Airmail. SWISS remains SWISS. CEO Thomas Klühr sets out his seven emphases. Frankly Speaking Group CEO Carsten Spohr visits SWISS

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1 EA * A IRLI NE D *** THE A N OF * * ** * * RE Airmail I 28 ssu e 20 Jun 5 16 e S W IT ZERL PEOPLE The news journal for SWISS employees Jazmin Büchler, Crew Control Expert since CEO Thomas Klühr sets out his seven emphases SWISS remains SWISS Welcome to the jungle! Willkommen im Dschungel! INSIDE SWISS Kids: more fun for our youngest guests 4 FLEET UPDATE C Series: HB-JBA completes its maiden flight 5 Seven emphases to keep SWISS on track: CEO Thomas Klühr at our Latest news Xchange on Wednesday 15 June. Photo: Reto Hoffmann Our company is in sound shape and has a good strategy, our CEO Thomas Klühr has concluded after his first 130 days in office. For our journey to being the Next-Generation Airline of Switzerland, he has also formulated seven emphases which should help ensure that SWISS continues to prevail in its markets and delivers sustainably robust results. Collaboration and reliability are two items that Thomas Klühr sets particular store by, both in our company and in the role we play within the Lufthansa Group. He will also continue to seek direct dialogue with our people, and attaches great value to good communications with our cabin and cockpit crew corps and our ground personnel. Flat hierarchies and quick channels, he says, are part of the SWISS DNA. So we ve been asking Thomas Klühr how he sees the SWISS vision and mission and what this means in concrete terms for the years ahead. 2 INSIDE SWISS Off to Lille with the Swiss soccer team 9 Frankly Speaking Group CEO Carsten Spohr visits SWISS Lufthansa Group CEO Carsten Spohr makes a point of visiting all the Group s main constituent companies every two years. And he was in Zurich on 16 June for the latest of these Frankly Speaking events. The Paris Room at our SWISS Building in Kloten was packed for the meeting, as so many people seized the opportunity to hear the latest group news and views from the top man himself. With his usual eloquent style, Carsten Spohr soon had his audience captivated, and lightened the many serious issues with a touch of humour, too. He also had particular words of praise for SWISS s recent performance and achievements; and he emphasized over and again just what a key role our company plays within the broader Lufthansa Group. 7 Snapshots Tickets for the SWISS Band concert to win 12

2 2 INSIDE SWISS SWISS remains SWISS (continued from Page 1) Thomas, you ve been in office for 130 days now. Good start so far? Absolutely! I ve had the great good fortune of enjoying so many highlights in my first few weeks at SWISS: all the amazing events around the arrival of our first Boeing 777, the opening of our new Terminal E Lounges, and then last month the tenth anniversary of our joining Star Alliance. And I m constantly impressed in all of this, time and time again, at what our SWISS team delivers. You discussed your plans for SWISS with the SWISS Board of Directors and the Lufthansa Group Executive Board at the beginning of June. What changes will these entail? Our company is in sound shape and has a good strategy. So there s no reason to change things. What we need to focus on is making our various strategic projects happen. And where do you see the biggest challenges there? Those are clear. We re acquiring 32 new aircraft and withdrawing 32 existing aircraft in the next two years. We need to do all that while keeping all our daily business running smoothly. We also need to keep working towards our commercial objectives, especially the profitability of our short-haul network. And we need to put all our other projects into practice, too. And what about Geneva? Will we be sticking to our strategy there? Yes: this is particularly true of Geneva. We haven t yet achieved our objectives there. But we by which I mean SWISS and the Lufthansa Group are convinced of the potential of the Geneva Airport region. The new C Series should help us make substantial progress with our Geneva operations. But we ll need to take further action as well. The Lufthansa Group is naturally looking at other options for Geneva, too, like a Eurowings operation. So it s up to us to prove that the present Geneva arrangement is the best for SWISS and the best for the Geneva region. And I m confident that, with our outstanding Geneva team, we ll be well able to do so. What s going to happen to Edelweiss? Our SWISS business model also extends to a close collabora- Our CEO has identified seven emphases for our endeavours to be the Next-Generation Airline of Switzerland. Illustration: Zense tion with the independent and successful Edelweiss brand. And we ll be continuing this until further notice. How Eurowings and Edelweiss work together in future we ll have to wait and see. You presented a visual of your seven emphases (see illustration above) at our most recent Latest news Xchange. What did you want to show here? The key thing for me is that we keep our current SWISS alignment and thrust. And when it comes to implementing our strategy, I want to pay particular attention to seven key emphases. Our aim is to ensure the sustainable and robust profitability that gives everyone in the SWISS team the prospects that go with working for a successful Swiss airline. And in my view we can only do this if we work together well, have reliable operations, put our travellers needs centrestage and embody our brand. For our vision you ve given Robustness and Prospects as your emphases. What do you mean here? That I want to explicitly emphasize these two elements within our SWISS vision. I want to ensure that we remain successful in a market environment that s getting tougher and tougher, and that we can deliver sustainably robust earnings results; and I want our SWISS team to have the prospect of continuing to work in Switzerland for a successful Swiss airline, while being simultaneously part of the world s biggest aviation group. So aren t we robust enough? SWISS today is very profitable. But we can t just take that for granted: external factors like a steep rise in oil prices, terrorist actions or a recession in our home market could quickly change things here. We must constantly remind ourselves how much we benefit from the massive purchasing power that people in Switzerland have. But that s far from set in stone. You ve set some further emphases for our SWISS mission, including Reliability. Do you feel we aren t sufficiently reliable? On the contrary: I m constantly impressed at how our Ops colleagues keep our operations safe and stable despite all our various projects. But we must improve our punctuality both internally and with our various partners. This, for me, is one of the cornerstones of our daily operations. As a further