Our Safety Management System The safety of our customers and team members is guided by our Safety Management System (SMS), an organization- wide approach to identifying and managing risk. American was the first U.S. carrier to pioneer SMS in 2009. It has since been incorporated into Federal Aviation Administration (FAA) regulations for all carriers. Our SMS emphasizes safety management as a funda - mental business process across the enterprise. It involves a full commitment from the most senior leaders through to each team member to integrate safety into how we do our jobs. Our SMS promotes a culture in which our team members proactively identify, analyze and mitigate risks. The SMS ensures robust and repeatable processes with local ownership, driven by data to reduce risks and contin - uously improve and enhance safety. We collaborate closely with the FAA to maintain operational safety at the highest level possible and actively share best practices with our industry peers, governments and aerospace manufac - turers. The four components of our SMS are noted in the accompanying box. Safety Policy Our corporate Safety Policy applies to all team members, business partners, contractors and consultants. It sets American’s safety objectives and standards and assigns responsibilities for safety across our organization. The policy also conveys management’s commitment to safety performance and to improving the level of safety through measurable goals and key performance indicators. Part of our SMS foundation, this policy helps to create a culture that encourages effective management of risk along with continuous improvement. The Safety Policy complies with all applicable regulatory requirements and laws in the countries where we operate and establishes standards for acceptable operational behaviors. Our Emergency Response Manual (ERM), which establishes effective and efficient response practices for various types of emergencies, is an integral part of our SMS. The ERM serves as the governing document for the American Airlines Corporate Emergency Response Plan. It includes guidelines to prepare for and respond to emergencies, responsibilities for team members, protocols for communicating with internal and external stakeholders and mechanisms to report emergencies. The ERM also includes a detailed Pandemic Preparedness and Response Plan that helped us navigate through every phase of the COVID-19 pandemic. Safety Assurance The Safety Assurance component of our SMS stipulates how we use data and conduct quality assurance and internal oversight to validate the effectiveness of risk controls and the performance of the SMS. Composed of several individual programs and initiatives, Safety Assurance verifies that risk controls in our operational processes continue to conform to requirements and remain effective in maintaining risks at acceptable levels. OUR SAFETY MANAGEMENT SYSTEM Establishes senior management’s commitment to continually improve safety; defines the methods, processes and organizational structure needed to meet goals Evaluates the continued effectiveness of implemented risk control strategies; supports the identification of new hazards Determines the need for, and adequacy of, new revised risk controls, based on the assessment of acceptable risk Includes training, communication and other actions to create a positive safety culture within all levels of the workforce 1 Safety Policy 2 Safety Assurance 3 Safety Risk Management 4 Safety Promotion AMERICAN AIRLINES ESG REPORT 2021 31 \\ Indexes & Data \\ Customers \\ Team Members \\ Climate Change \\ ESG Strategy CEO Message OPERATING SAFELY \\ Safety