriers from abiding with the scheme. The declaration also indicates that an assessment will be conducted to determine whether the EU ETS abides by the WTO agreements. Some countries have also indicated that they will enact counter measures including suspending negotiations on bilateral air service agreements and charging EU carriers overflight taxes (in the case of Russia).

Airline Associations Warn that Airlines to be Affected by Retaliation Representatives from the Association of European Airlines and the Association of Asia-Pacific Airlines have indicated that the retaliation signed by countries against the EU ETS will be harmful for airlines and place them in a difficult situation. According to these representatives, although some governments have banned their airlines from participating in the new carbon emissions tax and from raising air fares due to the ETS, airlines are still going to be required by the EU to comply with the new policy and will be at risk of paying large fines. They believe that moving forward on this issue should be handled through the ICAO, instead of through retaliation. Airbus has also expressed concerns about the fallout from the international disagreement over the ETS. Hong Kong Airlines has indicated that its order for 10 A380s may be cancelled due to China’s displeasure at the extension of the ETS.

Page 11 March 2012

ASIA-PACIFIC REPORT March 2012

Singapore Airshow 2012 sets new record value of over $31 billion deals and announcements

Doris Mak Director, Special Projects

The Singapore Airshow was held 14-19 February 2012 at the Changi Exhibition Center. The biannual event is the largest aerospace and defence event in Asia, and is one of the top three aviation events in the world. This year the event set a new record with deals and announcements valued at more than $31 billion, three times more than the total value of deals signed at the last event in 2010.1 Lion Air placed the largest order at the show, totalling approximately $22.4 billion for 230 737-900 aircraft. This order alone accounts for over 70% of the orders placed at the show. Approximately 38,000 visitors from 199 countries and 266 delegations from 80 countries attended the event, and 900 exhibitors from 50 countries showcased their products and services.2 Boeing featured its 787 Dreamliner aircraft at the airshow, while Airbus introduced its Multi-Role Tanker Transport.3 Firms that garnered significant deals at the event include Boeing, Airbus, and Pratt & Whitney.4 Figure 1 below provides a list of some of the orders made at the Singapore Airshow this year.5 Figure 1: Orders Announced at the Singapore Airshow 2012 (no particular order)

Buyer

Manufacturer

PT Lion Mentari Airlines

Boeing

ALAFCO

Airbus

Garuda Indonesia (GA)

Bombardier Aerospace

GoAir

Pratt & Whitney

Japan Airlines

Boeing

BOC Aviation Ethiopian Airlines Pakistan International Airlines

Commercial Aircraft Corp. of China (COMAC) Bombardier Boeing

Product Type

Quantity

Order Type

737-9 MAX aircraft 737-900ER aircraft A320neo Family aircraft CRJ1000 NextGen aircraft PurePower PW1100G-JM engines 787-9 Dreamliner aircraft

201 29

Firm Order Firm Order

Firm Order

Firm Order (18) Options (18)

144

Firm Order

C919 aircraft

Firm Order

Q400 NextGen aircraft

Firm Order

777-300ER aircraft

Firm Order

Note: This table does not provide an exhaustive list of deals and announcements made at the airshow. Orders listed are based on individual news releases.

Lion Air’s order is the largest of the show, and reportedly the largest single aircraft order for Boeing as well. It represents a fleet upgrade as many of the airline’s existing aircraft are scheduled for retirement over the next five years. This latest order will also significantly increase its fleet capacity, allowing it to expand its route network, including longer-haul routes opened by the737-900’s maximum extended http://www.aero-news.net/index.cfm?do=main.textpost&id=a2794a60-7424-4218-acac-1f8ac3f1308d http://news.in.msn.com/business/article.aspx?cp-documentid=5853799#page=1 3 http://www.cnbc.com/id/46378144?slide=1 4 http://www.asiaone.com/News/Latest+News/Singapore/Story/A1Story20120217-328672.html 5 This table does not provide an exhaustive list of deals and announcements made at the airshow. Orders listed are based on individual news releases. Page 12 InterVISTAS’ Aviation Intelligence Report March 2012 Copyright ©2012 InterVISTAS Consulting Inc., all rights reserved. 1 2

range of 5,900 km. This would allow the airline to serve cities as far away as Sydney, Australia; New Delhi, India or possibly even Tokyo, Japan6. Lion Air was the launch customer for the 737-900ER in 2007, and is again the launch customer for Boeing’s 737-9 MAX variant, scheduled for first delivery in 2017. Garuda Indonesia’s order for 18 CRJ1000 aircraft (with options for 18 more) will allow the airline to expand its route network, with more frequent operations on high-volume short- and medium-haul routes. The airline intends to base the aircraft at its three domestic hubs, Makassar, Medan and Balikpapan. The airline’s current fleet ranges from 96-seat Boeing 737-500s to 337-seat Boeing 777300ERs. The seat configuration for the CRJ1000s has not been announced but is in the 100-seat range.

Source: Great Circle Mapper, http://www.gcmap.com.

Page 13 March 2012

LATIN AMERICA REPORT March 2012

Brazil Selects Successful Bidders for Three Airports Last month, Brazil selected the successful bidders for the concession of São Paulo’s Guarulhos – Governador André Franco Montoro (GRU) and Viracopos – Campinas (VCP) international airports as well as Brasília’s Juscelino Kubitschek International Airport (BSB). Collectively, the three assets fetched BRL 24.5 billion, which was 347% higher than the combined reserve price set by the government for the airports. A summary of the bids lodged is shown in Table 1 below.

Kenneth Currie Executive Vice President

Table 1: Summary of Concession Bids Airport GRU

VCP

BSB

Key consortium members

Airport operator

Final bid price (BRL billions)

OAS, Brazilian Pension Funds (90%)

ACSA (10%)

16.213 *

Ecorodovias (50%)

Fraport (50%)

12.863

OHL (50%)

AENA (50%)

12.000

Engevix (50%)

Corporación America (50%)

11.500

CCR (90%)

Zurich Airport (10%)

8.872

Advent

ASUR

8.530

Odebrecht, Safra Fund (60.8%)

Changi (39.2%)

8.321

Carioca, GP Investimentos

ADP – Schiphol

6.120

Queiroz Galvão

BAA/Ferrovial

6.010

Triunfo, UTC (90%)

Egis (10%)

4.551

Triunfo, UTC (90%)

Egis (10%)

3.821 *

Odebrecht, Safra Fund (60.8%)

Changi (39.2%)

2.524

OAS, Brazilian Pension Funds (90%)

ACSA (10%)

2.213

OHL (50%)

AENA (50%)

1.700

Engevix (50%)

Corporación America (50%)

4.501 *

OHL (50%)

AENA (50%)

4.400

Old Mutual, Fidens

ADC & HAS

3.901

OAS, Brazilian Pension Funds (90%)

ACSA (10%)

3.213

Queiroz Galvão

BAA/Ferrovial

2.500

Triunfo, UTC (90%)

Egis (10%)

1.821

CCR (90%)

Zurich Airport (10%)

0.982

Changi (39.2%)

0.582

Odebrecht, Safra Fund (60.8%) * Successful bid.

