1. Safety IATA Operational Safety Audit (IOSA) Presentation to IFALDA Toronto, Canada May 7 2002 Dr. Allan Rossmore Professor of Aviation Studies Eastern Airlines Dispatcher Attorney at Law 1

2. Safety IATA Mission “To represent and serve the airline industry” 3

3. Safety IATA Safety Goal “Lead the global airline efforts to achieve a continuous improvement in safety’’ 3

4. Safety

5. IATA Safety Strategy  IOSA is being developed as part of the IATA Safety Strategy 2000+  Applicable Strategy elements  Coordinate and integrate IATA resources with industry  Promote IATA Standards on practices and equipment that improve safety  Reinforce the role of the airline CEO for safety accountability 6

6. Safety The Problem  Today’s “audit frenzy”  Redundant, overlapping audits  No common standards  No defined auditor qualifications  Uneven results  No sharing of audits  Inefficient use of resources 7

7. Safety The Challenge  Create one audit program everyone can accept  Establish international operational standards  Develop auditor qualifications and standardized audit procedures  Accredit audit organizations 8

8. Safety Project Goal Formulate and implement IOSA as an internationally recognized evaluation system by which the level of competence and reliability of an airline to deliver a safe operation and manage attendant risks may be assessed 9

9. Safety Audit Application  IOSA will not add to, but will reduce the number of audits  IOSA can be applied to all airlines, but will not be imposed  IOSA is an operational audit standard, and is not regulatory  IOSA will have no affect on State regulatory oversight 12

10. Safety IOSA will complement the ICAO Universal Safety Oversight Audit program 13

11. Safety STATES AIRLINES

12. Accreditation  Audit organizations (including IATA) must demonstrate they meet IATA Standards in order to be accredited to conduct IOSA  Only highly experienced quality auditors will be accepted into the IOSA program  IOSA Auditors will be specifically trained and certified according to IATA Standards 16

13. Safety Program Oversight  Program oversight will come through the existing IATA governance scheme 17

14. Safety Project Methodology  IOSA Advisory Group (IAG)  Total of 11 IOSA Task Forces  Overall participation: more than 100 individuals  Airlines, regulators, IFALDA, others  Balanced representation  No dominant influence  Integrate quality principles 18

15. Safety 11 IOSA Task Forces  Operational Standards (7)  Operational Control/Dispatch  Flight Operations  Engineering & Maintenance  Cabin Operations  Ground Operations  Management & Quality  Operational Security 19

16. Safety 11 IOSA Task Forces  Auditor Standards  Sub-group: Auditor Training  Legal Strategy  Accreditation Standards  Data Management 19

17. Safety Operational Control/Dispatch Task Force n Randy Rohan - Delta - Skyteam (Chairman) n Ron Bynum - United - Star (Vice Chairman) n Trevor Aitken - Qantas - One World n Ronald Juica - Lan Chile - One World n Gerald Clifford - IFALDA n Allan Rossmore - IFALDA n Peter Lay - Air Canada n Lionel Fara - Air France - Skyteam n Bob Everest - Emirates

18. Safety Operational Standards  The IOSA Standards incorporate all ICAO SARPS, and also include other selected regulatory requirements and industry best practices  The “Safety Bar” will approximate to acceptable levels that exist today  A well managed airline will be able to meet the IOSA Standards 15

19. Safety Foundation for Standards n ATA Dispatch Standards n ICAO Annex 1 - Personnel Licensing n ICAO Annex 6 - Operation of Aircraft n ICAO Flight Operations Officer/ u Flight Dispatchers Training Manual n DOD QSR Air Carrier Operations Survey n North Atlantic Operations Manual MNPS n Best Industry Business Practices

20. Safety Operational Control/Dispatch Standards n Standards developed for:  Management / Administration / General  Hiring / Qualifications / Licensing & Certification  Training / Standards  Manuals / Data Source & Control  Line Operations  Operational Controller/Dispatcher Records  Scheduling

21. Safety Time Lines  February 2001 - YUL  IOSA Project Founded  June 2001 - BRU  Operational task forces established  September 07, 2001 - ATL  Initial meeting of the operational control/dispatch task force in ATL  January 2002 - YUL  Draft of Standards submitted to IAG

22. Safety Time Lines  March 2002 - CDG  Operational Control/Dispatch Standards submitted to IAG  June 2002 - AMS  Auditor guidelines to be submitted to IAG  September 2002 - HKG  Auditor Checklist to be submitted to IAG  Future IAG meeting dates  January 2003 - ATL  March 2003 - SYD

23. Safety Summary  IOSA is a safety initiative  The program will provide the benefits mandated by IATA and the industry  The safety bar of operational control/dispatch will be raised worldwide 22

24. Safety Thank you 23