emphasis you have Collaboration. What do you see as the ideal here? When it comes to collaborations, honesty, credibility and dependability are crucial to me. We re an airline, and our operations are the heart of what we do. In view of this, we need to have a constant dialogue between our flying and our ground personnel. We also need to consider how we want to work together within the Lufthansa Group. It s very important to me here that we retain our SWISS Way while also being as group-minded as possible. The communications between our flying staff and our ground personnel have always been a challenge. How do you aim to tackle it? First, by maintaining a constant dialogue. That s why I ll be spending two days each month working in the OPC, to get a picture of the general mood and the issues that concern our flying staff most. Secondly, our Ops need to be closely tied into the overall management of our company. So our new SWISS Extended Management Board which will be known as the SWISS Executive Committee will extend to both our new Head of HR Christoph Ulrich and our Accountable Manager, Thomas Frick. You have a further emphasis in Made of Switzerland. Why this, and not Made in Switzerland? We re The Airline of Switzerland, and we must all live up to this. We carry Swiss values out into the world in our product, our collaborations and our service mentality. Switzerland is the finest country brand anywhere. And we bear this brand, in our name and on our tailfins. What distinguishes us from our competitors is our focus on our Swiss roots. We re Made of Switzerland. And we need to bring our Swissness into the Lufthansa Group, and add a little dash of red in Frankfurt, Munich and Vienna, too! The Lufthansa Group is in the midst of its biggest-ever reorganization right now. How independent will the SWISS brand remain? SWISS will remain an autonomous brand. We re responsible for the Swiss market on behalf of the entire Lufthansa Group which means we ve been entrusted with the strongest and most lucrative home market of any group member airline. And with this in mind, from August onwards we ll be adopting a revised Marketing Concept that puts our SWISSness even more centrestage. I don t want to spoil the surprises here, but I can assure you: SWISS will remain SWISS! Interview: Dan Bärlocher You can learn more about Thomas Klühr's vision and plans for our SWISS strategy in our CEO Talk video on My SWISS. Impressum Editorial team Dan Bärlocher (publisher), Florian Flämig and Reto Hoffmann (co-editors-in-chief and producers), Translators Paul Day and Jenny Rogers Layout and design Reto Hoffmann (Internal Communications), Urban Kronenberg (Futureworks) Copyright notice some pictograms in this publication are part of the Entypo icon font, shared under a Creative Commons 3.0 licence Editorial team contact airmail@swiss.com Postal address Swiss Interna tional Air Lines AG, Airmail, Postfach, CH Zürich-Flughafen Printing SWS Medien AG Print, Sursee, Switzerland - This publication is printed on natural-white 100 gsm Cyclus Offset paper manufactured from 100% uncoloured recycled pulp Circulation 2500; Airmail is published 16 times a year Deadline for input for the next issue 8 July 2016.

3 INSIDE SWISS 3 Human Resources Flexible workhours: good for both sides Demographic change, young people s different work demands and the desire for more flexible working models that make it easier to combine the job and the family: they re all new challenges for SWISS and any other employer today. Anja Kugelstadt The primary goal, of course, is to offer more individual ar-eer paths that are better aligned to the different life phases we all go through, to arrange our work more flexibly and thus to respond to the presentday trends. We asked Reto Schmid, our resigning Head of Human Resources, how SWISS is answering the call for greater flexibility in the working world. First things first, Reto: are we also seeing a demand among the people at SWISS for more flexible working arrangements? We certainly are. We already have a large number of employees working under flexible-workhours models. And we continue to get a lot of requests for these, from both our CLA personnel and members of our management corps. Our company also has a clear interest in offering such flexible working arrangements as much as it can, within the parameters that are imposed by our business and operating needs. After all, employees with flexible workhours tend to be more productive and happier in their work; and flexible working models can even help to prevent work-related health problems. So they re a good thing for both sides. The days when everyone worked eight-and-a-half hours a day five days a week are gone. We now have flexitime, working from home and a range of further workhours models that can be closely tailored to the needs of both the company and the individual employee. It s a bit like buying a suit off the peg. They won t be the perfect fit for every customer. So some people will prefer the madeto-measure option. And if the shop wants to be successful, it needs to offer this, too. It s the same with us at SWISS: we also need to offer our people flexible working arrangements that Board of Directors Reto Francioni is our new Board Chairman Reto Francioni has succeded Bruno Gehrig as Chairman of the Board of Directors of SWISS. Bruno Gehrig and Christoph Franz stepped down from the Board; and Doris Russi Schurter has been newly appointed to its ranks. The Board of Directors of SWISS reconstituted itself following the 2016 General Meeting. Bruno Gehrig has retired from the Board, having joined it in November 2010 and served as its Chairman for just under six years. Prior to this, he had been Chairman of the Swiss Air Transport Foundation for a five-year period. Bruno Gehrig has devoted all his energies to ensuring the future and the further development of the SWISS brand within the Lufthansa Group, and has led the company into a new era, attests Carsten Spohr, Chairman of the Executive Board & CEO of Deutsche Lufthansa AG. The new Chairman of the SWISS Board of Directors is Reto Francioni. The new incumbent served as CEO of Deutsche Börse AG Frankfurt/ Reto Schmid. Germany from 2005 until May He has also been Professor of Applied Capital Markets Theory at the University of Basel since His previous positions include various further executive functions, such as Chairman of the Swiss Exchange in Zurich. Christoph Franz has also stepped down from the SWISS Board of Directors after almost seven years as a member and as Deputy Chairman thereof. Doris Russi Schurter has been appointed to the SWISS Board of Directors as Christoph Franz s successor. A native of Lucerne, an attorney-at-law and a former partner at auditing and accountancy company KPMG, Schurter already sits on the boards of directors of several major