2018 – Edition 7 – August 3

Table of Contents

Note: The order of material varies in hotline emails, but is always presented the same on this landing page. Readers scrolling through content on or printing this page will find it organized consistent with the table of contents.

Hotline Feature
ARSA Works
Legal Brief
ARSA on the Hill
Regulatory Update
Getting Facetime
Training
Membership
Resources
Industry Calendar

Hotline Feature

Look Around

By Brett Levanto, Vice President of Communications

Where do aviation businesses thrive? What conditions are necessary for survival? What environment and resources generate the most growth opportunities? Answering those questions is a challenge that aviation businesses, industry analysts and policy makers constantly chase.

In June, the Teal Group Corporation released an Aerospace Competitive Economics Study. The report ranked each American state against eight categories of “empirical measures” impacting the business environment in which “commercial enterprises… efficiently and profitably produce aerospace-related goods.” The report’s goal is to help “aerospace manufacturing and final assembly companies” consider where in the United States is best to locate new production facilities. It was prepared for a pair of aviation unions on behalf of the Choose Washington New-Mid Market Airplane Council (which shouldn’t diminish that state’s place atop the final rankings).

Despite the focus on production –demands of aerospace stretch beyond manufacturing, as ARSA’s diverse range of members demonstrates – and regardless of the results, the factors considered are very instructive for any aviation business. The categories assessed quantitatively to rank each state should form a rubric by which operating environments, future growth and general competition lead to success.

While ARSA members are encouraged to see how their state(s) fared, what’s more important are the categories and associated factors assessed and the weight (in parentheses) given each.

Costs (20 percent)

(1) The amount of labor necessary to produce $1 in revenue.
(2) The amount of materials necessary to produce $1 in revenue.
(3) The industry end-use cost of electricity in cents/kwh.
(4) The National Association of Builders modifiers for construction costs (from the National Building Cost Manual).

Labor & Education (17.5 percent)

(1) The number of engineers per 1000 jobs.
(2) Hours worked by the segment’s workers as a portion of the total hours worked in the state.
(3) The percentage of the population older than 25 with an engineering B.A.
(4) The percentage of the population older than 25 with an advanced degree.
(5) The percentage of the population older than 25 with at least a high school education.
(6) Primary and secondary education spending.

Taxes & Incentives (17.5 percent)

(1) Current total taxes as a percentage of the state’s gross domestic product.
(2) The premium rate for compensation in the state in 2016.
(3) Corporate income tax rates.
(4) Top individual income tax rate.
(5) Net taxes on production and imports.
(6) Property tax.
(7) Sales tax.

Industry (15 percent)

(1) Industry parts and manufacturing sales.
(2) Industry parts and manufacturing value added.
(3) Industry (in this case aircraft, spacecraft and parts) exports.
(4) Increase in industry’s employees between 2012-2016.
(5) Total number of suppliers.
(6) Total value of industry-related shipments/services.

Infrastructure (15 percent)

(1) Airports per square mile.
(2) Freight railroad miles.
(3) Total container traffic to ports.
(4) Road quality.
(5) Transportation funding.

Economy (5 percent)

(1) GDP per capita.
(2) GDP per capita growth.
(3) Industry (in this case manufacturing) output.
(4) Industry (again manufacturing) exports.
(5) Unemployment rate.

Research & Innovation (5 percent)

(1) Patents per capita.
(2) Federal research and development spending.
(3) Private research and development spending.
(4) Presence of high-tech business.

Risk to Operations (5 percent)

(1) Insurance premiums
(2) Insurance losses.
(3) Earthquake premiums.
(4) Extreme weather risk.

Looking through the lenses provided by these categories you can see where your location needs help and what you can do to increase the factors for success.

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ARSA Works

What ARSA Has Done Lately – Second Quarter 2018

Each quarter ARSA’s executive team reports to the board of directors about the association’s broad efforts on behalf of the industry. Step into a board member’s shoes and review the “operations report” to see a sampling of what was going on between April and June 2018:

Communications

Updated and reissued state-by-state EASA approval holder report and distributed to media and Senate and House offices.

Surveys

• Reported on results of 2018 member survey.
• Ran “quick question” surveys on impact of new tax law (April), cost of obtain instructions for continued airworthiness (May) and Brexit (June).

Events

• ARSA team now planning annual board meeting, which will be held in Washington, D.C. in October, featuring lunch with association allies, afternoon meeting with FAA leadership and an evening reception. The board’s business meeting will be held on the morning of Friday, Oct. 12.

Meetings

• April 6: Sarah MacLeod MacLeod participated in meeting with Ali Bahrami, Dorenda Baker and John Duncan on remote connectivity in aviation.
• April 10-11: Brett Levanto Levanto attended MRO Americas in Orlando, Florida, facilitating a roundtable discussion on ways to increase pool of military AMTs transitioning into civilian aviation careers.
• April 19: Brett Levanto Levanto participated in Aviation Data Exchange (AVDEX) Program update conference call.
• May 1: Sarah MacLeod MacLeod presented at FAA Western Hemisphere Leadership Conference at the invitation of the FAA.
• May 8: Christian Klein Klein met with the transportation policy team for the U.S. Chamber of Commerce to brief on legislative and regulatory priorities.
• May 14 & June 19: Christian Klein participated in Canadian Chamber of Commerce Transportation & Infrastructure Committee conference calls.
• May 15: Christian Klein hosted a luncheon for ARSA member government relations professionals.
• May 18: Brett Levanto attended advisory council meeting for German American Aviation Heritage Foundation.
• May 21: The ARSA executive team hosted a meeting with EASA Washington team.
• May 22: The ARSA executive team hosted a meeting with the Small Business Administration’s assistant chief counsel for advocacy.
• May 23: The ARSA executive team hosted a team from the Department of Commerce International Trade Administration.
• June 5: Sarah MacLeod and Christian Klein hosted ARSA Government Affairs Chairman Josh Krotec (First Aviation) for a brainstorming session on regulatory and legislative policy initiatives.
• June 5: Marshall Filler attended EASA EM.TEC meeting in Koln, Germany.
• June 6: Sarah MacLeod attended regular meeting with John Duncan to review and update agenda items.
• June 15: Marshall Filler chaired SOC ARC AFS Integration Issues Group meeting.
• June 19 – 21: Sarah MacLeod and Marshall Filler attended the 2018 FAA-EASA International Aviation Safety Conference and Marshall Filler moderated the maintenance panel (“Various ‘States’ of Repair – Aviation Maintenance in the Digital Era”).
• June 21: Sarah MacLeod attended ARAC meeting.
• June 21 – 22: Marshall Filler attended SOC ARC
• June 29: Sarah MacLeod, Christian Klein and Brett Levanto hosted Boeing Director of Engineering & Regulatory Affairs Julie Brightwell for a briefing on ARSA regulatory and legislative initiatives and discussion of D.C. collaboration.

