Family Airlines intends to offer everyday, every seat, low fare flights to and from heavy populated markets within the continental U.S. and Hawaii. Family Airlines believes utilizing the four engine Boeing 747-400 jumbo jet equipped with 539 seats in the main cabin and 42 Office Class seats on the upper deck, will result in the lowest cost per available seat mile in the industry.

Family Airlines will cater to travelers on budgets, families with children, business travelers wishing to conserve resources, as well as all other travelers for whom cost may be a consideration and who desire to fly in comfort at the lowest available fare.

 Family will introduce an unrestricted no frills economy fare that will be substantially lower then the lowest fares offered today by other airlines. All passengers on a flight in similar class seating will pay the same fare.

A significant decrease in fare structure normally translates into a measurable increase in traffic, resulting in the desired increase in revenue. Therefore, the Company's pricing strategy is intended to stimulate additional traffic as well as capture a significant portion of the current market.

The primary source of revenue for most airlines is passenger ticket sales, however at Family it will be quite a different picture. In fact the company plans to develop alternative profit centers that will generate approximately fifty percent of its total revenue, thus limiting the reliance on passenger ticket sales. These profit centers will include: optional in-flight food service, entertainment rental such as: movies and video games, sky phones, shop by mail, internet and e-mail access, all available for an additional cost by credit card. In addition, the transport of cargo and mail will represent a significant increase in income with very little increase in operational cost.

The uniqueness of this Boeing 747-400 aircraft is its ability to carry over 100,000 pounds of freight on pallets, along with a full load of passengers. One of the most vital statistics in the airline business is the load factor. This figure expresses the relationship between available seat miles and revenue passenger miles realized, i.e. the actual number of paying passengers on a given flight. The company anticipates its unusual low fares will result in pre-sales of 100% on its seats on all flights.

Family's philosophy is to eliminate no shows and over bookings by offering all of its seats at non-refundable and non-changeable prices.

Why start an airline today? The timing could not be better! With the traditional "pre-deregulation" airlines about to go bankrupt and the newer ones unable to fill their vacancy (mainly due to higher operating cost and lack of capacity), the Family Airlines way is a sure success. No airline today can compete on a fare basis, in the markets proposed to be serviced by Family Airlines.

Why the Boeing 747-400? The choice of this aircraft over others is based on consumer confidence, safety record, availability and overall capacity. The 747-400 is considered one of the world's safest and most comfortable aircraft used in commercial aviation today. The level of training necessary to be certified to fly this type of aircraft ranks its pilots among the most experienced in the industry and the elite of their profession.

Lowest Industry Fares Unlike traditional airlines, Family Airlines fare structure is based on an average block hour cost, thus allowing Family Airlines to offer one single fare on each flight, depending on time of purchase. All seats purchased 30 days or more in advance will range in price from $19 for the short hops to $69 for the coast to coast flights. All flights will be non-stop point-to-point.

Non-Reliance on Travel Agents Most start-up airlines tend to rely heavily on travel agencies to book their flights for them. This can result in the quick death of a start-up airline. Family Airlines will control its own advertising, marketing. All tickets will be sold via the internet with automated ticket machines placed in various locations assuring maximum passenger load factors.

Eliminating No-Shows & Over-Bookings Once a ticket is purchased it cannot be changed. As with a ball game or theater ticket, if you don't show up your ticket is void. By instituting this type of restriction, Family Airlines intends to eliminate No-Shows and Over-Bookings.

Profit Centers Family Airlines will operate with multiple Profit Centers, including passenger sales, cargo sales, tour & group sales, in-flight entertainment, food services, along with in-house advertising. All senior management will be responsible for maintaining a profit in their particular area.

 In-flight Services Family Airlines will operate the on-board food concession as an individual Profit Center. Senior management will be responsible for providing an online menu consisting of more than 30 items including a variety of salads, sandwiches, hot entrées and beverages al available at a reasonable cost.

Cargo Sales Family Airlines will be the only operator of wide body Boeing 747-400's within the United States. The 747-400 will allow Family Airlines to carry up to 100,000 lbs., of freight on pallets on each of its flights, thereby greatly increasing overall revenues.

Interline vs. Marketing Agreements Family Airlines will avoid interline agreements with other carriers but will aggressively seek both passenger and cargo agreements with foreign carriers.