PART

TRANSMILE AIR SAFETY MANAGEMENT SYSTEM MANUAL SCOPE

TRANSMILE AIR SERVICES

SDN BHDTRANSMILE AIR

SAFETY MANAGEMENT SYSTEM

MANUAL

Equate Business Performance to Safety Performance

PART 2SCOPE OF SAFETY MANAGEMENT SYSTEMSAFETY MANAGEMENT SYSTEMBACKGROUND

The modern aviation system is characterized by increasingly diverse and complex networks of business and governmental organizations. The rapidly changing aviation operational environment requires these organizations to adapt continuously to maintain their viability and relevance. The aviation system is also becoming increasingly global. Few business entity markets, supplier networks and operations are confined entirely within the boundaries of a single country. These characteristics of complexity, diversity and change add to the importance of sound management of functions that are essential to safe operations.

While safety efforts in the aviation system have been highly successful to date, the rapid increase in the volume and variety of aviation operations push the limitations of current safety strategies and practices. Along with this trend is the problem of decreasing resources to be applied by both business and government organizations. These processes have forced a fresh look at the safety strategies of the future.The best approach to problems of increased aviation activity and decreased resources is to bring safety efforts into the normal management framework of aviation operations. Just as businesses and government organizations must these factors effectively to accomplish their missions or to maintain business viability, they must likewise provide sound management of safety.

This innovation in aviation system safety is best termed Safety Management System a term indicating that safety efforts are most effective when made part of business and government management of operations and oversight.

INTRODUCTION In Transmile Air Services, safety has always been the overriding consideration in the conduct of all the companys aviation activities. Safety is defined as the state in which the risk of harm to persons or property damage is reduced to, and maintained at or below, an acceptable level through a continuing process of hazard identification and risk management.

Due to the nature of our industry, the total elimination of accidents or serious incidents is unachievable. No human endeavour or human-made system can be free from risk and error, and failures will be expected to occur in spite of the most accomplished prevention efforts. The TML safety management system (SMS), therefore, seek to understand and control such risks and errors. The study of accident causation shall focus on organisational processes, latent conditions, workplace conditions, human factors, adequacy of defenses as well as active failures. TMLs SMS also seek to enhance the organisational approach to managing a safe and successful aviation operation.

SAFETY MANAGEMENT SYSTEM (SMS) In TML, safety management starts from senior management, and the effects on safety are be examined at all levels of the organisation. The Safety Management System (SMS) is a systematic, explicit and proactive process for managing safety within TML that integrates operations and technical systems with financial and human resource management to achieve safe operations with as low as reasonably practicable risk. It is systematic in that safety management activities are carried out in accordance with a pre-determined plan, and applied in a consistent manner throughout the organisation. It is proactive by taking an approach that emphasizes prevention, through hazards identification and risk control and mitigation measures, before events that affect safety occur. It is also explicit, in that all safety management activities are documented, visible and performed as an essential component of management activities. People, procedures, practices and technology needed to monitor and improve the safety of the aviation transportation system.Business Benefits of an SMS

The SMS incorporates internal evaluation and quality assurance concepts that can result in more structured management and continuous improvement of operational processes. The SMS outlined in this manual is designed to allow integration of safety efforts into the operators business model and to integrate other systems such as quality, occupational safety and environmental control systems that operators might already have or might be considering.The primary reason for the introduction of SMS in TML is to improve existing levels of the organizations safety, i.e. reduction in aircraft and ground accidents and incidents, through a systematic process of hazard and risk management. An effective safety management system will enable TML to reap the following additional benefits: Minimise direct and indirect costs resulting from accidents and incidents

Gain safety recognition from customers

Create a positive, reliable and generative organisational culture

Reduction in insurance rate

Exceed regulatory requirements with simultaneous bottom line and productivity gains

Proof of due diligence in event of legal or regulatory safety enquiries

Improved working environment resulting in better productivity and morale

Synergy in the safety related processes and functions within the organisationSafety Management involves judgement, assigning priorities

and making decisionsREGULATORY REQUIREMENTS FOR SAFETY MANAGEMENT SYSTEM

Annex 6 to the Convention on International Civil Aviation mandated for the implementation of safety management systems by air operators and maintenance organisations by January 2009. The DCAM has adopted a two-phased SMS implementation plan. All air operators are encouraged to initiate the implementation of their Safety Management System from June until December 2008. During this period, DCA will continue to provide guidance where appropriate as well as assess each organisations level of SMS implementation. However, deficiencies will not be recorded as findings. SMS will be mandated on 1 January 2009, and by then all AMOs and AOC Holders must have in place a functioning SMS in order to meet the requirements relevant to the DCA approval. With effect from 1 June 2008, all DCA AMOs and Flight Operations are recommended to initiate the implementation of a safety management system. Such a system should include, as a minimum, the following elements:

