U.S.

Research Comments
CALYON SECURITIES (USA) INC.
November 16, 2006

Ray Neidl
212 261 4057
ray.neidl@us.calyon.com
Christine Min
212 408 5645
christine.min@us.calyon.com
Sanaz Kafayi
212 408 5648
sanaz.kafayi@us.calyon.com

Airlines
2006 Outlook – The Pan American All-Stars Are Shining Bright
Industry Update

• The six Pan American airlines that we follow will have exhibited solid performances for 2006, will continue to grow,
and should have a stellar 2007. These carriers include ACE/Air Canada (BUY) and WestJet (ADD) of Canada, COPA
(BUY) of Panama, GOL (BUY) and TAM (BUY) of Brazil, and LAN (BUY) of Chile plus a number of other South
American countries. Each carrier has carved out its own unique and profitable niche that should provide years of
growth for their particular models, in our opinion.
• ACE Aviation currently owns all or a majority stake of Air Canada (a major international and Canada's largest
domestic airline), JAZZ (Canada's largest regional feeder), ACTS, a full-service aircraft maintenance business, and
Aeroplan, its frequent flier loyalty marketing program. We believe the investment play for ACE stockholders is the
sum of the value of the individual parts. Based on our sum-of-the-parts analysis, our target price for ACE Aviation is
C$44.
• WestJet, known as the Southwest Airlines of Canada for its simple fleet type and fare structure, serves Canadian and
trans-border markets, but is expanding out of its solid western Canadian base into the more populous eastern
provinces and into trans-border U.S. and other sun destination markets. We are raising our price target to C$15.50
based on 16.2x our 2007 EPS estimate of C$0.96. We have a more favorable outlook for the company's earnings
and growth potential.
• Copa operates a hub in the increasingly important center of Latin American finance and commerce in Panama City,
Panama located at the crossroads of Central America. Copa maintains a strong growth plan of adding spokes to its
Panama City hub, which we believe it can continue to successfully implement. As we expect Copa's powerful growth
trends to continue, our price target of $57 is based on a multiple of 15x our FY2007 estimate of $3.82.
• GOL is an excellent operator of passenger air travel, is on track for aggressive growth over the next several years,
and has further opportunities to generate potential income. We believe GOL has a unique opportunity to increase its
market presence and its share. Our $37 price target on GOL is based on 16x our 2007 estimate of $2.35.
• TAM operates an extensive and growing network in the domestic Brazilian market as well as international markets in
Latin America and long distance routes to North America and Europe. Our price target of $39 is based on 13x our
2007 estimate of $2.98.
• LAN maintains a strong regional presence and its efficient and flexible model is demonstrating its ability to produce
profits. We believe the company is well positioned to grow its lucrative Latin franchise in both passenger and cargo
operations. Our price target of $55 is based on 14x our new 2007 estimate of $3.89.

See important disclosures on pages 8 - 9 of this report.

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 U.S. Research Comments
CALYON SECURITIES (USA) INC.
November 16, 2006

Summary
The six Pan American airlines that we follow will have exhibited solid performances for 2006, will continue to grow, and
should have a stellar 2007. These carriers include ACE/Air Canada and WestJet of Canada, COPA of Panama, GOL
and TAM of Brazil, and LAN of Chile plus a number of other South American countries. Each carrier has carved out its
own unique and profitable niche that should provide years of growth for their particular models, in our opinion.

• ACE Aviation currently owns all or a majority stake of Air Canada (a major international and Canada's largest
domestic airline), JAZZ (Canada's largest regional feeder), ACTS, a full-service aircraft maintenance business, and
Aeroplan, its frequent flier loyalty marketing program. ACE is in the process of selling 20% of its stake in Air Canada
to the public market and currently owns 80% of JAZZ and 75% of Aeroplan, both of which are traded publicly. The
maintenance company is undergoing a restructuring, and we expect that it will be sold once it is complete. We
believe the investment play for ACE stockholders is the sum of the value of the individual parts. Based on our
sum-of-the-parts analysis, our target price for ACE Aviation is C$44 and we have a BUY rating.

