IATA Operational Safety Audit IOSA

1. Approach IOSA Seminar IATA Operational Safety Audit (IOSA)

3. About the Flight Safety Foundation One of the world�s best aviation safety resources. Flight Safety Foundation is known internationally for providing timely, practical and objective information to FSF members and everyone concerned with the safety of flight. Since its official founding in 1947, Flight Safety Foundation has been a catalyst for the continuous improvement of aviation safety. The Foundation is an independent, nonprofit international organization that provides a neutral forum, where the aviation industry can meet in a noncompetitive environment to identify safety concerns, determine solutions and implement ideas and actions to improve safety.

4. Introduction Section 1

5. Background The airline industry is subject to ever increasing numbers of inspections, reviews and audits. These often overlap in intent and content They have a wide variability of standards (up to now) The industry needs to standardise, harmonise and rationalise these processes

6. Current Process - No Audit Sharing - Multiple Audits per Airline

7. How to Standardise, Harmonise, Rationalise? IATA guided and directed a diverse and highly experienced group of airline audit specialist, which created IOSA � IATA Operational Safety Audit

8. Eligible Carriers IATA Passenger Carriers All IATA member airlines have committed to seek IOSA registration by 1 January 2006 Non-IATA airlines can seek an IOSA audit and registration Cargo airlines cannot (yet) gain IOSA registration

9. IOSA Benefits Section 2

10. Financial Benefits IOSA can replace current multiple code-sharing audits Reduces the number of auditor resources used to conduct audits Reduces the number of auditee resources needed to interface with auditor teams Reduces time required to complete code-sharing processes Registration Fee Waiver�2005

11. Quality Benefits Standardisation of audit depth and quality Standardisation of audit results IOSA registration is a clear statement of an airline�s operational integrity and its ability to manage associated risks

12. IOSA Structure Section 3

13. Principal IOSA Entities 1. IATA Develops standards Keeper of IOSA Registry Accreditation of Audit Organisations (AO) and Endorsed Training Organisations (ETO) Quality oversight of total IOSA Programme

14. IOSA Relationships

15. IOSA Documentation Section 4

16. Manuals IOSA Standards Manual (ISM) Part 1 � IOSA Standards and Recommended Practices (ISARPs) Part 2 � IOSA Guidance Material (IGM) IOSA Checklists The checklists used by IOSA auditors to accomplish audits in accordance with ISM

17. Manuals IOSA Programme Manual (IPM) Contains the standards that govern the total IOSA Programme Applicable to AO (auditors), Operators (auditees) and IATA IOSA Auditor Handbook (IAH) Guidance material for IOSA auditors

18. IOSA Audit Process Section 5

19. IOSA Basic Principle The fundamental IOSA Principle is: 1. Document clearly all processes that operator uses to comply with every required IOSA Standard (and Recommended Practice) 2. Implement all documented processes fully 3. Accomplish each process exactly as documented consistently Remember the principle as: �Say (document) what you do� �Do what you say you do - every time�

20. IOSA Basic Principle This does not stop an operator from modifying processes BUT 1. Ensure process manual and physical process changes occur concurrently 2. Ensure staff fully briefed/trained in revised process but do not commence use of modified process until amended documentation issued

21. How is compliance confirmed? IOSA uses formalised standard checklists Checklists contain IOSA Standards (�shall� items) and Recommended Practices (�should� items) Every required process must be documented Every required process must be implemented This achieves Conformity

22. Audit Scope Corporate Organisation and Management (ORG) Flight Operations (FLT) Operations Control/Flight Dispatch (DSP) Aircraft Engineering & Maintenance (MNT) Cabin Operations (CAB) Aircraft Ground Handling (GRH) Cargo Operations (CGO) Operational Security (SEC)

23. Operator Preparation Obtain ISM and Checklists (from IATA website) and distribute to heads of operational sections Review ISARPs against the operator�s current operational policies and procedures Standards �shall�, Recommended Practices �should� Carry out Gap Analysis using Checklists by requesting AO to accomplish a pre-audit, or by undertaking internally

24. Operator Preparation Rectify every Finding (shall item) found by the Gap Analysis Consider appropriate action for any Observations (should item) found by the Gap Analysis Contact AO and schedule formal IOSA audit

25. AO Audit Process AO Audit Team preparation & logistics planning Conduct Audit Formal Opening Meeting Follow checklists, gather evidence Accomplish Operational Assessments Raise findings and/or observations, as appropriate and advise auditee Formal Closing Meeting

26. AO Audit Process Lead Auditor documents and provides to auditee, all Findings and Observations presented at Closing Meeting (in draft only) IOSA Interim Audit report (IIAR) provided to auditee within 15 business days IIAR includes Corrective Action Record (CAR) documenting all Findings and Observations from the audit

27. AO Audit Process AO and Auditee agree on an acceptable Corrective Action Plan (CAP) within 30 days of Closing Meeting AO follows up to ensure all corrective actions implemented in accordance with CAP AO closes each Finding once acceptable corrective action implemented by auditee and verified by AO AO closes audit once ALL Findings are closed AO creates IOSA Audit Report (IAR)

28. IAR and IOSA Registration Section 6

29. IAR The IAR is the official record of the IOSA audit The IAR is completed by the AO within 15 business days after Audit Closure and submitted to IATA IATA is custodian of all IAR and the AO retains a copy for two years The IAR is the sole and exclusive property of the auditee

30. IOSA Registry Once IAR received, IATA formally adds the auditee to the IOSA Registry The auditee is retained on the registry for two years by which time a new IOSA audit will be accomplished

31. Audit Sharing A primary purpose of IOSA auditing is to allow audit sharing to eliminate redundancy of audits An interested party makes a written request with specific reasons to IATA for access to the IAR of the auditee IATA provides the IAR only after the auditee has authorised access

32. Audit Sharing