SMS Sans Frontires presentation to As BAA Shanghai

SMS Sans Frontières – presentation to As. BAA Shanghai and FSF BASS San Diego Ir. Roger Lee Director People, Safety and Quality Metrojet April 2014

INTRODUCTION Quick introduction of Metrojet’s CSQ Team Asia’s Economic Development and Business Aviation growth Implementation of SMS – Metrojet’s experience in walking on the SMS frontières Our commonality in safety Delivering Safety san Frontiers as industry partners 2

GREETINGS FROM METROJET’S CSQ TEAM 3

THE CORPORATE SAFETY & QUALITY TEAM Roger Lee Director People, Safety and Quality Training Crisis Management ERP Engineering Sue Ann Law Hans von Blucher Corporate Safety & Quality Analyst Manager, Air Safety Occupational Safety and Health EU-ETS Safety Promotions Safety and Quality Support Air Safety Flight Data Monitoring Operational World + Safety Officers Cecilia Lee Senior Corporate Safety & Quality Analyst Security Management Reporting Ground Operational Safety Confidential Reporting System

ONE AIRCRAFT DELIVERY TO ASIA PACIFIC EVERY THREE DAYS FOR THE NEXT 10 YEARS 870 aircraft currently , 2, 845 expected by 2019 Northeast Asia 90 Business Jets US$2. 9 bn High growth rate of 16% per annum in China Home to 6% of the worldwide business jet fleet China - around 360 jets registered , 1000 business jets anticipated to arrive in the next 10 years Fewer than 200 civil airports in China and many of them are not available to private aircrafts. Business jets in Asia are more for personal use rather than corporate (9: 1) South Asia 485 Business Jets US$12. 0 bn Southeast Asia 217 Business Jets US$6. 1 bn China 635 Business Jets US$21. 0 bn Oceania 263 Business Jets US$6. 0 bn Source: Embraer Analysis – totals may differ due to rounding – sustained growth scenario 5

INFRASTRUCTURE TO SUPPORT BUSINESS AVIATION? USA China • 14’ 000 Business Jets • >5’ 000 public use airports • >51 airports per 100, 000 km 2 land • 1. 2 million jobs • 150 USD billion economic output • 360 Business Jets (Greater China) • 190 public use airports • Over 110 military only airports • 1. 6 airports per 100, 000 km 2 land • Only 6 business jet MROs Circle Size indicates the number of aircrafts based at a location Sources: - US Figures: NBAA - China Figures: Asian Sky Group, Metrojet Research 6

METROJET 2013/14 FAST FACTS 34 2500 Flight Legs Total Flight Hours 100, 000 650 30% Aircraft in Fleet Engineering Hours HK Home Carrier 300 Staff 7600 Charter Passengers Market Share 17 years 22 heritage in Hong Kong Nationalities >100 Staff in Engineering Pilots & FA 7

THE FLEET GROWS STEADILY 42% 34 24 25 2010/11 2011/12 27 2012/13 2013/14 fleet increase since 2010 8

METROJET’S AIRCRAFT MAINTENANCE FACILITIES IN ASIA China – Hong Kong, SAR - Metrojet’s Headquarters - 300 staff with over 70 pilots and 110 maintenance professionals - Offer a complete range of aircraft management, aircraft charter, and aircraft maintenance service - Open since 1997 China – Zhuhai - Joint Venture with Hanxing Zhuhai General Aviation to form Metrojet Hanxing, located at Zhuhai airport - Over 15, 000 ft 2 of hangar space - Enhance the overall aircraft maintenance capability in China Philippines – Clark - Metrojet Engineering Clark (MEC) was established in 2012 - Located at Diosdado Macapagal International Airport (DMIA) in the Clark Freeport Zone - A Maintenance, Repair and Overhaul facility catering to increasing demands in the SE Asia region - Over 13, 000 ft 2 of hangar space India – Mumbai - Joint venture with Taj Air to form Taj. Air Metrojet Aviation - Aircraft maintenance capabilities 9

COMMON PERCEPTION IN BUSINESS AVIATION 10

CROSSING THE FRONTIÈRES THROUGH 4 PILLARS OFS AFETY MANAGEMENT LEADING BUSINESS AVIATION COMPANY IN ASIA 1 Customer 2 Product Safety Policy and Objectives Safety Assurance 3 People 4 Operations Safety promotion 5 Finance Safety Risk Management Best People ◦ Highest Standards ◦ Operational & Service Excellence 11

CHALLENGES – SMS PILLAR ONE Policies “Plug and Play” policies, procedure and personnel? Complex regulatory environment evolved from commercial aviation Safety standard can potentially be used as commercial bargaining chip by clients 12

CHALLENGES – SMS PILLAR TWO Risk Management “Why do we need to risk assess? We have been flying this same route for so long? ” “what is its value” “Secondary Duties” mentality Lack of skilled risk assessor – SME involvement crucial Tactical RA Retention of knowledge through a dynamic labour market Time consuming Landscape RA PDCA cycle 13

METROJET’S OPERATIONAL RISK PICTURE USING BOW TIE ANALYSIS § Root Cause, Contributing factors and initiating event § Existing defences § Existing recovery barriers § ALARP § Outcome § Undesirable state 14

METROJET’S RISK ASSESSMENT CRITERIA Meaning in relation to People/life costs Meaning in relation to financial/Property costs Meaning in relation to reputational costs Meaning in relation to Liability Cost Meaning in relation to Environmental Cost 15

CHALLENGES – SMS PILLAR THREE Safety Assurance E-Audit and physical operational audit programme “What is business aviation? ” Lack of designated FBOs and support facilities Lack of understanding in standards Have to establish the level of compliance between our manuals and the “real world” – implementation of fleetwide Flight Data Analysis Programme – our biggest project so far Investigation – 5’Ms, MEDA important 16

METROJET’S SAFETY BALANCED SCORECARD 17

CHALLENGES – SMS PILLAR FOUR Safety Promotion Apprehensive - “trust” of the safety system Influence by “macro environment” International workforce Targeted communication with consideration of cultural and professional groups differences Apply to a mobile workforce who needs to access the information anytime, anywhere Multilingual Resource hungry if done properly! 18

PROMOTING SAFETY THROUGH GROWTH • • Theme of the 2 -months Safety Digest Making use of IT Platform Safety Mascot Competition 19

2013 -2014 SAFETY MASCOT COMPETITION 20

THE CULTURAL CHALLENGES 21

TRAIN, TRAIN 22

SHARE SAFETY Safety – we need to share Without information sharing, safety is dead

AS AN INDUSTRY, WHAT CAN WE DO? Training – Clients – Staff – Regulators – Perspective staff Sharing – Regional specific hazards and trends – Risk bearing occurrences – Global trends – Lessons learnt – Proactive data Alignment – Alignment of safety standards and the “safety norm” Understanding and declaring what the minimum standard is for Asia Business Aviation industry Share – lessons learnt, deidentified safety data Risk based approach Safety Promotion Resources Asia Business Aviation safety forum Safety and ERP Industry Go team 24

CONCLUSION With growth comes risks – which must be managed in a systematic and structured manner Unfortunately, nothing called “plug and play” in aviation – having the policy, procedure or the hardware does not mean one is safe. These need to be continuously internalized. Safety is one of the core functions of any aviation business, just like finance, marketing, engineering and flight operations which contribute towards the ROI, NPV and EBIT of an operator Lets address safety as an industry team 25

FINALLY BUSINESS AV SAFETY 26

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