corporations. She is also President of the VSUD, the Association of Swiss Companies in Germany. Handing over: outgoing Board Chairman Bruno Gehrig (right) with his successor Reto Francioni. Photos: Reto Hoffmann are suited to their particular situation. Also, of course, we don t judge our people by the number of hours they sit in the office each day. We re much more interested in the performance they deliver, and in how they can best deliver it. So what options does SWISS offer in flexible workhours terms? We offer quite a range of them, for both our flying and our ground personnel. We already have a lot of people who spend part of their time working from home or have opted to work part-time. But we also offer many other working models such as job-sharing or shared leadership, the opportunity to take a sabbatical, and Flexi +, which we ve developed specifically for our Upper Management members. The full version of this interview will be found on My SWISS. Doris Russi Schurter, our newest member of the Board. Christoph Ulrich new head of HR Christoph Ulrich, who is currently our Head of Compensation & Labour Agreements, has been appointed as our new Head of Human Resources. He will assume his new duties on 1 July. Christoph succeeds Reto Schmid, who will move on the same date to become our new Head of Cabin Crew. Christoph Ulrich, who is 41, a proven HR specialist, who is thoroughly familiar with both our company and our people and can draw on extensive experience in both business administration and the airline field. He has been with SWISS since 2008, when he joined us as the leader of a project to develop our new health management organization. Just under two years later Christoph was appointed Head of HR Shared Services & Central Functions. And in 2013 he moved again to his present position as Head of Compensation & Labour Agreements. Christoph has also completed further education programmes in strategic HR management. Western Switzerland An award for Lorenzo Stoll Lorenzo Stoll, our Head of Western Switzerland, has been named one of the 100 Personalities Who Make La Suisse Romande. The list was published in a special issue of L Hebdo weekly magazine produced on the occasion of the twelfth Forum des 100, which was held at Lausanne University on 19 May. The prestigious annual event brings together the leading Western Swiss lights in the business, political and cultural fields. I am truly honoured at this distinction, says Lorenzo. But I view it as the acknowledgement of all the work that our people at SWISS Geneva have done over the last two years.

4 4 INSIDE SWISS SWISS Kids Ground services More for our youngest guests From 25 June onwards we ll be offering our youngsters an exciting jungle adventure that puts a firm focus on both learning and play. The Super Skyboard Surfer Game, which they ll find on our swiss.com/ kids webpage, challenges our young travellers to test their skills, build their own adventure kit, learn masses about the jungle and win great prizes, too. And on every SWISS flight they ll be given our limitededition Adventure Specials : Bernie s Jungle Mail with tough tasks to master, helpful tips and an adventure ID for a truly fun experience that s educational as well. swiss.com/kids Our SWISS mascots Bernie, Lexi and Swissli have been keeping our youngest travellers amused aloft with their adventures, puzzles and new children s meals since the end of last year. Now our SWISS Kids programme is entering a second phase, just in time for the summer holiday season. Nina Stanek Automated helpmate Welcome to the jungle! Willkommen im Dschungel! Bernie and Lexi, the now-familiar SWISS mascots who keep our youngest travellers entertained. Illustration: SWISS now also get a 25% discount off the fare on any SWISS flight (European or intercontinental) in both SWISS Business and SWISS Economy. And for infants under 2 there s a 90% discount in all seating classes. Plus: to ensure that Mum and Dad can prepare for the family trip as well as possible, we ve also revised and restructured our Travelling with children webpage on swiss.com. Attractive child fares In a further enhancement to our product for young flyers, children aged between 2 and 11 Zurich Airport "Weekend Eperience" SITA, the world s number-one provider of IT solutions to the aviation sector, has developed a robot that can assist customers at the airport, by printing their baggage tags and carrying up to two cases, relieving the human traveller of the need to even enter the check-in concourse. The revolutionary development from the Geneva-based company recently underwent two days of trials at Geneva Airport another global first! How it works The customer will need to have checked in already and have an electronic boarding pass. They scan this on the robot, stick the tags that it prints out onto their baggage and load the bags up to 64 kilos in total onto their automated help mate. After that, Leo does the rest. He ll negotiate his way through the terminal, avoiding any obstacles en route, and take his bags all the way to the sorting facility. Leo s recent trials at Geneva Airport attracted a lot of attention. Some travellers were happy to check him out; others kept their distance, and preferred to observe from afar. And of those who actually entrusted their bags to Leo, half elected to follow his progress as far as they possibly could, while the others just turned their backs, putting their full faith in their new mechanized friend! Evelyne Lozeron The SWISS Kids adventure extends to Zurich Airport, too. Until October families will have a number of opportunities to meet Bernie and Lexi personally, such as at another airport Weekend Experience on September. They can even try out Bernie s Skyboard for themselves! Further details: swiss.com/kids flughafen-zuerich.ch/erlebniswochenende Helpmate Leo takes the strain out of checking in at Geneva Airport. Photo: SWISS Online Services Kaizen swiss.com accessible to all Improving with our partners, too The core functions of our swiss.com website have been comprehensively overhauled to make them accessible to all. Florian Flämig A team of our specialists from Financial Accounting headed down to Brazil in April with a clear objective: to use a Kaizen workshop to clarify and standardize our local credit card sale and chargeback processes. As a result, blind and visually impaired users and those with other physical disabilities can now easily book, rebook or check in for their flights online. The blind and visually impaired, for instance, can use screen reader software to have text read aloud to them, and can navigate the site more easily via their keyboard entries. With these new features we have extended the accessibility of our services at the airport and inflight to our website, too. We asked Leo Dietrich of our Online Experience unit