Johan Kollind set the stage for the conference by answering two important questions; Why are we here? and What has happened since last year?

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2 After an amazing breakfast under a clear blue sky in sunny and beautiful Los Cabos, the conference MC Stefan Karisch introduced Per Norén and Mike Lewis (Boeing) who together with Juan Nicolas Rhoads (Aeroméxico) welcomed everyone to the CONNECT Crew & Fleet Users Conference Johan Kollind set the stage for the conference by answering two important questions; Why are we here? and What has happened since last year? To answer the first question why we are here he outlined four main reasons; to learn from other operators, to learn from our clients, to learn from Jeppesen and to create and maintain networks. The opportunities for learning are significant with 82 client delegates and 29 Jeppesen delegates. Together this represents 25 organizations, 18 countries and 5 regions of the world. This also represents crew members, annual departures or annual passengers, which means that together at the conference we are influencing a significant part of the world s transportation system. To summarize the answer to the second question what has happened since last year; we have done a lot together, our clients have done a lot on their own and Jeppesen continues to develop your products. Several achievements are presented in other presentations at the conference as well but to mention a few; Manpower Planning with training optimization for Grupo Aeroméxico and British Airways, Crew Pairing for Alaska Airlines and JetBlue, Production taking of Crew Pairing, Crew Rostering, Crew Bid and Crew Tracking along with BAM (Boeing Alertness Model) at EVA Air and Crew Tracking optimization at Turkish Airlines. Johan also introduced the clickers which allow for real time audience feedback. Using the clickers the audience responded that 61% of the attending were Managers, 33% Planners/Analysts and the rest were Crew members, IT or other. About 40% were attending the conference for the first time but the majority had attended in the past and 7% had attended 5 of more conferences.

3 satisfaction. Juan Nicolas Rhoads presented how Grupo Aeroméxico (GAM) is planning to grow in the coming years by introducing more Boeing 787s and Boeing s. To support this growth and its operations GAM has added optimization technology to its crew and fleet planning as well as to their operational processes over the last 15 years. As a result, they have been able to achieve excellent results in minimizing costs, maximizing process efficiency and improving crew By having access to better data and optimization they now have a fact-based strategic, tactical and operational decision support system spanning all the way from employees to senior managers to owners/board of directors. This shift to better data, which is also cultural, has made communication between departments easier. Nicolas believes that the best way to get good results is to have products from a single vendor in a specific area. The latest acquisition for GAM has been the Jeppesen Manpower product and they are getting extraordinary savings compared to the previous process where they were using Excel. They were able to reduce total hiring by 58%, reduce training movements between fleets with 28% and reduce the yearly salary cost by 5% compared to their reference plan. The system has also allowed them to do what if scenarios which have been very helpful. The next solutions from Jeppesen that are being evaluated are PBS, CMS and Flight Planning. Per started by telling the story of Bill Boeing and how that has brought us where we are today. He also tied in the Carmen Systems story and the early Users Conference 1998 with Marcel Sol, Johan Kollind and others in Amsterdam, bringing it full circle. Talking about challenges for the aviation industry he outlined the vision for the Digital Airline and how Jeppesen and Boeing has come together in the organization Digital Aviation (DA) to make this vision a reality. There is an exponential growth in data and by leveraging this data it enables greater predictability which in turn allows for better planning and more optimization. Crew Management is an area where optimization has grown up, and we are going to spread it to other areas. DA is going to leverage this in all other areas.

