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Wed, May 19, 2004

NATA Launches Extensive Risk Management Initiative At AS3

As AS3 got started on what certainly appears to be a record year for this event, NATA president James K. Coyne has announced the launch of a new, industry-wide risk management program with the goal of reducing ground-related accidents by 50 percent over the next five years.

Speaking at the opening General Session of the AS3 tradeshow in Las Vegas, Coyne (below, right) said that the program envisions creating a "zero tolerance" culture where safety on the ground equals that in the air.

"The foundation of our new initiative is the creation of a Safety Management System for FBOs, air charter operators, maintenance and flight-training providers and airline service companies," explained Coyne. "NATA will create a Web-based program whereby any company can securely manage its internal safety reporting and analysis without needing to create its own software."

Simat Helliesen & Eichner (SH&E) has been retained to help NATA develop this initiative. SH&E is a leading consulting firm in the aviation industry with experience carrying out high-level assignments for airports, airlines, repair stations and FBOs worldwide. The firm's experience includes safety, security and operations, auditing and IT-based solutions.

"NATA's vision for a comprehensive fix to many long-standing safety issues is a welcome step for aviation businesses," stated Lou Sorrentino, SH&E vice president and managing director of the firm's Safety, Security and Operations practice. Sorrentino will head the project for SH&E.

One of the first priorities of this program is to create a mechanism for benchmarking accidents and incidents. "The only way to know where we're going, is to know where we've been," Coyne said. For the first time, major aviation insurers have all indicated a willingness to work with the association to create a standard, sanitized database to track claims and benchmark progress. Claims information will be gathered quarterly, and analysis will be disseminated to the industry.

Development of the program is being supported by donations from major stakeholders including United States Aviation Underwriters, Global Aerospace, Phoenix Aviation Managers, W. Brown and Associates, XL Aerospace, ExxonMobil, ConocoPhillips and AirBP Aviation. Other major stakeholders are expected to join the effort shortly, Coyne said.

Harold Clark, USAU chairman, said that "changes in the operating environment demand service providers take a broader risk management approach than in the past, including using the NATA Safety 1st program." These changes include the enactment of GARA, which has transferred certain risks to aircraft maintainers; the aging fleet, the escalation of liability awards, reduced operator limits, more sophisticated insurance, the higher costs of material and labor and complex contractual relationships.

"To further reduce risk, address costs, improve safety and grow profitably, companies need to adopt a comprehensive risk management approach to virtually every aspect of their business," Clark said.

Other first-year objectives include establishing a fee-based safety audit program, developing a self-audit for aviation businesses, producing a risk management seminar for service providers and aircraft operators, creating an education and marketing program to educate the industry on the benefits of a Safety Management System and producing a video program on ramp communications for flight crews and ramp employees.

To oversee the implementation of the program, NATA will establish a Stakeholder Advisory Board to ensure that all aspects of improving ground operations are addressed. In addition, NATA will seek support from the other aviation organizations whose members are impacted by ground operations.

FMI: www.nata.aero

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