DOSSIER PRESSE OCT 2013

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AFI KLM E&M Press Information 2014

AFI KLM E&M MRO of the Year 2014 by Airline Economics Magazine INSIDE I – AFI KLM E&M key figures, results and strategy ___________________P2 A – About AFI KLM E&M _________________________________________P2 B – AFI KLM E&M Results 2013 ___________________________________P3 C – AFI KLM E&M Key figures and highlights 2013 __________________P4 D – AFI KLM E&M strategy _______________________________________P6 II – AFI KLM E&M’s key strength: adaptability ________________________P9 A – Component support services _________________________________P10 B – Engine support services _____________________________________P10 C – Modifications _______________________________________________P13 D – Preventive maintenance for nacelles (FTR) _____________________P13 E – Technical Training ___________________________________________P14 F – AFI KLM E&M capabilities ____________________________________P15 III – Building a global MRO network _________________________________P15 A – Principal network “bridgeheads” and centers of excellence ______P16 B – AFI KLM E&M network _______________________________________P20 IV – Serving AIR FRANCE KLM sustainability _________________________P21 A – Initiatives benefiting AFI KLM E&M clients ______________________P21 B – Eco-responsible innovations __________________________________P23 APPENDIX _________________________________________________________P24 Approvals and certification _______________________________________P25 Follow AFI KLM E&M ____________________________________________P26

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I – AFI KLM E&M key figures, results and strategy A – About AFI KLM E&M Air France Industries KLM Engineering & Maintenance is a major multiproduct MRO (Maintenance, Repair, Overhaul) provider. With a workforce of over 14,000, AFI KLM E&M offers comprehensive technical support for airlines, ranging from engineering and line maintenance to engine overhaul, as well as the management, repair and supply of aircraft components, aero structure and FTR support, structured around a powerful logistics network. AFI KLM E&M supports almost 1,500 aircraft operated by 150 major international and domestic airlines. AFI KLM E&M Profile AFI KLM E&M is one of the major suppliers of multi-product MRO solutions, with capabilities for Boeing, Airbus and regional fleets, notably for new-generation aircraft. ■ Broad, integrated range of tailor-made services ■ 150 airline customers worldwide ■ Leader in component support services for the A320 family, A330, A340, A380 and Boeing 737NG, 777 and 787 aircraft ■ Leader in CFM56-5 engine maintenance and leading manufacturer-independent MRO source for GE90 and CF6-80E1 maintenance

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B – AFI KLM E&M results 2013 AIR FRANCE KLM MRO Business in 2013 (compared to 2012) Compared to 2012

2013

2012

Total Revenues (€ million)

3,280

3,134

+4.7%

External Revenues (€ million)

1,225

1,096

+11.8%

Operating income (€ million)

159

140

+19%

Operating margin (%)

4.8%

4.5%

+0.3pts

Maintenance operating income/(loss) € million 160 140 120 100 80 60 40 20 0 FY2011

FY2012

FY2013

C – AFI KLM E&M Key figures and highlights AFI KLM E&M is continuing its targeted development strategy taking its specific features into account. That strategy is two-pronged: cut costs and maintain high quality and performance levels on the one hand, and develop the customer portfolio with high valueadded products and services and on the other. AFI KLM E&M Highlights 2014 ■

November 2014 – XiamenAir Dreamliner Fleet Backed By AFI KLM E&M Component Expertise.

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October 2014 – Barfield invents line testing with an ordinary tablet: AFI KLM E&M's American subsidiary has developed an innovative and affordable software application.



October 2014 – New Capability in AFI KLM E&M portfolio. Bonus Aerospace was granted to handle PW4000 engines and delivers first fully overhauled PW4000.



October 2014 – Air Canada signs with AFI KLM E&M’s EPCOR to maintain its Boeing 787 APUs.



October 2014 – AFI KLM E&M in A350 Maintenance Starting Blocks.



September 2014 – KLM UK Engineering widens its portfolio obtaining FAA approval.



September 2014 – AFI KLM E&M Best Source of Repair by NATO Support Agency.



August 2014 – Imperium and Barfield announce distribution agreement. Barfield is part of the AFI KLM E&M MRO network and a recognized worldwide market leader in ground support test equipment that will be distributing Imperium's line of ultrasound cameras for non-destructive testing (NDT) usage.



July 2014 – AFI KLM E&M Supports Virgin Atlantic deployment of Boeing 787 fleet: UK airline signs long-term component maintenance contract for new Boeing 787-9 Dreamliners.



June 2014 – AFI KLM E&M Modifies and Provides component support for GainJet 737-400: Modification done by KLM UK Engineering.



May 2014 – Afriqiyah Airways extends A330 maintenance contract.



May 2014 – AFI KLM E&M and GMF Aero Asia sign a major component maintenance partnership, covering component support for 10 777-300ERs and for the 78 737s operated by Indonesian flag-carrier Garuda Indonesia.



April 2014 – AFI KLM E&M and Air China Technics step up MRO Partnership: Latest agreement follows on from earlier successful partnership ventures and signing of a major new GE90 engine support contract.