• WestJet is known as the Southwest Airlines of Canada with one fleet type (the Boeing 737), a simple fare structure
and a simple one-class product serving Canadian and trans-border markets. We are looking for growth of around
15% plus per year, projected earnings in 2007 of $124.3 million with operating margins of 14% and EBITDAR of
$493.4 million. As of the close on November 14, it is trading at a current P/E of 14.4x our 2007 EPS estimate and the
stock looks cheap. We are maintaining our ADD rating and raising our price target on WJA based on valuation. The
company's price has gone through our price target. Our new price target of C$15.50 is based on 16.2x our 2007 EPS
estimate of C$0.96. The multiple expansion is due to our more favorable outlook for the company's earnings and
growth potential.

• Copa operates a hub in the increasingly important center of Latin American finance and commerce in Panama City,
Panama located at the crossroads of Central America. The hub enables COPA to bring passengers from around the
northern rim of South America, Central America and the Caribbean to the various destinations on its system. In
addition, the carrier is developing an internal Colombian aviation system through recently acquired AeroRepbulica.
We are looking at long-term (three to five years) annual growth of around 15%, 2007 earnings of $164 million,
operating margins of 21.3% and EBITDAR of $296 million. As of the close on November 14, it is trading at a current
P/E of 10.8x our 2007 EPS estimate of $3.82 and the stock looks cheap so we have a BUY rating with a target price
of $57.

• GOL is primarily a domestic airline in the rapidly growing Brazilian market with a single fleet type (B737) and a simple
product line and fare structure. The company does fly to other destinations in Latin America, but its main area of
operations is in Brazil. We are looking for long-term growth of around 15% plus per year, projected earnings in 2007
of R$1,000 million with operating margins of 23.5% and EBITDAR of R$1,760 million. As of the close on November
14, it is trading at a current P/E of 12.5x our 2007 EPS estimate of $2.35; the stock looks cheap so we have a BUY
rating with a target price of $37.

• TAM operates an extensive and growing network in the domestic Brazilian market as well as international markets in
Latin America and long distance routes to North America and Europe. We are looking for long-term growth of around
15% plus per year, projected earnings in 2007 of R$973 million with operating margins of 16.4% and EBITDAR of
R$2,297 million. As of the close on November 14, it is trading at a current P/E of 10.1x our 2007 EPADS estimate of
$2.98; the stock looks cheap so we have a BUY rating with a target price of $39.

• LAN is a truly international airline. Although based in the relatively small market of Chile it also has operations, in
conjunction with local partnerships, in Peru, Equator and Argentina. Freight operations -- a solid operation of the
carrier utilizing pure freighter aircraft, belly space on passenger aircraft as well as truck operations with a hub in
Miami -- account for a large percentage of revenues at over 30%. We are looking for annual growth in the passenger
business of up to 25% and 4.5% for the freight business. For 2007, we are projecting earnings of $248 million,
operating margins of 9.9% and EBITDAR of $727 million. As of the close on November 14, it is trading at a current
P/E of 12.6x our 2007 EPS estimate of $3.89; the stock looks cheap so we have a BUY rating with a target price of
$55.

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 U.S. Research Comments
CALYON SECURITIES (USA) INC.
November 16, 2006

Individual Airline Outlook

ACE Aviation (BUY) - The company delivered overall solid results for 3Q06. Operating margins were 10.3% this
quarter versus an average of 5.7% at the U.S. network carriers. CASM grew by 1.7% with higher fuel costs, but CASM
ex fuel was down by 1%. Air Canada Services delivered a positive revenue performance, in spite of some headwinds in
the quarter, including the negative impact of a strong Canadian dollar on revenues in international, U.S. transborder
and domestic services, the additional security measures during the quarter after the London terrorist threat, and the
temporary removal of content by one of the airline's distribution providers in response to distribution model changes.
Our price target of C$44 for ACE Aviation is based on an 80% ownership of Air Canada and valuing the carrier at C$22
(the high end of its IPO range). This reflects an enterprise value to EBITDAR multiple of 4.6x our 2007 EBITDAR
estimate of $1.26 billion for Air Canada Services. We believe this is conservative and reflects a discount to the
EV/EBITDAR trading multiples for the U.S. network carriers of 5.5x to 6.3x 2007 EBITDAR estimates.