what the work involved. Leo, what changes did you have to make to swiss.com to make it more accessible? "Quite a few! We changed the colours and the contrast, among other things. We also made every page easier to navigate via keyboard entries. And we added some hidden texts that can be read aloud to screen reader users." So is our website now totally accessible for all? All its core functions are booking a flight, checking in online, contact details and the timetable. And the whole site should truly be accessible to all by the end of this year. Under Brazilian law, all credit card sales and refunds have to be processed locally and within a certain timeframe. With our SWISS credit card sales, a number of partners are also involved here: Lufthansa Global Business Services, Worldpay, Mindpearl, Datatrans, Cielo and American Express. The Kaizen workshop that we held in São Paulo was primarily intended to give everyone involved a clear understanding of the complex processes entailed. This in turn was expected to reduce the volume of support requests that are received by our Provider & Process Management. The workshop was also designed to help devise solutions that could minimize the writeoffs which currently have to be made as a result of chargebacks cases in which a sale has to be reversed because the associated debiting is rejected for the card concerned. The workshop saw clear processes defined that will substantially simplify the collaborations among the corporate partners involved. And team leader Robert Hauenstein was delighted at the results. It was really important to me to get all the parties involved from all the various units and countries together and jointly discuss the current challenges, he explains. The São Paulo workshop provides further confirmation that our Kaizen programme is not limited to setting our own house in order, but can just as effectively enhance collaborations with our external partners. In fact, over 860 employees from more than 160 outside companies have taken part in our Kaizen workshops and been familiarized with our SWISS Kaizen approach since we launched the programme back in Deborah Bard

5 FLEET UPDATE 5 First SWISS Bombardier C Series aircraft up in the air HB-JBA successfully completes its maiden flight The plane took off at 11:40AM local time (3:40PM UTC) from Montréal-Mirabel International Airport and landed there again 5hours and 48minutes later. We are expecting our CS100 in Zurich this friday. It will then perform a world premiere passenger flight to Paris Charles de Gaulle Airport on 15 July. Following the CS100's aircraft type certification awarded by Transport Canada in December 2015, the European Aviation Safety Agency (EASA) and the US Federal Aviation Administration (FAA) have given their green lights for regular flight operations. Striking lines: our first SWISS Bombardier CS100 during its maiden flight. Photo: Bombardier Boeing 777 programme Conversion training explained What does the phase-in of our new Boeing ERs mean in terms of training for our cockpit crews? We asked Rolf Brand, our Boeing 777 Deputy Fleet Chief Pilot. Anthony Lascaugiraud Rolf, what s it like to retrain from the Avro RJ100 as you have onto the Boeing 777? It s actually the same kind of conversion course that any pilot will go through: a threephase process of theoretical and practical courses, base flight training and then line flying under supervision, or LIFUS. It all starts with combined ground training: nine days of classroom (crew resource management, performance, route operations and emergency and safety training) and eight days of computer-based training, five four-hour sessions on the integrated procedures trainer, 12 four-hour fullflight simulator sessions and at the end a skill test that consists of a four-hour simulator check. Then comes the base flight training. Pilots with prior experience on widebodies need a minimum of four landings here, while those without this experience must go through a minimum of six landings. Usually we head off to Châteauroux Contented crew. Boeing 777 Deputy Fleet Chief Rolf Brand (centre) with his colleagues Ola Hanson (left) and Marc Bachmann in their new cockpit office. Photo: Melanie Heiniger in France or Schwerin in Germany for this. The final part is the LIFUS. Here we fly a minimum of eight sectors, of which at least two must be headed over the Atlantic Ocean as part of the extended twin-engine operations or ETOPS training programme. And our type rating is concluded with a two-sector line check. All in all, it takes about four months of training to become fully qualified to fly our new fleet flagship. And to crew the first batch of our new Triple Sevens, about 150 of our pilots will have undergone this conversion training by the end of this year. We re currently using our new Boeing 777s on a lot of European rotations. How does this fit into the training? The 777 rotations we re flying in Europe are part of the LIFUS programme. And they re quite an experience from a flying perspective: the combination of the low weight (due to less fuel and cargo) and the powerful engines (even with reduced thrust) make the aircraft climb like a rocket! The pilot s career model at SWISS now offers many new options. Can you tell us a little more about these? Under the terms of our new cockpit crew CLAs, the pilots who retrain for our initial batch of Boeing 777s should come one-third from Swiss Global and two-thirds from Swiss International. To gain their route competency, the captains here without prior long-haul experience will fly their first 30 sectors in the right-hand seat, in the copilot s capacity. After that they ll make the transition to the left-hand seat, following a specific syllabus. Even if we ll soon have four main aircraft family types at SWISS, the pilot s career path remains basically the same: as an ab initio, a pilot will always start as a short-haul first officer and then move onto the longhaul in the same capacity. The next step is promotion to captain, back on the short-haul; and finally they ll move on to be a captain on the long-haul. So what s it like flying a 351-tonne Boeing 777, compared to a 45-tonne RJ100? Well, the most impressive thing about it is the dimensions of the aircraft itself, like the 3.4-metre GE90 engines and the sheer height it s like sitting on the third floor! Added to that, of course, it s a totally different operating network with 12-hour sectors that take you through different climate regions, over high terrain and through various air traffic control zones. Rolf Brand in brief Rolf Brand can draw on long flying experience. Having started with Crossair and then became part of SWISS, he spent a two-year spell with Tyrolean/Austrian Airways before returning to us in He was also one of our first Avro RJ100 pilots to be type-rated onto the Boeing 777.