April 2014 - Sunwing Airlines renews its trust in AFI KLM E&M. The Canadian company extends its components support contract for its 4 new Boeing 737-800s.

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April 2014 - AFI KLM E&M and Boeing Extends 777 CSP Partnership: In the space of a decade, the Component Services Program (CSP) has established itself as the flagship MRO solution for Boeing 777 fleet component support.



April 2014 - AFI KLM E&M announced the creation of a Miami-based centre dedicated to asset management operations on the Americas. Dubbed AAF Spares LLC, the business is wholly-owned by AAF Spares Limited, the 50/50 joint venture set up by AFI KLM E&M and Avtrade in 2011. AAF Spares LLC offers sales, leasing and/or routine replacement solutions for US operators of aircraft in the Airbus A320, A330/340, Boeing 777, 737NG/CG and 767 families.



March 2014 - Air France-KLM selects General Electric’s GEnx-1B engine to power its Boeing 787 fleet. The agreement includes the signature of a partnership between General Electric and Air France Industries KLM Engineering & Maintenance on the maintenance of the GEnx engine.



March 2014 – AFI KLM E&M and Sabena technics have reached an agreement under which the Franco- Dutch group will take full control of Barfield, the North American subsidiary of Sabena technics. Barfied Inc. was founded in 1945 and is an MRO provider specializing in component support, offering services ranging from repairs to flight- hour solutions including spares support, the design of test equipment, and the distribution of spare parts for OEMs. It employs 220 at three US facilities (Miami, Phoenix, and Louisville).



March 2014 - Kenya Airways has selected AFI KLM E&M to provide component support services for a total of nine Boeing 787 Dreamliners currently on order and scheduled for delivery between March 2014 and end-2015. The contract also includes pool access and a Main Base Kit pre-positioned at the client’s Nairobi base.



February 2014 - EPCOR extended its expertise and MRO service offer to all carriers operating Boeing 787 aircraft equipped with the APS 5000 auxiliary power units (APUs) manufactured by Hamilton Sundstrand. The offer includes APU repair and maintenance including warranty repairs, along with the supply of spares.



February 2014 - Royal Jordanian renewed its trust in the services of AFI KLM E&M by signing a new contract to provide its A320 fleet with component support.



January 2014 - Myanmar Airways International (MAI) inked an exclusive contract with AFI KLM E&M to provide engine support for the CFM56-5B power plants equipping its fleet of A320 family aircraft.

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AFI KLM E&M Industrial Potential ■ Around 1 500 aircraft handled each year ■ A workforce of more than 14,000 ■ AFI KLM E&M global network Maintenance sites: o In France: Roissy-CDG, Orly / Villeneuve-le-Roi, Toulouse, Le Bourget, Elancourt o In the Netherlands: Amsterdam-Schiphol o In Germany: Hamburg o In the United Kingdom: Norwich o In the United States: Miami, Atlanta, Blytheville, Louisville and Phoenix. o In the United Arab Emirates: Dubai o In India: Mumbai o In Morocco: Casablanca o In China: Shanghai ■ Over 1,200,000 sq. of infrastructure ■ 3 engine test cells ■ 450 Engine shop visit per year ■ 33,000 Part Numbers / 100,000 consumables ■ 600,000 parts in stock ■ Approx. 200 FTRs overhauled each year

D – AFI KLM E&M strategy Delivering more value-added to customers AFI KLM E&M has opted for a development focused on delivering added-value to its clients driven by improvements in performance levels, costs and the development of its high added-value products and services. The Group’s main objective is to maintain a presence across all market segments and provide adaptive solutions to third-party airline requirements. The strategy is underpinned by: ■ The development of local units to offer customers a more local presence and boost AFI KLM E&M commercial responsiveness on targeted markets; ■ Network adjustments and optimization in order to boost logistics performance; ■ The development of skills and know-how designed to offer clients greater value-added; ■ Cost control and the search for scale effects through improved operational performance.

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AFI KLM E&M is also being careful to adjust its staffing levels to activity, and to step up its cost-saving measures to safeguard its competitiveness by, eg, extending procurement synergies among Group entities, revising its processes, achieving productivity gains, and adjusting its investment program. Adaptiveness® for a win-win partnership Adaptiveness® is our response to the changing MRO business environment. It means listening to and understanding the key technical priorities of our customers’ operations, building unique solutions meeting their specific requirements, and staying at their side as a partner to support them through their daily challenges in a spirit of continuous improvement. - Adaptiveness® means that we commit to designing the solution which best fits the customer’s operational objectives, current situation & constraints, and need for cost savings. - Adaptiveness® means that we offer customers alternative options, such as repairing instead of replacing. Even though we may not always have instant answers, we always endeavor to find them. AFI KLM E&M’s ambition is to be the adaptive MRO which offers its airline customers tailormade, reliable and creative solutions. Generating savings for clients AFI KLM E&M’s third-party clients also benefit from the cost-savings program implemented by the AIR FRANCE KLM group to manage its own fleets. The use of Group resources means that AFI KLM E&M can achieve scale effects for its own clients in several ways: ■ by obtaining greater leverage with suppliers and repairers; ■ by optimizing the inventory size, giving customers the benefit of scale effects; ■ by developing alternative solutions to purchasing new parts; ■ by inventing and developing repairs to reduce costs.