4 Virginia Gregory and Johan Åström presented together, talking about the challenges JetBlue had with their previous Crew Pairing system and the journey to where they are today, having just taken ownership of Jeppesen Crew Pairing. The old system did not have FAR 117 and they wanted it quickly. This together with a list of challenges they were having pushed them to start looking for an alternative. The engagement with Jeppesen started with everyone spending three days together in one room to get things going. After this the communication went very smooth and a benchmark was done. Jeppesen won the benchmark saving JetBlue 10 MUSD per year. A service bureau was put in place during the implementation project and once the system was ready it was handed over to JetBlue. Capt. Patrick Martin started his presentation by talking about airline safety systems and how they have evolved. A lot of data is captured, yet only 5 % of the safety issues show up in the data, so understanding what to look at is very important. The Alfred project is a project where airlines have come together with the Swedish Transport Agency and Stress Research Institute. This is done to collect airline fatigue data, enhance model validation, model extension with confidence intervals and to enable active mitigation advice in CrewAlert. When Swiss joined the Alfred project the scope increased to also include creating an operational fatigue index including mission context. Swiss also brought a unique data set to the table 68,093 observations from 1,219 pilots flying with 1,220 co-pilots in 7 different aircraft types landing on 110 airports with 332 different runways. The interpretation of this data set is still a work in progress. No clear findings yet to explain human performance but it is being pursued on several tracks and there will be more results at the next CONNECT User Conference.

5 David talked about what Key Performance Indicators (KPIs) to measure and why, and also that different KPIs are important depending on where in the organization it is. Most operators have very similar needs for process control and follow-up; they all strive for efficiency, robustness, crew satisfaction, flight safety and cost control. To support this Jeppesen has launched the Key Performance Indicator Initiative or KPi 2. Together with you we would like to develop a shared terminology and a common set of KPIs that could be compared also between airlines. We could trend and monitor development over time and Jeppesen could develop standard functionality to support this work. A time line over two years was presented with the final report presented at the UC 2015 was proposed. Invitations to participate in this initiative will be sent out in December. Jim Hall talked about the Crystal Project, a project to replace British Airways current manpower planning process with a process centered on the Jeppesen Manpower product. Their old system is called Cassandra and according to the myth Cassandra could see the future, but no one believed her. Not totally different from the current Cassandra system at BA. The system had grown old and no updates were possible since the source code for the system could

6 not be found and the system can only print to one specific printer, so the Crystal project has to be delivered before the two last printer toners are finished. The new system is in production since October as a service bureau while the system is being implemented. This brings two main benefits to BA relative to waiting to take the system into production when it is fully implemented. The first is to be able to run the system over a longer period of time to giving better solutions at the point the main system is delivered and the second is that BA receives the benefit of systematic optimized solutions much earlier in the project time scale. The savings observed this far is 21 fewer new pilots, over 200 fewer simulator slots required and made available for third party hire and over 1,000 fewer training sectors reducing the need for training captains. Finnair has been using the Jeppesen Crew Tracking system since October 2007 and it was a huge step up from the previous system, all crew tools are now from the same provider and most changes and improvements can be done in-house. The system has evolved a lot since it was implemented with new rules, features, SMS and more. Finnair is always looking to improve the system. One of the recent improvements have been to enable cost control when covering open time and managing swaps and other changes. This has been done by presenting the users with accurate cost calculations of any proposed changes. When there is a cost difference in bringing in specific crew members users are presented a list so that they can use the most cost efficient crew member. This has improved cost awareness among users dramatically and Finnair has seen an 8% saving in the cost for Bought Days off. Before the merger, United were using Jeppesen Crew Pairing. After the merger the Continental operation was to be moved over to Jeppesen Crew Pairing as well. This came with its own challenges and the joint operation is both very large and very complex. United is currently running version 16 but want to upgrade, but IT issues have been keeping them back. United and Continental have different cultures, but they try to bring the best from the two cultures. Aircraft Redeployment: Aircraft are either Continental or United aircraft even though they may be painted in the same colors, since they have different contracts and can only be used for the specific operation.

7 In a more dynamic world change is constant and decisions are made later and later, this has an impact on crew scheduling and there is as we know no perfect plan since it is going to change. With this in mind Tomas proposed a process better suited for this new reality. The new process should accept changes seamlessly, give a high degree of control with respect to cause and effect, integrate over planning areas and steps and support the fact that predictability is higher closer in time. The plan should be optimized and up-to-date at all times. To do this the planning period should continuously move with time bringing together pairing, rostering and tail assignment so that when any changes to the timetable occurs all plans are re-optimized. This requires short runtimes, automation and extremely few manual steps. This is not something that will happen in a big bang, but it can happen in steps and it is coming closer and closer as we speak. This presentation focused on the concept of crew communication where both crew and airline need to exchange information. Today airlines spend a lot of time and effort in communication. Björn Samuelsson explained how this communication is often timeconsuming and done, at least part, manually. To address this issue, Jeppesen has developed different communication modules available for the Crew applications. There are more mobile devices than human beings on the planet and Jeppesen is developing products taking in consideration this platform. He focused the rest of the presentation on the Crew Access application, followed by a live demo of the tool. All Jeppesen Crew modules will be developed using a standard and publically available API. He ended his participation by extending an invitation to all airlines to participate in a user forum for the Crew Web and Mobile application.

