2022 – Edition 6 – July 5

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.

The President’s Desk
ARSA Works
Legal Brief
ARSA on the Hill
Quality Time
Training
Membership
Resources
Industry Calendar

The President’s Desk

The Julie Andrews Principle

By Terrell Siegfried, NORDAM Assistant General Counsel and Corporate Secretary & 2022 ARSA President

Think about your favorite things. Whether it’s a favorite shop or snack item, breakfast cereal or television show, you had to be introduced to it. Maybe you knew about it for a while…but something put you over the edge to give it a try.

What are some of those favorite things?

One way we cut through the “noise” of information overload we face every day is to rely on trusted sources. There may be some great commercials playing on your television, computer, tablet, or mobile device, but I often find myself unable to remember what they’re selling even if the content is entertaining. Rather, many of my favorite things were introduced to me by friends, family, or coworkers…there’s something particularly powerful about an enthusiastic review from those who know us best or share the same interests.

There really is no better advertisement than word of mouth.

That’s the case for the Aeronautical Repair Station Association. Most new ARSA members come from referrals. Believe it or not, the most common source cited by applicants is the Federal Aviation Administration; while the government doesn’t endorse trade associations, there are inspectors who see value in working with well-informed and resourced applicants and certificate holders.

I challenge ARSA members to re-take the top spot on that referral list. Each new member, or old one brought back, amplifies the association’s voice. The more names in our directory, the broader ARSA’s worldwide influence. Considering how far above its weight ARSA already punches, imagine the impact we could make by adding to its bulk.

If you need additional incentive, I have good news: The association’s “Members Getting Members” program will help you pay your annual dues and make good connections.

For every new member your company refers, you’ll receive a credit equal to 10% of the applicant’s dues on your next renewal. As an example, if you refer another repair station – perhaps a maintenance function contractor of yours – employing 30 people, its “R03” dues will be $1,800. When that new member pays, you’ll be set up for a $180 credit at your next renewal. The maximum credit you can earn is the total amount of your own dues, so active recruiting will cover your entire membership dues for the following year.

ARSA’s team has resources to help. From a toolkit containing a suggested email to placards for “Champions” to display at event booths or share in communications. You can contact ARSA for assistance, or you can get started very simply: Pick a colleague at another company and ask if they’re an ARSA member. See what they say and take it from there.

Use your influence for a great cause. Introduce someone to their favorite trade association today.

Terrell Siegfried 2022 ARSA president | NORDAM assistant general counsel and corporate secretary

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ARSA Works

FAA-EASA Conference – New Tech, Digitization, Workforce

Aviation safety professionals from around the world gathered in Washington, D.C. June 14-16 for the 2022 FAA-EASA International Aviation Safety Conference. ARSA was represented by Executive Director Sarah MacLeod and Executive Vice President Christian Klein. Representatives from leading aviation authorities, trade associations and companies discussed a range of topics, including digitization, alternative propulsion systems and workforce challenges.

ARSA Executive Director Sarah MacLeod pops up from behind her fellow “Evolution of Aircraft Maintenance” panelists at the FAA-EASA International Safety Conference.

MacLeod participated in a June 15 panel on the “Evolution of Aircraft Maintenance” along with Aircraft Electronics Association Vice President of Government and Industry Affairs Ric Peri (who moderated), FAA Aircraft Maintenance Division Manager Jackie Black, EASA Aircraft Maintenance Manager Raffaele Iovinella, Lufthansa Technik Senior Director of Engineering Services Ringo Schmelzer and Wisk Aero Policy Manager David Oord.

MacLeod and her colleagues discussed recent developments and innovative approaches to aircraft maintenance, with a focus on looming challenges associated with new practices and supporting novel/innovative aeronautical products. They agreed the data generated by modern aircraft systems will make maintenance even more effective, but noted challenges associated with managing and using vast quantities of information. Panelists discussed the need for regulators, operators, maintainers and manufacturers to share data to provide the broadest benefit.

