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MemerHandbook www.drukair.com.bt

HappinesSMiles Program Drukair, Royal Bhutan Airlines, Frequent Flyer Program HappinesSMiles, Bhutan s first frequent flyer program was launched on 10 th November 2014, in commemorating the birth anniversary of His Majesty the Fourth Druk Gyalpo Jigme Singye Wangchuck and in celebrating His Majesty s enlightened and visionary philosophy, Gross National Happiness. The members of the program can accrue miles corresponding to the distance flown on Drukair and the class of service availed. Accrued miles may then be redeemed for Award Flights, Award Upgrades at airports and enjoy other benefits as you attend higher membership tiers. 1. ENROLEMENT Eligible individuals may register online at www.drukair.com.bt on the corporate website of Drukair, Royal Bhutan Airlines. 2. ELIGIBILITY To enrol in the program as a member, the individual must be: a) At least 12 years of age or older b) Holding a valid passport of any nationality 3. DOCUMENTATION A valid Passport is mandatory while the following documents may also be accepted as a travel document: 1. Citizenship ID Card (for Bhutanese nationals only) or, 2. Voter ID (for Indian Nationals only). 4. MEMBERSHIP TIERS HappinesSMiles Program offers 3 tiers of membership: 1. Silver (Basic tier) 2. Gold 3. Platinum (the elite tier). Page 1 v3 Rev. 01 Last updated: 23 March 2018

5. MEMBERSHIP NUMBER Upon enrolment, members will be assigned a permanent membership number that will be the permanent reference point of the member s relationship with the HappinesSMiles Program throughout the membership lifetime of the member. 6. MEMBERSHIP CARD Each member will receive e-membership card upon successful enrolment, and, or when upgraded or downgraded from one membership tier to another. A physical membership card will also be sent to members during the following events: 6.1. When an enrolled Silver Member account status has changed to Active with 1 (one) qualifying accrual transaction (QAT) by flying with Drukair, Royal Bhutan Airlines, a physical Silver membership card will be sent to the member. 6.2. When a Member is upgraded, downgraded or is re-assigned to a Gold Membership Tier, a physical Gold membership card will be sent to the member. 6.3. When a Member is upgraded, downgraded or is re-assigned to a Platinum Membership Tier, a physical Platinum membership card will be sent to the member. 7. EARNING MILES Mileage is earned based on the distance travelled (on Actual Miles / Ticketed Point Mileage) and the class of service availed. Class of Service RBD (Booking Class Code) Cabin Bonus Total Percentage of Actual Miles Earned J 25% 125% of Actual Miles Business C 10% 110% of Actual Miles Economy Y, Q, S - 100% of Actual Miles Other discounted fares or promotional fares with designated booking class codes (P, W, etc.) may be eligible for reduced mileage accrual or may not earn miles. Award Travel in X (economy) and I (business) booking classes are not eligible for mileage accrual. On all upgraded travels including a paid upgrade travel at the airport, mileage is earned based on the original booking class code. Page 2 v3 Rev. 01 Last updated: 23 March 2018

8. ACTUAL MILES Actual Miles is the Ticketed Point Mileage between the origin and the destination of Drukair operated flights. SEGMENT Actual Miles Paro - Bagdogra V.V 87 Paro - Bangkok V.V 1,183 Paro - Bodhgaya V.V 337 Paro - Bumthang V.V 78 Paro - Delhi V.V 762 Paro - Dhaka V.V 256 Paro - Gelephu V.V 96 Paro - Guwahati V.V 155 Paro - Kathmandu V.V 256 Paro - Kolkata V.V 335 Paro - Mumbai V.V 1,203 Paro - Singapore V.V 2,038 Paro - Yonphula V.V 129 Bagdogra - Bangkok V.V 1,198 Bodhgaya - Bangkok V.V 1,273 Dhaka - Bangkok V.V 963 Guwahati - Bangkok V.V 1,036 Kathmandu - Delhi V.V 506 Kolkata - Bangkok V.V 1,009 Kolkata - Singapore V.V 1,804 9. BASE MILES (MILEAGE CHART) SEGMENT Actual Miles Base Miles (Miles earned based on RBD) S Y C J Paro - Bagdogra V.V 87 87 87 96 109 Paro - Bangkok V.V 1,183 1,183 1,183 1,301 1,479 Paro - Bodhgaya V.V 337 337 337 371 421 Paro - Bumthang V.V 78 78 78 86 98 Paro - Delhi V.V 762 762 762 838 953 Paro - Dhaka V.V 256 256 256 282 320 Paro - Gelephu V.V 96 96 96 106 120 Paro - Guwahati V.V 155 155 155 171 194 Paro - Kathmandu V.V 256 256 256 282 320 Paro - Kolkata V.V 335 335 335 369 419 Paro - Mumbai V.V 1,203 1,203 1,203 1,323 1,504 Paro - Singapore V.V 2,038 2,038 2,038 2,242 2,548 Paro - Yonphula V.V 129 129 129 142 161 Page 3 v3 Rev. 01 Last updated: 23 March 2018