(a) a safety policy on which the system is based; (b) clearly defined lines of safety accountability for all members of senior management, including a direct accountability for safety on the part of the Accountable Manager; (c) setting of safety objectives and goals;

(d) documentation of all SMS components, procedures and activities including their relevant integration;

(e) an emergency response plan;

(f) hazard identification and risk management process;

(g) audit and continuous improvement of the SMS;

(h) safety performance monitoring and an acceptable level of safety;

(i) management of change;

(j) personnel SMS training, communication and promotion of SMS outcomes.

AMOs and Flight Operations are free to build their SMS to the complexity of their operations. Organisations have a wide range of procedural options for compliance, and are encouraged to identify the best method of compliance to meet their individual circumstances. The key to a successful SMS is to develop and grow the SMS based on the organisations needs and customized to its operations. SMS implementation will be incorporated as a mandatory requirement by TML by 1 January 2009.

CORPORATE COMMITMENT FOR SAFETY BY THE ACCOUNTABLE MANAGERSafety excellence will be a component of our mission at Transmile Air Services Sdn Bhd.

The Senior management and all employees of TAS are responsible for safety performance. TAS shall adopt an organized approach in managing safety, including the necessary organizational structures, accountabilities, policies and procedures. The Senior management of Transmile Air shall be fully involved and committed to the SMS in place and uphold the safety policy and objectives, the implementation plan and operational safety standards.All employees of TAS shall accept responsibility and accountability in developing safety standards and procedures. We shall openly communicate information about safety incidents and will share the lessons learned with others. All employees shall be concerned for the safety of others in our organization.

The safety policy shall enjoy the commitment and involvement of all staff; aligns with other operational policies; provides direction for implementing the policy and states the responsibilities and accountabilities for directors, managers and employees. This policy shall be reflected in the actions and decisions of all staff and communicated to them effectively. The safety policy shall be reviewed periodically.

The management shall ensure appropriate resources are allocated and commit those resources to correct hazards posing unacceptable risks as well as the safety programmes. The management shall also promotes a positive safety culture whereby personnel are trained for their safety responsibilities and that safety is a shared responsibility.

The Safety Management Department is responsible to provide the management and administration of the company Safety Management System.

This exposition defines the TAS SMS organization and procedures upon which the Department of Civil Aviation of Malaysia (DCAM) approval is based. These procedures are approved and issued under the executive authority of the undersigned and must be adhered to where applicable, when work and/ or orders are being progressed under the terms of the DCAM approval and the company policy.

The procedures and guidelines laid down in this manual do not override the requirement for compliance to the Malaysian Civil Aviation Regulations (MCAR), the Airworthiness Notices (AN) and the Aeronautical Information Circulars (AIC) for the time being in force, or any new or amended requirements as published by the DCAM from time to time.Signed: ___________________ Signed: ______________________ Signed: __________________________Managing Director/

General Manager General Manager

Safety Accountable manager Del. Accountable manager Del. Accountable Manager

Transmile Air Services Sdn Bhd Transmile Air Services(Engineering) Transmile Air Services(Flight Operations)Date:

Date:

Date:Note: The signed page of this corporate commitment is retained in the Master Copy. SMS SAFETY REVIEW BOARD (SRB)

The SMS Safety Review Board (SRB) is a high level forum to address and review company safety policies/objectives related to the organization, aircraft operations and maintenance. SRC ensures the active involvement of the senior management of the organization in the SMS.

The SRB meeting is chaired by the Accountable Manager. This meeting is held twice a Year.

The SMS Review Board shall comprise senior management staff and representatives from all key departments of TAS as follows:

DEPARTMENT

REPRESENTATIVENAME

Accountable Manager/

Managing Directors Office

Managing Director

Liu Tai ShinCorporate Safety

Corporate Safety Manager (CSM)Tba

Secretary, SRBFinance

Chief Financial Officer

Kam Wai PengHuman Resource

Head Group Human ResourceLiu Tai ShinFlight Operations

General Manager, Flt OpsCapt. Krishnasamy

Sec., Flight Ops Safety Manager Capt. NasserEngineering

General Manager, Engineering Arthur Lee Siew Wah

Sec., Engineering Safety Manager Abdollah A. RahmanThe CSM through his safety office shall coordinate activities and provide assistance to the SRB and any sub-committees, where applicable.The SRB is the natural forum for the cross-pollination of ideas and for assessing safety performance from a system perspective and provides a better interdepartmental coordination. Inputs for safety issues will be from a variety of different fields.