Regulatory

• Submitted letter to the FAA – signed by 14 other organizations – seeking objective criteria for adding and reviewing paragraphs to any certificate holder’s operations specifications.
• Commented on Federal Register notice related to a Southern Utah University petition for exemption from the curriculum requirements of 14 CFR § 147.21(a)-(c).
• Submitted draft advisory circular to FAA providing “guidance for using remote connectivity technology and tools,” which was developed after consultation with the agency and supported by coalition of 15 other organizations.
• Renewed 2017 effort to work out objective standard for submitting service difficulty reports under § 145.221.
• Requested – with the Aircraft Electronics Association – the FAA withdraw any guidance material language requiring applicants for repair station certificates to submit a “letter of compliance.”
• Commented on EASA Notice of Proposed Amendment (NPA) 2018-01 pertaining to Instructions for Continued Airworthiness.
• Reviewed FAA final rule “Updates to Rulemaking and Waiver Procedures and Expansion of the Equivalent Level of Safety Option,” which accepted both suggested provided by ARSA in its comments to the 2016 NPRM.
• Gained membership on TSA Aviation Security Advisory Committee.
• Began development of materials to facilitate complaints (by ARSA and members) to Small Business Administration Small Business Ombudsman regarding FAA’s failure to enforce 14 C.F.R. 21.50(b).

Legislative

• Continued campaign to include aviation maintenance workforce development grant program language in FAA bill.
  • Facilitated introduction of R. 5701 as House companion to S. 2506.
  • Facilitated coalition letter signed by 20 leading aviation organizations in support of H.R. 5701. Other supporters include FedEx, National League of Cities, Boeing.
  • Coordinated 43 coalition meetings with congressional offices during Q2 to build support for H.R. 5701 and S. 2506.
  • Created ARSA Workforce Legislation Action Center to provide advocacy resources for members and allies.
• Worked to prevent hostile amendments to FAA bills.
  • Michael Burgess amendment 47 would have required employees authorized to approve articles for return to service at foreign repair stations to hold Part 65 mechanics certificate and to be able to speak English (in addition to reading, writing and understanding, as currently required). Effort was rejected by Rules Committee prior to FAA bill floor consideration.
  • Claire McCaskill (D-Mo.) and Reps. John Garamendi (D-Calif.) and Dan Donovan (R-N.Y.) introduced legislation (S. 3026 and H.R. 6028) to require airlines to publicize – via their websites, ticket confirmation and boarding passes – the cities and countries in which their aircraft undergo heavy maintenance. ARSA has expressed opposition to Senate and House offices and has used new EASA state-by-state data (see Operations Report) to explain potential negative consequences for U.S. air carriers and repair stations.
• Secured inclusion of report language in Senate National Defense Authorization Act encouraging Department of Defense to make wider use of FAA approvals (esp. for PMA parts and DER repairs).
• Facilitated participation by Component Repair Technologies (CRT) President Richard Mears and four CRT team members in April 12 Rose Garden event with President Trump on the impact of the 2017 tax law.

How 100,000 People Learned They Can’t Fly Without Us

In March 2015, ARSA unveiled “You Can’t Fly Without Us.” The seven-minute documentary was produced for use on public television and provided a general introduction to the world of aviation maintenance. Since its release, more than 100,000 viewers have access the film on YouTube and even more have been exposed to it through professional events, training sessions, job fairs and more.

If you haven’t yet joined that group, invest in viewing (and sharing) the documentary:

The association developed the video as a recruitment resource, an educational tool and a mechanism for advancing industry advocacy. Learn how your business can use it to help the world better understand aviation maintenance: Click here to get started or visit arsa.org/documentary.

AVMRO Education Portal

ARSA strives to provide resources to educate the general public about the work of the association’s member organizations; should you need to provide a quick reference or introductory overview to the global maintenance industry, please utilize AVMRO.ARSA.org.

Right to Use

ARSA grants a non-exclusive license to those who wish to use “You Can’t Fly Without Us” (“the work”) for the exclusive purpose of promoting the aviation maintenance industry, including the right to distribute copies of the work and to display the work publicly. ARSA reserves all remaining rights in the work.

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Legal Brief

Editor’s note: This material is provided as a service to association members for educational and informational purposes only. It does not constitute legal or professional advice and is not privileged or confidential.

Preparing for the Worst from Brexit – Part III

Options Under a “Hard Brexit”

By Marshall S. Filler, Managing Director & General Counsel

As we await the outcome of ongoing Brexit negotiations, this month’s legal brief explores the practical implications of a “hard” Brexit on any repair station or approved maintenance organization (AMO) in countries that work on United Kingdom (UK)-registered aircraft or that use UK-located approved maintenance organizations (AMO).