Many challenges remain for the successful bidders as the transactions are finalized and the operation and expansion of the airports begins. Each of the successful bidders will be required to complete a capital expenditure program designed to increase the capacity of each of the airports prior to the World Cup events in 2014. New terminal buildings are expected at each of the airports, along with an expanded airfield at VCP. The successful bidders will be under substantial pressure to deliver these improvements in a relatively short period of time, or risk not meeting the terms of the concession. Doubts have been raised about Page 14 March 2012

the ability of the successful bidders to deliver capacity on time given that they are not among the largest Brazilian construction and engineering firms. Groups such as Andrade Gutierrez, Camargo Corrêa, Odebrecht, and Queiroz Galvão are considered the most capable of marshaling the resources necessary to do so. In addition, some critics question the ability of the airport operators involved with the successful bidders to manage the airports at world-class standards and generate the financial returns necessary to justify the bid prices. While ACSA successfully operates large airports in South Africa, Egis’ experience is with smaller airports in Africa, and Corporación America had to renegotiate its contract to operate 33 airports in Argentina. (Corporación America was also the successful bidder to operate a new airport for Natal, Rio Grande do Norte.) Absent from the successful bidders were leading international airport operators such as ADC & HAS, ADP, AENA, BAA, Changi, Fraport, Schiphol, and Zurich. The Brazilian Government was very pleased with the level of interest garnered by and the premium paid for GRU, VCP, and BSB, which ensures concessions of more airports, though additional qualifications may be placed on bidders of future concessions. The next tranche of airports will include Tom Jobim Galeão International Airport in Rio de Janeiro.

Mexican Airport Operators Experience Traffic Recovery and Unit Revenue Increases in 4Q 2011 Private operators of Mexico’s airports, Aeropuertos del Sureste (“ASUR”), Grupo Aeroportuario del Centro Norte (“OMA”), and Grupo Aeroportuario del Pacífico (“GAP”), have reported significant gains in passenger traffic, aeronautical, and non-aeronautical revenues in the fourth quarter of 2011 as shown in Table 2. The three airport operators have benefitted from increases in domestic airline capacity as AeroMexico, InterJet, VivaAerobus, and Volaris added flights to replace capacity lost as a result of the suspension of operations by Mexicana. Those airlines, in addition to American and Continental, also added ASUR 11.7% 19.8% 23.1% capacity on routes between Mexico and the GAP 7.3 12.9 22.3 United States. In the coming quarters, Mexico – U.S. airline capacity will continue to OMA 7.1 18.3 32.7 increase as a result of new capacity from these airlines as well as from the inauguration of new services by AirTran Airways, a subsidiary of Southwest Airlines, and the possible resurrection of Mexicana. Table 2: Increase in Traffic and Revenue Quarter-ended December 31, 2011 Versus Prior Year Period Passengers Aeronautical Nonrevenue aeronautical revenue

Aeronautical revenue at ASUR, GAP, and OMA increased at rates that exceeded passenger growth largely as a result of increases in regulated rates and charges in 2011. However, non-aeronautical revenues increased at higher rates as the airport operators improved the portfolio of services available to customers in their assets. The availability and pricing of automobile parking products were improved, terminal retail shop allocation and assortment were maximized, airport lands were developed, and contracts between the airport operators and their concessionaires were improved to incentivize mutual success. The superior performance of non-aeronautical revenue in Mexico is consistent with international trends, and represents the segment of the airport business with the largest potential upside. Nonaeronautical revenue increases are not limited by regulation, and improvements made to increase such revenues typically improve customer service in the process. With continued increases in airline service and improved goods and services available to users, Mexican airport operators can be expected to continue to experience positive revenue trends. Page 15 March 2012

AIRLINE TRAFFIC – NORTH AMERICA North American Carriers Release Traffic Figures for January 2012 The major Canadian carriers showed positive results in January 2012, with each posting growth in passengers, seats and load factors. Porter Airlines showed the strongest growth, with a 41% increase in passengers, 31% increase in seats and its load factor rose 4 points as the carrier continues to expand its route network in Canada and the U.S. In the U.S., United and Southwest were the only carriers to post decreases in all three metrics this month. Delta’s decrease in passengers was outpaced by its decrease in seats, resulting in a load factor increase of 2.3 points. Similarly, American Airlines passenger traffic increased while its available seats decreased, resulting in an improved load factor versus January 2011. North American Carrier Traffic

Traffic (RPMs – millions)

Airline

Capacity (ASMs – millions)

Load Factor

CANADA 4,354 3.3%

5,507 1.9%

79.1% 1.1 pts

1,532 11.5%

1,918 8.6%

79.9% 2.1 pts

62.2 41.0%

111.6 31.0%

55.7% 4.0 pts

2,508 13.3%

3,107 12.3%

80.7% 0.7 pts

751 10.3%

1,118 5.6%

67.2% 2.8 pts

15,337 3.2%

19,749 2.8%

77.7% 0.2 pts

10,004 1.4%

12,740 2.1%

78.5% 2.7 pts

13,909 1.5%

17,953 4.3%

77.5% 2.3 pts

4,632 3.8%

5,879 3.1%

78.8% 0.5 pts

7,381 2.7%

9,938 0.7%

74.3% 1.5 pts

UNITED STATES

Notes:

1. Consolidated results for United Continental Holdings. 2. Results are for mainline operations which include US Airways Express flights operated by wholly owned subsidiaries PSA Airlines and Piedmont Airlines. 3. Results are combined traffic results for Southwest Airlines and AirTran.

Source:

Carrier traffic reports.

Page 16 March 2012

AIRLINE TRAFFIC – EUROPE European Airlines Release Traffic Figures for January 2012 There were positive results for each of the three European carriers, with the exception of British Airways’ slight decrease in available seats this month. European Carrier Traffic

Traffic (RPKs – millions)

Capacity (ASKs – millions)

Load Factor

17,555 3.7%

21,504 0.6%

81.6% 2.5 pts

14,717 1.6%

19,968 1.1%

73.7% 0.4 pts

13,093 1.1%

17,303 1.5%

75.7% 2.0 pts

Airline

Notes:

1. Includes Martinair. 2. Includes Lufthansa Passenger Airlines, SWISS, Austrian Airlines, British Midland, and Germanwings.

