1. 1 Pricing x Contracting framework Draft for discussion purpose Pricing hierarchyOffer & Counterparts BSA Allotment POA + POA Defined Business POA Network Pricing Market rates Constraint LF >80% Unconstraint LF <80% Spot rates +++ ++ + (+) Legend : +++ Highest contract price - - - Lowest contract price ~ Fluctuating - - - - - ~ ~ Revenue maximizing price ~ + ~ ~ ~ * Customization features based customer segment  Guaranteed capacity and rate *  No ad hoc allowed if capacity not used  Released space if not booked in time (<2 days)  85% allotment performance  Cancellation fee (< 2 days) & booking discrepancies fees  Fixed rate * based on volume commitment ( w/ penalties)  No entry conditions on shipment level  No ad-hoc allowed. If ad-hoc required POA+ deleted  Cancellation fee if booking < 4 days  Fixed rates with shipment volume conditions  Comes in 2 versions With pre-booking Without pre-booking  Capacity purchase at current capacity value (evaluated by RM to maximize revenue)  Cancellation fee shipments > 3 LD/MD or 50% flight  Booking discrepancies fees  Capacity purchase at market rate  Cancellation fee (< 2 days) & booking discrepancies fees  Fixed discount on market rates with shipment volume conditions Revenue maximizing price + Purpose Mutual commitment with our customers  Top quality, highest priority  90% performance w/ penalties both ways  Overperformance at contract rate if space available  You come you pay, you don’t come you pay Up-sell & Down-sell Why do we offer this contract ?  Base load guaranteed  Guaranteed capacity & rate  Balancing seasonal fluctuation  Shipper requirement  Regular substantial business  Known date / flight  Predictable base load  Guaranteed capacity & rate  Not able to commit on BSA  Substantial fluctuating business  Smaller business with potential  Small regular business that cannot go for allotments  Specific irregular flows  Visibility towards customers  Offer “something” to customers or large KA What options to offer to our customers ?  Market visibility  Mostly small/express shipments  Upsell / price reference  E-booking  Large / special shipments  Overflow customer w/ contracts  Upselling  Hunting  Too expensive  Allotment / POA+  Space for overbooking  Ad-hoc  Guaranteed capacity / same rate for overbooking  BSA  Not so regular  POA+ or POA defined business  Guaranteed capacity / same rate for overbooking  BSA  No space available : make space by cancelling other booking  higher ad hoc  Too expensive  Ad hoc  Price goes up & down can’t work with it  POA+ or POA defined business  Structural lower rate  POA  Lower rate for this shipment  Ad hoc  I want guaranteed capacity  BSA / allotment  I want fixed rate  POA

2. 2 Winter conditions Capacity access BSA Allotment POA + POA Defined Business POA Network Pricing Market rates Spot rates  Guaranteed capacity for mentioned amount & flight numbers/destinations if booking made > 24 hrs before departure  Booking not made > 24 h  Allotment released  Additional weight, with a maximum of +15%, will be accepted against Contract rate  More volume on request/reply basis and subject to flight conditions PerformanceContract rateCancellation & booking discrepancies  After 2 weeks 0% performance  Agreement cancellation  After 4 weeks Performance 0-50%  Allotment cancellation Performance 50-85%  Allotment adjusted / new rate  Performance 50-85% for > 3 months  Allotment cancellation  Contract rate based on chargeable weight  Can be adjusted monthly by AFKL  Cancellation fee (based on incurred cost) if cancellation is made < 24 hours before departure time  Fee / rate adjustment if large deviation between booking and actual dimensions  Available capacity  Minimum rate settings  Performance 0-50% for >2 months  may cancel the Agreement on the specific lane / immediate effect  Performance 50-70% for > 2 months  may adjust the Agreement on the specific lane /immediate effect  If specified mutually agreed commitment not met may adjust or cancel the Agreement.  Rate based on chargeable weight  Not valid for oversized cargo  Right to adjust the rate on a monthly basis  Cancellation fee if cancellation < 24 hours before departure  Fee / rate adjustment if large deviation between booking and actual dimensions  Available capacity  Entry conditions  No performance commitment  Rate based on chargeable weight  Cancellation fee if cancellation < 24 hours before departure  Fee / rate adjustment if large deviation between booking and actual dimensions