E-NewsletterE-Newsletter Issue 1: January – June 2019

In This Issue

Message from BFS Management Team...... 2

Update News:

Welcome Airline Customers……….9

Events & Activities……………………10 “Guangxi Beibu Gulf Airlines” Inaugural Flight

BFS Visit & FAM Trip…………………12 23rd January 2019 – Flight Service (BFS) gave a warm welcome to flight crew of Guangxi Beibu Gulf Airlines BFS : Expand the Horizon…………13 (GX) on the occasion of handling the inaugural flight at . ..Page 9

Jeju Air 10th year anniversary BFS organized A-CDM Introductory Session

10th April 2019 - Bangkok Flight Services 29th January 2019 – Bangkok Flight Services (BFS) (BFS), warmly expressed congratulations to hosted Airport Collaborative Decision Making (A-CDM) for 10th year anniversary of flight Introductory Session in collaboration with Aeronautical operation based in . Radio of (Aero Thai). ..Page 10 Page… 11

BFSBFS NewsletterNewsletter IssueIssue 31: Sep Jan – –DecJune 2018 2019 www.BangkokFlightServices.com l 1 E-Newsletter

Message from BFS Management Team

Dear Aviation Colleagues and Friends,

During the first half of the year our Ground operations have continued to grow significantly, even with the cessation of service of our customer, Jet Airways, we have handled over 10% more flights in the first half of 2019 compared to 2018. Cargo volumes tell a very different story with handled volumes down over 9% in the first half of 2019 compared to 2018. Total volumes handled through both terminals in BKK are down 12.5% based on Jan-May data.

Historically air cargo is a strong benchmark for the global economy as it reflects growth in high value shipments and just-in-time inventory stocking. Usually the air cargo market sees the signs of economic downturn 6-9 months before the global impact and similarly sees the recovery 6-9 months before it has a global impact. Historic data indicates Stewart Sinclair we are heading quickly for a global downturn so we expect air cargo to Managing Director remain depressed for some time.

Passenger traffic tends to react much more slowly to downturns in the global economy as the effects of reductions in travel patterns are much slower. Historically business travel will start to tail off first, as companies see reductions in revenue and profitability, followed eventually by leisure travel as people become more concerned about spending their disposable income.

The world’s economy has been on an upward trend, except for a minor slowdown in 2015, since the last major downturn in late 2008 and through 2009, so a slowdown has been expected after the very strong growth in 2017 and 2018. The expected slowdown has been exacerbated by the Sino-US Trade War that has impacted both ’s growth and ultimately the global economy.

At BFS we have adjusted our resources to cope with both the growth of our Ground operation and the slowdown in our Cargo operations this year to ensure we remain at similar levels of productivity to previous years. We have very strong business tools to monitor our manpower and productivity on a daily basis and this has allowed us to be flexible during this time.

The continued growth of our Ground business has been especially challenging given the infrastructure restraints of BKK. Designed for 45 million passengers per year, BKK is currently projected to handle 67 million passengers in 2019.

Additional capacity is planned to be added with the new concourse, satellite 1, currently under construction and a new terminal in the planning stages. In the interim we will continue to plan and manage our day to day operations with our existing business tools which will be supplemented by our roll-out of telematics and our new PRM real-time planning tool, during 2019.

At Cargo we have been heavily involved with the issue of how to screen dense cargo to meet the EU and TSA requirements. As all of our stakeholders are aware, the requirements for the EU and US are similar.

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Message from BFS Management Team

Continued…

In most countries there is an established Regulated Agent programme, which allows for Freight Forwarders and Shippers to become regulated by the Civil Aviation Authority of that country. In Thailand this has been established for several years but only the Cargo Terminal Operators and Integrators have been part of this programme.

This means that, currently, all international shipments leaving BKK must be screened by one of the Cargo Terminal Operators or Integrators, in practice this means that all general cargo leaving BKK must be screened by either BFS or .

A further complication is that currently the Thai Regulated Agent programme is not recognized by the EU and so both BFS and Thai Airways have separately been validated by EU validators to become Regulated Agents under the EU RA3 (Regulated Agents from a third country) programme. The EU and US requirements to screen cargo requires the screener to be able to see sufficient detail of the cargo to ensure that an Improvised Explosive Device (IED) cannot be hidden in the shipment.