WestJet Airlines (ADD) - WestJet reported strong results in 3Q, with a 74.5% year-over-year increase in net earnings.
This was the fifth consecutive quarter that the company increased capacity, yield and load factor on a year-over-year
basis. RASM (unit revenue) grew 5.6% while load factor increased by 1.9 percentage points to 80.5% and CASM ex
fuel decreased 1.1%. The company is expanding out of its solid western Canadian base into the more populous
eastern provinces and into trans-border U.S. and other sun destination markets. The carrier is poised to grow capacity
by 12.0% in 2007 with an operating margin in the 14% range.
We are raising our price target on WestJet as its stock has gone through our previous target. Our new price target of
C$15.50 is based on 16.2x our 2007 EPS estimate of C$0.96. The multiple expansion (versus our prior multiple of
13.5x) is due to our more favorable outlook for the company's earnings and growth potential.

Copa Holdings (BUY) - Copa delivered another strong quarter and raised guidance. In the third quarter, revenue grew
30%; traffic rose 19.6%; capacity grew 16.8%; load factor rose 1.8 points to 75.4%; yield grew 9.3%; RASM rose
11.0% and CASM ex fuel increased by 9%. Since the company went public almost a year ago, it has consistently beat
estimates every quarter and increased guidance.
The company continues its planned growth through adding spokes to its Panama City hub. This enables the carrier to
serve northern South America, Central America, and the Caribbean plus some long distance routes into the U.S. and
deep Brazil. The company is cost-conscious, but maintains high service levels and benefits from its close relationship
with Continental Airlines. The carrier is poised to grow capacity by 18.5% in 2007 with an operating margin in the 21%
range, one of the highest in the airline industry.
We raised our price target on Copa Holdings to $57 from $40 and we reiterate our BUY rating. Year to date the stock
has appreciated by 66% and we think the market is finally realizing the potential of CPA, which had been under the
radar screen for much of this year. Our new price target of $57 is based on a higher multiple of 15x (from 12.5x) our
higher FY2007 estimate of $3.82. Copa maintains a strong growth plan that we believe it can continue to successfully
implement, making the valuation attractive. Additionally, Copa has less currency rate variation risk versus other Latin
carriers since its home country, Panama, uses the U.S. dollar as its currency, which presents another advantage. We
expect CPA's powerful growth trends to continue and that is the reason we applied multiple expansion to our price
target.

GOL (BUY) - Growth was strong in 3Q06. Traffic grew by 56% amid a capacity increase of 46%. Load factor improved
by 5.1 points to 78.8%. Yields declined by 2.9% while unit revenue (RASK) rose by 6.4%. Operating costs per ASK
(CASK), excluding fuel, increased by 10.3% due to scheduled maintenance and increased landing fees and because
GOL made preparations for its fleet and base expansion in 4Q. GOL added four leased Boeing 737 aircraft during the
quarter for a total fleet size of 54. GOL expects to add 11 Boeing 737 aircraft in 4Q06.
GOL has a track record of success, has growth opportunities in the fast-growing markets in Brazil and South America,
and achieves industry-leading financial performance. GOL is an excellent operator of passenger air travel, is on track
for aggressive growth over the next several years, and has further opportunities to generate potential income. The
carrier is poised to grow capacity by 45% in 2007 with an estimated operating margin in the 23% range, one of the
highest in the airline industry.
We believe the stock has been under pressure in the past three weeks due to concerns that capacity may be outpacing
demand in the Brazilian market. In the long term, we view the Brazilian market as a pie that is growing and we think

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 U.S. Research Comments
CALYON SECURITIES (USA) INC.
November 16, 2006

that GOL faces a unique opportunity to increase its market presence and its share. We may see pressure on yields in
the short term but we view that as an investment in growing the population of travelers in an emerging market. Over the
long term, we believe GOL is stimulating demand while maintaining operating margins in the mid-20% range and
growing earnings 35%. In light of this, our $37 price target on GOL is based on 16x our 2007 estimate of $2.35.

