ANNUAL

SHAREHOLDER
REPORT

2017-18
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Letter From Our CEO

plusJet is based in the Great Lakes region, United States. We pride ourselves in being a high quality, low cost
airline, connecting customers to 12 destinations and growing fast. Since the takeover last year, we have
successfully increased the number of passengers flying with us and strengthened our brand. In addition, we
pride ourselves in our current 98.7% reliability factor and 94% quality factor, which is rising with every quarter!

We are expanding steadily to ensure that the established quality and reliability you have come to know and
trust over the past year are maintained. We have a small fleet of 4 Embraer Brasilia aircraft which are
maintained to the highest standard and we now plan on growing in the next annum to keep up with demand.
Growth will allow us to make sure that no-one misses out on our offering and that our service is accessible to
all.

plusJet has also opened up more jobs, doubling our staff count
since last year from 54 employees when we took over, to an
astonishing 110 at the end of this annum and counting. Our stock
prices are also flying as high as we are, doubling since the takeover
last year, from $20 to $38.29, and is looking positive for future
quarters as we continue to strive to be on top. I am extremely
Michelle Kim
proud of my team and can’t wait for next year’s endeavours. CEO of plusJet

Content: Our Mission Statement:

Letter from CEO & Mission Statement 2
“Connecting people, one, low cost flight at a time”

Key Events & Achievements 3 Here at plusJet, who says quality has to be
expensive? We are dedicated to giving you the
best experience, at the lowest cost. Why? We
Our Company 4 believe it shouldn’t have to break the bank to get
to your destination, ensuring you can spend your
money on the things that really matter:
People Development 5
connecting with those at the other end of your
flight.
Testimonials 6
We also pride ourselves on our excellent staff
training and well-being because happy staff
Marketing & CSR 7 means a happy company and a more pleasant
journey for everyone.
Routes 8

Financial Information 9

Conclusion & Outlook 11

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Key Events
Accounting Error
During our second quarter we suffered an accounting
error related to purchasing new aircraft. This resulted in
our firm suffering a large blow to profits at the end of
that quarter, harming our share price. However, after
prompt investigation we were able to rectify this
problem by completely overhauling our financial
strategy. This has lead to us being able to comfortably
afford all the costs associated with our expansion
efforts. This is clearly reflected in the profitability of our
airline over the last few months of this year.
New Hiring Decision
Our company hired a new employee as station manager
at one of our new locations at the beginning of the year.
While we received many applications from highly
qualified individuals, our firm decided to go with Mrs.
Walters, who we felt stood out the most. Her previous
experience as well as diverse background match greatly
with our airlines philosophy and what we are trying to
achieve at plusJet. Mrs. Walters hiring showcases our
commitment to giving equal opportunities to all and our
appreciation for diversity even given our small size.

Aircraft Engine Failure Quality Improvement Program

One of our aircraft suffered an engine failure in the 3rd
quarter of this year. However our crew managed the
situation heroically and professionally, ultimately
landing the plane safely with no injuries caused to any
passengers. After conducting a thorough investigation
our engineers were able to conclude that adverse
weather conditions, which the control tower failed to
warn our pilots about, were the sole cause of the
incident. This confirms that all our aircraft are always
maintained in perfect condition, ruling out any fault on
our side. We attribute the positive outcome to our high
employee spending and the fact that plusJet employees
are some of the most well trained in the industry.
Our Quality improvement scheme, which has been in
place since the start of this financial year has made
great strides forward. Our company was able to achieve
a 98.8% reliability rating on all our flights, in addition to
reaching a perceived quality score of 94/100. In
addition to this, we have reached a new agreement with
our existing supplier Vest to ensure that our passengers
can continually rely on us to fly them to their
destination on time and without delay. In addition to our
increased expenditures on our training and quality
budget, we also invested in new more sophisticated
Embraer Brasilia aircraft to reflect this years new and
higher standard.

Achievements
Voted Highest Quality Low Cost Airline
We are very proud to announce that we have been voted highest
quality to price ratio by a national customer satisfaction survey in the
regions we operate in. This award highlights our commitment to
providing the highest quality service and aircraft but at everyday
low-cost pricing, which lies at the core of our philosophy.

Fleet Expansion
Overall, our airline has managed to grow substantially, our fleet
currently stands at 4 high tech Embraer Brasilia aircraft. This is part
of our continuing mission to serve as many local destinations as
possible, while still providing customers with new state of the art
aircraft and facilities to make their journeys as comfortable as
possible.