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Strategy in action: 787 maintenance services In line with our Adaptiveness® positioning, we are permanently developing our offer on new products and services, such as 787. All latest-generation aircraft – and the Boeing 787 is no exception – can reap the benefits of AFI KLM E&M know-how. Our specialist staff are already geared up to deploy targeted solutions tailored to airlines maintenance requirements for this new aircraft type. Furthermore, AFI KLM E&M is backed by an airline group which has decided to include the Dreamliner in its fleet. This is the guarantee of in-depth knowledge of the aircraft and the demands involved in operating it. That expertise is further strengthened by the strategic partnerships forged by AFI KLM E&M with leading Boeing 787 equipment manufacturers such as Hamilton-Sundstrand. On July 2012, LOT Polish Airlines, the European launch airline for the Dreamliner, has signed a longterm component support agreement with AFI KLM E&M for its fleet of 787, which will ultimately comprise eight aircraft. The signing of this contract with LOT Polish Airlines marked the launch of the 787 component service offer designed by AFI KLM E&M. In June 2013, Royal Brunei Airlines also entrusted 787 component supports to AFI KLM E&M, already joined by Kenya Airways. In March 2014, AFI KLM E&M announced a partnership with GE on the maintenance of the GEnx. In October 2014 AFI KLM E&M was awarded EASA Certification for GEnx maintenance.

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II – AFI KLM E&M’s key strength: adaptability In a fast-changing MRO market, AFI KLM E&M is well-equipped to meet the challenges of its clients and share its expertise. Its key strengths lie in a product and service offering that is a perfect fit for the maintenance requirements of new-generation fleets, supplemented by solutions specially designed to deal with end-of-life issues on some aircraft.

A – Component support services Over the years, AFI KLM E&M has developed an extensive portfolio of maintenance services, covering the whole range of aircraft components for a broad range of aircraft families. In addition to repairs and overhauls, AFI KLM E&M provides a range of complimentary services to assist client airlines wherever they are located. These include logistics, warranty management, engineering, pooling, loans and leases, purchasing and financing, not to mention the design of ad hoc solutions near client locations. Over 30 national authorities have acknowledged this and have certificated AFI KLM E&M to carry out component repairs in compliance with their own regulations. AFI KLM E&M notably provides component support for the following: ■





Fast-growing regional fleets (ATR, Embraer, CRJ) by adjusting its logistics department to the specific needs of the regional operators. Boeing 777: AFI KLM E&M has asserted its leadership position on the 777 support and maintenance market and is extending its engineering leadership via the Component Services Program (CSP) operated in conjunction with Boeing. Boeing 737NG: In 2005, AFI KLM E&M and Boeing set up the unique CSP Component Services Program for 737NG aircraft. Some 20 airlines on five continents have to date opted for the CSP. It guarantees them control over their operations and provides fast-track access to 737NG componentspools located in Amsterdam, London, Seattle, Dubai, Kuala Lumpur and Toronto. The program can also be extended to the complete inventory of 737NG components and to engineering support. This high-end program delivers the best of the manufacturer’s know-how with that of a market-leading MRO operator. Over 400 aircraft worldwide are already supported by the 737NG CSP framework.

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787: Boeing involved in all areas of engineering and maintenance services for every Boeing aircraft type, and being known for our front-running position in new technology, 787 support is a logical extension to our MRO portfolio. A330/A340: Air France and KLM operate a combined fleet of 26 A330s and 19 A340s. This is why AFI KLM E&M is the world leader when it comes to A330/A340 component support. Over 200 aircraft currently benefit from our services worldwide. A320: AFI KLM E&M maintains close to 400 A320s, both for major airlines and lowcost carriers. We offer maintenance and repairs for over 2,500 A320 family part numbers. A350: Without waiting for the first commercial flights, AFI KLM E&M has already been tooling up to maintain the A350, enabling it to design and then market a full range of MRO services for operating airlines. In line with its industrial strategy, AFI KLM E&M is developing in-house A350 maintenance capabilities and is constructing an appropriate engineering program in conjunction with the airframer, and the component and engine manufacturers. A380: AFI KLM E&M is providing component overhauls for the largest member of the Airbus family via the Spairliners joint venture. To date, customers are Air France, Lufthansa, Qantas and Malaysia. E-Jet: AFI KLM E&M has developed a new offer dedicated to component support for Embraer E-Jet family aircraft (E-170/E-175 and E-190/E-195), operated via the Spairliners joint venture.

