InfoTALMA N°2 - ENG

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INSTITUTIONAL BULLETIN

NO. 2 / SECOND TRIMESTER / 2017

START OF OPERATIONS IN ECUADOR

We are expanding within the region

P. 04

SECTOR STATISTICS P. 12


Friends and colleagues: We have reached the middle of the year and achieved some important milestones, including the 25th anniversary of Talma, the start of our operations in Ecuador and our 20th station in Peru. These achievements are due in large measure to the confidence placed in us by our clients and other stakeholders, who have accompanied us as we have grown. In this second edition of the InfoTALMA bulletin I would like to share with you some of the highlights of the second quarter of the year, including items of interest, news about our operations at Lima Airport and our Hub Control Centre (HCC), which has improved integration with some of our clients. I hope you find the bulletin's contents interesting. Best wishes,

Arturo Cassinelli Sanchez General Manager


TABLE OF CONTENTS TALMA NEWS Start of operations in Ecuador

4

We are present at 20 airports in Peru

5

We started ISO 37001 certification process

6

TOPICS OF INTEREST Importance of a CAN court ruling on the incorporation of transport documents into cargo manifests

6

Advantages of outsourcing aircraft maintenance

8

OPERATIONS Crew bus on the apron at Jorge Chavez

9

HCC. Better integration with our clients

10

SECTOR STATISTICS Evolution of foreign trade

12

Imports and exports

14

INSTITUTIONAL BULLETIN NO. 2 / SECOND TRIMESTER / 2017

Contact Jr. Doménico Morelli 110, piso 4, San Borja T. +51 (1) 513 8900 relaciones.institucionales@talma.com.pe


TALMA NEWS

We are expanding within the region

Start of operations in Ecuador

Start of operations in Ecuador. May 2017

As part of our regional expansion strategy aimed at consolidating Talma as one of the leading airport services companies, last month we began operations in Ecuador. To achieve this milestone, making Ecuador the third country in which we have a presence, in addition to Peru and Mexico, we have acquired 100% of Rampas Andes Airport Services del Ecuador. At present we are operating in Ecuador as Andes Airport Services, which we shortly expect to change to Talma Ecuador. This acquisition gives Talma another dimension and enables us to offer greater benefits to our clients through synergies between the services we provide in the three countries in which we operate, as well as to introduce the technological improvements implemented

in Peru and Mexico in Ecuador as well. We now have a presence in 7 airports in Ecuador: Quito, Guayaquil, Cuenca, Manta, Baltra, San Cristรณbal and Coca, amounting to 30% of the ground handling services market in Ecuador. Talma's growth and international expansion has been possible thanks to firm backing from our clients, which has encouraged us to improve and expand our services, thus assuring the growth of our operations in the countries in which we operate.

We currently operate as Andes Airport Services

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TALMA NEWS

In Ecuador an integral package for logistics for ground handling. Our principal activities include:

Loading and discharging of aircraft Cabin cleaning services Baggage coordination Ground handling services / GH

Ground support equipment / GSE Electrical generators Pushback tractors Drinking water Waste water disposal, among other services.

Presence at 7 airports in Ecuador

Talma in Peru

We are present at 20 airports in Peru We began operating in 1992 providing air freight services in Lima. Two years later we started providing ground handling services and extended our operation to Iquitos, our first provincial station. That was the start of our expansion in Peru.

JAÉN IQUITOS CAJAMARCA TUMBES PIURA TALARA

TARAPOTO

CHICLAYO

PUCALLPA

TRUJILLO

CUSCO

HUÁNUCO PUERTO MALDONADO

LIMA JAUJA

Today, with the inauguration of Jauja station in the first half of the year, we have presence at 20 airports in Peru. This is largely because of the confidence that our clients have placed in us enabling us to serve them wherever they operate.

JULIACA

AYACUCHO PISCO AREQUIPA TACNA

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TALMA NEWS

We strengthen our Integrated Management System

We started ISO 37001 certification process At Talma we have started the certification process under the guidelines and requirements of the ISO 37001 Anti-Bribery Management System. This certification involves the identification of internal and external bribery risks in our processes, with the objective of establishing policies, controls, indicators, as well as continuous monitoring and evaluation to prevent, control and react appropriately to situations of bribery The scope for other acts of corruption. This certification will be part of the Integrated Management System, which will strengthen Talma's culture and capacity in the fight against corruption, as well as strengthen the ethics and good performance of our business and employees.

