1. SKYSERVICE AIRLINES INC. SMS Savik Ramkay Director Safety Management System

2. WHO ARE WE - SKYSERVICE Safety Management System 1 2 3 4 Future state – safety culture SMS two years later – adding components Organizational development Choosing where to start Corporate support SMS Report Agenda

3. Skyservice Established in 1986, Skyservice is Canada’s leading provider of aviation services consisting of 2 distinct segments: Aircraft Services Fixed Base Operations Aircraft Maintenance Aircraft Operations Air Ambulance Executive Aircraft Commercial Aircraft

4. Fixed Base Operations Skyservice is the market leader in providing executive aircraft services in Canada through its fuel and hangarage businesses at its private terminals in Toronto, Montreal and Calgary Skyservice’sToronto facility has been ranked #1 in Canada and #4 in North America & Mexico out of 3,500 operators for over 5 years

5. Maintenance Skyservice is the largest executive aircraft maintenance business in Canada with over 55 aircraft maintained Skyservice is a large provider of maintenance and repair services for regional airlines in North America Airlines currently provides line maintenance for Zoom, Thomas Cook, Air Jamaica…

6. Air Ambulance North America’s largest supplier of international intensive care air ambulance services Carrier of choice for many of the world’s leading travel health insurance companies Air ambulance customer base includes over 40 international insurance and assurance companies Flies approximately 600 international repatriation missions around the globe annually

7. Aircraft Operations Commercial Aircraft Provides lift to Canada’s largest leisure tour operators controlling approximately 60% of Canada’s all inclusive tour package market Operates a fleet of 24 Airbus and Boeing aircraft from every major city in Canada Extended charter operations world wide 15% of the business is to Mexico Skyservice Destinations Mexico, Caribbean, Bahamas, Florida, Las Vegas, Central America, UK and Europe

8. Safety Management System (SMS)

9. Your Text her The alignment of corporate visions with industry objectives allows for synergies focusing on: SAFETY SECURITY CONTINUITY EFFICIENCY It will serve as the foundation for future growth Safety Management System WHERE TO START

10. Your Text her Leadership, vision, future state, commitment and continual review These are all key components to building on what got us here; however we are too big to rely on key individuals. Balanced phased in approach with consistent changes Engage the Executive directly to ensure the full and unconditional support is there for the program. Safety Management System CORPORATE SUPPORT

11. Safety Management System Implement SMS components Safety Policy Safety reporting – what has happened, hazards observed Safety Database Safety Assessment Group Quarterly Executive review

13. Safety Management System Implement SMS components Developing cross functional teams Minimize risk transfer between operational departments Improve trust and understanding

14. Safety Management System Implement SMS components Risk Management Emergency Response Safety Audits Training and Awareness

15. Your Text her Promote SMS inside the company…safety is good business Ensure core ideologies are know – safety, quality, security, business accruement. Safety Management System ORGANIZATIONAL SUPPORT

16. Safety Management System ORGANIZATIONAL SUPPORT Managerial support: Behavioral consistency Exhibit Integrity Develop Teamwork Open communication Show empathy

17. Your Text her Program has been operational for two years Balanced phase in approach that is aligned with corporate principles and values H&S major injuries down 20 % over last year Ground damage is down 15 % over last year Development of Safety Officers in each department. SMS data – trends Safety Management System SMS Report

20. 2005 MAJOR/MINOR A/OSH INCIDENTS

21. SMS TCAS EVENTS

22. TCAS RA Events by Location – 2004 & 2005 Total Events - 38

23. TCAS RA Events by Location – 2004 Total Events - 19

24. SMS Quarterly Trend Review

25. Occurrence Summary Report 01 Dec 05 to 28 Feb 06

26. Occurrence BREAK DOWN by TYPE 01 Dec 05 to 28 Feb 06

27. Occurrence BREAK DOWN by TYPE/EVENT 01 Dec 05 to 28 Feb 06

28. SMS – adding components two years later

29. Safety Management System Adding SMS components 2006 Flight Data Collection and Analysis Quality Assurance in Flight Ops Root Cause Analysis - Trends Corporate accountability of Safety, Quality and Security SAFE PROJECT Satellite Communications and Fuel Efficiency Sharing our experiences…

30. Safety Management System Flight Data Monitoring Finalizing FDM pilot agreement Closing stages of RFQ for analysis Learning curve – we take this journey together Provide another tool to improve fight safety, training and standards…

31. Safety Management System Quality Assurance “Plus” Flight Operations QA Manager operational in 2005 Developed audit schedule 2006 Reporting to VP Flight Operations Compliance to Regulations, company policies and procedures

32. Safety Management System Root Cause / Trends Utilizing two years of data to understand systemic issues Focusing on causes Developing data supported trends Understanding Human Factors of Safety Providing the Executive reports that would allow them to concentrate on business

33. Safety Management System Corporate accountability Accountable Executive receives structured updates delivered by the accountable managers: Corporate Big picture Safety – performance indicators Quality – performance indicators Security – performance indicators Investigations – status reports Review trends and causal factors Regulatory request

34. SMS, Security and Quality Report Quarterly at the Safety and Quality Review Number of open/closed audit year to date Number of open audit from the previous year 1 Regulatory request # internal compliance audits planned & completed Review of trends and causal factors Investigation status 2 3 4 5 6

35. Item Q1Q2Q3Q4 06 ’ OPEN Safety Reports (YTD) 33 06 ’ CLOSED Safety Reports (YTD) 33 05 ’ OPEN Safety Reports 11 Investigations 2 Transport Canada Request 0 SMS Report

36. Item Q1Q2Q3Q4 2006 Open Audit Findings (YTD) 11 2006 Closed Audit Findings (YTD) 0 2005 Audit Findings 51 2006 Annual Audits Planned/Completed 4 / 4 Transport Canada Request 0 Maintenance QA Report

37. Safety Management System SAFE Install airborne satellite communication and Information management programs Provide real time operational data to ground – Engine & Aircraft performance parameters to support flight safety Reduce insurance premiums, fuel burns, Improve flight dispatch, flight following, in-flight service, communications Reduce fuel burns in compliance with reducing green house emissions – Kyoto Accord

38. Safety Management System Sharing experiences SMS components and methodologies are being added to our other business units Employee development Continue to work with Transport Canada Industry presentations – ICAO, Canada, ASPA, COSCAP

39. SMS Future state Safety Culture

40. Safety Management System Safety Culture Sustainable development of our most important asset - people Support and understand people issues – Human Factors Temper our expectation of defined results Empathy, empowerment and understanding will deliver sustainable team work Continual improvement Trust and Integrity

42. Thank you “our name say’s it all”