Bagdogra - Bangkok V.V 1,198 1,198 1,198 1,318 1,498 Bodhgaya - Bangkok V.V 1,273 1,273 1,273 1,400 1,591 Dhaka - Bangkok V.V 963 963 963 1,059 1,204 Guwahati - Bangkok V.V 1,036 1,036 1,036 1,140 1,295 Kathmandu - Delhi V.V 506 506 506 557 633 Kolkata - Bangkok V.V 1,009 1,009 1,009 1,110 1,261 Kolkata - Singapore V.V 1,804 1,804 1,804 1,984 2,255 Note: Base Miles will also be counted separately towards Tiers for tier evaluation on every new accrual activity for exactly 365 days, called as Tier Miles. 10. BASE MILES VALIDITY Base Miles accrued remain valid for a full 2 (two) years from the date of credit (load date). Base Miles not redeemed within the 2 year validity expire on a monthly basis. For example, Base Miles earned within January 2018 (1 st - 31 st ) and not redeemed will expire on 31 st January 2020. Within each calendar year, there are 12 dates on which Base Miles may expire (last day of each month). Expiring Base Miles, if any, can always be viewed online by accessing individual s member account. 11. MEMBERSHIP BENEFITS TIER Silver (Basic tier) Gold BENEFITS Mileage accrual and redemption on Happiness Reward Tickets and Happiness Class Upgrade. Mileage accrual and redemption on Happiness Reward Tickets and Happiness Class Upgrade. 1. 10 KG Additional Baggage Allowance 2. Complimentary Lounge Access at Paro Airport Mileage accrual and redemption on Happiness Reward Tickets and Happiness Class Upgrade. Platinum (Elite tier) 1. 20 KG additional Baggage Allowance 2. Complimentary access to all Drukair lounges plus one guest 3. No show charge exempted 4. Complimentary class upgrade subject to seat availability at the airport Page 4 v3 Rev. 01 Last updated: 23 March 2018

12. MEMBERSHIP TIER UPGRADE Attaining or retaining a membership tier is based on Tier Miles (Base Miles accrued in the preceding 365 days). A member s account is reviewed on every new accrual activity with preceding accrual activities up to 365 days. When the required Tier Miles is met, the membership tier is upgraded and a new membership card is sent to the member. Required Miles flown in a year to attain/retain Membership validity SILVER (Basic tier) GOLD PLATINUM Not Applicable 15,000 Tier Miles 30,000 Tier Miles No Validity 1 year 1 year 13. GOLD / PLATINUM MEMBERSHIP TIER VALIDITY Gold and Platinum membership tier remain valid for full 1 (one) year. For example, if a member is upgraded in January of 2018 (1 st 31 st ), the validity of the new membership tier will expire on 31 st January 2019 (the expiry date will be rounded off to month end date). 14. AWARD TRAVEL REDEMPTION Members can redeem Award Travel on any scheduled Drukair flight from any Drukair Sales Outlet by spending accrued miles as per Award Flight Redemption Chart below: SECTOR Paro Bumthang or v.v. Paro Gelephu or v.v. Paro yonphula or v.v. Paro Dhaka or v.v. Paro Kathmandu or v.v. Paro Bagdogra or v.v. Paro Bodhgaya or v.v. Paro Guwahati or v.v. Paro Kolkata or v.v. Kathmandu Delhi or v.v. Paro Delhi or v.v. Kolkata Bangkok or v.v. Guwahati Bangkok or v.v. Paro Bangkok or v.v. Bagdogra Bangkok or v.v. Bodhgaya Bangkok or v.v. Paro Singapore or v.v. Kolkata Singapore or v.v. ECONOMY (X Class) BUSINESS (I Class) ONE WAY ROUND TRIP ONE WAY ROUND TRIP 5,00 Miles 10,000 Miles 6,250 Miles 12,500 Miles 10,000 Miles 20,000 Miles 12,500 Miles 25,000 Miles 12,000 Miles 24,000 Miles 15,000 Miles 30,000 Miles 20,000 Miles 40,000 Miles 25,000 Miles 50,000 Miles Page 5 v3 Rev. 01 Last updated: 23 March 2018

