SAFETY MANAGEMENT WITH THE YOUNG DRAGONSPRESENTED TO CASS 2012

Roger LeeDirector of Corporate Safety and Quality

18 April 2012

INTRODUCTION

The Company

Growth of the business aviation dragons in Asia

The safety challenges and the opportunities

How is Metrojet managing these challenges?

Looking forward

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ABOUT METROJET

Established in 1995. 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.

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ABOUT METROJET

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Workforce of 300+ Over 100 maintenance professionals70+ pilots40+ flight attendantsFlies 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

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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

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KEY RISKS IN BUSINESS AVIATION - ASIA

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.”

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OUR 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

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POTENTIAL HAZARDS (300)

MINOR INCIDENTS (29)

WHAT IS SAFETY MANAGEMENT TO METROJET?

FATAL ACCIDENT (1)

SAFETY POLICY – OUR STARTING POINT

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Excellence Best Practice

CultureHighest Standard

Consistent Communicated

CEO

Senior Management Commitment

Every employee

Continuous Improvement

Front line staff supported by managersNon-punitive

Independent CSQD Just

All staff’s duty to safety reportWillful misconduct

unacceptable Reviewed every 2

years

LEADING BUSINESS AVIATION LEADING BUSINESS AVIATION COMPANY IN ASIACOMPANY IN ASIA

Safety Policy Safety Policy and Objectivesand Objectives Safety Safety

AssuranceAssurance

Safety Safety promotionpromotion Safety Risk Safety Risk

ManagementManagement

Best People Best People ◦ ◦ Highest Standards Highest Standards ◦ ◦ Operational & Service Excellence 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

THE 4 PILLARS OF METROJET’S SMS

PILLAR 1 - SAFETY POLICY AND OBJECTIVES

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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

PILLAR 2 – SAFETY ASSURANCE

Performance monitoring and

measurement - KPIs

Audits and Surveys

Management of change/ deviation

GOAL: Continuous Improvement…………

PILLAR 3- SAFETY PROMOTION

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Communicate SafetyTrain and educateBuilding our safety cultureTo provide you with a SMS framework and basic principles that you can customise to meet the needs of your departmentWhose responsibilities in these promotion/training?

PILLAR 4- RISK ASSESSMENTS CRITERIA

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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 STRUCTURE

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CSQD Core Team – the machine

MSO FSO CSO FDM Flt Ops “gatekeeper”

Our clients and partners : CEO, Senior Management, Department Heads, staff, customers

WHAT DOES SAFETY MEAN TO US?

SUMMARY

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

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THANK YOU

Questions and Answers

Roger.lee@metrojet.com

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