BOARD PRESENTATION 2006

Group 8 Dickson CHAN / Michelle CHONG / Jonathan WONG / Karen WONG

Presentation Outline

Introduction

Aircrew Resource

Airport Resource

Contingency Plan

Maintenance

Summary + Questions

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

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%

FLIGHT CREW CABIN CREW

Roster Period Length 28 days

Max. Hours per Roster 78.26 Flight Hours 125 Duty Hours

Max. Planned Duty Length 12:45 (3 pilot crew) 17:00

17:00 (4 pilot crew)

Annual Leave per year 42 Days

Training Days per roster 1 Day 1 Day

Guaranteed Days Off per Roster

9 Days 9 Days

Min. Rest @ Outport 12-24 hours

Min. Rest @ Home Base 18-72 hours

Aircrew Resource Work Rules

Aircrew Resource Flight Patterns

Pattern Length Flight Hours

Duty Hours

Average Stick / Days

Away

Premium

HKGSTN1 4

25:00 29:00

6.25 16.0%

HKGSTN2 4 6.25 16.0%

HKGSTN3 5 5.00 16.0%

HKGSTN4 6 4.17 16.0%

HKGSYD1 318:30 22:30

6.17 21.6%

HKGMEL1 3 6.17 21.6%

Aircrew Resource Key Performance Indicators

Establishment Utilisation Reserve Premium

Captain 36 89.7% 26.9% 43.1%

First Officer 72 89.7% 26.9% 43.1%

Second Officer 22 79.0% 58.3% 41.0%

Total Flight Crew 130 87.9% 31.1% 33.5%

Inflight Services Manager 33 79.1% 26.9% 32.0%

Flight Attendant 177 88.2% 13.5% 25.3%

Total Cabin Crew 210 86.8% 15.4% 26.3%

Cabin crew premium is 10.2%point lower than Australian Airlines

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

Expected seat factor = 70%

B767-200 – 100 seats

Distribution(%) x no. of pax

= Passenger Arrivals

Passenger Arrival Patterns

Time before check-in close

Distribution (%)

2:45 0

2:30 1

2:15 3.5

2:00 3.3

1:45 6.7

1:30 12

1:15 10.1

1:00 18.8

0:45 22.9

0:30 18.3

0:15 2.3

0:00 1.1

TOTAL 100

Airport Staff Resource

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

Time No. of Pax Staff Required

1130

1145 0 0

1200 1 1

1215 3 1

1230 3 1

1245 4 1

1300 8 2

1315 8 2

1330 13 2

1345 15 3

1400 12 2

1415 2 1

1430 1 1

1445

Airport Staff Resource Example: HKG Arrival Pattern

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

Airport Staff Resource Example: SYD & HKG Roster

SYD

HKG

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

Contingency Plan

Action must be taken Status Alarm Colour

Within the next 2 hours Urgent Red

Within the next 2-5 hours High Yellow

Within the next 5-10 hours Low Green

Event Status Level

Sign on the duty

Standby ground staff within 60 mins

Standby flight and cabin crews

within 90 mins

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

Contingency Plan Case Study – Possible Scenario

Scenario I: Take-off again after 5 hours delay

Scenario II: Cancellation of YK001

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 18:00 2:00 8 4

ASO1 C 19:00 0:00 5 6

ASO2 B 18:00 22:00 8 N/A

ASO3 X N/A N/A N/A N/A

ASO4 C 19:00 0:00 4 N/A

ASO5 D 22:00 2:00 4 4

ASO6 X N/A N/A N/A N/A

ASO7 R 02:00 06:00 N/A N/A

TOTAL 14

Contingency Plan Case Study – Flight & Cabin Crew arrangement

Swapping over is one of the features to provide flexibility

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

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

Maintenance Line Maintenance (SYD, MEL, HKG & STN)

1hr 50min – 2hr 30min4 x 24hr maintenance blocks

HONG KONG

8hr 30minMELBOUNR

E

7hr 30minSYDNEY

Line Maintenance ProviderAircraft Ground TimePort

17hr 30min (YK001>YK012)18 hr (YK011>YK002)STANSTED

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

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)

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