On the Runway | 1

GLOBAL Aviation Group

On the Runway
kpmg.com
2 | On the Runway

Contents:
airline M&a trends 4

British airways: it Security assessments

& third party Reviews 6

Saudi arabian airlines: it transformation 7

Jet airways: Co-sourced internal audit 8

Qantas: proposed Loyalty program initial public Offering 9

Qantas: volcanic ash Cloud Review 10

Major european airline: Carbon Risk Management

and Fuel hedging 11

asian airline: enterprise Risk Management Framework 12

asian airline: payment Card industry

Data Security Standard Compliance 13

Major uS airline: internal Control Review 14

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 On the Runway | 3

environmental events such as the the focus on the effectiveness

european ash cloud in april/May 2010 of airlines, control environments
and severe winter weather in the continues to be critical.
northern hemisphere result in airlines
KpMGs global aviation practice provides
needing to communicate to their
advice across a wide spectrum of
investors the impact of significant

services and clients globally. with

environmental events on their
centres of excellence in europe, Middle
businesses;
east, asia and the uS, KpMG firms have
airlines have used many mechanisms the ability to service the global
to work around route right rules and aviation market.
From quantifying the foreign ownership restrictions. From
simple code-shares to full blown KpMG works with a broad spectrum
impact of the icelandic mergers there are plenty of iterations of aviation clients from start up lower
ash cloud to ensuring in between. this activity is likely to be cost operators to the longest established
continued, with the latest round of uS brand names in aviation. we work with
the security of customer consolidation and the european open the leading lower cost airlines in the
data KpMGs global sky seeing more activity; world as well as full service carriers
recognising the different markets
airline practice have skills whether it is the replacing of ageing
that they operate in and the impact of
it infrastructure or protecting vital
and experience to make customer data for compliance with
different regulatory frameworks on their
operations.
a difference to our firms security laws and agreements, it is
always high on the agenda of airlines. KpMG is an active member of the
airline clients. as not only a key cost to airlines, aviation industry; in our role as
if utilised appropriately, it can give the accounting advisor to the iata
airlines the edge in enhancing the accounting working Group influencing
customer experience; key changes to international accounting
Governance and risk whether it is Standards, or presentations to industry
the fallout of the global financial crisis conferences and forums.
or the general tightening of regulatory
This document provides a sample of
scrutiny that appears to be occurring
our member firms work.
in many jurisdictions in recent years,

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4 | On the Runway

Airline M&A trends:

M&A trends targeting greater business and leisure moving beyond generic statements
After some tough and turbulent years of numbers. such as improving processes and
insolvencies, industry losses, aggressive management, increasing global
capacity cutting and postponed aircraft Finally, we believe that the emerging capabilities, reducing operations and
orders we are starting to see the green markets and Middle Eastern countries support costs and improving overall
shoots of recovery. and China, will also drive M&A as they fleet reliability and availability.
seek to grow their indigenous airlines
The industry has entered into its latest to be players on a world stage and seek Assessing underlying earnings
round of consolidation, both in the US to create global airline hubs in their including: sale and lease back profits;
with Delta and Northwest and Europe countries and of course vice versa, one off costs related to major re-
with BA and Iberia. However, size is not incumbent FSCs will seek to expand their fleeting; exceptional fuel, FX and
everything. The real challenge, for both footprint into emerging markets through interest hedging cost; the historical
Full Service (FSC) and Low Cost (LC) alliances, joint ventures and also classical impact of events such as volcanic ash,
carriers, will be to turnaround operating M&A activities. sever winter conditions and building a
margins from what has been low single view of the key sensitivities affecting
digits at best. Through our extensive support to recent future targets.
airline transactions in Europe, the US and
Airlines have used a variety of AsPac, KPMG has been integral to the Understanding the liquidity of an
mechanisms to work together and thinking involved in solving some of the airline, taking into account seasonality
partially overcome the restrictive fundamental deal issues. These include: patterns, minimum operating liquidity
international route rights and foreign requirements, revenue forecast and
ownership restrictions placed on the Getting the deal done (pre deal) hedging (margin calls).
industry. Going forward, given this Carrying out extensive and robust Analysing the net debt position, with
pressure on margins together with the synergy evaluations, taking into special consideration to the financing
relaxation of some of the ownership careful consideration where cost of the existing fleet (including
regulations, principally cross Atlantic, and revenue synergies would be and operating lease commitments and
we do see a greater focus on M&A for how they would be achieved: For restricted cash from maintenance
FSCs in global consolidation and for LCs example, producing detailed financial reserves) and aircraft orders and
in building greater network breadth in details for cost/revenue synergies and sources of funds.