The Group is also developing its APU maintenance capabilities via its Dutch subsidiary, EPCOR, which provides APU maintenance services for the 737NG, 777 plus 787 (APS 5000), A320, A330 and A340, and Embraer 170 and 190 (APS 2300) with a 30-days TAT. Because it has access to its parent’s operational experience and vast pool and also boasts state-of-the-art tooling, facilities, and in-house testing capabilities, EPCOR can offer a particularly broad, competitive portfolio of services.

B – Engine support services GE90 With around 150 engines in operational use, AIR FRANCE KLM is a major global operator of GE90 engines. The Group has 20% of the total engines in the GE range currently in service. AIR FRANCE KLM has one of the biggest Boeing 777 fleets in the world, operating the 777-200ER since 1998 and 10

being the launch airline for the 777-300ER and for the 777 LR freighter. AFI KLM E&M has built up a unique level of experience and know-how on this outstanding engine: ■





As the main alternative to the manufacturer’s services, AFI KLM E&M’s offering is backed up by leading-edge technology infrastructure. The Group has expanded its engineering capacity through a continuous investment program for its facilities and by carrying out repairs. For example, AFI KLM E&M added a further 5,500 sqm to its workshops in 2006 and 11,000 sqm in 2010. The Group has also developed Quick Turn operations that no other MRO is currently able to offer. AFI KLM E&M is constantly expanding its overhaul capacity: from full overhaul capabilities to main modules to gearboxes (e.g., TGB, IGB) and engine accessories (e.g., HMU, VSV actuators). Workshops at both AFI KLM E&M and our CRMA subsidiary offer extensive capabilities for engine-part repairs. We provide OEM repairs as well as alternative repairs through DER or DOA approvals. Our broad customer portfolio includes major OEMs and MROs AFI KLM E&M is the main MRO operator (apart from the OEM) to maintain the GE 90. As operator and launch customer of this engine type, the Group combines operational experience with its engineering experience to provide top-quality maintenance tailored to customer needs

New Engine Test Cell To complete its industrial infrastructure modernization program and achieve total control over Very Big Engine (VBE) maintenance processes, AFI KLM E&M embarked on the construction of a new Engine Test Cell (ETC) for use with GE90-94/115, CFM56, and GP7200 power plants. Opened in 2012, the 5,000 sqm building has been built under the HQE (High Environmental Quality) rules. This involves outstanding sound insulation, with walls 1m thick, ergonomic workstations, and rainwater recovery. The ultimate aim is to be able to handle 110 VBE engines a year in the 100m-long test cell. With the entry into service of this €40 million facility, AFI KLM E&M can offer the complete array of services on Very Big Engines. This new facility is certified FAA, OSAC and CAAC by respectively U.S., European and Chinese authorities. CFM56 and CF6 AFI KLM E&M clients get the benefit of the world’s largest CFM56-5, CFM56-7 and CF6-80E1 engine maintenance facility, divided between its two ultra-modern engine shops located at Amsterdam and Paris.

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CFM56-5 AFI KLM E&M currently supports the biggest fleet of CFM56-5 engines in the world with more than 400 engines operated by a broad range of airlines. Among the services available for CFM56-5 engines are on-site support, a hospital chain, and a replacement engine supply, thanks to the Group’s vast pool, and optimized total maintenance costs. AFI KLM E&M has already carried out over 1,500 shop visits on this engine type, and has an annual capability of 180 visits. ■



CF6-80C2 AFI KLM E&M has almost 25 years’ experience on CF6-80C2 overhauls. One of the Group’s key strengths is its ability to offer highly flexible shop visit slots for this engine type. In all, AFI KLM E&M has already completed 2,100 shop visits for CF6-80C2 engines, of which 220 are fitted to Group aircraft.

CF6-80E1 The latest addition to General Electric’s CF6 family, the CF6-80E1, equips the Group’s A330s. AFI KLM E&M added the capabilities linked to this engine in 2005 and in so doing became Europe’s only MRO (apart from the OEM) to offer fullservice maintenance and testing for CF6-80E1 powerplants. AFI KLM E&M is currently in charge of maintaining 20% of the world’s CF6-80E1-equipped aircraft. The engine’s design is similar to that of the CF6-80C2, with which it has 60% parts commonalty. The experience gained by the Group during the 2,100 shop visits carried out to date on the CF6-80C2 engine represents an excellent basis for its CF6-80E1 maintenance activities. ■





GP7200 AFI KLM E&M is extending its offering with the advent of a new engine type: the GP7200 now equipping Air France’s A380s. In a related development, CRMA (the Group’s subsidiary specializing in the repair of new generation engine parts and sub-systems) has been selected by the GP7200’s OEM, Engine Alliance, as a primary repair shop for the engine’s combustion chamber and its turbine centre frame (TCF – the frame structure located between the high and low pressure turbines). PW4000 and JT8D Our Bonus Aerospace, Inc. JV is a FAA & EASA certified engine repair facility. Our capabilities include the JT8D-200, JT8D Basic and the PW4000 series. From the most complex engine overhaul to minor repairs, we deliver outstanding quality and 12

support for all of your operating needs. Our goal is to provide our customers with 100% satisfaction and to keep the costs as low as possible. GEnx The GEnx new-generation powerplant that will equip the Air France KLM fleet of Boeing 787s from the end of this year represents another step towards the future in MRO terms. AFI KLM E&M teams will overhaul and repair the engines at its Schiphol engine shop. Final testing will be carried out at AFI KLM E&M’s shop in Paris, the only one in Europe to be approved besides General Electric’s own. ■

