1. AGIFORS Airline Operations Rome 20 - 24 May 2002

2. Air NZ and Ansett Integration Consolidate the 2 Integrated Operations Centres of both airlines into one located in Melbourne, Australia. Several challenges to meet; Different Operations & Crew systems/processes Different rule sets Different schedule design parameters Different aircraft maintenance processes Align the Operational Processes - Cultural Align the Operational Systems - Technical

3. Process Redesign … four clusters of process focus and organisational leadership emerge from these processes INTEGRATED OPERATIONS

4. An integrated operations centre has been re-designed using internal experience and benchmarks Integrated Operations Centre... Tech Crew RMU Fleet RMU Cabin Crew RMU Airports RMU Ops Strategy, Planning and IntegrationRMU Flight Watch Maint Coord / ACSched Cargo Coord Airport /IFP Support Pax Coord REVENUE MANAGEMENT ANZES Customer Service / AlliancesRMU IOC Manager ATC Planning (1 in future) Crew Roster Rebuild Crew Tracking Load Control Payload Opt. Flight Planning KEY: Core IOC Functions RMU / BU IOC Back Office Communication Line AirportsRMU

5. Revised IOC role play…… 1 Operations Schedule Delivery Planning Schedule delivery risks & cost - end to end sign-off Crew manpower planning - volume & TODs All resource and risk trade-offs….”robustness” Schedule design/delivery forums manager Network Performance Economic & risk modelling Pre & post schedule delivery analysis Operations Research Business process analysis & design

6. Revised IOC role play…… 2 Logistics Delivery Roster production & repair Crew training & compliance Tail tracking Maintenance tracking and A check assignment Day of Operations delivery & recovery Profit protection Revenue stream

7. Given our recent experience, revised structure and the challenge to return the company to a viable unit how could the IOC contribute to that goal ……. Question …... By using our skills and systems to host other airline operations control functions in a specialist IOC centre of excellence…….

8. Conclusions….. Operations Centres are process & increasingly systems dependent Today’s operational change requires increased “ops” flexibility Processes need to be integrated across whole organisation from schedule design to schedule delivery regardless of timeline Problem solutions are complex & often time constrained Decision support systems rely on human “interpretation” of all data Operations Centres manage information, co-ordinate resources and set priorities Historically IOC are considered cost centres

9. IOC Airline “Hosting” - why not? Airline Reservations Inflight catering Maintenance Ground handling Cargo Precedent already set in other areas by the industry itself! Operations Centres are already centres of excellence and have the skill sets and capacity to offer services to other airline customers

10. What does “hosting” mean? Hosting can span from systems to everything required to support airline operations: Bureau: Services & Systems Services Process People

11. Maintenance tracking/scheduling Scheduling System Flight Planning/Watch Flight Dispatch System Operations Control DOPS System Crew Pairings Crew Pairings System Crew Rostering Roster System Crew Tracking Crew DOPS System FreedomAWASLinksAir NZ Ops Processes & Systems Airlines Hosted in NZ IOC

12. AGIFORS Airline Operations Rome 20 - 24 May 2002 Thank you.