The SRB shall make recommendations for action by the responsible managers.

The SRB will determine safety policy in Transmile Air Services. The SRB together with MRC will meet with DCAM on annual basis.SMS SAFETY ACTION GROUP (SAG) In TML, Safety Action Groups (SAGs) shall be established in the functional areas, currently being the Flight Operations and Engineering divisions. Within these Corporate SAG, each division shall establish its divisional SAG, the Engineering SAG (E-SAG) and the Flight Operations SAG (F-SAG). AccountabilityThe SAGs are responsible to the Accountable Divisional Manager (General Managers), who is also the member of SRB. Each SAG is chaired by the divisional General Manager, being the safety accountable managers for the division, and is responsible for that divisions contribution to development and maintenance of the organisations Engineering and Flight Safety Programmes.In the absence of Safety Accountable Manager,SME/SMF will asume the responsibility.MembershipSAG membership shall be drawn from managers and controllers from within the appropriate functional area of each division. The Divisional Safety Manager (SME/SMF) will be responsible to their respective divisional SAGs. Terms of ReferenceAs a minimum each SAG is responsible for the following: to oversee operational safety within the divisions functional area

to ensure that any necessary corrective action is taken in a timely manner

to report to and accept strategic direction from the Corporate Safety Review Board.

This shall be done by:

ensuring that hazard identifications and risk assessments are carried out as appropriate with such involvement of staff as may be necessary to build up safety awareness; ensuring that satisfactory arrangements exist for safety data capture and actioning employee feedback; ensuring that suitable safety performance indicators are developed and regularly reviewed for the functional area; ensuring that the mandatory Safety Audit Programme is so operated as to maximise its direct contribution to safety performance and that full assistance is afforded to the corporate safety department in the event of a requirement to carry out a safety audit or review of any aspect of the functional area; convening of such meetings or briefings as may be necessary to ensure that effective opportunities are available for all employees to participate fully in management for safety ensuring that shortfalls in human performance which are found to have contributed to safety events are dealt with in such a manner that no avoidable indirect detriment is caused to the contribution which the workforce must make to the required culture of safety as a priority; ensuring that adequate investigation of safety events/issues takes place and that safety reviews are then conducted and any actions arising tracked to completion

ensuring that appropriate safety, emergency and technical training of personnel is carried out to meet or exceed minimum regulatory requirements

reviewing incident, accident and safety information received from other operators, manufacturers and Airworthiness Authorities, and the dissemination of appropriate information to staff through quarterly newsletter. ensuring that aircraft operational safety actions interface adequately with workplace occupational safety so that the latter are compatible.

The focus of the committee shall be on action, as opposed to dialogue. The role of the SAG committee shall include to:a) act as a source of expertise and advice on safety matters to senior management;b) review the progress on identified hazards and actions taken following accidents/incidents;c) make safety recommendations to address safety hazards;d) review internal safety audit reports;e) review and approve the audit response and the actions taken;f) encourage lateral thinking about safety issues;g) help identify hazards and defences; andh) prepare and review safety reports to be presented to the Divisional Accountable Manager (GMs).

ENGINEERING SAFETY ACTION GROUP (ESAG)DEPARTMENT

REPRESENTATIVENAME

Engineering SMS Accountable Manager General Manager Engineering Arthur Lee Siew WahSecretary, ESAG

Safety Manager EngineeringAbdollah A RahmanEngineering Quality Assurance

Manager Quality AssuranceZakaria Ismail

Engineering Maintenance

Maintenance Manager

Khoo Cheng EngEngineering Maint. Control CentreMCC Coordinator

(General Manager, Engg) Arthur Lee Siew WahEngineering Maintenance PlanningManager Maint. Planning James Quah

Engineering Technical Services

Manager Technical ServicesAhmad IrwanEngineering Spares

Senior Manager Engg SparesFrank Loo

Engineering Finance

Manager Engg Finance

Lim Keng Yew

The SME through his engineering safety office shall coordinate activities and provide assistance to the SAG and any sub-committees, where applicable.FLIGHT OPERATIONS SAFETY ACTION GROUP (FSAG) DEPARTMENT

REPRESENTATIVE

NAME

Flight Operations

SMS Accountable Manager General Manager Flight Operations Capt Krishnasamy

Secretary, FSAG

Manager, Safety & SecurityCapt Mohamad Nasser

Narrow Body Aircraft FleetChief Pilot Narrow Body Capt Abdul Mues

TML Operations Control Centre Manager Flight OperationsAnton Alex

Ground Handling ServicesManager GHSKhairuddin WahabAirline OperationsAirlines Operations Manager PalaramanTraining & StandardsChief Pilot T & S Capt. Syed Zul