C – Modifications AFI KLM E&M has an extensive offering in this area which in times of crisis is particularly strategic for clients faced with the need to tailor their fleets to changes in their economic environment. The Group provides modifications services for both civilian and military aircraft, respectively for mainstream airlines, private fleets and corporate jets on the one hand, and aircraft such as the AWACS and C135 on the other. In particular, AFI KLM E&M can assist airlines operating their own design studios to implement their modification programs, with oversight during the preliminary project and during the cabin modification phase proper, and the provision of post-delivery maintenance. Where clients do not have their own design studio, the Group can take care of the entire process, from modification design to installation. The scope of modifications supported includes avionics suites, cockpit upgrades, IFE systems, and Live TV and web services. AFI KLM E&M leverages on its experience in VIP modifications to offer a comprehensive range of flexible services for outfitting and maintaining private and government aircraft. AFI KLM E&M infrastructure for cabin modification work is located at Roissy, Orly and Amsterdam.

D – Preventive maintenance for nacelles (FTR) With the development of new-generation aircraft, many carriers have been neglecting the preventive maintenance of their nacelles. This approach can cost them dear when it is necessary to carry out work following an incident. Depending on the aircraft type, it requires on average two unscheduled days of repairs and testing. For an airline, those unforeseen two days’ grounding amount to two days’ less operation, and major disruption and costs. Under the partnership approach offered to clients by AFI KLM E&M, the Group is seeking to raise their awareness about the benefits of anticipating any deterioration in their fleet’s engine nacelles. AFI KLM E&M

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consequently proposes on-wing inspections combined with an FTR maintenance program built into the aircraft’s own maintenance schedule to optimize AOG and operability. More generally, AFI KLM E&M receives on average one AOG per week and repairs up to 200 FTRs each year. Capital intensive engineering resources are required for substantial scale effects. This is a further benefit that AFI KLM E&M provides for its clients, namely the economies of scale derived from its maintenance of the Group fleet’s nacelles, a team of highly-skilled staff with a cumulative experience of over 50 years, and cutting-edge infrastructure featuring, among other benefits, four special ovens for curing composites. At the end of June 2014, AFI KLM E&M broke ground for Helios, its new dedicated Aerostructures facility located at Roissy Charles-de-Gaulle airport. Deployment of this industrial project, which amounts €45 million, will enable AFI KLM E&M to broaden its range of products and services and also to carry out R&D projects as part of an innovation policy designed to offer new high-value-added solutions for clients. The key objectives are to halve TAT and to be able to be a major player for the maintenance of new aircraft types such as the Boeing 787 and Airbus A350. In the future Helios will employ up to 300 highly qualified personnel. In addition, AFI KLM E&M and Aircelle (SAFRAN Group) have teamed up to create AMES, a joint venture for aircraft engine nacelle repair and maintenance in the Middle East (see p.16). AMES operates a state-of-the-art repair shop located in Dubai's Jebel Ali Free Zone. It also leverages the extensive human, technical and logistics resources of its two parent companies, enabling AMES to offer a comprehensive portfolio of customizable, mix & match services. In addition to repair and on-wing inspection, the service portfolio also includes management of a pool of nacelles spare parts and assistance in optimizing maintenance schedules.

E – Technical Training AFI KLM E&M Training provides effective technical training programs for a large variety of aircraft types and engines. With over 50 years of training experience, AFI KLM E&M guarantees high quality throughout its training programs, which are designed to achieve an optimal balance between theory and practice. AFI KLM E&M well-established operational background provides us with extensive knowledge of aircraft component and engine technology. AFI KLM E&M focuses on guaranteeing quality at competitive cost levels. Reliable high-quality training services and strict regulatory compliance are guaranteed.

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Training solutions use diverse methods including classroom teaching, Web Based Training (WBT), fixed base simulators, Computer Based Training (CBT), as well as practical courses with hands-on training and direct access to operating aircraft and Full Flight Simulators.

