1. 1 LOSA – A REGULATORS PERSPECTIVE Tim Allen General Manager Airlines Presentation to the LOSA Conference Kuala Lumpur - September 2005

2. 2 NZCAA Small Authority -181 Staff – Three operating Groups - Airlines – GA – The rest Large Area of coverage Advice to Tonga - Samoa - Cook Islands - Nuie NZ CAA Rules – Vanuatu – Mongolia International participation

3. 3 Civil Aviation Act 1990 Regulatory system built on shared responsibility for safety CEO is the participant in the aviation system and is responsible for safe operations. Safety culture will reflect CEOs view

4. 4 The Regulator & LOSA Attended Dublin 2003 conference LOSA – Initial Impression – sensible – practical way of getting that picture of normal operations Cholesterol check for an Airline and Industry Could have regulatory value! New Zealand – small gene pool – similar operators – similar equipment – pilots from similar background Any possible value Bench-marking industry – thought about the value of National LOSA

5. 5 A small industry Mt Cook Airlines Freedom Eagle Air Nelson Air New Zealand JetConnect Pacific Blue Origin Pacific Airwork Airfreight Air Chathams

6. 6 LOSA - What Regulatory Value? Participation in LOSA – implies a mature safety culture Could replace route audits over the period of the LOSA if results are available to the regulator CAA - Can give regulatory credit for LOSA, it is part of the equation of risk management Airline LOSA information – What if the NZCAA could have access? What if the CAA and the airlines could use LOSA to benchmark airlines against each other? A National LOSA?

7. 7 LOSA in NZ Air NZ – involved the CAA CAA involved industry invited Pat Murray to brief CEOs and senior management National LOSA concept was discussed and rejected on good advice – dont run before you can walk! NZCAA position is to support the airlines with the introduction and use of LOSA

8. 8 NZCAA - Monitoring & Risk intervention systems Monitoring Project - Capturing all of the data from audit and other contact with client – Efficiency Project Risk & Intervention Project – Effective targeting of CAA resources based on risk – Effectiveness of methods of intervention LOSA is just a part of the equation of the total knowledge of a client

9. 9 Present System Risk Assessment Profile Changes of type of equipment Changes to senior persons Operational stability Incidents Financial Status Single Pilot IFR – Light Twin Operations Last Audit Quality Evaluation Non-compliance Evaluation

10. 10 Risk Assessment Profile – new lines of data to be incorporated LOSA FOQA Financial performance ratios OTP Training data High Level risk information ALAR programme Maintenance Error Management Programme

11. 11 LOSA – NZCAA where to from here? Encourage our operators to continue with their LOSA programmes In the future when LOSA is just part of daily business for all airlines in NZ - review the merits of National LOSA – Great from a regulators point of view to have a health check of the entire industry