Flight Operations FinanceManager Finance Lim Keng YewSMS SAFETY WORKING GROUP (SWG)

SWG is a safety working group of functional departments within a division and generally comprises of managers, controllers and section heads, administrators, LAEs, technicians and supervisor.Accountability

The SWGs are responsible to the departmental SAG, the membership of which includes the relevant departmental heads. Each SWG is chaired by the departmental/section heads, being the SMS Action Group Accountable Managers for the department/section and is responsible for that departments/sections contribution to development and maintenance of the divisions SMS programmes.MembershipSWG membership shall be drawn from managers, supervisors and staff from within the appropriate functional area of each department/section within a division. The Divisional Safety Manager (ESM/FSM)shall attend each SWG primarily to function as an independent facilitator/observer.

Terms of ReferenceAs a minimum each SWG is responsible for the following:

to oversee operational safety within the departments/sections functional area

to ensure that any necessary corrective action is taken in a timely manner

to report to and accept strategic direction from the Divisional Safety Action Group.

This shall be done by:

performing hazard identifications and risk assessments as appropriate with such involvement of staff as may be necessary to build up safety awareness;

capturing safety data and actioning employee feedbacks;

reviewing the safety performance indicators for the functional area;

operating the internal Safety Audit Programme and assisting is afforded to the divisional safety department in the event of a requirement to carry out a safety audit or review of any aspect of the functional area;

convening of meetings or briefings as may be necessary to ensure that effective opportunities are available for all employees to participate fully in management for safety. dealing with shortfalls in human performance which are found to have contributed to safety events in such a manner that no avoidable indirect detriment is caused to the contribution which the workforce must make to the required culture of safety as a priority;

investigating safety events/issues that takes place and that safety reviews are then conducted and any actions arising tracked to completion

training (appropriate safety, emergency and technical training) of personnel to meet or exceed minimum regulatory requirements

TML CORPORATE SMS ORGANIZATION CHART(SAFETY REVIEW BOARD - SRB)

ENGINEERING SMS ORGANIZATION CHART

Reporting link to SRB trough CSMFLIGHT OPERATIONS SMS ORGANIZATION CHART

Reporting link to SRB through CSMTERMS OF REFERENCE

TERMS OF REFERENCE FOR SMS MANAGEMENT PERSONNEL.

Title:MANAGING DIRECTOR (ACCOUNTABLE MANAGER)

Safety Accountable Manager

Chairman, TML SMS Safety Review Board (SRB)

Reports to:Board of Directors TML

Safety

Accountability:The Managing Director is accountable to the DCAM and TML Board of Directors for the safe management of the services provided by TML.

Safety

Responsibility:In discharging this accountability, the MD is responsible for:

Authorizing a Safety Policy that indicates the TMLs safety objectives and its commitment to safety; Ensuring a Safety Management System is implemented at TML;

Assuming the leadership role to ensure commitment throughout the organization, particularly at senior management level, to the safety management policy intent and safety management system requirements;

Ensuring that TML executives and staff are aware of safety guidelines and held accountable for their safety performance;

Ensuring that TMLs safety management system and operational performance are evaluated for effectiveness on a regular basis; and

Chairs the Safety Review Board meetings.

Financial and Human resources allocation for SMS

To review SMS Audit/ Assessment report submitted by CSM

TERMS OF REFERENCE FOR SMS MANAGEMENT PERSONNEL.

Title:CORPORATE SMS MANAGER

Secretary, SMS Safety Review Board (SRB)

Reports to:MD/Safety Accountable Manager

Function:Serve as the focal point for the development, implementation and maintenance of an effective Safety Management System of TML and shall be the main contact with the regulatory authority for safety issues.

Safety

Accountability:The Corporate Safety Manager is accountable to the Managing Director for safety management of TML operations and services by: Providing advice and assurance relating to safety issues and performance; internal, external and international safety initiatives and requirements; Maintenance of the corporate safety policy and Safety Management System; Establishing the corporate safety standards; Establishing a system for safety management education and safety awareness for TML; Establishing a corporate safety audit and surveillance system; Effective interface with the Director General of Civil Aviation Department Malaysia regarding safety matters; Establishing industry liaison on safety matters; and Establishing safety relations with international bodies including the ICAO.Safety

Responsibility:In discharging these accountabilities, the CSM is responsible for:

Developing and maintaining a TML corporate safety management policy; Establishing and maintaining a safety management system including arrangement for identifying, reporting, tracking and correcting safety issues and for the initiation of preventive action where necessary; Establishing adequate corporate safety guidelines and publishing them to users; Undertaking safety audits of all operational and maintenance units and corporate aspects of safety management; Undertaking ongoing review of the corporate safety management system to evaluate its effectiveness and ensuring that improvements are made where required; Overseeing the performance of the TML safety management activities and providing advice on potential improvements to safety performance; Reviewing and reporting on compliance with regulatory safety management policies, plans, systems and procedures and regulatory arrangements and standards; ensuring safety issues are reported in a timely manner to the Accountable Manager and SRB; Designing, developing and managing an effective corporate audit programme directed towards the highest risk exposure to the safe operation of TML; Designing, developing and managing an effective corporate safety surveillance programme;

Ensuring that TML Corporate Safety Department staff members are aware of and held accountable for their safety performance; Ensuring that TML Corporate Safety Department staff members are trained, qualified and competent to discharge their safety related obligations; Developing and promoting safety management training across TML; and Ongoing review of the interface between TML and DCAM, and ensuring improvements are made when required. Organizing Safety promotion, seminars and safety campaign.

.

TERMS OF REFERENCE FOR SMS MANAGEMENT PERSONNEL.

Title:CHIEF FINANCIAL CONTROLLER (CFC)Reports to:MD/Safety Accountable Manager

TML SMS Safety Review Board (SRB)

Safety

Accountability:The Chief Financial Controller is accountable to the Managing Director for effective management of the financial resources and timely availability of funds to meet all requirements essential for ensuring operational safety of TML.

Safety

Responsibility:In discharging this accountability, the CFC is responsible for:

Ensuring that in exercising his/her powers and performing its functions, the finance and commercial divisions of TML regards aviation safety as an important consideration;

Assuming the leadership role to ensure commitment throughout the Finance Division to the safety management policy intent and safety management system requirements;

Ensuring that all managers and staff reporting to him/her are aware of and held accountable for their safety performance;

Ensuring the provision of TML financial functions are conducted in accordance with the relevant government, industry and international standards and regulations;

Establishing the appropriate controls over financial activities to ensure the safety of TML is not compromised by changes to the financial systems;

Ensuring the provisions of adequately trained and competent manpower within the Finance Division to ensure that financial activities do not compromise the delivery of a safe TML services by the service delivery units; and

Ensuring effective liaison is conducted between the Finance Division and other TML Divisions, departments & sections, and relevant external organizations to ensure that the safety aspects for any change involving the Finance Division are fully considered before the change is implemented.

Allocation of funds for SMS programme and activities

TERMS OF REFERENCE FOR SMS MANAGEMENT PERSONNEL.

Title:HEAD GROUP HUMAN RESOURCE & ADMINReports to:MD/Safety Accountable Manager

TML SMS Safety Review Board (SRB)

Safety

Accountability:The Head Human Resource & Admin is accountable to the Managing Director for supporting operational safety management through: Developing personnel policies, personnel management and placement of personnel most suited for the task and having the correct attitude towards operational safety;

Career planning and management of performance appraisal records taking into consideration each employees safety track record;

Creation and review of manpower requirements (recruitment, training and counselling) in keeping with TMLs overall Safety Performance Goals; and

Implementation of aviation safety related government policies with respect to general administration matters like restrictions on duty hours etc.

Safety

Responsibility:In discharging these accountabilities, the HRM is responsible for:

Ensuring that safety considerations are given the foremost priority in decisions involving personnel management;

Ensuring the application of the explicit safety management policy and procedures in accordance with TMLs SMS within the division;

Overseeing the safety and operational performance of the division;

Ensuring that any safety issues are reported in a timely manner to the Corporate Safety Department;

Ensuring that all the divisions executives are made aware of and held accountable for their safety performance;

Ensuring that all the divisions executives and and staff are trained, qualified and competent to discharge their safety related obligations; and

Ensuring that management of human resources is appropriate to facilitate safe operations. TERMS OF REFERENCE FOR SMS MANAGEMENT PERSONNEL.

Title:GENERAL MANAGERS (ENGINEERING/FLIGHT OPERATIONS)

Delegated Accountable Managers TML

Reports to:MD/Safety Accountable Manager

TML SMS Safety Review Board (SRB)

Safety

Accountability:The General Manager (Engineering) and the General Manager (Flight Operations) are accountable to the Managing Director and SRB for the safe management of TMLs Engineering and Flight Operations division respectively and the services provided by their divisions.