AIRLINE TRAFFIC – ASIA PACIFIC Asia-Pacific Airlines Release Traffic Figures for January 2012 Despite a 3.8% growth in capacity, Singapore Airlines passenger traffic did not keep pace, resulting in a load factor decrease of 1.1 points. Japan Airlines shows decreased RPK and ASK results in January, marking its 5th consecutive month of decreases. Meanwhile, Cathay Pacific’s passenger traffic and available seats have both grown strongly, with a slight increase in load factor points. Qantas’ traffic and capacity increased in January 2012 compared to January 2011. Asia-Pacific Carrier Traffic

Airline

Traffic (RPKs – millions)

Capacity (ASKs – millions)

Load Factor

10,233 8.5%

12,454 6.8%

82.2% 1.3 pts

7,679 2.4%

9,971 3.8%

77.0% 1.1 pts

4,331 3.2%

6,798 1.9%

63.7% 0.9 pts

9,365 9.5%

11,431 8.7%

81.9% 0.6 pts

Notes:

1. Includes Qantas Domestic, QantasLink, Jetstar Domestic, Qantas International, Jetstar International, and Jetstar Asia. 2. Includes Cathay Pacific and Dragonair.

Source:

Carrier traffic reports

Page 17 March 2012

Summary of Total Year-Over-Year Passenger Traffic Performance at Selected Canadian Airports Total passenger traffic at the selected Canadian airports below increased in 2011 compared to 2010. Among these airports, Toronto Pearson International Airport (YYZ) recorded the strongest annual growth, with a 4.7% increase in passengers year-over-year, primarily attributable to a 7.6% year-over-year increase in the volume of its international passengers.

2011

Toronto

Vancouver

Montréal

Calgary

Edmonton

Ottawa

Winnipeg

Halifax

Victoria

Kelowna

Saskatoon

Regina

January February March 1st Quarter April May June 2nd Quarter July August September 3rd Quarter October November December 4th Quarter

+6.8% +4.6% +5.0% +5.5% +6.1% +5.3% +4.6% +5.3% +6.1% +4.9% +5.4% +5.5% +2.0% +3.1% +2.0% +2.3%

+3.0% -3.1% +0.5% +0.1% +0.5% +1.5% +1.1% +1.1% +1.8% +3.3% +2.8% +2.7% +0.0% +1.9% +3.9% +2.0%

+8.5% +5.1% +5.9% +6.5% +6.9% +5.6% +5.8% +6.1% +7.4% +4.9% +5.4% +5.9% +2.6% +3.0% +2.0% +7.4%

+2.0% -1.1% -0.8% 0.0% +2.2% +1.8% +0.8% +1.6% +1.2% +3.2% +2.1% +2.2% +0.3% -0.6% +1.7% +0.5%

+0.7% +0.3% +1.7% +0.9% +3.1% +2.5% +1.8% +2.5% +4.0% +3.3% +4.1% +3.8% +5.8% +5.4% +4.2% +5.1%

+3.2% +3.2% +0.1% +2.1% +2.7% +1.8% +0.2% +1.5% +4.9% +2.6% +6.7% +4.7% +4.7% +7.3% +4.4% +5.5%

-2.7% -2.2% -2.6% -2.5% -1.4% -2.4% -0.6% -1.4% +1.5% +4.6% +1.9% +2.7% +2.8% +4.3% +3.8% +3.6%

+4.0% +12.3% +1.4% +5.4% +3.4% +0.3% +1.1% +1.6% +0.7% +0.3% +1.7% +0.8% +1.6% +4.7% +2.9% +2.9%

+1.6% +1.5% -5.6% -1.2% -5.5% -1.4% -3.4% -3.4% +1.3% +1.4% -2.9% 0.0% -0.4% 0.0% +2.3% +0.6%

-1.9% +4.9% -3.0% -0.2% -3.1% -1.6% +1.7% -1.0% -0.1% -2.5% +2.7% -0.2% +1.7% -0.2% +1.0% +0.9%

-2.6% -0.3% +4.7% +0.4% -0.6% +0.9% +0.7% +0.4% +4.3% +1.4% +5.2% +3.6% +7.2% +7.0% +3.4% +5.8%

+3.9% +2.4% +5.2% +3.8% +6.2% +3.7% -2.1% +2.6% -1.7% -3.3% +4.2% -0.4% -0.9% +3.1% +2.3% +1.5%

Full Year

+4.7%

+1.5%

+2.5%

+1.1%

+3.1%

+3.4%

+0.6%

+2.5%

-1.0%

-0.1%

+2.5%

+1.9%

Source: Individual airports’ traffic reports. Note: Subject to revision.

Page 18 March 2012

Summary of Total Year-Over-Year Passenger Traffic Performance at Selected U.S. & International Airports Total passenger traffic at the selected U.S. airports below increased in 2011 compared to 2010, and overall annual volume at selected international airports increased year-over-year. United States

2011

Atlanta

Chicago

January February March 1st Quarter April May June 2nd Quarter July August September 3rd Quarter October November December 4th Quarter

-1.5% +4.7% +4.0% +2.5% +2.2% +7.5% +4.6% +4.8% +5.6% +5.3% +3.2% +4.8% +2.4% +3.1% +1.21% +1.2% +2.2%

+1.7% -4.9% +0.4% -0.8% -0.3% -0.6% +1.6% +0.3% -1.3% -0.6% +0.2% -0.6% -0.9% -1.9% +2.0% -0.3%

Los Angeles +1.2% +4.1% +2.9% +2.7% +7.3% +10.5% +6.0% +7.9% +6.7% +5.1% +6.1% +6.0% +2.7% +3.7% -0.4% +2.0%

Full Year

+3.6%

-0.4%

+4.6%

International London Heathrow +4.6% +0.5% +2.3% +2.5% +31.5% +11.6% +6.3% +15.3% +2.5% +0.7% +1.4% +1.5% -1.3% -0.5% +14.7% +3.8%

Paris

Frankfurt

Beijing

+5.5% +2.8% +1.2% +3.0% +1.1% +3.8% +1.5% +2.1% +0.8% +2.3% +0.6% +1.3% -2.4% +1.6% +2.1% +0.3%

New York JFK +1.5% +3.8% +5.1% +3.5% +8.2% +6.5% +1.6% +5.2% +3.0% -3.6% +2.6% +0.6% -0.2% -1.3% +3.7% +1.1%