TAM (BUY) - TAM showed a strong 3Q06, with traffic growth of 30% on an increase in capacity of 25.3%, a 2.7 point
improvement in load factor, yields up 2.3% and unit revenue growth of 7.6%. CASK ex-fuel (on a U.S. GAAP basis)
increased by 2.5%. However, the company was able to maintain strong overall cost improvements and operating
margins improved to 18.4% versus 14.7% in the year-ago period.
TAM is selectively taking advantage of opportunities in the long haul market and signed a new contract with Boeing for
four new B777-300ERs plus four options, to be delivered in the middle of 2008. In December 2006, TAM is adding a
new frequency in New York and in 2007 it is adding a third frequency to Paris. This year, it received the right to fly to
London, which is a high demand, higher yielding market.
The carrier is poised to grow capacity by 27.5% in 2007 with an operating margin in the 16% range. Our price target of
$39 is based on 13x our 2007 estimate of $2.98.

LAN (BUY) - LAN's 3Q06 results were strong with operating margins improving to 9.3% as revenue grew 22.6% and
operating costs rose by 13.0%. Operating margins have not been this good for five quarters. LAN was able to maintain
yield increases and offset higher fuel prices. Passenger and cargo yields were up 17% and 6%, respectively.
Passenger yields rose principally due to improved revenue management (of international and premium business
mixes) and the usage of fuel surcharges.
LAN launched a new business model for its domestic and regional passenger operations (which we estimate to be
nearly 25% of its ASKs) which seeks to lower costs and stimulate demand. LAN also announced a new commission
structure for agents in Chile to lower commissions paid to 1% on economy class sales from the current 6%. These
initiatives should contribute to improving operating margins.
Despite challenging conditions on the cargo side, LAN's passenger business is expected to grow ASKs by 23% to 25%
in 2007. LAN expects growth in the passenger business to come from the increase in fleet size as well as from higher
daily aircraft utilization and adding more seats on planes. LAN plans on strengthening the Lima hub and growing the
Argentina business. The carrier is poised to grow system revenues by 17.1% in 2007 with an operating margin in the
10% range.
Our price target of $55 is based on 14x our new 2007 estimate of $3.89. We think that the company can achieve an
operating margin level of over 10%. LAN maintains a strong regional presence and its efficient and flexible model is
demonstrating its ability to produce profits. We believe the company is well positioned to grow its lucrative Latin
franchise in both passenger and cargo operations.

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 Exhibit 1 – Valuation and Operating Statistics

Growth 06-07 Operating M argin EBITDAR margin EV (adj) / EBITDAR Price/Earnings

Company Sales EBITDAR Net Profit 2005 2006E 2007E 2005 2006E 2007E 2005 2006E 2007E P/E 05 P/E 06E P/E 07E
South America carriers
LAN 17% 44% 43% 8% 9% 11% 15% 17% 20% 12.9x 9.5x 6.6x 22.1x 18.0x 13.1x
GOL 40% 36% 35% 23% 23% 24% 34% 32% 31% 14.1x 9.4x 6.9x 26.2x 17.1x 12.7x
TAM 23% 24% 28% 11% 16% 16% 20% 25% 25% 13.7x 7.9x 6.4x 23.2x 12.8x 10.0x
COPA 21% 29% 23% 17% 20% 21% 25% 27% 29% 15.7x 10.5x 8.1x 23.1x 14.4x 11.7x

