About Avatar Airlines' Proposal.

Avatar Airlines has made application to the DOT and the FAA for operating authority as a commercial air carrier, and its ability to operate is dependent upon receipt (which is not assured or guaranteed) of all necessary governmental authorizations.

Avatar intends to introduce an unrestricted no frills economy fare that will be substantially lower then the lowest fares offered today by other airlines. We intend that all passengers on a flight in similar class seating will pay the same fare. We intend to be different than any other airline operating in this market.

Avatar Airlines believes utilizing the four engine Boeing 747 jumbo jet equipped with 539 seats in the main cabin and 42 Office Class seats on the upper deck, will result in the lowest cost per available seat mile in the industry.

Avatar Airlines intends to cater to travelers on budgets, families with children, business travelers wishing to conserve resources, as well as all other travelers for whom cost may be a consideration and who desire to fly in comfort at the lowest available fare.

A significant decrease in fare structure normally translates into a measurable increase in traffic, resulting in the desired increase in revenue. Therefore, the Company's pricing strategy is intended to stimulate additional traffic as well as capture a significant portion of the current market.

The primary source of revenue for most airlines is passenger ticket sales, however at Avatar it will be quite a different picture. In fact the company plans to develop alternative profit generators that will produce approximately fifty percent of its total revenue, thus limiting the airline’s profitability directly to the sale of only passenger tickets as with our competitors. These profit generators will include: optional in-flight food service, entertainment rental such as: movies and video games, sky phones, shop by mail, internet and e-mail access, all available for a nominal cost by credit card.

In addition, the transport of cargo and mail will represent a significant increase in income with very little increase in operational cost.

The uniqueness of this Boeing 747 aircraft is its ability to carry over 100,000 pounds of freight on pallets, along with a full load of passengers. One of the most vital statistics in the airline business is the load factor. This figure expresses the relationship between available seat miles and revenue passenger miles realized, i.e. the actual number of paying passengers on a given flight. The company anticipates its unusual low fares will result in pre-sales of 85% of available seats on all flights.

Avatar's philosophy is to eliminate no shows and over bookings by offering all of its seats at non-refundable and non-changeable prices (unless you purchase our offered optional “tiered” flight cancellation insurance).

Why start an airline today? The timing could not be better! With the traditional "pre-deregulation" airlines about to go bankrupt and the newer ones unable to fill their vacancy (mainly due to higher operating cost and lack of capacity), the Avatar Airline’s plan has the right ingredients to insure instant business success and customer satisfaction!

Why the Boeing 747? The choice of this aircraft over others is based on consumer confidence, safety record, availability and overall capacity. The 747 is considered one of the world's safest and most comfortable aircraft used in commercial aviation today. The level of training necessary to be certified to fly this type of aircraft ranks its pilots among the most experienced in the industry and the elite of their profession.

Unlike traditional airlines, Avatar will offer the same low fare on each flight depending on time of purchase only.

Non-Reliance on Travel Agents - Most start-up airlines tend to rely heavily on travel agencies to book their flights for them. This can result in the quick death of a start-up airline. Avatar Airlines intends to control its own advertising and marketing. We intend our tickets will only be sold via the internet and with automated ticket machines at airport locations and other varied strategically placed locations to assure maximum customer satisfaction and higher revenues.

Avatar Airlines Intends to Eliminate No-Shows and Over-Bookings - Of course if the flight is cancelled due to fault of our own, your ticket will be promptly refunded, or at your option, you can move to a future Avatar flight based on availability with no change in cost. We do everything to the best of our ability to make sure our traveling passenger is well taken care of with the least amount of inconvenience possible in the unlikely event of flight cancellation or delay. We intend to make our customer satisfaction and Airline Safety will be our top concern and primary motivators for ensured success.

Profit Generators - Avatar Airlines intends to operate with multiple Profit Generators, including passenger sales, cargo sales, tour and group sales, in-flight entertainment, food services, along with in-house advertising. All senior management leaders intend to be responsible for maintaining a profit in their particular area.

In-flight Services - Avatar Airlines intends to operate the on-board food concession as an individual Profit Generator by providing an optional unique online menu consisting of more than more than 30 items from a snack to a gourmet meal. Add to this a half bottle of your favorite wine or a Chef of the month selection.

Cargo Sales - Avatar Airlines intends to be the only operator of the wide-body Boeing 747's within the United States. The 747 aircraft will allow Avatar Airlines to carry up to 100,000 lbs., of freight on pallets on each of its flights, thereby greatly increasing overall revenues.

Interline vs. Marketing Agreements - Avatar Airlines doesn't plan on engaging in or promoting interline agreements with other carriers but intends to aggressively seek both passenger and cargo agreements with foreign carriers.