8th Maintenance Cost Conference

Chairmans Report

Atlanta

17/19.10.2012

Tiymor Kalimat

Manager Technical Procurement

Royal Jordanian Airlines

2

Steering Committee Members

3

IATA

Dr. Chris Marcou

Miss. Geraldine Cross Miss. Irina Khomenko

4

OEM Associates

5

Host airline & Main Sponsor

6

Steering Committee Mission and Objectives Structure 2012 2012 Activities Schedule 2012 Activities MCTF Data Flow Process Data Collection Toolset Maintenance Cost Report (MCR) Cost Report Tool Overview

Statistics 2012

Airline Participation Airline Participation Trend Aircraft Fleet Count

Why to Participate in IATA MCTF

Agenda

7

Steering Committee Mission and Objectives Structure 2012 2012 Activities Schedule 2012 Activities MCTF Data Flow Process Data Collection Toolset Maintenance Cost Report (MCR) Cost Report Tool Overview

Statistics 2012

Airline Participation Airline Participation Trend Aircraft Fleet Count

Why to Participate in IATA MCTF

Agenda

8

Mission

To become the focal point on commercial airline Maintenance Costs for the

purpose of benchmarking & Cost management

Objectives

Define and standardize commercial airline maintenance costs reporting

Benchmark airline maintenance cost and building a trend

Identify maintenance cost drivers and means for reduction

Airline maintenance cost knowledge / experience / industry best practices

sharing

Collaborate with OEMs and MRO to define and implement Aircraft

Maintenance Cost Reduction Initiatives

Steering Committee - Mission and Objectives

9

Steering Committee Structure 2012

Chairman

Royal Jordanian

American Airlines Air Astana

Aegean Airlines All Nippon Airways German Wings

Airbus

Boeing

SNECMA

Lufthansa Cargo

Vice Chairman

IATA

Airline Operator

Members only

Steering Committee (SC) group consists of 17 airlines members and 4 OEM partners,

as well as IATA.

OEMs

Partners

Air Mauritius

Qantas Airways AeroSvit Turkish Airlines

Delta Airlines Swiss Airlines Austrian Airways

Embraer

Air Macau Kenya Airways Saudi Airlines

10

Steering Committee - Activities Schedule

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Frequent Call Conference

SC Meeting No.1

Geneve

SC Meeting No.2 and MCC

Atlanta

Ad

min

istr

ati

on

s

Ev

en

ts Preps for Input

toolset. MCC locations and themes

Toolset collection and data validation by IATA

MCR and IATA output report

11

Steering Committee 2012 activities

1- Aircraft Leasing Task Force

Aircraft Delivery / Redelivery

Maintenance reserve process mapping

2- Standardization of maintenance contracts

Airframe base maintenance standard agreement

3-Standarized cost capturing tool, and upgrade

Capturing Maintenance Reserve

4- Peerless supply chain- RFID 5- Warranty survey 6- labour rate & productivity calculation

12

Steering Committee Mission and Objectives Structure 2012 2012 Activities Schedule 2012 Activities MCTF Data Flow Process Data Collection Toolset Maintenance Cost Report (MCR) Cost Report Tool Overview

Statistics 2012

Airline Participation Airline Participation Trend Aircraft Fleet Count

Why to Participate in IATA MCTF

Agenda

13

MCTF Data Flow Process

Inputs Outputs Data collection and Validation

Data`s are coded

14

Current Input toolset (developed by Airbus) is able to provide comprehensive

Maintenance Cost benchmarking capability

MCTF Steering Committee is constantly reviewing and updating the contents

of the provided data

MCTF - Data Collection Toolset

15

MCTF - Maintenance Cost Report (MCR)

Maintenance Costs Report

Combined with the Input

toolset, MCTF & Boeing has

provided the industry with

one of the most in-depth

benchmarking program

2009 Maintenance

Cost Reporting Tool

MCTF

International Air Transport Association

16

Steering Committee Mission and Objectives Structure 2011 2011 Activities Schedule 2011 Activities MCTF Data Flow Process Data Collection Toolset Maintenance Cost Report (MCR) Cost Report Tool Overview

Statistics 2012

Airline Participation Airline Participation Trend Aircraft Fleet Count

Why to Participate in IATA MCTF

Agenda

17

Statistics - Airlines Participation Trend

18

Statistics - Aircraft Models Reported

19

Statistics - Total Fleet Count

20

Steering Committee Mission and Objectives Structure 2011 2011 Activities Schedule 2011 Activities MCTF Data Flow Process Data Collection Toolset Maintenance Cost Report (MCR) Cost Report Tool Overview

Statistics 2011

Airline Participation Airline Participation Trend Aircraft Fleet Count

Why to Participate in IATA MCTF

Agenda

21

Why to Participate in IATA MCTF?

A platform for effective sharing of information

An opportunity to discuss and benchmark key maintenance cost issues facing the

airline industry

An opportunity to find means of cost reduction initiatives

Free copy of the IATA Maintenance Cost Report

22

8th Maintenance Cost Conference

Atlanta

17/19.10.2012

IATA 8th Maintenance Costs Conference