Corporate Social Responsibility
Report
Table of Contents
Letter from our Chief Executive Officer ����������������������������������������������������������������������������3 About this Report......������������������������������������������������������������������������������������������������������������������� 4 Materiality ................................................. ���������������������������������������������������������������������������������������������������������������� 4 Stakeholders ............................................. �����������������������������������������������������������������������������������������������������������������5 Participation in International Forums and Social Responsibility Initiatives
Company Description
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Corporate Governance............................. ���������������������������������������������������������������������������������������������������������������� 8 Anti-Corruption Policy............................... ���������������������������������������������������������������������������������������������������������������� 8 Money Laundering Prevention................. ���������������������������������������������������������������������������������������������������������������� 9 Our Products and Services ....................... ���������������������������������������������������������������������������������������������������������������� 9 Main Brands .............................................. ��������������������������������������������������������������������������������������������������������������� 10
Sustainability in Aeromexico
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Environment.............................................. ��������������������������������������������������������������������������������������������������������������� 12 Community................................................ ��������������������������������������������������������������������������������������������������������������� 18
Our Employees...........������������������������������������������������������������������������������������������������������������������25 Quality of Life ........................................... ���������������������������������������������������������������������������������������������������������������25 Job Creation ............................................. ���������������������������������������������������������������������������������������������������������������25 Our Team in Figures .................................. ���������������������������������������������������������������������������������������������������������������26 Labor Unions ............................................ ���������������������������������������������������������������������������������������������������������������27 Benefits and Compensation ..................... ���������������������������������������������������������������������������������������������������������������28 Health and Safety Committees ................ ���������������������������������������������������������������������������������������������������������������28 Our Employees’ Health : .......................... ���������������������������������������������������������������������������������������������������������������29 Communication Services .......................... ���������������������������������������������������������������������������������������������������������������30 Training ..................................................... ���������������������������������������������������������������������������������������������������������������30 Performance Evaluation .......................... ��������������������������������������������������������������������������������������������������������������� 31 Ethical Behavior ....................................... ��������������������������������������������������������������������������������������������������������������� 31
Our Clients..................������������������������������������������������������������������������������������������������������������������33 Quality and Safety .................................... ���������������������������������������������������������������������������������������������������������������33 Protection of Personal Data .................... ���������������������������������������������������������������������������������������������������������������33 Customer Experience ............................... ���������������������������������������������������������������������������������������������������������������33 Procedure for Complaint Receipt, Evaluation and Resolution ���������������������������������������������������������������������������35
Our Suppliers.............������������������������������������������������������������������������������������������������������������������37 Annex 1: ......................����������������������������������������������������������������������������������������������������������������� 38 Annex 2:......................����������������������������������������������������������������������������������������������������������������� 38
Letter from our Chief Executive Officer (G4-1)
It is a great satisfaction to present our 2013-2014 corporate social responsibility report, which includes our economic, environmental and social achievements associated with our operation. This document contains the practices we have consolidated throughout this period; the new actions we have implemented to improve the service provided to our passengers; the progress in the performance of our fleet, which has resulted in major economic savings and the improvement of our environmental performance; the program we are implementing in order to have an environmental management system, as well as the new corporate social responsibility strategy whose goal is to bring long-term benefits to our community. The economic, environmental and social actions undertaken during 2013 and 2014 highlight our commitment with sustainability and stress the importance to Aeromexico of supporting the aviation industry efforts to reduce CO2 emissions worldwide. For us, it is evident that companies which incorporate sustainability into their corporate strategy are more attractive to new talent and our clients, the community and investors. Thus, we are constantly looking for more efficient processes and international best practices. In Grupo Aeromexico we are pleased to share our efforts, the results we have obtained and the new challenges we face.
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Corporate Social Responsibility Report
About this Report
T
his document provides a description of Grupo Aeromexico activities and performance in corporate social responsibility (CSR) throughout 2013 and 2014.
Materiality (G4-18, G4-22, G4-23)
The process used to define the contents of this document as well as the scope of the report consisted in interviewing each department in Aeromexico who attend the needs and expectations of different stakeholders and detect the topics most commonly addressed in the interaction with the company. The feedback we obtained from clients, employees, government authorities, communities, civil society organizations, chambers of industry, partners, suppliers and stakeholders was analyzed and determined the topics to be covered in this corporate social responsibility report.
(G4-3, G4-5, G4-17, G4-28, G4-29, G4-30, G4-31, G4-32, G4-33)
It is addressed to our employees, shareholders, communities, organizations, authorities and clients with whom the company interacts. This document has been created in accordance to the core GRI 4 criteria. We include the most relevant actions undertaken since our last report (published in 2012), however, it has not been certified by an external agency to this date. Our CSR reports shall be published on an annual basis. This report is available at: http://aeromexico.com/mx/conocenos/acerca-de-aeromexico/ responsabilidad-social.html.
To determine the issues considered as material, we followed the guidelines suggested in the GRI standard and selected the topics which were: relevant to our stakeholders; had a sustainability context; relevant for the purposes of this report and had an adequate coverage of scope, boundary and time.
This report is focused on Aeromexico’s domestic and international activities. However, it also includes explicit references to Grupo Aeromexico, its subsidiaries and business partners. Unless otherwise stated or implied in the context, all references to “Aeromexico”, “the Company”, “the Firm”, “us” and “our” refer to Aerovias de Mexico S.A. de C.V.
In this report, we identify the topics and the stakeholders (outside the organization) which identified each topics as relevant. In this report we have not made a restatement of information from previous reports nor significant changes concerning the scope and coverage of each aspect.
All comments and inquiries about this document are welcome in the following email:
[email protected] or by postal mail to our headquarters located at Paseo de la Reforma No. 445 Torre A, Piso 5, Col. Cuauhtemoc, Del. Cuauhtemoc, C.P. 06500, Mexico City. Document coordinated by: Corporate Affairs Direction .
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Corporate Social Responsibility Report
Stakeholders
(G4-24, G4-25, G4-26, G4-27)
Civil society organizations:
It is very important for Aeromexico to receive feedback from all our stakeholders as this gives us the opportunity to compare Aeromexico’s performance with the best practices in the industry, as well as to identify opportunities for improvement.
(G4-SO1)
• Through the Corporate Social Responsibility department. • Media: Telephone, mail, direct contact. • Frequency: Constant communication. • Topics: Requests for in-kind contributions, corporate support contributions and financial contributions.
The following list summarizes the type of communication we maintain with each group: Clients • Through the Customer Service department. • Media: Social networks, mail, telephone, anonymous incident reporting system , customer satisfaction surveys. • Frequency: Constant communication. • Topics: Products, service, complaints, suggestions.
Chambers of industry: • Through the Industry Affairs department. • Media: Direct contact. • Frequency: Constant communication. • Topics: Jurisdiction, legislation, infrastructure, best practices. Partners: • We maintain a very close relationship with out SkyTeam partners through the Alliances department. • Media: Direct contact. • Frequency: Constant communication. • Topics: products, services, international legislation, best practices.
Employees: • Through the Internal Communication and Human Resources department. • Media: Our internal portal, weekly newsletter, anonymous incident reporting system, corporate culture satisfaction survey. • Frequency: daily (internal portal), weekly (newsletter), by event (anonymous incident reporting system) and annual (survey). • Topics: corporate culture, operation information, corporate results, internal events, complaints, reports, corporate notices, work satisfaction-related matters.
Suppliers: • Through the Procurement department. • Media: Direct contact. • Frequency: Constant communication. • Topics: products and services, delivery, processes, prices and quality.
Government authorities: • Through the Industry Affairs department. • Media: Direct contact. • Frequency: Constant communication. • Topics: Jurisdiction, legislation, infrastructure.
Shareholders • Through the Relationships with Investors department. • Media: Meetings, mail, telephone, website. • Frequency: Constant communication. • Topics: financial, operative, administrative.
Community: (G4-SO1)
• Through the Customer Service department or Corporate Social Responsibility department. • Media: Telephone, mail, social networks. • Frequency: Constant communication. • Topics: Requests for work positions, corporate contributions and financial support.
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Corporate Social Responsibility Report
Participation in International Forums and Social Responsibility Initiatives (G4-15, G4-16) (PG-P1)
As a company committed to social responsibility, Aeromexico believes it is of utmost importance to participate with the different stakeholders involved in the aviation industry, therefore attended the 38th Annual Convention of the International Civil Aviation Organization (ICAO), which addressed the measures proposed to reduce greenhouse gas emissions through different technological standards, operational measures, alternative fuels, and market-based mechanisms (MBMs). We also participated with the Department of Transportation of the United States and the Mexican Ministry of Communications and Transportation of Mexico in the Forum of Women in Transportation in the framework of the 8th Ministerial Meeting of Transportation of the Asia-Pacific Economic Cooperation (APEC) by providing information on gender equity in aviation and sharing relevant images for the Historical Mural of Women in Transportation. This year, we continue supporting different social responsibility initiatives, such as the Global Compact of the United Nations, Global Code of Ethics for Tourism from WTO, SAFUG (Sustainable Aviation Fuel Users Group), delivering our third report on greenhouse gas emissions to the Mexico GHG program coordinated with the Ministry of the Environment and Natural Resources (SEMARNAT) and CESPEDES, and we obtained the award “Empresa Socialmente Responsable” from the Mexican Center for Philanthropy (CEMEFI) for the fifth year running.
