1. Airline Business – Trends and Challenges Environmental Issues and Solutions Paul Nibbering & Lucas den Boer Utrecht, March 1st 2010

2. Environmental Issues and Solutions Loss of natural habitat potential associated with the jet fuel burned per passenger on a 3200 kilometers (1992 miles) airline flight is estimated to be 250 square meters (2700 square feet). Source: ecofx.org, 2008

3. Carbon Emission Trading Expected growth rates of the air transport sector will mostly likely lead to an increase of aviation emissions in the future. In the EU greenhouse gas emissions from aviation increased by 87% between 1990 and 2006. The European Commission has published a proposal for a directive on the inclusion of aviation into the European Union’s emission trading scheme for stationary sources Secured growth of the aviation industry: possibility to purchase CO2 allowances from other sectors, where emission reduction measures may be more cost-effective

4. Taxation of Air Travel The Dutch government introduced an ecotax for all passengers departing from Holland on July 1st 2008. Results after almost one year: Düsseldorf airport counted a 62% increase of Dutch pax Brussels airport counted a 74% increase of Dutch pax Airport Weeze counted a 300%(!) increase of Dutch pax 1.2 billion euro loss in income 6 months after the introduction of the ecotax for the Dutch economy and travel industry Expected loss of 10 tot 25% of jobs at Schiphol Group Several airlines decide not to fly anymore from Dutch airports (Volare Airlines, El Al Cargo) or reduce their flights (easyJet) Air France-KLM loses 900.000 passengers in 9 months due to the ecotax March 25th 2009 the Dutch governmentdecided to dispensewith the ecotax.

5. Efficiency in Aviation Modern aircraft use per passenger-kilometer the same energy as trains and cars Fuel costs account for the highest percentage of operating costs for an airline, this alone is a major reason for airlines to strive for more efficient engines. As a result of the desired safety level, aircraft hardly ever fly with full tanks. This has a positive effect for CO2 emission: every kilo of fuel that needs to be carried is an increase of weight and costs additional fuel to carry that kilo. 1970: 1 liter per 6 kilometers (DC8) 1990: 1 liter per 33 kilometers (B747) 2006: 1 liter per 44 kilometers (B777) KLM average: 1 liter per 30 kilometers at 800 to 900 km/h Source: Platform Duurzame Luchtvaart (PDL)

6. TrainsNot Always Cleaner.. Trains using electricity generated from conventional power plants emit CO2 (via the power plants). Train passengers in that case have a similar CO2 emission as air passengers. Eurostar trains for example are only ‘environmental friendly’ due to their use of nuclear power. Source: Platform Duurzame Luchtvaart (PDL)

7. Clean and Fuel-efficient Engines Propulsive efficiency Thermal efficiency TAPS Combustor Turbine development Reduced maintainability Geared turbofan Today’s new engines: Rolls-Royce Trent 1000, the General Electric GEnx and the Pratt & Whitney geared turbofan (GTF).

8. NoiseReduction Total ban on chapter 2 aircraft Curfews for chapter 3 aircraft (e.g. only take-offs between 06.00h and 23.00h) Optimized use of flight paths and routes (CDA, RNP) Monitoring aircraft noise and flight tracks (NOMOS at Schiphol) Land use and building restrictions based on noise contour maps Acoustic treatment for residents surrounding the airport Derated take-off thrust Delayed Flap Approach Procedures Source: Israel Ministry of EnvironmentalProtection

9. Green Approach Advanced Continuous Descent Approach (A-CDA), also known as the ”Green Approach” Airlines operating Boeing 737s in Europe are allowed to use an optimized landing approach that significantly reduces the amount of fuel used during arrival and approach operations 20% reduction of CO2 and NOx emissions 20% compared to standard arrival procedures. Source: GE Aviation

10. Biofuel (I) Carbon-neutrality due to the need for CO2 by plants that are used to make biofuel Already 70% improvement in fuel-efficiency and CO2 emissions per passenger mile in the last 50 years Syngas (mixture of carbon monoxide and hydrogen) Second-generationbiofuels (biofuelsderivedfrom the wood and nuts of plantssuch as Jatrophacurcas (Barbados Nut) and babassu) Algae Source: aviation.com

11. Biofuel (II) Boeing and Air New Zealand are collaborating with leading Brazilian biofuels maker Tecbio and Aquaflow Bionomic of New Zealand and other jet biofuel developers around the world.* Virgin Atlanticsuccessfullytested a biofuelblend made from 20% babassu nuts and coconut and 80% conventional jet fuelfed to a single engine on a 747 flightfrom London to Amsterdam.** Source: * Tecbio ** NZ Herald, February 26th 2008

12. Airport Planning & Strategic Land Use Nowadays developing and planning an airport demands a much broader analysis than in the past. Airport planning used to be directed at providing sufficient capacity for future demand, but environmental aspects have started playing a more prominent role. A static solution solely based on a single long term forecast and an airport’s objectives increases chances on a wrong decision. A good example is Montréal’s Mirabel airport: aimed to be the new Montréal passenger airport but ended up mainly handling cargo planes. Airports that are strategically located in order to secure future growth without disrupting residents that are living around the airport: Dubai Al Maktoum International Airport (under construction) Osaka Kansai (further expansion) Milan Malpensa

13. Optimizing Air Traffic Management Following a direct route is no problem for aircraft. The disintegrated European airspace however prevents aircraft often from doing that. This causes European aviation to use more fuel than necessary. The EU started the Single European Sky (SES) program in 2005. This should lead to a more efficient use of airspace, thus less delays. Both effects should results in a decreased fuel use. Eurocontrol estimates possible savings at 12% of kerosene use in Europe. KLM now loses 10 million kg of CO2 every year or 25 flights daily due to inefficient use of airspace. Source: Platform Duurzame Luchtvaart (PDL)

14. References Lucas den Boer For more information please contact: Lucas den Boerphone: +31 (0)6 22 241 508email: lucas.denboer@atosorigin.com

15. References Paul Nibbering Articles and papers by Paul Nibbering: ‘Managing Airport Congestion – the Effects of Runway Peak Pricing’ (article Aerlines Magazine) ‘Registered Traveler Forum 2008’ (column Aerlines Magazine) ‘Airport Benchmarking & Runway Capacity and Pricing (capita selecta research VU University) “Regional Airports and low-cost carriers” (academic paper VU University) For more information please contact: Paul Nibberingphone: +31 (0)6 22 605 683email: paul.nibbering@atosorigin.com

16. For more information please contact:Paul Nibbering & Lucas den Boert +31 (0) 88 265 8363 m +31 (0)6 22605683paul.nibbering@atosorigin.comAtos Origin (Netherlands)Papendorpseweg 933528 BJ, Utrechtwww.atosorigin.com