+3.9% +4.6% +0.1% +2.7% +26.9% +1.8% +3.2% +9.3% +4.0% +1.1% +4.7% +3.2% +1.3% +2.2% +9.0% +4.0%

+5.2% +8.1% -0.9% +3.7% +31.2% +5.8% +4.9% +12.3% +5.2% +2.5% +4.3% %%+4.0 +4.0%

+1.7%

+2.5%

+5.5%

+4.8%

Dallas

Denver

+1.6% +0.9% +1.2% +1.2% -0.9% +0.6% +3.3% +1.1% +3.8% +2.9% +4.9% +3.9% +0.9% +0.7% -1.6% 0.0% +1.6%

+2.5% +4.3% +12.2% +5.9%

+13.6% +4.1% +5.3% +7.6% +10.6% +7.9% +6.7% +8.4% +3.7% +5.4% +6.7% +5.3% +3.8% +7.2% +2.7% +4.5%

Tokyo Narita -8.2% -9.2% -28.9% -16.0% -37.7% -28.4% -24.3% -30.0% -18.4% -12.5% -15.0% -15.3% -13.8% -5.9% +0.4% -6.8%

Mexico City -2.3% -1.8% -2.2% -2.1% +6.1% +7.7% +3.0% +5.6% +4.5% +7.0% +29.1% +11.7% +19.6% +20.7% +23.4% +21.3%

+6.5%

+6.4%

-17.1%

+9.3%

Source: Individual airports’ traffic reports. Note: Subject to revision.

Page 19 March 2012

AVIATION NEWS CANADA UPDATE ANGUS WATT APPOINTED AS CEO OF THE CANADIAN AIR TRANSPORT SECURITY AUTHORITY On 21 December 2011, The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities, and the Honourable Steven Fletcher, Minister of State (Transport), announced that Lieutenant-General (retired) Angus Watt has been appointed as CEO of the Canadian Air Transport Security Authority (CATSA). Mr. Watt will serve for a five-year term, effective January 3, 2012. He had served with the Royal Canadian Air Force for over 30 years, where he has held various leadership positions. PORTER AIRLINES ANNOUNCES SERVICE BETWEEN WASHINGTON AND TORONTO On 11 January 2012, Porter Airlines announced that starting 16 April 2012, it will be offering services between Washington Dulles International Airport and Billy Bishop Toronto City Centre Airport three-times daily. The new service will be the sixth U.S. destination added to the carrier’s network. COMOX VALLEY AIRPORT RECOGNIZED FOR REBRANDING STRATEGY Comox Valley Airport (YQQ) was recognized as one of the most effective rebrands in the world in the annual REBRAND 100® Global Awards. The rewards program focuses on brand repositioning and ranks strategies launched across the globe between January 2009 and September 2011.

Page 20 March 2012

VANCOUVER AIRPORT AUTHORITY ANNOUNCES 10-YEAR STRATEGY On 25 January 2012, Vancouver Airport Authority announced a 10year strategy, which includes $1.8 billion in improvements to Vancouver International Airport (YVR). In order to fund these projects, the Airport Authority will be increasing the airport improvement fee paid by passengers travelling to destinations outside of British Columbia by $5 (to $20) effective 1 May 2012. The goal of the strategy and airport improvements is to maintain YVR’s competitive position as Canada’s gateway to Asia. AIR CANADA TO LAUNCH NEW NON-STOP FLIGHTS BETWEEN TORONTO AND NEW YORK On 25 January 2012, Air Canada announced that it will be launching new non-stop flights between Toronto Pearson International Airport and John F. Kennedy International Airport in New York City. Beginning 3 May 2012, the new service will be offered three-times daily, and will be operated by Air Canada Express. Air Canada will be the only airline to offer services to all three main airports in the New York City area. OTTAWA INTERNATIONAL AIRPORT AUTHORITY CELEBRATES 15TH YEAR ANNIVERSARY On 1 February 2012, the Ottawa International Airport Authority celebrated its 15th anniversary as an airport authority. Transport Canada transferred the management and operation of Ottawa International Airport to the Airport Authority on 1 February 1997. Since then, passenger traffic at the airport has grown 49%, contributing to and supporting the economic growth of the National Capital Region.

WESTJET INTRODUCES NEW NON-STOP SERVICES TO CHICAGO FROM VANCOUVER AND CALGARY On 7 February 2012, WestJet announced that it will be introducing new non-stop services to Chicago from Vancouver and Calgary beginning 14 May 2012, subject to government approval. The new flights will be offered daily and operated by Boeing 737 Next-Generation aircraft. The carrier currently offers code-share flights with American Airlines to Chicago from Toronto, Ottawa and Montréal.

WESTJET SETS NEW SINGLE-DAY RECORD WITH NEARLY 53,000 GUESTS On 26 February 2012, WestJet announced that it has reached a new record for the most number of passengers flown in a day, with 52,992. This is approximately 600 more guests than their previous record, which was just set on 22 December 2012. The carrier credits the busy week in travel to Canadian post-secondary students travelling for their mid-term break and families going on vacation on the week of Family Day in certain provinces.

MICHAEL SEABROOK APPOINTED PRESIDENT/CEO OF GREATER LONDON INTERNATIONAL AIRPORT AUTHORITY On 13 February 2012, the Board of the Greater London International Airport Authority announced that it has appointed Michael Seabrook as President/CEO. Mr. Seabrook has 21 years of experience in air transportation, and currently holds the position as Vice President at London International Airport. He will assume his new position on 1 May 2012.

AIR CANADA EXTENDS NON-STOP SERVICE FROM CALGARY TO TOKYO YEAR-ROUND On 29 February 2012, Air Canada announced that it will be extending its non-stop flights from Calgary to Tokyo Narita to year-round services in response to strong demand by business and leisure travellers and freight forwarders. The service, which was previously offered only in the summer, will now be offered five-times weekly from 27 April 2012 to 26 October 2012, and offered three-times weekly for the winter season beginning 27 October 2012.

GOVERNMENT OF BRITISH COLUMBIA ELIMINATES JET FUEL TAX FOR INTERNATIONAL FLIGHTS The Government of British Columbia announced on 23 February 2012 that it will be eliminating the jet fuel tax for international flights effective 1 April 2012. By eliminating the aviation fuel tax and lowering airline costs, this places Vancouver International Airport in a competitive position and is expected to increase the number of flights to the province.

