1. THE FUTURE OF AIR CARGO IN A GLOBAL MARKET THE FUTURE OF AIR CARGO IN A GLOBAL MARKET PETER SEDGLEY G.M.Cargo - Commercial Operations Emirates Airline PETER SEDGLEY G.M.Cargo - Commercial Operations Emirates Airline

2. PRESENTATION TOPICS Intermodal transportation Alliances or partnerships Internet sales / e-bookings

3. NEEDS CONSUMER CUSTOMER Goods / Service Finished Products MANUFACTURER SERIVCE PROVIDER RAW MATERIALS OrderDeliver WHAT DRIVES GLOBAL TRADE

4. COMMERCE Trade and distribution are inextricably linked, one cannot thrive without the other WHAT DRIVES THE BUSINESS TRADE += COMMERCE

5. LOGISTICS Vs SUPPLY CHAIN Air cargo is established as an integral part of the transportation chain The cargo industry is related to logistical services With globalisation, outsourcing and supply chain concepts is growing at a healthy pace There is more demand for door to door products Cargo industry is more customer focused and driven by customer needs

6. LOGISTICS Vs SUPPLY CHAIN Multimodal transportation will gain popularity and will be the way forward However, true “Multimodalism” can only be achieved when Creation of a true Multimodal waybill which will be valid for transportation by SEA/AIR/LAND A new unified Convention/Conditions of Carriage to encompass all the different transportation modes “e-cargo” is beginning to play a larger and critical role within the evolving “e-commerce”

7. LOGISTICS MODEL OF TOMORROW Seamless, transparent communication pipeline Effective vertical integration Of services And strong horizontal communication Use Of broad logic based flexible standards - use of XML and future development languages and protocols Data captured At source To be used, updated And returned To The pipeline At every stage Use of 3D bar-coding/embedded chip technology using RF/GPS mediums for tracking shipments

8. LOGISTICS MODEL OF TOMORROW Use the communications pipeline as a single unified source to manage the entire end-to-end logistics process Use of new access mechanisms via mobile phones using WAP/EDGE etc.. Increased regular usage of the world wide web to move information

9. EMIRATES COMMUNICATION PIPELINE BANKS FORWARDER AGENT FORWARDER AGENT GHA TRUCKER INSURANCE CUSTOMS AIRLINE GOVT. AGENCY END USER MANUFACTURER COMMUNICATIONS PIPELINE

10. Customer SKYCHAIN CustomsGHA Forwarder Trucker Manufacturer Airline OPEN COMMUNICATION MEDIUM COMPLETE VISIBILITY TO END USER/CUSTOMER OPEN COMMUNICATION MEDIUM COMPLETE VISIBILITY TO END USER/CUSTOMER

11. ALLIANCES No alliance like “STAR ALLIANCE” or “ONE WORLD” with large airlines. Rather build selected customised commercial service partnerships to provide total solutions on a WIN WIN basis No alliance like “STAR ALLIANCE” or “ONE WORLD” with large airlines. Rather build selected customised commercial service partnerships to provide total solutions on a WIN WIN basis

12. VALUE CHAIN - TOTAL SOLUTION Door Pick-up Insurance Packaging Custom Clearance Warehousing Inventory Management Brokerage Door Pick-up Insurance Packaging Custom Clearance Warehousing Inventory Management Brokerage Door Delivery Insurance Packaging Custom Clearance Warehousing Inventory Management Brokerage Door Delivery Insurance Packaging Custom Clearance Warehousing Inventory Management Brokerage Customer Airline Service Provider Service Provider Airline Service Provider Service Provider Customer ORIGIN DESTINATION Providing total solution to the customer through commercial alliances with various service providers

13. E-BOOKING STATISTICS

14. E-BUSINESS AS A PERCENTAGE OF TOTAL BOOKINGS

15. KEY BENEFITS OF E-BOOKINGS Total visibility & control Convenience of booking at anytime Availability to airline capacity Reuse data across the pipeline Improved accuracy of data Visibility to customer’s customer Capability for importer to book online

16. KEY BENEFITS OF E-BOOKINGS Cost saving for all parties in the supply chain Overcome busy telephone line, non availability of personnel, weekends etc Most importantly WHAT YOU SEE IS WHAT YOU GET As web pages are linked directly into the Airline’s mainframe system

17. EFFECTIVE USE OF E-BUSINESS TO FURTHER TRADE Low cost carriers like Easy Jet, Southwest, Ryan Air have reaped cost benefits gains by distributing through the Internet. They have been able to price the product at a low cost due to low distribution cost Southwest have gained 47% revenue gain through the internet Easy Jet have gained 89% sales through the internet

18. Independent analyst JUPITER MEDIA METRIX reported that online sales of tickets totalled us$ 16 billion in 2001 and is expected to grow to us$ 40 billion by 2007 EFFECTIVE USE OF E-BUSINESS TO FURTHER TRADE

19. THE FUTURE OF AIR CARGO IN A GLOBAL MARKET THE FUTURE OF AIR CARGO IN A GLOBAL MARKET THANK YOU