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Factors that may have an impact on our international growth strategy include:
 delay or inability to obtain permissions and approvals from regulatory authorities;
 delay or inability to procure flight slots on terms that are financially viable;
 changes to our cost structure;
 factors affecting demand in international travel to and from India, including the general
condition of the global
economy;
 operational, financial, marketing and legal challenges (including compliance with foreign
laws) that are different
from those that we currently encounter;
 our ability to operate and manage in a cost effective manner, a larger operation;
 greater exposure to exchange rate volatility;
 our ability to secure a sufficient number of additional aircraft on favorable lease or purchase
terms; and
 our ability to hire, train and retain sufficient numbers of pilots, flight crew and engineers with
international experience.

Our growth strategy involves:

1) expanding the number of markets we serve, including international markets,
And
2) Increasing the frequency of flights to the markets we currently serve.

Achieving these goals is essential for us to benefit from cost efficiencies resulting from
economies of scale and to increase our operating revenues and profits. Increasing the
number of markets we serve and our flight frequencies depend on our ability to identify
the appropriate Indian and international markets upon which to focus and to gain suitable
airport access and route approval in these markets. Any condition that would prevent or
delay our access to airports or routes that will be vital to our growth strategy, including
the ability to process more passengers, the imposition of flight capacity restrictions, or
our ability to maintain existing slots or obtain additional slots could constrain the
expansion of our operations.c
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c½e depend on
automated systems to operate our business, including our computerized airline
reservation system, SABRE, global distribution systems (³GDSs´) such as Abacus,
Amadeus, Galileo, Sabre GDS and ½orldspan, telecommunications systems, websites
and other automated systems. Our reservation and website systems must be able to
accommodate a high volume of traffic and deliver important flight information.

½e believe that our growth potential and maintenance of our service-oriented company culture
are directly linked to our capacity to attract and maintain the best professionals available in the
Indian airline industry. ½e are dedicated to providing professional, high-quality service in a
positive work environment and being innovative in finding ways to improve our business. ½e
place high emphasis on the selection and training of employees with the potential to add value
to our business and who we believe fit in with and contribute to our company culture. As we
grow, we may be unable to identify, hire or retain enough people who meet the above criteria, or
we may have trouble maintaining this company culture as we become a larger company. Our
company culture is crucial to our business plan, and failure to maintain that culture could
adversely affect our business and results of operations.
Although our labour costs are lower than airlines in developed countries, we expect salaries,
wages and benefits to increase on a gross basis and these costs may increase as a percentage of
our overall expenses, which could harm our business. Our expansion plans will require us to hire,
train and retain a significant number of new employees in the future. From time to time, the
airline industry has experienced a shortage of personnel, especially pilots, AMEs and
technicians. ½e have also experienced a high level of attrition of our in-flight crew.
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½e are highly dependent on our senior management, our directors and our other key personnel.
Our future performance will depend upon the continued services of these persons. ½e do not
maintain key man life insurance for any of the senior members of our management team, our
directors or our other key personnel. Competition for senior management in our industry is
intense, and we may not be able to retain our senior management personnel or attract and retain
new senior management personnel in the future. The loss of any of the members of our senior
management, our directors or other key personnel may adversely affect our business and results
of operations.


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Their promoters, Tail ½inds and Mr. Naresh Goyal, will control approximately 80% of their
outstanding Equity Shares upon completion of the Offer.
Our Articles of Association confer certain rights on Mr. Naresh Goyal, the NG Group and certain
companies controlled by Mr. Naresh Goyal relating to the governance of the Company. Mr.
Goyal is the permanent Chairman of the Company and Chairman of our Board, and is entitled to
chair all meetings of shareholders or directors, respectively, for so long as he is willing to do so
irrespective of the shareholding of Mr. Goyal or the NG Group. In Mr. Goyal¶s absence at any
shareholders¶ or directors¶ meeting, one of the directors nominated by the NG Group shall
preside. The Chairman shall have the casting vote at any shareholders¶ or directors¶ meeting and
has the power to direct the convening of any Board meeting. For so long as the NG Group holds
35% or more of the Equity Shares of the Company.

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½e have entered into agreements with third-party contractors to provide certain facilities and
services required for our operations, such as aircraft maintenance. ½e expect to enter into similar
agreements in any new markets we enter. The loss or expiration of these contracts or any
inability to renew them or negotiate contracts with other providers at comparable rates could
harm our business. Our reliance on others to provide essential services for us also gives us less
control over costs, and the efficiency, timeliness and quality of contract services.
Ñompetitive Strengths
½e believe the following are our principal competitive strengths, which differentiate us from
other airlines:

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½e offer several services directed towards the convenience of the business traveller, including
telephone check-in facilities, through and ³in-city´ check-in facilities, priority baggage service,
high frequency services on major routes, same-day return flights on major routes at convenient
timings, point to point connections, providing flight information on cellular phones of customers,
our customer loyalty program, e-ticketing, business class section on almost all flights and airport
lounges for business class passengers at most airports. These facilities and our focus on
providing High-quality reliable service has contributed to us becoming the preferred airline for
business travellers in India.
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