Growth of Employees
Our team of employees has expanded to 110 by year end, doubling
from the start of the year. This is a milestone for our firm and we are
particularly proud that throughout this great expansion we have
always kept low employee turnover rates. We believe this indicates
how happy our employees are at our firm and also demonstrates our
commitment to training.
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The plusJet World

PlusJet People
Culture Values
To align our employee management with our
new strategy we have introduced a shift in
the way in which employees are managed by
P People: Our passion for delivering a quality
service means that we are proud to put our
customers and employees first. This so, we strive
creating a team-oriented environment. to develop trust by offering a reliable service and
delivering on our promises.
Now, at the heart of plusJet, there are teams
of diverse people who are working
collaboratively and undertaking personal L Learning: We couldn’t get to where we are today
without the talents of our teams and therefore
we place focus on enabling our employees to use
development to support the delivery of our
business operations. their skills and reach their potential. Resultantly,
when employees join PlusJet they also embark
With the growth and expansion of our on a learning journey which allows them to
operations, our organisation has increased by expand their knowledge and capabilities.
more than 50%, with our workforce now
counting at 110 employees.
U Unity: We encourage all of our teams to unite
and work collaboratively. This allows us to
remain responsive by enabling ideas and
The culture within plusJet encourages
employees to collaborate, grow and develop knowledge to be shared throughout the
confidence amongst customers and organisation.
consumers. The culture has established from
our values which are People, Learning, Unity
and Service and supports the firm in achieving
S Service: Everything we do is aimed at delivering a
service which meets customer expectations.
organisational goals and delivering our Therefore, whether it’s getting to your
customer value proposition. destination on time or being provided support at
a time of need, we are committed to being a
company that can be relied on.
Digital
Along with our focus on our employees and consumers, the plusJet
culture is innovative and embraces technology throughout the
organisation. Exploring and adopting new technology has been vital for
us in achieving success in efficiency and responsiveness.

Since our take over, we have acquired value from our advanced
computer system from the support it provides to our operations. Our
computer system has enabled us to schedule flights in line with
customer flight connections, optimise our level of efficient flight miles
and schedule fleet maintenance at off-peak flight times.

Utilising our digital system continues to deliver benefits to our

operations including, an identified reduction in high level maintenance
repairs across our fleet and zero maintenance disruptions.

Statistics 50% 3.63%

Workforce Growth 110 Employees Employee Turnover Talent Management

People & Development
Training
We are proud to invest in each of our
employees by delivering training and
development programmes. In addition, we
welcome each member of the organisation
with an orientation programme and this allows
new employees to establish an understanding
about our values and organisation culture.
Training has been a key element supporting
our success this year with employees feeling
confident and equipped with the knowledge
and skills to complete their job requirements,
deliver high standards of customer care and a
quality service.
The results of our training programmes have
supported increases in our quality rating each
quarter and have allowed us to maintain a low
employee turnover rate, with an average of
3.63%.
In addition, providing developmental
opportunities fits with our strategy as it allows
us to generate commitment from employees
and enables employees to progress internally,
therefore reducing recruitment costs from
employee turnover.
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Leadership Development Programme
In line with our learning company value, our
mission to identify and nurture the talent and
potential of employees led to the launch of our
Leadership Development Programme this year.
Our Leadership Development Programme has
been created to identify potential leaders and
train and develop them for progression into
managerial roles. The programme firstly educates
participants about plusJet processes and
activities within operational areas and then
moves on to provide mentoring and training in
leadership and management.
The programme is three years in length and with
weekly reviews and feedback, at the end of the
programme participants will be capable of
successfully managing business operations and
people. The launch of the programme has been
successful and after a huge response from
applicants our first participant has immersed
herself in the opportunities the programme
offers.
’’ plusJet
has identified my abilities and potential
to be a future leader and has provided me with a
platform to develop skills whilst learning about
airline operations and receiving mentorship from
my personal mentor. The programme is exciting
and from day one I am given responsibilities and
tasks and now have my very own team to
manage. I am looking forward to being involved
with PlusJet’s next stage of business growth.
‘’
Sarah Walker
Leadership Development
Programme Participant
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Don’t Just Take Our Word For It...