Page 21 March 2012

UNITED STATES UPDATE TERMINAL 1-LINDBERGH AT MINNEAPOLISST. PAUL INTERNATIONAL AIRPORT CELEBRATES 50TH ANNIVERSARY Last January 2012, Terminal 1– Lindbergh at MinneapolisSt. Paul International Airport (MSP) celebrated its 50th anniversary. When the terminal opened in 1962 it had 600,000 square feet and handled 14,000 travelers per day. Since then, the terminal has increased to 2.8 million square feet and accommodates approximately 80,000 passengers a day.

INDIANAPOLIS INTERNATIONAL AIRPORT ADDS CARGO FLIGHT. On 15 January 2012, Indianapolis International Airport (IND) launched a new scheduled all-cargo flight to Luxembourg, Europe. The new air cargo service is offered once a week and is operated by Cargolux Airlines with Boeing 747 freighter aircraft. The cargo flight, arranged by freight forwarder DB Schenker, is the third all-cargo service launched at the airport.

AMERICAN AIRLINES ADDS FOURTH EUROPEAN DESTINATION FROM MIAMI On 24 January 2012, American Airlines announced that it will be adding Barcelona El Prat International Airport (BCN) as a fourth European destination from Miami International Airport (MIA). Flights between Miami and Barcelona will be offered five-times a week beginning 3 April 2012, and will expand to once daily beginning 14 June 2012. The new service will be operated with Boeing 767-300 aircraft.

VIRGIN AMERICA ANNOUNCES NEW SERVICES TO PHILADELPHIA FROM LOS ANGELES AND SAN FRANCISCO On 17 January 2012, Virgin America announced new nonstop services from Philadelphia to Los Angeles and San Francisco. Flights to Los Angeles will be offered three times daily beginning 4 April 2012, while flights to San Francisco will be offered twice daily beginning 10 April 2012. Virgin America will be the first non-legacy carrier to offer non-stop service to the West Coast from Philadelphia International Airport.

FIRST CHARTER FLIGHT TO CUBA LAUNCHED FROM HOUSTON On 2 February 2012, the first charter flight to Cuba departed from George Bush Intercontinental Airport (IAH) in Houston. The charter service was operated by Miami Air using a Boeing 737 aircraft, and carried 80 passengers. In March 2011, IAH was among nine other airports that were given authorization to offer services to Cuba. Prior to this, only three U.S. airports – John F. Kennedy Airport, Los Angeles International Airport and Miami International Airport – were permitted to offer flights to Cuba.

DAVID ENDICOTT NAMED VICE PRESIDENT, INFORMATION TECHNOLOGY INFRASTRUCTURE OF US AIRWAYS On 19 January 2012, US Airways announced that it has named David Endicott as Vice President, Information Technology Infrastructure. In addition to working with vendors that provide network and systems services, Mr. Endicott will be responsible for the carrier’s data center operations, network operations and field support functions. He has over 25 years of experience in IT, including 12 years with Sabre Holdings, Inc. where he held the position of senior vice president/chief technology officer, airline solutions.

Page 22 March 2012

UNITED AIRLINES TO LAUNCH DAILY NONSTOP FLIGHTS BETWEEN NEW YORK AND ISTANBUL On 21 February 2012, United Airlines announced that it will be launching daily non-stop services between Newark Liberty International Airport (EWR) and Istanbul Ataturk Airport (IST) starting on 1 July 2012, subject to government approval. With the new service, the carrier will offer services to 76 international destinations from EWR, and will offer flights on 37 routes across the Atlantic, making United Airlines the carrier with the most number of services offered from the New York area.

DELTA AIR LINES APPOINTS PAUL A. JACOBSON AS CHIEF FINANCIAL OFFICER Delta Air Lines announced that it has appointed Paul A. Jacobson as Chief Financial Officer and Senior Vice President, effective 1 March 2012. Mr. Jacobson has served with the carrier for 15 years and currently holds the position of Senior Vice President and Treasurer at Delta Air Lines. He will be taking the place of Hank Halter, who has announced his retirement form Delta.

EUROPE UPDATE LUFTHANSA OPERATES FIRST COMMERCIAL BIOFUEL FLIGHT TO THE U.S. FROM EUROPE On 12 January 2012, Lufthansa operated the first commercial biofuel flight from Europe to the U.S., using a Boeing 747-400 aircraft. According to the carrier, approximately 38 tons of carbon dioxide (CO2) emissions were reduced by using biofuel to power the commercial flight, and it is expected that approximately 15,000 tons of CO2 emissions will be reduced per week. Lufthansa is the first carrier to operate regularly scheduled commercial flights using biofuel. BRITISH AIRWAYS RESUMES FLIGHTS BETWEEN LONDON AND LIBYA On 23 January 2012, British Airways announced that it will be resuming services between London Heathrow Airport (LHR) and Tripoli International Airport (TIP) following a security review by the U.K. Government and Libyan authorities. The services will resume on 1 May 2012, and will be offered thrice weekly. Flights between London and Tripoli were suspended in February 2011.

Page 23 March 2012

SPANAIR SUSPENDS OPERATIONS FOR FINANCIAL REASONS On 28 January 2012, Spanair, a carrier based in Barcelona, suspended operations for financial reasons. The cancelation of flights occurred after the carrier was told it would no longer be eligible to receive loans supported by the government. According to the European Low Fares Airline Association, Spanair received approximately €25 million in public funds from the regional government and city council of Barcelona. Previously, Qatar Airways had shown interest in potentially taking a stake in the carrier; however, this did not come to fruition. AIRBERLIN PERMITTED TO BECOME ONEWORLD ALLIANCE MEMBER IN MARCH 2012 On 2 February 2012, airberlin was granted permission to become a member of the oneworld alliance. The carrier is expected to join the alliance on 20 March 2012. airberlin’s entry application to the alliance is being sponsored by British Airways. FlyNIKI, a member of the airberlin group, will also be joining oneworld as an affiliate airline. The oneworld alliance currently has 11 member carriers and approximately 20 affiliate members. PASSENGER TRAFFIC AT PARIS AIRPORTS INCREASES BY 3% IN JANUARY 2012 On 15 February 2012, Aéroports de Paris announced that passenger traffic at Paris Charles de Gaulle (CDG) Airport and Paris Orly Airport (ORY) increased by 3.3% and 2.7%, respectively, in January 2012 compared to January 2011. CDG welcomed 4.5 million passengers during the month, while ORY welcomed 1.9 million passengers. Altogether Aéroports de Paris handled 6.4 million passengers in January 2012, 3.1% more than the same period last year.