Where cargo shipments come packaged in such a way that the screeners cannot identify whether an IED is hidden then the shipment must be broken down to box level and re-screened using another approved screening methodology. Unfortunately some of the major exports from Thailand use electrical components that cannot be seen through and have needed to be broken down to meet EU and US requirements and this has caused some delays in processing this dense cargo at times.

All major stakeholders are involved in finding the most suitable solution and as such a bi-weekly meeting has been set up between AOT, BFS, TG, CAAT and the Freight Forwarders and Shippers, involved with processing these dense commodities, to facilitate them applying to be validated as conforming to the EU RA3 and/or KC3 (Known Consignor) programme.

This will allow these companies, once validated, to be able to deliver cargo to BFS and Thai Airways, through their secure supply chain, so that these shipments will not require re-screening at the cargo terminal. Once this has been achieved this should reduce any possible delays at the cargo terminals.

Bob, Colin and John all have interesting topics that they discuss during this newsletter and we welcome four airlines as highly valued new customers. You will see from the various events and happenings that it has been another busy half year at BFS and for this we thank all of our valued customers for the opportunity to serve you and also to thank you for your continued support and friendship.

Stewart Sinclair Managing Director

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Message from BFS Management Team

Dear Friends and Colleagues,

It’s been another exciting past 6 months for Thailand in general and BFS as well. We were taken by such an exceptional event as the Coronation of Our New King. This was followed by the long-awaited Government elections and the follow up to those elections.

On the business front, we see a very strong Baht but a first indication that the winds may be shifting in the economy with a noticeable downturn in the cargo business; which in the past has indicated a downturn in the overall economy.

Albeit the downturn in the cargo business, new business opportunities for BFS have flourished in the past few months. Robert Ruesz We have been delighted by the continuous growth of our Customer General Manager Airline business with the introduction of 4 new airlines that held their Sales and Ground Services inaugural flights to Bangkok in the past few months.

They are, “Guangxi Beibu Gulf Airlines”, “ Express”, “ Airways” and most recently, “” and a big warm welcome to our new Airlines.

They say “Time flies” and I would like to confirm that. In June, we celebrated the 10th anniversary of Jeju Airlines operating to Bangkok. I really could not believe that it has been 10 years already.

Hence if 10 years ago feels like yesterday, then the next 5 years are just around the corner. Today is therefore the time to evaluate and forecast how the business environment will evolve in the next 5 years, so we may create a clear path towards our business objectives.

To give us a perspective on the next 5 years, BFS invited Cpt. Puttipong Prasartthongosoth, CEO of , to share his 5 years vision with us. My takeaway from this is that BFS must remain Customer centric, but also must continue to recognize and invest in existing and future technologies, with the aim to improve services and remain cost competitive, offering value for money to our customer airlines.

The speed at which technology is advancing was confirmed to us through an insightful presentation “Transformation” from the AIS CEO, Khun Somchai Lertsutiwong. I really appreciate the opportunity to hear and learn how other companies operate their businesses, discover their visions, and understand some of their challenges and opportunities.

Whatever the business, we are all similar, with a vision, an objective, people, products and services to manage and deliver, with the aim to make a profit to further stimulate our shareholders to believe in us.

For now, we are going to focus on the next 6 months, as we will roll into peak season again very shortly.

One key focus area for us is that PRM (Passengers with Reduced Mobility) have increased every month year to year. It has become a real challenge to manage these requirements and provide the expected level of service due to so many short advance notice requests and variable daily requirements. The requirement will vary from 250 to 400 wheelchairs being required for one given day to the next.

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Message from BFS Management Team

Continued…

We have therefore looked towards our in-house IT team to develop a better way to plan, allocate, track, time stamp and invoice for services. We are currently in the trial period and plan to roll it out in August and look forward to sharing it with you.

As we add customer airlines to Suvarnabhumi airport, we also add passengers. Our terminal and ramp facilities here are meant to handle 45M passengers and we are well beyond those numbers. This means that we all need to work smarter, maximize and share the facilities in the most efficient ways. We know that this means sharing common facilities, counters and systems. Automating with Self Check-in and Bag-Drop throughout the airport, API, Bio-Metrics, Facial recognition at boarding , etc…It’s no longer rocket science and many around the world are already there. What are we waiting for?

Until next time, have an enjoyable and relaxing summer, stay out of the rain and drive carefully.