ICAO SG Puts AMO Approval Front and Center

ARSA members are apparently not the only ones frustrated by redundancy in oversight of the maintenance sector. In his June 14 conference keynote address, International Civil Aviation Organization (ICAO) Secretary General Juan Carlos Salazar said that streamlining the certification of aircraft maintenance organizations (AMOs) is among his top priorities.

“[A]ircraft maintenance is still not considered ‘exportable’, and so States are required to apply their own approval requirements,” Salazar said.  “A consequence of this framework is that AMOs performing maintenance on an international basis now face a multitude of procedures, manuals, quality assurance systems and personnel requirements. And they’re further confronted by the obligation to undergo multiple inspections from the various States whose operators make use of their services.”

“Not only is this practice inefficient, and a significant burden to both airlines and AMOs, but it also falls short of establishing a stable platform for the standardization of maintenance practices,” Salazar said. “Past ICAO Safety Conferences have recognized this burden on industry, in addition to the importance of facilitating a globally harmonized approach to AMO approval and acceptance.”

Salazar said that as a step towards facilitating mutual acceptance, ICAO has developed a series of standards and guidance materials to promote the uniformity of AMO regulatory requirements. He said he hopes these will reduce the economic burden imposed on the industry by unnecessary certification and surveillance activities and encouraged regulators and industry to embrace them.

As with so many conferences, the networking opportunities provided during breaks, meals and receptions are as valuable as the presentation content. After two years of relative isolation, attendees at this year’s FAA-EASA meeting had the opportunity to rekindle old friendships and meet those who’ve recently joined an agency or the industry. Next year’s conference will take place in Cologne in June. ARSA members are encouraged to participate to ensure maintenance issues receive the attention they deserve.

ARSA Continues Press on Parts Documentation

On June 10, ARSA responded to the FAA’s reversal of its 2016 acceptance of the association’s E100 Form as a means of compliance with parts documentation requirements under the privileges of part 43 for the U.S./EU Maintenance Annex Guidance (MAG). In a letter to Acting Administrator Billy Nolen, ARSA took the FAA to task for capitulating to EASA on a paperwork issue with no safety benefit, requested reconsideration and sought action to encourage production approval holders to provide required documentation.

“The agency’s failure to stand up for its own rules is disappointing,” the letter from ARSA Executive Director Sarah MacLeod said. “The E100 results in a safety outcome fully consistent with FAA’s regulatory system, which EASA deemed equivalent to its own when entering into the underlying bilateral aviation safety agreement. It is up to the FAA to interpret its own rules; acceding to a foreign regulator’s demand for paperwork with no additional safety benefit does a major disservice to the hundreds of U.S. facilities with EASA approval (which are regulated directly by the FAA, not EASA).” (Emphasis in original.)

ARSA’s letter also challenged the FAA’s inconsistent interpretations of its own rules regarding the responsibilities of exporters. In 2013, the FAA told industry that export occurs when a part is sent to a repair station with EASA approval. The most recent correspondence said it occurs when the approval for return to service is issued. The question is central to the discussion of the E100; if export occurs when the part is sent by the PAH, it puts the burden firmly on it to provide an FAA Form 8130-3.

“The agency has thus simultaneously eliminated the two most practical avenues for a U.S. repair station to obtain an FAA Form 8130-3. On the one hand, the agency will no longer allow repair stations to exercise privileges granted by the agency under parts 43 and 145; on the other hand, U.S. PAHs are not obligated to provide the EASA-required documentation when sending parts to those repair stations. This puts U.S. repair stations in an untenable position,” ARSA told the FAA.

ARSA asked the FAA to:

(1) Reconsider its early June decision and accept the E100 Form.

(2) If not (1), then withdraw its position that export occurs when the release for return to service is issued and confirm export takes place when the part is shipped to an EASA-approved repair station.

(3) Confirm the agency could enforce § 21.335(a) against any person who transfers a new article and/or product to a domestic repair station with EASA approval under the above circumstances.