A hard Brexit means that as of March 30, 2019 the UK would not be subject to EASA rules or be bound by existing agreements between the EU and other countries. There would be no smooth transition; it would be like throwing a switch and it could get ugly.

While no one can predict the future, we all hope the EU and UK negotiators recognize the importance of a soft landing for the aviation sector to minimize the impact on the worldwide aviation fleet. As in the financial sector, what impacts one jurisdiction directly has ripple effects throughout the world’s civil aviation system.

Under today’s bilateral agreements, when an EU-based AMO (including those in the UK) applies for another country’s repair station certificate, the regulatory standard is EASA part-145 plus special conditions contained in a Maintenance Annex Guidance document. EASA handles the certification process on the Civil Aviation Authority’s (CAA’s) behalf and submits a recommendation for the CAA to issue a certificate (or not). Surveillance is also performed by EASA on the CAA’s behalf with the latter reserving the right to address any compliance issue under its State of Registry jurisdiction.

In the event of a worst-case scenario (i.e., a hard Brexit), there are several possible outcomes relating to the continued ability of UK AMOs to perform maintenance on articles subject to another CAA’s jurisdiction. Since the UK AMOs would be outside the scope of the existing EU bilateral agreements, the operative regulatory standard would be the “foreign country’s” part 145 requirements exclusively.

Therefore, the UK repair station would have to develop manuals, expositions and training programs acceptable to or approved by the CAA and comply with all other applicable “foreign” regulations. Each “foreign” CAA would also be responsible for surveilling its certificated entities, as well as certificating new ones.

While some have suggested that for the United States the FAA could reactivate the older pre-EASA bilateral and Maintenance Implementation Procedures (MIP). Unfortunately, the FAA had no such agreement with the UK, only with France, Germany and Ireland. Similarly, the EASA has no bilateral arrangements with the UK that can be enacted as a stop-gap measure.

Apart from the considerable inconvenience and additional cost to UK repair stations to comply with multiple CAA requirements in their entirety, these transitions will take time and resources for all the authorities and certificate holders. In the absence of unilateral action by a CAA, such as EASA or the FAA or, more likely, an agreement among and between the various authorities and the UK CAA, UK entities could not perform maintenance subject to another other jurisdiction until compliance with the respective part 145 regulations was shown.

Certainly, the authorities can do much to mitigate the impact of a hard Brexit. For example, they could recognize the continued validity of the EASA or FAA certificates issued to UK AMOs. Certainly, the FAA, EASA, Canada and Brazil could take quick action. The UK could quickly adopt EASA part-145, making it easier for the authorities to justify allowing a transition period based on previous compliance findings before full compliance would be required. Of course, if bilateral agreements with maintenance and technical implementation procedures can be negotiated and applied contemporaneously with a hard Brexit, it would mitigate many of the worst effects.

The uncertainty surrounding the outcome of the Brexit negotiations greatly complicates the contingency planning of industry and other regulatory authorities. All potentially affected entities should determine how to mitigate these risks even if they’re never confronted with the reality of a hard Brexit. Possibilities include:

• Treating the “foreign” entity as a non-certificated source under the national CAA regulations. Both EASA and FAA allow use of non-certificated contractors under certain conditions. Most of the other authorities will have similar regulations.
• Using the national regulatory authority to work away from the fixed location. Both FAA and EASA regulations allow their certificated entities to work away from their fixed locations as provided in their regulations. Again, the UK-CAA should be adopting similar allowances.
• Stockpiling new and/or maintained articles as a hedge against a worst-case scenario.

Previous Legal Briefs on “Preparing for the Worst from Brexit”:

Part I – Short Overview (May 2018)
Part II – Importing from the UK (June 2018)

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ARSA on the Hill

Major ARSA Progress as FAA, Defense, Workforce Bills Move

By Christian A. Klein, Executive Vice President

ARSA made significant progress in July in its ongoing campaign to use the FAA reauthorization process to address the maintenance industry technician shortage, which ARSA members have identified as a top strategic threat.

On July 25, the Senate Commerce Committee circulated a package of proposed provisions to be included in an FAA bill managers amendment. The legislative team is pleased to report that S. 2506, the aviation maintenance workforce legislation introduced earlier this year by Sen. James Inhofe (R-Okla.), is among the amendments slated to be added to the FAA bill (assuming there are no objections from other senators).

The legislation would authorize $5 million per year for five years for a new FAA-administered grant program. Grants of up to $500,000 per year would be available to businesses or unions, schools and governmental entities that collaborate on maintenance technician workforce recruitment and training initiatives.

ARSA is leading the coalition to enact S. 2506 and H.R. 5701, its House companion bill. The association coordinated a letter signed by 29 leading aviation organizations and delivered to Senate Commerce Committee leaders July 20 urging them to include S. 2506 in the FAA bill.

ARSA Workforce Legislation Action Center

ARSA has also been recruiting new coalition members, with an emphasis on getting state and local aviation groups involved in the campaign. The Arkansas Aerospace and Defense Alliance, Aviation Council of Pennsylvania, Greater Miami Aviation Association, Minnesota Business Aviation Association, Ohio Aviation Association, South Florida Aviation Maintenance Council and Westchester Aircraft Maintenance Association have all endorsed the workforce bills. (If you’re involved with a local organization that might be interested, please send an email to christian.klein@arsa.org to help make the connection.)

Despite the positive developments on the Hill, the coalition is keeping the pressure on lawmakers to officially cosponsor the legislation. Those efforts are paying dividends. Three additional senators – Debbie Stabenow (D-Mich.), Angus King (I-Maine) and Chris Van Hollen (D-Md.) – cosponsored S. 2506 this month, bringing the total number of cosponsors to 23. Four additional House members – Reps. Jim Himes (D-Conn.), Elizabeth Esty (D-Conn.), Todd Rokita (R-Ind.) and Rick Larsen (D-Wash.) – cosponsored H.R. 5701 in July, bringing the total number of cosponsors of that bill to 16.