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Corporate Social Responsibility Report
Company Description (G4-4, G4-16, G4-7, G4-3, G4-DMA-EC)
The main activity of Grupo Aeromexico consists in providing air transportation services for people, property, mail and air cargo inside and outside Mexico, as well as providing training and management services, commercialization of franchise systems, stock investment management and management through investment in joint ventures, maintenance services and loyalty programs operation. On March 19, 2002, in full compliance with the Mexican law, Grupo Aeromexico, S.A. de C.V. was incorporated as a company. On April 16, 2011, the statutes were amended in order to change the name to Grupo Aeromexico, S.A.B. de C.V. and to adopt applicable provisions of the Securities Exchange Act (LMV as per its initials in Spanish) to publicly traded companies listed in the Mexican Stock Exchange.
Outstanding Figures 2014
2013
Total ASKs (millions of pesos)
36,217
32,496
Total RPKs (millions of pesos)
28,772
25,010
79.8
77.2
Passengers (thousands)
17,190
15,488
Total Income (millions of pesos)
42,920
39,850
0.76
0.75
7,875
7,572
18.3
19.0
1,680
2,403
Operating Margin (%)
3.9
6.0
Consolidated Net Income (millions of pesos)
783
1,080
Net Margin (%)
1.8
2.7
Load Factor on Scheduled Flights (%)
Total ASK Costs excluding fuel (pesos) EBITDAR (millions of pesos) EBITDAR Margin (%) Operating Income (millions of pesos)
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Corporate Social Responsibility Report
Corporate Governance
(G4-13)
Since our last report, several changes took place with regard to the company’s capital structure. On April 29, 2014, some of Grupo Aeromexico shareholders carried out several transactions aimed at selling approximately 2.3% of the shares of the company to a financial institution. The purchaser’s decision to acquire the shares arose from a derivative financial agreement executed with Delta Master Trust. In compliance with the corporate statutes of our Company, the Board of Directors approved the execution of the derivative agreement and the possible purchase of up to 4.9% of the shares of the Company by Delta Master Trust, provided such derivatives are, as the case may be, encompassed by the Company’s shares, which may or may not happen.
(G4-34)
Aeromexico is divided into structures that ensure functional continuity and the correct assignment of responsibilities to ensure administrative, quality, safety, and operational compliance. In accordance with our statutes and as an internal control system, our Board of Directors has established the following permanent committees: I. The executive committee II. The audit and corporate practices committee III. The nomination and compensation committee The duties of each permanent committee are determined by our Board of Directors. A description of the activities of these committees as well as detailed information on Grupo Aeromexico’s corporate governance matters, such as conflict of interest, minority shareholders, among others are found in our Mexican Stock Exchange Yearly Report.
On May 7, 2014, Grupo Aeromexico was informed that a financial institution had purchased approximately 2.23% of the Company’s outstanding shares the in Bolsa Mexicana de Valores, S.A.B. de C.V. The purchaser’s decision to acquire the shares arose from a derivative financial agreement executed with Delta Master Trust.
The above structures are supported by the following operational committees: the Profitability Committee, the Air Safety Committee, the Technology Committee, the Expenditures Committee, the Procurement Committee, the Marketing Committee, the Ethics Committee and the Quality of Service Committee.
Anti-Corruption Policy (G4-SO4) (PG-P10)
In 2011, we implemented our Anti-Corruption Policy, which is available to all of our employees on the intranet. It seeks to ensure compliance with the requirements imposed by different international laws, including the Foreign Corrupt Practices Act of the United States that prohibits U.S. companies and foreign companies doing business in the United States to make payments to officials (government, company employees and all people acting in an official capacity), with the purpose of obtaining or retaining business. Grupo Aeromexico activities are subject to such laws in any country across the globe.
This type of organization allows Grupo Aeromexico to execute the strategies approved by the Board of Directors and implement industry best practices and regulations.The operating committees were also created to make sure information permeates across all levels of the company by involving representatives of the different management areas related to the topics therein discussed and that aim to: • Analyze operational issues within their scope and reach. • Simplify and expedite procedures. • Streamline decision making processes. • Increase the generation of revenues. • Guarantee cost controls and business assets. • Report on agreements, actions and the progress made to the senior management team, in order to support the implementation of the designated plans.
This policy applies to all board members, officers and employees of Grupo Aeromexico, regardless of where they live or work, as well as subsidiaries, affiliates and third party relations over which Grupo Aeromexico has control or ownership, including joint ventures, its agents, consultants, business partners and other company representatives. 8
Corporate Social Responsibility Report
Our Products and Services
During 2012, the Anti-Corruption Law and Policy were implemented through informative talks and by having all employees sign their acknowledgment and acceptance of compliance with these rules, while also including an anti-corruption clause in the contracts signed by Grupo Aeromexico.
(G4-9)
In Aeromexico we are proud to offer excellent products and services to our clients. During 2014, we transported more than 17,190,000 passengers; 78% of our operations were domestic; 21% were international and 1% were charter operations.
In order to ensure compliance, we have implemented an anonymous incident reporting system, available to stakeholders through our website. These actions reassert our commitment with the prevention of corruption principle enforced by the United Nations Global Compact.
By the end of 2014, Grupo Aeromexico’s fleet comprised a total of 124 airplanes, of which 62 belong to Aeromexico and 62 to Aeromexico Connect. The average age of our fleet is nine years. With our fleet we reach 79 destinations: (G4-6, G4-8)
Money Laundering Prevention Throughout 2014, the requirements contained in the Federal Act and Regulations for the Prevention and Identification of Transactions conducted by using Illicit Proceeds were included in our processes and were implemented in Grupo Aeromexico’s companies in order to prevent such illicit proceeds from being used in certain company procedures which are deemed as vulnerable, which involve corporate clients and the general public.
Destinations Asia
2
Canada
1
United States Europe
Moreover, the vulnerable activities notification procedure was implemented to periodically inform the Financial Intelligence Unit of the Tax Administration System of certain transactions.
15 3
Latin America
14
Mexico
44
TOTAL
79
Additionally, since 2000 Aeromexico is a co founder and member of the SkyTeam global alliance, which reached a total of 20 members in 2014. Overall, the member airlines of SkyTeam fly to over 1000 destinations in 177 countries worldwide. (G4-16)
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Corporate Social Responsibility Report
Main Brands
Aeromexico Vacations
In addition to providing air transportation to people and cargo, Aeromexico offers the following products and services:
This product was launched in May 2012, and is a brand name under which the airline sells vacation packages in the United States and Canada with the support of MLT, a major tour operator in the U.S. market.
Mundo Premier
AM Plus
(G4-4)
Featuring the following products:
Economy class seats provided with the following benefits compared to other seats: greater comfort from check-in until collection of luggage; check-in in Sky Priority; larger space between seats; more reclining capacity; priority label on luggage and boarding priority.
Clase Premier. Offers a superior travel experience in the Aeromexico First/Business class cabin, where the service and comfort please even the most demanding traveler. Salon Premier. Exclusive airport lounges Aeromexico operates at the main airports it serves in Mexico, where it offers direct check-in with passengers without luggage, entertainment, coffee and complimentary bar, a Wineroom, Spa, orientation and information, business services, etc.
Pet Transportation
This service allows our customers to travel with a pet (dogs, cats and birds) within the designated compartment.
Travel insurance
Provides assistance in case of accident or other unexpected incidents that may arise during the trip. The coverage of the insurance starts 12 hours before the flight; continues during the stay of our customers (up to 90 days) and finishes 12 hours after the trip is over.
Club Premier. The first frequent flyer program created in Latin America designed to recognize the preference of our customers through upgrades and exclusive promotions.
Vuela Verde
Pases Premier. These passes provide the possibility of upgrades to Clase Premier, when available at the passenger’s request.
The service allows our passengers to compensate the CO2 footprint of their flight through a project that promotes sustainable development of the community of Nuevo Becal, Campeche, in order to achieve the conservation of the Mayan Forest.
Gran Plan
This product is comprised of segmented vacation packages for all types of consumers, including the services of some of our commercial partners such as hotels, car rental companies, tours and tourist services, including Eco-tourism, swimming with dolphins, golf, and cultural tours, among others.
