To represent, lead and serve the airline industry

Prospects for the global air Prospects for the global air transport systemtransport systemПЕРСПЕКТИВЫ ДЛЯ ГЛОБАЛЬНОЙ ПЕРСПЕКТИВЫ ДЛЯ ГЛОБАЛЬНОЙ СИСТЕМЫ ВОЗДУШНОГО ТРАНСПОРТАСИСТЕМЫ ВОЗДУШНОГО ТРАНСПОРТА

Guido GianassoVice President, Human Capital

2

IATA Leading ChangeIATA Leading Change

Strong recovery from recessionStrong recovery from recessionБЫСТРОЕ ВОССТАНОВЛЕНИЕ ПОСЛЕ КРИЗИСА

Source: IATA

International air freight and passenger volumesseasonally adjusted

160

180

200

220

240

260

2005 2006 2007 2008 2009 2010 2011

RP

K, b

illio

ns

9

10

11

12

13

14

FT

K, b

illio

ns

RPK

FTK

World trade rising strongly into 2011World trade rising strongly into 2011УРОВЕНЬ МИРОВОЙ ТОРГОВЛИ СИЛЬНО ВЫРАСТАЕТ К 2011

Source: IATA, Netherlands CPB

World trade in goods and air FTKsSource: Netherlands CPB and IATA

9.5

10.5

11.5

12.5

13.5

14.5

2006 2007 2008 2009 2010 2011

Bill

ion

FT

Ks

120

130

140

150

160

170

inde

x of

wor

ld t

rade

, 20

00=

100

International FTKs(left scale)

World trade (right scale)

Business confidence and travel strongBusiness confidence and travel strongУВЕРЕНОСТЬ В БИЗНЕСЕ И ПЕРЕМЕЩЕНИИ РАСТЕТ

Source: IATA, Markit

Premium Travel and Business ConfidenceSource: IATA,PMI

-30

-25

-20

-15

-10

-5

0

5

10

15

20

2006 2007 2008 2009 2010 2011

% C

ha

ng

e o

ve

r Y

ea

r

30

35

40

45

50

55

60

65

Co

nfi

de

nc

e I

nd

ex

Business Confidence

Premium travel growth

Asian economies continue to boomAsian economies continue to boomЭКОНОМИКА АЗИИ ПРОДОЛЖАЕТ РАСТИ

Source: IATA, Netherlands CPB

Industrial production

60

70

80

90

100

110

120

130

140

150

160

2007 2008 2009 2010 2011

Inde

xed

to e

qual

100

in 2

007

Japan

EuropeUS

MENA

Latin America

Non-Japan Asia

Middle classes drive travelMiddle classes drive travelGlobal middle class in 2009 and prediction for 2030

РОСТ УРОВНЯ СРЕДНЕГО КЛАССА В 2009 г И ПРОГНОЗ РОСТА К 2030 г.

North America

Central & South America

Europe

Middle East &North Africa

Sub Saharan Africa

Asia Pacific

100mn500mn

1bn 20092030

US consumers getting into better shapeUS consumers getting into better shapeУЛУЧШАЕТСЯ ПОКУПАТЕЛЬСКАЯ ВОЗМОЖНОСТЬ В США

US consumer debt and payrolls

-3500

-3000

-2500

-2000

-1500

-1000

-500

0

500

1000

1500

2000

1995 1997 1999 2001 2003 2005 2007 2009 2011

cha

ng

e in

pa

yro

lls,

00

0s

80%

90%

100%

110%

120%

130%

De

bt

as

% a

nn

ua

l in

com

e

Consumer debt/income(right scale)

Change in jobs(left scale)

Source: Haver

Threat from European debt crisis continuesThreat from European debt crisis continuesУгроза европейского долгового кризиса продолжается

Government bond yields

0

2

4

6

8

10

12

14

2006 2007 2008 2009 2010 2011

%

Greece

Ireland

Portugal

Spain

Italy

US

Germany

Source: HaverSource: Haver

Strong demand will keep oil prices highStrong demand will keep oil prices highВЫСОКИЙ СПРОС БУДЕТ ДЕРЖАТЬ ВЫСОКУЮ ЦЕНУ НА НЕФТЬ