The effort has come a long way. Getting parallel, bipartisan bills introduced in the House and Senate, building a 30+ member lobbying coalition, convincing dozens of lawmakers to become cosponsors and getting legislation added to a manager’s amendment package is no small feat. But there is a long way left to go before the workforce grant bill becomes law.

It still needs to be officially included in the FAA bill, then that bill needs to pass the Senate, then we need to convince House conferees on the FAA bill to accept the Senate language and include it in the final conference report, then the conference report needs to pass the House and Senate and the president has to sign it.

Your involvement is key. The easiest way to support ARSA’s workforce bill campaign is to encourage your senators and representative to become cosponsors (and to thank lawmakers who already are). All the tools you need are in ARSA’s grant program legislative action center. Inviting lawmakers to visit your facility and becoming involved in ARSA’s political program are also great ways to support our work on your behalf (in the months leading up to the midterm elections, “ARSA on the Hill” will continue running a series on ways to engage directly with lawmakers).

Contact ARSA Executive Vice President Christian Klein at christian.klein@arsa.org for more information.

Perkins Bill Quickly Becomes Law After Years-Long Wait

While ARSA is leading the charge on aviation maintenance industry-specific legislation, the association has also been supporting efforts to reauthorize the Carl D. Perkins Career and Technical Education Act (Perkins), which provides important resources to support career technical education (CTE) in general.

On July 25, the House passed legislation to reauthorize the Carl D. Perkins Career and Technical Education (CTE) Act, moving quickly to approve the Senate’s version of the bill. President Trump kept up the pace, signing the measure into law on July 31.

To read more about what happened and what’s in the bill, see the related story in this issue of the hotline.

NDAA Senate Report Language Opens Door to Wider DOD Use of FAA Approvals

Another priority for ARSA in the current Congress has been exploring opportunities for the Department of Defense (DOD) to make wider use of FAA approvals on DOD’s fleet of commercial derivative aircraft (CDA).

CDA are off-the-shelf versions of FAA-type certificated aircraft owned and operated by DOD that are identical to those used in civil aviation. ARSA believes that DOD’s wider use of FAA approvals (e.g., for Parts Manufacturer Approval [PMA] parts and Designated Engineering Representative [DER] approved repairs) would reduce redundant reviews and CDA maintenance costs while enhancing government efficiency and improving readiness.

ARSA and leading association members held dozens of meetings with House and Senate Armed Services Committee member offices and committee staff in recent months to explore ways to encourage DOD to make greater use of FAA approvals.

As the debate over this year’s National Defense Authorization Act (NDAA) heated up, the FAA approval issue gained significant traction and multiple congressional offices requested that related language be included in the House and Senate versions of the NDAA. Ultimately, at the request of Senator David Perdue (R-Ga.), the Senate bill included report language (page 239) directing DOD to prioritize the use of FAA approvals that read as follows:

Use of Federal Aviation Administration approval for Department of Defense commercial derivative aircraft

The [Senate Armed Services Committee] is aware that the Department of Defense (DOD) has long operated products that are identical to those in civil use, including aircraft, aircraft engines, and propellers. These commercial derivative products have been certified by the Federal Aviation Administration (FAA), which has an effective system for approving parts, repairs, and alterations. The FAA’s existing certification process allows the DOD to maintain its commercial derivative fleet without duplicative review or approval. The committee believes leveraging existing FAA certifications can provide the DOD cost and schedule efficiencies that should be pursued to the greatest extent practicable.

Therefore, the committee urges the Department to prioritize the use of non-developmental and commercially available items with existing FAA certifications as long as the use of those products do not compromise safety or security requirements established by the Department of Defense.

It’s important to note that the language is report – not statutory – language, meaning it doesn’t have the force and effect of law and is more akin to a “sense of the Senate” statement. However, Senate staff have indicated that DOD generally reviews report language and acts on it as if it were law. It provides significant moral authority for DOD’s wider use of FAA approvals. If DOD doesn’t heed the Senate’s recommendation, the report language could be a stepping stone to future statutory language.

While not as specific, the House NDAA report also contained language relevant to the DOD approval issue and directs DOD to brief the House Armed Services Committee on issues related to the supply of aviation parts and spares and commercial and industry best practices for maintenance and supply that could improve aircraft mission capability rates. Specifically, the House NDAA report (page 91) states that:

The committee is concerned by the rate of non-mission capable aircraft due to issues with supply of parts and spares. The committee is aware of numerous examples of aircraft that have been non-mission capable for several months waiting for the arrival of a part. Therefore, the committee directs the Under Secretary of Defense for Acquisition and Sustainment to provide a briefing to the House Committee on Armed Services not later than September 30, 2018, on the Department’s efforts to address issues associated with the availability and supply of aviation parts and spares. At minimum, the briefing should provide an update on the rate of non-mission capable aircraft due to supply, specific actions the Department is taking to decrease this rate, and commercial and industry best practices for maintenance and supply that may be adopted as part of an overall strategy to improve aircraft mission capability rates.

The final NDAA conference report released July 23 (which has since passed the House and Senate and as of the hotline’s publication was on its way to becoming law) does nothing to alter or water down the above referenced House and Senate report language, meaning that both provisions stand in their current form. Thus, given that the industry goal all along was to open a dialogue with DOD and urge the Department to do something it already has the legal authority to do, ARSA is declaring victory following it’s first foray into the NDAA process.

The next step is to ramp up engagement between the association, its members and DOD to identify barriers to the use of FAA approvals (e.g., the source approval request process and security issues) and ways to bring greater consistency to DOD policy in this area. ARSA members interested in being involved should contact ARSA Executive Vice President Christian Klein at christian.klein@arsa.org.