To read the full letter (including attachments covering all relevant exchanges with the FAA going back to 2013), click here.

An E100 By Any Other Name

As ARSA pushed the FAA to reconsider its capitulation on Form E100 (see “ARSA Continues Press on Parts Documentation”), the association’s publications team overhauled the document for U.S.-only use. The newly identified Form 103 provides an acceptable method for documenting a new article’s conformity to an approved design and suitability for installation for which an FAA approval for return to service can be issued.

Unlike its predecessor, Form 103 need not address EASA traceability requirements for “critical parts,” nor must it exclusively trace the article back to a production approval holder (PAH). The form’s instructions have been streamlined and updated to conform only to the FAA’s maintenance performance standard. If the article passes the inspection establishing it meets an approved design and is suitable for installation as required by
§ 43.13(b), a maintenance record can be issued under § 43.9.

The new Form 103 will become part of ARSA’s RSQM Compilation and is available for free as a tool for association members. It will remain a stand-alone document even if the FAA turns about (again) on the acceptability of the original E100 for use on work performed under the U.S./EU Maintenance Annex Guidance (MAG).

To request a copy of Form 103 (which will be provided along with all current “Tools for ARSA Members”) by visiting arsa.org/publications.

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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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.

Layman Lawyer – Don’t Kid Yourself

By Brett Levanto, Vice President of Operations

The January edition of the hotline overviewed the FAA’s current Compliance Program, tracking the evolution what began as a “philosophy” in 2016 and matured into a “program” with the full website-and-brochure treatment by 2021 (www.faa.gov/about/initiatives/cp). Through the program’s emphasis on so-called “just culture,” inspectors can help to foster greater safety through openness to recognizing inadvertent or quickly correctable non-compliance instead of resorting to “enforcement first” in all cases.

The program’s tenets exist entirely in guidance and in the preferences of the government personnel considering potential violations. The FAA’s investigation and enforcement procedures in 14 CFR part 13 have not been amended to reflect any standards related to inadvertent or quickly correctable deviations; the “justness” of the system depends on human interpretation at the point of discovery.

The program framework is defined in FAA Order 8000.373C. As described in the January installment of this series, the Order continues its predecessors’ reliance on agency guidance for determining what constitutes “intentional or reckless deviations from regulatory standards.” ARSA has raised objections to this specification, noting that guidance does not always comport with the rules.

What does that guidance say? The aforementioned program website has a page of relevant program orders, which should be reviewed (it references documents that have been canceled and replaced by newer versions, which take several steps to locate after following the initial reference). To understand the indoctrination given to each inspector, focus on some key points starting in FAA Order 8900.1 (the Flight Systems Information Management System, which is migrating into the agency’s Dynamic Regulatory System):

(1) Vol. 14, Ch. 1, Sec. 1 – Flight Standards Service Compliance Program

Overviewing the program for Flight Standards personnel, the Order explains “inspectors must use critical thinking in a problem-solving approach that stresses developing effective individual and organizational risk management environments. When appropriate, inspectors should engage collaboratively with airmen and organizations to encourage development of system-level risk mitigations on issues for which such methods may effectively ensure ongoing compliance.” (Emphasis added, see paragraph 14-1-1-7.E.2) The absence of critical thinking, stemming from outdated personnel and training practices with the FAA, has been repeatedly highlighted as problematic by ARSA and is a focus of a 2021 report by the Safety Oversight and Certification Advisory Committee’s Subcommittee on Workforce Development and Training.

(2) Vol. 14, Ch. 1, Sec. 2 – Flight Standards Service Compliance Action Decision Procedure

Providing applied instruction to inspectors, the Order explains “the use of a Compliance Action is the initial means of addressing all alleged, suspected, or identified instances of noncompliance.” A Compliance Action taken by the FAA should support or produce a Corrective Action by the certificate holder to “eliminate or mitigate” the “undesirable situation.”

