Safety Through Partnership An Integrated Approach to Safety

Safety Through Partnership • An Integrated Approach to Safety Management

Agenda • Current State – Safety Comparison by Industry – Regulatory Activity • Our Vision – Driving an Evolution in Safety to the Individual • Our Plan – Key Elements • New Developments • Summary 2

Opportunities for Improvement in Air Transport Safety • Aircraft Damage: $4. 2 billion/yr (Flight Safety Foundation) • 3 cancellations/day • 1: 10 injuries/yr (Bureau of Labor Statistics 2006) • 7. 7 per 100 will have a day away from work or restriction (Bureau of Labor Statistics 2006) • 51 fatalities/yr (Bureau of Labor Statistics 2006) We can learn from this! 3

Injury Rate Comparison by Industry Air Transportation Mining 4

The Significance of Human Factors in Aviation Incidents (ground & flight) 100% 90% 80% Human Causes 80% 70% 50% 60% 50% $5. 8 Billion/yr in injury costs 40% 30% 20% 10% 0% Machine Causes 1903 20% Today 5

LEADERSHIP & EXPERTISE SQMS PHILOSOPHY & CULTURE SME List TOOLS T&E MANAGEMENT E-SHEC Safety Culture BBS ERS Safe Working Environment HUMAN FACTORS Documentum METRICS 6

LEADERSHIP PHILOSOPHY STRUCTURE TOOLS EXECUTION Risk Management SQMS** Human Factors Supplier Oversight FOD/Wildlife Management Safety Advocates Safety Expertise & Team Development Culture Development Illinois Urbana. Champaign ERS/E-SHEC/BBS* Injury Review Board Safety Scorecards **SQMS- Safety Quality Management System *E-SHEC=Employee Safety/Health Event Concern *BBS= Behavior Basis Safety Program Documentum 7

2008 Strategy • Help Network - Safety Coordinator Training • Communication Program • Lessons Learned • Proactive Communication • Safety Principles • 5 Dysfunctions of a Team • Customer Contact Plan (MFA) • Survey Scores • Safety Coordinator Meetings • Stanford Tape Series • Safety Expertise • SQMS Integration • Supplier Management • Injury Review Board • BBS Redesign • Safety Scorecard • Standard Work (IRB) • FOD/Wildlife Management • Corrective Action Model • Cost of Poor Safety Metrics • FOA Elimination (Found on Arrival damage) • Centralized Data (Documentum) Performance Focused 8

Safety and Quality Management System (SQMS) 9

Threat & Error Management • Lightning • Manpower & equipment shortages • High winds Mngt / Safety Culture Team/Individual Tools Procedures • New equipment introduction Policies • Icing conditions Recognize Risk Take Action 10

Documentum Safety Publications ARB Findings Training Materials Corporate Safety Metrics Local Server Documentum Vendor Performance Program 24 -Hour Information Access 11

Visibility by Station- Scorecard -Executive visibility -Real-time analysis 12

2007 Performance Data LTI (+10. 6%) OSHA (+5. 1%) A/C Damage (Flat) • Improved visibility • Effective corrective action • Increased partnership 13

Summary: Safety Through Partnership Free Flow of Safety Information “People doing the right thing because it’s the right thing to do” Drive an Evolution in Safety to the Individual Safety Performance = Operational Performance Double digit improvements 14

Integrated-Airline Management Executive Team - Corporate Governance TSA PIRC Customer Supplier Management Safety Performance (Passenger Incident Review Committee) Dangerous Goods OSHA Aircraft Movement Environmental Responsibility Energy Conservation 4 Elements of Corporate Culture: Safety, Quality, Security, “Green” Backup data 15