TOPICS OF INTEREST

Importance of a CAN court ruling on the incorporation of transport documents into cargo manifests Peru is a member of the Andean Community (CAN), and is therefore obliged to comply with regulations issued by it, as well as rulings produced by the CAN Court of Justice.

the permitted time (2 hours before arrival of the means of transport for air freight), but those made before arrival of the aircraft are not applicable according to the CAN Court.

In this context, on the 7th of August 2015 the Official Gazette of the CAN published a ruling by the Andean Court of Justice concerning case 01-AI-2013, an allegation of non-compliance lodged by various Peruvian transport companies; the ruling states:

2. The Republic of Peru should review all internal legislation

1.

The information contained in a cargo manifest transmitted by electronic means is definitive at the time of arrival of the means of transport, therefore any modification, correction or addition made before that time cannot be subject to any sanction whatsoever, and the sanction established in numeral 6, paragraph d) of article 192 of the Customs Act cannot apply. Thus, documents must be incorporated, and fines will be imposed upon carriers for incorporating documents outside

relating to cargo manifests and their definitive nature (laws, regulations, reports, rulings, circulars, etc.), and those contradicting Decision 671 of the Andean Community Commission must be amended to prevent any further allegations of non-compliance in this regard. In compliance with the ruling in question the Legal Affairs Department of SUNAT sent covering letter N° 006-2015-SUNAT-5D1000 to the Peruvian Association of IATA Freight Forwarders Carriers (APACIT), including Circular N° 0001-2015-SUNAT/5D1000, which implements the decision of the CAN Court in case 01-AI-2013 and annuls reports N° 089-2011-SUNAT/2B400 and 083-2012-SUNAT/4B4000 and InfoTALMA

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TOPICS OF INTEREST

other reports that contradict the provisions of the CAN Court; circular states that the penalty contained in numeral 6) of paragraph d), article 192 of the Customs Act, approved by Legislative Decree NÂş 1053, does not apply in cases involving the modification, correction or addition of documents to a cargo manifest up to the time of arrival on Peruvian soil. Details of the infringement in question are as follows: Infringement Transport documents not shown in cargo manifests unless these have been included correctly in the declaration

Legal basis Numeral 6), paragraph d) of article 192 of the Customs Act - Leg. Dec. N° 1053

Fine 1 STU for sea freight 0.5 STU for air freight, road, river or other means of transport

In other words, if air freight documents are incorporated less than two (2) hours before the arrival of the aircraft -for example one (1) hour before- but still before the aircraft reaches Peruvian territory, this is not an infringement and therefore no fine can be imposed. Consequently, fines imposed on carriers up to the date of the ruling need not be paid.

regulation) infringed Andean Community law, and is therefore a declaratory judgement. Thus, carriers should apply for the reimbursement of these fines in reference at payments made before the current Customs Act and its executive regulations took effect (October 2010) . It should be borne in mind that article 155 of the Customs Act establishes that the duty of Customs to reimburse undue or excess payments prescribes after four (4) years commending on the first (1st) of January of the year following that in which the undue or excess payment was made; therefore payments made from 2013 onwards should be reimbursed. Finally, it should be pointed out that in October 2016 modifications to the Customs Act and its executive regulations regarding the entry and exit of merchandise took effect; these modifications incorporated the ruling by the CAN Court enabling the incorporation of documents up to the time of arrival of the means of transport, without this constituting an infringement. This modification also applies to freight forwarders regarding the incorporation of house transport documents into an unconsolidated cargo manifest.