F – AFI KLM E&M capabilities ADAPTIVE SOLUTIONS Additional Services: Training, Logistics, Purchasing, Engineering, IT, Initial Provisioning Sizing AIRFRAME SERVICES

ENGINE SERVICES

Line, Base and Heavy Maintenance Pre operations phase in /out Fleet management On site support Cabin Engineering & Modifications VIP - Corporate conversions Aircraft Recovery Team Painting

Maintenance, Repair and Overhaul Parts and Accessory Repair Engineering Services On Wing Support Spares availability Hospital chain Engine Water Wash FTR services Health Monitoring

Airbus A320 Family A330/A340 A380

CFMI CFM56-3 CFM56-5 (5A, 5B, 5C) CFM56-7

Boeing 737 CG/NG 747 757/767 777 MD11

General Electric CF6-50 CF6-80C2 CF6-80E1 GE90-94/115 Engine Alliance GP7200

Regional ERJ 135/145 ERJ 170/190 Fokker 50/100 BAE 146

Pratt & Whitney PW4000-94 JT8D

COMPONENT SERVICES & APU Maintenance, Repair, Overhaul and Modifications Parts Availability Pool Access / Component Support Programs AOG desk (24hrs / 7days) Worldwide Logistic Solutions

Airbus A320 Family A330/A340 A350 A380 Regional ERJ 135/145 ERJ 170/190 CRJ 100/700 ATR 42/72

Boeing 737 CG/NG 747 757/767 777 787 MD11

APU 737 NG (GTCP191/9B) 777 (GTCP331/500) A330/A340 (GTCP331/350) E-jet (APS 2300)

III – Building a global MRO network P

Comprising subsidiaries and partners located all over the world, AFI KLM E&M’s MRO network guarantees clients local access to the full range of Group services, to special complementary solutions, and to local parts inventories. To bring it even closer to its customers worldwide, AFI KLM E&M is pursuing a strategy of developing facilities in the world’s most strategic regions. The program is designed to provide AFI KLM E&M clients with: ■ Quality of service while seeking to lower costs ■ Local service delivery for optimized TAT ■ Extended capabilities.

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A – Principal network facilities and centers of excellence

AAF Spares US From its Miami base, AAF Spares LLC offers component support, including trading (sales, loans and exchanges) and Base kit leasing for Airbus A320, A330/340 and Boeing 737, 757, 767 and 777 aircraft to aviation customers throughout the Americas region. Activity: Asset Management, Parts Trading.

AMES AFI KLM E&M and Aircelle (SAFRAN Group) have teamed up to create a joint venture for aircraft engine nacelle repair and maintenance in the Middle East. The 50/50 joint venture is headquartered in the Jebel Ali Free Zone in Dubai, United Arab Emirates. The new maintenance unit is backed by the combined expertise of an international MRO (aircraft maintenance) and a well-known OEM (equipment manufacturer). Together, the two partners offer clients throughout the region a portfolio of services covering all types of nacelles. AFI KLM E&M is a specialist for GE and CFM engine nacelles, and Aircelle for Rolls-Royce and GE models. The local nature of the joint venture means that regional clients will not need to move their aircraft outside the region. Activity: Nacelles repair and maintenance.

Aero Maintenance Goup (AMG) Based in Miami, Atlanta, and Blytheville, this 100% subsidiary is ideally situated to provide component services for clients in North America, Central and South America, and the Caribbean. Activity: Extensive component repairs and logistic support for a wide range of commercial and regional aircraft. Provided via: Aero Technologies (Miami), repair and overhaul services for pneumatic and hydraulic systems, avionics suites, and fuel, power generation and electromechanical systems; Air-Pro (Miami), cabin and safety equipment repairs and modifications, distribution of aerospace hoses, and sale of spare parts and Precision Electronics (Atlanta), maintaining and repairing electronic, electro-mechanical, hydraulic and pneumatic instruments and accessories, specifically for regional aircraft fleets.

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Aerotechnic Industries (ATI) The Royal Air Maroc (RAM) / AFI KLM E&M 50/50 joint venture has a maintenance facility at Mohammed V International Airport, Casablanca, equipped with three medium-haul aircraft maintenance bays. Jointly managed and backed by the AFI KLM E&M sales force, the business unit bolsters the regional position of the Group and of RAM by offering leading-edge maintenance services for A320 family and Boeing 737NG aircraft. Activity: A320 and 737NG airframe services.

AFI KLM E&M Components China End of 2013, AFI KLM E&M has been awarded CCAR 145 approval by the Civil Aviation Administration of China (CAAC) for its components maintenance shop located in Shanghai. With this new workshop, AFI KLM E&M can market a component support offering tailored to the unique characteristics of the Chinese aircraft maintenance market, where demand is mainly for component repairs carried out on Chinese territory and invoiced on a Time & Materials basis. In this system, a local presence is a decisive criterion for Chinese airlines, and by setting up in Shanghai, the AFI KLM E&M components shop is conforming to this requirement. The repair solutions provided by the shop start on Airbus A320 and Boeing 737 avionics systems. The Shanghai shop is set to develop its portfolio of services rapidly and extend it shortly to long-haul aircraft. Activity: component and component repair.

