2000

1. 2000 ATA INDIANA UNIVERSITY Professional Opportunities Orientation Program

2. IU Professional Opportunities Orientation Program (Strategic Planning) • About ATA • Strategy Concept • Strategic Planning’s Role in Business • A Day in the Life

3. 1973 J. George Mikelsons founds Ambassadair Travel Club in Indianapolis 1978 Deregulation of U.S. Airlines 1982 ATA begins Charter service, total revenues of $30.5M 1986 ATA begins Scheduled service, total revenues of $185M 1996 Strategic Planning forms, total revenues of $750M About ATA (Growth and Diversification) 1999 Revenues exceed $1B; ATA is certified as a major carrier 2000 Projected revenues to exceed $1.3B; Placement of $2B aircraft order

4. About ATA (Corporate Structure)

5. AIRCRAFT 1999 ACTIVITY 24 Boeing 727-200 Advanced 13 Boeing 757-200 Extended Range 14 Lockheed L1011-50/100 5 Lockheed L1011-500 56 10,913,081,000 Revenue Passenger Miles 7,773,444 Passengers 157,481 Block Hours Flown 400+ Airports Visited 50,207 Departures 78,602,678 Miles Flown (=3,156 times around the world) EMPLOYEES 3,000 Crew Members 694 Reservationists 1,113 Airline Mechanics 1,823 Corporate Staff 6,630 About ATA (Company Profile) ATA is the 11th largest U.S. airline and the number one passenger charter airline in the Western Hemisphere

6. 1990s Proliferation of the PC MBA programs surge Strategic Planning groups emerge Visicalc/Lotus 123 revolutionize investment banking PIMS study scientifically connects relative market share to financial performance 1980s US firms falter in international competition Ascendance of strategy consulting 1970s IBM sells thousands of System/360 mainframes BCG develops framework to quantify strategy Great Society educates more of the emerging workforce than at any other time in history 1960s Arthur Andersen’s GLICIAC accounting computer Tom Watson, CEO of IBM estimates global computer demand to be 5 1950s SEC begins to protect investors Financial performance and operating statistics publicly disclosed 1930s Engineering principles applied to organization structure and production efficiency McKinsey forms first management consulting firm 1920s Principles of Scientific Management Management defined as creating worker productivity US Army leads research in industrial organization and psychology 1910s Emergence of Fact-Based Decision Making

7. Strategy is Conceptually Straightforward Give customers what they will pay for in a way that is tough to imitate Financial Performance • What business are we in? • What do we do better than anyone else? • What other customer groups will pay for our capabilities? Customers • For what will they pay how much? • How many are there? • How many will there be? Capabilities Costs • What are our costs relative to our competitors? • What are our costs relative to what our customers are willing to pay? Competitors • Who are they now? • What do they do better or worse than we do? • Who could they be? Competitive Advantage = Sustainable Financial Performance

8. Strategic Planning Profile (Group Size) Half of the leading strategic planning groups have six or fewer professionals... 1998 1999 2000 48% 14% ATA 6 12 11 12% 9% 9% 9% 8% 8% 7% 7% Percentage of Companies 6% 6% 4% 3% 3% 3% 3% 2% 2% 2% 2% 1% 1% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 18 20 + Source: Corporate Strategy Board research

9. Strategic Planning Profile (Responsibilities) …but tackle a broad range of high impact projects ATA 20% Special Projects for 78% 20% CEO, Board 30% Corporate Planning 78% 19% 10% External Scanning 52% 40% Business Unit Planning 76% 13% 10% M&A 50% 36% 10% Internal Consulting 49% 37% 20% New Business 23% 60% Development Primary Knowledge Management 19% 42% Secondary Venture Capital 19% 21% 0% 50% 100% Source: Corporate Strategy Board research

10. Research Analysis/ Modeling Understanding Communication • Internet • Libraries • Proprietary • databases • Trade press • SEC information • Economic modeling • Regression • Risk Adjustment • Excel • Optimization Software • Access • Group sessions • Brainstorming • Hypothesis testing • Simplify • Encapsulate • Logical • Story Strategic Planning Process

11. FINANCE MARKETING Proforma Financials Market Analysis Strategic Planning - Team oriented - 55 Hrs per week - 5-10% travel - Opportunity to work with other departments Process Diagrams, Labor Negotiations Database Building INFORMATION SYSTEMS OPERATIONS Strategic Planning Profile

12. A Day in the Life • (Sample Strategic Planner Contribution) • Seek significant value for company/shareholders • Detail evolution of potential value • Highlight historical information and project future • developments • Consider competitive picture • Create detailed business plans • Income statements • Balance Sheets • Cash flows • Operating statistics

13. How Do I Succeed? • Desire to work hard and create an immediate impact • Enjoy numbers and analysis • Understand goals of a particular assignment • Conduct comprehensive research to build relevant database • Develop rational assumptions where data not available • Build economic model using data and assumptions • Communicate solution • restate goals • review analysis steps • provide clear graphical representation • make recommendations • calculate economic value added

14. Indiana University Schedule DATE EVENT TIMES Information Session 7:00 pm – 8:00 pm 11/02 11/03 On Campus Interviews 6:30 pm – 8:30 pm 12/10 thru 12/20 Offers Made