IOSA Audit Clearance - 2005

The IOSA program is an internationally recognized and accepted evaluation system designed to access
an airline’s operational management and regulates systems within the airline.

PIA met the overall requirements as set forth under IOSA audit. Clearance was given to Marketing, Flight
Operations, Airport Services, Flight Services and Quality assurance resulting in opportunity to enter into
strategic alliance with other airlines such as code sharing with Thai Airways.

SAFA (Safety Assessment of Foreign Aircraft) Issues

- SAFA program was developed by European Civil Aviation and JAA in accordance with the safety
policy developed by The International Civil Aviation Organization (ICAO).
- The International Civil Aviation Organization is a specialized agency of the United Nations. It changes
the principles and techniques of international air navigation and fosters the planning and
development of international air transport to ensure safe and orderly growth
- To maintain the confidence ICAO started its Universal Safety Oversight Audit Programme (USOAP) in
2006. A checklist of 54 items is used during a ramp check. The items include licenses of pilots,
procedures, manuals etc.
- Legal requirements for EU member states to perform inspections whereby an airline maybe banned
from European airspace for safety reasons if an inspection identifies irregularities. Those airlines will
then appear on a black list.
- In Sept 2006, PIA aircraft at Europe undergo safety inspections under SAFA checklist. Two PIA
aircraft were observed to be in need of maintenance actions as per EU requirements.
- PIA designated only certain aircrafts to be operated on European routes and instituted a system to
prevent similar observations in any other aircraft.
- Submitted an Action Plan to the EU Air Safety Committee which they accepted.
- Initiated refurbishment of the aircrafts that shall be completed by 2007.
- Subsequent to the year end 2006, three members EU Air Safety Inspectors visited PIA facilities to
verify the progress on the action plan submitted by PIA. The case was then presented to the EU Air
Safety Committee. EU committee in Feb 2007 concluded that PIA is still not fully in compliance with
the required standards.
- However, Various other countries including Japan, Singapore, Hong Kong, UAE continued to permit
unrestricted operations to PIA entire fleet after the ramp inspections conducted by their respective
authorities.
- PIA management was not fully convinced that the EU March 7, 2007 action temporarily restricting
PIA to only Boeing 777 flights to EU states was justified.

In support of their conformance to the maintenance standards, PIA highlighted:

- PIA maintenance and Engineering department is certified by EASA under JAR-145

- IOSA (IATA Operational Safety Audit)
- ISO 9001:2000 Quality Management Systems
- Safety Management Systems
- Grounding of Fokker Fleet as a consequence of Fokker accident
- Engineering and Maintenance – Developed the infrastructure to carry out the LAP JOINT structural
modification on Boeing 737 – Boosted Human Resources in the Engineering function
- Fleet Modernization
o Reduced the avg life of fleet
o As per long term fleet modernization plan, acquired two aircrafts
o Additional borrowing for the purchase of three Boeing 777 and three ATR. Three ATR 42
Turbo entered the fleet in 2006 with another 4 to be join in June 2007 to replace the
grounded fokkers.
o New additions would help in reducing the avg fleet age and will also benefit in efficient fuel
consumption.

Successful Recovery from EU Restrictions

- Airline’s management steadfastly continued working on wide ranging corrective actions, giving air
safety the highest priority. Confident of the Airline’s innate capabilities and safety soundness, the
management team undertook focused steps to deal with EU’s concerns.
- PIA’s holistic approach was vindicated by the EU decision of November 2007 withdrawing its
restrictions on PIA fleet within 9 months of their imposition. All PIA aircraft can now fly to EU
destinations subject to CAA Pakistan’s clearance.