Safety

Responsibility:In discharging these accountabilities, the General Managers are responsible for:

Ensuring the adherence of the corporate Safety Policy that indicates the TMLs safety objectives and its commitment to safety;

Ensuring a Safety Management System is implemented at his division;

Assuming the leadership role to ensure commitment throughout the division, particularly at the department/section head level, to the safety management policy intent and safety management system requirements;

Ensuring that the divisions executives and staff are aware of safety guidelines and held accountable for their safety performance;

Ensuring that the divisions safety management system and operational performance are evaluated for effectiveness on a regular basis; and

Chairs the divisions Safety Action Groups meetings.

TERMS OF REFERENCE FOR SMS MANAGEMENT PERSONNEL.

Title

:SMS MANAGER, ENGINEERING (SME)

SMS MANAGER, FLIGHT OPERATIONS (SMF)Function:Serve as the focal point for the development and maintenance of an effective Safety Management System within the TML divisions and shall be the main point of contact with the Corporate Safety Manager for safety issues

Reports to:General Manager (Delegated Accountable Manager)

Flight Operations

Engineering

Safety

Accountability:SME/SMF is accountable to the General Manager of the respective division for:

Providing advice and assurance relating to safety issues and performance; internal, external and international safety initiatives and requirements; Maintenance of the divisions safety policy and safety management system; Establishing the divisions safety standards; Establishing a system for safety management education and safety awareness for the respective division; Establishing a safety audit and surveillance system; Effective interface with the Director of Airworthiness/Flight Operations of the Department of Civil Aviation Malaysia regarding safety matters; and Establishing industry liaison on safety matters.

Safety

Responsibility:In discharging these accountabilities, the SME/SMF is responsible (for his/her respective division) for:

Upholding and maintaining TML safety management policy; Establishing and maintaining the arrangement for identifying, reporting, tracking and correcting safety issues and for the initiation of preventive action where necessary; Establishing adequate safety guidelines and publishing them to all personnel; Undertaking safety audits of the operational and maintenance units and corporate aspects of safety management; Undertaking ongoing review of the safety management system to evaluate its effectiveness and ensuring that improvements are made where required; Overseeing the performance of the safety management activities and providing advice on potential improvements to safety performance; Reviewing and reporting on compliance with corporate safety management policies, plans, systems and procedures and regulatory arrangements and standards; ensuring safety issues are reported in a timely manner to the respective General Managers; Designing, developing and managing an effective divisional audit programme directed towards the highest risk exposure to the safe operation of the division;

Designing, developing and managing an effective safety surveillance program; Ensuring that Departmental Managers/Heads of Department (HOD) and their staff are aware of and held accountable for their safety performance; Ensuring each departments staff are trained, qualified and competent to discharge their safety related obligations; Developing and promoting safety management training across the division and its departments/sections; and Ongoing review of the interface between divisions of TML and DCAM, and ensuring improvements are made biannually through Management Review Council(MRC) that involved the top management of the company and Depart Civil Aviation Malaysia(DCAM) Fully responsible in maintaining and updating SMS Manual.

Chairing SAG meeting in the absence of Flight Operations/Engineering delegated Accountable Manager.TERMS OF REFERENCE FOR SMS MANAGEMENT PERSONNELTitle

:DEPARTMENTS/SECTIONS SAFETY COORDINATOR (DSC)

Function:Serve as the coordinator for each SWG and team leader for each SWG.

Reports to: Departmental Heads (SAG) Safety

Accountability:DSC is accountable to the Departmental Head of the respective division to provide services and facilities, for customers and stakeholders, for the purpose of safety, regularity and efficiency of the respective operations in TML:

Safety

Responsibility:In discharging these accountabilities, the DSC is responsible (for his/her respective department/section) for:

Ensuring that safety considerations are given the foremost priority; Ensuring the application of the explicit safety management policy and procedures in accordance with TMLs Safety Management System;

Ensuring acceptance and overview of any residual risks or hazards, and their associated controls, that are identified within the system, in accordance with the procedures contained in TMLs SMS Manual;

Overseeing the departments/sections safety and operational performance of the daily operations at TML.

Ensuring that safety issues are reported in a timely manner to the TMS Safety Department through the respective DSM.

Ensuring that all the departments/sections executive and staff are aware of, and held accountable for, their safety performance;

Ensuring that all executives and staff reporting to him are trained, qualified and competent to discharge their safety related obligations;

Ensuring that fitness for service, including any necessary safety assessment, has been declared and accepted by the responsible authority, in relation to the development of all plans, policies, procedures, processes and systems at TML; and

Ensuring that management of human resources is appropriate to facilitate safe operations.