Robert Ruesz General Manager, Sales and Ground Services

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Message from BFS Management Team

Dear Aviation Colleagues and Friends,

We have taken delivery of 2 new Ambulift machines for boarding, disembarking and transporting passengers with reduced mobility. These ambulifts were built in Thailand by CTV CHO to a very high quality specification.

ABL-003 adds a capability of serving the ATR to our fleet as well as serving all narrow bodies and the main deck of wide body aircraft. Whilst the XXL size ABL-004 will serve all wide bodies and reach the upper deck of the A380. Colin Temple Director, Also with the A380 in mind, we have received our new trailer mounted Air Ramp Operations Start Unit from TLD.

These new units will enter service as soon as operator training has been completed and should enhance our performance on ad hoc and short notice service delivery.

Selection process for the equipment, we will add to the GSE fleet this year is underway. Pushback tractors and tow bars along with main deck loaders are on the shopping list.

Our GSE Maintenance team led by Kevin Robins have done an outstanding job to reduce the backlog of equipment out of service. The mountain of equipment in our maintenance yard that Kevin inherited from the previous incumbent has been reduced to manageable proportions. As the previous incumbent, and his customer, I am both impressed and grateful.

Our telematics supplier, Quantum, will be delivering the first shipment of ‘black boxes’ shortly and we will start installation on our logistics tractor fleet. Hopefully, all our motorized equipment will be fitted by the end of the year.

Colin Temple Director, Ramp Operations

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Message from BFS Management Team

Dear Aviation Colleagues and Friends,

Year 2019 …The only certainty is that there will be uncertainty…

In general, the global economy is predicted to grow 3.6% in 2019 depending on which economic viewpoint you agree with. More than a year into the tariff war between the U.S. and China, officials are still in the process of negotiating a deal to end the standoff with no defined end date; hopefully soon. Easing trade tensions could support China’s John Yep growth and momentum in global trade, both of which would benefit Director, emerging markets. Cargo Service Delivery

With anticipated escalation in trade conflicts, a contraction in world trade could drag down the global economy even more. At the same time, the combined effects of rising interest rates and surging equity and commodity market volatility mean that financial conditions worldwide are tightening. These risks point to the increasing vulnerability of the global economy to further shocks, and the rising probability of a recession in the next couple of years.

On a positive note; the world's second-biggest economy (China) grew slightly more than expected in the first quarter of 2019, It expanded by 6.4% compared to a year ago, beating economists' forecasts of 6.3%.

Locally, BFS cargo volumes for Year 2019 first quarter reflected an overall negative trend versus year 2018. Based on current economic indicators, we anticipate this trend to continue in the 2nd quarter with 3rd quarter cargo volumes expected to increase (keep our fingers crossed!).

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Message from BFS Management Team

Continued…

Adjacent is the latest results of the AOT IC Survey for January to June 2018, although results are positive, we continue to encourage our Cargo operational staff to be service driven; encouraged by BFS providing specialized management training events and individual recognition awards.

Remark: 53 airlines contacted in this survey of which 30 had responded or considered as 56.60% of the total.

We have refreshed our staff uniforms for year 2019; improvements on materials and visibility to ensure our staff are comfortable and highly visible ensuring a safer working environment. With positive reinforcement and continuous improvements, BFS cargo staff safety/injury performance results continue its positive downward trend. A recent challenge involving “dense cargo” has developed with BFS cargo taking the lead in organizing local stakeholders (TG, ASM, AOT, TAFA, Electronics Shipper Association) in meeting with the appropriate Government authorities to discuss a long-term solution in protecting local & country export commodities. The BFS Cargo team in year 2019 will continue to meet local and global challenges with our defining qualities, innovations and customer service initiatives. I think it’s fair to say that BFS Cargo has played a significant role in shaping the local cargo community; leading the way with e-initiatives, implementing global John Yep security regulations and customer service improvements. Director, Cargo Service Delivery

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Guangxi Beibu Gulf Airlines (GX) Hong Kong Express (UO)

23rd January 2019 – Ms. Rungtiwa Senawong, 31st March 2019 – Ms. Rungtiwa Senawong, Director Director – Government Relations and Ms. Usawadee – Government Relations together with BFS Sangpum, Director Passenger and Ground Support representatives, gave a warm welcome to flight crew Services and BFS representatives, gave a warm of Hong Kong Express (UO) on occasion of handling welcome to flight crew of Guangxi Beibu Gulf Airlines the inaugural flight at Suvarnabhumi Airport. (GX) on the occasion of handling the inaugural flight Hong Kong Express has chosen BFS as at Suvarnabhumi Airport and choosing BFS as business partner in providing ground handling services business partner in providing ground handling in passenger, ramp and cargo. services in passenger, ramp and cargo. BFS presented Certificate of Appreciation and BFS presented Certificate of Appreciation and welcome flower basket to Captain Fabricio Fabre and welcome flower basket to Ms. Ajcharaphan Adam, crew. Station Manager Bangkok.

