Comment on the customer demand for A3XXX to justify spending. Use discounted cash flow and break even analysis.

u A3x:Developing the World's Largeat Coumercial Jet tA) Exhibit 1 Sales of Commercial Airplane and Aviation Support Services ($1999, billions) 1999 Annual Sales (Actual) 2019 Annual Sales (Estimate) 2000-2019 Cumulative Sales Estimate) Aircraft Deliveries Regional Aircraft Airbus $3.8 16.0 n/a $60.6 $729.5 Boeing Total Aircraft Deliveries $56.5 $117.5 $1,422.0 Aircraft Support Services Airplane Servicing Heavy Airplane Maintenance Engine Repair (off wing) Airfrarme Component Repair Major Airpiane Modification Airframe and Engine Repair Parts Flight Crow Training Airport and Route Infrastructure Used Airplane Remarketing 13.8 18.5 8.4 12.3 1.8 8.1 32.3 43,0 19.6 28.8 3.5 18.8 3.4 43.0 441 588 268 394 43 257 622 $2,682 $4,104 49 21.4 $86.7 $143.2 Total Support Services $193.8 Total Deliveries and Services $311.3 Sources: Boeing Current Mayket Outlook, 2000; The Airline Moritor, July 2000. Exhibit 2 Large Commercial Aircraft: Airbus and Boeing A3XX-200 800 A3xx 1D0 a0 Seats 4730300 CER A B787-300 200 100 6717-200 9000 6000 7000 5000 1000 Range (Nautical Miles) Airbus Aircraft Boeing Aircraft Lehrnan Brothers Aerospace & Defense Electronics Industry Update, June 23, 2000; Airbus Industrie; Boeing Note: Except for the A3)xXx and A318, the chart shows current production models only. u A3x:Developing the World's Largeat Coumercial Jet tA) Exhibit 1 Sales of Commercial Airplane and Aviation Support Services ($1999, billions) 1999 Annual Sales (Actual) 2019 Annual Sales (Estimate) 2000-2019 Cumulative Sales Estimate) Aircraft Deliveries Regional Aircraft Airbus $3.8 16.0 n/a $60.6 $729.5 Boeing Total Aircraft Deliveries $56.5 $117.5 $1,422.0 Aircraft Support Services Airplane Servicing Heavy Airplane Maintenance Engine Repair (off wing) Airfrarme Component Repair Major Airpiane Modification Airframe and Engine Repair Parts Flight Crow Training Airport and Route Infrastructure Used Airplane Remarketing 13.8 18.5 8.4 12.3 1.8 8.1 32.3 43,0 19.6 28.8 3.5 18.8 3.4 43.0 441 588 268 394 43 257 622 $2,682 $4,104 49 21.4 $86.7 $143.2 Total Support Services $193.8 Total Deliveries and Services $311.3 Sources: Boeing Current Mayket Outlook, 2000; The Airline Moritor, July 2000. Exhibit 2 Large Commercial Aircraft: Airbus and Boeing A3XX-200 800 A3xx 1D0 a0 Seats 4730300 CER A B787-300 200 100 6717-200 9000 6000 7000 5000 1000 Range (Nautical Miles) Airbus Aircraft Boeing Aircraft Lehrnan Brothers Aerospace & Defense Electronics Industry Update, June 23, 2000; Airbus Industrie; Boeing Note: Except for the A3)xXx and A318, the chart shows current production models only