2011 KPMG International Cooperative (KPMG International). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.

assessing route profitability and what
an integrated profitable route network
looks like.
assessing drivers of revenue
and cost and identifying revenue
and operational improvement
opportunities impacting yield,
ancillary revenue, aircraft and crew
productivity, as well as new factors
impacting unit costs such as air traffic
levies and the eu emission
trading scheme.
Reporting and tackling pension
deficits and advising on how issues
can be managed going forward.
Fleet valuation taking into account,
for example, cycles and flight
hours remaining to next checks
and the accounting for scheduled
maintenance, expected end of lease
return costs for leased aircraft etc.
Revenue recognition (especially with
regards to frequent flyer schemes,
unused coupons and interlining
balances).
Fulfilling cross border legal reporting
obligations at a time when resources
and management time is
being stretched.
understanding implications from eu
and international Regulations on the
proposed deal (anti-trust/competition;
foreign ownership restrictions and
bi-lateral landing rights; eligibility for
eCa/eXiM financing).
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On the Runway | 5
T
Capturing the value (post deal) Optimising and aligning key revenue
adjusting unrealistic synergy targets drivers: ancillary revenue, pricing,
as external conditions have changed yield curve, etc (potential alliance
(fuel prices, taxes, economic change for one of the partners).
downturn) or that the synergies network and route optimisation
were developed top down with taking into account slot restrictions.
little consideration given to the
practicalities of integration. aligning the fleet to integrated flight
schedule requirements and reducing
Overcoming cultural differences the number of aircraft types and
and resistance to integration, often configurations.
stemming from a cross border
integration or where the airlines have Overcoming a multitude of it issues
opposed operating values and ethos. that are encountered post integration
in an industry where there is a high
handling negotiations in a highly degree of system customisation and
unionised environment: pilots, cabin where every part of the business
crew, MRO technicians and ground relies on effective it.
handling operations in particular.
Managing a range of employee
Determining where the synergies fall, relation issues post deal: For example,
i.e. maximising overall group profit merging of seniority rankings and
whilst meeting the needs of retention of key talent.
local shareholders.
integrating reporting and accounting
Dealing with anti trust restrictions: systems with harmonised key
evaluating remedies to be offered operating performance indicators so
to anti trust authorities (e.g. slot that the enlarged business is in full
disposals and reduced frequencies financial control from Day 1.
on key routes) and implementing
monitoring trustee. Our experience of working with
major airlines in solving these issues
integration of reward and and many more makes us the ideal
loyalty schemes. partner to support you in both getting
Brand management when two flag the deal done but also in capturing
carriers merge and assessing the the value that you have committed to
impact on both the employees your shareholders, the market, your
and customers. employees and customers.
ensuring that there is no disruption to
customer delivery and service levels
during any of the integration changes.
6 | On the Runway

British Airways: IT Security

Assessments & Third Party Reviews:

Context Platform security assurance review: test the robustness of the network
Over the past seven years, KPMG in the This is an intense annual technical perimeter devices, such as Internet
UK has been an important provider of assessment of British Airways key facing servers and intrusion
external information security services to operating platforms and systems. The detection systems.
British Airways. work is performed to strict timescales
3rd party assessments: KPMG has
to avoid disruption to the airlines live
The range of services provided has been commissioned to provide
operations, and to meet deadlines
increased since KPMG initially started assurance regarding security over a
set by external audit. KPMG works
providing independent assurance number of 3rd party organisations. The
with British Airways each year to
services to British Airwayss Business work has included assessments of the
minimise the impact of the audit upon
Controls function in 2004. A strong controls in place at the organisations,
the business and, where possible, to
working relationship has since developed and the provision of processes and
streamline the audit programme.
between KPMGs information protection procedure recommendations in order
team and British Airways via the Internet security: KPMG provides for the organisations to remediate
provision of high quality deliverables and assurance services over British control deficiencies.
frequent communication between the Airways external facing network
two teams. systems by providing both web
application and network service level
The security services provided require testing of systems and public facing
in-depth technical skills, as well as applications. Web application testing
industry knowledge and experience, and consists of Ethical Hacking of
address a wide variety of systems and British Airways systems, in order to
technologies. establish areas of potential weakness,
through the use of a number of
KPMGs Role and Outcome tools and techniques available both
The main services KPMG provide to commercially and developed in-house.
British Airways include: KPMG has also been engaged to

