Bombardier Customer Services Customer Web Seminar Andy Nureddin, VP, Customer Services & Support January 26th, 2011 1 Agenda 2010 Review 2011 Plan to put You. First. Q&A session 2 Progress on Our commitments to you for 2010 Aircraft Reliability and • Close 57 Top In-Service Issues 3 Closed 52 issues to date Quality Installed 735 components • Implement RIMP 1 on 100 a/c 3 on 176 a/c to date • Launch Supplier Management & maintenance engineering teams 24hr worldwide support • Implement Regional Support Office Strategy • Increase International Support Staffing • Accelerate NFF improvements AOG Parts • Increase Parts Inventory Worldwide Service and Maintenance • Add Maintenance Capability in Europe & China Support and Training • Worldwide Simulator Expansion • Launch Delivery Teams Customer Care • Increase Customer Advisory Awareness in Operator Community 3 Closed 52 Top In-service Issues M45 Standby Gyro Reliability Ram Air Regulating Valve HSTAB pin lubrication ISI battery Safety Valve Opening in Flight M45 Aileron Quadrant/Spindle SB Hydraulic SOV Maintainability - Separate LRU for Actuator and Motor M31A AHRS Support Full Load of Fuel issues Refuel/Defuel Manifold Leak M45 HP Shut-off Value CL300 ADS-B Out RAT Manual Release Cable Bellows Redesign M45 Spoiler Rigging Lavatory/Baggage Door - Hard To Close Aileron Trim Galley Chiller M45 TR Switch Harness Reliability Cabin Emergency Lighting Water Tank - 13 USG M45 Emergency Batter Connector EMTEQ EXIT sign Access Landing Gear Corrosion Water Tank Pressurized System Oxygen Panel Deploy Switch M60 Tire Pressure Measuring Side ledge panel lids not user friendly Passenger Door Telescopic Strut System Assembly EVAC Rinse Valve Brake Accumulator Leakage M45 HP Shutoff Valve CTU, AEROCOM 3000 Phone Brake Shutoff Valve M45 Ground Plug Bonding Problems FIREX Control Unit Cockpit Quick Reference “Gotcha” List AFD Harness damage Equipment, Digital, Tapping DBU 5000 & CL604 ADS-B Out Hose Assembly (Heater Blanket Fouling) LAV inspection Accumulator leakage Oxygen bottle leaks ACU exhaust duct corrosion Display Unit Tail cone/Tank MMEL relief Brake Assy Corrosion Inspection CL605 CDU6200 & CL604 EFD4077 Pilot Static Drain ECS Single Pack Operation, cancelled Windshield Wiper Removal 4 DBU 5000 Total # of components installed RIMP 1 – Implementation Progress RIMP 1– 100 200 300 400 500 600 700 800 900 0 08-Feb-10 22-Feb-10 08-Mar-10 PL plan Target Actual 22-Mar-10 05-Apr-10 19-Apr-10 03-May-10 approx. eacha/c requires 8 components) average (on 17-May-10 RIMP1 Components installed Components RIMP1 31-May-10 14-Jun-10 • on 176a/ctodate • 28-Jun-10 38 a/c100%RIMPed Installed 735components 12-Jul-10 26-Jul-10 09-Aug-10 23-Aug-10 06-Sep-10 20-Sep-10 04-Oct-10 18-Oct-10 01-Nov-10 15-Nov-10 29-Nov-10 13-Dec-10 27-Dec-10 10-Jan-11 24-Jan-11 5 5 Progress on Our commitments to you for 2010 Aircraft Reliability and • Close 57 Top In-Service Issues 3 Closed 52 issues to date Quality Installed 735 components • Implement RIMP 1 on 100 a/c 3 on 176 a/c to date • Launch Supplier Management & maintenance engineering teams Opened RSOs 24hr worldwide support • Implement Regional Support Office Strategy 3 in India & Dubai • Increase International Support Staffing Hired 18 people to 3 work around the world • Accelerate NFF improvements AOG Parts • Increase Parts Inventory Worldwide Service and Maintenance • Add Maintenance Capability in Europe & China Support and Training • Worldwide Simulator Expansion • Launch Delivery Teams Customer Care • Increase Customer Advisory Awareness in Operator Community 6 Added Regional Support Offices MumbaiMumbai –– AprilApril 2020thth,, 20102010 Dubai – December 6th, 2010 4Local roots bring our support organization closer to our customers. 7 In 2010, we hired 18 Customer Support Professionals Worldwide: Russia Kazakhstan Europe China Middle East Hong Kong India Nigeria Brazil Field Service Representative Customer Services Account Manager Customer Liaison Pilot Regional Support Office Manager Customer Care Worldwide Support 8 Progress on Our commitments to you for 2010 Aircraft Reliability and • Close 57 Top In-Service Issues 3 Closed 52 issues to date Quality Installed 735 components • Implement RIMP 1 on 100 a/c 3 on 176 a/c to date • Launch Supplier Management & maintenance engineering teams Opened RSOs 24hr worldwide support • Implement Regional Support Office Strategy 3 in India & Dubai • Increase International Support Staffing Hired 18 people to 3 work around the world Appointed champion to • Accelerate NFF improvements lead initiative AOG Parts 3 • Increase Parts Inventory Worldwide Increased inventory by 3 $25.2M worldwide Service and Maintenance • Add Maintenance Capability in Europe & China Support