8 Chad Koehnke spoke about the new partnership between Alaska Airlines and Jeppesen. Chad started by presenting an overview of the timeline; he showed the main steps that led Alaska and Jeppesen to sign an agreement for optimized crew pairings built by the Remote Planning team. He continued his presentation by describing the strengths and weaknesses of the Remote Planning model and provided some advice for those interested in using this model. He concluded by showing some charts with the savings produced by the new optimized pairings. SAS went through some turbulence times last year during the contract negotiations with the union in the fall Staffan described the current landscape for SAS: among other things, a deregulated market, the arrival of low cost carriers, the add-ons upon add-ons to the union agreements and of course the post 9/11 environment. With the arrival of a new CEO, a program to redress the economic situation of SAS was set in place: 4EXCELLENCE. Part of the actions in this program was aimed to facilitate the union negotiations. SAS prepared for the negotiations by involving all business units and running scenarios using the scenario analyzer tool in their Jeppesen crew management system. When the negotiations started it created a turbulent situation as details were leaked to the press negatively affecting the ticket sales. In November, SAS was about to declare bankruptcy, but in the last hour SAS pulled through and an agreement was signed. The presentation ended with the lessons learned during this process. Philippine airlines presented how the PAL group is transforming to become one of Asia s premier carriers. They opened their presentation by showing the changes they have gone trough in the past years including the changes in management with the arrival of San Miguel Corp. Then they presented the three phases the company is going through to go back into profitability. Phase 1 was the establishment of parallel service between PAL and AirPhil Express. Phase 2 included the rebranding of AirPhil Express into PAL express. And finally phase 3, the alignment of the organization, in particular the integration of PAL and PAL express offices and IT systems. They presented a graphic showing the interaction of the Jeppesen Crew Systems in PAL group with the different applications. Then they

9 proceeded to explain the savings made by using the pairing and rostering systems. He ended his presentation by talking about the ongoing project to implement the Crew Tracking System. Johan opened his presentation by saying I know I am the different guy here because we are grounded all the time. John is the manager resource planning for Green Cargo, a railway company based in Sweden. He continued by giving a brief summary of the company and its history with Jeppesen dating back to He presented their current planning process. Their current process implies making a lot of changes to the planned rosters. Something particular to their process is that drivers and shunters schedules are prepared separately. Green Cargo introduced a new paradigm: elaborate the schedule based in the crew competence regardless if they are a driver or a shunter. Their preliminary tests showed significant savings concerning trips in open time, gap time from max block hours and blank days. They successfully implemented this new way of doing things not without having to negotiate with unions, presenting facts and running different scenarios. Mladen presented an update of the work being done for the crew products. This year, the major release will be presented in two flavors: R20 and R20d. For our customers on CMS, R20d ( d as in database) will be the product to choose. This new version comes with improvements in pairing and rostering, a more intuitive layout of the optimization parameters including a tuning guide and better documentation of what works well. On the Manpower side, more performance improvements are being introduced and we continue to further develop on the Atrium architecture. As for the Crew Portal, there is a new technology and new mindset in place. With the introduction of API s available to all customers, they can now customize their mobile applications. He finalized by presented a graphic of the Architectural Intermezzo and how it will evolve from a set of different systems/environment interconnected, to a simplified environment (Atrium). Turkish has been a Jeppesen customer since 2007, first through Crew Pairing, then Rostering and Crew Tracking. The latest addition is to have Crew Recovery Optimization. Turkish Airlines is the launch customer for this functionality. The day of operations optimization for crew allows Turkish to solve issues faster and to a lower cost.