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 On the Runway | 7

Saudi Arabian Airlines:

IT Transformation:

Context KPMGs Role Outcome

Saudi arabian airlines is the largest KpMG in Saudi arabia was engaged in Our in depth understanding of the
Middle eastern Flag Carrier carrying over early 2008 to set up, run and manage an airline industry, i.t. systems, project and
16 million passengers annually. Saudi i.t. program Management Office with program management enabled KpMG
arabian airlines is a complex entity who responsibility for driving and controlling to assist Saudi arabian airlines install a
serves the Kingdom of Saudi arabia with the delivery of the i.t. Master plan relevant and working methodology to
both Commercial and public Service program. this program consisted of over manage the overall implementation of
Obligations, having to cater for Royal/ 25 new technology solutions into nine a complex and highly interdependent
vip demands and religious travel (hajj & specific lines of business across portfolio of applications and supporting
ummrah) whilst operating commercially the enterprise. infrastructure in alignment with new
on a global network spanning business processes.
approximately 90 destinations. Our multidisciplinary team worked
across a number of work streams which
in the early 2000s Saudi arabian airlines included:
was selected for privatisation by the
Government. in order to support the program Risk, issue and Scope
break-up of the airline into specific lines Management;
of business, Saudi arabian airlines chose program interdependency
to transform its information technology Management;
systems from their then current in-house
portfolio of legacy based applications program Financial Control and
and infrastructure to Best of Breed vendor/Contract Management;
OtS products to support and serve their Business Blueprint Quality
current and future requirements. assurance; and
program Communications.

Our in depth understanding

of the airline industry, it
systems, project and program
management enabled KpMG
to assist Saudi arabian
airlines install a complex
portfolio of applications and
supporting infrastructure.

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8 | On the Runway

Jet Airways: Co-sourced

Internal Audit:

Context inventory management (technical and Outcome

Jet airways is indias largest non-technical); with our recommendations, Jet airways
private airline. has improved and strengthened its
Fuel procurement;
internal controls across business
to establish and improve their internal treasury management; processes. the results of our review
control system over reporting, and provide independent assurance to the
to monitor and assess the business Revenue management;
Board and management of Jet airways
processes and control activities, Jet Contract compliance; on the adequacy of internal controls and
airways engaged KpMG. compliance to company policies.
Debtors and creditors review;
KPMGs Role
high value procurement;
KpMG provides co-sourced internal audit
Landing and parking charges;
services to Jet airways. Our role involves
providing an independent assessment of Sap authorization controls;
the internal control design and operating
Statutory compliance; and
effectiveness of business processes/
areas selected from the internal audit Freight inward charges.
plan approved by the Board of Jet
airways. the various areas
reviewed comprise:

W
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 On the Runway | 9

Our in depth
understanding of the
operation of loyalty
programs enabled KpMG
to deliver across multiple
work streams within the
tight timescales required
of the transaction.

Qantas: Proposed Loyalty

Program Initial Public Offering :

Context taxation advice on the separation of T

in 2008 Qantas considered the QFF from Qantas Limited;
separation of Qantas Frequent Flyer from
accounting advice on the treatment
Qantas Limited, including the listing of
of points breakage;
Qantas Frequent Flyer on the australian
Stock exchange through an initial public Review of external actuarial advice on
Offering (ipO). points breakage; and
end-to-end business process review
KPMGs Role focusing on key risks and associated
KpMG in australia was engaged as control measures.
investigating accountant to the ipO and
Concurrent with the transaction process,
provided advice to QFF on their business
the QFF business was implementing
processes in operating as a stand-alone
a number of strategic initiatives to
business. Our multidisciplinary team of
establish the loyalty scheme as a
25 staff worked across a number of work
premium loyalty offering in the market.
streams which included:
these initiatives included:
Carve out and audit of the historical
any seat any time redemption options;
results of the QFF business;
introduction of the QFF store, which
Review of the forecast financial
is comparable with credit card loyalty
information to be included in
stores; and
the prospectus;
a move from an indirect earn model
Model integrity review of the financial
to direct earn for credit cards.
model supporting the forecasts;

