1. B OARD P RESENTATION 2006 Group 8 Dickson CHAN / Michelle CHONG / Jonathan WONG / Karen WONG

2. Presentation Outline Introduction Aircrew Resource Airport Resource Contingency Plan Maintenance Summary + Questions

3. Introduction Where we fly? SYD, MEL, HKG & STN What we are? - Fleet of 6 x Boeing 767-200ERs - All business class cabin - 100 passengers - 7 Flight Attendants London (STN) Sydney (SYD) Melbourne (MEL) Hong Kong (HKG) HKG/SYD: 7 per week HKG/MEL: 7 per week HKG/STN: 12 per week Frequencies

4. Aircrew Resource Sydney (SYD) Melbourne (MEL) Hong Kong (HKG) London (STN) Options include: Sydney / Melbourne / Hong Kong / London Crew Base * Basing at HKG will reduce outport hotel room numbers by 46%

5. FLIGHT CREWCABIN CREW Roster Period Length28 days Max. Hours per Roster78.26 Flight Hours125 Duty Hours Max. Planned Duty Length12:45 (3 pilot crew)17:00 17:00 (4 pilot crew) Annual Leave per year42 Days Training Days per roster1 Day Guaranteed Days Off per Roster9 Days Min. Rest @ Outport12-24 hours Min. Rest @ Home Base18-72 hours Aircrew Resource Work Rules

6. Aircrew Resource Flight Patterns PatternLengthFlight Hours Duty Hours Average Stick / Days Away Premium HKGSTN14 25:0029:00 6.2516.0% HKGSTN246.2516.0% HKGSTN355.0016.0% HKGSTN464.1716.0% HKGSYD13 18:3022:30 6.1721.6% HKGMEL136.1721.6%

7. Aircrew Resource Key Performance Indicators EstablishmentUtilisationReservePremium Captain3689.7%26.9%43.1% First Officer7289.7%26.9%43.1% Second Officer2279.0%58.3%41.0% Total Flight Crew13087.9%31.1%33.5% Inflight Services Manager3379.1%26.9%32.0% Flight Attendant17788.2%13.5%25.3% Total Cabin Crew21086.8%15.4%26.3% Cabin crew premium is 10.2%point lower than Australian Airlines

8. Airport Staff Resource Basic Work Rules Maximum 160 hrs per roster Minimum 48 hrs per roster 8 days off per roster Annual Leave is 5 weeks per year Sick Leave is 6 days per year

9. Expected seat factor = 70% B767-200 – 100 seats Distribution(%) x no. of pax = Passenger Arrivals Passenger Arrival Patterns Time before check-in close Distribution (%) 2:450 2:301 2:153.5 2:003.3 1:456.7 1:3012 1:1510.1 1:0018.8 0:4522.9 0:3018.3 0:152.3 0:001.1 TOTAL100 Airport Staff Resource

10. Staff Required Service Standard: 2min 7 pax served every 15min Check-in 3 pax = 3/7 = 1 staff Check-in 9 pax = 9/7 = 2 staff Check-in 17pax = 17/7= 3 staff Passenger Arrival Patterns (2) Airport Staff Resource Arrival Pattern at MEL TimeNo. of PaxStaff Required 1130 114500 120011 121531 123031 124541 130082 131582 1330132 1345153 1400122 141521 143011 1445

11. Airport Staff Resource Example: HKG Arrival Pattern

12. Airport Staff Resource Shifts 8-hours shifts & 4-hours shifts 3 staff x 8 hours x 7 days = 168 man hours [2 staff x 8 hours x 7 days] + [1 staff x 4 hours x 7 days] = 140 man hours. Only rostered in staff that are needed Keep staff busy Lowest costs solutions

13. Airport Staff Resource Example: SYD & HKG Roster SYD HKG

14. Contingency Plan Major Goals of Contingency Planning To restore the originally scheduled service as soon as possible To mitigate the impact of disruptions on passengers and provide them with the best alternative To retain the minimum amount of resource and compensation

15. Contingency Plan Action must be takenStatusAlarm Colour Within the next 2 hoursUrgentRed Within the next 2-5 hoursHighYellow Within the next 5-10 hoursLowGreen Event Status Level Sign on the duty Standby ground staffwithin 60 mins Standby flight and cabin crewswithin 90 mins

16. Contingency Plan Case Study Hong Kong to Stansted YK001 departs at 00:30 Due to technical problems, the aircraft has to fly back to HKG for maintenance

17. Contingency Plan Case Study – Possible Scenario Scenario I: Take-off again after 5 hours delay Scenario II: Cancellation of YK001

18. Contingency Plan Case Study – Ground Staff Arrangement No standby will be used in this case study as it is not efficient to handle the passengers Friday in week 3 Pattern lineSign on dutySign off duty Original duty time (hours) Overtime (hours) SUP1 A 18:002:0084 ASO1C 19:000:0056 ASO2B 18:0022:008N/A ASO3X N/A ASO4C 19:000:004N/A ASO5D 22:002:0044 ASO6X N/A ASO7R 02:0006:00N/A TOTAL 14

19. Contingency Plan Case Study – Flight & Cabin Crew arrangement Swapping over is one of the features to provide flexibility

20. Contingency Plan Case Study – reallocation of passengers Solution 1: Allocation passengers in Plaza Premium Lounge in Hong Kong International Airport Solution 2: Book passengers in the next available flights and provide accommodation in nearby hotel

21. Maintenance Introduction 6 x Boeing 767-200ERs with GE CF6-80C2 engines Additional ETOPS requirements Maintenance: not part of the core business Balance between maintenance service quality and costs Monthly review of reliability and performance

22. Maintenance Line Maintenance (SYD, MEL, HKG & STN) 1hr 50min – 2hr 30min 4 x 24hr maintenance blocks HONG KONG 8hr 30min MELBOUNRE 7hr 30min SYDNEY Line Maintenance Provider Aircraft Ground Time Port 17hr 30min (YK001>YK012) 18 hr (YK011>YK002) STANSTED

23. Maintenance Heavy Maintenance Outsourced to TAECO (Xiamen, China) Aircraft has to be ferried from Hong Kong 767-200ER offline for 4-5 weeks Schedule-changes or dry-lease a 767-200ER D-checks will be scheduled during low-season

24. Maintenance Engine Overhaul & Maintenance Hannover (Germany) Amsterdam (The Netherlands) Sydney & Melbourne (Australia) Workshop location Maintenance, Repair & Overhaul for General Electric CF6-80C2 engine Frankfurt (Germany)

25. Business model proven in the Trans-Atlantic market Applying this model on our market, avoiding Ozjet’s mistakes Profit of $21.1 million AUD (NS06, before interest and tax) Operating Ratio: 113.4%, Gross Profit Margin at 11.8% Breakeven SF (66.9%); PAX SF (75.9%) Aircraft Utilisation: 14.7 hrs per day Fleet Planning: Acquiring additional BBJ2s for new routes 2 x 767-200ERs for London to Hong Kong Summary