Congress Caps Years-Long Effort on Skills Education

On July 25, the House passed legislation to reauthorize the Carl D. Perkins Career and Technical Education (CTE) Act, moving quickly to approve the Senate’s version of the bill. President Trump kept up the pace, signing the measure into law on July 31. 

The “Strengthening Career and Technical Education for the 21^st Century Act” (H.R. 2353) was largely unchanged from the version passed by the House in June 2017. Having awaited Senate attention for more than a year, the upper chamber approved the measure within a month of its unanimous passage by the Health, Education, Labor & Pensions (HELP) Committee.

In general, the bill will give states more flexibility in designing CTE programs while establishing tighter timelines and performance indicators to measure the success of state efforts. The legislation also broadly enhances coordination between schools, businesses and government to ensure students graduate with skills local employers actually need, increasing student participation in work-based learning opportunities and promoting the use of industry-recognized credentials.

Maintenance providers have expressed growing concern about increasing difficulty finding workers with the technical skills necessary to work in aviation. As part of its ongoing efforts to address this shortage, ARSA joined a letter coordinated by the National Association of Manufacturers urging HELP Committee leadership to move quickly to enact a Perkins bill into law (see June 18 update at arsa.org/technical-workforce-development).

Once Congress completed its long work on the bill, its signature by the president was certain. After House passage, the White House doubled down on an early tweet celebrating the bill, applauding Congress for its “tremendous, bipartisan effort.”

“By enacting [the bill] into law,” President Trump said in a July 25 statement, “we will continue to prepare students for today’s constantly shifting job market, and we will help employers find the workers they need to compete.”

The long-overdue reauthorization of the Perkins program represents a significant step towards providing states and communities with the resources needed to address the growing issue of a shortage of skilled labor across all industries. It also sets up Congress to take action of the ARSA-supported effort to pilot an aviation maintenance-focused workforce grant program.

To learn more about that effort, which also incentivizes local collaboration to develop needed skills, visit arsa.org/grant-program.

Constituents Matter: Congressional State/District Offices

While ARSA’s legislative team works hard for you daily, nothing substitutes for a constituent’s personal involvement in the legislative and political process. With midterm elections fast-approaching, now is a good time to review the ways you can engage your lawmakers without leaving your local area.

The place to start is the role district offices play in a congressional staff. A district office (U.S. senators and staff often refer to it as “state offices”) represents the home base for your U.S. House and Senate representatives. It employs dedicated individuals from the local community who answer constituent concerns. The staff is ready to answer questions about legislation, provide information about district activities, set up an appointment with your representative and help with other matters of importance or interest.

To find your representative and senators, visit www.govtrack.us/congress/members/map. You can find your legislators by entering your address and zip code.

The search will bring up your representatives and senators. Clicking on respective links allows you to view a background and contact information page for each of your elected officials, including websites, Twitter and Facebook pages and Washington, D.C. phone info.

To access information about their home offices, you’ll need to visit their websites for further information – usually under a “contact” or “office locations” heading. Most representatives and senators have more than one district office, making your visit even more convenient. Remember your company and residence might be in different congressional districts or states; if so, you may engage multiple sets of elected officials representing your home and business.

Visit the home office to inform your lawmakers and staff of issues important to your business – let them know you are there and you represent votes! Opening the door to an ongoing dialogue through this local contact is easy, but if you are still feeling uncomfortable about making politics local, contact ARSA for assistance. Remember, your voice matters!

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Regulatory Update

IATA-CFMI Agreement Shows Market Cooperation, Not Complete Safety Solution

On July 31, the International Air Transport Association (IATA) announced an agreement with CFM International (CFMI) to increase engine maintenance competition. As a result, IATA has withdrawn its formal complaint filed with the Competition Directorate of the European Commission (EC) in March 2016.

CFMI, a 50/50 partnership between General Electric and Safran Aircraft Engines, agreed to adopt a set of “conduct policies” and associated implementation measures to enhance opportunities available to third-party providers of engine parts and maintenance services on the CFM and LEAP series engines. As described by IATA, CFMI has agreed to:

• License its Engine Shop Manual to an MRO facility even if it uses non-CFM parts.
• Permit the use of non-CFM parts or repairs by any licensee of the CFM Engine Shop Manual.
• Honor warranty coverage of the CFM components and repairs on a CFM engine even when the engine contains non-CFM parts or repairs.
• Grant airlines and third-party overhaul facilities the right to use the CFM Engine Shop Manual without a fee.
• Sell CFM parts and perform all parts repairs even when non-CFM parts or repairs are present in the engine.

“This agreement shows how powerful the global airline community can be when it is determined,” said Sarah MacLeod, ARSA executive director. “The airlines applied pressure and contractual obligations to address problems that go beyond minimum safety regulations. IATA ensured the contract ‘beneficiaries’ included airlines, lessors, parts manufacturers and independent repair stations. Aviation safety agencies grappling with maintenance data availability issues should not take this agreement as an answer to their obligations to establish and ensure compliance with basic safety requirements.”

ARSA assisted the EC in its initial investigation of IATA’s 2016 complaint by responding to a questionnaire seeking in-depth information on certain practices of specific design approval holders. The association’s responses focused on aviation safety rules and how the national aviation authorities’ failure to enforce regulations even-handedly directly affected competition.

“This agreement is an important lesson,” said Marshall S. Filler, ARSA managing director and general counsel. “IATA and CFMI deserve a lot of credit for its comprehensive nature – it establishes a model for future contract negotiations between aircraft purchasers and the entire manufacturing community.”

To see all of ARSA’s work related to instructions for continued airworthiness, click here.

To read IATA’s complete release on the CFMI agreement, click here.

To read the agreement as issued by CFMI, click here.