Aeromexico Concierge
Provides an exclusive reservation service for hotels, restaurants, entertainment activities, car rental, properties, as well as VIP assistance or counseling for hiring any service while in any of Aeromexico’s destinations.
On Board Service
Discount Pass
This consists of entertainment services, special meals, if required; in-flight magazines (Altura and Escala) and newspapers. All of this is provided with the purpose of offering our passengers a unique travel experience.
It provides discount coupons and special offers for events and other services in Aeromexico’s national and international destinations.
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Corporate Social Responsibility Report
Special Services
We offer our passengers several special services, including: Passengers with disabilities: Assistance in airports, wheelchairs, signaling, Braille system, ramps, elevators, accessible restrooms, telephones, accessible waiting rooms and parking spaces. The full list of services provided per airport is available in our website. Other services: Aeromexico provides the following special services on board: in-flight therapeutic oxygen, authorization for the use of an oxygen concentrator, stretchers and incubators. The aforementioned items are available only in Aeromexico and Aeromexico Connect flights (except stretchers and incubators). Unaccompanied minors: The unaccompanied minors (UMNR) service includes assistance at check-in counters, directing the passenger to the departure lounge, assistance prior to boarding, coordination with our crew (flight attendants) prior and during boarding, assistance during the flight, conducting and safekeeping during layovers and entrusting the minor to the designated person in the airport of destination.
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Corporate Social Responsibility Report
Sustainability in Aeromexico Since our last report, a corporate decision was made to join the corporate social responsibility department and Fundacion Aeromexico, so that, through joint efforts, the positive impact on society and the environment is larger and long-term. During 2014, the lead on Aeromexico’s environmental management system was handed over to our Compliance department, in order to have this department and the Corporate Social Responsibility department in charge of promoting sustainability in Aeromexico.The following section lists our progress with regard to environmental and social matters.
Environment Implementing our Environmental Management System (GRI-14, G4-DMA-EN) (PG-P7, PG-P8, PG-P9)
Climate change threatens human activity with an increase in natural disasters like hurricanes, droughts and floods, which have demonstrated their potential to adversely affect population, the economy of the countries affected, tourism industry and hence, the airline industry. Aeromexico is facing climate change considering the precautionary principle, and we continually study the projects that we can individually or collectively implement in our operation to mitigate our impact on the environment.
As of 2016, the activities will be replicated in other facilities of Grupo Aeromexico in Mexico City and other domestic airports. The Environmental Management System (EMS) will allow having a continuous improvement cycle since the planning and implementation process, to the review and improvement activities, in order to fulfill our environmental commitment. This system will establish a standardized process compatible with other requirements, such as, occupational safety and hygiene requirements.
Therefore, during 2015 an Environmental Management System (EMS) will be implemented in the maintenance processes of the Hangar Oriente in Mexico City, which is intended to be certified under ISO 14001 standard in 2016.
The project is planned in three stages: I. Compliance Diagnosis: To be carried out during march and april 2015 in hangars and our service terminals at the Mexico City International Airport as well as other domestic airports. II. EMS Development/Implementation: Focused on the Hangar Oriente, to be concluded on December 2015. III. III. ISO 140001 Certification:To be carried out in june 2016 for the maintenance processes of the Hangar Oriente.
The actions will follow the premises included in Grupo Aeromexico’s Environmental Policy, specifically: Reducing our Greenhouse Gas (GHG) emissions. • Having a more efficient use of resources. • Adopting sustainable practices through the use of products that have less impact on the environment. • Implementing reduction, reutilization and recycling campaigns. The policies, objectives, goals, indicators, processes and structures will be the deliverables throughout the implementation of the system.
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Corporate Social Responsibility Report
Promotion of Biofuels a sustainable future for climate and the aviation industry.
At the beginning of October 2014, we participated in the Sustainable Bioenergy Workshop organized by the Inter-American Development Bank (IADB), the Ministry of Energy (SENER for its acronym in Spanish) and the Danish Embassy in Mexico with the subject: “Opportunities for the development and consolidation of value chains”.
Likewise, as a member of SAFUG (Sustainable Aviation Fuel Users Group) since 2011, Aeromexico has supported the research and development of biofuels that offer a viable alternative to fossil fuels. The objective is to obtain low carbon biofuels without competing for crops intended for human consumption, that produce a positive economic impact on the parties involved in the value chain and contribute to the security of the energy sector in Mexico.
The goal of this workshop was to support a transition strategy aimed at promoting the use of cleaner technologies and fuels in the National Program for the Sustainable Use of Energy, which is considered in the recent energy reform in Mexico Promoting the use and commercialization of biofuels is a key aspect of our corporate strategy in favor of
What we look for in biofuels (G4-EN32)
• They must produce a minimal impact on biodiversity. • They must reach a sustainable standard regarding the use of land, water and energy. • They must not compete with food crops. • They must produce a positive socioeconomic impact. • They must not require any special equipment to process the fuel, special distri-bution systems or changes to engine designs. • They must not be cultivated in areas that suffered land use changes.
Other Environmental Initiatives Starting in May 2015, in our corporate offices located in Paseo de la Reforma, the oldest air conditioning units will be replaced by newer systems that reduce power consumption up to 35%. Moreover, refrigeration gases currently used will be replaced with new generation gases (HCFs), which produce 80% less pollution as compared to older models.
faucets started in the Hangar Oriente. This will prevent the use of up to 2 million liters of water yearly and, which also translates in savings with regard to water bills, reduction of maintenance costs and discharges into the sewer system. Since 2013, polyethylene bags used to clean aircraft
Also in April 2015, the replacement of urinals and 13
Corporate Social Responsibility Report
PET/plastic, paper, glass, metal and cardboard were recycled.
cabins were replaced for bags made with OXO-biodegradable materials, which are capable of breaking down and integrating into landfills within a 6-year period, unlike the previous bags which need more than 100 years to completely decompose. For this initiative, we adjusted the size of the bags used in the cleaning process, which reduced in 23% the usage of bags and diminished up to 30% the weekly expense to restock our inventory. Previously, the unused bags during the year would cover an approximate area (once extended) of 30 hectares.
Finally, we installed an hydraulic oil container compactor in our Hangar Oriente. This allows a 75% reduction of residues, which are delivered to a company responsible for transporting it an adequate processing area. We also changed the inventory limits for several chemicals that were expiring in our warehouse, which has resulted in savings in our procurement process and reduced the amount and costs of hazardous residues. .
(G4-EN23)
As of July 2014, we initiated the recycling process for non-hazardous residues generated in flights made on airplanes that spend the night in our hangars in Mexico City as well as our and Hangar Oriente offices. Within a period of 6 months, around 31 tons of
Energy Consumption and CO2e Emissions (G4-EN1, G4-EN3, G4-EN15, G4-EN16)
Consumption 2014
Aviation turbine fuel represents 99.9% of our fossil fuel use; therefore, in this report we only consider material the CO2e emissions generated by this concept, as well as those generated by our electrical power consumption.
Source
Turbine Fuel Electricity
Total Consumption
Unit
950,418,034
Liters
13,767,901
kWh
*Emission factors are available in Annex 1.
Emissions 2014 Scope 1 - Direct Emissions Scope 2 - Indirect Emissions Total (Scope 1 + 2)
Total Emissions CO2e (ton)
CO2 (ton)
8,666,994.16
2,392,885.54
1,178.52
23,551.36
6,882.57
6,882.57
0
0
8,673,876.73
2,399,768.12
1,178.52
23,551.36
14
CH4 (ton)
N2O (ton)
Corporate Social Responsibility Report
Fleet Renewal In 2014, more than 124,932 tons of CO2e were prevented from being released into the atmosphere as a result of the following initiatives:
Aeromexico’s main environmental commitment is reflected in its determination to invest to incorporate technological improvements for our aircraft and to renew our fleet with aircraft equipped with technologies that improve their environmental performance.
(G4-EN6, G4-EN19)
• Installation of Scimitar Winglets in 13 B737-800. • Project for fuel reduction upon arrival, which is a joint effort with Boeing (new alternative airport allocation policy for B737). • Rolling during landing using a single engine for B737 airplanes. • Additional fuel reduction to the one required in the flight plan. • Implementation of one a state-of-the-art flight planning system at Grupo Aeromexico (Jetplanner by Jeppesen).
