1. 0 Feb 2009 Storage Charges update Storage fees are standard for on airport warehouses GSOP ACA bond management provides billable storage amounts to all AP billing systems Charging storage encourages customers to engage the clearance process Storing shipments is a cost to the business Inventory, tracing and follow up Customers incentivized to use us for free storage Storage goes directly to the bottom line Implementation is simple

2. 1 Current Status No current plans to charge for storage Automation not used, manual calculation, admin overhead Fully implemented or scheduled 3.5.1 AP Upgrade approved by PPRB All CN live from 1 Feb HK – May MY 2 Mar, TW 16 March HHP

3. 2 Revenue Storage Charge revenue from IAS was 1.04m EUR in 2008* * Estimated unbilled storage was 2.4m EUR in 2008

4. 3 Current charge regimes CN implemented from 1 Feb

5. 4 Deployment Notes New charging COs are setting longer free periods (7 days including free weekends) which moves the revenue baseline downwards

6. 5 Revenue Per Mo SC interfaced to billing systems from IAS IAS Interface report for charge code SC with COs using storage automation

7. 6 Revenue Opportunities Est Rev PA for COs not charging storage *Note – based on total AP SC revenue divided into shipments >72 hrs to clear for COs billing storage. The per hawb SC amount is then applied to non SC charging COs >72 hour clearance as an indicator of potential revenue Based on avg rev/stored shipment for COs charging X shipments > 72 hrs clearance from SMART COA. (>72 hrs + No Clearance) X Avg RPS SC for COs with Storage Charges There is 1.15m EUR of unbilled potential storage revenue in 2009

8. 7

9. 8 Risks and issues Free Days Holiday Charges Minimum Write off Per Kg AdvantagesRisksRecommendation Reduces storage period disputes Allows customer some time to provide paperwork Aligns with apt cargo warehouse Standards Allows for time when formals often cant be cleared due to Customs hours Loss of revenue Combined with holiday & weekend can result in long free periods 2 days free. Higher if all other cargo warehouses are No charge for holidays Charge for weekends Assured revenue minimum Provides avenue for dispute resolution Must have audit trail Clear guidelines 5 EUR / day unless ACW*s charge less 0.05 EUR Kg/Day unless ACWs charge less 100% write off in the event of a DHL clearance Error or delay in cargo arrival notification *ACW = Airline Cargo Warehouses

10. 9 Risks and issues Charge Codes Local Policies AdvantagesRisksRecommendation COs can maintain current Local reporting Revenue difficult to track Added headcount to create receivable Inability to view in CREST going forward Use already in-built standard charge codes in IAS Set regional floor on Parameters. Allow COs to exceed, but not go below Stay in line with local market Support local reporting *ACW = Airline Cargo Warehouses Inconsistency of image to customers Difficulty of implementing change Implement consistently No additional headcount or new operations procedures Lay groundwork for more cost recovery in future Use same work instructions everywhere while allowing rate variances above a regional floor

11. 10 Next Steps Draft Policy & work instructions Finalise policiesRO GSOP Review system setupsCO Ops Programs / IT Agree Revenue reporting (Use IAS to report or report in CREST) Communicate to Ops Notify broker turnovers via handouts Commercial Customers Finance Revenue reporting,set up of IAS code and SAP/LAS mapping *ACW = Airline Cargo Warehouses IT Set up SC standard storage charge in all IAS/ACA instances (Done) Reset Storage charge interface flag in CO ACA Configure invoices to print SC on invoices 6088Misc Other income321940Other miscellaneous income

12. 11 Next Steps – Phase 2 Other non core cost recovery Review success of program at year end CO revenue reports Charge structure Revisit structure and increase fees (reduce free days, increase minimums, raise per kg rate?) Add fees for other non core cost drivers Personal Effects clearances Broker and documentation turnovers Within the existing systems and processes we have today *ACW = Airline Cargo Warehouses

13. 12 Issues – Storage Charges oSystem capability oAdministrative and clerical work oPayment Dispute oCustomer queries ACA & IAS automate this calculation. No added headcount is required Create a fair & equitable charge structure that defuses common challenges Notify prior to start via handouts at collection counters and mail

14. 13 What is a Storage Charge? The amount charged for storing a shipment in bond. (# Days – Free days*) X (Kgs X Unit Fee) Specific credit accounts can be exempted Fee can be written off ACA IAS GL Billing *Day 0 counts as 1 day