1. AMERICAN EXPRESS PROPOSAL PRESENTATION
Jennifer Aguirre
Donny Davidson
Ian Hitchcock
Jackie Mai
Danielle Smith

2. WHERE IS AMERICAN EXPRESS TODAY?
"American Express is a global services company that
provides customers with access to products, insights and
experiences that enrich lives and build business success."
"Our brand and its attributes — trust, security, integrity,
quality and customer service — are key assets of the
Company."

3. WHERE IS THE AIR TAXI MARKET TODAY?
Air taxis are a niche segment of the
airline industry. Ultimate goal is to
provide economically viable short-
haul air travel to underserved
markets.
Recent technological breakthroughs
in jet engine performance make air
taxis a feasible commercial
possibility.

4. AMERICAN EXPRESS BRINGS
COMPETITIVE ADVANTAGES
Large customer database and travel services
business to build product and brand awareness
Existing awards program
Strength of logistics; history of employing advanced
pattern recognition and customer profiling algorithms
Resources provide strategic flexibility

5. OUR RECOMMENDATION:
BUY THEN EXPAND
KEY POINTS
Established
Market
Leader
Potential
for
Expansion
Minimizes
Risk

6. BUDDY AIR:
AN ESTABLISHED MARKET LEADER

7. BUDDY’S BUSINESS MODEL:
OIL AND RANCHERS

8. BUDDY AIR AND AMEX
CUSTOMERS OVERLAP
75% to 85% of Buddy Air flyers
are Platinum or Centurion
cardholders...
...55% to 65% of those already use
AmEx travel services to book their
flights.

9. TAKING ADVANTAGE OF
EXISTING INFRASTRUCTURE

10. ROOM FOR EXPANSION (RE)
Existing Resources
Optimization
Additional
Markets
Existing
Reputation

11. RE: WE GROW USING OUR
EXISTING RESOURCES
Travel Services
Investors
Loyal Customers
Capital

12. RE: WHERE DO WE GROW?
Expansion Interests
 Travel Destinations
 Rural & Industrial Markets
Potential Interests
 Major Metropolitan Markets

13. RE: FURTHERING OUR REPUTATION

14. RE: STANDARDIZE AND OPTIMIZE

15. BUY VS. BUILD COMPARISON
0
100
200
300
400
2014 2015 2016 2017 2018
Projected revenue (in million)
Buy Build
2 markets:
Texas and
Oklahoma
5 markets

16. BUYING IS LESS RISKY
THAN BUILDING ALONE
Downside Base Scenario Upside
Terminal Value ($103,684,879) $453,001,728 $1,874,051,597
NPV ($138,901,886) $329,677,217 $1,479,103,233
IRR unavailable 105.58% 284.61%
Possibility 50.00% 25.00% 25.00%
Market Share 7% - 11% 12.5% - 18.5% 15% - 23%
Downside Base Scenario Upside
NPVoffuture cash (190,352,730) 217,496,808 534,324,684
IRR unavailable 13% 29.60%
Market Share 8.1% -9.7% 8.1% -10.9% 8.1% -12.5%
Possibility 20.00% 55.00% 25.00%
Discount Rate 6.76%
Growth Rate 2.40%
Terminal Value $851,447,927
PV of future cash flow $676,088,354.78
NPV of future cash flow $316,088,355
IRR 21.53%

17. LONG TERM RISKS OF BUYING

18. BUY THEN EXPAND:
THE BEST OF BOTH WORLDS
Established Market Leader Room for Expansion
Strategic Entrance into Air-Taxi Industry