1. Customer survey Focus on needs expressed by customers

2. Forwarders have clearly expressed their interest for good rates and global reach but also value quality of service Since offering lower rate and global reach are key differentiators in their market, forwarders clearly expressed their interest in getting goods prices and global network  « Competition is fierce…you need to align on the lowest rate to get the business » Transglobal  « Line haul is more than 70% of our costs so no wonder we squeeze airlines as hard as we can » Geodis Wilson  « Our business is network driven, if you do not have a global reach you can only adress part of your client needs » DGF  « It is expensive for us to deal with a large number of carrier, we would like to deal with 10 preferred carriers » UPS But quality of service is also crucial in the final choice of the airline both for big accounts and some local customers  « For global customers, it is important to get the same quality of service and the same processes from any point of the globe » Expeditors  « We choose them because we have been working for 15 years with them, relationships are good and to a certain extent it is more important than rates » AIF shangai And most interviewees are willing to developp partnerships with AF-KL  « We have several joint ventures / partnerships with airlines and they work very well in improving processes and reducing costs » DGF  « I wish we could make more deals together » CEVA 01

3. Main needs expressed concern improved communication and flown as planned Communication and merchandise tracking is the main need expressed by almost all clients  « They should notify us when a shipment is not sent so that I can arrange the pick up better » TNT Post  « The worst problem at CDG was communication » NIPPON  « We used to work with Air France but there is hardly any communication when things go wrong and it is not perishable- friendly to wait on the tarmac » Airfoldt  « The worst thing that can happen is that my shipment does not get on board and they don’t tell me » TNT From a more general perspective, customers appreciate the relationship with AF-KL staff but would like them both to focus more on their needs and to develop a more efficient process to solve their operational issues  « There has always been reliable people at KAM willing to help and get things right but they do not have the power to solve issues due to their organization » CEVA  « Relationship are good and to a certain extent it is more important than rates » AIF Shangai  « They know their customers intimately » CEVA  « They do not have the knowledge. They should work with customers more closely on operational needs » Kuehne Nagel Forwarders insists on the improvements to be made in terms of flown as planned and transit time  Transit time matters -« What matters is that the shipment is delivered on time » SDV -« For postal services, transit time is still too long » TNT post  But most companies expect a flown as planned commitment -« Air France offloads our dimensions shipments when they have higher yield. That leads to many logistics problem on our part » CEVA -« We want our merchandise to be on the flight as promised » Kuehne Nagel

4. Opportunities for processes alignment, new binded traffic agreements and mixed teams also point out in the interviews Processes alignment, in particular as concerns IT solutions appear to be a key stake for forwarder  « The important thing is to get the same quality of service and same processes from any point of the globe » Expeditors  « Ability to collaborate and build solutions to improve overall cost and efficiency will be key in the future. I believe there is no future for forwarders if they do not work closely with a small number of airlines and really integrate their IT » Rhenus Many forwarders expressed their interest in developing « binded traffic agreements »  « British Airways, Emirates and also Martinair are very good in working with us on a global level. For example, we will ask for extremely low rates to get customers out of Asia and in return we offer them support to fill some of their more difficult routes » CEVA  « We want to develop this kind of deals » DGF Some companies have mentioned direct access to the operation field as a possible improvement  « A real step forward would be that airlines let us have a K+N person with ability to navigate with the goods on the operation field and solve issues when needed » Kuehne Nagel

5. Shippers are willing to collaborate more as they appreciate AFKL quality of service Direct contact with airline is perceived as beneficial but time consuming  « We know we could benefit from having direct access to airlines but we cannot invest in it due to the lack of means » Flextronics  « In ocean freight, we tend to have direct contact with companies but in air freight, deals still are better when they are signed with forwarders » HP Communication towards shippers is weak and they is no clear differentiation between airlines for shippers  « We do not see between airlines difference in term of service but only in term of pricing » LVMH Still some companies that have worked with AF appreciate the communication with the company  « AF KL is very collaborative, we appreciate the high level of flexibility and responsiveness to problems » HP  « We appreciate working with AF KL because they are very consistent in offering good quality and very proactive in engaging direct contact with us » Wolkswagen