UN Seeks Halon Input

The International Civil Aviation Organization (ICAO) and the United Nations Environment Programme’s Halons Technical Options Committee (HTOC) need industry input on halon emissions.

Companies that service and repair halon 1301 systems/cylinders should assist this effort by completing an online survey administered by the two international aviation bodies. The survey is available at www.surveymonkey.com/r/NDJPGH3.

Halogenated hydrocarbons (halons) impose minimal weight and space storage burdens in an aircraft environment and deploy as an effective fire extinguishing agent. As a result, halons are the principle agent used in aviation fire suppression.

Unfortunately, the operational benefits of halon use are offset by major environmental concerns; their production was banned under the Montreal Protocol on Substances that deplete the Ozone Layer and ceased worldwide in 2010. Use of the compounds remains legal and will continue in commercial aviation until reasonable alternatives are available. Recycling programs meet current industry demand but will not remain indefinitely viable.

Under U.S. rules, “halon 1211…or equivalent” is required for use in onboard fire suppression (see 14 CFR §§ 25.851, 121.309). Seeking that “equivalent” without an explicit regulatory mandate – but in advance of rising market pressure – will require direct engagement.

In its December 2014 report, the FAA’s Halon Replacement Aviation Rulemaking Committee (ARC) recommended a framework to ensure industry and government action to find and implement halon alternatives. The committee, which was supported by ARSA as well as industry members, private businesses and environmental specialists, urged the creation of a “halon replacement focal point” within the agency to lead industry efforts and liaise with other governmental bodies.

“[U]nless steps are taken now to accelerate the implementation of halon alternatives, there is a risk that the aviation industry’s current course of halon resource management will become unsustainable,” the report said.

In the meantime, industry stakeholders performing halon recycling-related work should provide feedback to the ICAO/HTOC questionnaire. Responses will be analyzed to determine the current and projected future quantities of halon used in civil aviation fire protection systems and actions to minimize unnecessary emissions as well as management of existing reserves.

Responses to the questionnaire will be treated as confidential and will only be disclosed in aggregate.

To complete the survey, visit: www.surveymonkey.com/r/NDJPGH3.

To read the official invitation letter, which includes a hard copy of the survey, click here. (Note: Enclosure B is not included in this version.)

Aerospace businesses should ensure suppliers, customers and other industry colleagues performing work on halon systems also have access to the questionnaire.

Final Documents/Your Two Cents

This list includes Federal Register publications, such as final rules, Advisory Circulars and policy statements, as well as proposed rules and policies of interest to ARSA members.

To view the list, click here.

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Getting Facetime

Klein Resumes Repair Station Representation on ASAC

ARSA Executive Vice President Christian Klein attended his first meeting of the Transportation Security Administration’s (TSA) Aviation Security Advisory Committee (ASAC) since being appointed to represent repair stations on the panel in June by TSA Administrator David Pekoske.

Established in 1989 following the Pan Am flight 103 bombing, ASAC provides advice to the TSA administrator on aviation security matters, including the development, refinement, and implementation of policies, programs, rules and security directives.

The committee is composed of individual members representing private sector organizations affected by aviation security requirements. The Aviation Security Stakeholder Participation Act of 2014 made ASAC permanent and required repair stations be represented. The committee typically meets four times a year and holds a meeting open to the public once a year.

Repair stations are directly impacted by TSA regulations.  In 2003, Congress enacted VISION-100 – the Century of Aviation Reauthorization Act, which required the TSA to issue security rules for all aviation repair stations. TSA finally issued those rules in January 2014.  Since then, ARSA has been monitoring TSA’s enforcement and implementation and providing compliance assistance to members.

ARSA members with comments, questions or concerns about TSA rules and related security issues should contact Klein at christian.klein@arsa.org.

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Training

D&A Testing Requirements

Follow Marshall S. Filler through his exploration of drug and alcohol testing requirements in both 14 CFR parts 14 and 49. In Filler’s words, remember: “This is not a logic exercise…it’s a regulatory exercise.”

Interested in all five D&A sessions (you can see the rest below)? Click here to purchase them together and save.

Requirements of 14 CFR part 120
This session provides basic information on the Federal Aviation Administration’s drug and alcohol testing requirements contained in Title 14 CFR part 120, Drug and Alcohol Testing Program (full description available on registration page).

Click here to register and get access for 90 days.

Requirements of 49 CFR part 40
This session provides information on the requirements of the Department of Transportation (DOT) set forth in 49 CFR part 40, Procedures for Transportation Workplace Drug and Alcohol Testing Programs (full description available on registration page).

Click here to register and get access for 90 days.

Traps for the Unwary
This session provides information on avoiding many of the common drug and alcohol-related mistakes that can subject companies to enforcement action, typically in the form of civil penalties (full description available on registration page).

Click here to register and get access for 90 days.

D&A Testing – Safety Sensitive Functions

This session covers “performance” of “safety-sensitive functions” in a repair station that is subject to 14 CFR part 120, Drug and Alcohol Testing Program. It focuses on the regulatory definitions of those activities and how they should be integrated into the repair station’s quality system and business practices. It also provides guidance on when tested employees should be removed or remain in the random testing pool.

Click here to register and get access for 90 days.

Case Study: Testing Your Knowledge

This session will test the participants’ knowledge of the drug and alcohol testing requirements in 14 and 49 CFR by presenting several hypothetical case studies (full description available on registration page).

Click here to register and get access for 90 days.

Registration for an ARSA-provided training session includes:

• Unlimited access for 90 days to the recording made available after the live session is complete.
• A copy of the presentation and all reference material with links to relevant resources and citations.
• A certificate upon completion of the class, as well as any test material.

