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                   IATA
                  NEWS RELEASE 
                  
                  2004
                  Safest Year Ever for Air Transport 
                  
                   "2004
                  was the safest year ever for air transport," said
                  Giovanni Bisignani, Director General and CEO of the
                  International Air Transport Association (IATA).
                  "Despite the US$35 billion in accumulated losses
                  since 2001, the industry continues to invest in our
                  number one priority with fantastic
                  results." In
                  2004, the industry-wide hull loss rate declined by
                  10% to 0.78 hull losses per million sectors flown.
                  In real terms the number of accidents increased
                  from 99 in 2003 to 103 in 2004 while global traffic
                  increased in the order of 15%.
                  IATA
                  members significantly outperformed the industry on
                  safety. IATA member airlines account for 94% of
                  scheduled international traffic but were only
                  involved in 39% of hull losses. The hull loss rate
                  for IATA members stood at 0.57 per million
                  sectors. 
                  
                   "Over
                  1.8 billion people traveled safely in 2004.
                  Tragically, however, 428 people lost their lives in
                  commercial aircraft accidents. To put that into
                  perspective, that is a similar number to 1945 when
                  the industry carried only 9 million passengers. Air
                  transport is the safest form of transport but every
                  accident is one too many. We are fully committed to
                  further improvements," said
                  Bisignani. 
                  
                  "While
                  we have made tremendous progress in safety, IATA
                  has an aggressive program to lead the industry to
                  even safer levels. This includes a commitment to
                  reduce the accident rate by a further 25% by 2006,"
                  said Bisignani. 
                  
                  "A
                  pillar of our approach to aviation safety is the
                  IATA Operational Safety Audit (IOSA). This is the
                  industry's first global standard for safety audit
                  and it will become a standard for IATA membership,"
                  said Bisignani. "Air transport is safe. And we are
                  committed to make it even safer. With 100 audits
                  scheduled in 2005, airlines committing to operate
                  in accordance with IOSA standards are making a
                  clear and positive safety
                  statement." 
                  
                   IOSA
                  has won recognition from regulators. At its 35th
                  General Assembly in September 2004, the
                  International Civil Aviation Authority (ICAO)
                  identified the great value of IOSA as a tool to
                  augment and focus the safety oversight activity of
                  States. The U.S. Federal Aviation Administration
                  (FAA) has recognized IOSA as a program that may be
                  used by U.S. carriers to meet their obligation to
                  conduct safety audits of their code share partners.
                  Whereas previously each codeshare required an
                  individual audit, sharing of audit data through the
                  IOSA registry can provide the same quality while
                  eliminating the need for duplicate
                  auditing. 
                  
                  "IATA
                  is not only committed to improving safety, we are
                  investing our resources to help raise the bar
                  industry-wide," said Bisignani. The IOSA Standards
                  manual is available free of charge to all airlines,
                  including those who are not IATA
                  members. 
                  
                  1.
                  Jet aircraft is defined as Western-built jet
                  powered aircraft with a maximum take-off weight of
                  15,000 kg. 
                  
                  2.
                  A Hull loss is defined as an accident in which an
                  aircraft is substantially damaged and is not
                  subsequently repaired for whatever reason including
                  a financial decision of the owner. 
                  
                    
                  
                  Western-built
                  Jet Traffic, Hull Loss & Passenger Fatality
                  Rates 1995-2004 
                  
                  FAA
                  Approves IATA's Airline Safety Audit
                  Programme 
                  
                  GENEVA:
                  The US Federal Aviation Administration's approval
                  today of the IATA Operational Safety Audit (IOSA)
                  programme "is a valuable step in strengthening
                  global safety standards," said Giovanni Bisignani,
                  IATA Director General and CEO. 
                  
                  "The
                  United States and its aviation partners around the
                  world share a commitment to improving global
                  aviation safety. This new audit accreditation
                  programme is an important step toward achieving a
                  single international set of audit standards that
                  will make flying safer," said FAA Administrator
                  Marion C. Blakey. 
                  
                  Many
                  governments, including the US Department of
                  Transportation, require their flag airlines to
                  audit foreign code-share partners.  The FAA's
                  recognition of IOSA
                  [http://www.faa.gov/apa/pr/2004/july04.cfm]
                  permits US carriers to use the programme's
                  accredited audit organisations to comply with the
                  US audit requirement rather than perform an audit
                  themselves.  
                  
                   "IOSA
                  is the world's only airline safety audit programme
                  incorporating globally recognised standards and
                  best practices," Bisignani said.  "IOSA is
                  available to all airlines and will bring great
                  benefits by confirming the thoroughness of
                  operational structures and enhancing code-share
                  opportunities."   
                  
                  Bisignani
                  noted that airlines in the US and elsewhere will be
                  spared performing redundant audits of prospective
                  code-share partners provided those partners hold
                  upstanding IOSA audits, which are valid for two
                  years.  To make IOSA as accessible as possible
                  to all airlines, IATA is absorbing the programme's
                  operating costs in 2004. 
                  
                  "IOSA
                  creates the first global industry benchmark for
                  safety while removing the inefficiency of
                  repetitive auditing," he said.  "Today's
                  announcement is not only an approval but a
                  validation of the joint commitment by FAA and IATA
                  to improving global aviation
                  safety."  
                  
                  Following
                  are highlights of a Q&A on IOSA. 
                  
                  Q:
                  What is the goal of IOSA? 
                  
