ANAC

Brazilian National Civil Aviation Agency

Award Ticket

Airline ticket issued by the airline company as a result of the redemption by the member of the points from client loyalty programs or the client loyalty program coalition network.

Breakage rate

Average of the last 24 Monthly Breakages.

Breakage revenue

Amount related to recognition of Breakage deferred revenue as Breakage revenue based on redemptrion curve.

Burn/earn

Total redeemed points divided by the total accrued points during the same period.

Deferred Breakage Revenue

Value corresponding to the percentage (breakage rate) of the issued points that it is estimated will not be redeemed.

Gross Billings from points

alue corresponding to the Multiplus points issued during the period, calculated as deferred revenue.

Member

Individual registered as a member of the client loyalty programs or loyalty program coalition networks.

Monthly Breakage

Points expired and not redeemed as a percentage of the points issued two years ago. Ex.: points expired and not redeemed in January 2010 as a percentage of the points issued in January 2008.

Point Expiration Date

Date on which the point loses its validity. The Multiplus policy establishes a validity of two years for each point issued.

Pro forma

Numbers that consider the liability accounts to be both the points issued before January 2010 (that remained in the TAM statement) as well as ones issued later (Multiplus liabilities).

Redemption Flexibilization

Offer of the redemptions of award tickets for less than 10,000 points.

Revenue from the Sale of Points

Value corresponding to the recognition of the earnings in the income statement as the points are redeemed.

RPK (Revenue Passenger Kilometer)

Number of kilometers traveled per paying passenger.