SAUDI ARABIAN AIRLINES

Director General's Office

From The Director General

To All Cabin Crewmembers

Ref.# 10010130/ 6 9 e '2. /33

Date f4 -07-1433H /0'1- 06-2012G

Subject Revision of cabin CreN Remuneration Package

I am pleased to inform you that His Highness the President of Civil Aviation and the Chalrman of SaudiArabian Airlines Board of Director has kindly approved the requested amendments to the presentCabin Crew Remuneration Package which will be implementedeffectite 0l/06/2012G.

The new amendments are based on a comprehensive study presented by Saudi Arabian Airlines on theoutcome of the implemented phase (1) of ProductMty Improvement Program which revealed a majorimprovement in crew productivity and an enhancement in Operational Reliability. Also to excel theProductivity Program to phase (2) and to meet the following operatbnal objectives:

1. Increase Productivity levels to meet the achieved levels by major airlines in the industry.2. Enforce the newly developed culture driven by Productivity and connect gained incentlves

with Productivity and exerted efforts.3. Enable Saudi Arabian Airlines to meet its national obligations to increase its market share in the

domestic and the intemational sectors to coindde with market demands.

Based on the above and to meet the above stated objectives, follOwing are the newly amended andadded Incentives as listed below:

A- Productivity Allowance:

The present Productivity calculation formula is amended to a new formula based on progressiveincome driven by workload exerted as given in the following table:

Block Hours Range Compensation Rate Compensation Rate Increase(Present) (New) Percentage

0-50 . Nil (0)Above 50-65 SR70 SR75 7%

66-80 SR70 SR90 291'~Above 80 SR70 SRllO 57%

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Director General's Office

Example: A cabin Qew member flew 82 Block hours. He will be compensated as follows:

.:. Hours from above 5().6S (15 Hours) will be at the rate of SR75 per hour, amounting to SR1,125 .

•:. Hours from 66-80 (15 Hours) will be at the rate ofSR 90 per hour, amounting to SR1,350 .•:. Hours from Above 80 (2 Hours) will be at the rate of SR 110 per hour, amounting toSR

220.

Total Productivity compensation will be SR2,695.

B- Monthly FMng Bonus:

On the aspect of raising the levels of actual monthly flying hours J a new "Monthly Flying Bonus" isestablished which is based on the attainment of the targeted hours listed in the followingtable:

Targeted Block Hours Monthly Compensation Month~ Compensation( Present) (New)

65-75 0 3.5% of Basic Pay ( Min SR150)76-85 0 6% of Basic Pay ( Min SR250)Above 85 0 SOlo of Basic Pay ( Min SR350)

Example: A cabin Qew member few 82 Block hours with a current Monthly Base Pay of SR 6,800 hewill be compensated as follows:

.:. Since he has flown 82 Block Hours, he will be compensated with 6% of his Monthly BasePay which is equivalentto SR408.

c- Fly In Days off Incentive

This incentive is established to compensate the Qew members called to cover flights in their day(s}-offasgiven on the following table:

Position Hourly Rate per Block Hour HOUrly Rate per Block Hour Minimum(Present) (New) Compensation

All cabin Qew 0 SR60 SR150

Example # 1: A cabin Qew member is called to cover a JED-MED-JED with a total of1:30hours offl{jngtime, as per the calculation formula given above. He should get SR90 but since this amount is less thanthe Minimum} he will be compensated with SR150.

Example # 2: A cabin Qew member is called to cover a round trip flightJED-KHI-JED with a total of 08:05hours flying time wi" get as per the calculation formula SR505.

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SAUDI ARABIAN AIRLINES

Director General's Office

D-Continuation of some previously approved Benefits and Remuneration.

In regards to the previously approved Benefits and Remuneration not amended or changed willcontinue to be in effect (remain unchanged) as mentioned below:

Seq# Item Method of Calculation1 Deadhead Half Hour Credit for every deadhead hour.2 Overtime First 20hours above MGT will be Ihourfor 1 hour.

More than 20 hours above MGT will be 1.5 hour for Ihour3 Promotion Increase 5% for any promotion from Steward or Hostess position to a

Purser. Ukewisewhen promoted from Purser to Supervisorposition.

4 Annual Service Increase k,govemed by the present Salary Scale AnnualService Increase percentage

5 MGT JEDBase = 70 Hours Credit.CMN, KHI, DELand MUM Bases = 72 Hours Credit.

MNL and JKTBases = 76 Hours Credit6 Standby 1.5 Credit Hours for every 12 hours of Standby7 Annual Productivity One Month BasicSalary will be awarded as an Annual Bonus for

Bonus those crew who accumulate 650 Block Hours in a Gregorian year(JAN-DEC)

8 Training A pro Rata will be credited corresponding to the allocated baseMinimum Guarantee .

.Based on these amendments in the remuneration package, I hope that all your efforts will be gatheredtowards reaching the required level of excellence in improving all services rendered toour passengers aswell as enhandng Discipline and Productivity to enable the airline to meet the increased demandsduring peak periods of Summer, Urnrah, Holy Ramadan and Eid, meet the challenges of competitionwith other regional and international airlines and accommodate the escalating demand for travel ondomestic sectors by enhandng Saudia's fleet and your appreciated efforts to maximize the utilizationthereof.

KhalidA.Almolhem

cc:•••••

~ty Director General

CFOVPIn-flightSvcs.Gen.5ecretary-BoardofDirectors

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