10 The optimizer was added to the Jeppesen CMS2 Crew Tracking system already in place and was developed as add-on using run-time interfaces. The Optimizer was taken into production in September this year, but the work to improve the optimizer is ongoing and there are still challenges ahead. Delta Air Lines talked about how they prepared for the implementation of FAR 117. The process started already in 2010 with initial scenario runs, since then many hundreds of scenario runs have been done. Jeppesen Crew Pairing allowed Delta to write their own rules without having to send requests to a vendor and wait while the request was developed and tested and placed into production, this allowed them to quickly implement changes and conduct same-day testing. The January 2014 FAR 117 legal bid packages must contractually be published on Dec 4, but there are still several FAR 117 definitions and issues that lack complete clarity, and rather than ask and wait for the FAA to respond they are moving forward with their best understanding. SIA launched a new brand campaign in September this year named The Lengths We Go To, showcasing the Airline s unwavering commitment to putting the customer at the heart of everything we do. They want to empower cabin crew to go the extra mile in providing exceptional service by equipping them with the requisite product and service knowledge. This means that Cabin Crew undergo many different types of training in the course of their careers, to improve their core competency knowledge such as culinary, wine, and language courses, just to name a few. But with 7,800+ crew, each with their own training needs and a large variety of course types, manual assignment of courses can be time consuming. At any given time, there can be up to 100 courses running during a month. These courses have very specific requirements, and all of these were assigned manually by the planning team, which can be a tedious task. This is why SIA decided to implement Automated Course Rostering in the Jeppesen Crew Rostering System. Today the course assignment is a pre-run which does the trainer rosters and only limited courses for the trainees and the process in being fine-tuned. The ambition is to have all training courses assigned together with the flights in the main run and have most, if not all, courses assigned automatically with minimum manual intervention.

11 Qatar opened with a brief description of the efforts made regarding FRMS. They have a group that meets once a month. They noticed that the fleet management and safety management had a common goal but with conflicting means to reach it. They continued by showing the analysis made using the EASA and CAP 371 regulations the BAM model. In their findings they concluded that BAM implementation has helped them to increase the overall alertness level at the planning stage. They also noticed that BAM cannot work in isolation and it has given them an objective metric to evaluate opinions and options and make informed decisions. Qatar has become more tactical and proactive in managing the fatigue risk and they have now an opportunity to influence the direction of the future TFL scheme. The first part of the presentation dealt with the challenges that group LAN faced with the acquisition of TAM and the creation of the LATAM. The organization expands across several countries in South America, with the largest population of employees based in Brazil and Chile. They have a complex structure made of 8 regulators, 14 bases and 11 company unions. In 2011 they created a Center of Excellence as part of their integrated crew management efforts. LATAM created SYMPHONY; a process to help them with the itinerary revision on a regular basis. One of their goals is to minimize the number of changes to the crew schedules. With the help of Jeppesen Crew Pairing, LATAM has identified significant savings. They used as an example the recent changes to the route SCL-LIM-JFK. The second part of the presentation focused in the implementation of Pairing and Rostering for TAM. They described the challenges during the implementation phase, but in spite of that the project was successful. Since the implementation of the pairing product they have increased their daily productivity, which has translated in savings in hotel and allowance costs.

12 Marcel started with a short introduction of himself. With over 15 years of experience in crew planning, Marcel has been involved in several implementations throughout this time. He then continued with the following premise: What if I owned an airline? He answered this question by presenting a portrait of the ideal airline. He covered several aspects needed to take in consideration for any airline. He presented a closer look of what he considers a good planner should be, and then he described how to optimize the operations. He also talked about the importance of the Rave support team. He finalized commenting in the importance of keeping a closer look at the costs and the expectations that his airline would have from Jeppesen. Johan Kollind closed the conference with a summary of the presentations given during the event. We would like to mention the upcoming Jeppesen CDP conference in Gothenburg Sweden April where focus will lie on new functionality and prioritization of development efforts for the coming year. Please contact us at CDP@jeppesen.com for more information. Welcome to Gothenburg in April!

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