Safety Through Partnership An Integrated Approach to Safety Management

Agenda Current State Our Vision Our Plan New Developments Summary Safety Comparison by Industry Regulatory Activity Our Vision Driving an Evolution in Safety to the Individual Our Plan Key Elements New Developments Summary

Opportunities for Improvement in Air Transport Safety Aircraft Damage: $4.2 billion/yr (Flight Safety Foundation) 3 cancellations/day 1:10 injuries/yr (Bureau of Labor Statistics 2006) 7.7 per 100 will have a day away from work or restriction (Bureau of Labor Statistics 2006) 51 fatalities/yr (Bureau of Labor Statistics 2006) We can learn from this!

Injury Rate Comparison by Industry Air Transportation Mining

$5.8 Billion/yr in injury costs The Significance of Human Factors in Aviation Incidents (ground & flight) 100% 90% 80% 70% 50% 60% 40% 30% 20% 10% 0% 1903 Today Human Causes Machine Causes $5.8 Billion/yr in injury costs

LEADERSHIP & EXPERTISE Safe Working Environment SME List SQMS PHILOSOPHY & CULTURE TOOLS T&E MANAGEMENT Safety Culture E-SHEC BBS ERS Safe Working Environment HUMAN FACTORS Documentum METRICS

FOD/Wildlife Management Human Factors Risk Management SQMS** Safety Expertise & Team Development PHILOSOPHY Supplier Oversight FOD/Wildlife Management Safety Advocates Culture Development LEADERSHIP STRUCTURE Illinois Urbana-Champaign ERS/E-SHEC/BBS* Injury Review Board Safety Scorecards Documentum EXECUTION TOOLS **SQMS- Safety Quality Management System *E-SHEC=Employee Safety/Health Event Concern *BBS= Behavior Basis Safety Program

2008 Strategy Performance Focused Help Network - Safety Coordinator Training Communication Program Lessons Learned Proactive Communication Customer Contact Plan (MFA) Survey Scores Safety Coordinator Meetings Safety Principles 5 Dysfunctions of a Team Stanford Tape Series Safety Expertise SQMS Integration Supplier Management Injury Review Board BBS Redesign FOD/Wildlife Management Corrective Action Model Safety Scorecard Standard Work (IRB) Cost of Poor Safety Metrics FOA Elimination (Found on Arrival damage) Centralized Data (Documentum) Performance Focused

Safety and Quality Management System (SQMS)

Threat & Error Management Lightning High winds Manpower & equipment shortages Policies Procedures Mngt / Safety Culture Tools Team/Individual Traditional thinking was that we could eliminate human errors in aviation. Contemporary thinking acknowledges that we do make errors, and therefore we must know how to manage them. Also, threats exist for every flight. We must be ever alert to them and counter them when they occur. New equipment introduction Icing conditions Recognize Risk Take Action

Vendor Performance Program Documentum Safety Publications ARB Findings Training Materials Corporate Safety Safety Metrics Local Server Documentum Vendor Performance Program 24-Hour Information Access

Visibility by Station- Scorecard -Executive visibility -Real-time analysis

2007 Performance Data Improved visibility Effective corrective action LTI (+10.6%) Improved visibility Effective corrective action Increased partnership OSHA (+5.1%) A/C Damage (Flat)

Summary: Safety Through Partnership Drive an Evolution in Safety to the Individual Free Flow of Safety Information SQMS Data Sharing = S3P Safety Performance = Operational Performance “People doing the right thing because it’s the right thing to do” Joint Safety Culture Safety Performance Double digit improvements

Integrated-Airline Management Executive Team - Corporate Governance TSA PIRC (Passenger Incident Review Committee) Customer Supplier Management Safety Performance Dangerous Goods OSHA Aircraft Movement Environmental Responsibility Energy Conservation 4 Elements of Corporate Culture: Safety, Quality, Security, “Green” Backup data