Company Profile

HISTORY

Copa was established in 1947 by a group of Panamanian investors and Pan American World Airways, which provided technical and economic assistance as well as capital. Initially, Copa served three domestic destinations in Panama with a fleet of three Douglas C-47 aircraft. In the 1960s, Copa began its international service with three weekly flights to cities in Costa Rica, Jamaica and Colombia using a small fleet of Avro 748s and Electra 188s. In 1971, Pan American World Airways sold its stake in Copa to a group of Panamanian investors who retained control of the airline until 1986. During the 1980s, Copa suspended its domestic service to focus on international flights.

In 1986, CIASA purchased 99% of Copa, which was controlled by the group of Panamanian shareholders who currently control CIASA. From 1992 until 1998, Copa was a part of a commercial alliance with Grupo TACA's network of Central American airline carriers. In 1997, together with Grupo TACA, Copa entered into a strategic alliance with American Airlines. After a year our alliance with American Airlines was terminated by mutual consent.

On May 6, 1998, Copa Holdings, the holding company for Copa and related companies was incorporated as a sociedad anónima under the laws of Panama to facilitate the sale by CIASA of a 49% stake in Copa Holdings to Continental. In connection with Continental's investment, we entered into an extensive alliance agreement with Continental providing for code-sharing, joint marketing, technical exchanges and other cooperative initiatives between the airlines. At the time of our initial public offering in December 2005, Continental reduced its ownership of our total capital stock from 49% to approximately 27.3%. In a follow-on offering in June 2006, Continental further reduced its ownership of our total capital stock from 27.3% to 10.0%. In May 2008, Continental sold its remaining shares in the public market.

Since 1998, we have grown and modernized our fleet while improving customer service and reliability. Copa has expanded its fleet from 13 aircraft to 82 aircraft. In 1999, we received our first Boeing 737-700s, in 2003 we received our first Boeing 737-800s, and in 2005 we received our first Embraer 190. In the first quarter of 2005, we completed our fleet renovation program and discontinued use of our last Boeing 737-200s. During the second quarter of 2005, we purchased AeroRepublica, the second-largest air carrier in Colombia in terms of number of passengers carried each year since 2005. We have expanded to 65 destinations in 29 countries. We plan to continue our expansion, which includes increasing our fleet, over the next several years.


BUSINESS OVERVIEW

Copa Holdings is a leading Latin American provider of airline passenger and cargo service through our two principal operating subsidiaries, Copa Airlines and Copa Airlines Colombia. Copa Airlines operates from its strategically located position in the Republic of Panama, and Copa Airlines Colombia provides service primarily within Colombia complemented by international flights from various cities in Colombia to Panama City, Caracas, Cancun, Mexico City, Guayaquil, and Quito.

Copa Airlines offers more than 280 daily to North, Central and South America and the Caribbean from its Panama City hub. Copa Airlines provides passengers with access to flights to more than 120 other destinations through codeshare arrangements with the new United pursuant to which each airline places its name and flight designation code on the other's flights. Through its Panama City hub, Copa Airlines is able to consolidate passenger traffic from multiple points to serve each destination effectively.

Copa Airlines Colombia provides service to 10 cities in Colombia as well as international connectivity with Copa Airlines' Hub of the Americas through flights from Barranquilla, Bogota, Bucaramanga, Cali, Cartagena, Medellin and Pereira. Additionally, Copa Airlines Colombia has international flights from Colombia to Panama City, Caracas, Cancun, Mexico City, Guayaquil, and Quito.

As of November 1, 2013 Copa Holdings operates a fleet of 90 passenger aircraft: 64 Boeing 737-Next Generation aircraft, 26 Embraer 190 aircraft.


COMPETITIVE STRENGTHS AND BUSINESS STRATEGY

COMPETITIVE STRENGTHS

We believe our primary business strengths that have allowed us to compete successfully in the airline industry include the following:

BUSINESS STRATEGY

Our goal is to continue to grow profitably and enhance our position as a leader in Latin American aviation by providing a combination of superior customer service, convenient schedules and competitive fares, while maintaining competitive costs. The key elements of our business strategy include the following: