SMS Sans Frontières – presentation to AsBAA Shanghai and FSF BASS San Diego

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. Introduction • 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

3. Greetings from Metrojet’s CSQ Team

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

5. One Aircraft Delivery To Asia Pacific Every Three Days for the next 10 Years Northeast Asia 90 Business Jets US$2.9bn • 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 China 635 Business Jets US$21.0bn Southeast Asia 217 Business Jets US$6.1bn Oceania 263 Business Jets US$6.0bn Source: Embraer Analysis – totals may differ due to rounding – sustained growth scenario

6. Infrastructure to Support Business Aviation? USA China • 14’000 Business Jets • >5’000 public use airports • >51 airports per 100,000 km2 land • 1.2million jobs • 150 USD billion economic output • 360 Business Jets (Greater China) • 190 public use airports • Over 110 military only airports • 1.6 airports per 100,000 km2 land • Only 6business jet MROs Circle Size indicates the number of aircrafts based at a location Sources: - US Figures: NBAA - China Figures: Asian Sky Group, Metrojet Research

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

8. The fleet grows steadily 42%fleet increase since 2010

9. Metrojet’s Aircraft Maintenance Facilities In Asia • 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 ft2 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 ft2 of hangar space • India – Mumbai • - Joint venture with Taj Air to form TajAir Metrojet Aviation • - Aircraft maintenance capabilities

10. Common perception in business aviation

11. Crossing the frontières through 4 pillars of Safety management Leading Business Aviation company in Asia 1 Customer 2 Product 3 People 4 Operations 5 Finance Safety Policy and Objectives Safety Assurance Safety promotion Safety Risk Management Best People ◦ Highest Standards ◦ Operational & Service Excellence

12. CHALLENGES – SMS Pillar One • 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 Pillar Two 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

14. Metrojet’s Operational Risk Picture using Bow Tie analysis • Existing recovery barriers • Root Cause, Contributing factors and initiating event • Existing defences • ALARP • Outcome • Undesirable state

15. Metrojet’s risk assessment criteria 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 Pillar three 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. Metrojet’s Safety Balanced Scorecard

18. CHALLENGES – SMS Pillar Four 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. Promoting safety through growth • Theme of the 2-months • Safety Digest • Making use of IT Platform • Safety Mascot Competition

20. 2013-2014 SAFETY MASCOT COMPETITION

21. The cultural challenges

22. Train, train, train

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

24. As an industry, what can we do? • 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. Conclusion • 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

26. Finally BUSINESS AV SAFETY