Importantly, the process flow map (see paragraph 14-1-2-5) begins the inspector’s analysis with an important question: “Is there regulatory/statutory compliance?” If yes, the flow instructs documenting concerns and offering recommendations and then ends the process. “In communications with the [certificate holder], clearly identify that FAA concerns/recommendations are to make improvements or use best practices, but they are not regulatory requirements,” the Order states.

These FSIMS entries are instructive, but leave an open question: What are these “critically thinking” inspectors instructed regarding conduct that poses high-enough risk to require “strong enforcement”?

(3) FAA Order 2150.3 – FAA Compliance and Enforcement Program

The Order chronicles program office responsibilities, enforcement actions and investigative standards, including some basic definitions (in the context of legal enforcement) for deviations:

Reckless. A violation is reckless when the violator’s conduct demonstrates a gross disregard for or deliberate indifference to safety or a safety standard.

Intentional. A violation is intentional when the violator’s conduct is deliberate and the violator knows that the conduct is contrary to statute or regulation or is otherwise prohibited. (See chapter 5, paragraph 5.a.).

Following the thread of this guidance, critically thinking inspectors collaborate with certificate holders to correct deficiencies based on regulatory standards and severity of action. Great in theory, but don’t kid yourself that such a procedure by the government constitutes a mechanism of due process for the certificate holder – the entirety of the system rests on the supposed benevolence (and intelligence) of the inspector.

What happens when it is the inspector demonstrating a “gross disregard” for – or at best distinct ignorance of – the statutory and regulatory standards? Certificate holders end up facing enforcement actions despite ongoing compliance and are required to expend resources correcting the record.

When that happens, as you’ll see in this edition’s “real” Legal Brief (below), the parties must think like a lawyer (layman or not).

After reading that update, stay tuned for continuing assessment of the FAA’s Compliance Program.

Help continue this discussion. Submit your “layman lawyer” experiences or questions via arsa.org/contact.

Demand Your Due

By Christian A. Klein, Executive Vice President

In May, the FAA Chief Counsel’s Office withdrew a notice of proposed civil penalty (NPCP) issued against an ARSA member and client of our law firm accused of working outside its rating. While the withdrawal was good news for the company, it marked the end of a frustrating process that cost the company time and money to protect itself from agency ineffectiveness. This installment of “Legal Brief” reviews the details of the case and highlights important lessons.

The saga began during a routine FAA visit to the repair station in the summer of 2021. As described in the Enforcement Investigation Report (EIR), inspectors “noted that [the company] may be performing maintenance on civil articles outside of the rating currently issued to the repair station. These indications were noted from viewing a list of work orders issued by [the company] for the past two-year period.”

When the FAA inspectors asked company personnel what rating the facility used to perform maintenance on landing gear components, they stated the articles fell under its unlimited Accessory Class 1 Rating and provided a 2006 memo from FAA’s Flight Standards Division policy office titled “Landing Gear/Landing Gear Components Rating (Revised)”. The memo stated that a limited or class accessory rating is appropriate for landing gear components, even though a limited landing gear rating may be “preferred.” It also said that if a company is performing work on landing gear components under a Class 1 or limited accessory rating, it may continue to do so as such a rating “should be” issued for such work.

That should have been the end of the discussion … but it wasn’t. The FAA’s investigation continued and, despite all the agency’s platitudes about its compliance program, “just culture” and encouraging critical thinking by inspectors (see Brett Levanto’s “Layman Lawyer” column in this issue of the hotline), the inspectors refused to accept the agency’s own statement of its policy. It wasn’t until December, when the NPCP was issued and the agency’s lawyer got involved, that cooler heads started to prevail.

The company took advantage of the due process it was afforded to explain its position in writing. The company also ensured that its legal representative was in direct contact with the FAA’s Chief Counsel’s office before the scheduling of an informal conference so further time and money would not be wasted. The written response to FAA’s NPCP again cited the 2006 memo to support the proposition that the company was fully within its rights under its current ratings. In addition, the company made direct contact with the FAA’s policy division to verify the 2016 memo was still valid. It took a few months, but in May the company received a three-sentence letter from the agency withdrawing the NPCP and closing the matter.

