HEADSTRONG TOWARDS STRATEGIC PARTNERSHIP ARND SCHWIERHOLZ AIRBERLIN
AIRBERLIN IS ONE OF EUROPE S LEADING AIRLINES No. 1 in Berlin, Dusseldorf and Palma de Mallorca No. 2 in core market Germany/Austria/Switzerland No. 7 in Europe with more than 31.7m guests and revenues of EUR 4.16 billion in 2014 Network carrier focused on business & leisure travellers 8,440 employees as per December 31st 2014 ensure that our guests reach their destinations 147 destinations served worldwide with 149 aircraft as per December 31 2014 Part of global airline partnerships oneworld and EAP
SUCCESSFUL DEVELOPMENT INTO A FULL SERVICE CARRIER 1978: Air Berlin Inc. founded by former PanAm captain Kim Lundgren in Oregon, USA 1991: Air Berlin GmbH & Co. Luftverkehrs KG founded with Joachim Hunold as sole managing director 1992 1997 1998 2005 2006 2010 Since 2011 Charter carrier Mallorca/Euro-Shuttle Scheduled services Alliances & partnerships Charter flights from Germany Start of Mallorca and CityShuttle 25 29 28 34 35 Codeshare with many airlines 33 32 worldwide 2012: Strategic partnership PAX [million] 0.5 0.8 1 1.1 1.4 1.6 2 3 4.1 6 7 10 12 14 19 with Etihad Airways March 2012: Member of oneworld alliance Foundation Business focus: Charter Organic growth Scheduled traffic specializing on holiday destinations IPO in 2006 Consolidator of DACH airline industry (Acquisitions of LTU, Deutsche BA and Niki) International positioning Alliances & codeshares Rationalisation of route network
AIRBERLIN IS A MAJOR PARTNER WITHIN EAP NETWORK Joint strategic network approach Portfolio of almost 100 routes 61 AB/HG routes carry the EY code 45 EY routes carry the AB code By combining both airlines flight networks, the number of available flights increased to 260 destinations Destinations operated by airberlin Destinations operated by Etihad Airways
ONEWORLD AS BASIS FOR TRANSATLANTIC GROWTH oneworld membership makes airberlin well positioned in core European market and globally Connectivity drives additional revenue opportunities and fosters passenger loyalty
FOCUS ON CUSTOMER-ORIENTED SERVICES Quality Friendly and customer oriented service plus communication Attractive destinations Priority services Attractive loyalty program Service card Chocolate heart as brand recognition Attractive baggage policy Individual products (frequent flyer, business, leisure) Costs New tariff model tailored to specific needs of customers Attractive and competitive prices Hardware airberlin app for bookings and check-in Lounges partly equipped with WIFI Exclusive waiting areas Long haul IFE Sansibar gourmet meals (with pre-order) Modern Business Class with FullFlat function Efficiency Quick and easy check-in via several options Current flight information via irreg notifications Quick boarding procedure On-time performance
INTERNAL CHALLENGES AIRBERLIN FACES ENVIRONMENTAL CHALLENGES CONTRIBUTION OF INTERNAL AUDIT airberlin Environment Cost Management Resources / Capacity Wind of Change Continuous organizational adjustments High fluctuation Overall knowledge of the company Integrity & Accountability Independent advice Short ways of communication Internal Audit (airberlin group) Operations improvement Compliance within internal / external requirements Process optimization Effectiveness and Governance improvement Systematic approach Fraud Prevention Low cost carrier Cost and price pressure Changing customer behavior airberlin Flying as commodity environment product Airline branch consolidation Overcapacity of ASK EXTERNAL CHALLENGES Internal Audit should not be understood as an Inspector of the Management but as Internal Consulting. In fact, due to the future oriented audit procedures, Internal Audit gains a complete overview of the processes in the company and consequently can bring recommendations for this improvements and therefore added value to the group.
INTERNAL AUDIT OF AIRBERLIN GROUP AIRBERLIN INTERNAL AUDIT DEPARTMENT performs audits on a risk based audit plan (annual basis) adds value by considering also high risk audits including input from the Executive Board covers all business processes (e.g. operational audits, IT audits) and entity audits if requested also in-house fraud engagements adds value by providing independent in-house consultancy service functions as in-house contact for ad-hoc questions regarding standards and internal/ external requirements does have a continuous follow-up process in place, that is a hybrid between trust based self-reporting and reviewing activities covers entire group of airberlin and is certified to the Standards of the IIA liaises with Governance, Risk & Compliance department
INTEGRATED GOVERNANCE SYSTEM INTERNAL AUDIT AS INTEGRATED ELEMENT
INTERNAL AUDIT ENGAGEMENTS EXTRACT OF PERFORMED AUDITS WITH SUSTAINABLE OUTCOME Sales Processes Discounted Ticketing Financial Processes Optimization regarding coordination between Network Planning & Strategy, Revenue Mgmt and Sales Touristic Services Implementation of additional key controls and segregation of duties Implementation of Waiver Guideline Agency Incentives Assignment of Agency Administration to independent department to ensure independent decision making Process improvement regarding timely suspending of tickets and handling of chargebacks Increase efficiency of dunning procedures Insider Trading AOPS Procurement IT Controls Update of Investor Relations processes Implementation of additional key controls Allocation of procurement to centralized Procurement department Implementation E-Procurement Creation of PMO (Project Management Office) Implementation of guideline for projects
OUR TARGET Sustainable profitability Strong market position Global competitiveness Future growth within EAP group