STAR ALLIANCE MEMBER CHIEF EXECUTIVES DETERMINE STRATEGY FOR 2014

The Chief Executives of Star Alliance member airlines, representing one-third of
the global aviation industry, met December 12 to 13 in Vienna to discuss the
strategic development of the Alliance, including the benefits offered to its
most loyal customers, its membership strategy and important projects and topics
for 2014.

Calin Rovinescu, Chief Executive of Air Canada and Chairman of the Alliance’s
Chief Executive Board (CEB), said the chief executives reaffirmed that the
universal offering of the Star Alliance Gold status benefits across the network
was a major attraction of the Alliance for customers and that every effort must
be made to deliver these benefits consistently across the globe.

“Star Alliance’s aim is to deliver our promises for our customers consistently
on every trip in any part of the world,” Rovinescu said. “We continue to review
the steps that have been taken to ensure this promise is carried through in
every location Star Alliance serves, and will continue to make this our focus
going forward.”

The attractiveness of the Gold status has been illustrated in recent weeks by
the high level of participation in a Star Alliance competition offering Gold
membership in one of the Star Alliance frequent flyer programmes as a prize. The
competition, accessible from www.staralliance.com, has drawn over a quarter of a
million interested visitors.

A further central topic in the CEOs’ discussions was the Alliance’s membership
strategy, which focuses on having a strong global network that benefits both
customers and the member airlines.

“After due consideration and analysis, the CEB agreed unanimously to extend
Avianca’s Star Alliance membership to include Avianca Brazil and to recommence
the integration process with Air India,” Star Alliance CEO Mark Schwab said.
“This will allow us to maintain our presence in Brazil following the departure
of TAM Airlines and to build a presence in one of the most important aviation
markets where we do still not have a member carrier – the Indian sub-continent.”

Integration of Air India was suspended in 2011 to give the airline more time to
focus on the internal challenges caused by its merger with Indian Airlines. In
the two years since then it has worked through these issues and also invested
heavily in its fleet, laying the groundwork for a major improvement in its
services to customers.

Admission of Avianca Brazil will go some way towards reinforcing the Star
Alliance network in Brazil following TAM’s departure in the first half of 2014,
and complement the Alliance’s already strong position in Latin America through
its members Avianca and Copa Airlines.

The CEB reaffirmed that the Alliance model was an important component in today’s
competitive environment and noted that Star Alliance is not only still the
largest of the three airline alliances but also has the most robust experience
in growing its membership smoothly.

“Many of today’s global standards in aviation have been created by Alliance
experts, for instances in safety, through check-in or barcode technology,” said
Lufthansa CEO Christoph Franz. “Alliances are good for the industry and will
remain relevant in the future.”

Looking at the global development of aviation, Franz joined other European
Airline colleagues in repeating the wake up call to the continent’s political
decision makers.

“We urge them to come to grips with creating a single European Sky, we urge them
to understand that continued investments into sufficient infrastructure on the
ground and in the air is required to keep up with the global industry
development”, he said.

Other highlights of the CEB discussions included a review of top Alliance
achievements in 2013, such as the integration of EVA Air from Taiwan, which
completed the Alliance’s network strategy for the Greater China region. In
addition a new Star Alliance Lounge was opened at Los Angeles’ Tom Bradley
International Terminal. Furthermore, investments in backend infrastructure were
approved, with the aim of improving data flows to ensure that mileage accrual
for passengers works more smoothly across the network and that loyalty status
information is always kept up to date.

Looking ahead to 2014, the opening of Terminal 2: the Queen’s Terminal at London
Heathrow on June 4 will be a major milestone for the Alliance, offering the
first opportunity for all 22 Star Alliance member airlines that operate to
Heathrow to be located in the same terminal.

“With over 23% of market share at Heathrow we have a solid presence in this
heavily contested market,” Schwab said. “Today we are scattered around three
terminals: tomorrow we will be united under one roof, creating terrific value
for our passengers who will have a more comfortable airport experience and
reduced transfer times as a result.”

The CEB’s next meeting will be held In London to coincide with the opening of
the new terminal.