Regional Perspective

1. Regional Perspective Martin Eran-Tasker Technical Director Association of Asia Pacific Airlines Singapore Aviation Academy 29 – 30 August 2013

2. Overview AAPA Global mobility Asia Pacific Aviation Business conditions Growing demand Info share Closing thoughts

3. AAPA Association of Asia Pacific Airlines • Regional trade association • Members include major international airlines based in Asia Pacific • Open to all scheduled international airlines based in Asia Pacific region • Committed to promoting sustainable growth of the aviation industry serving both passenger and freight needs • Permanent secretariat headquartered in Kuala Lumpur, Malaysia • Representation in Washington and Brussels • Flight Operations Safety WG • Cabin Safety WG Serving the community and always open to new members

4. Aviation: moving the world • Air travel delivers global mobility • 2,900 million passengers • Carries 35% by value of global trade • Wider social and economic benefits • Outstanding safety record Source: ATAG

5. Asia Pacific • Diverse geographic region • Home to more than 4 billion people • 62% of the world’s population • Generates 30% of global GDP • Wide range of income levels • Dynamic economies delivering global growth • Aviation widely recognised as a key contributor to economic and social development • Political diversity remains challenging: need for multilateral cooperation

6. Asia Pacific Aviation US$175 billion revenue US$5.2 billion net profit 705 million passengers 493 million domestic 212 million international 16 million tonnes of cargo > 5000 aircraft Asia Pacific carriers overall market share: 25% of global passenger traffic 40% of global cargo traffic Data: Financials & Traffic: 2012 Estimates Source: Combined AAPA + non-AAPA airlines GMT+7 to GMT+12

7. Growing demand

8. Aspirational Demand for Air Travel Trips per capita Rising incomes, urbanisation, social development GDP per capita US$

9. The growing middle class Source: Airbus

10. Asia Pacific traffic will grow significantly World Traffic by airline domicile (RPK billions) Source: Airbus GMF2012-2031

11. Asia Pacific fleet expansion 2011 airplanes Source: Boeing CMO 2012 - 2031

12. Info Share

13. ICAO ASPAC Region • 40 Contracting States and Administrations • 1,207 commercial airports • 359 airlines • 5,090 aircraft in service representing 25% of Global fleet • Projected to almost triple by 2032 • 40 air navigation service providers • Air transport supports 6.1 million jobs • Aviation Safety high priority • Going forward maintaining status quo can only result in increasing the number of accidents and major incidents

14. US Commercial Aviation Safety Team (CAST) • In 1998 CAST committed to the goal to reduce the commercial aviation fatality rate in the USA by 80% by 2008. • In 2008 CAST reported it had reduced the fatality rate by 83% • CAST success the result of the voluntary collaboration between the FAA and Industry by examining past accident data and developing and implementing Safety Enhancements (SE) • CAST approach now is to be proactive and focus on examining emerging and changing risks to identify prevention strategies based on the analysis from incident data • Greater emphasis on acquiring, sharing and analyzing aviation safety data (FOQA) on a voluntary basis • CAST now committed to the goal of 50% from 2010 to 2025 and working with other government and industry partners

15. Regional activities - COSCAP • Formed under the umbrella of ICAO’s Technical Co-operation Programme (TCP) • Primary purpose to enhance flight safety in the region • Ongoing effort to improve aviation safety in Asia through • Needs assessment • Supporting the establishment of a national safety framework • Sharing of safety practices • Provision of technical assistance and training for capacity building • Implementation of safety enhancement initiatives

16. Regional activities – ICAO APAC RASG/ RAST • RASG grouping of the regions regulators • Established to address and implement regionally the Global Aviation Safety Plan / Global Aviation Safety Roadmap (GASP/GASR). • Focus on ICAO priorities Runway safety, CFIT, LOC • RAST joint regulator/ industry forum developing safety enhancements to address ICAO priorities • Focus on the sharing of data and best practices

17. AAPA FOSWG &CaSWG • Regional industry safety forum open to Asia Pacific International airlines (2X per year) • Data management and analysis • Benchmark airline safety performance • Support capacity building within the region • Promote the sharing of safety data and best practices • Promote the sharing and implementation of best practices to enhance regional safety • Data driven safety priorities: Wild life hazards, Infrastructure deficiencies, runway safety, CFIT, LOC, safety outreach efforts

18. Airline safety compliance approach • Implemented safety, data management and reporting systems to be in compliance with national regulatory requirements that are based on ICAO Annexes (1,6,8,11,13, 14 and now 19) • Reports safety in accordance with national requirements • Tendency towards a reactive approach • Limited data sharing • Reactive response to incidents • SMS requires a proactive/ interactive approach to addressing accident/ incidents • Identifying and understanding the main hazards and risks to the airline operation a challenge

19. You cannot fix what you cannot measure • Safety solutions cannot be fixed in isolation or by directive • It requires the regions regulators and industry to collaborate and cooperate at national and regional level by: • Gathering and analysing all types of safety data • Sharing safety data and the information gained from the analysis • Sharing of best practices, data analysis tools and techniques, data management • Being data rich is not enough if it lacks direction, clear objectives and targets • Assurance of data protection at national and regional level to avoid misuse • Data protection critical, requires regional and global partnerships to realize an effective integrated safety management system.

20. Challenges • Asia Pacific diverse region has varying levels of capability and capacity among regulators and airlines • Joint regulatory and industry consultations/ activities not the norm, although slowly changing • Building “trust” between involved parties (government, regulator, airport, ANSP, airlines, senior management, politicians, unions and the travelling) • Agreeing on common models and methodologies, and criteria for reporting and benchmarking • Identifying an acceptable (independent) gatekeeper • Requires long term investment and commitment in resources • Overcoming, working with the Legal system

21. Closing Thoughts • Aviation is a key part of everyday modern life and drives global economic and social development • Aviation has an outstanding safety record • To realize an effective integrated safety management system requires partnerships based on cooperation and collaboration • Regional safety needs to be inclusive and requires regional thinking and regional solutions • Effective safety management is “data driven” • Safety outcome is key Have the confidence and optimism to share data and best practice in the future

22. www.aapairlines.org Association of Asia Pacific Airlines Unit 27-1, Level 27, Menara Prestige 1 Jalan Pinang 50450 Kuala Lumpur MALAYSIA Tel: +60 3 2162 1888 Fax: +60 3 2162 6888