A fundamental part of our growth plan is the announcement made in 2012 of the acquisition of a 100 aircraft which represents an investment of 11 billion dollars, which is the largest private investment made by a company in the history of aviation in Mexico. As of April 30, 2015, this commitment has resulted in the following: • The incorporation of seven 787 Dreamliner aircraft – out of a total of 19 to be incorporated during a 10-year term-, with a 23% reduction in fuel consumption and CO2 emissions, and a 60% reduction in noise. • In 2014, we completed the installation of Split Scimtar Winglets in 13 Boeing 737-800NG. This device will reduce our annual consumption of jet fuel approximately 170,000 liters per aircraft or approximately 1,690 tons of CO2e per aircraft per year. • As of April 2015, 15 out of 19 B737-800 NG aircraft have replaced some B737-700 NG aircraft. The engines of the new aircraft incorporate the best technological improvements available, such as a reduction in fuel consumption of 2% compared to the previous model. This increased efficiency implies a proportional reduction of CO2 emissions and other greenhouse gases. 15
Corporate Social Responsibility Report
Vuela Verde Program In October 2013, Aeromexico launched its “Vuela Verde” (Fly Green) program, which offers our passengers the option to donate $55 pesos each time they purchase a ticket to compensate their CO2 footprint in order to contribute to the sustainable development of the Nuevo Becal community in Campeche and to the conservation and restoration of biodiversity of the Maya Forest.
Aircraft Maintenance, Repair, and Overhaul Center (MRO) - TechOps Mexico
Aeromexico delivers the proceeds collected to Beta Diversity Civil Association, which manages the funds to implement the following social and environmental projects: • Improving the nutrition of the community with the construction of home orchards. • Reducing the amount of firewood used in the community with the installation of wood-saving stoves and biogas digesters. • Building rainwater collection and storage systems. • Reducing pressure on natural resources through awareness and environmental education programs. • Promoting productive projects that generate income for the community in a sustainable manner.
(G4-EC7)
In March 2014, Aeromexico and Delta Air Lines formed a Joint Venture to build TechOps, the new Aircraft Maintenance, Repair, and Overhaul center in Queretaro. The project required a co-investment of $603 million pesos from which 55 were invested by the government of the state of Queretaro. TechOps has created 1,600 direct jobs and 3,200 indirect jobs. Its capacity allows up to nine production lines and incorporates advanced production and sustainable energy systems and processes that respect the environment. These include: • Next generation solar panels that can provide more than 30% of the energy used throughout the facilities. • LED lighting in the main hangar measuring over 24,000 square meters that reduces energy consumption by 47% compared to traditional lighting systems. • Translucent materials in the hangar ceilings, warehouse, and offices that take advantage of natural light and generate savings in power consumption. • A rainwater recovery system that is able to collect, treat, and reuse a little over 25% of the water required to service the facilities and wash the aircraft. • A permanent recycling program for metals such as titanium, aluminum and other materials. .
Since the beginning of the program through December 2014, over 4,150 passengers have contributed to this program.
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Corporate Social Responsibility Report
Preserving Biodiversity (G4-EN13)
Thanks to an invitation received from Shark Rescue and My Ocean Ltd, Aeromexico Cargo officially announced its decision in 2013 to stop carrying shark fins to contribute to marine conservation. Shark finning is famous worldwide for its cruelty and negative impact on the ecosystem. Currently, 56% of shark species in the world are endangered because their fins and teeth are ingredients in Asian cuisine and traditional Chinese medicine. Mexico is currently known as the sixth largest exporter of shark fins worldwide.
to verify whether such animal is classified as endangered. If applicable, the client is required to submit the international shipping certificate or the invoice in case the shipping is national. II. Dispatch: Inside the warehouse, the live animal is located in a specific area for this purpose in order to avoid exposure to any risks and a priority flight is scheduled, while the destination airport is notified. III. Arrival and delivery: Once the live animal is on board, it is kept apart in order to prevent unnecessary risks and awaits to be delivered to the cosignatory.
With this decision, Aeromexico Cargo joins other airlines, such as Cathay Pacific Airways, Korean Airlines, Asiana Airlines, Qantas, Air New Zealand, and Fiji Airways by pledging to ban the transportation of shark fins on our cargo routes. This initiative is an example of our commitment to biodiversity and the environment. Additionally, upon request by the NGO People for the Ethical Treatment of Animals (PETA), starting on October 10, 2014 Aeromexico Cargo prohibited the transportation of all species of primates in all our operations in order to prevent animal cruelty, which these species usually endure when transported to laboratories.
While the animal is in the warehouse, loaded on board and during its transportation, special precautions are taken to ensure the live animal has enough air circulation and is not exposed to hostile conditions (rain, extreme heat or cold).
Transportation Procedure for Live Animals
For the Planet Series
Within their operating procedures, Aeromexico Cargo has established guidelines specifically designed to prevent live animals from facing situations which could endanger their well-being during transport, from the admission of the animal to the arrival and delivery to the cosignatory.
During 2014, Aeromexico participated for one week in the project “Por el Planeta” (For the Planet), a series of reports and documentaries that will broadcast on Televisa newscasts, featuring biodiversity and wildlife on Isla Socorro, Baja California, with the purpose of raising awareness about the environment.
I. Admission: Once the Live Animals (AVI) checkin is completed, a checklist is used in order to ensure compliance with the necessary conditions for transport, in accordance with IATA Live Animals Regulations. Through the Shipper’s Certificate (IATA format), we identify the common name and scientific name of the animal, which is checked in the CITES (Convention on International Trade in Endangered Species) appendices 17
Corporate Social Responsibility Report
Community 2015 Corporate Social Responsibility Strategy (PG-P1, PG-P2)
Environment 50%
During 2014, great progress was made in Corporate Social Responsibility in Aeromexico. During this period, we created and published our Environmental Policy, our Corporate Social Responsibility Policy and our Human Rights Policy with the objective of making Grupo Aeromexico’s corporate values public for our stakeholders. These policies are available in the corporate social responsibility section in Aeromexico’s website.
Migration & Human Trafficking 30%
Other 20%
During this period, we also established the following criteria for selecting projects: • Our projects will be carried out through alliances with first-tier foundations (organizations which directly operate projects on the field), which are specialized in each cause. This was decided in order to achieve the greatest positive impact on the community or the environment with the available corporate resources. • Projects and beneficiaries must be located within Mexico. • The allied foundation is required to submit the results of the project by the end of the year, and it must have at least three years of experience and be duly incorporated.
In order to implement the contents of our policies, the Corporate Social Responsibility department created a strategy that will be used to prioritize and to better channel our efforts and resources, while we work in causes directly linked to our core business and which might have an impact on community due to the nature of our operation. (G4-SO1)
Our efforts will be distributed as follows: • 50% aimed at environmental matters, since this is a priority for the aviation industry worldwide. • 30% aimed at migratory and human trafficking matters, in order to support and comply at all times with Article 13 of the Universal Declaration of Human Rights on freedom of movement. In addition, the actions undertaken under this topic will reassure our commitment with the United Nations Global Compact principles associated with child labor and forced labor.
In order to implement these criteria in the most objective manner, the corporate Social Responsibility Team designed an evaluation matrix which assigns a numerical value to 25 aspects of each project. This allows an objective comparison of projects and the selection of the projects that are more adequate to our corporate social responsibility strategy. This evaluation matrix also allows an impact assessment at the end of the year in order to find out whether the expected impact was achieved within the community or the environment and provide elements to decide if Aeromexico will continue collaborating in the project or if there is another project with a greater positive impact.
(PG-P4, PG-P5)
• The rest was distributed based on a survey conducted in 2014 on our employees, aimed at discovering which causes are of interest to them. The responses showed that our employees agree that the environment is an issue of major importance. The causes that follow, in order of importance, are: education, poverty, health, natural disasters, sports, arts and culture. Therefore, 20% of our resources will be distributed proportionally among this issues.
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Corporate Social Responsibility Report
Support for our Migrant Passengers Aeromexico Contigo On October 1st, 2013, Aeromexico implemented the Aeromexico Contigo (Aeromexico with You) program, designed to provide lower airfares for migrants living in Mexico or the United States who travel frequently between the two countries for different reasons. Other benefits this program offers include increased legroom, dedicated Call Center services and personalized attention at the check-in counters at participating airports, help filling out immigration forms, and the Aeromexico connections network. The Aeromexico Contigo program serves the Guadalajara,Tijuana and Culiacan markets in Mexico, and Chicago, Los Angeles, Fresno, Sacramento, and Ontario in the United States.
FERME Association inspects and certifies that the housing facilities provided for the workers are appropriate and provides relevant information in their own language and support in their employment paperwork. FERME provides the workers with a variety of benefits, such as helping them get to the supermarket or the bank on a weekly basis, and personally accompanying them to the doctor, if necessary, while also arranging tours and recreational activities with workers.
Also during 2013, Aeromexico consolidated its business relationship with FERME, a Canadian Association with over 20 years’ experience organizing and coordinating the temporary recruitment and employment of agricultural workers from Mexico and Central America to work on farms in Quebec. This business relationship has allowed us to carry over 6,000 migrant workers to Montreal, Canada. Even in light of the challenges faced, such as weather or visa requirements and procedures, we carried an additional 10% of workers in 2013, as compared to 2012. One aspect of FERME that is relevant to Aeromexico is the respect and commitment expressed with regard to the temporary workers’ welfare, as FERME guarantees workers the highest level of efficiency and satisfaction possible throughout the process. This nonprofit association makes sure that the workers reach their destination without any problems. It also
With the “Aeromexico Contigo” program and our commercial relationship with FERME, Aeromexico demonstrates its commitment to generating alternatives that benefit Mexicans who, for work or family reasons, must travel frequently between our country and the United States or Canada.