Cambodia Airways (KR) Lucky Air (8L)

th 11 April 2019 – Ms. Rungtiwa Senawong, 1st July 2019 – Ms. Rungtiwa Senawong, Director – Director – Government Relations together with BFS Government Relations and Mr. Poonyot Thiapairat, representatives, gave a warm welcome to flight Director – Strategy and Business Development crew of (KR) on occasion of together with BFS representatives, gave a warm handling the inaugural flight at Suvarnabhumi welcome to flight crew of Lucky Air (8L) to celebrate Airport. the inaugural flight and for choosing BFS as business Cambodia Airways has chosen BFS as partner in providing full services in passenger, ramp business partner in providing ground handling and cargo. services in passenger, ramp and cargo. BFS presented Certificate of Appreciation and BFS presented Certificate of Appreciation welcome flower basket to Captain and crew and welcome flower basket to Captain and crew

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Events & Activities

Thai Vietjet New Year Party 2019 “Blooming in the Sky”

24th January 2019 - Bangkok Flight Services (BFS), represented by Ms. Rungtiwa Senawong, Director - Government Relations, together with Mr. Ekpol Mekvishai, Contract Manager, participated Thai Vietjet New Year Party 2019 “Blooming in The Sky” at Amaranth Suvarnabhumi Airport Hotel. BFS presented the basket flower to Ms. Nguyen Thi Thuy Binh, Chairwoman of , for the congratulations on this special occasion.

BFS organized A-CDM Introductory Session

29th January 2019 – Bangkok Flight Services (BFS) hosted Airport Collaborative Decision Making (A-CDM) Introductory Session in collaboration with Aeronautical Radio of Thailand (Aero Thai) to enable better understanding of A-CDM and enhance cooperation among all stakeholders.

The introductory session, held at Novotel Bangkok Suvarnabhumi Airport Hotel, was well acknowledged and participated by BFS airline customers and AOT representatives.

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Events & Activities

QR Safety Campaign Season 3 Immigration Division2 Football League 2019

31st January 2019 – Bangkok Flight Services (BFS) 28th February 2019 – Bangkok Flight Services (BFS) participated in “QR Safety Campaign Season 3” represented by Mr. Wisutthipon Raphiphan, Command organized by . This safety session was and Control Center Shift Manager and Mr. Aditep conducted by Mr. Lasantha Wijithananda, Qatar Aroonroj, Load Control Manager, participated in the Airways – Bangkok Airport Service Manager to promote Immigration Division 2 Football League 2018 for the safety awareness in the workplace and was purpose of enhancing positive relationships between participated by BFS Safety & QA department as well as Immigration Division 2 and BFS. ramp operations department.

WFS PG Cargo Sponsored Jeju Air 10th Anniversary "3rd Air Cargo Golf Tournament 2019" Route Inauguration

23rd May 2019 – Mr. Stewart Sinclair, Managing Director, and Mr. Robert Ruesz, General Manager Sales and Ground Services participated in the 3rd Air Cargo Golf (AGC) Tournament 2019, mainly sponsored by th WFS PG Cargo (BFS Cargo), held at Thana City Country 10 April 2019 - Bangkok Flight Services (BFS), Club, Bangna – Trad to strengthen relationships among warmly expressed congratulations to Jeju Air for 10th members of the Air Cargo Community. year anniversary of Bangkok – Incheon route inauguration at Suvarnabhumi Airport. Mr. Robert Ruesz, General Manager Sales and Ground Services together with BFS Directors, warmly presented souvenirs to Mr. KIM MYEONG JIN, Jeju Air Station Manager, and staff members.

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Bangkok Airways (Airport Operations)

5th March 2019 - Bangkok Flight Services (BFS) welcomed a group of Airport Operations from Bangkok Airways for familiarization trip with BFS. Mr. Robert Ruesz, General Manager Sales and Ground Services, together with the Directors and department managers presented the capabilities and procedures of in-house IT system applied in BFS daily work operations which could effectively facilitate and enhance the service delivered to our airline customers.