6 6 INSIDE SWISS Swiss WorldCargo SEEing different perspectives People are a vital pillar in Swiss WorldCargo s Crystal-Clear Strategy. And it was in view of this that our airfreight division initiated its Staff Exchange Experience or SEE programme at the end of last year, as a platform to foster its people s collaborations, development and knowledge growth. Astrid Schönenberger SEE enables Swiss WorldCargo employees to participate in an exchange with a job counterpart in a different part of SWC s global organization. SEE thus gives them the opportunity to broaden their skills, experience cultural diversity, obtain a different point of view, share their perspectives, exchange business solutions and support business opportunities for import/export connections. To give you an insight into all this, we would like to share the experiences of two of our SEE participants to date. Here is the interesting testimonials of Beatriz Mascías of Madrid. The story of Manol Marjakaj of Zurich you can read on My SWISS. HKG isn't MAD "I had the chance to join Swiss WorldCargo s wonderful Staff Swiss AviationTraining put its new Bombardier C Series full-flight simulator into service on 20 June. Michael Grimm The simulator is the first in Europe to be certificated for C Series pilot training. SAT will be training all our SWISS C Series cockpit and cabin personnel. The C Series simulator project has been quite a technical and logistical challenge for everyone involved: SAT, Bombardier, simulator manufacturer CAE, SWISS and Lufthansa Flight Training. And it s thanks to the partners close collaborations that it s been completed within its ambitious timeframe. Inside the 777 belly! From left: Vanessa Rybka, Beatriz Mascias, Man Lun Lau and Sergio Magnavacca. Photo: Swiss WorldCargo The tight timetable was made all the more challenging through the changes to which it was subjected. The software updates in particular, which are both customary and essential in the introduction of a new aircraft type, had to be constantly integrated and trialled. The Federal Office of Civil Exchange Experience (SEE) programme earlier this year. My aim in doing so was to visit another station in our network and enjoy the opportunity to exchange business solutions, experience a different view of our business, appreciate cultural diversity and more To make the most of this experience, and in agreement with my superior, I decided to visit Hong Kong. Various reasons led us to this choice: the capacity and the different type of aircraft, the frequencies, the distance to our hub, the time difference, the currency, the language, the government rules and, of course, the culture! All in all, everything in HKG is different than in MAD! The first goody of the programme: I was able to fly from Zurich to Hong Kong on our brand-new Boeing 777 HB-JNB! It was a great start I have to admit that I was not expecting such a full agenda once I had arrived. The experience was meant to last for five working days. During that time, I was able to meet all my cargo colleagues and the handling agent, visit their warehouse, meet totally new customers and watch the preparation of valuable cargo containers. I could even go down to the ramp and experience the Swiss AviationTraining C Series simulator up and moving! Marking the moment. From left: Head of Swiss Global Air Lines Andreas Thurnheer, SAT CEO Marcel Witzig and SAT COO David Birrer. large screens for optimum management and monitoring of all simulator training. A total of 64 SWISS pilots will be conversion-trained onto the Bombardier C Series at SAT this year, on a course that consists Aviation formally approved the new simulator for pilot training on 17 June, confirming that the device fully meets all official requirements. The FOCA s approval almost coincided with the certification of the new C Series by the Europ - ean Aviation Safety Agency. In installing our new full-flight simulator we ve reached a major milestone in the C Series project, for Bombardier and for ourselves, says SAT COO David Birrer. And we re proud to have achieved this objective within its ambitious timeframe. As well as a faithful reproduction of the C Series cockpit, the new simulator features an ergonomically-designed instructor s station with extraactual unloading and loading of cargo at the aircraft. To make this visit a complete success, our Hong Kong Cargo Manager and I were able to attract some new business for the company, by finding a solution for one of our key customers. So far, we have been able to make two shipments of garments, a total of 16 tonnes! The special requirement for this traffic was that the consignee in Barcelona wanted the boxes delivered directly to their warehouse. And we managed to find a solution here. It was the open communications between all the stakeholders, together with the cooperation from our trucking department in Zurich, that made all this happen. As we could see, customers really like to have a face behind the address, to feel in good hands, and to have direct access to the information about their cargo, even if it s on the other side of the planet. Personally, I m convinced that many disagreements in the world could be avoided, or at least mitigated, if people had the chance to know the other side of the story. Opportunities like SEE are definitely mind-openers here and great adventures, too! So all in all, I am very grateful that I could participate in SEE"! of some 35 days of training spread over two to three months. As part of this, the trainees will collectively spend some 3,000 hours on SAT s new C Series simulator. C Series Chief Flight Instructor Daniel Nater programs the brand-new SAT flight simulator. Photos: Michael Grimm