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Corporate Social Responsibility Report
Support to the Victims of Hurricane Odile Due to our continuous commitment to provide support in case of a natural disasters, during September and October 2014 we also supported the victims of Hurricane Odile, which severely damaged the Baja California peninsula. In this incident, we were able to operate 181 flights to Los Cabos and La Paz, thanks to the work and coordination of our coworkers in airports, in Aeromexico Cargo, in our Call Center and in the Flight Planning and Operations department. This is how we were able to have 18,154 available seats which allowed thousands of passengers to return to their homes.
Acapulco Contingency During the contingency caused by the “Ingrid” and “Manuel” tropical storms, Aeromexico demonstrated its social commitment by creating a dedicated air route between Acapulco and Mexico City, with which it was able to carry over 11,000 passengers on more than 100 rescue flights and over 145 tons of supplies the Mexican Red Cross sent to the port of Acapulco.
Additionally, the amount of supplies transported by Aeromexico to La Paz and San Jose del Cabo, two of the most affected areas, added up to 113,291 kg which we transported for several institutions such as SEGOB (Ministry of the Interior), the Distrito Federal Government, various labor unions and a collection organized by Aeromexico Cargo.
The appreciation displayed and received from our passengers during this contingency only motivate us to maintain our social commitment and solidarity in emergency situations.
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Corporate Social Responsibility Report
Activate Initiative and Save the Children We launched the “Activate” program, which promotes physical activity among our employees to improve their health.The program included a challenge for 1,500 Grupo Aeromexico employees to collectively walk the distance equivalent to walking six times around the world; that is to say, a little over 240,000 kilometers. Once this challenge was met, the company would acknowledge our employees’ achievement by donating 50 tickets to the Save the Children Foundation to support the Trust for Unaccompanied Migrant Minors.This initiative had a great response from our employees: the challenge was not only achieved, it was overcome with enough effort to reach the moon walking, 424,263 kilometers.
to assist repatriated children and eradicate the causes of child migration from their home communities by creating educational, community, and personal development alternatives. Supporting this cause is important to Aeromexico, since the child migration issue has grown to considerable proportions. By providing these tickets, Aeromexico seeks to contribute to the protection on this vulnerable group and help keep them safe from human trafficking networks or organized crime groups.
This Trust was formed in 2009 by HSBC, the National System for Integral Family Development (DIF), and Save the Children
Volunteers with Habitat for Humanity and Our Partner Delta Air Lines
In March 2013, Aeromexico volunteers participated with our partner Delta Air Lines and Habitat for Humanity Foundation in building homes in the community of Tianguismanalco in Puebla in an effort to help reduce poverty in this community. The Aeromexico and Delta Air Lines volunteers who participated in this activity demonstrated a strong commitment to the project and performed various construction activities, such as digging septic tanks, laying bricks, flattening floors, and installing roofs, among others. Supporting the Habitat for Humanity cause and the work it has done in Mexico over the last 26 years, benefiting thousands of people by building more than 19,500 homes in communities in 17 states, means not only participating in a project that provides decent housing for Mexican families, but also encouraging our employees to get involved in social actions that generate a great deal of satisfaction and motivation, and that promote leadership and teamwork, as well as interaction and communication between the company’s different departments.
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Corporate Social Responsibility Report
Reforestation During September 2014, 190 employees of Grupo Aeromexico had the opportunity to help in the reforestation of the Nevado de Toluca along with friends and family. As a part of the corporate social responsibility program, this event is Aeromexico’s first official volunteer program, which also created the opportunity for our employees to contribute to society and the environment. It is programmed to be repeated once a year. The reforestation were coordinated in alliance with Reforestamos Mexico, a civil association focused on the conservation of Mexican forests. During this task, 1500 trees were planted which correspond to 1.5 hectares of forest. This was achieved with the help and supervision of the association’s guides as well as the local guides of the Cerro Gordo community, who are the people responsible for ensuring the trees planted grow and are preserved. Thanks to the great response of Aeromexico’s employees during this event, we have contributed to the conservation of the environment while having a day of fun, integration, learning and environmental awareness with our coworkers and their families.
Transportation of Donated Organs SEDESA Undersecretary, Roman Rosales Aviles, welcomed the initiative noting that close to 418 kidney, 51 liver, 24 heart, and 924 corneal transplants were performed by public health, social security, and private hospitals in Mexico City between January and September 2013
The Ministry of Health of the Government of Mexico city (SEDESA) and Aeromexico signed an agreement in October 2013, whereby Aeromexico will carry organs free of charge and tissues that are donated in Mexico City to other states in Mexico. This agreement will help to provide medical care for hundreds of patients with chronic degenerative diseases that are waiting for an organ by expediting the transplantation process.
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Corporate Social Responsibility Report
We care about the health of our passengers - Deep Vein Thrombosis Deep Vein Thrombosis (DVT) is the formation of a blood clot in a deep vein, predominantly in the legs, caused by prolonged periods of immobility, particularly in passengers with additional preexisting risk factors. Some of these factors include prolonged physical immobility, medical conditions, or medical treatments that affect blood flow or normal clotting mechanisms.
Neck
Arms
Shoulders
Abdomen
Hands
Legs
Aeromexico believes it is important to advise our passengers about this condition, so we included a section in our in-flight “Aire” magazine that describes a set of exercises passengers can do to prevent and recognize Deep Vein Thrombosis during the flight. We recommend that our passengers immediately inform a crew member if they experience any of these symptoms.
Feet
Share Premier Kilometers
Aeromexico Friendly
In late 2013, Aeromexico’s loyalty program, Club Premier, launched its Share Premier Kilometers program, which gives our members the opportunity to donate their Premier Kilometers directly to one of the following foundations of their choice: Cim*ab, Ministerios de Amor, Milagros Caninos, Equinoterapia, Save the Children, and the ABC Foundation.
Aeromexico is committed to diversity, for this reason we launched the “Aeromexico Friendly” program, which offers all inclusive vacation packages to our customers in the LGBTTTI community to a variety of domestic and international destinations. This information is available in our website and social media.
Since the program started, more than 3,200,000 Premier Kilometers have been donated by our Club Premier members.
Teleton Since 2011, we support Teleton through a corporate donation and by organizing an annual event in our Hangar Oriente, which offers the children an opportunity to play and to get on one of our planes.
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Corporate Social Responsibility Report
The Signature of a National Agreement with INAPAM On January 23, 2015, we announced the official agreement with the National Institute for Senior Citizens (INAPAM for its initials in Spanish). This is the first official commercial agreement signed between an airline and this entity, with an indefinite duration. The agreement will enable the people affiliated to the institute to get a 15% discount when traveling to one of our more than 80 national and international destinations. In this manner, we are responding to our passengers’ expectations and offering a differentiated, more inclusive service which takes into account the needs of our community.
Social Investment Through the aforementioned activities, Aeromexico currently invests more than $7,600,000 mxn (estimated economic value of cash and in-kind contributions) in community-related initiatives. (G4-EC1)
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Corporate Social Responsibility Report
Our Employees (G4-9)
Job Creation
Grupo Aeromexico employs over 13,200 people, of which more than 7,000 work for our subsidiaries and 6,159 work for Aeromexico.
(G4-LA1)
One of the most positive effects that Aeromexico has had on the community is the creation of work positions.We are committed to having the best team of flight attendants in the industry, with the objective of reinforcing our operations in order to comply with the growth and connectivity plan of our fleet for the following years.
Quality of Life (G4-DMA-LA)
The wellbeing of employees is a priority for Aeromexico.Therefore, as of 2014, a program is being designed to improve Grupo Aeromexico’s culture and promote a balance between the wellbeing of our people and the achievement of results.
In light of this, at the beginning of 2015, three massive events for recruiting flight attendants were conducted in Mexico City, Guadalajara and Monterrey. We had a total of 2600 candidates, 350 of whom were selected. They will be incorporated to the company during the first months of 2015. The procedure was conducted in an objective, equitable manner with regard to all participants, following the criteria set forth in our Non-Discrimination Policy.
Our objective is to promote the wellbeing of our people and their quality of life, by caring for their physical and emotional health in a comprehensive manner, as well as offering opportunities for personal and professional development. At the same time, we achieve corporate results by promoting an objectiveoriented culture among employees. We want to encourage a culture in which employees give their best and perform their jobs according to the highest standards of excellence .