and Training • Worldwide Simulator Expansion • Launch Delivery Teams Customer Care • Increase Customer Advisory Awareness in Operator Community 9 Accelerate NFF Improvements Dedicated full time leader, Robert Jacques, in place to drive the No Fault Found (NFF) initiative. Achievements in 2010: Implemented top 10 NFF components improvement plan on each program Purge / Repair inventory Implementation of 3 Strikes process Introduction of the ISS team and the supplier Scorecard 10 Bombardier inventory investment continues to grow Parts inventory Rotable parts “Right parts, Right place” Strategy Expendable parts $25.2M of incremental inventory invested across network Frankfurt Chicago Beijing $13.4M outside North America Dubai Hong Kong Focus on critical items & Singapore No Go Items, MEL A & Bs São Paulo Sydney Reviewed and increased pool sizes to improve Top 25 availability 11 Progress on Our commitments to you for 2010 Aircraft Reliability and • Close 57 Top In-Service Issues 3 Closed 52 issues to date Quality Installed 735 components • Implement RIMP 1 on 100 a/c 3 on 176 a/c to date • Launch Supplier Management & maintenance engineering teams Opened RSOs 24hr worldwide support • Implement Regional Support Office Strategy 3 in India & Dubai • Increase International Support Staffing Hired 18 people to 3 work around the world Appointed champion to • Accelerate NFF improvements lead initiative AOG Parts 3 • Increase Parts Inventory Worldwide Increased inventory by 3 $25.2M worldwide Added 5 ASFs & Service and Maintenance • Add Maintenance Capability in Europe & China 3 Schiphol Service Center Support and Training • Worldwide Simulator Expansion 3Added 4 simulators • Launch Delivery Teams Customer Care • Increase Customer Advisory Awareness in Operator Community 12 Our new European Service Center will Help Satisfy Customer Needs Located at Schiphol Airport, Amsterdam, Netherlands Facility Overview Opened Feb 22, 2010 Formal Inauguration May 1, 2010 45,639 sq. feet of hangar space 35 employees Light to heavy maintenance capabilities Obtained certification in seven months Technicians trained on Learjet, Challenger and Global aircraft 13 We are Proactively Managing our Authorized Service Network Evaluating requirements for any further expansions globally Eastern Europe China India Increased Quality standard requirements Bombardier Quality audits performed at 47 ASFs Customer Satisfaction surveys standardized across entire network Recent additions Aerovitro S.A. in Mexico - AOG LMF for Challenger and Global aircraft Lufthansa Bombardier Aviation Services GmbH (LBAS) - AOG LMF for Learjet, Challenger and Global airliners at Riga International Airport, Latvia. ExecuJet Malaysia – AOG LMF for Learjet, Challenger and Global aircraft at Kaula Lumpur, Lapangan Terbang SAAS International Airport Comlux Aviation Services - Challenger 300 aircraft accreditation to their ASF capabilities for Learjet and Challenger 600 series aircraft in Indianapolis, Indiana Jet Aviation - Learjet 60 aircraft certification and maintenance capabilities offered for Challenger and Global aircraft in Moscow, Russia 14 Training Sites – Bombardier Owned and Authorized Montréal, Quebec – BAT Burgess Hill, UK – CAE ATP Global 605 Pilot Training Learjet 40/45 Pilot Training Challenger 850/870 Pilot Training Global Pilot Training Maintenance Training Maintenance Training Amsterdam ,Holland – CAE ATP Dallas, Texas - BAT Global Pilot Training Pilot Training: Challenger 300 Pilot Training Learjet 31/40/45/60 Dubai, UAE – CAE ATP Challenger 300 GEX Pilot Training Challenger 604/605 Maintenance Training Dallas, Texas – CAE ATP Global Express Pilot Training Morristown, NJ – CAE ATP Challenger 300 Pilot Training new additions this year BAT and ATP common courseware for consistent quality & delivery worldwide 15 Entry-into-service Delivery Teams Provide immediate, on-site support during the post-delivery phase Share best practices with our Customers Teams Deployed in 2010: Global: 35 Challenger: 11 Learjet: 8 Preliminary survey results show 100% Customer satisfaction with delivery team performance 16 Agenda 2010 Review 2011 Plan to put You. First. Q&A session 17 Gallup survey showing consistent trend of improvement 5.0 In-Service Satisfaction Trend Sat 90th percentile: 4.52 4.5 Sat 75th percentile: 4.33 4.16 4.15 Sat 50th percentile: 4.06 4.01 4.0 3.92 Sat 25th percentile: 3.77 3.58 3.5 3.33 3.33 3.20 3.11 Average Survey Score 3.0 2.5 2.0 Wave 1 Wave 2 Wave 3 Wave 4 Wave 5 Wave 6 Wave 7 Wave 8 Wave 9 (May 06) (Nov 06) (May 07) (Dec 07) (Jun 08) (Mar 09) (Nov 09) (May 10) (Dec 10) 18 While there are solid indications we are on the right track and improvements have been made, we are implementing a plan to put you