FLIGHTS CANCELLED AT FRANKFURT AIRPORT DUE TO STRIKES BY GROUND CREW A number of strikes at Frankfurt Airport (FRA) were carried out in the second half of February 2012 by ground crew workers. The workers, represented by the GdF union, were unable to reach an agreement on working conditions and wages with the airport’s operator Fraport AG. As a result of the strikes, 20% of flights were cancelled at the airport. According to Fraport AG, approximately €1 million in revenue was lost each day of the strikes. PARIS AIR CARGO SERVICE TO RETURN TO HARTSFIELD-JACKSON ATLANTA INTERNATIONAL AIRPORT On 23 February 2012, HartsfieldJackson Atlanta International Airport (ATL) announced that scheduled air cargo service from Paris to Atlanta will be returning to the airport on 27 March 2012. The cargo flights will be operated twice weekly by Air France Cargo with a Boeing 747 freighter, while sales and customer service will be provided by Air France-KLM Cargo and Martinair Cargo. The freighter service between the two cities was previously offered at ATL from 1997 to 2009. AUSTRIAN AIRLINES TO INCREASE FREQUENCY OF SERVICES TO EASTERN EUROPE Austrian Airlines announced that it will be increasing the frequency of its services to Eastern European destinations effective 25 March 2012. In particular, the carrier will be offering services to Tel Aviv and Tehran from Vienna, to be operated by B767-300ER aircraft, in place of its Vienna–Mumbai services. The additional services are part of the carrier’s corporate strategy.

Page 24 March 2012

ASIA-PACIFIC UPDATE AIR NEW ZEALAND NAMED 2012 AIRLINE OF THE YEAR BY AIR TRANSPORT WORLD On 10 January 2012, Air Transport World (ATW) announced that Air New Zealand has been named as the 2012 Airline of the Year in ATW’s 38th Airline Industry Achievement Awards. The editors recognized Air New Zealand as the top carrier in the industry in areas such as market position, product innovation, yield and social media. The carrier was also credited for operating a fuel-efficient fleet. The award was presented to Air New Zealand by ATW editors at the Gala Awards Presentation Dinner held on 13 February 2012 at the Pan Pacific in Singapore. SINGAPORE CHANGI AIRPORT REPORTS NEW RECORD IN 2011 On 20 January 2012, Singapore Changi Airport reported that the airport reached a new record for passenger traffic and aircraft movements in 2011, with 46.5 million passenger movements and 302,000 aircraft movements. This is equivalent to an increase of 10.7% in passenger traffic and 14.5% in aircraft movements compared to the previous year. Airfreight movements also increased by 2.8% year-overyear to 1.87 million tonnes of cargo handled in 2011, reaching the same levels as 2008. CHINESE GOVERNMENT RAISES DOMESTIC JET FUEL PRICES IN FEBRUARY 2012 In February 2012, the Chinese Government raised domestic jet fuel prices by 1.43% to ¥7,465 (US$1,186) per ton from the previous month. In January 2012, domestic jet fuel cost ¥7,360 (US$1,164) per ton. Domestic fuel prices have been adjusted by the government on a monthly basis since July 2011 according to the fluctuations in international fuel prices. Even though the government has increased prices, carriers are unable to raise fuel surcharges that are paid by passengers.

PAKISTAN INTERNATIONAL AIRLINES PLACES ORDER FOR FIVE B777-300ERs On 20 February 2012, Boeing announced that Pakistan International Airlines has placed a firm order for five B777300 ER aircraft plus five options. At list prices, the airplanes are valued at $1.56 billion. The carrier intends to use the new aircraft to replace older long-haul aircraft, and to operate new routes. Pakistan International Airlines has plans to introduce new services to accommodate the increased passenger traffic in the region. VIRGIN AUSTRALIA TO IMPLEMENT SURCHARGES IN RESPONSE TO CARBON PRICING SCHEMES On 28 February 2012, Virgin Australia announced that it will be implementing surcharges in response to the carbon pricing schemes of Australia and the European Union (EU). The European Union Emission Trading Scheme (ETS) came into effect for airlines on 1 January 2012, while Australia’s carbon pricing scheme will be implemented on 1 July 2012. Beginning on 1 March 2012, tickets sales for all domestic flights on or after 1 July 2012 will include a AU$1.50 surcharge for flights with a distance within 1-900 km, AU$3.00 for flights with a distance within 901-2,000 km, and AU$6.00 for flights with a distance of more than 2,000 km. CDI CARGO AIRLINES RECEIVES APPROVAL TO LAUNCH CDI Cargo Airlines, a new cargo venture based in Hangzhou, received launch approval from the Civil Aviation Administration of China (CAAC). The air cargo carrier’s services will be operated by B737-800 freighter aircraft. More than half of the carrier’s ownership belongs to Huixiang Industrial Investment Co., which invested CNY102 million. Other owners include Haofu Group (with a 24% stake), Asia Yingsheng Investment Co. (with a 15% stake) and Caulfield Investment Co. (with a 10% stake).

Page 25 March 2012

JAPANESE LOW COST CARRIER GRANTED APPROVAL TO LAUNCH IN AUGUST 2012 Japanese low cost carrier, AirAsia Japan, received an Air Operators’ Certificate (AOC) from the Civil Aviation Bureau of the Ministry of Land, Infrastructure, Transport and Tourism of the Government of Japan, which grants the carrier approval to begin operations. AirAsia Japan is a joint venture between AirAsia and All Nippon Airways. The new carrier will be based at Tokyo Narita International Airport, and is expected to begin operations in August 2012.

LATIN AMERICA UPDATE PASSENGER TRAFFIC AT MEXICO CITY BENITO JUAREZ INTERNATIONAL AIRPORT INCREASES BY 9% IN 2011 On 2 January 2012, Mexico City Benito Juarez International Airport (MEX) reported that passenger traffic handled at the airport increased by 9% in 2011 compared to 2010. In 2011, MEX welcomed 26.4 million travellers, which is more than the number of travellers in 2008 (26.3 million passengers) prior to the global economic downturn. Aircraft movements at the airport also grew by 2% from 339,898 in 2010 to more than 348,000 in 2011. AVIANCATACA PLACES LARGEST ORDER FOR AIRBUS AIRCRAFT BY A SINGLE AIRLINE IN REGION On 26 January 2012, Airbus announced that AviancaTaca has placed an order for 33 ecoefficient A320neo aircraft and 18 A320 Family aircraft. With a total of 51 aircraft, the order is the largest purchase agreement made between Airbus and a Latin American carrier thus far. AviancaTaca currently operates a fleet of 88 A320-family aircraft and eight A330 aircraft. The new orders are expected to support the carrier’s expansion into new Latin American markets.

