OAG.

The immediate impact to OAG as a result of the September 11th attack was the necessity to be prepared to push flight schedule information to our customers the moment commercial air traffic resumed. OAG was keenly aware of how crucial it was to insure the accuracy and validity of that data during the period of frequently changing flight schedules. This was a monumental task since OAG receives flight schedule information from over 850 airlines, every commercial airline worldwide, and with schedules changing moment to moment. OAG distributes this unbiased information to the world's global distribution systems, airline reservation systems used by Travel Agents, the airline industry, government agencies (including FAA and USPS) and associated organizations throughout the world.

OAG implemented an emergency procedure to accommodate the frequently changing flight schedules occurring post September 11th. OAG adjusted staffing to provide flight schedule information on as-needed basis to any existing or new customers, many of which were government agencies. Although this required long hours for OAG staff, OAG and its employees appreciated the opportunity to pitch in and make a difference during those difficult weeks after the disaster. Many customers requested twice the normal frequency of their data delivery.

In light of the September 11 disaster, many businesses and government agencies have opted to reduce their travel for an interim period. However, we all know the value and necessity of face-to-face meetings. Consequently, I believe that business and official travel will increase and stabilize, maybe not to the degree of pre-September 11th, but definitely higher than the percentages we're seeing today. Statistics released by OAG on November 14th show that the original schedules for all internationals flights into the US for November 8, 2001 fell from 1,801 to 1,510 -- a cancellation of 291 flights (16 percent) for that one day. This day is mirrored in the year-on-year comparison which shows a reduction of 17 percent of flights for the same day versus November 9, 2000. US domestic travel has been equally hard hit. More than 4,600 flights (15 percent) that were planned to operate on November 8th were cancelled or changed post-September 11th. This represented a drop in capacity of nearly half a million seats. Thes e figures do not reflect the seat occupancy rates.

With the operating environment continuing to change, it is difficult to predict what will happen in the days and weeks ahead but OAG will continue to monitor the situation. OAG is the only company currently delivering daily refreshes of schedule data.