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Aer Lingus Renews Contract with ARINC for Flight Communications

June 26, 2007

Annapolis, Maryland—ARINC Incorporated today announced it has received a three-year renewal of its flight communications contract with Dublin-based Aer Lingus, one of Europe’s leading low-cost carriers. ARINC will continue to provide the Irish flag carrier with efficient GLOBALinkSM VHF ACARS® data link service and GLOBALink SATCOM satellite communications.

Aer Lingus has rapidly expanded its passenger volume over the last five years by capitalizing on a unique, Internet-based sales model, and has added a large number of routes and new Airbus aircraft. Data transmission volumes have also shown significant increases over the past two years, far in excess of expectations.

“Our low-cost business model places strategic emphasis on efficiency whilst driving down our cost base” said Enda Corneille, Aer Lingus Commercial Director. “For thirteen years, ARINC’s data link services have been a strong facilitator of our most efficient flight operations.”

Last month, the airline made headlines by announcing plans to open 3 new U.S. routes in 2007—San Francisco, Orlando, and Washington Dulles—under new Open Skies agreements. The expansion will increase Aer Lingus's U.S. destinations from four to seven, and will lead to significantly increased traffic between Ireland and the U.S. Aer Lingus now serves more than 40 international destinations from its Dublin and Cork hubs in Ireland.

“ARINC was able to provide Aer Lingus with a very competitive proposal due to our close working relationship and our understanding of their expansion needs,” stated Ed Montgomery, ARINC Vice President and Managing Director, EMEA. “We are delighted to further cement our partnership as Aer Lingus grows, and we will continue to work with them to ensure that all their Data Link equipped fleet is used to its full potential.”

In 2006, Aer Lingus entered a new phase with a public offering on the Irish and London Stock Exchanges which realized €400 million in equity for the airline’s future growth. The expansion of the Aer Lingus long-haul fleet commenced in May of this year with the delivery of a new A330-200E aircraft, followed by an A330-300E delivered in June.

Aer Lingus’s low-cost, low fares model is centered on maintaining a low unit cost, offering one-way fares, maintaining effective fleet utilization, and developing the Aer Lingus brand. Consistent with this low-cost model, Aer Lingus’s primary distribution channel is through its website, and in 2006 approximately 73% of total passenger revenue was generated this way. The Aer Lingus short-haul fleet consists of six Airbus A321 and 24 Airbus A320 aircraft, with two more A320s due for delivery later this year. The long-haul fleet consists of eight Airbus A330 aircraft with an additional aircraft due for late June delivery. For more information, visit the web site at www.aerlingus.com.

ARINC Incorporated is the world leader in transportation communications and systems engineering. The company develops and operates communications and information processing systems and provides systems engineering and integration solutions to five key industries: airports, aviation, defense, government, and surface transportation. Founded to provide reliable and efficient radio communications for the airlines, ARINC is headquartered in Annapolis, Maryland, and operates key regional offices in London and Singapore, with over 3,200 employees worldwide. ARINC is ISO 9001:2000 certified.

Release: 07-106

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