BARFIELD Barfield consists of 220 employees across its facilities in Miami, Phoenix and Louisville. Together with its sister company Aero Maintenance Group; Barfield is part of the AFI KLM E&M network, a major MRO provider. Barfield's core businesses are Component services, Airline programs, Distribution, Ground Support Test Equipment (GSTE) and Rotables & Trading. For more than two decades, Barfield has been supplying complete tailor-made support programs for A320 family, B737, Bombardier, Dash 8, ATR 42 & 72 and Embraer 170 & 190 to airlines in need of inventory and logistics solutions, repair management programs, engineering and fleet support, and component reliability management. 17

Bonus Aerospace Inc. A joint venture with AFI KLM E&M, Bonus Aerospace is a Miami-based FAA & EASA certified repair station specialized in PW4000-94 and JT8D engine support, from minor repairs to complex engine overhaul. Key strength is top-quality personalized service combined with extremely competitive prices made possible through use of reconditioned parts supplied by sister company, Bonus Tech, a highly-reputed player on the aircraft engine teardown market

Bonus Tech A Miami-based joint venture part of AFI KLM E&M’s global MRO network and major player on the aircraft engine teardown market for Repair Stations, Parts distributors, Airlines and Investors. Client portfolio includes the leading engine manufacturers such as GE and Pratt & Whitney. Activity: Disassembly, inspection, parts identification, parts trace tags, and full packaging solutions.

CRMA A subsidiary located just outside Paris specialized in repairing engine parts and combustion chambers. Activity: component and engine component repair.

EPCOR Netherlands-based (Amsterdam Airport Schiphol) EPCOR offers leading edge APU maintenance and pneumatics technology. Activity: overhaul and repair of pneumatic components and APUs. including APS5000 for Boeing 787 aircraft.

SPAIRLINERS A joint venture set up by Air France and Lufthansa Technik to offer full component support for all airlines operating the A380 and Embraer E-Jet worldwide. Activity: A380 and Embraer E-Jet component support.

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KLM Engineering UK Based in the United Kingdom (Norwich International Airport), KLM UK Engineering Limited is providing services to the narrow body and regional operator market. Via our Technical Training College we also provide EASA Part 147 services. KLM UK Engineering recently unveiled its brand new facility for the dismantling and recycling of aircraft. Activity: MRO services for narrowbodies, regional fleets and E-Jet.

MAX MRO Services Pvt. Ltd Located in a high growth aviation hub of India at Mumbai, Max MRO Services Pvt. Ltd. is a leader in the component MRO business for customers operating commercial aircraft fleets in India and the neighbouring regions. The company has been in operation since 1994 and has a good understanding of the local market conditions which has yielded in long-standing customer relationships. Max MRO Services Pvt. Ltd. offers component maintenance support for various aircraft types including pool and exchange and repair services as a part of the maintenance solutions package. Activity: component and engine component repair.

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B – AFI KLM E&M network

OSL HEL ARN

LED

CPH

SVO

NWI DUB

HAM WAW AMS PRG

LHR

KIX

HKG

TLS

BOS JFK

SDF

SFO

NRT

ICN

IAD

ALG

DFW IAH

PHX

TPE

FCO TUN

IST EVN

ATH

BAH

HAV

DXB

JED PTP

MNL

DKR

BKO

CCS

KUL

KWI

CAI

MIA MEX

BKK

K

BEY AMM

TIP

CMN

ALA

VCE

MXP BCN

MAD

ATL

LAX

PVG

PAR

YUL

YYZ

SEA PEK

KBP

CAY

SIN

ABJ

BOG

DEL BOM

NDJ

OUA

BLR

LOS PHC ACC DLA

ADD

UIO

NBO LAD LIM GRU

TNR

GIG

MRU RUN

JNB SYD

CPT SCL

Network Facilities Logistic Centers

EZE

Sales Offices AFKL Major Stations

A320 Family & 737NG Airframe services

Component services

Component services, GSTE & Distribution

Aerostructure services

Engine parts repair Component services

Airframe services

A380 & Ejet component services

Component Sales & Leasing

Component services

Engine tear-down

Engines JT8 & PW4000

APU services Pneumatic component services

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T

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T

I V

E N

E S

S

B

IV – Serving AIR FRANCE KLM group sustainability Sustainability in all its forms is central to AIR FRANCE KLM strategy. The Group has long been committed to environmental protection, promoting ethical behaviour, and supporting their communities. AFKL pursues a common policy, which the two airlines each apply using their own procedures and mobilizing all their resources. In line with these intentions, AFI KLM E&M brings to bear the diverse range of skills of its people in order to contribute the Group’s five Corporate Social Responsibility priorities: ■ Combat climate change ■ Reduce its environmental footprint ■ Build a lasting relation with customers ■ Pursue a responsible Human Resources policy ■ Contribute to local and international development

A – Initiatives benefiting AFI KLM E&M clients For many years now, AFI KLM E&M has been committed to a «green maintenance» approach, which consists in combining responsibility, innovation and the search for results, not only for the company but also for its environment and its stakeholders. This approach has already led to many beneficial initiatives for Group clients, including: ■ In June 2013, Air France Industries was able to renew its Global and Unique Certification for three years. For the past three years, AFI KLM E&M has benefited from this certification dubbed «Unique» because it concerns the whole of maintenance footprint in France, and «Global» because it embraces nine international benchmark standards. o o o o o o o o o