In order to attract more talent, the Human Resources department has implemented various actions in order to ensure equal opportunities for everyone during the recruiting and selection procedures. Our application forms do not contain fields relative to gender, relationship status or age. Also, the medical examination required for administrative personnel was eliminated and several trainings have been carried out aimed at creating awareness among the heads of department promoting the importance of having a non-discriminatory selection and hiring procedure.
In order to achieve this, we are designing development programs, communication campaigns that promote this lifestyle, performance evaluations, talent mapping and other activities aimed at generating constant growth among employees. We are also working in a Gender Balance program which contributes to supporting working moms through agreements with daycare centers, the establishment of breastfeeding rooms, etc.
(PG-P6)
(PG-P6)
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Corporate Social Responsibility Report
Our Team in Figures (G4-10, G4-LA12)
Amount of employees per type of contract, age range and gender in Aeromexico 2014 1200 1100 1000 900 800 700 600 500 400 300 200 100 20 to 29 years
30 to 39 years
40 to 49 years
50 to 59 years
Female Employees
Male Employees
Female Outsourced
Male Outsourced
Older than 60 years
Number of international employees: Number of International Employees
Argentina
11
France
Brazil
50
Guatemala
7
Canada
2
Honduras
4
Chile
4
England
4
China
4
Japan
9
Colombia
9
Nicaragua
1
Costa Rica
6
Peru
Ecuador
4
United States
El Salvador
5
Venezuela
Spain
11
23 114 6
16
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Corporate Social Responsibility Report
Labor Unions
Distribution of employees in Mexico:
(G4-11, G4-LA4, G4-HR4) (PG-P3)
Throughout 2014,due to the growth of our operations and fleet, 73% of our employees are represented by one of three different unions, including the Airline Pilots Association (ASPA), the Independence Union (SI), and the Flight Attendants Association (ASSA). Aeromexico is the only airline in Mexico with labor unions. Only 27% of our employees do not belong to one of the aforementioned labor unions.
Distribution of employees in Mexico Acapulco
0.32 %
Veracruz
0.16 %
Aguascalientes
0.37 %
Culiacan
0.60 %
Bajio
0.52 %
Mexicali
0.28 %
Cancun
1.53 %
Villahermosa
0.39 %
Chihuahua
0.41 %
Tuxtla Gutierrez
0.28 %
Ciudad Juarez
0.45 %
Tapachula
0.06 %
Ciudad Obregon
0.13 %
San Jose del Cabo
0.15 %
Colima
0.10 %
Saltillo
0.03 %
Nuevo Laredo
0.03 %
Distrito Federal
84.45 %
Durango
0.13 %
Oaxaca
0.06 %
Guadalajara
2.84 %
Puerto Vallarta
0.41 %
Hermosillo
0.97 %
Ciudad del Carmen 0.06 %
La Paz
0.02 %
Huatulco
0.05 %
Los Mochis
0.13 %
Queretaro
0.06 %
Merida
0.39 %
Mazatlan
0.02 %
Monterrey
2.24 %
San Luis Potosi
0.03 %
Morelia
0.21 %
Tampico
0.03 %
Puebla
0.02 %
Zacatecas
0.08 %
Reynosa
0.21 %
Manzanillo
0.03 %
Tijuana
1.33 %
Toluca
0.06 %
Torreon
0.34 %
We have collective bargaining agreements with each one of these unions for an indefinite term, which include an annual salary review, and a biannual review of the terms and conditions, in addition to those established by the labor law. Aeromexico has pension plans for pilots and retirement plans for flight attendants and ground staff. These plans adhere to the terms set forth in the Collective Bargaining Agreement signed with the unionized staff. The latest review of the collective contract executed with ASPA (Airline Pilots Association) was carried out on September 30, 2014, while the latest review of the collective contract executed with the Independencia Union was on October 13, 2014. With regard to both unions, the following contract reviews will take place in 2018. This agreement has become part of Grupo Aeromexico’s efforts to improve work stability and establish good relationships with the labor unions.
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Corporate Social Responsibility Report
Benefits and Compensation (G4-EC5, G4-LA2)
The social benefits Aeromexico offers its employees, go beyond the statutory requirements, and although they differ based on each employee’s individual job description, these can include: savings ac¬counts, air passes and discounts, a savings fund, major medical insurance, life insurance, optional dental, optional auto insurance, loans to buy a car, promotions and discounts, sporting events and health campaigns. Unionized employees enjoy these benefits according to the terms set forth in the Collective Bargaining Agreements and/or the contracts signed with each corresponding union. At Aeromexico, the average ratio between the standard entry level salary and the national minimum wage was 21.1 during 2014, regardless of the employee’s gender or position. In Aeromexico, the ratio between standard entry-level wage and minimum wage was 21.1 on average during 2014, regardless of the employee’s gender or position. The proportional salary according to gender in Aeromexico is as follows: (G4-LA13)
Proportional Salary per Gender Male
Female
Senior Vicepresident
1
1
Vicepresident
1
1
Director
1.07
0.93
Non-Executives
0.99
1.01
Pilots
1
1
Flight Attendants
1
1
Health and Safety Committees (G4-LA5)
Our Safety and Hygiene Committees hold meetings on a monthly basis. During 2014, we implemented two Health Week in order to provide assistance and preventive medical checkups for employees. More than 1013 people participated in the two projects last year. More than 560 laboratory tests were conducted to detect triglycerides and cholesterol levels, prostatic specific antigen and uric acid, as well as 275 mammographies and 178 Papanicolau tests. Also, the following activities were conducted: preventive programs on human papilloma virus awareness; application of 1500 influenza vaccines, 361 tetanus vaccines, and 302 pneumococcal vaccines; 10 acid-fast bacilli smears; an hydration campaign where 1730 electrolytes doses were distributed; preventive checkups for high blood pressure, obesity, diabetes, as well as periodical checkups for Grupo Aeromexico staff, regardless of whether or not they belong to a union labor.
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Corporate Social Responsibility Report
Our Employees’ Health : (G4-LA6)
Number of employees (by gender) entitled to maternity or paternity leave during 2014: Number of Employees Maternity
Leave 2014
66
Paternity
52
Occupational diseases of workers and independent contractor staff working at Aeromexico facilities, by region and gender, during 2014: Accident in transit
General Disease
Work Risks
Postnatal
Prenatal
Center
343
4996
359
1054
1638
Female
156
2355
181
1054
1638
Male
187
2641
178
0
0
North
104
1310
240
535
714
Female
535
714
104
796
158
Male
0
514
82
0
0
Pacific
12
561
54
78
168
Male
78
168
12
233
54
Female
0
328
0
0
0
South
68
537
3
116
84
Female
60
346
3
0
84
Male Grand Total
8
191
0
0
0
527
7404
656
1783
2604
Working days lost and absenteeism of workers and independent contractor staff working in Aeromexico facilities, by region and gender, during 2014 Leave of absence Suspension without pay
Absenteeism
Work commissions
Course
Paid leave of absence
Center
721
3710
7891
7822
755
118
Female
372
457
703
558
445
48
8816
Male
349
3253
7188
7264
310
70
18284
North
329
1801
3843
185
866
62
6169
Female
155
203
1210
55
863
33
3074
Male
174
1598
2633
130
3
29
3095
Pacific
76
357
1668
137
284
14
4305
Female
43
97
728
42
128
1
2030
Male
33
260
940
95
156
13
2275
South
49
1028
1616
71
105
4
2111
Female
19
112
429
24
68
1
815
Male Grand total
Vacation
27100
30
916
1187
47
37
3
1296
1175
6896
15018
8215
2010
198
39685
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Corporate Social Responsibility Report
Communication Services
• Embraer 145: 4,349 hours, with 99.8% reliability. • Embraer 190: 4,376 hours, with 99.6% reliability. • Boeing 737NG: 5,064 hours, with 97.3% reliability.
(G4-LA4)
In order to keep our team informed, we have an Internal Communication department responsible for publishing all information relevant to all our employees. This is done through different media, such as the internal mail system we use to send circulars, notices and releases on an ongoing basis; our internal portal, the Grupo Aeromexico website that contains our annual, quarterly and operational reports, and our communication boards installed in the hallways and common areas in our buildings. All these media serve to make sure our team members are kept informed about the company’s most important events.
On the other hand, throughout this year, on-line training for flight attendants has been implemented and can be accessed through iPads. This training encompasses topics such as air regulations, procedures, hazardous merchandise, flight equipment, emergency procedures, civil aviation security, medical knowledge, human factor and on board services. Concerning practical training (which is taught at the Training Center), a 7.3% improvement was achieved in the diagnostic evaluation with regard to the results obtained in 2014. In addition, one day of in-person training was removed, which translates into 2,335 days of available flight attendants in both companies of the Group.
