Company Overview of Aerolineas Argentinas S.A.

Air Lease Corporation announced a lease agreement with Aerolíneas Argentinas for six new Boeing 737-800 aircraft, each on lease for twelve years. The aircraft are scheduled for delivery between November 2014 and February 2016.

Aerolineas Argentinas S.A.'s union FAPA has requested collective bargain talks with the government. The union would also like to see the reinstatement of the Air Transport Under-Secretariat. The last pay agreement for workers at the company expired four months ago and no discussions have started yet.

Aerolineas Argentinas S.A. signed reciprocal code-share agreements with both Air France-KLM and KLM Royal Dutch Airlines. With these agreements, signed in Aerolineas Argentinas headquarters in Buenos Aires, Air France and KLM will offer their clients a significant number of new South American destinations operated by Aerolineas Argentinas beyond Buenos Aires. These new destinations will include such important cities as Cordoba (Argentina), Mendoza (Argentina), Rosario (Argentina), Montevideo (Uruguay) and Asuncion (Paraguay). Aerolineas Argentinas clients will have access to a number of new European destinations operated by Air France and KLM beyond Paris-Charles de Gaulle and Amsterdam-Schiphol. The new destinations will include important French cities Nice, Marseille, Toulouse, Lyon and Bordeaux and other main European destination such as Berlin and Munich. The carriers will also be offering reciprocal frequent flyer benefits in their loyalty programs. Over 1.5 million members of AerolineasPlus, the Aerolineas Argentinas frequent flyer programme and the 19 million AIR FRANCE-KLM Flying Blue members, will be able to earn miles and having access to award tickets on the networks of the three airlines, more than 250 destinations. These agreements will become effective in the first quarter of 2012. The agreements were signed within the framework of the next entry of the Argentine carrier to the SkyTeam global alliance scheduled for 2012.