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10 | On the Runway

Qantas: Volcanic Ash Cloud Review :

Context within the reviewed period disruption in data inputs into the model increasing the
volcanic eruptions in iceland during Bangkok, the Greek debt crisis and cabin reliability of the model outputs.
april and May 2010 caused direct flight crew strikes at British airways, a key
cancellations due to airspace closures partner airline on its european routes, all this process took place both immediately
and caused a short term reduction in had an impact on demand. after the initial disruption period and later
consumer confidence, which translated when further data was available.
to reduced flight bookings. KPMGs Role
Outcome
Qantas considered it important to KpMG in australia was engaged to
perform an independent review of Qantas were able to communicate with
quantify early the direct financial impact confidence the initial and secondary
due to airspace closures and at the end the methodologies and assumptions
used by Qantas management and impacts of the icelandic volcanic
of the disruptions to quantify the full eruptions on its financial result.
financial impact. this was to allow better to report observations and potential
understanding of the results internally improvements.
in addition, this analysis has enabled
and allow for the net profit consequence Detailed discussions around appropriate understanding internally of
to be presented to the market. methodologies, assumptions, and the ongoing impact of this type of event
appropriate input data took place with and assisted with planning for any future
it was apparent that the opportunity cost
management and a robust model aircraft groundings related to disruption
of lost bookings was inherently difficult
resulted. in addition, we undertook whether as a result of volcanic activity or
to quantify. For example, many Qantas
limited procedures to verify the base any other event.
routes indirectly feed european traffic and

KpMG in australia was

engaged to perform an
independent review of
the methodologies and
assumptions used by
management

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T
Major European Airline: Carbon Risk
Management and Fuel Hedging :
Context
the client is one of the leading airlines in
the european aviation market.
all airlines with destinations in the
european union (eu) have to participate
in the eu emission trading Scheme
(etS). as part of this obligation, airlines
had to submit their carbon monitoring
concepts to the supervisory authorities
by the end of 2009. the challenge
was to set up a proper system for the
measurement of carbon emissions, as
well a process and methodology to start
carbon trading and hedging.
hedging of carbon emissions is closely
related to the hedging of an airlines jet
fuel exposure. For this task, a diverse set
of hedging strategies exists. although
most airlines have defined a hedging
strategy, it remains a challenge to
measure the actual risk of their plain
exposure as well as of the hedged
portfolio. however, risk measurement
is a key element in identifying potential
hedging strategy improvements with
respect to risks taken versus
insurance costs.
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On the Runway | 11
KPMGs Role Calculation of the cost of these
the airline asked KpMG to validate its strategies with respect to spreads as
monitoring and tonne kilometre concepts well as option premiums paid;
for the etS. additionally, KpMG was
Support of the hedge accounting
asked to provide a way of measuring the
process especially with respect to
actual risk of the jet fuel exposure and
prospective as well as retrospective
the corresponding hedges and to enable
regression testing and the calculation
the client to examine the risk as well as
of the hedge effectiveness; and
the cost of alternative hedging strategies
in different market situations. incorporation of all major instruments
observed in the jet fuel arena as well
with respect to validating the concept for as all major underlying pricing indices.
Carbon Measurement, KpMG:
Reviewed the internal solutions to Outcome
measure carbon emissions under eu- a working paper including the key
regulations. Data such as fuel density, findings of verifying the etS scheme
fuel upload and flight distance had to concepts was elaborated. Furthermore
be collected and aggregated; and the key challenges of implementing
the solutions described in the concepts
validated the internal controls and risk were displayed and discussed with the
management processes, as several airline. Subsequently, the airline received
departments and it tools approval by the supervisory authority.
were involved.
with respect to enabling the airline to with respect to its hedging strategy
optimize its hedging strategy, KpMG the airline is now able to compare the
developed a comprehensive tool based risk and the cost of simple hedging
on Microsoft access. the key features of strategies with more complex strategies
the tool were: that are based on other underlying factors
than jet fuel and include e.g. complex
Calculation of the earnings at risk of option structures as instruments. with
the exposure as well as of the this ability, the airline has a key tool to
hedge portfolio; further optimize its hedging strategy.
12 | On the Runway

Asian Airline: Enterprise Risk

Management Framework :

Context
the airline commenced its enterprise
Risk Management (eRM) project in
2007 and has gradually established
the eRM framework. the airline had
completed the phase of risk identification
and assessment, planned to further
improve the efficiency and effectiveness
of the organisation on the Risk
Management Maturity Framework.
KpMG then helped the airline to
determine where the organisation plans
to proceed for its business growth.