The association’s training program is provided through Obadal, Filler, MacLeod & Klein, P.L.C., the firm that manages ARSA. To go directly to OFM&K’s online training portal, visit PotomacLaw.inreachce.com. To learn more about the association’s training program and see course availability, visit arsa.org/training.

Part 65 – Overview, Mechanics & Repairmen

Walk through the association’s three-part series on 14 CFR part 65. Want all three? Click here to purchase together and save.

Part 65 – Overview

This session overviews 14 CFR part 65, Certification: Airmen Other than Flight Crewmembers. It introduces the statutory authority through which the FAA administers certificates and outlines the rules for application, issuance, testing, disqualification and duration of agency-issued certificates. It then introduces the five different certifications issued under part 65 by reviewing the relevant eligibility requirements for each.

Instructor: Sarah MacLeod

Click here to register and get access for 90 days.

Part 65 – Getting a Mechanic’s Certificate

This session reviews the requirements of 14 CFR part 65 subpart D, which concerns aviation mechanics. It walks through the requirements for an individual to apply for a mechanic’s certificate, then defines the privileges and limitations bestowed on that individual by his or her certificate. Finally, it covers the enhancements to a mechanic’s privileges produced by obtaining Inspection Authorization.

Instructor: Sarah MacLeod

Click here to register and get access for 90 days.

Part 65 – Getting a Repairman’s Certificate

This session reviews the requirements of 14 CFR part 65 subpart E, which concerns aviation repairmen. It presents the language of part 65 in the context of parts 121, 135 and 145 as well as agency guidance regarding the management of repairman applications. Throughout, the session connects and compares the repairman’s requirements to those of the mechanic’s certificate issued under part 65.

Instructors: Sarah MacLeod & Brett Levanto

Click here to register and get access for 90 days.

Registration for an ARSA-provided training session includes:

• Unlimited access for 90 days to the recording made available after the live session is complete.
• A copy of the presentation and all reference material with links to relevant resources and citations.
• A certificate upon completion of the class, as well as any test material.

The association’s training program is provided through Obadal, Filler, MacLeod & Klein, PLC, the firm that manages ARSA. To go directly to OFMK’s online training portal, visit potomaclaw.inreachce.com. To learn more about the association’s training program and see course availability, visit arsa.org/training.

Education (and Entertainment) On the Hill

There’s a lot that goes into making (or preventing) law on Capitol Hill. It takes decades to completely master the magic of Washington policymaking, but here’s a three-minute primer from the classic Schoolhouse Rock television series:

Regulatory Compliance Training

Test your knowledge of 14 CFR § 65.81 – Certificated mechanic’s privileges and limitations.

Click here to download the training sheet.

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Membership

AMS Update – Learning Opportunities

On July 19, ARSA executed phase I of launching its new association management tool. All Regular, Affiliate, Associate, Educational and Military Service Member contacts were sent an official launch email with the subject “The ARSA Portal is Open!” (Corporate Member contacts will be uploaded next.)

To learn more about what this means and how the association’s phased launch will continue, review the lead story from the most-recent edition of the hotline “Connecting with ARSA.” 

The association’s membership team is now reviewing data from the launch and addressing technical issues related to certain contacts. You can help – if you haven’t done so already – by finding your copy of the launch email and following its instructions for accessing ARSA’s secure member portal. Report back immediately to arsa@arsa.org if you didn’t receive the message or have technical issues accessing the portal.

To ensure you can receive messages from the system, get “sendgrid.net” on your email safe list. This domain is used to distribute automated messages.

Stay tuned as ARSA continues to progress through the launch process…

Feed Your Need for ARSA

The updates on arsa.org are a valuable resource for the aviation community. The association’s team has heard from countless sources (including aviation safety inspectors) that its website is the most-trusted resource for delivering key information in a clear, accurate way…and it often does so before anyone else.

The Dispatch newsletter delivers all of ARSA’s webposts to thousands of subscribers each week (Not getting yours? Subscribe now), but you don’t have to wait for Wednesday’s to see what’s going on. Connect to the association’s RSS feed to get immediate notification of updates and even “pipe” them directly to your own website, information portal or other resource.

By subscribing to RSS feeds using news aggregators or connecting them to existing websites, users need not visit a series of individual sites to gather all the information and intelligence needed for their work.

The address for ARSA’s RSS feed is http://arsa.org/feed and can be accessed using the  icon at the top of the website. To learn about how to use these feeds, click here (link directs to Digital Trends article). For information regarding how to take advantage of ARSA’s expertise and use the association’s feed to produce content on your website, contact Brett Levanto (brett.levanto@arsa.org).

http://arsa.org/feed

Other ways to stay on top of ARSA:

(1) Follow @ARSAworks on Twitter.
(2) Connect with the Aeronautical Repair Station Association on Facebook.
(3) Make arsa.org your home page.
(4) Find and share content from the association’s team in other publications, including Aviation Week, AMT Magazine, DOM Magazine, Aviation Maintenance Magazine and more…

Welcome & Welcome Back – New & Renewing Members

ARSA’s members give the association life – its work on behalf of the maintenance community depends on the commitment of these organizations. Here’s to the companies that joined or renewed in July:

New Members (Member Category)

Arista Aviation Services, LLC, R04
Ford Instruments & Accessories, LLC, R01
TMx Aero, LLC, R01

Renewing Members (Member Category, Member Since)

Aero Accessories & Repair, Inc., R03, 2016
Aerospace Engineering Group, S.L., R03, 2014
Aeroworx, R02, 2010
Air Transport Components, LLC, R04, 2015
Airline Components Parts, Inc., R01, 1999
Arkwin Industires, Inc., R03, 1994
Aviation Component Solutions, Assoc, 2005
Ozark Aeroworks, LLC, R03, 2015
Performance Repair Group, R02, 2013
Southern Oregon Skyways, Inc. dba Jet Center MFR, R02, 2006
The Aviation Group, Inc., R01, 2011
Twin Manufacturing Co., dba TWIN MRO, R04, 1993

Quick Question – Engaging Elected Officials

While ARSA’s legislative team works hard for the industry every day (with great success), it depends on the personal engagement of the maintenance community. By investing personally in the political process at the local, state and national level, aviation professionals can help drive home important messages and put a human face on the general arguments made by the association.

