NEWS Six-Eighty

Brought to you by Unical Publication Dept.

HAECO EISP -By Montilla Red for Fred

Special thanks to Red Cross + Be a Match + Unicalians

O C T O B E R 2 0 1 2

Soaring to New Heights -By The Publication Dept.

Quiz Check out last page

SIX-EIGHTY NEWS OCTOBER 2012

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Give Red to Save Fred

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Camaraderie and loyalty are virtues that run deep within the pulsing heart of Unical Aviation. This is why after hearing of Fred Sy’s illness, everyone in the company’s heart bled for our dear friend and his family. The friendships that are created within the walls of Unical do not exist merely as work relationships, but as personal ones—true friendship—and our friend was in need.

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Stepping into immediate action, Jasmin Flores and Kelly McLaren co-created a large event in hopes to support our friend in need. The Unical Aviation Blood Drive and Bone Marrow Registry event for Fred Sy was created to assist those ailing of blood disorders such as the Leukemia Fred is currently battling. It is no surprise that with all of the big hearts belonging to Unical Aviation family members, that the desire to help spread like wildfire. With the roaring amount of support up heaving from every department, the drive was set into motion. With the very gracious assistance of Andrew Ko, Eddie Chen, and Richard Hoang, the drive began taking shape into more than just a company blood drive but a reaction—a resolution.

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The Blood Drive and Marrow Registry event, held on October 1st, was a major success. We had 140 people sign up to attend the event and more than 80 people were able to donate their blood, which was well above the target set by the American Red Cross. Be the Match, the bone marrow registry program, reported an upsurge of registrants equaling to 60 new members from our event alone. The event’s record numbers were joyous news to the representatives from the Be the Match program, who had just returned from a 3 day drive resulting in a total of 5 sign ups.

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While it was Unical Aviation that made the first step into supporting the cause and spreading awareness about the dire need to donate, many other companies followed suit. The Unical Aviation Blood Drive spurred the creation of other drives and inspired many to help. Other aviation companies have pledged to take a step forward, and have committed to hold drives to save lives.

From the very bottom of our hearts, we would like to thank everyone who supported the cause, Give Red to Save Fred, with whom our great success would not have been possible. Thank you.

-Alexis Edgar

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To view the photos of the event, go to: http://prezi.com/d6frn7on0ppl/family/

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Soaring to New Heights

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Manifest Destiny was a commonly held belief among Americans in the 19th century, allowing people to expand westward during the early years of our country’s founding. The sea was the limit. Now, years later, the idea is still the same—everyone wants to expand—but for Unical Aviation, the sky is the limit. As a leading distributor in the aviation industry, Unical Aviation is on the track to becoming a globally renowned supplier of aircraft spares. While having the knowledge and inventory to become the best helps, there is more to the equation of success. In order to maintain and supersede the current leadership ranking within the global market, Unical Aviation leaders must strengthen the entire company until it becomes the bastion of the industry. Much like the wings of an aircraft assist in the lift-off of a turbo-jet, team leadership and management in a company aid in the lift-off of small businesses and multi-million conglomerates alike. Before takeoff, the angle of attack is very slight and the air pressure is not great enough to lift the massive aircraft. Unless a company is geared and ready for takeoff, they will not have enough positive pressure to lift themselves to a successful standing. Team leaders and management are responsible to create the lift within the company to reach higher levels of success. The management leaders in companies must work with higher pressure of their understudies and must move fast, working with the slower paced individuals who are just staring out.

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Unical Aviation’s past management infrastructure has allowed the company to begin ascent, and now as the Chief Operations Officer settles the company into new roles, takeoff is imminent. Although opposition will undoubtedly be present, in order to continue to soar to new heights, the high and low-pressured must work together. One of the benefits of working in such a company, as Unical Aviation, teamwork is outstandingly willful. Teamwork implies that the company will work as a whole and trust that no individual will work solely for themselves. Trust is vital to the success of any relationship, and work is no exception. As much as we trust that the wings will support the aircraft on our trips to Hawaii, or the trust we give to our pilots to fly us to our destination safely, we must trust in our management teams to lift our company to its best. In order to soar above our competitors and expand physically and financially, a lift needs to be created. It is upon you, team members and family of Unical Aviation, to be the lift. Together we must create a name to stand behind; we must be the force to lift the company to become its very best. We are the air to this company’s wings, and we are soaring to new heights.

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HAECO EISP: A Partnership Towards Growth

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inventory, Unical has committed to being HAECO’s turnkey solution of planning, purchasing pricing, logistics. In essence, we are now the total supply chain for HAECO for Expendable Type Spares. Aside from supporting HAECO in this partnership program, Unical has also extended the EISP contract to support 3 of their subsidiaries, namely Taikoo Aircraft Engineering (TAECO), in Xiamen, and Taikoo (Shandong) Aircraft Engineering (STAECO), in Jinan, and Singapore HAECO Aircraft Engineering (SHAECO). This partnership places Unical in great stead for future growth in the Asia region over the coming years as Hong Kong serves as a pivotal gateway to mainland China and other destinations within Asia. As of 2011, China represented only 9 percent of the global aviation market but is projected to have the strongest growth rate at 9.6%. In

comparison, the Asia-pacific region was forecasted to grow at half that rate, at 5.3% respectively. On a more microcosmic level, Hong Kong International Airport experienced an 11% increase of passenger traffic last year and as a result, HAECO is slated to complete their fourth maintenance hangar in 2015 to keep up with the growing demand of their services.