COPA HOLDINGS REPORTS INCREASE IN NET INCOME BY 29% FOR 2011 On 8 February 2012, Panama’s Copa Airlines and Copa Airlines Columbia’s parent company, Copa Holdings, reported that the group recorded an increase in net income by 29% to $310.4 million in 2011. In 2010, the parent company reported a net profit of $241.1 million. Together, seat capacity for the group grew by 22% year-overyear, while passenger traffic grew 21% over the same time period. Copa Holdings forecasts its consolidated capacity in 2012 to increase by another 22%. CARIBBEAN AIRLINES LAUNCHES NONSTOP FLIGHT BETWEEN TRINIDAD AND ST. LUCIA On 10 February 2012, Caribbean Airlines launched its non-stop flight between George F. L. Charles International Airport (SLU) in Castries, St. Lucia and to Piarco International Airport (POS) in Port of Spain, Trinidad. The flights will be operated daily. Caribbean Airlines passengers from St. Lucia are able to avail of the carrier’s direct connections to South American destinations, such as Paramaribo, Suriname and Guyana. AEROPUERTOS ARGENTINA 2000 TO REPAIR RUNWAY AT ESQUEL AIRPORT On 13 February 2012, Aeropuertos Argentina 2000 announced that it will repair the runway and marking system at Esquel Brigadier General Antonio Parodi Airport (EQS). The project is estimated to cost 22 million Argentine pesos (US$5.1 million), and is scheduled to be completed on 2 April 2012. EQS is one of 33 airports operated and managed by Aeropuertos Argentina 2000, and handles an average of 21,000 passengers each year.

Page 26 March 2012

TAM LINHAS AÉREAS REACHES RECORD INTERNATIONAL PASSENGER LOAD FACTOR IN 2011 TAM Linhas Aéras announced that it reached record international passenger load factors in 2011, with a passenger load factor of 81.4%. International passenger traffic and international seat capacity during the period both grew by 12.7% and 10.0%, respectively. In 2011, the carrier comprised 88.1% of Brazil’s international market share. LAN TO OFFER ADDITIONAL SERVICES TO NORTH AMERICAN AND CARIBBEAN DESTINATIONS LAN airlines announced that, together with its sister carrier LAN Peru, it will be offering additional services to North American and Caribbean destinations from Santiago and Lima. Although specific destinations have not been announced, New York, Los Angeles, San Francisco, Cancún and Mexico City are destinations that are being taken into consideration. Approximately 20 new additional flights will be added overall.

MIDDLE EAST / AFRICA UPDATE ETIHAD AIRWAYS SIGNS PURCHASE AGREEMENT WITH AIRBUS FOR ADDITIONAL FREIGHTERS Etihad Airways signed a purchase agreement with Airbus for two additional A330-200 freighter aircraft on 26 January 2012. The order is valued at US$423 million at list prices. The carrier’s freighter operation, Etihad Crystal Cargo, currently operates two A330-200Fs.

ROYAL JORDANIAN REACHES RECORD NUMBER OF PASSENGERS IN JANUARY 2012 Royal Jordanian announced that it had reached a record number of 268,000 passengers in January 2012. This was an increase by 25% over the same period last year, when 213,000 passengers were flown. The growth in passenger traffic, the highest for the month of January since the establishment of the airline, led to a 2% increase over the estimated budget. The Royal Jordanian aims to continue to increase passenger traffic through its services to 60 Arab and international destinations. ETHIOPIAN AIRLINES PLACES FIRM ORDER FOR Q400 AIRCRAFT On 15 February 2012, Bombardier announced that Ethiopian Airlines has placed a firm order for five Q400 NextGen airliners. The carrier had already purchased eight of the same aircraft previously. The additional orders are valued at approximately US$160 million. Three of the five additional airliners will be operated by Ethiopian Airlines’ affiliate, ASKY Airlines of Togo. KENYA AIRWAYS ANNOUNCES DIRECT FREIGHTER SERVICE BETWEEN CHINA AND AFRICA On 21 February 2012, Kenya Airways announced that it will be launching the first direct freighter service between Mainland China and Africa. The air cargo service will be offered jointly by the carrier and KLM Royal Dutch Airlines. It will be operated by Kenya Airways’ cargo arm, KQ Cargo, using a Boeing 747-400F aircraft owned by Martinair, a subsidiary of the Air France KLM Group. The cargo service network called the “Safari Connection”, connecting Europe, China and Africa, will operate on the following route: Amsterdam-Guangzhou-Nairobi-Lagos-NairobiAmsterdam.

Page 27 March 2012

ABU DHABI INTERNATIONAL AIRPORT REPORTS 18% GROWTH IN PASSENGER TRAFFIC FOR JANUARY 2012 Abu Dhabi Airports Company (ADAC) announced on 25 February 2012 that passenger traffic at Abu Dhabi International Airport (AUH) grew by 18% in January 2012 year-over-year, with 1.14 million passengers and 9,874 aircraft movements. The busiest routes during the period were Doha, London, Bangkok, Manila and Sydney. Similarly, cargo traffic also increased by 11% (to 39,098 tonnes of cargo) in January 2012 compared to January 2011. NINE AFRICAN AIRLINES JOIN TOGETHER TO PURCHASE FUEL According to the African Airlines Association (AFRAA), nine African airlines have agreed to participate in a program wherein the carriers will purchase aviation fuel jointly. The nine carriers include Kenya Airways, Ethiopian Airlines, Air Malawi, Air Namibia, Air Seychelles, LAM Mozambique Airlines, Precision Air, Rwandair and TAAG Angola Airlines. Together the carriers will purchase 700 million liters of fuel valued at approximately US$1.5 billion. By jointly purchasing aviation fuel, the carriers hope to increase the value and quality of the fuel purchased. TURKISH TECHNIC TO OPEN MRO FACILITY IN INSTANBUL IN SUMMER OF 2012 Turkish Technic, a subsidiary of Turkish Airlines, is expected to open an aircraft maintenance, repair and overhaul (MRO) facility in Istanbul Sabiha Gokcen Airport (SAW) in early summer of 2012. Construction of the 375,000 sq. m. facility is expected to cost approximately US$500 million. According to Turkish Technic’s General Manager, Ismail Demir, the company has the goal of becoming one of the top five MRO companies in the world.