The case is instructive for several reasons. First, it underscores current personnel challenges within the FAA. “Local inspector preference” and arbitrary, inconsistent enforcement are big problems. The agency needs to improve the training and professionalism of its own workforce. ARSA multi-year crusade to do so is even more vital as the industry and agency work to recruit the next generation of professionals and new aircraft technologies enter the marketplace.

Lesson two: don’t assume FAA inspectors are right and you’re wrong. It is common for inspectors to misinterpret the rules and require adherence to agency guidance rather than actual regulations. We say it (or something like it) almost every month somewhere in the hotline: you wouldn’t let the IRS do your taxes, so don’t let the FAA run your aviation business. To engage professionally with the agency, you must know the regulations and be able to articulate why you are in compliance.

Third, don’t let the agency walk you into a violation. According to the EIR in the ratings case discussed above FAA inspectors asked the company at least twice to “provide a list of work orders…that may have fallen outside of the ratings.” Wisely, the company’s representatives (without help from their lawyer) “stated that they could not provide the listing….as it could be construed as an admission.” Good for those company representatives! Had they fallen into the agency’s trap, the evidence could have been used by the FAA to infer that the company knew it was doing something wrong even though it was not.

The bottom line is this: the U.S. Constitution, Administrative Procedures Act, and FAA regulations require that due process be afforded the “accused” in an FAA enforcement action. Among other things, that means the right to appeal to an unbiased tribunal, notice of what you’ve being accused of and why, and the opportunity to present reasons why a proposed action should not be taken. Don’t take due process for granted. Understand your rights, understand the process, and, if you’re confident of your position, don’t give up!

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ARSA on the Hill

From Horrible to Better

By Christian A. Klein, Executive Vice President

The House Transportation & Infrastructure Committee recently approved legislation impacting FAA’s oversight of foreign repair stations. The atmosphere surrounding the bill’s recent markup was very different than the last time the T&I Committee considered similar legislation.

ARSA members will recall that in November 2019, House T&I Chairman Peter DeFazio (D-Ore.) rushed the Safe Aircraft Maintenance Standards Act (H.R. 5119) through his committee within days of introduction without amendment. ARSA led a coalition of aviation associations and companies that help prevent the bill from becoming law during the 116^th Congress, but the threat remained.

Earlier this year, we began to hear rumblings that airline mechanic unions were pushing DeFazio to reintroduce the legislation (remember: if a bill is not enacted into law during any given Congress, it dies and must be reintroduced the next Congress). DeFazio did so in March 2022 and ARSA sprang into action.

DeFazio’s new bill (H.R. 7321) was exactly the same as H.R. 5119; what was different was the willingness of Chairman DeFazio and the majority (Democratic) committee staff to adjust the legislation based on minority (Republican) and industry concerns before it was considered by the committee.

As a result, the legislation that emerged is not nearly as disruptive to industry as the original bill. For example, rather than imposing a foreign repair station certification ban to punish the FAA for failing to finish its drug and alcohol rulemaking, the bill would bar FAA personnel from traveling internationally for non-safety purposes (i.e., attending the Paris airshow) until the rulemaking is complete.

The relationships the association and its members built with lawmakers in recent years paid dividends. Some congressional offices provided vital intelligence about what was happening behind the scenes in the weeks leading up to markup and certain members of Congress who got an earful from ARSA and constituent repair stations in 2019 for the supporting the bill didn’t cosponsor it this time.

Of course, we’re not backing down. ARSA will continue to fight for aviation policy based on risk, safety, and facts, not fearmongering. Given all the other issues on the congressional agenda and looming elections, it’s unlikely H.R. 7321 will be enacted this year, but the T&I Committee’s recent action tees up the issue for next year’s FAA reauthorization debate (when the new Congress will be taking up the issue anew). The rest of this year must be used to further educate lawmakers about the repair station industry’s outstanding safety record and regulatory realities.

