INNOVATIVE MINDSET. Swaran Sidhu - Head of Fleet Technical management IATA MCC SEPTEMBER 16

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1 Swaran Sidhu - Head of Fleet Technical management IATA MCC SEPTEMBER 16

2 something about us > What we do: We are low-cost European point-to-point short-haul airline. > Where we do it: Intra-European short-haul network. > Our ambition: Is to be Europe s preferred short-haul airline, delivering market leading returns. > Our cause: Is to make travel easy and affordable. 255 aircraft 68.6m passengers 730+ routes 26 bases 2

3 something about us > WE ARE GROWING! Number of passengers million Profit before tax million Capacity growth per country % > Our values SAFETY SIMPLICITY ONE TEAM INTEGRITY PASSION PIONEERING SAFETY UNDERPINS EVERYTHING WE DO 3

4 our aircraft > 255 aircraft and growing! > Entry % 255 A/C 58% A319 A320 > Entry 2009 > Average age: 6.5 years > Entry 2003 > 5,900,000+ hours flown with Airbus > 3,750,000+ flights flown with Airbus > Entry 1995 / Exit

5 our FUTURE aircraft > More growth is coming! Number of aircraft units Contracted Min Contracted Max Base Case > Delivery of first A320 NEO in Jun 17 > Delivery of A320 CEOs until 2018 > 26% of the fleet will be A320 NEO by Base Case seat capacity % 7.1% 8.7% 7.9% 6.3% 7.9% 6.0% > Entry

6 Engineering & maintenance overview > Support 255 Airbus A320 family aircraft at present. - Single type operator - Set to receive A320 NEO aircraft with CFM LEAP engines from 2017 > Employ 255 staff. - 55% Part M and Part 21-45% Part 145 > Maintenance spend of 229 million in FY15 ( 3.06 per seat flown). Maintenance 6% 6

7 Engineering & maintenance Key functions > Ensure the easyjet fleet is maintained safely and efficiently, to a high standard whilst ensuring regulatory compliance. > Provide smart solutions to maintain high levels of aircraft reliability and availability. > Ensure that aircraft are available in a timely fashion to meet operational requirements by adopting smart maintenance philosophies. How do we achieve the above? By providing leading edge, innovative solutions that reduce costs and improve the passenger experience based on a continuous improvement concept 7

8 innovation

9 Why innovate? Creative destruction On Winning Enterprises. It is not the kind of competition which counts but the competition from the new commodity, the new technology, the new source of supply, the new type of organization..competition which commands a decisive cost or quality advantage and which strikes not at the margins of the profits and the outputs of the existing firms but at their foundations and their very lives. 9

10 Adapt or die Technology is evolving Television radio? PHONE internet FUTURE 10

11 Adapt or die Technology is evolving Accelerating Growth In Technology (condensed) Adapt Or die! 11

12 Where good ideas come from Steven johnson 12

13 Where good ideas come from Steven johnson 13

14 HOW DID WE CREATE AN Innovative mindset?

15 STARTING WITH LEAN 15

16 What is lean? IS IT a recipe for quick success that can be implemented in 6-9 months. a management initiative. common sense. a set of tools for improving a business. a set of principles that work most effectively in a manufacturing setting. or an evolutionary search for better processes that is never complete. a total change in the way business people think and act. straightforward principles tied to often deceptively difficult execution. a focus on getting processes right from the perspective of customers. a set of principles that can apply to any process. > The relentless removal of all waste and non-value adding activity. 16

17 Why lean? > Eliminate waste - Deliver exactly what we need. - Eliminate all that does not add value. > Change the culture - Encourage learning by doing. - Set clear goals with real-world consequences. > Grow the business - Optimise service, cost and asset productivity. - Segment, integrate and accelerate information flow. > Improve performance - Employ proven tools to eliminate waste. - Deploy cross-functional problem solving teams. 17

18 History of lean It s nothing new!! Adam Smith ( ) > Free Trade / Capitalism > Invisible Hand > Division of Labour Eli Whitney ( ) > Cotton Gin > Standard Parts for Guns Frederick Taylor ( ) > One best way > Principles of Scientific Mgmt Henry Ford ( ) > Moving Assembly Line > Standard Parts Taiichi Ohno ( ) > Father of TPS > Toyota Production System > Just in Time > Jidoka Kiichiro Toyoda ( ) > Textile Industry > Automatic Looms > Toyota Motors > Ford System > Just in Time Jim Womack (-1952) > Textile Industry > Automatic Looms > Toyota Motors > Ford System > Just in Time Edwards Deming ( ) > Quality at the Source > Statistical Methods > Plan Do Check Act > 14 principles of Management > Lean is the culmination of a number of techniques learnt over hundreds of years. 18