With midterm elections fast-approaching, the association will be presenting instructive content on how to be an “active constituent” and get facetime with elected officials (see the first installment in the “ARSA on the Hill” section of this edition of the hotline).

To help ARSA enhance the industry’s engagement, take a moment to share your experience with activities that bring you and your company closer to the men and women representing your interests in government.

Note: The question is displayed in its own, embedded window. If the “Done” button is not visible on the screen, you must scroll within the survey window in order to submit your response.

For more information about this or any other question, contact Brett Levanto (brett.levanto@arsa.org).

Click here to see what questions have been asked and answered…and keep a lookout for more.

A Member Asked…

Q: I have an inquiry about the upcoming expiration of FAA Order 8900.429. By this time last year, the FAA issued this order as an extension to 8900.380. However, I haven’t heard anything this year about extending the privileges granted to a 145 repair station to inspect incoming parts without the proper documentation (8130-3/EASA Form 1) and issue its own release document.

Am I misinterpreting the order? Is it expiring? Are we to only procure those items that have the proper documentation as directed by the U.S.-EU Maintenance Annex Guide after August 9, 2018? Thank you in advance for shedding any light on this situation, and I look forward to your reply.

A: “Orders” are directed at FAA employees and since the E-100 Form clearly establishes the rules that allow a repair station to perform an inspection (maintenance as defined in section 1.1), after which it must perform a final inspection before issuing an approval for return to service (per section 145.213) there is really no need for the agency to issue another update.

That said, ARSA will certainly query the agency to make sure it doesn’t attempt to circumvent the regulations and it keeps its workforce on the right track.

Update: The agency was contacted regarding the extension of the notice and advises that a new one will be issued before the expiration of 8900.429. A permanent “fix” is to be incorporated into change 7 to the MAG.

Editor’s note: This member question was submitted using the newly-available inquiry system run through ARSA’s new online member port. The association is still working to transition member contacts into the new system, but those that have already received access can now submit inquiries by logging in through arsa.member365.com/sharingnetwork.

Make ARSA’s Voice Your Own: Advertise

ARSA has a menu of advertising opportunities for arsa.org, the hotline and the ARSA Dispatch.

Take advantage of these great opportunities today to showcase your company, a new product or event. For more information go to arsa.org/advertise.
 

Stand Up for ARSA by Sponsoring in 2018

In order to provide world-class resources for its members, the association depends on the commitment of the aviation community. By sponsoring events and activities, supporters can help ARSA’s work on behalf of repair stations to endure.

Need a place to start? For information about opportunities, contact Vice President of Communications Brett Levanto (brett.levanto@arsa.org).

Member Spotlight – Exotic Metals Forming Company

Exotic Metals Forming Company has been family-owned since its founding in 1966. Its Aircraft Services unit began in 2002 and holds FAA, EASA and CAAC (China) certificates serving customers around the world.

More than 200 Airlines and repair stations use Exotic’s aerospace sheet metal products. The company typically manufactures and repairs engine ducting and exhausts, APU bleed and exhaust ducts, waste tubes and other assemblies. The company works with titanium, stainless steel and high nickel alloys.

To learn more about the company, which has been an ARSA member since 2004, visit www.exoticmetals.com.

Acoustically treated exhaust cone. Image courtesy Exotic Metals.

Have You Seen This Person? – Dorenda Baker, FAA

Dorenda Baker is the executive director of the FAA’s Aircraft Certification Service (AIR). Baker and her workforce are responsible for type certification, production approval, airworthiness certification and continued airworthiness of the U.S. civil aircraft fleet. She oversees more than 1,300 employees at the agency’s headquarters in Washington, D.C. in addition to more than 35 field offices in the United States and two overseas.

Baker speaks at the 2012 ARSA Symposium.

Baker has served in numerous aviation safety and oversight positions throughout her career, including in the Transport Airplane Directorate, the Small Airplane Directorate and the Aircraft Certification Division in Brussels. She was AIR’s deputy director prior to being named executive director in 2009 and was detailed to lead the interagency Comprehensive and Proactive Safety Management Approach Integrated Product Team for the Next Generation Air Transportation System (NEXTGEN) effort.

She and her staff work regularly with ARSA’s team on issues of industry concern – a commitment to cooperation she underscored in testimony before the House Transportation and Infrastructure Committee during a January 2015 hearing on FAA reauthorization issues:

“Certification is a dynamic process with both industry and the FAA having important roles and responsibilities critical to success. We are constantly working to improve the process. Both in response to Congressional direction, and on our own initiative, the FAA is working closely with industry to understand and respond to their concerns in order to improve the efficiency of the process without compromising the safety of the product.”

Through ARSA, the aircraft maintenance community has an avenue to actively participate in the cooperation described by Baker. Stay tuned for updates on the association’s support of AIR.

To read Baker’s full biography, click here.

To learn more about the Aircraft Certification Service, click here.

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Resources

ARSA strives to provide resources to educate the general public about the work of the association’s member organizations; should you need to provide a quick reference or introductory overview to the global MRO industry, please utilize AVMRO.ARSA.org.

AVMRO Industry Roundup

ARSA monitors media coverage on aviation maintenance to spread the word about the valuable role repair stations play globally by providing jobs and economic opportunities and in civic engagement. These are some of this month’s top stories highlighting the industry’s contributions.
You can explore these stories through ARSA’s Dispatch news portal.
 

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Industry Calendar