M ean 25.4% 33.3% 32.4% 14.9% 17.0% 18.1% 23.3% 25.2% 26.4% 14.1x 9.3x 7.0x 23.7x 15.6x 11.9x
M edian 22.1% 32.6% 31.5% 14.1% 17.9% 18.8% 22.5% 26.0% 27.0% 13.9x 9.5x 6.8x 23.1x 15.7x 12.2x

Low-cost carriers
AirTran 18% 43% 193% 1% 4% 8% 16% 17% 21% 14.5x 9.9x 6.9x nm 31.4x 12.2x
Easyjet 21% 35% 59% 5% 7% 9% 15% 17% 18% 13.7x 10.2x 8.3x 39.8x 25.4x 17.5x
Frontier 8% 16% 228% -1% 2% 3% 12% 13% 14% 9.9x 7.2x 6.2x nm 82.5x 24.3x
JetBlue 16% 37% nm 4% 4% 7% 15% 14% 17% 20.8x 15.4x 11.2x nm nm nm
Ryanair 27% 13% 9% 22% 19% 18% 32% 29% 27% 16.4x 14.5x 12.5x 16.4x 14.5x 12.5x
Southwest 12% 18% 29% 11% 11% 12% 19% 18% 19% 8.7x 7.6x 6.4x 26.3x 21.0x 16.2x
US Airways 1% 8% 35% -1% 6% 7% 9% 14% 15% 23.6x 6.6x 6.1x nm 10.7x 7.8x

M ean 14.5% 22.8% 80.9% 6.0% 8.3% 9.7% 17.2% 18.5% 19.5% 14.9x 9.8x 8.0x 39.2x 28.8x 15.0x
M edian 14.2% 16.8% 34.7% 4.3% 6.6% 8.3% 15.5% 17.2% 18.6% 14.1x 8.7x 6.8x 33.0x 21.0x 14.5x

Network / International carriers

AMR Corporation 1% 19% 170% 0% 6% 8% 9% 13% 16% 12.1x 7.4x 6.2x nm 20.0x 7.5x
Continental 6% 15% 71% 0% 4% 5% 12% 14% 16% 10.4x 7.3x 6.3x nm 13.2x 7.9x
UAL Corporation 3% 40% 1061% -1% 3% 7% 6% 10% 13% 15.1x 8.3x 5.9x nm nm 11.4x
British Airways 2% 15% 31% 8% 8% 8% 18% 17% 19% 5.9x 5.9x 5.2x 15.5x 11.1x 9.7x
Air France-KLM 6% -7% -32% 4% 5% 3% 15% 15% 13% 5.4x 5.0x 5.3x 21.3x 12.5x 11.9x

M ean 4.1% 17.6% 240.1% 2.8% 5.0% 6.3% 12.3% 14.0% 15.6% 9.6x 7.0x 5.9x 17.4x 19.7x 11.3x
M edian 4.6% 17.3% 105.2% 2.4% 4.6% 6.4% 12.9% 14.1% 15.8% 9.6x 7.3x 6.1x 15.6x 13.2x 10.6x

Corrected exhibit from original publication on November 15, 2006

Source: Company and Calyon Securities (USA) calculations

(m) – See important disclosures on last page.

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 Exhibit 2 – Valuation and Operating Statistics, cont.

RPM ASM Load Factor RASM CASM , ex fuel

Company 2005 2006E 2007E 2005 2006E 2007E 2005 2006E 2007E 2005 2006E 2007E 2005 2006E 2007E
South America carriers
LAN 10,868 12,030 14,890 14,719 16,488 20,328 73.8% 73.0% 73.2% 17.03 18.42 17.50 11.70 12.32 11.76
GOL 6,052 9,349 13,515 8,231 12,422 18,013 73.5% 75.3% 75.0% 15.05 15.07 14.57 6.99 6.88 6.62
TAM 12,301 16,299 20,085 17,414 21,880 27,896 70.6% 74.5% 72.0% 15.01 15.75 15.18 8.87 8.51 8.11
COPA 3,831 5,045 6,058 5,368 6,920 8,200 71.4% 72.9% 73.9% 11.34 12.28 12.57 6.59 6.70 6.82