In 2019, we called H.R. 5119 “policymaking at its worst” (or, since the congressional process is sometimes likened to sausage-making, perhaps I should say, “at its wurst!”). ARSA still believes the legislation is unnecessary (“a solution in search of a problem”), but we commend Chairman DeFazio for taking industry concerns to heart and improving the bill. H.R. 7321 may not represent policymaking at it’s best, but it’s no longer horrible.

Being a Good (Facility Visit) Host

The 2018 FAA reauthorization process demonstrated that there is incredible power in educating members of Congress about how the industry works. The easiest way to ensure that lawmakers understand your business is to host them at company’s facilities.

Facility visits give members of Congress and legislative staff an opportunity to see first-hand and up close what your company does and how it fits into the economy and the aviation industry. It’s also an opportunity for lawmakers to meet employees (whose votes they want to win) and to show their commitment to the local business community.

With both congressional midterms (2022) and the next reauthorization cycle (2023), the time is perfect to (re)introduce your elected officials to your work. Here are the simple steps for inviting lawmakers to a facility visit. Representatives and senators have tremendous time demands, so be flexible in scheduling a tour and be willing to have a congressional staffer come and visit.

Steps to inviting your member of Congress:

Determine your lawmakers. Go to arsa.org/congress, scroll towards the bottom of the page to “Find Officials”, enter your address when indicated, and click the forward arrow button. On the next page, you’ll see a list of all your federal officials (president, vice president, senators, and representative).

Locate scheduler contact information. ARSA’s directory has a button for “staff” underneath each elected official’s pictures after you click on their name. Find the “scheduler” in the list, then go to the member’s website and search the menus for a staff directory. If you can’t find the scheduler or contact information, please contact us.

Draft an email to the scheduler. Use ARSA’s facility visit request template and enter the pertinent information where indicated. Either place on company letterhead and send as an attachment or copy into the body of an email.

Let us know you’ve sent the request. Either copy christian.klein@arsa.org on your request or forward a copy after the fact so the legislative team can follow up.

If you don’t receive a response. One week after sending the letter to your lawmaker, call their congressional office to verify that it received your invitation. Tell them your name, what company you’re from and when you sent the request; then ask about the likelihood of a tour and possible timing. Be sure to offer that staff may come if the member is not available. Congressional staff are the “issue experts” for constituents, and it’s just as important that they understand your business!

Schedule the meeting/visit. Once the site visit or meeting is scheduled, let ARSA’s legislative team know. We’ll send you an ARSA briefing packet with information about specific issues to raise, as well as useful background information about your congressional representative.

Enjoy! Make sure you capture the event with photographs. You can share these photos with the visiting member of Congress, who may even display a photo in his or her office. Give them a hat, t-shirt, or other takeaway with your company’s logo so they’ll remember the visit.

Let ARSA know what happened. Whether it’s a facility visit or office meeting, let ARSA know you’ve been in touch. As a politically active member, you may even be featured in ARSA’s publications! Be sure to forward us some of those pictures too!

Keep communication going. Setting up a visit or meeting is an important first step. Members find keeping an open dialogue with their congressional staff is beneficial to their business, and the industry. Although we encourage you to talk about the issues important to the industry, businesses face problems every day and sometimes congressional intervention can help. Keep those communication lines open!

Taking the initiative to invite a member of Congress to your facility is an easy and fun way to raise the profile of your company and your industry. And it’s a great way to build relationships with legislators that will serve your interests down the road.

If you have any questions about planning or scheduling a tour, let ARSA help.

The hotline will continue over the summer providing guidance for being an active constituent, covering town hall meetings and elections support.

Aviation Bills Move on the Hill

Aviation took center stage on Capitol Hill in recent weeks as the House of Representatives passed legislation to improve government coordination on advanced air mobility and the Transportation & Infrastructure (T&I) Committee reported bills impacting the aviation supply chain and repair station oversight.