Desmond Mills, 48

“ I feel like plusJet really cared about my individual

needs, I hate flying but they reassured me and
went the extra mile to make sure I was feeling

“
okay before take-off. And you could tell that the
staff are clearly loving their jobs and were so I applied for the position of Crew Member 6
genuinely happy and interested in me as a months ago, and I’ve already been promoted
customer, that definitely rubbed off on me and I to Cabin Leader. It’s amazing how quickly you
started my day the right way, with a smile, at ease can advance within the company, and I
and relaxed. 10/10, I would definitely recommend,

”
wouldn’t have got there without all of their
and I wouldn’t fly with anyone else.
training, help and guidance! I really feel the
Jetters (plusJet staff) are like actual family to

“
me, and I’m excited for what the future holds!

I’ve been a pilot for little over 36 years

now, 3 of those months with plusJet. I quit
my old job when I found out about
plusJet’s reputation and that they were
100% people oriented and focused – how
Jeromy Lace, 41
”
could I not apply? I go to work every day,
happy and loving my job and the people I
get to meet. It’s not every day you get to
hear someone say that now, is it? I hope to
see you on one of my flights very soon.

Kevin Lorde, 57
” “ I’ve never had a more comfortable experience
flying, ever, that goes for my purse too!

”
Sandra Brook, 28

5 Star Service
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Marketing & CSR

Marketing
An exciting element of the management takeover
within plusJet has been the rebrand of the business.
Our new logo design incorporates a plus which is
effective because it provides consumers with the
ability to recognise the brand and connect the logo
to the brand name.
The rebranding of plusJet was an important decision
that was made to reflect that the brand is
undergoing a repositioning. We felt it important to
create a new brand image to ensure that consumers
do not get confused by changes in the value
proposition.
It has been exciting to hear the positive reactions
from customers about our new logo and we have
been utilising it to generate brand awareness and
recognition within the marketplace.
In terms of our marketing activities, promotions are
a strategy which have been used because they are in
line with our target audience. As our customers are
price conscience, we have identified promotional
activities as a positive strategy for driving sales by
generating awareness about our competitive price
and the quality of our offering.
In addition, another element of our promotional
strategy has been the employment of sales people
to support the communication of our strategy and
increase sales. Sales people have been selected
because they interact with customers and
therefore they help communicate our proposition
and values to customers.

Corporate Social Responsibility

As a brand that wants to make a positive impact on people
and society we have been actively involved in supporting
local communities and initiatives, including community
gardens, educating employment skills and helping at
community builds. The support we have provided has
included economic donations to support the running of local
community initiatives and also human capital through our
volunteer days.

Our employees are provided the opportunity to volunteer

once a month to support social initiatives. The feedback we
have received from the local communities has emphasised
the willingness of our employees and the positive impact
their help has delivered. In addition, employees are
benefiting from the opportunity to learn about their local
community whilst developing skills including teamwork and
communication.

Key Activities: £
Rebranding Promotions CSR
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Routes
Total Available Seat Miles
National, International and Resort

At plusJet our aim is to make high quality and affordable

air travel accessible to all. This is very much reflected in
our route expansion strategy this year. Our airline’s 8,147,000 9,840,000 13,968,000 13,968,000 19,152,000

current focus lies on short to medium range destinations Quarter 0 Quarter 1 Quarter 2 Quarter 3 Quarter 4

that boast large amounts of businesses, manufacturing Total Seats Available

firms as well as universities. We have identified that the
positioning of our airline in the market is ideal as with our
combination of high quality and low cost fares, we are able
to make business travel and commuting available to all. In
combination with our fleet of 4 fast and efficient Embraer 57 60 90 90 120
EMB 120 Brasilia aircraft, we have the ability to offer
Quarter 0 Quarter 1 Quarter 2 Quarter 3 Quarter 4
multiple flights in between these destinations, creating
additional value for our passengers. While business and consciously made an effort to expand into different
commuter travel remains the largest segment of our types of routes in order to offer our passengers all the
passengers we have also begun serving foreign and holiday connections they may require. Hence, we are happy to
destinations in the latter part of the year, to the delight of announce that our airline now offers flights to more
our current customers. At the moment we are looking to different destinations than ever before. In addition to
partner or merge with another regional airline to provide this, one of our highlights of the year was partnering with
more efficient travel solutions for our passengers. While a large recognized online ticketing website to allow
profitability is important for our firm when deciding customers the easy purchase of flight tickets online over
which new routes to expand into, we have always the internet.