TERMS OF REFERENCE FOR ALL TML PERSONNELFunction:To perform and carry out his/her part in TML to ensure full and successful implementation of a Safety Management System to in an organized approach to managing safety through identification of hazards, taking remedial actions necessary to mitigate the risks/hazards and to provide continuous monitoring and regular assessment of the safety level achieved.Reports to: Respective superior in their respective department/section Safety

Responsibility:All TML personnel have the following safety responsibilities: To comply with the relevant safety requirements and procedures outlined in:

TMLs Safety Management System Manual (SMM) and any Supplementary Manuals;

Other applicable TML and departmental manuals; and

Other duly authorized Corporate Manuals, Instructions and Notices.

To apply system safety measures as required by safety management procedures and instructions;

To advise the respective Safety Heads or officers of any safety occurrence or system failure and to identify and report any situation of potential risk or concern affecting system safety via one of the following means:

Report directly to respective safety officer or their supervisor;

Via safety team meetings;

Submitting either an incident, event or confidential report through the MERES/MOR/PIREPS/CHIRPS/Approved Reporting Forms or any other means as necessary;

Supporting safety audits as and when they occur; and

Supporting safety investigations as and when they occur.SAFETY MANAGEMENT ADMINISTRATIVE OFFICES1.General

The Safety Management offices are located where TASs operational personnel can have ready access. The offices serve as a focal point for safety-related activities and act as repository for safety reports and information. The offices also provide expertise on safety management to line managers. There will be ESM/FSM officers for each division.2.Safety office functionsThe offices of Safety Management Department shall operate to fulfil TAS corporate safety functions of:2.1

advising senior management on safety-related matters setting safety policy; defining responsibilities and accountabilities for safety; establishing an effective corporate SMS; recommending resource allocations in support of safety initiatives; disseminating public communications on safety issues; and organizing emergency response planning.2.2 assisting line managers in: assessing identified risks; and selecting the most appropriate risk mitigation measures for those risks deemed unacceptable2.3 overseeing hazard identification systems: occurrence investigations; incident reporting systems; and data analysis programmes.2.4 managing safety databases; conducting safety analyses: trend monitoring; and safety studies.2.5 providing training on safety management methods;2.6 coordinating safety committees;2.7 promoting safety by:

sustaining awareness and understanding of the organizations safety management processes across all operational areas;

disseminating safety lessons in-house; and

exchanging safety information with external agencies and similar operations.2.8monitoring safety performance measurement by:

conducting safety surveys; and

providing guidance on safety oversight.2.9participating in accident and incident investigations.2.10reporting on safety to meet the requirements of:

management (e.g. annual/quarterly review of safety trends and identification of unresolved safety issues); and

the Department of Civil Aviation Malaysia.

2.11 Coordinating safety audit by regulatory bodies.2.12Coordinating safety audit with the organization (TML).SCOPE OF SAFETY MANAGEMENT1.HAZARD IDENTIFICATION

Hazard identification process employing reactive and proactive schemes for identification of safety hazards throughout TAS. The scheme shall include:

1.1Voluntary incident reporting - formal procedures for reporting safety occurrences and other unsafe conditions, to supplement the information obtained from mandatory reporting systems. The reporter, without any legal or administrative requirement to do so, submits a voluntary incident report. They have 1.2Safety survey - flexible and cost-effective method for identifying hazards to provide management with an indication of the levels of safety and efficiency within TAS. They may be used to review a particular area of safety concern where hazards appear or are suspected, or as a monitoring tool to confirm that an existing situation is satisfactory. Surveys may be conducted through the use of checklists, questionnaires and interviews. 1.3To determine the underlying hazards in a system, surveys shall be independent of routine inspections by the authority or company management. Surveys completed by operational personnel shall be used to provide important diagnostic information about daily operations. 1.4Operational safety audits - to provide evidence of the level of safety performance being achieved.

1.5Safety assessment - systematically analyse proposed changes to equipment or procedures to identify and mitigate weaknesses before change is implemented.2.RISK MANAGEMENT

2.1Identification, analysis and elimination (and/or mitigation to an acceptable/tolerable level) of hazards identified and their subsequent risks that threaten TAS viability. The management process shall encompass:

2.2Risk Assessment - to provide an analysis of a confirmed safety hazard to assess its potential harm or damage in terms of the probability, severity and the rate of exposure. The methods of assessment may be of quantitative or qualitative, logical or critical analysis.

2.3Risk Mitigation - select appropriate risk mitigation strategies to manage risk to as low as reasonably practicable, balancing them against time, cost and difficulty of taking measures to reduce or eliminate the risk.

