1. Integrating the LOSA Relationships 3 rd ICAO-IATA LOSA & TEM Conference Captain Chris KriechbaumCaptain Chris Wright Manager Procedure & Capability DevelopmentLOSA ManagerAir New Zealand

2. 2 WHAT IS THIS NEW ZEALAND PLACE? >Geographically isolated >S/W Pacific >4 Million people >Can do attitude >Long skinny country >Aviation well utilised

3. 3 BACKGROUND – AIR NZ (Mainline) 737-300 X 18 Includes Freedom A320 x 11 Includes Freedom 767-300 X 9 747- 400 X 8 777-200 X 8 On Order

4. 4 BACKGROUND - REGIONALS Mt Cook (Pt 121) Established in 1930s 11 ATR 72 Culturally very different from mainline Air NZ Eagle Airways (Pt 135) 16 Beech 1900D Air Nelson (Pt 121) 17 SAAB 340A Q300 implementation programme – 17 ordered to replace SAABs Other Factors Air NZ Mainline in expansion mode (B777 implementation) – high movement of pilots.

5. 5 BACKGROUND (25 domestic destinations (22 direct international destinations (A small airline by world standards (No FOQA programme yet (Long involvement with UT PAXASKs RPKs Pax Rev 11.6m31,984m 22,628m 2,755m FY05

6. 6 Air NZs LOSA PROGRAMME >1998 - 91 sectors >2001 – Joint audit with Ansett Australia, aborted >2003 – 200 sectors –All fleets, except A320 >2004 – First Regional LOSA @ Mt Cook – ATR 72 operator >Total Union, company management & NZCAA support. >A320 mini-LOSA in planning stage

7. 7 BUSINESS RATIONALE FOR L.O.S.A. >Under law – a shared responsibility with NZCAA for Safety >Its a pro-active approach to safety. >It can be utilised as a risk measurement tool. >LOSA provides facts not opinions - data driven approach. >Verification of training and standards. >Ability to compare internationally. >Provide guidance on future improvements.

8. 8 BUSINESS ADVANTAGES & ISSUES WITH LOSA >Has drawn together the wider NZ industry >Culture change within the airline and the industry >A Change Management tool –Risk - measurement and benchmarking –New aircraft introduction monitoring –Part of improving the Pilot/Management interface >Wider acceptance of TEM principals as a result. >Long term approach adopted, especially in terms of potential financial benefits. >Financial scrutiny of value is intense.

9. 9 LOSA EXPERIENCES Generally similar to others Long term strategy requires an investment in time and resource.

10. 10 THE FUTURE

11. 11 THE FUTURE Integration of LOSA process into Safety Management System. Integration with other Operational Integrity data Major LOSAs – every 3 - 4 years, using TLC Mini LOSAs on specific fleets / routes, ANZ run Provide support to rest of ANZ Group and NZ industry Full involvement of the National Regulator – NZCAA Potentially a Regulatory Tool Reduction in route Audit frequency/costs Reduction in Route Checks – just Captains?

12. 12 CONCLUSIONS LOSA process here to stay in Air N.Z. Group Will be fully integrated into our Safety Management System Continued willingness to share our information with the regulator. Still work to be done to achieve all the benefits Contact Details: chris.kriechbaum@airnz.co.nz chris.wright@airnz.co.nz