“Integrating the LOSA Relationships ” 3 rd ICAO-IATA LOSA & TEM Conference Captain Chris Kriechbaum Captain Chris

1. “Integrating the LOSA Relationships ”3rd ICAO-IATA LOSA & TEM Conference Captain Chris Kriechbaum Captain Chris Wright Manager Procedure & Capability Development LOSA Manager Air New Zealand Air New Zealand

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

4. BACKGROUND - REGIONALS • Mt Cook (Pt 121) • Established in 1930’s • 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. BACKGROUND • 25 domestic destinations • 22 direct international destinations • A small airline by world standards • No FOQA programme yet • Long involvement with UT PAX ASKs RPKs Pax Rev 11.6m31,984m 22,628m2,755m FY05

6. Air NZ’s 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. BUSINESS RATIONALE FOR L.O.S.A. • Under law – a shared responsibility with NZCAA for Safety • It’s 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. 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. LOSA EXPERIENCES • Generally similar to others • Long term strategy requires an investment in time and resource.

10. THE FUTURE

11. THE FUTURE • Integration of LOSA process into Safety Management System. • Integration with other Operational Integrity data • Major LOSA’s – every 3 - 4 years, using TLC • Mini LOSA’s 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. 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