3.SAFETY INVESTIGATION AND ANALYSIS

3.1 Safety Investigation - Conduct a process for the purpose of accident prevention by gathering and analysing the information, drawing conclusion and determination of causas and making appropriate safety recommendations. The department shall clearly identify and validate the underlying hazard.

3.2In-house investigation shall make use of various specialist in quality assurance, floght operations, maintenance, etc.

3.3Safety Analysis - Provide a process of organizing facts using specific methods, tools or techniques to assist in deciding what additional facts are needed, ascertain causal and contributary factors and to assist in reaching a valid conclusion.4.PERFORMANCE MONITORING4.1Manage a performance monitoring programs to provide feedback on safety performance to enable evaluation of such system performance and for necessary changes that may be effected. The scope includes:

4.2 Inspection - Involves carrying out informal walk-arounds of all operational areas of TAS. Talking to workers and supervisors, witnessing actual work practices, etc. in a non-structured way or by use of a checklist as a guide to help ensure that parts of the operation are not overlooked.

4.3 Surveys - Surveys of operations and facilities to provide an indication of the levels of safety and efficiency within TAS and also to systematically examine particular organizational elements or the processes used to perform a specific operation either generally or from a particular safety perspective. Surveys are independent of routine inspections by the authority or company management.4.4 Safety Assurance - Defines and establishes TASs quality policy and objectives to ensure TAS has in place those elements necessary to improve efficiency and reduce risks. Safety Assurance ensures that procedures are carried out consistently and in compliance with applicable requirements, that problems are identified and resolved, and that TAS continuously reviews and improves its procedures, products and services. A Safety Assurance should identify problems and improve procedures in order to meet corporate objectives.4.5Safety Assurance helps ensure that the requisite systemic measures have been taken to meet TAS safety goals. Safety assurance measures help management ensure the necessary standardization of the systems within TAS to reduce the risk of accidents.4.6Safety Assurance contains procedures for monitoring the performance of all aspects of TAS.

4.7Safety Audits - Safety audits provide a means for systematically assessing how well TAS is meeting its safety objectives. The safety audit programme, together with other safety performance monitoring activities, shall provide feedback to managers of individual units and senior management concerning the safety performance of TAS and evidence of the level of safety performance being achieved. Safety auditing provides a means of identifying potential problems before they have an impact on safety.

5.SAFETY PROMOTION & TRAINING

5.1Conduct of all activities to ensure that the staff understand why safety management procedures are being introduced, what safety management means, why particular safety actions are being taken, etc. Safety promotion provides the mechanism through which lessons learned from safety occurrence investigations and other safety-related activities are made available to all affected personnel. It also provides a means of encouraging the development of a positive safety culture and ensuring that, once established, the safety culture is maintained.5.2Establishment of an ongoing programme of safety promotion to ensure that employees benefit from safety lessons learned and continue to understand TASs SMS. Safety promotion shall be linked closely with safety training and the dissemination of safety information. 5.3Publication of safety policies, procedures, newsletters and bulletins and publication of evidence of the commitment of management to safety. The attitudes and actions of management is a significant factor in the promotion of safe work practices and the development of a positive safety culture.

5.4Conduct of safety training to ensure all personnel understand TASs safety philosophy, policies, procedures and practices, and they must understand their roles and responsibilities within that safety management framework. Specific safety management training should be provided for staff who occupy positions with particular safety responsibilities. 5.5 The training programme should ensure that the safety policy and principles of the organization are understood and adhered to by all staff, and that all staff are aware of the safety responsibilities of their positions.

6.EMERGENCY RESPONSE PLANNING

6.1 An emergency is an event that could cause major harm or disruption to an organization.

6.2 Establish, in writing, an emergency plan that outline what should be done after an accident and who is responsible for each action.

6.3 ERP shall provides the basis for a systematic approach to managing TAS affairs in the aftermath of a significant unplanned event, in the worst case, a major accident.

ENGINEERING

GENERAL MANAGER (Del. Accountable Mgr)

ARTHUR LEE S. WAH

MANAGING DIRECTOR

ACCOUNTABLE MANAGER SAFETY

LIU TAI SHIN

FLIGHT OPERATIONS

GENERAL MANAGER

(Del. Accountable Mgr)

CAPT KRISHNASAMY

SMF

SME

GROUP HR & ADMIN

HEAD

FINANCE

CHIEF FINANCIAL CONTROLLER

KAM WAI PENG

CORPORATE

SAFETY MANAGER

TBA

Transmile Air Services

CORPORATE ORGANIZATION STRUCTURE

SMM/TAS001/ISSUE 1

Rev.0Page: 48

Date15/6/2009