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Nestled within the blue corner of our polychromatic office, most of you by now may have noticed a growing group of individuals catering to Unical’s newest service sector for HAECO, namely the Expendable Inventory Support Program (or EISP as it is affectionately called). But one might ask, who exactly is HAECO and why are we supporting their expendable inventory? In a nutshell, HAECO is one of Asia’s premier MROs, with their principal activities being the maintenance, modification, repair and overhaul of commercial aircraft and their components. Since its establishment in 1952, HAECO has grown to become one of the world’s leading MRO operations, ranking in the top five by total airframe manhours in 2011. HAECO currently provides repair services to over 80 airlines worldwide, employs more than 14,000 people and generates annual revenues totaling USD $670M in the process. In recognition of their success, they recently celebrated their 60th year in operation by being voted as 2012’s Leading Independent MRO Organization by Aviation Week’s Overhaul & Maintenance and 2012’s Best Airframe MRO Provider in Asia at the Aircraft Technology Engineering & Maintenance Awards. In signing this contract to support their expendable

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Another key area of HAECO growth lies within their inventory technical management (ITM). On Sept 24, HAECO and Cathay Pacific formally teamed up to form an ITM joint venture called HAECO ITM Limited (HXITM). HXITM involves pooling component parts inventories for use across a number of carriers and while HAECO has previously had similar arrangements covering specific aircraft types, this new ITM partnership with Cathay will be fleet-wide and extended to Dragonair, as well as other third party airline customers. As the exclusive supplier responsible for supplying the expendable spares for these component pools, Unical has been advised by HAECO’s top management to expect significant growth rates within the coming 12-18 months. As HAECO’s Chief Executive Officer Augustus Tang noted, “This is a milestone development for HAECO. The global trend is that airlines will outsource more non-core capital intensive engineering activities such as component management to service providers. This transaction enables improved economies of scale and creates synergies with Cathay Pacific, putting the best-in-class joint venture organization in a strong position to manage supplier relationships and secure potential customers in the Asia Pacific region where strong growth is expected.”

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To date, Unical has been contracted to support over 72,000 parts. We have integrated our Quantum ERP with their Echo ERP, allowing us to receive real-time information about their maintenance operations and build an unquantifiable treasure trove of data mineable information about MROs and airline checks to. As a performance-based long term agreement, the EISP team consists of dedicated planners, buyers, pricing team, finance team, analysts, account management and warehouse support personnel to support the rigors of being a turnkey solution for HAECO’s complex supply chain. Factoring this long-term commitment, the EISP platform of processes and systems were always designed and built for scale as we position Unical to generate additional revenue via HAECO’s internal growth and new EISP customers. With the multitude of regional and strategic growth opportunities at Unical’s fingertips, increasing brand recognition derived from this partnership, growing MRO business intelligence from the systems integration, and potential for opportunities of scale cost-savings from additional customers, Unical will be well positioned to capture additional business prospects in the future.

- Mark Montilla EISP Customer Account Executive

HAECO logo & photos are copyrighted by

HAECO

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SIX-EIGHTY NEWS OCTOBER 2012

Editor’s note

HAECO Quiz-

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Congratulations to the winners of previous edition of Magic Castle Quiz!

Our maiden voyage is sailing smoothly through a sea of readers, considering it acquired over 300 clicks, solely on the day of its debut.

This would not be made possible without you, our readers, and the support of the management. Our mere goal in creating this newsletter is to act as the medium of information in our quickly growing company.

The publication team is mainly comprised of A. Edgar, our tireless house writer, and A. Abraham, the creative force behind anything possible. The Publication Staff is also proud to welcome the lovely Ms. Emily Chen as our part-time graphic designer and inspiration.

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This edition explores and acknowledges the successful Red for Fred campaign and the effort that was generated to strengthen our bond as Unical family. For anyone who missed the action, click the link at the end of the article to Prezi presentation entitled “f.a.m.i.l.y.”

Soaring to New Heights discusses the great strides this company is making, while stamping our mark in welcoming the new era of Unical’s management to greater heights.

The last article, shared by Mark Montilla divulges the knowledge of Unical’s strategic business endeavor, commonly referred to as EISP. His EISP-related travels between California and Hong Kong brought about a story you do not want to miss!

Till the next issue-

Six-Eighty Pubs

A.A.

1. How many years has HAECO been in operation? A) 52 B) 60 C) 67

2. What is the name of HAECO’s most recent joint venture? A) HAECO ITM B) TAECO C) SHAECO

3. EISP has become: A) HAECO’s consumable total supply chain B) HAECO’s turnkey solution for expendable

and rotables C) All of the above

To participate: Please submit the answer to pubs@unical.com. Participant who has the right answers will then be raffle and winners will be announced on Friday, October 26th 2012