ISO14 001 (Environment) ISO 9001 (Quality Management) EN 9100 (Aircraft Design) EN 9110 (Aircraft Maintenance) EN 9120 (Logistics and Storage) ISO 22 000 (Food Safety) OHSAS 18 001 (Occupational Health & Safety) ISO 15 489 (Records Management) ISO 26000 (Sustainable Development)

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Leveraging continuous improvement for customers No other MRO operator or player can lay claim to this certification. The successive renewals also demonstrated proven mastery of aviation maintenance methods and of the continuous improvement systems in place. In addition to endorsing the optimization of MRO processes, the quality of the services delivered, and the dynamic improvement of performance, this Certification is also a guarantee of AFI KLM E&M’s trustworthiness for its customers. An environmentally-friendly paint procedure In partnership with the Mankiewicz Company of Germany, AFI KLM E&M has developed a new aircraft painting method. This protects the environment and improves occupational health & safety. The process uses chrome-free paint and requires less paint and harmful solvents. Because the coats of paint are thinner also, the aircraft are lighter and therefore burn less fuel, generating lower CO2 emissions. Engine water wash This maintenance process optimizes engine use, reduces fuel burn and CO2 emissions, and extends an engine’s on-wing lifespan. On the strength of its cutting-edge technology, AFI KLM E&M can wash engines in the hangar during A or C-checks without prolonging AOG time. The process is, naturally, carried out in an environmentally-friendly manner: the water used is recovered at each wash for recycling. Ecoshine® All 250 aircraft in the Air France fleet, including its A380s, will progressively be polished at Roissy Charles de Gaulle and Orly by service provider UUDS using its damp depollution technique which on average uses 8 cu.m. of water less per aircraft washed.

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B – Eco-responsible innovations In conjunction with AIR FRANCE KLM group strategy, AFI KLM E&M is continuously improving the energy performance of its equipment and facilities. Strict environmental criteria are taken into account whenever a decision concerning the launch of new infrastructure is taken. Several innovations illustrate this approach: ■ A program to recycle used aero engine parts has been set up in partnership with GE in line with the «cradle-to-cradle» philosophy, under which everything is recovered and nothing is thrown away. ■ Wherever technically possible, AFI KLM E&M installs solar panels on the roofs of its buildings in a bid to reduce overall energy consumption. ■ Long-standing efforts to reduce AFI’s water consumption are more than ever a reality. Over the past ten years accumulated savings of 352,000 cu.m. have been achieved, or the equivalent of the annual water consumption of a French town with a population of 30,000.

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APPENDIX

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Approvals and certification > US approvals FAR 145: FAA approved Repair Station: CNFY912C. > European approvals (EASA and DGAC) EASA Part 145, Part M subpart G, Part 21J, Part 21G, Part 147. > CAAC CCAR 145 approval by the Civil Aviation Administration of China (CAAC) for AFI KLM E&M components maintenance shop located in Shanghai. > Military approval AFI KLM E&M is the first MRO to obtain FRA145 and FRA21 military approval from the French Ministry of Defense for the maintenance of its military aircraft. > ANAC AMG was awarded by the National Civilian Aviation Agency of Brazil with the ANAC certification. (ANAC- Agência Nacional de Aviação Civil). > Other international approvals Over 30 approvals have been granted to AFI KLM E&M by a number of international authorities (notably CAAC), enabling the Group to work on aircraft registered in the countries concerned. > Certification AFI is the world’s only MRO to have obtained Global and Unique Certification covering nine international standards for all of its facilities: ISO14 001 (Environment), ISO 9001 (Quality Management), EN 9100 (Aircraft Design), EN 9110 (Aircraft Maintenance), EN 9120 (Logistics and Storage), ISO 22 000 (Food Safety), OHSAS 18 001 (Occupational Health & Safety) ISO 15 489 (Records Management), and ISO 26000 (Sustainable Development). In the Netherlands, KLM E&M’s avionics unit is also ISO 14 001 certified.

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Follow AFI KLM E&M > on your mobile: A short phone version of the AFI KLM E&M website is available for BlackBerry®, Apple iPhone® and Android® handsets.

mobile.afiklmem.com

> on Youtube:

youtube.com/user/afiklmem

> on Vimeo:

http://vimeo.com/afiklmem

> on Twitter: @afiklmem > on Linkedin: www.linkedin.com/company/air-france-industries-klm-engineering-&-maintenance

> on Instagram: http://instagram.com/afiklmem

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w w w . a f i k l m e m . c o m

m o b i l e . a f i k l m e m . c o m

IN A CHANGING WORLD WORLD, TRUST THE ADAPTIVE ONE

ADAPTIVENESS® is our response to the changing Maintenance Repair Overhaul business environment. ADAPTIVENESS® means listening to and understanding the key technical priorities of your operations, building unique solutions meeting your specific requirements, and staying at your side as a partner to support you through your daily challenges in a spirit of continuous improvement. If, like many other airlines around the world, you are looking for efficient MRO solutions which lead to longer on-wing times, optimized MTBRs, and overall performance, ask us about ADAPTIVENESS®.

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