7 INSIDE SWISS 7 Group CEO Carsten Spohr visits SWISS Don t underestimate the good SWISS name!" Lufthansa Group CEO Carsten Spohr visited SWISS on Thursday 16 June, his second such visit since assuming office. The highlight of his stay was his latest Frankly Speaking event, in which he met our employees and engaged in a fruitful newsand-views exchange. Reto Hoffmann Some 250 people from SWISS, Edelweiss, Lufthansa Switzerland and Austrian Airlines Switzerland took up Group CEO Carsten Spohr s invitation to his latest Frankly Speaking event. There was clearly a lot of interest in seeing Lufthansa s top manager in the flesh and putting some questions to him directly. Spohr began his remarks with an interesting observation: the last time he had visited us, two years ago, the reception had, he thought, been somewhat cool. He felt that this was understandable, though, since he had only recently taken over as Group CEO. You could feel the uncertainty among the SWISS ranks, he recalled, as many people were wondering what would become of the company. But Switzerland has proved that small size has its value, too. Carsten Spohr also swiftly allayed any present-day concerns that our company might still lose its independence. Don t underestimate the good name you have in Frankfurt, he said, in his habitual eloquent style. He did go on, however, to stress that the way the Lufthansa Group s constituent companies work together is having to change, in response to the massive competitive pressures. There will be some services that the individual group companies will no longer provide, Spohr specified. And there will From the top: Lufthansa Group CEO Carsten Spohr fields attendees questions during the Frankly Speaking session at the SWISS Building in Kloten on 16 June. Photos: Reto Hoffmann be some tasks that individual companies will now perform for the entire Lufthansa Group. This is the only way to achieve the efficiency enhancements that we seek, and that we urgently need to ensure the sustainability and the future viability of the Group as a whole. Every one of us can contribute to this process, Spohr emphasized, because every one of us embodies our product. At the same time, of The Paris Room at our SWISS Building was packed for the event. course, a single individual can bring the whole venture down an allusion to last year s Germanwings tragedy, which clearly affects him still. But, he concluded, the airline industry will always be a very special place. You ll find a video of the entire Frankly Speaking event with Carsten Spohr on our My SWISS platform. One team: Carsten Spohr is gifted with a Swiss soccer jersey by our Head of Corporate Communications Dan Bärlocher. Process orientation Network thinking! The reorganization of the Lufthansa Group will have its effects on the way our Network, Fleet and Partnership Management teams work together, too. The process orientation is already well advanced here, and the new process organization will be adopted on 1 July. Michael Raskovic Bundling processes and orchestrating activities on a supra-hub scale are two key elements in the 7 to 1 stra tegy of the Lufthansa Group. In our April Airmail we presented process orientation taking the example of Revenue Management, which will in future be guided and overseen from Zurich by our CCO Markus Binkert. This issue we re putting the spotlight on the closer collaboration between our Network, Fleet and Partnership Management units that the new approach will entail. This process is under the overall management of Christina Foerster, Process Domain Owner Network & Partnership Management Hub Airlines. Christina is based in Frankfurt. But the representatives of the various subprocesses here will be distributed around the hubs: our own Ignazio Strano, for instance, will be in overall charge of the Joint Ventures & Star Alliance process groupwide from his Zurich base. Group perspective The main aim of any airline network is to offer the customer an attractive range of destinations. So adopting a group perspective on this offers obvious advantages: a wider range of destinations and, thanks to well-coordinated connections, more ways of getting there. The closer collaboration planned on the network front should also ensure that the same tools and methods are used throughout the Lufthansa Group in timetable planning, to take just one example. This should really simplify the intragroup collaborations and coordination, says Martin Apsel-von zur Gathen, Process Driver Network & Fleet and now Head of Network Management at SWISS. In the past, we had to manually amalgamate and consolidate all the projects and that took a huge amount of time! Intercontinentals interlinked In a further innovation, longhaul network planning within the Lufthansa Group will in future be performed by virtual teams of employees from all four hubs which are each responsible for a particular region of the world. These interhub teams will conduct their market analyses and compile the documentation on whose basis groupwide Network Management will then make its network decisions. In groupwide teams, for instance Americas or Asia-Pacific, employees of all hubs, will be coordinated to determine which destinations in the region should be served, how often and with what equipment. For our people, the new process orientation is a real opportunity to get more involved in the Lufthansa Group and take on more responsibility, Martin Apsel-von zur Gathen explains. Within Europe, each Hub Airline will remain largely autonomous when it comes to network planning and design. In contrast to the long-haul, short-haul route planning is more short-term, to enable the carriers concerned to respond more swiftly to changes. A closer community To enable these processes to become more closely intermeshed, the whole Network and Fleet process community needs to move closer together. In the past, it s been upper management that has tended to trade news and views on supra-hub issues. In future, staff at all levels should talk to each other more (and much more often), too. An initial meeting was held to this end in March at Lufthansa s Seeheim facility (near Frankfurt), and was attended by some 180 personnel. It s hugely helpful to be personally acquainted with the colleague at the other end of the phone, says Remo Hauser of SWISS, in charge of Change Management & Communication for the Network, Fleet & Partnership Management Process. And we re really looking forward to taking on more responsibility and working more closely with our colleagues at our other group hubs.

