LEIAAI 5-YEAR PLAN I.LEIAAI IN CY-2014 II.ENVIRONMENT SCAN III.5-YEAR PLAN A.Assumptions B.Broad objectives C.Specific objectives D.Program/project/activities E.Financial plan F.5-year plan

LEIAAI IN CY-2014

STUDENTS TRAINED (Jan – Apr 2014) PARTICULARSNUMBERCOMPLETEDVARIANCE Old Students – Jan 1, (160 HRS)40 New students – Jan to April * * 19 – Zero time 7 – CPL/IR 26 ===

PROGRAMMED FLYING HOURS  CURRENT NUMBER OF C172 AIRCRAFT = 9  OR RATE OF 80% = 7  HOURS PER SORTIE = 1.5  SATURDAYS – RESERVED FOR MAINTENANCE & RECOVERY C172 AIRCRAFT

Jan-April 2014 net profit: P.224M

ENVIRONMENT SCAN 1.World Bank forecast the Philippines to grow to 6.4% in This is within the NEDA’s target of 6.5 to 7.5 percent growth rate for the same period (NEDA); 2.Central Bank (CB) approved 243 new banking offices – “concrete sign of health and vitality of the banking system that supports our growing economy” according to CB deputy governor (Business Intelligence);

3. On aviation industry for the next 8-10 years. Asia and the Middle East will be the growth area. More than 1/3 of all current aircraft orders and more than ½ the wide body orders are from Asia and ME (Aviation Exchange); 4. Honeywell Aerospace Business aviation outlook forecasts $200 Billion in global business aircraft sales through The Asia, Africa, and Middle East regions still rank as the areas with the highest purchase expectations despite the effects of the global recession (Honeywell);

5. Asia-Pacific needs 182,300 pilots from Of this number, South East Asia will require 47,100 pilots and 60,600 technicians; 6. Airbus sees market of 27,800 aircraft in next 20 years. The Asia-Pacific region will account for 34% of new aircraft. Airbus to build 50 A320s a month to meet demand; 7. PAL has placed an order for 55 more aircraft worth $7 billion—the largest aircraft purchase in Philippine history. A has recently been delivered. They will need 100 pilots a year (Mr Mathew Tamaray – OIC, PAL Aviation School);

8. Cebu Pacific will acquire 55 aircraft (A320 & A320neo worth $ 3.8B between, 2011 and Five (5) A320 have been delivered in the last quarter of 2011 (cebusmile.com); 9.Air Phil Express to acquire 20 aircraft in next 3 years; 10.Pilot shortage grounds some local flights; 11.Competitors: about 45 local flying schools will be pruned by CAAP to address quality of pilot training.

A. ASSUMPTIONS 1.CAAP will be stricter in regulating flying schools; 2.Reduction in the number of flying schools; 3.Intense competition among the flying schools; 4.Demand for aviation-related training will increase for both domestic and foreign settings.

B. BROAD OBJECTIVES 1.To establish LEIAAI as a profitable business venture; 2.To develop LEIAAI as a premier pilot training institution; 3.To offer a broader range of aviation-related trainings; 4.To instil high standards of training; 5.To develop a sustainable employees welfare program.

C. SPECIFIC OBJECTIVES 1.To streamline operations and improve its profitability; 2.To improve fleet operations, maintenance, marketing programs, and records management systems; 3.To acquire additional aircraft and other support and training equipment as necessary; 4. To invest on its safety programs and security requirements; 5.To prepare for the expansion & improvement of training facilities;

6. To professionalize LEIAAI management through continuous education and training and recruitment of skilled managerial and technical personnel; 7. To rationalize the need for additional manpower to manage and support its operations; 8. To improve on the employees’ welfare program; 9. To expand CSR programs and linkages with other entities of similar interest and support community projects within resources C. SPECIFIC OBJECTIVES

10. To operate and maintain 80% (12) OR of 15 training aircraft and 3 flight simulators with its equipment & accessories 11. To perk up marketing and promotions by targeting minimum of 57 for Year 1 and maximum of 80 students in succeeding years for flight training operations; 12. To accomplish max of 16,000 flying hours per year; 13. To target 50 students for 2014 and a maximum of 100 students for the succeeding semesters for Aviation Maintenance Technician Course; C. SPECIFIC OBJECTIVES

14. To establish, operate and maintain an engine overhaul and avionics shops; 15. To generate a consolidated minimum net income of P15 Million a year from its operations; 16. To engage in other trainings such as Avionics course and Flight Attendants/Crew training 17. To enhance marketing strategy and income generations through tie-up, partnership, and other similar arrangement with aviation training institutions, local and foreign; C. SPECIFIC OBJECTIVES

18. To conduct one (1) regular quality management seminar yearly and participate in other aviation related education and training activities required by international and government authorities; 19. To standardize a fleet of training aircraft for commonality of systems, procedures, spare parts, tools and equipment C. SPECIFIC OBJECTIVES

5-YEAR PLAN

5-YEAR PLAN – Presented on Nov 2013 PPA Personnel & Admin Svc a. Personnel Services b. Marketing Aviation Training a. Pilot Training b. Maintenance Training50100 c. Satellite Training Area Maintenance & Logistics a. Aircraft12 b. Simulator e. Training/Seminar Safety & Quality2 5. Capital Outlay a. Aircraft b. Simulator1 c. Mobility11 6. Net Profit P15M 7. Total Asset

5-YEAR PLAN - REVISED PPA2014 ACTUAL Jan –Apr Personnel & Admin Svc a. Personnel Services b. Marketing Aviation Training a. Pilot Training b. Maintenance Training c. Satellite Training Area Maintenance & Logistics a. Aircraft b. Simulator e. Training/Seminar Safety & Quality Capital Outlay a. Aircraft222 b. Simulator11 c. Mobility Net Profit P15M 7. Total Asset