1. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June The Europe-US International Aviation Safety Conference 2005 ‘ Aviation Safety Regulation – Setting the Sights for the Future’ Future Vision of Operations Initiatives Mont J. Smith Director, Safety

2. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 2 Contents of the Presentation  The Challenge for Us All  Forecasting Impacts of Future SARPs:  Implications of FAA and EASA Part 129 Regulations:  Regulation of Bizjet, Fractional Ownership, & Microjet Operators:  Avoiding Over-Regulation in a Tenuous Cost- Benefit Environment:

3. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 3 THE CHALLENGE FOR US ALL March 3 rd, 2005: “The institutional and regulatory obstacles we face are significant. We all call on our governments to work with the airlines in addressing them, for the good of the public, the traveling public and, ultimately, our economies.” James C. May, Air Transport Association Ulrich Schulte-Strathaus, Association of European Airlines

4. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 4 Forecasting Impacts of Future SARPs  Lessons should be learned from the current automatic ELT debacle  Future SARPs need thorough analysis before adoption  Can a more optimal “partnering” arrangement be created to assess cost vs. benefit (risk reduction)?

5. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 5 Forecasting Impacts of Future SARPs  Could ICAO adopt EASA/JAA’s Regulatory Impact Assessment (RIA) methodology? ■ Purpose and Intended Effect ■ Options ■ Sectors affected ■ Impacts ■ Consultation ■ Review of Comments ■ Adoption and Publication

6. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 6 Forecasting Impacts of Future SARPs  Could ICAO adopt FAA’s Aviation Rulemaking Advisory Committee (ARAC) approach?

7. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 7 Forecasting Impacts of Future SARPs  U.S. Commercial Aviation Safety Team (CAST)  Could ICAO adopt CAST approach?  A prescribed analysis methodology is used to develop “intervention strategies”  Feasibility is assessed and a plan of action is created  A risk-reduction algorithm is applied

8. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 8 Implications of Part 129 Regulations  Foreign airlines, after receiving traffic rights from the US DOT, require detailed Ops Specs, issued by FAA, in addition to the AOC issued by the national authority legally responsible for oversight.  14USC Part 129 rules on foreign air carriers could likely generate a “retaliatory” regulatory effect

9. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 9 Implications of Part 129 Regulations  US Part 129 largely deals with required onboard technology / equippage  These safety-related requirements are already reasonably oriented toward global harmonization…not a roadblock

10. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 10 Implications of Part 129 Regulations  The Ops Spec portion primarily addresses  airports to be used  Routes to be flown  Procedures in place to avoid airborne collision  Registration and markings signifying compliance  Approval is often time-consuming & inefficient  The safety implications are relatively minimal  Could we borrow a page from the Australia/ New Zealand approach briefed yesterday?

11. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 11 Implications of Part 129 Regulations  Is a higher level of trust, coordination, and verification potentially possible?  Can these few Ops Spec requirements be acquired from the AOC?  Can approval and oversight be delegated downward several levels?  Can compliance be verified in an easier way?  Can the process be incentivized?

12. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 12 Regulation of Bizjet, Fractional Ownership, & Microjet Operators

13. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 13 Regulation of Bizjet, Fractional Ownership, & Microjet Operators  Goal should be “One Level of Safety and Operational Expectation”  Sharing the airspace through government - encouraged development should result in parity  Any oversight shortfall affects the overall system risk

14. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 14 Avoiding Over-Regulation in a Tenuous Cost-Benefit Environment  EASA Long Range Operations (LROPS) rules  ETOPS requirements on 3 and 4 engine aircraft  When operated beyond 180 minutes from an adequate airport  FAA proposed ETOPS rule  Defines “Extended Operations” (all extended-diversion-time aircraft) and “ETOPS alternate” airports to accommodate diversions  Introduces required upgrades

15. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 15 Avoiding Over-Regulation in a Tenuous Cost-Benefit Environment  Is this “a bit too much of a good thing”…or “trying to go too far, too fast?”  Most new-production aircraft intended for this market can leverage the new technology  The cost to retrofit older aircraft for compliance before retirement is too great a financial burden for the industry

16. 2005 Europe/US International Aviation Safety Conference, Cologne 7-9 June 16 Future Vision of Operations Initiatives THANK YOU FOR YOUR KIND ATTENTION AND DISCUSSION.