Safety Through Partnership An Integrated Approach to Safety Management

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

3 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!

4 Injury Rate Comparison by Industry Air Transportation Mining

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

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

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

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

9 Safety and Quality Management System (SQMS)

10 Threat & Error Management Policies Procedures Mngt / Safety Culture Tools Team/Individual Recognize Risk Take Action Lightning High winds Manpower & equipment shortages New equipment introduction Icing conditions

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

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

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

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

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