The scope of the Andean Community ruling applies from the time the Peruvian legislation (the Customs Act and its executive

Lima Cargo City

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TOPICS OF INTEREST

Advantages of outsourcing aircraft maintenance

Talma provides aircraft maintenance services

Aircraft maintenance encompasses a group of activities that must be performed to enable an aircraft to remain in optimum condition. They include a complex mix of preventive work, programmed and unprogrammed, repairs and reconstruction that may be carried out by the airline or by a third party. Today many airlines outsource different maintenance tasks. Outsourced work varies widely in its scale and scope, and can be limited to line services only, overhaul of different components or engines, or the performance of a heavy check. Outsourcing is an attractive option when an operator does not have a large fleet that would justify the cost of contracting and training personnel, acquiring premises, tools, testing equipment and other measures required to carry out effective maintenance in-house. Equally, an operator with a large fleet that performs its own maintenance may outsource in order to maximise its operating capability when the demand for the service exceeds its capacity, or to maintain a moderate workload. In both cases having maintenance carried out externally can produce substantial savings, as well as ensuring the airworthiness (safe operation) and reliability of the fleet.

economies of scale - an external supplier may be able to complete the task more efficiently, in less time, at a lower cost and using fewer resources than the operator. External suppliers can also offer highly specialised services when necessary, relieving the operator of the cost of developing skills in-house that are not continuously necessary. Furthermore, outsourcing means that an airline can focus on its core business. Talma has an aircraft maintenance business unit, through which it provides line maintenance services. To do so it possesses permits and certification from the following aeronautical authorities: Peru's Civil Aviation Bureau (DGAC), the United States Federal Aviation Authority (FAA), the Civil Aviation Bureau of Chile (DGAC), Ecuador's Civil Aviation Bureau (DAC), and the Civil Aviation Special Administration Unit of Colombia (Aerocivil). It also employs aeronautical technicians holding licences from the Panamanian DGAC and the United States FAA.

An external supplier usually has multiple contracts, considerable demand and large workforce, enabling it to perform the service at a lower cost than the operator itself. In other words - because of InfoTALMA

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OPERATIONS

A more efficient service:

Crew bus on the apron at Jorge Chavez

Crew bus

A large team of trained and committed collaborators is essential to providing an excellent service. At present we have more than 2,000 employees working on our ground handling operations at Lima's Jorge Chavez International Airport, approximately 700 collaborators per shift working in different areas of the airport. These employees travel considerable distances to their places of work, which not only poses an operational risk arising from people walking around the apron, but also additional fatigue for Talma employees who already have physically demanding jobs. For that reason the Ground Handling Business Unit has arranged a bus service with the airport authorities for the exclusive use of personnel on the apron, providing transport between workplaces, to and from the ground handling operations base where their shifts start and end, or for meal breaks. This bus makes the transfer of employees between workplaces more efficient, which also helps to improve our services to Talma's clients.

Exclusive use of our employees

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OPERATIONS

Hub Control Center

Better integration with our clients

We have HCC leaders in our clients' Hub Control Center

Two of our principal clients have incorporated a Hub Control Centre (HCC) into their operations; it is a centre where all departments involved in the operation are represented and can take decisions in the event of a contingency in a speedy and coordinated manner, thus improving the service provided to the end user: the passengers. As Talma is one of the main suppliers to the airlines, we have a representative in the HCC of each of the two clients, with first hand access to flight information and able to coordinate directly with our own Operations Control Centre (CCO) to eliminate untoward events in the service. For the purposes of this integration, Talma has chosen leaders from its staff who have demonstrated the abilities and motivation necessary to assume this important function. W therefore now have "HCC Leaders" whose work helps to improve the levels of service we provide to our clients. This joint work shows that integration with our clients generates efficiencies, and that in Talma we have personnel with the skills and abilities necessary to collaborate in the most efficient way in cooperation with our clients. LĂ­der HCC realizando sus actividades

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COURSE SCHEDULE - SEMESTER II / 2017 Date JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

Course

Hours

Schedule


SECTOR STATISTICS

Foreign trade statistics Total Exports | Peru (all modes of transportation) Source: Sociedad de Comercio Exterior del Perú - COMEX

25000

Total exports (Ton)

22,133,945 21,153,242

20000

15000

10000

5000

4,319,565 4,365,793 3,850,317 4,082,792 2,955,683 3,596,987 3,549,442 3,651,169 3,282,373 3,311,226 3,438,257 2,883,583

