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Mr. Chairman and Members of the Subcommittee:

I am Charles Higgins of the Boeing Company. As the Vice President for Airplane Safety of the Commercial Airplane Group, I am pleased to provide written comments regarding commercial aviation safety. Boeing has an unwavering commitment to the safety of our products and the air transport system.

INTRODUCTION

My remarks provide the following messages:

• Commercial aviation has an excellent safety record, yet we all recognize the need for improvement.

Improvements to aviation safety will require a systems approach, and the joint effort of industry and government.

SAFETY RECORD

As shown in figures 1 and 2, commercial aviation is the safest form of transportation and the United States has an aviation safety record that is the best in the world. As illustrated in figure 3, while air traffic has grown, accident rates have dropped dramatically and stabilized at an extremely low rate. This indicates that the air transport system (both industry and government) has managed to institute needed safety improvements on a continuous basis, thus coping with the increased number of departures. Travelers and shippers expect airplanes to leave on schedule, be safe enroute, and arrive uneventfully. This is overwhelmingly what happens.

Referring again to figure 2, it is also clear that the United States air transport system, under the leadership of the FAA, has consistently had a lower accident rate than the rest of the world. This is especially notable when one considers that in the last ten years, FAA-regulated domestic airlines have flown 52% of the total departures in the world. To be more specific, in the U.S., where some 48% of all airline passengers are enplaned, the accident rate is currently about 0.5 accidents per million departures. In Europe, the closest rival in terms of passengers -- with 27% of all passenger enplanements, the accident rate is about 1.1 accidents per million departures. However, in some areas of the world, accident rates range up to 12 accidents per million departures. Clearly the U.S. safety record is excellent by any comparison.

However, as we look to the future, it is clear that we must improve. Aviation growth is projected to occur at a worldwide average of about 5% per year (see figure 4). Growth in some regions will be much greater. If we just look at the average growth rate worldwide, and the average accident rate worldwide, simple math shows the likelihood that one aircraft accident will occur somewhere in the world every week by the year 2005, if accident rates remain at current levels. Even if we were to somehow achieve a rate equal to the U.S. average (0.5/million departures), an accident every

other week is projected by the above analysis. Even though air travel would statistically be just as safe as it is today, this is clearly unacceptable.

Those of us in aviation recognize the continuing need for improvement. We have worked to earn and maintain public confidence. Clearly, the economic success of our industry is tightly tied to public confidence. It is fundamental to our business that commercial aviation has a shared goal for aviation safety. That is why manufacturers, airplane operators, labor organizations, and government agencies around the world have joined in countless projects, working groups, research efforts and training initiatives aimed at improved aviation safety. That is why industry and government continue to introduce training aides, design features, avionics, procedures, improved regulations and inspection techniques to assure safety of flight. The FAA has consistently challenged the industry to implement improved methods and designs to enhance safety, even at considerable cost. We continue to be proactive to improve safety, as well as applying lessons learned when accidents do occur.

Aircraft accident investigation reports typically cite several causal factors and refer to a series of events, or missed opportunities for intervention, that ultimately led to a tragedy. Therefore application of a simple, straightforward "fix" is not usually indicated. Solutions require an overall systems approach where all the causal factors, and other factors are considered along with associated risk and the feasibility of a remedy. Sometimes a proposed "fix" adds cost and complexity without a concomitant improvement in safety. Poorly thought-out "fixes" may even introduce additional risk. As shown in figure 5, primary cause factors most often involve flight crew, rather than clear hardware or maintenance issues. This means the interaction of the flight crew with the aircraft, the airport facilities, air traffic control, or other flight or ground crew must be analyzed.

The "easy" gains in aviation safety have already been attained. If we are to push the accident rate even lower, rigorous study is required to develop preferred solutions. A well-managed safety improvement program must consider the entire system, including the risk factors, and the feasibility of "making a difference." This process will be nourished if resources can be diverted from areas of reduced risk and channeled to those areas where the safety benefit is also greatest. This "data-driven" systems approach is being fostered by industry and the FAA, and should continue to be encouraged.

SYSTEMS APPROACH

Commercial aviation has a history of change.

Early change involved requirements to make fundamental large-step improvements to safety and performance. Public confidence had to be earned and the need for shorter travel times, improved comfort and affordable fares had to be met. Technology (airplane design improvements) and basic management techniques of setting standards and inspecting for conformance were applied to these goals with great

success. As noted above, we now have a safe system that is in ever-increasing demand.

Change today is being driven by our past success. Increasing traffic and still-lower fares are fostering more efficient manufacturing, forcing a more judicious introduction of new technology into the airplane, and changing airline operating concepts. Competition is now at a much more refined level. Airplane accident rates, while extremely low, are not "good enough." Technology and inspection, while still necessary, are no longer sufficient to meet the competition and to improve safety performance. A more rigorous strategic plan is required.

Such an approach can broadly be referred to as a "systems approach." When a system is analyzed with all relevant parts considered -- the strengths and weaknesses, the interactions, the risks, the potential solutions, the benefits and the keys to success -- then a clear course of action can be identified. Results are more likely to have meaningful benefits, and will likely be achieved quicker and with fewer resources. The FAA has been a champion for use of a systems approach, recognizing that it is the only way to achieve meaningful goals.

As noted above, a systems approach is clearly needed to develop remedies called for by accident investigations. It is also the preferred approach for preventive actions aimed at improving aviation safety.

World class manufacturers apply systems analysis to manufacturing. In manufacturing, we have learned that we cannot "inspect in" quality. Instead, we analyze the design and production methods, develop new strategies, measure the implementation success, and make refinements. It is commonly called a "Plan/Do/Check/Act" cycle. Using this approach requires discipline and involvement of all the stakeholders. Processes are defined for daily activities and then constantly improved. Product goals are met and exceeded not by trying to "inspect in" quality. Instead the quality is "built in" to the process. Quality is maintained by auditing the processes.

In aviation safety, we have now recognized the need to analyze our data, apply a systems approach, and improve the process. More inspection will not necessarily show much improvement. Improvements will more likely come from the committed, dedicated efforts of the people in the aviation system (including government) who have the desire to produce a safer system. Responsible individuals within the system have the required data, understand the existing processes, and have the best opportunity to improve it. Further emphasis is needed on gathering appropriate data from the stakeholdrs, anlayzing it, and sharing it openly.

So, perhaps ironically, cooperation is now needed to enable successful competition. Cooperation among the airline operators, airport operators, air traffic management organizations, government agencies and the airframe, engine and equipment manufacturers to develop improvements to safety our fundamental shared concern

is the best hope for significant improvements.

The industry is working with the FAA to develop the needed changes. We are challenging old paradigms with new ideas and new technology, without forgetting the lessons learned. I recommend that these efforts be continued and enhanced at every opportunity, so that improvements to aviation safety, our shared goal, can be achieved. This will require adequate FAA funding, the freedom to make the necessary changes, and continued support and cooperation from industry.

SUMMARY

In conclusion, the facts clearly indicate that commercial aviation is safe, and that the air transport system under the leadership of the FAA has an excellent record of working for improvements to safety. Continued success is paramount, and will depend on applying systems analysis and actively pursuing necessary changes, as indicated by the applicable data. Future safety improvements will depend on cooperative activities involving all segments of the air transport system. The FAA can, and should act as the leader.

Industry is committed to meeting this challenge head-on and we are investing our available resources. It is important that the FAA be postured to do the same; joint efforts will provide the best outcome for the traveling public.

Thank you Mr. Chairman.

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