KpMG worked with the airline to

establish a plan to achieve their risk
management goals by identifying gaps
W
of the eRM system for corporate
risk management, and incorporate between the current and expected risk
clear accountability to support risk management practices as measured
management objectives. against KpMGs Risk Maturity
Framework. we worked with the airline
Considering that the process of to help them understand the benefits of
improving its existing eRM system is closing identified gaps and to develop an
a long term project, the Company has action plan to achieve the
selected investment Risk, which is one expected outcome.
of the planned pilot risk areas as its
starting point, to initiate the project. we assisted the airline with Outcome
implementing a risk management with our recommendations, the
program to help embed risk management airline has developed a balanced eRM
KPMGs Role within the organisation. framework that can assist the airline to
we worked with the airline to compare
align with their business strategy and
its current risk management practices we also advised the airline on
embed the framework in their business
against industry peers and to analyse implementing an ongoing monitoring
processes with better focus on their
the business risks threatening the program to continuously improve and
most critical risks.
achievement of the business objectives. reinforce risk management practices
we first considered the existing risk within the organisation.
management practices and position

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 On the Runway | 13

T
Asian Airline: Payment Card Industry
Data Security Standard Compliance :

Context state operating process and systems identified and provided

with acquiring banks increasingly putting
pressure on their merchant clients to
conform with payment Card industry
Data Security Standard (pCi DSS)
requirements, a major global airline
found itself being subjected to a series
of fines for non compliance. as a result
of these fines the airline recognised
the challenges that the transport sector
face in developing efficient systems and
processes that comply with industry
standards for the handling of credit card
receivables. ultimately every business
unit was affected with the heads of
finance, operations, technology, treasury,
tax and sales all being involved in the
related issues.
KPMGs Role
KpMG worked closely with the airline to
understand how credit card information
flowed through the organisation from
point of sale to acquiring bank. after
gaining a deep understanding of their
processes, recommendations from
an efficiency and pCi DSS compliance
perspective were provided and a future
architecture for the handling of credit card recommendations on process
receivables developed. inefficiencies leading to revenue
leakage in excess of uS$10m; and
During the project, KpMG advised the
airline on: profits and income tax planning
as processes and systems for the
Cash and treasury management handling of credit card receivables
issues relating to global transaction were restructured. with more and
banking. the project revealed practices more transactions being processed
that were not in line with industry through internet based portals and
standards leading to increased differing geographical locations the
cost, limitations to management airline wanted to have a clear view
intelligence, technology constraints of its profits and income tax liabilities
resulting in manual processes and and sought insight into how this could
inefficient tax planning; be managed efficiently.
vendor selection and management in
relation to the implementation of new Outcome
core systems; a future state operating process and
systems architecture was developed for
Business requirements for the
the handling of credit card receivables.
implementation of new core systems
the airline was able to streamline and
including an impact analysis on
standardise its processes around credit
processes and their compliance with
card receivables achieving significant
pCi DSS;
cost savings with improved management
appropriate policies and procedures intelligence whilst following a risk based
for the handling of credit card approach to pCi DSS compliance.
receivables in line with pCi DSS;

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14 | On the Runway

Major US Airline:
Internal Control Review :

Context Frequent Flyer Accounting and Testing the design of identified

KPMG in the US was engaged to Inventory Accounting); controls; and
undertake work on the effectiveness of
Performing process walkthroughs of Testing the operating effectiveness of
the Airlines internal controls over
significant activities within the Airline; identified controls.
financial reporting.
Identifying critical process-level
KPMGs Role controls that mitigate identified Outcome
process-level risks; KPMG was able to provide valuable
KPMG evaluated managements risk feedback to management on the
assessment process by: Identifying critical entity-level controls effectiveness of the internal control
that mitigate identified entity-level environment over financial reporting.
Identifying significant activities within
risks;
the Airline (e.g. Aircraft Leasing,

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 On the Runway | 15

KPMG contacts :
For more information, please contact a professional from the following
KPMG member firms.