Total 2017

Total 2016

Jun.17

Jun.16

May.17

May.16

Apr.17

Apr.16

Mar. 17

Mar. 16

Feb. 17

Feb. 16

Jan. 17

Jan. 16

0

Total exports - Var (%) 0.25

19.57%

0.2 0.15

16.28%

13.83%

0.1

04.64%

01.34%

0.05 0 -0.05

-05.48%

-0.1 -0.15

-14.04%

-0.2 Jan 17/16

Feb 17/16

Mar 17/16

Apr 17/16

May 17/16

InfoTALMA

Jun 17/16

Jan-Jun 17/16

12


SECTOR STATISTICS

Total Imports | Peru (all modes of transportation) Source: Sociedad de Comercio Exterior del Perú - COMEX

Total imports (Ton) 20000

17,913,533

18000

15,853,092

16000 14000 12000 10000 8000 6000 4000 2000

2,782,569 2,946,483 2,835,182 3,179,879 3,155,986 3,013,433 3,097,168 2,826,446 2,749,968 2,598,942 2,453,429 2,458,445

Total 2017

Total 2016

Jun.17

Jun.16

May.17

May.16

Apr.17

Apr.16

Mar. 17

Mar. 16

Feb. 17

Feb. 16

Jan. 17

Jan. 16

0

Total imports - Var (%) 0.35

29.35%

0.3

22.83%

0.25 0.2

14.76%

0.15

13.00% 09.09%

0.1 0.05 0 -0.05

-01.55%

-04.87%

-0.1 Jan 17/16

Feb 17/16

Mar 17/16

Apr 17/16

May 17/16

Jun 17/16

Jan-Jun 17/16

Imports: Sea, road and air comparison Source: Sociedad de Comercio Exterior del Perú - COMEX SUNAT

Imports (Ton) 2017 3500000 3000000

2,854,305

3,082,536

3,055,577

2,922,583

2,725,226

2,675,991

2500000 2000000 1500000 1000000 500000 0

87,550 5,188

January

86,223 5,151

February SEA

87,462

91,913

5,967

March

102,315 5,845

6,162

April

ROAD

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May

97,624 6,412

June

AIR

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SECTOR STATISTICS

Imports and exports Total air imports Source: SUNAT

Air total imports (Ton)

25000

19,759

20000

19, 649

15000 2016

10000

6,129

6,243

6,885 6,260

7,146 6,745

7,245

7,334 6,844

7,086

2017

7,855 6,754

5000 0

Jan

Feb

Mar

Apr

May

Jun

Total

Air total imports - Var (%) 0.2

16.31%

0.15 0.1 0.05 0

05.94% 01.86% Jan 17/16

01.22% Feb 17/16

Mar 17/16

Apr 17/16

03.53%

Mar 17/16

03.25%

Jun 17/16

Jan-Jun 17/16

-0.05 -0.1

-09.07%

-0.15

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SECTOR STATISTICS

Total air exports Source: Talma / Frío Aéreo

Air total exports (Ton) 70000 60000

57,480

58,992

50000 40000

2016

30000

2017

20000

13,952

15,457 8,669

10000

7,114

0

January

8,068

9,224

7,850

February

March

10,748 9,025

10,100

April

9,239

May

7,025

June

Total

Air total exports - Var (%) 0.3

21.86%

0.2 0.1 0

10.78%

06.42%

02.78% Jan 17/16

Feb 17/16

-0.1

Mar 17/16

Apr 17/16

Mar 17/16

02.63% Jun 17/16

Jan-Jun 17/16

-02.16%

-0.2 -23.97%

-0.3

Air exports by cargo type Source: Talma / Frío Aéreo

Air Exports (by cargo type) Ene - Jun 2017 (Ton)

11,791 20% 80% 47,200

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Refrigerated Dry

15


SUPLEMENTO CON

TRATADO / Lunes 26 de junio

de 2017

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03

DOWNLOAD SPECIAL SUPPLEMENT

“25 AÑOS BRINDANDO SERVICIOS AEROPORTUARIOS QUE GENERAN CONFIANZA” PUBLISHED ON MONDAY JUNE 26 | EL COMERCIO

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Brindando servicio s

aeroportuarios que generan confianza.

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