Source: Platts, Bloomberg

Jet Fuel and Crude Oil Price ($/barrel)

20

40

60

80

100

120

140

160

180

200

Jan03 Jan04 Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11

Jet fuel price

Crude oil price (Brent)

Futures curve

Fuel prices will squeeze airline profitabilityFuel prices will squeeze airline profitabilityЦЕНЫ НА ТОПЛИВО БУДУТ СОКРАЩАТЪ ПРИБЫЛЬ АВИАКОМПАНИЙ

Source: IATA

Global commercial airline profitability

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10E

20

11F

20

11F

20

11F

% r

eve

nu

es

-20

-15

-10

-5

0

5

10

15

20

US

$ b

illio

n

Net post-tax losses(right scale)

EBIT margin(left scale)

$96

$120

$150

12 Copyright 2011 © Professor Michael E. Porter

Profitability of Selected IndustriesROIC, 1999 – 2009

Return on invested capital, 1999 – 2009 average

0% 5% 10% 15% 20% 25% 30%

Transit & Passenger TransAir Transport, Scheduled

Cable And Other Pay Tv SvcsAir Courier Services

Auto Rent & Lease,No DriversTrucking, Except Local

Hotels And MotelsRailroads,Line-Haul Operatng

Electric ServicesArrange Trans-Freight, CargoAirports & Terminal ServicesAircraft Engine,Engine Parts

Water TransportationAircraft

Air Transport, NonscheduledDeep Sea Frn Trans-Freight

Engines And TurbinesAircraft And Parts

Aircraft Parts, Aux Eq, NecTrucking,Courier Svc,Ex AirTelephone Communications

ROIC = Earnings before interest and taxes divided by invested capital less excess

cash

Source: Compustat , author’s calculations

Asia driving future industry growthAsia driving future industry growthАЗИЯ УПРАВЛЯЕТ БУДУЩИМ РОСТОМ ИНДУСТРИИ

Source: IATA

Additional passengers 2014 vs 2009

0

50

100

150

200

250

300

350

400

Within AsiaPacific

Within Europe Within NorthAmerica

Within LatinAmerica

Within MiddleEast

Pa

ss

en

ge

r N

um

be

rs (

Mil

lio

n)

InternationalDomestic

Significant expansion over last decadeSignificant expansion over last decadeЗНАЧИТЕЛЬНОЕ РАСШИРЕНИЕ ЗА ПОСЛЕДНИЕ 10 ЛЕТ

Source: IATA / Ascend

2000 2010

Available seats per week 687,000 1.8m

Russian airline fleet 1,375 1,040

Russian FederationRussian Federation

Strong passenger and freight outlookStrong passenger and freight outlookСИЛЬНЫЙ РОСТ КОЛ-ВА ПАССАЖИРОВ И ПЕРЕВОЗОК

Source: IATA

Annual growth 2010-2014

4.7%

6.5%5.9%

8.2%7.4%

11.0%

0%

2%

4%

6%

8%

10%

12%

Passenger numbers Freight tonnes

Eu

rop

e

Wo

rld

Ru

ssia

n F

ed

era

tion

Eu

rop

e

Wo

rld

Ru

ssia

n F

ed

era

tion

SummarySummary

Source: IATA

Multi-speed recovery from recessionMomentum for growth remainsOil price and capacity growth pose

challenges to profitabilityEmerging markets, including Russia, driving

longer term growthInfrastructure and industry systems must

develop to enable this growth

17

Looking aheadLooking ahead

Wisdom from VISION 2050

We know that…We know that…

Population and GDP growth are leading to ongoing rise in demand, especially in BRICs/emerging markets

Clear uncertainties: technology, fuel, climate change, politics/regulation/taxation

Huge technology/capacity challenges - will struggle with the numbers: bigger aircraft (or thousands more), bigger/more hubs etc

In terms of consumers…In terms of consumers…

For consumers:Need for faster/simpler processes (check-in,

security, boarding, immigration, customs)

More diverse customer base means greater flexibility and training demands on staff

