SAFETY MANAGEMENT WITH THE YOUNG DRAGONS PRESENTED TO CASS 2012 Roger Lee Director of Corporate Safety and Quality 18 April 2012

I NTRODUCTION The Company Growth of the business aviation dragons in Asia The safety challenges and the opportunities How is Metrojet managing these challenges? Looking forward 2

A BOUT M ETROJET Established in Part of the Kadoorie Group and a sister company of The Peninsula Hotels Leading operator and maintenance provider of business jets in Asia and pioneered business aviation services in Hong Kong. Awarded an Air Operator’s Certificate by Hong Kong Civil Aviation Department in June 1997 for public transport operations. Provides a complete range of business aviation services: aircraft charter, aircraft management, aircraft maintenance service, aircraft co-ownership programs and aircraft acquisition and sales. 3

A BOUT M ETROJET 4 Workforce of 300+ Over 100 maintenance professionals 70+ pilots 40+ flight attendants Flies to any destination in the world at the time required by the client throughout the year

WHAT DOES A MATURED BUSINESS AVIATION MODEL LOOK LIKE? Business aviation contributes US$150 billion annually to US economy Over 1.2 million people employed 9,635 aircraft currently, 11,300 expected in 2019 Slow growth rate of 2% per annum Over 5,000 public-use airports Home to 68% of the worldwide business jet fleet 5

THE BUSINESS AVIATION MODEL IN ASIA IS YOUNG 870 aircraft currently, 2,845 expected by 2019 High growth rate of 20% per annum in China Home to 6% of the worldwide business jet fleet China - around 150 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. Private jets in Asia are more for personal use rather than corporate 6

K EY R ISKS IN BUSINESS AVIATION - A SIA Sourcing and retaining competent and experienced pilots, engineers and support staff Lack of regulatory understanding of business aviation Nature of business aviation – discrete and private – how can an open and transparent safety culture compliment this unique nature? Customers are not educated in the safety and security risks with regards to running a business jet Culture Peer-effect is key – “My friend owns a private jet so I better own one too.” 7

O UR JOURNEY IN ESTABLISHING A SMS 2007 – started the building blocks of SMS Amalgamating the Operations Manual suite with various SMS elements 2009 January – Metrojet’s SMS was fully certified by HKCAD 2011 – Certified with International Standard for Business Aircraft Operations (IS-BAO) ICAO DOC 9859 and other documents as “guides” only – our aim is to make these documents “live” in Asia 8

POTENTIAL HAZARDS (300) MINOR INCIDENTS (29) W HAT IS SAFETY MANAGEMENT TO M ETROJET ? FATAL ACCIDENT (1)

SAFETY POLICY – O UR STARTING POINT 10 Excellence Best Practice Culture Highest Standard Consistent Communicated CEO Senior Management Commitment Every employee Continuous Improvement Front line staff supported by managers Non-punitive Independent CSQD Just All staff’s duty to safety report Willful misconduct unacceptable Reviewed every 2 years

LEADING BUSINESS AVIATION COMPANY IN ASIA 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 1 We offer Best in Class Services 2 We deliver a 6 Star Product 3 We are the Employer of choice 4 Our operation is safe, professional and consistent like a Swiss watch 5 We are profitable and offer sustainable growth T HE 4 PILLARS OF M ETROJET ’ S SMS

P ILLAR 1 - S AFETY P OLICY AND O BJECTIVES 12 COMPANY SAFETY POLICY Management Commitment and responsibility Safety accountability of managers Appointment of key safety personnel Coordination of Emergency Response Planning Documentation OUTPUTS: Safety Review Board, Safety Action Groups Role of Safety Officers and CSQD team SMS Manual and related documentation Cooperative responsibility

P ILLAR 2 – S AFETY A SSURANCE Performance monitoring and measurement - KPIs Audits and Surveys Management of change/ deviation GOAL: Continuous Improvement…………

P ILLAR 3- S AFETY P ROMOTION 14 Communicate Safety Train and educate Building our safety culture To provide you with a SMS framework and basic principles that you can customise to meet the needs of your department Whose responsibilities in these promotion/training?

P ILLAR 4- R ISK ASSESSMENTS CRITERIA 15 Meaning in relation to People/life costs Meaning in relation to financial/Property costs Meaning in relation to image costs Meaning in relation to Liability Cost Meaning in relation to Environmental Cost

SMS ORGANISATIONAL S TRUCTURE 16 CSQD Core Team – the machine MSOFSOCSO FDM Flt Ops “gatekeeper” Our clients and partners : CEO, Senior Management, Department Heads, staff, customers

W HAT DOES S AFETY MEAN TO US ? Flight operations safety (HK(AN)O, CAD360, CAD 371, CAD382 etc) Occupational Health and Safety (Labour laws) Airworthiness safety (HK(AN)O HKAR-1, HKAR-145 etc)

S UMMARY With growth comes risks – which must be managed in a systematic and structured manner Trend identification is a key part to any Safety Management system A solid safety culture led by the top is critical for any facet of safety Even there are no regulation or direct governance on your facet of safety, do what is right Take our responsibility as the pioneer in the region and work with others to set the realistic and implementable benchmarks in business aviation for the region You learn everyday 18

T HANK Y OU Questions and Answers 19