1. HANDLING CRITICAL EMPLOYMENT LAW ISSUES DURING AIRLINE RESTRUCTURING Aisha Abdallah Partner - LitigationAnjarwalla & Khanna, Advocates 18 June 2013 BOTSWANA | BURUNDI | ETHIOPIA | KENYA| MALAWI | MAURITIUS | MOZAMBIQUE | RWANDA | SUDAN | TANZANIA | UGANDA| ZAMBIA

2. Airline Restructuring – the global picture Global economic problems have created imperatives for business restructuring. Deregulation Increased competition for business from LCC’s & other carriers. Rising & volatile fuel prices Airlines are already restructuring (American Airlines, Air France, Gulf Air, SA Airways, KQ,)

3. Industry Challenges Growth Potential The African Context • Sustained growth in the air transport sector. • Air travel demand to, from, & within Africa forecast to outpace world average growth at 5.7% annually. • Long term growth at 4.4% above world average. • Airlines expanding flight routes and increasing fleet size. • The African aviation sector expected to experience growth of 6% by 2014. • Increased competition from foreign airlines & LCCs). • Low operating margins. • Lack of skilled workforce. • Inadequate capital for expansion. • Enhanced labour rights in some states.

4. Restructuring options for African Airlines SOME COMMON OPTIONS

5. The Critical Employment Law Issues UNCERTAINTY

6. Restructuring as a Concept 3 KEY COMPONENTS

7. Design – Phase I

8. Forms of Design

9. Redundancy

10. Redundancy cont’d…

11. Termination

12. Business Process Outsourcing (BPO)

13. BPO cont’d… Transfer of whole or part of business as a going concern

14. BPO cont’d… Transfer of employees to BPO Provider

15. Execution – Phase II

16. Execution cont’d…

17. Marketing – Phase III

18. Take Home Points

19. Questions ?

20. BOTSWANABURUNDIETHIOPIAKENYAMALAWIMAURITIUSMOZAMBIQUENIGERIASUDANTANZANIAUGANDAZAMBIABOTSWANABURUNDIETHIOPIAKENYAMALAWIMAURITIUSMOZAMBIQUENIGERIASUDANTANZANIAUGANDAZAMBIA NAIROBIAnjarwalla & Khanna ALN House, Eldama Ravine Gardens, WestlandsPO Box 200-00606, Sarit Centre, Nairobi, Kenya Apollo Centre, 2nd Floor, Wing A, Ring Road Parklands, Westlands PO Box 200-00606, Sarit Centre, Nairobi, Kenya T +254 (0) 20 364 0000, + 254 (0) 703 032 000 F +254 (0) 20 364 0201 E nbi@africalegalnet.com MOMBASAAnjarwalla & Khanna S.K.A. House, Dedan Kimathi AvenuePO Box 83156–80100, Mombasa, KenyaT +254 41 2225090/6 F +254 41 2224996E mba@africalegalnetwork.com Legal Notice: these materials are for training purposes only and do not constitute legal or other professional advice.