Changing Airline Environment and Need for Personnel and Skills

1. CHANGING AIRLINE ENVIRONMENT AND NEED FOR PERSONNEL And SKILLS ALBERTO BAZZAN IATA-ITDI BUS.DEVP [email_address]

2. FEBRUARY 2010 PASSENGER KM FLOWN y/y +9.5% 2Y-1.4 FREIGHT TONNE KM FLOWN Y/Y +26.5% 2Y-3.0 Load factor 75.5% and recovering IN 2-3 MONTHS ( , IN MAY-JUNE 2010) THE INDUSTRY WILL BE BACK TO EARLY 2008 LEVEL After a 27-30 months recession LOW COST growing + Industry consolidation First/Club decreasing Economy growing First Flight of the SolarImpluse airplane

3. Demand has risen faster than expected Source: IATA

4. Load factors are back to Source: IATA

5. Positive EBIT but industry in net loss 2010 Source: IATA

7. LUFTHANSA SEES RISING PASSENGER AND CARGO LEVEL Business Week, 13 April 2010 USA: German airline group Deutsche Lufthansa AG says its March passenger and cargo level rose by more than 30 percent last year. The Cologne-based company said Tuesday overall March passenger levels rose by 34.3 percent to 7.5 million while the group's cargo showed a 31.9 percent improvement in tonnage. Group passenger load factor for the month, a measure of how full airplanes are, rose by 3.2 percent to 78.6 percent. For the first quarter ending March, Lufthansa reported an overall passenger level increase of 26.5 percent to 19.03 million compared with last year. Lufthansa is Europe's largest airline group by sales. It owns or holds stakes in carriers including Swiss International Airlines, Austrian Airlines and British Midland.

8. Impact of market waves on personnel fewer hire consolidate experts industry less attractive pressure on cost of labor pension age moving ahead AND baby boomers approaching retirement

9. And , what about education ? East Europe , Asia, Pacific , Latin America , Africa Still on demographic renewal Room for basic , introductory training Europe , USA Static Demographic need for expert , high level training, linked to cost optimization Safety & Security Cargo Airport operations Marketing , extended to the entire value chain ground transportation , shopping , real estate Mgmt of complexity

10. IATA Training & Development Institute ITDI The training “arm” of IATA 32 Diploma programs Over 190 courses 6 international training centers worldwide 200 Instructors & consultants worldwide 230 Allied schools worldwide