We also use our internal communication systems to post job opportunities, and this has become the tool we use for internal recruitment purposes. Employees with more than one year in Aeromexico can use this process to apply to any given position. Aeromexico also uses different external recruitment sources, such as the Internet, the airline’s website, newsletters, trade boards, universities, schools and contacts with other companies.
Through Aeromexico Capacitacion, we continue developing the best work team in the industry. Additionally, this year we have set the goal of providing courses for our flight attendants and desk personnel, which will be attended on a voluntary basis. These courses will address topics associated with human rights, particularly with child labor and forced labor, and will be taught by personnel from an allied foundation and personnel from the National Human Rights Commission .
Training (G4-LA9)
Keeping our personnel updated allows Aeromexico to be a more proficient company. This is why constant training and education on new equipment and procedures has become a cornerstone for our operation.
(G4-HR2, G4-HR5, G4-HR6) (PG-P4, PG-P5)
In light of this, during 2014 Aeromexico Capacitacion taught a total of 7,468 courses to 56,380 Grupo Aeromexico employees. This figure includes individuals who received more than one course during the year. This represents a 2.15% increase in the number of attendants as compared to 2013. Likewise, important benefits were obtained thanks to the use of flight simulators in Mexico City, which make it unnecessary to transport the crew abroad and thus prevent us from incurring in expenses or CO2 emissions arising from such transport. The degree of use of the simulators was as follows: 30
Corporate Social Responsibility Report
The principles that Aeromexico is promoting relate to the ethical principles that both companies and their professionals must implement in order to promote the highest degree of respect in work relationships and to create productive work teams, all within healthy environments which foster respect and encourage an adequate response to the demands of our stakeholders. We believe that all matters associated with ethics constitute a basic business practice: trust created among clients, employees and suppliers is the key for success.
Performance Evaluation
In light of this, we updated our Corporate Code of Conduct and communicated it to all our stakeholders. This document contains the values we expect from all employees regardless of their position or activities. Our Code of Conduct includes topics such as honesty, free competition and intellectual property, conflict of interest and the relationship with third parties, the relationship with clients, psychoactive substances and alcohol use, safety and environment, privileged information, teamwork and respect.
At Aeromexico we believe that a key factor contributing to the organization’s success is the active participation of all employees. Therefore, continuous efforts are made to maintain an organization that rewards skilled, committed and competitive employees, and offers them the opportunity for growth and development. We place special emphasis on the honesty, commitment, respect and efficiency of our staff members. As a result, we believe that having an enthusiastic, timely and informed team builds trust and loyalty among clients, and this distinguishes Aeromexico from the competition.
Our Corporate Code of Conduct is supplemented by other documents such as our Human Rights Policy, our Environmental Policy and our Anticorruption Policy, so that our employees are aware of the ethical behavior principles we expect to observe in their daily activities.
In order to create a high-performance culture, an evaluation was conducted in 2014 linked to the achievement of functional goals. This evaluation considered the administrative staff, from Senior Vice-presidents to Managers, and certain key business departments, such as Sales and Income Strategy.
In order to properly implement our Code of Conduct, we carried out several initiatives aimed at promoting the aforementioned ethical values and we created a robust detection and sanctioning system for non-ethical behaviors.
Ethical Behavior (G4-56) (PG-P1, PG-P2)
One of the company’s main goals was to consolidate an institutional procedure based on ethical and human principles to help Aeromexico reinforce our corporate values and encourage employees to follow them, this required a tool to strengthen the organization and with enough scope to achieve that these values become part of our employees’ essence, from vice presidents to union staff. It is very important for Aeromexico to disseminate these values throughout the company, in spite of the challenges faced, such as the size of the Group.
In light of the above, we reinforced our anonymous reporting system and broadened the range of topics analyzed through this channel. To this end, we have received full support from our Senior Management and are about to undertake an important communication campaign which will reach all our employees, clients and suppliers. In this manner, we have managed to consolidate our Comprehensive Reporting System, which includes several steps to guarantee its success: 31
Corporate Social Responsibility Report
• Having a written document of our ethical behavior standards (Code of Conduct). • Providing employees with the channel to report violations to ethical standards in a safe manner. • Establishing an implementing and sanctioning body (Ethics Committee) • Training employees on ethical behavior at work • Creating a central channel for ethical matters and providing it with the appropriate and safe means where employees, clients and suppliers can submit reports (toll-free number, e-mail and website). • Defining the disciplinary actions to be applied to employees who violate the Code of Conduct.
related to the following matters: (G4-LA16, G4-HR3, G4-PR8) (PG-P2)
Reports 2014
In order to ensure compliance with these elements, the Comprehensive Reporting System includes three key aspects which serve as the basis for its operation and which work jointly to maintain ethical behavior in Aeromexico: I. Creation and operation of an Ethics Committee. II. Reinforcement of the Code of Conduct. III. Implementation of anonymous reporting system to protect the identity of the reporting person.
Discrimination
34
Other Human Rights
63
Protection of Data
0
Corruption
4
From these reports, only four are still in the process of being solved in 2015.
Reports are received by an external supplier through the different channels available. This supplier is completely autonomous with regard to reported affairs. Once classified, the reports are sent to key personnel in Aeromexico’s Internal Audit department in order to give each one of them proper handling and follow-up. Reports associated with ethical behavior are reviewed and brought to the attention of the Ethics Committee for analysis and resolution purposes. In this manner, the Comprehensive Reporting System has a very robust structure and clearly transmits the company’s expectations to our to employees, placing a special emphasis on the benefits brought by a work environment based on integrity and the respect to regulations. During 2014, the following reports were received
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Corporate Social Responsibility Report
Our Clients Quality and Safety
Protection of Personal Data
In March 2015, for the sixth time in a row, Aeromexico successfully concluded the IOSA (IATA Operational Safety Audit) re-certifying audit, which is conducted by IATA (International Air transport Association).The renewal of this certificate will be valid until June 2017.
During the second semester of 2014, we worked in all the companies of the Group in charge of handling the personal data of employees, clients and suppliers in order to identify gaps and protection risks, and to reinforce the design of legal and safety measures and supplementary guidelines, in full compliance with the provisions set forth in the Federal Act for the Protection of Personal Data in Possession of Private Entities and its Regulations.
(G4-PR1)
(G4-PR8)
Aeromexico was first awarded the IOSA Certificate in 2005, which means that the procedures and policies according to which it operates meet the highest standards promoted by IATA in terms of operational security and service quality, both at national and international level.
Likewise, we reinforced the structure of privacy in Grupo Aeromexico’s companies that receive requests associated with Access, Rectification, Cancellation and Opposition (ARCO) rights.
The Security department was audited on February 25 and 26, 2015. No unusual findings or observations were made.
We continuously strive to improve our procedures in order to continue developing the trust of those who provide their personal data to Aeromexico.
Our leading position in the national airline industry, which is the result of our clients’ preference, has led us to stand out as a company committed to safety in all of our operations.
Customer Experience (G4-27, G4-PR5)
In Aeromexico, it is very important for us to listen to our customers’ opinions. As a result, a research program on customer experience was implemented in January 2012. The research is conducted through surveys sent to our passengers. Currently, our survey considers the following aspects: Product: • Seat comfort • Entertainment • Airplane in general • Cleanliness in: • Cabin • Restrooms • Food
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Corporate Social Responsibility Report
Procedures: • Purchase • Check-in • Luggage check-in • Boarding • Timeliness • Exit from the plane • Connecting flights • Luggage delivery
The new program allows us to: • Provide our employees with tools which allow them to interact with customers in the most appropriate manner. • Identify areas of opportunity by making them measurable and subject to improvement. • Promote teamwork and reinforce the manager-employee relationship, since some of the main aspects of the program are based on feedback. • Reinforce the relationship with our customers, since the program is designed so that the person in charge of each department provides direct assistance to unsatisfied customers. • Acknowledge the work of collaborators who are in direct contact with customers.
Services: • Information at waiting lounge • Warm assistance by our personnel • At Check-in desk • At Waiting lounge • Flight attendants • Messages from pilots
In the Customer Experience Research department, data is collected from different sources of information including the Operations department, thus permitting us to obtain specific information with regard to each case. Thanks to these actions, the following information was identified:
Since 2012 and up to the end of March 2015, we have received over one million completed surveys, which represent an average response rate of 16%, which in turn indicates that customers want to give us active feedback.
• • • •
The loyalty and satisfaction level measurement program is aimed at evaluating the satisfaction level on board and the handling of irregular operations as key aspects of our customers’ travel experience.
•
In February 2015, the program grew by incorporating all contact points associated with our customers’ travel experience; this was done in order to have a broader view of the service provided to our passengers.
• • •
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Airports that provide the best customer service. Service level per employee. Features and actions that create customer loyalty. Importance of the communication with the customer in points of contact. Areas of opportunity regarding the design of food offered on board. Satisfaction levels per type of airplane. Service level per departure lounge of Aeromexico’s main hub. Product awareness and satisfaction.