M ean 8,263 10,681 13,637 11,433 14,427 18,609 72.3% 73.9% 73.5% 14.61 15.38 14.96 8.54 8.60 8.33
M edian 8,460 10,690 14,202 11,475 14,455 19,170 72.4% 73.7% 73.6% 15.03 15.41 14.88 7.93 7.69 7.47

Low-cost carriers
AirTran 11,302 14,029 16,479 15,370 19,000 22,169 73.5% 73.8% 74.3% 9.43 10.14 10.29 6.25 6.22 5.98
Easyjet 17,055 19,648 22,596 19,971 23,045 26,502 85.4% 85.3% 85.3% 7.96 8.33 8.50 8.36 7.89 7.63
Frontier 7,437 8,796 9,579 9,886 11,337 12,244 75.2% 77.6% 78.2% 9.12 9.74 9.82 6.21 6.10 6.04
JetBlue 20,200 23,453 26,736 23,703 28,499 32,489 85.2% 82.3% 82.3% 7.18 8.19 8.32 4.86 5.16 5.12
Ryanair 18,833 24,286 29,629 24,282 29,260 35,697 77.6% 83.0% 83.0% 8.95 9.47 9.41 4.52 4.58 4.52
Southwest 60,223 68,116 76,271 85,173 92,672 101,939 70.7% 73.5% 74.8% 8.90 9.80 9.96 6.37 6.46 6.50
US Airways 32,909 60,448 60,654 42,321 77,021 77,021 77.8% 78.5% 78.8% 12.00 11.48 11.62 6.95 7.60 7.69

M ean 21,990 28,569 31,611 28,922 36,669 40,260 77.5% 79.0% 79.3% 9.38 9.94 10.05 6.40 6.46 6.38
M edian 17,944 21,550 24,666 21,837 25,772 29,496 76.4% 78.3% 78.5% 9.04 9.77 9.89 6.31 6.34 6.27

Network / International carriers

AMR Corporation 138,373 139,154 137,762 176,112 173,984 172,244 78.6% 80.0% 80.0% 10.54 11.51 11.67 7.37 7.59 7.56
Continental 71,261 78,874 82,955 89,647 97,571 102,450 79.5% 80.8% 81.0% 10.46 11.13 11.15 7.43 7.51 7.43
UAL Corporation 114,273 117,209 119,768 140,300 142,746 144,173 81.4% 82.1% 83.1% 10.66 13.66 13.93 7.46 7.88 7.92
British Airways 69,506 74,371 78,834 91,922 99,276 104,239 75.6% 74.9% 75.6% 17.67 17.18 16.74 6.90 6.41 5.98
Air France-KLM 117,596 127,710 138,693 145,817 154,857 164,458 80.6% 82.5% 84.3% 18.83 19.28 19.30 13.31 13.45 13.73

M ean 92,962 97,668 101,563 117,103 121,545 125,288 79.2% 80.1% 80.7% 13.82 14.67 14.70 8.87 8.96 8.92
M edian 92,767 98,041 101,361 116,111 121,011 124,206 79.5% 80.4% 80.5% 12.69 14.47 14.66 7.44 7.74 7.74

Corrected exhibit from original publication on November 15, 2006

Source: Company and Calyon Securities (USA) calculations

(m) – See important disclosures on last page.

Page 6
 Exhibit 3 – Stock Price Performance

Calyon

Airline Sector: Stock Price Perform ance

Quarter Week Year

Ticker 2001 2002 2003 2004 2005 to date to date to date

Indices
Dow Industrials INDU -7% -17% 25% 3% -1% 10% 1% 14%
Dow Transports TRAN -10% -13% 30% 26% 10% -1% 2% 15%
S&P 500 SPX -13% -23% 26% 9% 3% 10% 1% 12%
AMEX Airline Index XAL -48% -56% 58% -2% -9% 13% 10% 11%
Crude Oil Price USCRWTIC -26% 57% 4% 34% 40% -18% -2% -4%