8 8 PEOPLE G High Five There s a new surprise each day A few words with Crew Control Expert Jazmin Büchler Mekea Ubbens Celebrations Wedding bells Corinne Wüthrich and Mario Breitler (Airbus A330/340 First Officer), celebrating their marriage on 4 June in Steckborn. Their personal highlight besides the wedding ceremony was a performance flight of a PC-7 during the afternoon celebrations. Jazmin Büchler: The main thing is to keep calm. Photo: Mekea Ubbens Jazmin, what exactly does Crew Control do? Our prime mission is to make sure we have a suitably-qualified crew available for each of our aircraft whenever this is required. To this end, we get a list one month in advance from Crew Planning showing the future rosters of every crew member and the crew on reserve. As soon as these rosters have been published, it s up to Crew Control to deal with any subsequent changes through people reporting sick, swap requests, planning-in introductory flights or changes of equipment. On top of all that, we re also often the people our crew members turn to if they have any rostering questions. So what s the biggest challenge? Well, although we get all the rosters from Crew Planning a month in advance, we ll always have several short-notice changes to them to deal with every day. Maybe an aircraft arrives Jazmin in brief After commercial training with Reichle Boots AG, Jazmin worked for sewing machine manufacturer Bernina. In 2007 she applied to become a SWISS flight attendant and spent the next four-and-a-half years flying. She has been an expert in our Crew Control since back late, so we have to find a new crew for the further flights the delayed crew was supposed to handle; or maybe there s a change of equipment for a flight and we need to add a further member to the crew for the new aircraft type. Some of these changes can be at really short notice: someone falling sick, or not being able to get to the airport in time from home because of a traffic jam or a train cancellation. The main thing here is to keep calm. So flexibility, assertiveness and resistance to stress are essential! Basically, there s a new surprise each day but that makes the job really varied and interesting. Assertiveness and resistance to stress are essential. When you re assigning your crews, what kind of things do you need to bear in mind? If you re assigning a whole new crew, you have to see what qualifications each crew member offers and how many days you can assign them for. If a crew member is on their last day of reserve duty, for instance, and we need someone for a two-day rotation, we need to look for someone else. And if we don t have anyone else, we need to move people around elsewhere. You also have to look at the legality, like making sure the crew member is being given enough rest time and is not exceeding their maximum working hours; and you need to try and achieve a good crew composition. You may have individual requests from crew members, too, which we try to accommodate as far as we can. How is the arrival of the new C Series affecting your daily work? Not at all yet: we only start to feel any changes to our fleet when the aircraft enters service. But the newness can have an effect then. With the Triple Seven, for instance, we don t yet have that many pilots who are qualified to fly it. So if a Triple Seven pilot is sick, it s a bit harder than usual to make all the adjustments. Your job involves shiftwork, too. How do you find that? We have four shifts early, middle, late and nights so that we always have someone available if there s a change to our flight operations or one of our crew members needs to contact us. The first early shift begins at 05:00. That can be quite a tough one if you re not an early riser; but you do get a nice free afternoon in return. In the seasons with better weather I find that cycling to work can help: the fresh wind wakes you up in no time! Next up Jazmin would like to see a brief interview with someone from the First Class Lounge. Veronica Siverova and Geneva-based Maître de Cabine Jean-François Bertholy tied the knot on 7 May. You ll find more photos on My SWISS. Upgrade or offload Coming to work How do you commute to work? 6.5% By bike 2.6% Others 2.8% On foot 43.1% By public transport Coming to work Next question: If you come to work by public transport, what kind of ticket do you have? You can give us your answer via My SWISS or the app or by using the QR code on the right. 45% By car

9 LIFESTYLE 9 Employee Competition winners Off to Lille with the Swiss soccer team! For our warehouse logistics officer Diestale Ambros and his cousin Anejan it was like scooping the lottery. They were the lucky winners of our My SWISS Euro 2016 competition. Their prize: a trip to Lille with the Swiss soccer team. Florian Flämig It all started early on the morning of 18 June. Our winners had no problem finding their special flight on the display: LX 9014 to Montpellier and Lille, departure 07:45. A bus took Ambros, Anejan and the further (public) winners from the gate to the aircraft s stand. A bus to themselves: now that s travelling in style! The crew was waiting at the Airbus A320. With its Hopp Schwiiz scarves and its specially-branded headrest covers, the cabin was awash with red and white. Next stop: Montpellier, where the Swiss soccer squad was based for their Euro 2016 campaign. The flying time was just one hour and the aircraft was virtually empty, yet still the rising excitement was clear. It s not every day you get to jet around with the Swiss soccer team! But what would they be like? Would selfies and autographs be OK, or would they just keep themselves to themselves? Up close and personal When the flight landed in Montpellier, the Swiss team bus was waiting already. The players boarded, a picture of concentration. They were clearly tense, too, before their final group-stage game against tournament host France. But some of them still managed a quick Morgä and a smile. After an hour on the ground it was off to Lille, where the key France match would be played the following day. Hardly had the flight reached cruising altitude than Ambros and Anejan were up with team captain Stephan Lichtsteiner and such stars as Ricardo Rodriguez and Admir Mehmedi for photos and autographs. There were a fair few congratulations on the team s results so far, too. So how was it for Ambros? Flying with the players to their next Euro game: amazing! he says enthused. Bienvenue On arrival in Lille there was ample time for sightseeing. The picturesque Old Town also offered several bars to get into the Euro mood. Our winners took the chance, too, to mix with the other fans in the city s reddecked squares. Thanks for the great games! Sadly the Swiss team are now out of Euro But we would like to say a big thank-you to them for the great games they played. And we look forward to the qualification tournament for the 2018 World Cup! The lucky few: Ambros (third from right.), Anejan (second from right) and the winners from the public with our SWISS crew. Photos: Florian Flämig Reason to be cheerful: a goalless draw