Carmen Systems Carmen person, Title 23 September 2003

Mission Statement To make transportation more cost effective, reliable and environmentally friendly

Carmen in short... Revenue: 20 MUSD in 2002 Growth rate: 40% (5 year period) Employees: 180 Speciality: Resource optimization Business model: Rental agreements Clients: Airlines, railways Headquarters in Sweden, branch offices world-wide General

1987 First airline client 1992Pairing optimization 1994First crew rostering client 1995 First railway client 1998First client outside Europe 2002 First Asian client 2003 First US client History General

Carmen implements resource optimization solutions that: Improve utilization of resources Increase operational stability Provide measurability & control Increase service level to client’s client...for ambitious transportation organizations, worldwide Value proposition

Cost savings (typically 3-8% of total crew cost) Flexibility (easy to simulate rule changes, reduce planning time, etc) Transparency (cost control, reduced key people dependency) Crew satisfaction (introduce crew request system in rostering) Rebooking passengers to minimize frustration and cost Value proposition

Services Consulting –Process re-engineering –Key Performance Indicators –Simulations & decision support Outsourcing –Seasonal analysis –Production planning Training –Planning, Administration –Management Products

New aircraft types? Hire or fire crew? New route to Sydney? Delay or cancel flight? How to rebook passengers? Products

Product Overview Carmen Rave (General Modelling Language) Carmen Integrated Operation Control Carmen Roster Maintenance Carmen Crew Pairing Carmen Crew Rostering Carmen Fleet Control Carmen Fleet Assignment Carmen Tail Assignment Carmen Passenger Recovery Carmen Crew Control Carmen Manpower

Clients

Clients - Carmen Crew Pairing

Clients – Carmen Crew Rostering

Mega Airlines 1American Airlines 1195,897 MRPK USA 2United Airlines 2176,121 MRPK USA 3Delta Air Lines 3164,267 MRPK USA 4Northwest Airlines 4115,963 MRPK USA 5British Airways 5100,112 MRPK UK 6Air France 697,151 MRPK France 7Continental Airlines 792,191 MRPK USA 8Lufthansa 888,570 MRPK Germany 9Japan Airlines 983,728 MRPK Japan 10Qantas Airways 1075,134 MRPK Australia Clients Data from 2002

Major European Airlines 1British Airways 5100,112 MRPK UK 2Air France 697,151 MRPK France 3Lufthansa 888,570 MRPK Germany 4KLM 1559,417 MRPK Netherlands 5Iberia 2040,470 MRPK Spain 6Alitalia 2430,025 MRPK Italy 7Virgin Atlantic 2627,004 MRPK UK 8SAS 3023,212 MRPK Sweden 9Swiss 3122,371 MRPK Switzerland 10My Travel Airways 3221,900 MRPK UK Clients Data from 2002

Major European Railways 1Deutsche BahnGermany 2SNCFFrance 3TrenitaliaItaly 4RENFESpain 5ÖBBAustria 6SBBSwitzerland 7SNCBBelgium 8NSNetherlands 9SJ / Green CargoSweden Clients

Major Asian/Pacific Airlines 1Japan Airlines 983,728 MRPK Japan 2Qantas Airways 1075,134 MRPK Australia 3Singapore Airlines 1174,183 MRPK Singapore 4All Nippon Airways 1655,001 MRPK Japan 5Cathay Pacific 1749,041 MRPK China 6Thai Airways Int. 1846,571 MRPK Thailand 7Korean Air 1941,798 MRPK South Korea 8Malaysia Airlines 2137,653 MRPK Malaysia 9China Southern Airl. 2528,940 MRPK China 10China Airlines 2726,806 MRPK Taiwan Data from 2002 Clients

Major Latin American Airlines 1Varig 2826,115 MRPK Brazil 2Aeromexico 5313,308 MRPK Mexico 3TAM Linhas Aereas 5812,075 MRPK Brazil 4Mexicana 6111,735 MRPK Mexico 5LanChile 6411,140 MRPK Chile Clients Data from 2002

Partners

Finance Marketing Administration Global Operations Global Operations Global Sales Global Sales R & DR & D R & DR & D Carmen Consulting Organization CEO Service Centre Service Centre Implementation Services Carmen Academy IQ HR

“Carmen is one of the best investments we have ever made” British Airways Client Statement

Three key aspects: Flexibility Predictability Holistic view Optimization

Use optimization to address questions “Why are we having the same duty limits but less average block time compared to airline X?“ “What would the cost be to allow a combination of fixed and variable free days? “ “How can the planning be efficient when I have two blank days, and three deadheads in my roster this month?" Optimization

Northwest Deutsche Bahn Lufthansa British Airways Core product Legality Quality Costs Reports Interfaces Colours etc... Optimization methods GUI Modelling tools like Rave and the report generator Basic functionality Carmen Rave

The same legality tool in all products Short lead-times to introduce new rules Very important when performing simulations Clients estimate additional savings of 2% RULE max_duty = %duty% <= 9:00; REMARK “Maximal duty”; END Carmen Rave

Adding a new legality rule to the system Generic control panel for legality, quality and cost A Rave programmer creates the rule The system immediately respects the new rule Adding a rule with Rave

“Carmen gives us the ability to respond to change. This is the key to survival.” SAS Client Statement