Much greater differentiation/segmentation and new niches to service

Public attitudes may become less benign with growth

20

IATA PrioritiesIATA Priorities / ПРОРИТЕТЫ ДЛЯ ИАТА

1. Safety & Security

2. Environment

3. Simplifying the Business

4. Financial

5. Regulatory

21

Safety / Safety / БЕЗОПАСНОСТЬБЕЗОПАСНОСТЬ

• Joint safety report under data sharing agreement with ICAO, EU and US

• IOSA recognition by European Aviation Safety Agency

22

Security / Security / ОБЕСПЕЧЕНИЕ БЕЗОПАСНОСТИОБЕСПЕЧЕНИЕ БЕЗОПАСНОСТИ

• Acceptance of a test phase by two regulators of a common “Checkpoint of the Future”

23

EnvironmentEnvironmentОКРУЖАЮЩАЯ СРЕДАОКРУЖАЮЩАЯ СРЕДА

• Achieve progress on Sesar and Next Gen

• Avoid global climate-related tax on passengers, carbon or fuel

24

Simplifying the BusinessSimplifying the Business / / УПРОСТИТЬ БИЗНЕСУПРОСТИТЬ БИЗНЕС

• Fast Travel: 5 major airports with all five Fast Travel initiatives

• E-services: 40 airlines, 6 GDS

• Baggage Improvement Program: 60 diagnosis visits, 70 self-help airports

• E-freight: 10% penetration for trade lanes in 2010

25

Financial / ФИНАНСЫFinancial / ФИНАНСЫ

• US$3 billion Savings/Cost avoidance, US$1.5 billion in real cost reduction

• IATA Settlement Systems – consolidation into Regional Hubs by 30 June 2011

Amman, Beijing, Madrid, Miami, Singapore

26

Regulatory Regulatory ПРАВИЛАПРАВИЛА

• One regulator’s acceptance of pilot training initiative, including multi-crew pilot licensing and evidence based training

• Prevent regulatory action on World Scheduling Guidelines

27

Commercial Budget 2011Commercial Budget 2011

КОММЕРЧЕСКИЙ БЮДЖЕТКОММЕРЧЕСКИЙ БЮДЖЕТ 2011 г.

Revenue: US$149 million

Net Surplus: US$75 million

28

How do we achieve all these Global How do we achieve all these Global Priorities?Priorities?

• Money

• Ambition

• People

29

IATA Training and Development IATA Training and Development Institute (ITDI)Institute (ITDI)

Developing a new generation of aviation leaders

30

About usAbout us ITDI is the “training arm” of

IATA and provides tomorrow’s air transport leaders with the latest knowledge and skills needed to address the industry’s ongoing challenges

31

Facts & FiguresFacts & Figures 30 Diploma programmes

(23 Classroom & 7 Distance Learning)

45 ITDI Employees worldwide

170 Instructors & consultants

Total 27,485 participants trained in 2010:

4,545 Classroom & Regional courses

3,117 In-Company courses

19,823 Distance Learning + e-Learning

32

ITDI around the world….ITDI around the world….10,408 participants trained in 2008 by attending 494 classes worldwide

● BJS

● SIN

AMM

JNB

● GVA

● MIA

● YMQ

CAI

WAW

● DEL

● IATA Training Centres

Regional Training Partners

ADD

NBO

HKG

33

Our Training ProgrammesOur Training Programmes

– Safety

– Security

– Regulation & Compliance

– Operations & Infrastructure

– Management– Leadership & Human

Performance– Travel & Tourism– Starting your career in

Aviation

Diploma programmesComplete all Required courses within 3 years

http://www.iata.org/training/diploma_programme

Full service training & professional development organization providing 225 different Certificate courses & 30 Diploma programmes in these areas of study:

34

Course Delivery TypesCourse Delivery Types

Four delivery channels: Classroom courses Regional courses In-company courses Distance and e-Learning courses

35

Airline Training DiplomasAirline Training Diplomas Senior Diploma in Airline Management

Diploma in Safety Management for Airlines

Diploma in Airline Quality Management

Diploma in Air Law

Diploma in Revenue Accounting & Control – Passenger Stream

Diploma in Airline Operations

Diploma in Airline Cost Management

Diploma in Aviation Studies – Airline Stream (Distance Learning)

36

Academic PartnershipsAcademic Partnerships

THANK YOU…..THANK YOU…..