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

2. I NTRODUCTION 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

3. G REETINGS FROM M ETROJET ’ S CSQ T EAM 3

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

5. O NE A IRCRAFT D ELIVERY T O A SIA P ACIFIC E VERY T HREE D AYS FOR THE NEXT 10 Y EARS 5 870 aircraft currently, 2,845 expected by 2019 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$12.0bn Oceania 263 Business Jets US$6.0bn China 635 Business Jets US$21.0bn Northeast Asia 90 Business Jets US$2.9bn Southeast Asia 217 Business Jets US$6.1bn Source: Embraer Analysis – totals may differ due to rounding – sustained growth scenario

6. I NFRASTRUCTURE TO S UPPORT B USINESS A VIATION ? 6 Circle Size indicates the number of aircrafts based at a location 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 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 USA Sources: - US Figures: NBAA - China Figures: Asian Sky Group, Metrojet Research

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

8. T HE FLEET GROWS STEADILY 8 42% fleet increase since 2010

9. M ETROJET ’ S A IRCRAFT M AINTENANCE F ACILITIES I N A SIA 9 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 TajAir Metrojet Aviation - Aircraft maintenance capabilities

10. C OMMON PERCEPTION IN BUSINESS AVIATION 10

11. C ROSSING THE FRONTIÈRES THROUGH 4 PILLARS OF S AFETY MANAGEMENT 11 L EADING B USINESS A VIATION COMPANY IN A SIA Safety Policy and Objectives Safety Assurance Safety promotion Safety Risk Management Best People ◦ Highest Standards ◦ Operational & Service Excellence 1 Customer 2 Product 3 People 4 Operations 5 Finance

12. CHALLENGES – SMS P ILLAR O NE 12 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

13. CHALLENGES – SMS P ILLAR T WO 13 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 Retention of knowledge through a dynamic labour market Time consuming Tactical RA Landscape RA PDCA cycle

14. M ETROJET ’ S O PERATIONAL R ISK P ICTURE USING B OW T IE ANALYSIS 14  Root Cause, Contributing factors and initiating event  Existing defences  Undesirable state  Existing recovery barriers  Outcome  ALARP

15. M ETROJET ’ S RISK ASSESSMENT CRITERIA 15 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

16. CHALLENGES – SMS P ILLAR THREE 16 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

17. 17 M ETROJET ’ S S AFETY B ALANCED S CORECARD

18. CHALLENGES – SMS P ILLAR F OUR 18 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!

19. P ROMOTING SAFETY THROUGH GROWTH 19 Theme of the 2-months Safety Digest Making use of IT Platform Safety Mascot Competition

20. 2013-2014 SAFETY MASCOT COMPETITION 20

21. T HE CULTURAL CHALLENGES 21

22. T RAIN, TRAIN, TRAIN 22

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

24. A S AN INDUSTRY, WHAT CAN WE DO ? 24 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

25. C ONCLUSION 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

26. F INALLY 26 BUSINESS AV SAFETY

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