                  A: To
                  provide a standardized audit programme of the
                  operational management and control systems of an
                  airline that is based on internationally-recognised
                  standards and supported by a rigorous quality
                  assurance process, for the purpose of serving the
                  airline industry in terms of improving worldwide
                  operations and reducing the number of operational
                  audits that are conducted. All airlines (IATA and
                  non-IATA) are welcome to seek an IOSA audit. All
                  IATA member airlines have committed to seek
                  registration as an IOSA Operator by January 1,
                  2006. 
                  
                  Q: 
                  Which operational areas of an airline are audited
                  under the IOSA Programme (i.e. what is the scope of
                  the audit)? 
                  
                  A: IOSA
                  audits the following areas: 
                  
                  · Corporate
                  Organisation & Management 
                  
                  · Flight
                  Operations 
                  
                  · Operational
                  Control/Flight Dispatch 
                  
                  · Aircraft
                  Engineering & Maintenance 
                  
                  · Cabin
                  Operations 
                  
                  · Aircraft
                  Ground Handling 
                  
                  · Cargo
                  Operations 
                  
                  · Operational
                  Security 
                  
                  Q:
                  What are the benefits of IOSA? 
                  
                  A: The
                  audit under IOSA is based on internationally
                  recognized operational standards, and assesses the
                  operational management and control systems of an
                  airline. An airline that has been audited to full
                  conformity with IOSA standards makes a clear
                  positive statement about the integrity of its
                  operations and its ability to manage associated
                  risks. 
                  
                  IOSA
                  &endash; through a system of audit sharing &endash;
                  will reduce the number of operational audits that
                  are conducted throughout the industry. The result
                  will be fewer airline resources dedicated to this
                  function, which in turn means lower costs. IOSA
                  represents operational excellence and for the
                  registered IOSA Operator, there is an enhanced
                  potential for a whole range of shared commercial
                  opportunities (e.g. code-share, wet lease, aircraft
                  leasing, etc). 
                  
                  Q: 
                  What is the general structure of the IOSA
                  Programme? 
                  
                  A: 
                  To ensure integrity, quality, and oversight of the
                  Programme, these are the principal entities of the
                  IOSA Programme and their basic
                  functions: 
                  
                  · IATA
                  &endash; Developer of the Standards, keeper of the
                  IOSA Registry, Accreditation of Audit Organisations
                  and Endorsed Training Organisations, and ongoing
                  Quality oversight of the IOSA Programme 
                  
                  · Audit
                  Organisations &endash; Accredited by IATA, they
                  conduct the IOSA audits 
                  
                  · Endorsed
                  Training Organisation &endash; Accredited by IATA,
                  they train IOSA Auditors 
                  
                  · IOSA
                  Oversight Committee &endash; Comprised of 25
                  Airlines, 10 Regulatory Authorities plus Observers,
                  this committee provides oversight of and guidance
                  to the IOSA Programme. 
                  
                  IATA has
                  an internal quality assurance system that will
                  maintain stringent oversight of all functions that
                  make up the IOSA process. 
                  
                  Q:
                  Who conducts the audits under the IOSA
                  Programme? 
                  
                  A: IATA
                  has accredited Audit Organisations (AOs) to conduct
                  audits on its behalf. For a list of accredited AOs,
                  visit: www.iata.org/iosa/accreditation. The AOs
                  engage experienced aviation auditors that have
                  undergone a stringent training and qualification
                  process and have been approved as IOSA
                  Auditors. 
                  
                  Q:
                  What is the Regulatory Authority involvement in
                  IOSA? 
                  
                  A:
                  Certain key regulatory authorities from around the
                  world have been involved in the development of IOSA
                  from the beginning. IATA recognises the necessity
                  of regulatory acceptance to ensure the future
                  success of the IOSA Programme. Regulators see the
                  benefit of IOSA in being able to enhance and extend
                  their regulatory oversight of both domestic and
                  foreign airlines. 
                  
                  The FAA
                  has been involved in IOSA development from the
                  beginning and is supportive. After extensive
                  investigation and verification, FAA has now fully
                  accepted IOSA. Therefore, US airlines may now
                  submit to FAA code-share audit programmes based
                  upon IOSA. This will bring great benefit both to
                  the US airlines and their many commercial airline
                  partners globally. 
                  
                  Current
                  members of the IOSA Oversight Committee include
                  representatives for the regulatory authorities of
                  Australia (CASA), Canada (Transport Canada), China,
                  European Union, France (DGAC), Scandinavia and the
                  United States (FAA). Many other authorities
                  participate as observers. 
                  
                  Q:
                  What is ICAO's position on IOSA? 
                  
                  A: ICAO
                  has been involved with IOSA from the very
                  beginning, is fully supportive and considers IOSA
                  as fully complementary to the ICAO Universal Safety
                  Oversight Audit programme of states. 
                  
                  Q:
                  What is the IOSA Registry? 
                  
                  A: The
                  Registry is a publicly available list of all
                  current IOSA Operators. An Operator is not added to
                  the Registry until all findings identified in the
                  course of an IOSA audit have been satisfactorily
                  closed, and the operator is in conformity with all
                  IOSA standards. The registry is found on the IATA
                  website www.iata.org/iosa/registry Registration is
                  valid for a period of 24 months from the closing
                  meeting. IATA will provide notification for audit
                  renewal for carriers that are on the IOSA
                  Registry. 
                  
                  -IATA- 
                  
                  Contact
                  Information: 
                  
                  Anthony
                  Concil 
                  
                  Director,
                  Corporate Communications 
                  
                  Tel: 
                  +41 22 770 29 60 
                  
                  Fax: +41
                  22 770 26 41 
                  
                  E-Mail:
                  Corpcomms@iata.org 
                  
                  
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