Airports of Thailand Public Co., Ltd. (AOT)

6th May 2019 – Bangkok Flight Services (BFS) welcomed a group of Public Co., Ltd. (AOT) led by Wing Commander Suthirawat Suwanawat, General Manager of Suvarnabhumi Airport, together with AOT executives for familiarization trip with BFS.

Mr. Robert Ruesz, General Manager Sales and Ground Services, Ms. Somruthai Prasarttong – Osoth, Director of the Company and BFS Directors together with department managers presented and explained key roles and responsibilities, key project development and key issues to develop mutual understanding and overcome any difficulties found in ground operations delivered by BFS.

Bangkok Airways (Head Office)

15th May 2019 - Mr. Robert Ruesz, General Manager Sales and Ground Services, together with Directors and department managers welcomed and escorted the group of Bangkok Airways to visit and observe the operation procedures of various departments including Passenger Service, Ramp Operations, Cargo Warehouse and Operations, and Safety and Quality Assurance.

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Direction of Bangkok Airways in Next 5 Years

13th February 2019 - Bangkok Flight Services (BFS) hosted the exclusive Discussion Session: “Direction of PG in the Next 5 Years” at Bangkok Air Catering Suvarnabhumi Airport.

The objectives are to broaden the knowledge and awareness towards key movements and strategic directions, both industry and corporate as well as allowing perspectives, opinions and suggestions to be shared and discussed among the management team namely Vice Presidents of Bangkok Airways, Executives of Bangkok Air Catering and Directors of Bangkok Flight Services.

On this occasion, Capt. Puttipong Prasarttong- Osoth, President of Bangkok Airways Public Capt. Puttipong Prasarttong-Osoth Mr. Stewart Sinclair (left) Company Limited, was cordially invited as a President Bangkok Airways Ms. Somruthai Prasarttong – Osoth (right) launch speaker of this session. Public Company Limited

AIS Talk – Transformation

This special discussion session was exclusively delivered by the Executives of Advanced Info Service Public Company Limited (AIS), Mr. Somchai Lertsutiwong, Chief Executive Officer, and Mr. Pratthana Leelapanang, Chief Consumer Business, to share the key challenges in mobile network and telecommunication service industry while discussing on core values implemented in AIS corporate culture which mainly focuses on people management and development.

Mr. Somchai Lertsutiwong Chief Executive Officer AIS

30th April 2019 - Bangkok Flight Services (BFS) hosted the special Discussion Session: “AIS Talk - Transformation” at Bangkok Air Catering, Suvarnabhumi Airport.

On this occasion, the perspectives have been significantly expanded and shared among Vice Presidents of Bangkok Airways, the Executives of Bangkok Air Catering and the Directors of Bangkok Flight Services. The discussion session also brought about and resulted in the positive business relationships of all stakeholders. Mr. Pratthana Leelapanang Chief Consumer Business AIS

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BFS Explain

22nd May 2019 - Bangkok Flight Services (BFS) hosted the Discussion Session: “BFS Explain” at Bangkok Air Catering Suvarnabhumi Airport.

Mr. Stewart Sinclair, Managing Director, Mr. Robert

Ms. Usawadee Sangpum Ms. Rungtiwa Senawong Ruesz, General Manager Sales and Ground Services Director Director Passenger and Ground Support Services Government Relations and Ms. Somruthai Prasarttong-Osoth, Director, together with BFS Directors presented how each BFS department performs and explained key development plans to expand the overall understanding of BFS functions among the Vice Presidents of Bangkok Airways, Bangkok Airways Management Team and Mr. Colin Temple Mr. Kevin Robins Director Director Executives of Bangkok Air Catering. Ramp Operations Ground Services Equipment Maintenance

Mr. Crispin Morris Ms. Suporn Thiravanitkul Director Chief Financial Officer Systems and Information Technology

Mr. Stewart Sinclair Managing Director

Mr. Pinij Nantawannakul Mr. John Yep Director Director Cargo Operations Cargo Service Delivery

Mr. Robert Ruesz General Manager Sales and Ground Services Mr. Smartorn Bhundhoombhoad Mr. Paisan Mongkolsubgul Human Resources Director Security Director

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