was enough to send Switzerland through to the round of 16. Admir Mehmedi gave a lot of his time for photos with our winners and autographs, of course! Health Management Don t forget the sun cream! Sunshine, a pleasant temperature and a gentle breeze: the perfect conditions to lie in the sun and get a bit of a tan. But remember how you always seem to see some very red faces every year after the first real summer s day? If you re going to lie in the sun, don t leave your skin unprotected from its ultraviolet rays! The sun emits two types of ultra violet rays: UV A and UV B. While the UV B rays only reach the surface of the skin, the UV A rays go deep into the tissue. UV B rays stimulate the body s production of vitamins, which are important for the muscles, bones and teeth. The UV A rays are the ones that turn the skin brown. But if we are exposed to too many UV A or UV B rays, they will attack our DNA. And if they do so too often, our body can no longer repair the damage, and skin cancer may result. UV rays can vary in their intensity. In southern countries, in the mountains and near water they are stronger than they are in Switzerland s Mittelland. Sun protection tips Shade is the best sun protection of all. So try to avoid direct sunlight over the midday period (from 11:00 to 15:00). Also, wear sunglasses, a sun hat and dark clothing, apply sun cream with a high sun protection factor (SPF 30 or more) before you venture into the sun, and don t forget to reapply it, especially if you ve been in the water or if you sweat. The time you can remain in the sun before your skin starts to react to its rays will depend on your skin type. The lighter your skin, the more sensitive it will be, so the higher the SPF should be in the sun cream you use. But if you see any sign at all that you skin is turning red, you should definitely head for the shade! In addition to all this, you should check your skin regularly for any changes you may notice, especially with any moles or other pigmentation marks. And if you find any such changes, have them examined by a doctor. SWISS Health Management

10 10 LUFTHANSA GROUP The CH/EU bilateral agreement A vital accord for all our futures The bilateral air services agreement between Switzerland and the European Union lays the foundation for Swiss civil aviation today. And the loss of it would have huge ramifications Ronald Abegglen It was back in the early 1990s that the European Union totally liberalized its air transport sector to create the European aviation market. Since then, any route within the market can be flown without restrictions by any EU-based carrier. In providing these parameters, the EU has clearly opted for competitive forces over state market regulation. And to prevent any market abuse or anticompetitive conduct, it subjects all its air transport to EU competition law. The liberalization prompted a boom in the EU aviation sector. Since the market and its accessibility were established, the numbers of intra-eu air routes and flights have grown exponentially, while the fares for such services have slumped. So all in all, air travellers in Europe now enjoy more connections and lower fares. Access to the world Airlines based in Switzerland also enjoy the same status as any EU-based carrier within the European aviation market, thanks to the bilateral air services agreement between Switzerland and the EU that came into effect in The agreement has substantially improved the air links between Switzerland and the EU zone; and we now have numerous Swiss and EU airlines cultivating the Swiss air travel market. As further effects of the agreement, Swiss air transport is subject to the same rules as those of the European aviation market; and Swiss-based carriers can also enter into collaborations with their EU counterparts. The Swiss/EU bilateral air services agreement isn t just vital in linking Switzerland with Europe s main centres, though. Switzerland s direct air connections with key intercontinental destinations are also heavily dependent on the accord. These connections are remarkably extensive, given SWISS like any network carrier can only offer its wide range of long-haul services thanks to the transfer traffic it attracts. Photo: SWISS Switzerland s market size: SWISS alone offers 26 daily flights to 23 intercontinental destinations. But SWISS like any network carrier can only offer such a range of long-haul services thanks to the transfer traffic it attracts: if SWISS were to rely on its home market alone, it could only viably operate to five long-haul destinations. These transfer passengers come to Zurich from all over Europe to connect onto the SWISS intercontinental network (or vice versa). And it s thanks to our unrestricted access to the European aviation market that we can provide the feeder flights the market demands, and thereby both extend the scope and raise the profitability of our entire route network. It s not just for us that this European market access is vital, either. Almost all the for- eign airlines that connect their home country with Switzerland through scheduled long-haul services are dependent to a degree on having partner carriers in Switzerland who can help them distribute their passengers throughout Europe upon their Swiss arrival. In other words, then, Switzerland s entire connectivity with the If no solution is found, Swiss airlines' very existence could be threatened. world s air transport system depends on having this liberalized access to the European aviation market. Much at stake The future of the Swiss/EU bilateral air services agreement is currently in the balance, though, and is closely linked to how the Masseneinwanderungsinitiative against perceived mass immigration to Switzerland that was approved by the Swiss electorate in February 2014 is put into practice. The bilateral air services agreement is inextricably linked to the Swiss/EU freedom of movement agreement (which runs counter to the demands of the Masseneinwanderungsinitiative ); and if Switzerland and the EU cannot reach agreement on implementing the initiative s demands and the freedom of movement agreement is terminated as a result, the bilateral air services agreement will automatically be abolished six months later. This would have huge ramifications for Swiss aviation. Free access to the European aviation market would be lost, and the earlier bilateral air services agreements with individual EU member states (or those still in existence) would have to be revived. Those individual agreements, though, date from pre-liberalization times, and are correspondingly restrictive. So the routes, frequencies and other aspects of the services concerned would be a lot more limited. The present range of air services between Switzerland and the EU would inevitably be reduced, at least in the short to medium term. And this would have a correspondingly adverse impact on Switzerland s connectivity with the world. In fact, if new replacement agreements could not be concluded within a fairly short time, most Swiss-based airlines would find their very existence at risk.