Our Fleet:
plusJet is thrilled to announce that our current fleet stands at 4
state of the art Embraer EMB 120 Brasilia type aircraft. These
aircraft boast modern technology in materials, fuel efficiency,
noise abatement and nonflammable cabin materials. We are
proud to serve all of our routes using these medium-sized
turboprops as they are fast, reliable and most importantly, they
offer the most comfortable experience for our passengers. At
the beginning of the financial year our firm decided to part ways
with the Beechcraft that had served our company well in the
previous year. Our steady fleet expansion is a big part of our
new mission to provide greater service and reliability to our
passengers. While we have been expanding our fleet on a
quarterly basis, we seek to expand even further in the coming
year with the goal of doubling the current fleet size by quarter
3. This will allow our airline to serve even more markets and
remain the number #1 choice when it comes to affordable and
high-quality travel.
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Finance
Financial Information

Revenue/Quarter Revenue Growth

In the financial year under review plusJet

recorded total revenue of $11.156M with
an average increase of 26.90% reported
in each quarter. This was reasonably due
to our high quality while maintaining
affordable prices. Total operating
expenditure of $7.73M was also reported,
this was substantially utilised to maintain
the quality and reliability necessary to
align to our overall strategy.

Stock Price Growth

The number of common shares in issue

recorded at 31st March, 2017 was
191169. plusJet witnessed an increase of
91.45% in it’s share price which is the
highest since it’s incorporation, jumping
from $20 to $38.29. During the board
meeting held on 12th october 2017,
dividend of $10,000 was declared to be
distributed among it’s common
shareholders which was later paid on
20th december 2017. Following strong
growth numbers in our net profit from
quarter 3, on 12th January, 2018,
company indicated to pay special dividend
of $12,500 for the fourth quarter of
financial year 2017-2918 , which was paid
on 25th February, 2018.

Key performance area improvements:

25% 66.6% 11%

Passenger load factor Return on Assets Yield Per Available Seat Mile
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Finance
Financial Overview
Net Profit
We are excited to report financial year 2017-2018 has
been a huge success for plusjet with our profits both
after and before tax on rise overall after the four
quarters. We ended up with communicative profit
after tax of $245,978 while profit before tax being
$409,960 with total tax paid amounting to $163,982.
We recorded 3 out of 4 quarters as profitable with
highest profit reported from quarter 4 with $272,197
forming 48% of our total profit before tax, which we
are committed to maintain further in future. Due to
Quarter 2 not being very positive, our firm quickly
took measures to address the issues which caused our
large losses. Our firm completely refinanced the entire
fleet, sold stock and took on a long-term loan. These
measures were aimed at improving our liquidity and
cutting our costs to ensure our firm’s profitability.

Earning Per Share Return on Equity

(Dollar cent)
(Dollar cent)
$.086 Grew By Over 4 Times
$.015
$.056
$.013

2016-2017 2017-2018 2016-2017 2017-2018

Year-End Key Financial Return on Sales

Numbers (Dollar cent)

Total Liability $ 8.033M

180%
$0.042
Total Equity $ 2.93M
$ 0.015
Total Assets $ 10.96 M

Retained $ 423,997
Earnings 2016-2017 2017-2018
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Conclusion and Outlook

As a relatively new airline, we are happy to have rapidly gained recognition as

one of the fastest growing airlines in the industry. Though we have encountered
a small range of setbacks over the past year, the tenacity, hard work and
positive attitude of our executive team has led us to a great recovery. Our
success is hugely attributed to our values, which is our way of revealing who we
are and how we plan on reaching our goals.

Each day we work on actively implementing new innovative strategies in making

sure that we keep improving our quality ratings through the highest level of
maintenance factors, staff training and employee satisfaction. Therefore,
customer feedback on our services is valued and received with great care in
ensuring that improvements are made in critical areas on the services we
deliver.

We are an organisation that takes great pride in our employees and place great
value on them, which is why we recently developed several professional
leadership programmes, from consultancy to managerial. This is done to ensure
that, as well as delivering excellent services to our customers, we are also
actively ensuring that every employee of plusJet develops on a personal and
professional capacity.

The biggest goal for us as an organisation is striving to become one of the

biggest airlines in America, and we hope to achieve this within the next 10 years.
We are currently considering a few options: initiating plans to expand from the
Great Lakes region to a cosmopolitan region in the United States and to merge
with another airline company whilst maintaining our brand name to branch out
further. So far, the team has decided to focus on expansion and to maintain and
keep dominating the routes we have on the market. As of now, our goals
currently remain focused on: maintaining the highest quality and service, being
a low cost airline, fleet expansion of our aircraft and the growth of our
employees.

We are looking forward to the exciting year ahead and hope to fly with you
again soon.
www.plusjet.com