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Procedure for Complaint Receipt, Evaluation and Resolution (G4-27, G4-SO11) (PG-P2)
In case one of our customers has an unsatisfactory experience with any of our products or services, Aeromexico has created different communication channels available to our passengers so that they can submit comments concerning our service. These channels include direct phone lines, e-mail, sales representatives and social networks. All complaints are automatically received by a Complaint Administration and Management System operated by the Customer Service department and automatically sends the customer an acknowledgment of receipt and a complaint number.
Throughout 2014, we received the following cases (classified per communication channel):
Cases 2014 Phone
42,926
Sales
7,759
E-mail
6,064
Social Media
4,018
Total
The system also distributes complaints among designated Aeromexico executives, according to the market, channel, complaint type and complexity. Within the system, all complaints are classified according to their type, and they are supported with documentary evidence in order to allow a full evaluation of the incident. In case a designated executive requires support from other Aeromexico departments or from customers themselves, the system makes it possible to interact with them through e-mails or telephone calls which are recorded in the report history. Finally, in accordance with Aeromexico’s internal policy, it is determined whether any type of compensation is applicable, and the customer is informed of the resolution of the complaint by means of an authorized response format.
60,767
All these cases were duly addressed and resolved during 2014. The time frame established per case is from 5 to 10 business days, except for cases where we rely on external national and international financial institutions. In such cases, the procedure is extended depending on such external entities. (G4-HR3, G4-HR8, G4-HR12)
Making and analysis of cases received during 2014, we identified 87 cases in which the customers’ complaints were discrimination-related matters. However, once the corresponding inquiry was conducted within Aeromexico’s, we found out that in all the cases, the passengers were not able to board the plane due to immigration proceedings, incomplete documents, aircraft changes or overbooking. We did not receive any other case associated with other human rights or indigenous persons rights.
Once the response is sent to the customer, the reports are closed and filed in the case history of the system. After a year, this information is downloaded and filed in the company’s electronic backup.
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Special Services It is essential for Aeromexico to offer our passengers the best travel experience by taking into account all of their needs, including special needs. In light of this, throughout 2014, the Customer Service department offered the following special services:
Special Services 2014 Organ Transportation Oxygen Concentrators and Tanks Incubators Medical Considerations Stretchers
70 742 2 6379 46
It is worth mentioning that thanks to the suggestions made by our customers, we are currently reviewing our procedures related to the authorization of special services, thus reassuring our commitment to meet and exceed customer expectations.
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Corporate Social Responsibility Report
Our Suppliers Our supply chain is integrated in the following manner: (G4-12, G4-EC9) (PG-P1)
Supply Chain National
Turbine Fuel
International
1
21
120
0
General Procurement 274
26
Services
*We classify our suppliers according to two categories: national and international. The reason is that, due to the nature of our operations, it is difficult to determine whether a supplier is local or not.
Aeromexico is committed to conducting honest and fair negotiations with our suppliers, grounded on the basis of quality service and capacity, with respect for the requirements related to occupational health and safety of their workers. Therefore, we look for suppliers that have an ethical conduct that avoids the use of forced labour, corporal punishment and mental or physical coercion. For this, we have guidelines regarding Conflicts of Interest and Supplier Relations. Our purchase procedure consists in the following: I. We make an open invitation for a procurement process to at least three suppliers, we include our commercial requirements (including ethical conditions contained in our policies), as well as the product specifications. II. Sporadically, visits are paid to the production plants in order to verify their production quality and procedures, as well as compliance with the ethical standards contained in the Conflict of Interest and Relationship with Suppliers Policy. III. We are currently developing a Supplier Certification Procedure, which will include information on production procedures linked to environmental care.
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Annex 1:
The factors used to calculate our emissions are: Emission Factors
CO2
Electricity: Kg CO2 per KWh
CH4
N2O
0.4999
Fuente SEMARNAT - GEI México
Aviation turbine fuel: Kg CO2 per Liter
2.517719
0.00124
0.02478
DEFRA 2014
Gasoline: Kg CO2 per Liter
2.291667
0.003029
0.005207
DEFRA 2014
Diesel: Kg CO2 per Liter
2.647978
0.000683
0.020482
DEFRA 2014
1
28
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Global Warming Potential (GWP)
AR5 IPCC Fourth Assessment Report, 2013
Annex 2: GRI Table
GENERAL STANDARD DISCLOSURES
G4-26
Core Option
Core Option
Standard Disclosure
G4-27
Core Option
Core Option
G4-28
Core Option
Core Option
G4-29
Core Option
Core Option
G4-30
Core Option
Core Option
G4-31
Core Option
Core Option
G4-32
Core Option
Core Option
G4-33
Core Option
Core Option
Core Option
Core Option
"Materiality (G4-19, G4-20)"
"Material outside the organization (G4-21)"
REPORT PROFILE
STRATEGY AND ANALYSIS G4-1
Core Option
Core Option
ORGANIZATIONAL PROFILE G4-3
Core Option
Core Option
G4-4
Core Option
Core Option
G4-5
Core Option
Core Option
G4-6
Core Option
Core Option
G4-7
Core Option
Core Option
G4-8
Core Option
Core Option
G4-9
Core Option
Core Option
G4-10
Core Option
Core Option
G4-11
Core Option
Core Option
G4-12
Core Option
Core Option
G4-13
Core Option
Core Option
CATEGORY: ECONOMIC
G4-14
Core Option
Core Option
ASPECT: ECONOMIC PERFORMANCE
G4-15
Core Option
Core Option
G4-DMA
G4-16
Core Option
Core Option
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G4-EC1
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GOVERNANCE G4-34
ETHICS AND INTEGRITY G4-56
Core Option
Core Option
G4-18
Core Option
Core Option
G4-19
Core Option
Core Option
G4-20
Core Option
Core Option
G4-21
Core Option
Core Option
G4-22
Core Option
Core Option
G4-23
Core Option
Core Option
Core Option
SPECIFIC STANDARD DISCLOSURES Standard Disclosure
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES G4-17
Core Option "Materiality (G4-19, G4-20)"
"Material outside the organization (G4-21)"
STAKEHOLDER ENGAGEMENT G4-24
Core Option
Core Option
G4-25
Core Option
Core Option
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Corporate Social Responsibility Report
ASPECT: MARKET PRESENCE
ASPECT: BIODIVERSITY
G4-EC5
G4-EN13
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ASPECT: EMISSIONS
ASPECT: INDIRECT ECONOMIC IMPACTS G4-EC7
G4-EN15
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G4-EN16
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G4-EN19
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ASPECT: PROCUREMENT PRACTICES G4-EC9
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CATEGORY: ENVIRONMENTAL ASPECT: MATERIALS G4-DMA
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G4-EN1
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ASPECT: EFFLUENTS AND WASTE G4-EN23
G4-EN6
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ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT G4-EN32
ASPECT: ENERGY G4-EN3
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CATEGORY: SOCIAL SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK ASPECT: EMPLOYMENT
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G4-DMA
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G4-LA1
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G4-LA2
G4-LA3
ASPECT: EQUAL REMUNERATION FOR WOMEN AND MEN
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G4-LA13
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ASPECT: LABOR PRACTICES GRIEVANCE MECHANISMS G4-LA16
ASPECT: LABOR/MANAGEMENT RELATIONS G4-LA4
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ASPECT: INVESTMENT G4-HR2
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G4-LA6
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G4-LA8
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G4-HR3
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FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING G4-HR4
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ASPECT: CHILD LABOR
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G4-HR5
ASPECT: DIVERSITY AND EQUAL OPPORTUNITY G4-LA12
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ASPECT: NON-DISCRIMINATION
ASPECT:TRAINING AND EDUCATION G4-LA11
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SUB-CATEGORY: HUMAN RIGHTS
ASPECT: OCCUPATIONAL HEALTH AND SAFETY G4-LA5
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ASPECT: FORCED OR COMPULSORY LABOR G4-HR6
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ASPECT: INDIGENOUS RIGHTS
ASPECT: PRODUCT AND SERVICE LABELING
G4-HR8
G4-PR5
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ASPECT: HUMAN RIGHTS GRIEVANCE MECHANISMS
ASPECT: CUSTOMER PRIVACY
G4-HR12
G4-PR8
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SUB-CATEGORY: SOCIETY ASPECT: LOCAL COMMUNITIES G4-SO1
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ASPECT: ANTI-CORRUPTION G4-SO4
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ASPECT: GRIEVANCE MECHANISMS FOR IMPACTS ON SOCIETY G4-SO11
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SUB-CATEGORY: PRODUCT RESPONSIBILITY ASPECT: CUSTOMER HEALTH AND SAFETY G4-PR1
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