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IMPROVING AIR CARGO THROUGH DATA INTELLIGENCE SUPPLY CHAIN CONFERENCE - BIG DATA IN LOGISTICS

Alban FRANCOIS – Vice President Cargo

Brussels – 22 Nov 16

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19

Key dates

2005-2006

2012

2009

2002

2013-2016

• Creation of SN Brussels Airlines following Sabena bankruptcy

• Merger Virgin Express – SN Brussels Airlines to become Brussels Airlines

• Entry of Lufthansa in capital (45%) • Entry into Star Alliance

• Heavy restructuring (Plan Beyond 12/13)

• Continuous transformation of the company to build a new “no comprise” business model

Direct jobs

3.500

7,5 Mio

Passengers Turnover

€1,27 bn

Aircraft

49 Destinations 95

Key numbers

Shareholding structure

Africa hub

Indirect jobs

>10.000

Tonnage

>40.000

Brussels Airlines in a nutshell

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New set of products adapted to guest needs

Focus on loyalty

All translated in modern brand

Focus on our guests

Development of partnerships building on the Belgian touch

Investments in service & tools

2014 – 2016: Building a new Brussels Airlines

Click to edit title. ON THE ROAD TO OUR 2018 AMBITION…

2013 2014 2015 2018

€1.1 bn €1.2 bn €1.27 bn €1.5 bn Revenue

5.9 Mio 6.7 Mio > 7 Mio 10 Mio Guests

67.4% 71.9% 75.4% 80% SOF

- €22Mio - €4 Mio €41.3 Mio >€50Mio Profit

…

Click to edit title. BRUSSELS AIRLINES CARGO MISSION STATEMENT

WE GO THE EXTRA SMILE. We want to be the preferred air cargo provider across our network, known for its reliable service & flexibility. Going beyond filling our bellies, we focus on delivering the right solution to our customers.

Click to edit title. THE AIR FREIGHT ECOSYSTEM

FACT 1: AIR FREIGHT IS ABOUT SPEED

AIR FREIGHT REPRESENTS 1% OF WORLD TRADE VOLUMES FOR 35% OF VALUE

Click to edit title. THE AIR FREIGHT ECOSYSTEM

FACT 2: AIRLINES NEED HIGH LOAD FACTORS TO ALLOW PROFITABILITY

DESPITE BEING A GROWTH SECTOR, THE GLOBAL AIRLINES PROFITS ARE LOW

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FACT 1: AIR FREIGHT IS ABOUT SPEED NEED FOR 100% FLY AS BOOKED

FACT 2: AIRLINES NEED HIGH LOAD FACTORS TO ALLOW PROFITABILITY

NEED FOR OVERBOOKING TO COVER « NO SHOWS »

INTRODUCING OUR PARADIGM

Click to edit title. CARGO CAPACITY FORECASTING & YIELD MANAGEMENT

IT’S ABOUT FORECASTING TOMORROWS CAPACITY BY PREDICTING (RANDOM) EXTERNAL FACTORS USING TREND ANALYSIS

WHILE CONTINUOUSLY IMPROVING THE MODEL

D-x D

Click to edit title. PARAMETERS IMPACTING THE CAPACITY DEFINITION

FOR LONG-TERM STRATEGY FOR SHORT-TERM FLIGHT PREDICTION

MARKET EVOLUTIONS

PASSENGER EVOLUTION

FUTURE AIRCRAFT PERFORMANCES

EVOLUTION OF FREIGHT CHARACTERISTICS

FINANCIALS INDICATORS

AIRCRAFT SHORT-TERM SCHEDULING

PASSENGER FIGURES

INCL. PREDICTION OF NO SHOWS

LUGGAGE WEIGHT & SPACE

CARGO BOOKING ACCURACY

INCL. PREDICTION OF NO SHOWS

WEATHER

FUEL QTY

Click to edit title. HOW DO WE GO THE EXTRA SMILE?

THROUGH A CUSTOMER CENTRIC IMPROVEMENT PROGRAM

• Focussing on increased customer value

• Methodology for processes improvements:

• Clustering customer and irregularity reports

• Prioritization of resources for investigation and corrective actions based on improved customer satisfaction

• Preventive actions in function of customer needs

• Closed loop feedback: debrief corrective actions towards customers

Claim processing

Processes improvement

Click to edit title. GUESSING THE FUTURE OF « BIG DATA » IN AIR FREIGHT…

FROM A PAPER BASED SUPPLY CHAIN… …TO A DIGITIAL SUPPLY NETWORK

• USING THE FORCE OF THE NETWORK TO STRENGTHEN POSSIBLE WEAKNESSES OF LINKS • ALLOWING PARALLEL TASKS TO BE PERFORMED & REDUCING IDLE TIME • THROUGH TRANSPARENT COMMUNICATION • ENABLING REAL-TIME COLLABORATIVE PROCESS RECOVERY

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Thank you for your attention