M ajor Carriers
LAN Airlines S.A. LFL NA NA NA NA 15% 56% 8% 32%
GOL Linhas Aereas Inteligentes S.A. GOL NA NA NA NA 77% -16% -1% 6%
TAM S.A. TAM NA NA NA NA NA 10% -2% NA
COPA CPA NA NA NA NA NA 96% 17% 59%

Mean NA NA NA NA 46% 37% 5% 33%

Median NA NA NA NA 46% 33% 4% 32%

Corrected exhibit from original publication on November 15, 2006

Note: Year to Date Performance through 11/15/06
Stock Price Performance for TAM from 3/10/06
Source: Reuters

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 U.S. Research Comments
CALYON SECURITIES (USA) INC.
November 16, 2006

Other Companies Mentioned

AirTran Holdings (AAI; $12.83; ADD)
ACE Aviation Holdings (ACE-B.TO; $38.12; BUY)
Alaska Air Group (ALK; $43.80; BUY)
AMR Corporation (AMR; $32.33; ADD)
Continental Airlines (CAL; $43.08; ADD)
Copa Holdings SA (CPA; $43.35; BUY)
Delta Air Lines (DALRQ; $1.52; SELL)
Embraer-Empresa Brasileira de Aeronáutica S.A. (ERJ; $42.36; ADD)
Frontier Airlines (FRNT; $8.68; NEUTRAL)
GOL Linhas Aereas Inteligentes S.A. (GOL; $29.99; BUY)
JetBlue Airways Corp. (JBLU; $15.13; NEUTRAL)
US Airways (LCC; $59.50; ADD)
Lan Airlines S.A. (LFL; $49.30; BUY)
Southwest Airlines (LUV; $15.94; ADD)
Mesa Air Group (MESA; $9.03; ADD)
Northwest Airlines (NWACQ; $1.74; SELL)
Pinnacle Airlines Corp. (PNCL; $9.71; NEUTRAL)
Republic Airways Holdings (RJET; $17.38; BUY)
SkyWest, Inc. (SKYW; $25.95; BUY)
TAM SA (TAM; $30.30; BUY)
UAL Corporation (UAUA; $39.99; NEUTRAL)
WestJet Airlines Ltd. (WJA.TO; $11.22; ADD)
ExpressJet Holdings, Inc. (XJT; $7.76; NEUTRAL)

IMPORTANT DISCLOSURES
Analyst Certification
I, Ray Neidl, hereby certify that the views expressed in this research report accurately reflect my own personal views about the
securities and/or the issuers and that no part of my compensation was, is, or will be directly or indirectly related to the specific
recommendation or views contained in this research report.
I, Christine Min, hereby certify that the views expressed in this research report accurately reflect my own personal views about the
securities and/or the issuers and that no part of my compensation was, is, or will be directly or indirectly related to the specific
recommendation or views contained in this research report.
The member and/or analyst(s) involved in the preparation of this report have reason to know that an affiliate of Calyon Securities
(USA) Inc. received compensation from Copa Holdings SA for non-investment banking products/services in the past 12 months.
The member makes a market in the securities of Frontier Airlines.
The member and/or analyst(s) involved in the preparation of this report have reason to know that an affiliate of Calyon Securities
(USA) Inc. received compensation from GOL Linhas Aereas Inteligentes S.A. for non-investment banking products/services in the
past 12 months.
The member makes a market in the securities of JetBlue Airways Corp.
Calyon Securities (USA) Inc. covered the predecessor companies of US Airways. Ray Neidl initiated coverage of US Airways
(UAIRQ) on October 5, 2004 with a Sell rating and price target of $0.25 (price at initiation: $1.45), and the rating and target price
remained until liquidation. Ray Neidl initiated coverage of America West Holdings (AWA) on October 8, 2004 with a Neutral rating
and price target of $5 (price: $4.98); on April 20, 2005 the rating was lowered to Reduce and the price target was lowered to $4
($4.81); on April 25, 2005 the rating was raised to Neutral and the price target remained $4 ($4.27). The rating and price target of
AWA remained Reduce with a $4 price target until liquidation.
The member makes a market in the securities of US Airways.
Calyon or its affiliates participated in a public offering of Lan Airlines S.A.'s securities or received compensation for investment
banking services from Lan Airlines S.A. in the past 12 months.
Calyon or its affiliates managed or co-managed a public offering of Lan Airlines S.A.'s securities in the past 12 months.
The member makes a market in the securities of Mesa Air Group.
The member makes a market in the securities of Northwest Airlines.
The member makes a market in the securities of Pinnacle Airlines Corp.
The member makes a market in the securities of Republic Airways Holdings.
The member makes a market in the securities of SkyWest, Inc.
Ray Neidl initiated coverage of the TAM ord. (TAMM4; R$27) on October 25, 2005 with an ADD rating and R$31 price target. On

