ACI-NA March 29, 2006 Meeting New Cargo Security Requirements - Update

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Ophelia Payne
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1 ACI-NA March 29, 2006 Meeting New Cargo Security Requirements - Update RM Peterson Associate Technical Fellow Aviation Security Working Group The Boeing Company

2 Today's agenda Background USCAP Update (US Commercial Aviation Partnership) RMAP Update (Risk Management Analysis Process) Summary

3 Boeing Airplanes- Airport Planning Manuals

4 NPRM Cost Estimates Boeing model estimates differ dramatically Annual Totals $84M $174M Significant Cost estimate differences TSA Boeing 10 yr. 10 yr. estimate estimate Extend SIDA to all cargo areas and expand background check. $1.4M $5.6M Belly Cargo Screening. $493 $1,100M All-cargo Aircraft Operators standard security program >45.5KG. $26M $100M Freighter Screening. $167M $333M

5 Cargo Analysis Ongoing Activities Since the closure of the NPRM Comment Period: Rule remains in Executive Review Government Industry discussions have continued USCAP team has continued to collect data Freight market complexity is better understood Freight market demographics are better understood

Working Together - US Commercial Aviation Partnership Kip Hawley Randy Null Transportation Security Administration (TSA) Air Transport Assn (ATA) Jim May John Meenan Jeff Shane Karan Bhatia Al

6 Working Together - US Commercial Aviation Partnership Kip Hawley Randy Null Transportation Security Administration (TSA) Air Transport Assn (ATA) Jim May John Meenan Jeff Shane Karan Bhatia Al Martinez Fonts Gary Becker Department of Transportation* (DOT) Department of Homeland Security (DHS) Sharon Pinkerton Federal Aviation Administration* (FAA) Partnership to develop input for effective decision making Boeing American Assn of Airport Executives (AAAE) Airport Council International NA (ACI - NA) John Stammreich Ron Robinson Bob Peterson Chip Barclay Carter Morris Greg Principato Dick Marchi Provides operational and economic impact analysis

7 USCAP Model Development Declared Operational March 2003 Development initiated within The Boeing Company April 2003 USCAP coalition started May 2003 Proof of Concept Phase initiated February 2004 Initial Analytical Results published August 2004 Model validated by stakeholder participants October 2004 Independent Academic Review Completed December 2004 Air Cargo Security NPRM assessment released September 2005 USCAP V4.0 released with a complete model update to 2004 data September 2005 RMAP activity initiated January 2006 USCAP analytical process and model declared operational by the Aviation Security Advisory Committee

8 Aviation Security WG Structure TSA Administrator ASAC Aviation Security Advisory Committee USCAP - TWG (U.S. Commercial Aviation Partnership Technical Working Group) Operational/Economic Impact Analyses ASIA WG Aviation Security Impact Assessment Working Group RMAP - TWG (Risk Management Analysis Process - Technical Working Group) Risk and Effective/Efficient Countermeasures Membership: AAAE, ACI-NA, ATA, Boeing, DHS, DOT, TSA, Airbus, ALPA, CAA, NACA, RAA, NASA Membership: AAAE, ACI-NA, ATA, Boeing, DHS, DOT, TSA Membership: AAAE, ACI-NA, Airbus, ALPA, ATA, Boeing, CAA, DHS, DOT, FAA, NACA, NASA, NGATS/JPDO, RAA, TSA ASME/RAMCAP DHS/USC-CREATE DHS/RNCSAA LANL/LED DHS/Homeland Security Institute

9 Threat-based Risk Assessment Methodology Physical Representation Threat Performance Security Measure(s) Focus of RMAP-TWG (Risk&Effective/Efficient countermeasures ) Commercial Aviation System Threat ability to degrade system (Probability of success ) Operational & Economic impact of threat on system Security measure ability to protect system (Probability of success ) Operational & Economic impact of security measures on system System System Recommendations Recommendat ions Additional Focus of USCAP-TWG (Cost impact) Impact Historical Focus of USCAP-TWG (Cost impact)

10 ASIA* Countermeasure Efficiency Evaluation Product Example Impact Reduction Best Value Line Various countermeasure suites in various sequences Implementation Cost *ASIA includes both RMAP and USCAP

11 Summary We have observed Enhanced Engagement Improved Understanding Rule Issuance Delay In the future, we anticipate Improved Security Focused on perceived threats Balances threat and costs Continued Engagement of all Ongoing Change About Cargo rule making We are industry and we are here to help

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