19 THE TOYOTA PRODUCTION SYSTEM 19

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23 The SEVEN WASTES MUDA T I ransportation cost & time for staff, equipment and parts. nventory - too much people or stuff just in case; incorrect inventory i.e. tickets when there is no demand. M otion - waste by people and machines moving around - applies to customers as well. W aiting for service, products, colleagues, information, personnel, materials, availability of machines. O O verproduction. ver-processing - duplicate data entry, inefficient stocking, multiple contact points. D efects in the operation, or service errors. SIMPLICITY COST EFFICIENCY In a service environment, unclear or unnecessary communications and lost opportunities can also be considered wastes 23

24 VALUE STREAM MAPPING VSM > Material and information flow mapping". > Analyse the current state develop the future state. > Identify wastes, defects, friction points > Develop an action plan -> implement change quickly. 24

25 GEMBA > Japanese term meaning the real place. > The place where value is created. > Gemba walk: management visit the scene of the crime > Gemba rules: - Go see; ask why; show respect - Any process or location can be walked - Pay attention to how exceptions are handled, these could be future delighters - Align people and process to achieve purpose - Make a plan to go and watch; look and learn; then reflect. Make Gemba part of your routine 25

26 ExAMPLES OF Innovative mindsets

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28 No more boarding passes 28

29 DEALING WITH FLIGHT DISRUPTION > Customer hotel self service 29

30 INNOVATIONS IN EASYJET ENGINEERING

31 Our journey so far Jan 10 easyjet brings Part M organisation in-house. Jul 10 Start of the development of AVOID. Feb 12 Creation of digital D&B within AMOS. Sep 12 Start of Engine Wash campaign. Nov 13 Delivery of first aircraft with Sharklets. May 14 Entry into service of BladeFix as software for quick fan blade replacement Feb 10 Introduction of AMOS as maintenance system. Mar 11 Introduction of STREAM for digital documentation management. Sep 13 Initial development of Drone Inspections. Feb 14 Development of 3D D&B, Flight Watch & Real Time Transmission Apr 14 Installation of toughpads across all EZY fleet. 31

32 Our future journey Feb 15 Automated flight of a drone. 3Q 16 Future Cabin I 4Q 15 Release of BladeFix V2 for SBR. 3Q 17 Neo and LEAP EIS. Connected A/C Optimised Maintenance Programme Aug 15 Paperless Cabin trials. Jun 15 Telemetry trial. Mar 16 First base to use drones for lightning inspections. 3Q 17 Drone NDT roll-out. 32

33 Volcanic ash detector avoid i r b o n e o l c a n i c b j e c t m a g i n g e c t e c t o r 33

34 stream PAPERLESS OFFICE 34

35 stream PAPERLESS OFFICE > Fleet size of 225 aircraft and growing. > Around 1,400 flights per day. > Approximately 200,000 Tech Log Pages per year. > 80,000 equalised Work Packages per year. > 34,000 component changes per year. > e-sign to be implemented by end of Introduction of Stream 2013 End of 2016 Real time re-delivery AMOS/Stream Records management integration + e-sign

36 Paperless aircraft Toughpads & e-paper 36

37 Rapid software change Fan blades management 37

38 planning OPTIMISATION tools MAINTENANCE OPTIMISATION software 38

39 Remote inspections drones 39

40 Dent and buckle Augmented reality 40

41 Reverse engineering 3d scanning 41

42 OPERATIONAL SITUATION Awareness TRACKING DEVICES 42

43 Predictive failure technology Aircraft systems 43

44 The Future of Fleet technical management

45 How DOES AN HELP TO REDUCE COST? IATA MCC September 2016

46 > Lower TAT > Less manpower resources > Lower inventory > Reduction in AOGs and quicker recovering through more predictable failures > Increased aircraft reliability and availability > Proactive versus reactive maintenance > Systems automation allows for fleet growth whilst maintaining current resource levels Fleet size Engineering Headcount Headcount Ratio 46

47 INNOVATION IS A STATE OF MIND! 47

48 THANKS!