Unisys Corporation Overview

Baggage security and industry productivity

The account for and authorise baggage reconciliation system service project

June 2016 Topics

• BARA and international aviation • Baggage security requirements • Voluntary collective negotiations There are currently some 30 BARs around the globe

Common activities • Support safe and efficient aviation • Unified voice on industry issues

BARA specific • Voluntary, non-binding collective negotiations • BARA has ‘authorisation’ from the Australian Competition and Consumer Commission AAA BRS – match passengers to bags to flights

Airline operating requirement • Part of each airline’s Transport Security Program (TSP) • Purchased by airlines but primarily used by ground handlers • Cloud based service common to all airlines through individual agreements Supports improved baggage outcomes • Productivity tool for ground handlers and airlines A short history on AAA BRS

• BARA managed a competitive tender process in 2002 • Unisys awarded in 2003 • Extension from 2009 to 2014 – formally included Unisys in BARA’s 2010 ACCC Authorisation • Two year extension to March 2016 • Current agreement to March 2020 Voluntary negotiations - Project dynamics

Key BARA considerations • Time and resources vs other key service & price negotiations • High service delivery and support outcomes to date • Options available to some airlines

What did BARA want? • System that works – managed service provider – proactive management of issues – ability to work with airlines, ground handlers and airports $1.4 billion annual spend • Innovation in new offer • Outcomes-focussed agreement Voluntary negotiations - outcomes

1. Executive decision to go with direct negotiation – forecast price reduction (about 20% in real terms by March 2020) – transparency and clearer accountabilities – experience in dealing with multiple airlines for a cloud based service – high service quality outcomes and support – sound understanding of airline security requirements – still upset some airline IT departments 2. More concise and clearer agreement 3. Seamless transition to new service (40 airlines) BARA’s Members

AIRCALIN GARUDA INDONESIA