AWARD TRAVEL TERMS 1. Applicable Taxes will be collected additionally. 2. Valid for 1 year from the first date of travel. 3. Stop-overs will not be permitted. 4. Date change will be permitted as per Term & Fare Sheet within the validity. 5. Miles will not be accrued on Award Flights. 6. Refund will be permitted based on tier level, provided Award Flight has been cancelled 3 (three) day prior to departure as follows: I. Silver - 75% refunded II. Gold - 90% refunded III. Platinum - 100% refunded 15. AWARD UPGRADE (AT AIRPORT) Members can redeem Award upgrade on any Drukair operated flight at the airport check-in subject to seat availability by spending accrued miles as per Award Upgrade Redemption Chart below: SECTOR Paro Dhaka or v.v. Paro Kathmandu or v.v. Paro Bagdogra or v.v. Paro Bodhgaya or v.v. Paro Guwahati or v.v. Paro Kolkata or v.v. Kathmandu Delhi or v.v. Paro Delhi or v.v. Kolkata Bangkok or v.v. Guwahati Bangkok or v.v. Paro Bangkok or v.v. Bagdogra Bangkok or v.v. Bodhgaya Bangkok or v.v. Paro Singapore or v.v. Kolkata Singapore or v.v. Miles 1,500 Miles 3,000 Miles 3,600 Miles 6,000 Miles AWARD UPGRADE TERMS 1. Award Upgrade will only be redeemable during check-in, at the airport check-in counter. 2. Redemption is subject to seat availability. 3. Entitled to use business class lounge. 4. Entitled to business class baggage allowance. Page 6 v3 Rev. 01 Last updated: 23 March 2018

16. ONLINE MEMBERSHIP ACCOUNT Members can access the online HappinesSMiles account at www.drukair.com.bt with the Membership Number and password to: a) Check available miles. b) Check mileage expiry details. c) View membership status. d) View statements. e) Retro-claim facility on unrecorded flights undertaken in the past 6 months. f) Update personal profile, travel document details and addresses. g) Update communication preferences (subscribe/unsubscribe for updates on special promotions and offers). 17. PROGRAM TERMS AND CONDITIONS The terms and conditions of the program which explains the nature and scope of the relationship between HappinesSMiles Program, the frequent flyer program of Drukair, Royal Bhutan Airlines, and a member of the program are detailed hereunder. The terms and conditions are subject to change from time to time. 1) To participate in the Program, the applicant must be at least 12 years of age or older holding a valid passport of any nationality. 2) Only an individual can be enrolled as a member per account. 3) Miles can be earned on all scheduled Drukair flights except on unused, forfeited, refunded, free, no value, denied boarding, barter, infant fares, and on all non-revenue tickets. 4) Miles accumulated on Drukair is determined by the distance travelled and the class of service availed. 5) Members receive mileage credit based on distance between origin and destination of Drukair operated flights as determined by Drukair. 6) All travel documentation, including tickets, boarding passes, electronic ticket payment and other payment receipts should be retained until miles has been credited to your account. 7) It is the responsibility of each Member to present their membership card / quote their membership number during ticketing or at the airport check-in counter in order to help ensure that all miles has been credited. 8) Miles can be accumulated solely by the enrolled member who travels, regardless of who pays for the ticket, and cannot be combined with or transferred to the accounts of other members. 9) Membership and accrued Miles are non-transferable from one member to another under any circumstances. Page 7 v3 Rev. 01 Last updated: 23 March 2018

10) Drukair may change the HappinesSMiles Program rules, regulations, and benefits, conditions of membership, in whole or in part at any time with or without notice even though change may affect the value of the mileage or Awards already issued. 11) The selling, purchasing, bartering, auctioning or exchanging of all HappinesSMiles Awards for compensation is strictly prohibited. Drukair reserves the right to withhold or confiscate the HappinesSMiles Award Documents, void all available Miles, close accounts, terminate membership, with or without notice, and take legal action in the event of any member found to be conducting a commercial transection with third parties involving HappinesSMiles Award Documents. 12) Drukair reserves the right to terminate the HappinesSMiles Program at any time. 13) Any disagreement with regard to the HappinesSMiles program shall be subject to the Laws of the Kingdom of Bhutan and referred to the Royal Court of Justice in Paro as the court of first instance. Tashi Delek and we wish you a pleasant flight with Drukair, Royal Bhutan Airlines Page 8 v3 Rev. 01 Last updated: 23 March 2018

DrukairCorporationLimited PO Box1219,Nemeyzampa,Paro Bhutan www.drukair.com.bt