OTHER NEWS BOEING’S 2011 NET ORDERS INCREASE BY 52% On 5 January 2012, Boeing announced that its net orders increased by 52% in 2011 compared to 2010, with 805 net orders. In 2010, Boeing recorded 530 net orders. The U.S. aircraft manufacturer had a total of 477 aircraft deliveries in 2011, with majority of the deliveries (over 300) being 737 aircraft. IATA ANNOUNCES STRONG THIRD QUARTER FOR AIRLINES The International Air Transport Association (IATA) reported that despite the slow economy, airlines had a strong financial performance in the third quarter of 2011. Based on a sample of 61 airlines globally, a total combined net profit of $5 billion was reached for the period. However, IATA forecasts a negative outlook for airlines in 2012. BOMBARDIER AEROSPACE APPOINTS MIKE ARCAMONE AS PRESIDENT OF BOMBARDIER COMMERCIAL AIRCRAFT On 13 January 2012, Bombardier Aerospace appointed Mike Arcamone as the new president of Bombardier Commercial Aircraft effective 1 February 2012. Mr. Arcamone’s last position was president and CEO of GM Korea, and had served with GM since 1980. AIRBUS A350 HAS SUCCESSFUL TEST FLIGHT WITH TRENT XWB ENGINE Airbus reported that its A350 aircraft had a successful first test flight using the Rolls-Royce Trent XWB engine. The test flight had a flying time of five hours and reached up to 43,000ft in altitude. According to Airbus, the new engine showed that it was fuel efficient and had low noise.

Page 28 March 2012

INTERVISTAS NEWS The InterVISTAS Group continues to be active in delivering a diverse range of consulting projects around the world. Some of the new projects we are working on are listed below:

Alberta Tourism Parks and Recreation Provide air service development strategy for Latin America and India markets. Undertake detailed situation analysis and stakeholder consultations to create a China Air Service Development Strategy.

City of Syracuse Contract extension for continuation of air service development with additional cargo development work.

Delaware River & Bay Authority Perform a fare analysis of the Cape May (NJ) – Lewes (DE) Ferry.

Fayetteville Regional Airport Contract renewal to support air service development efforts.

Transaction Advisor to the Government of Croatia Act as Transaction Advisor to award the concession to build a new passenger terminal at Zagreb Airport.

Kilimanjaro International Airport Provide air service development support.

Nassau Airport Development Corporation Update air traffic forecast previously completed in 2008.

Ogdensburg Bridge and Port Authority (New York) Assist in strategic business planning efforts along with C&S Companies.

Ottawa International Airport Evaluate and secure new air services.

Prince Rupert Port Authority Measure and understand the port’s economic impact on Canada.

Regina International Airport and Saskatoon International Airport Prepare an analysis of the origin destination market sizes of both airports.

Spokane International Airport Support air service development initiatives.

Page 29 March 2012

U.S. – India Aviation Symposium Work along with the Business Council for International Understanding, to plan and conduct the symposium.

Victoria International Airport Revise the airport’s Master Plan.

Page 30 March 2012

INTERVISTAS NEWS – CONT’D The InterVISTAS Group is pleased to announce the following promotions and achievements of InterVISTAS staff members:

John Weatherill Promoted to Executive Vice President InterVISTAS is pleased to announce the promotion of John Weatherill to Executive Vice President, effective 1 January 2012. John has been with InterVISTAS since 2000, was promoted to Vice President in 2008 and to Senior Vice President on January 1, 2011. He completed DHV’s Management Development Program earlier last year and has the full support of the Executive Team and the Board of Directors in assuming leadership of the air service development practice. John has been a key contributor to the success of the Air Service Development (ASD) practice for many years and in his new leadership role will be expanding our air services consulting into new international markets. John will also become a member of the Executive Committee.

Kenneth Currie Promoted to Executive Vice President InterVISTAS is pleased to announce the promotion of Kenneth Currie to Executive Vice President, effective 2 February 2012. Kenneth has been part of the InterVISTAS Group as a Senior Vice President since the merger with Innova in early 2009. In his new role as Executive Vice President, Ken will continue to lead the PPP market development in Brazil, expand the PPP practice in the US, and develop a commercial/retail practice in North America. Ken will also be a full member of the Executive Committee of the InterVISTAS Consulting Group.

Stanley Tse Attains CSA Standards Certification as a Greenhouse Gas (GHG) Inventory Quantifier InterVISTAS is pleased to announce that Stanley Tse has successfully attained certification through CSA Standards as a Greenhouse Gas (GHG) Inventory Quantifier. The certification was developed by a panel of industry experts to assess professionals who are responsible for corporate or facility-based GHG inventory development, quantification, assessment and reporting – commonly known as a carbon footprint. The certification ensures that the Inventory Quantifier has the appropriate knowledge of and can apply the principles outlined in ISO 14064-1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals. As well as inventory quantification, Stanley has successfully completed training and written examinations for quantification and reporting of GHG projects (ISO 14064-2) and for verification of GHG assertions (ISO 14064-3). He will also pursue certification in these important areas of climate change.

Page 31 March 2012

INTERVISTAS NEWS – CONT’D InterVISTAS Recent and Upcoming Speaking Engagements Gerry Bruno, Group Chief Executive Officer Canadian Airports Council Conference: Toronto, O.N. – 20 March 2012 Mr. Bruno will be participating in the forum entitled “One of Our Airports is Missing! Tackling the Challenge of Cross Border Shopping, Air Travel Edition”.

John Weatherill, Executive Vice President Canadian Airports Council Conference: Toronto, O.N. – 20 March 2012 Mr. Bruno will be participating in the forum entitled “One of Our Airports is Missing! Tackling the Challenge of Cross Border Shopping, Air Travel Edition”.

Karla Petri, Manager, Consumer Research 15th Annual Manitoba Aviation Council Conference: Winnipeg, M.B. – 24 - 25 April 2012 Ms. Petri will be presenting on “The Changing Role of Aviation Councils in Canada: How BCAC’s Role is Evolving”.

Howard Mann, Vice President, Policy & Market Analysis Orange County Tourism Annual Conference: Newport Beach, CA – 15 - 16 May 2012 Mr. Mann will be presenting in the opening general session to explain the importance of Air Service Development, with specific inclusion of the John Wayne Airport story.

Page 32 March 2012

InterVISTASâ&#x20AC;&#x2122; Aviation Intelligence Report is a collection of information gathered from public sources, such as press releases, media articles, etc., information from confidential sources, and items heard on the street. Thus, some of the information is speculative and may not materialise. To provide comments/feedback on the InterVISTASâ&#x20AC;&#x2122; Aviation Intelligence Report, please contact Paul Ouimet at paul.ouimet@intervistas.com or 1-604-717-1800. To subscribe, please send an email to subscribe@InterVISTAS.com To unsubscribe, please send an email to unsubscribe@InterVISTAS.com