Global leadership

Dr Ashley Steel Malcolm Ramsay

Global Chair Transport Global Head of Aviation
15 Canada Square 10 Shelley Street
London, E14 5GL Sydney 2000
U.K. Australia
T: +44 20 7311 6633 T: +61 2 9335 8228
E: ashley.steel@kpmg.co.uk E: malramsay@kpmg.com.au

Contact us :
Argentina China and Hong Kong France

Eduardo H Crespo Andrew Weir Philippe Arnaud

+54 11 4891 5673 +852 2826 7243 +33 1 5568 6477
ecrespo@kpmg.com.ar andrew.weir@kpmg.com.hk parnaud@kpmg.com

Australia Costa Rica Germany

Mal Ramsay Erick Brenes Steffen Wagner

+ 61 2 9335 8228 +50 622 014 100 +49 69 9587 1507
malramsay@kpmg.com.au erickbrenes@kpmg.com steffenwagner@kpmg.com

Belgium Czech Republic Hungary

Serge Cosijns Eva Rackova Eva Varnai

+32 3 821 18 07 +420 222 123 121 +36 1 887 7259
scosijns@kpmg.com evarackova@kpmg.cz eva.varnai@kpmg.hu

Brazil Denmark India

Alexandre Heinermann Jesper Ridder Olsen Manish Saigal

+55 11 2183 3151 +45 3818 3593 +91 22 3090 2410
aheinermann@kpmg.com.br jesperolsen@kpmg.dk msaigal@kpmg.com

Canada Egypt Ireland

Jim Pickles Hossam Fahmy Sean OKeefe

+1 604 691 3572 +20 2 3536 2211 +353 1 410 1241
jpickles@kpmg.ca hfahmy@kpmg.com Sean.okeefe@kpmg.ie

Chile Finland Italy

Alejandro Cerda Pauli Salminen Alessandro Guiducci

+56 2 798 1201 +358 20 760 3683 +39 010 553 1913
acerda@kpmg.com pauli.salminen@kpmg.fi aguiducci@kpmg.it

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16 | On the Runway

Japan Portugal Switzerland

Kazunori Hamamura Joo Augusto Marc Ziegler

+81 3 3548 5301 +351 210 110 000 +41 44 249 20 77
kazunori.hamamura@jp.kpmg.com jaugusto@kpmg.com mziegler@kpmg.com

Korea Russia Taiwan

Ha Kyoon Kim Alexei Romanenko Fion Chen

+82 2 2112 0271 +7 495 663 8490 ext.12694 +886 2 8101 6666
hakyoonkim@kr.kpmg.com aromanenko@kpmg.ru fionchen@kpmg.com.tw

Mexico Saudi Arabia Thailand

Luis Carrero Jonathan Barnes John Sim

+52 818 122 1818 +966 2 658 1616 +66 2 677 2288
luiscarrero@kpmg.com.mx jmbarnes@kpmg.com jsim@kpmg.co.th

Netherlands Singapore Turkey

Herman van Meel Wah Yeow Tan Fikret Cetinkaya

+31 20 656 7222 +65 6411 8338 +90 221 317 745 0437
Vanmeel.herman@kpmg.nl wahyeowtan@kpmg.com.sg fcetinkaya@kpmg.com

New Zealand South Africa U.K.

Paul Herrod Dean Wallace Dr Ashley Steel

+64 9 367 5323 +27 11 647 6960 +44 20 7311 6633
pherrod@kpmg.co.nz Dean.wallace@kpmg.co.za ashley.steel@kpmg.co.uk

Norway Spain U.A.E.

John Thomas Srhaug David Hohn Deepak Parekh

+47 4063 9293 +34 91 456 3886 +971 2 632 3476
john.thomas.sorhaug@kpmg.no dhohn@kpmg.es dparekh@kpmg.com

Peru Sweden U.S.

Victor Ovalle Bjorn Hallin Chris Xystros

+51 1 611 3000 +46 8 723 9626 +1 757 616 7009
vovalle@kpmg.com Bjorn.hallin@kpmg.se cmxystros@kpmg.com

TThe information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely

information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without

appropriate professional advice after a thorough examination of the particular situation.

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provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such

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Publication name: On the Runway

Publication number: 173086

Publication date: February 2011