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 U.S. Research Comments
CALYON SECURITIES (USA) INC.
November 16, 2006

November 11, 2005 we raised our price target to R$34 (price at the time: R$30.50). On November 17, 2005 we raised our price
target to R$39 (R$35.50). On January 12, 2006 we raised our price target to R$53 (R$48.50). On March 13, 2006 we transferred our
coverage to the newly-launched ADS with an ADD rating and US$23 price target.
We initiated coverage of UAL Corp on October 5, 2004 with a Sell rating and Target Price of $0.25. We maintained that rating and
target price until the company emerged from bankruptcy on February 2, 2006.
The member makes a market in the securities of UAL Corporation.
The member and/or analyst(s) involved in the preparation of this report have reason to know that an affiliate of Calyon Securities
(USA) Inc. received compensation from WestJet Airlines Ltd. for non-investment banking products/services in the past 12 months.

RATING RECOMMENDATIONS (based on anticipated returns over a 12-month period): BUY, above 20%; ADD, 10%-20%;
NEUTRAL, +/-10%; REDUCE, negative return, but by less than 20%; SELL, negative return of more than 20%. OVERALL RATING
DISTRIBUTION for Calyon Securities (USA) Inc., Equity Universe: BUY - 51.3%, HOLD - 41.0%, SELL - 6.8%, Restricted - 0.9%.
Data as of September 30, 2006. INVESTMENT BANKING CLIENTS as a % of rating category: BUY - 18.3%, HOLD - 16.7%, SELL -
12.5%, Restricted - 100%. Data for 12-month period ending September 30, 2006. FOR A HISTORY of the recommendations and
price targets for companies mentioned in this report, please write to: Calyon Securities (USA) Inc., Compliance Department, 1301
Avenue of the Americas, 15th Floor, New York, New York 10019-6022. CALYON SECURITIES (USA) INC. POLICY: Calyon
Securities (USA) Inc.'s policy is to only publish research that is impartial, independent, clear, fair, and not misleading. Analysts may
not receive compensation from the companies they cover. Neither analysts nor members of their households may have a financial
interest in, or be an officer, director or advisory board member of companies covered by the analyst. ADDITIONAL INFORMATION
on the securities mentioned herein is available upon request. DISCLAIMER: The information and statistical data herein have been
obtained from sources we believe to be reliable but in no way are warranted by us as to accuracy or completeness. We do not
undertake to advise you as to any change in our views. This is not a solicitation or any offer to buy or sell. We, our affiliates, and any
officer director or stockholder, or any member of their families may have a position in, and may from time to time purchase or sell
any of the above mentioned or related securities. This material has been prepared for and by Calyon Securities (USA) Inc. This
publication is for institutional clients distribution only. This report or portions thereof cannot be copied or reproduced without the prior
written consent of Calyon Securities (USA) Inc. In the UK, this document is directed only at Investment Professionals who are
Market Counterparties or Intermediate Customers (as defined by the FSA). This document is not for distribution to, nor should be
relied upon by, Private Customers (as defined by the FSA). © 2006 Calyon Securities (USA) Inc. All rights reserved.

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