The House passed the Advanced Air Mobility (AAM) Coordination and Leadership Act (H.R. 1339/S. 516) on June 14. The bill instructs the U.S. Department of Transportation to create an AAM interagency working group to evaluate, plan, and coordinate efforts regarding the safety, infrastructure, and security of the developing AAM ecosystem in the United States.

“If we want to keep leading the world in aviation, we can’t wait for technologies to come to us. Today, members from both sides of the aisle showed they are ready to take advantage of the next wave of transportation innovation by passing the Advanced Air Mobility Coordination and Leadership Act,” Rep. Sharice Davids (D-Kan.), the bill’s lead sponsor said.

The strong bipartisan vote in favor of the bill (380 to 30) puts pressure on the Senate to act on the legislation. To review more information on the bill, click here.

On June 15, the T&I Committee gave its approval to two additional bills. The first was the Safe Aircraft Maintenance Standards Act (HR. 7321), which was completely revised and renamed to address concerns raised by ARSA and other industry groups (be sure to read the background on the revision process in the piece above). The bill was changed as follows:

• New name. The bill is no longer “the Safe Aircraft Maintenance Standards Act”. The new name is the “Global Aviation Maintenance Safety Improvement Act.”
• While the new version of the bill still requires reporting by air carriers about where heavy maintenance (C and D checks) is performed, those reports (annually) will be less frequent and the information submitted will be protected as confidential.
• The original version of HR. 7321 required direct certification under part 65 of certain foreign repair station personnel; while the new version still requires personnel certification, it can occur under either part 65 or an equivalent foreign personnel certification system.
• CAT 2 countries are still in the crosshairs, but the implications of falling into CAT 2 status are now less disruptive. The new bill only prohibits new repair station certificate applications from CAT 2 countries and new contracts for heavy maintenance work.
• The new bill still directs the long-awaited drug and alcohol rulemaking to be finished within the year, but rather than punishing industry with a new foreign repair station certification ban if the rulemaking isn’t complete, the new bill bars the FAA from traveling internationally until the rulemaking is done (with exceptions for safety-related travel, travel in the national interest, etc.).
• The bill still allows unannounced inspections, but they are “unannounced” only to the repair station. The bill allows notification of foreign authorities, governments, etc. and those unannounced visits may be risked based and must take place with U.S. international agreements and diplomatic norms.
• The new version of the bill also directs a joint authorities review to examine the question of foreign repair station oversight on a global basis.

To read the full text of the Amendment in the Nature of a Substitute (ANS), click here.

ARSA still thinks repair station legislation is a solution in search of a problem. The industry’s safety record is exceptional and new, unnecessary mandates on the agency or industry will only divert resources. However, with House T&I Chairman Peter DeFazio (D-Ore.) retiring at the end of this Congress, this is his last opportunity to move legislation on an issue he’s considered a priority on throughout his career.

Whether or not the bill moves further this Congress (time is short and there’s no obvious vehicle nor Senate companion), given that there are a handful of pro-labor GOP members who support DeFazio’s bill, the T&I Committee’s Republican leadership cannot dismiss the legislation out of hand. Even if Republicans (who have been less susceptible to the false safety arguments used by the bill’s proponents) are running the T&I Committee and aviation subcommittee next year, there is the risk that the legislation could be added as an amendment on a bipartisan basis during a future FAA bill markup.

By negotiating now, the T&I Committee has reframed the conversation and crafted a much more reasonable bill that limits disruption, recognizes our bilateral commitments and minimizes the risks of retaliation against U.S. industry. ARSA will continue to lead lobbying efforts on maintenance issues.

On June 15, the T&I Committee also reported the American Aerospace Supply Chain Resiliency, Innovation, and Advancement Act (H.R. 8049). The bipartisan bill, which is sponsored by the chairman and ranking members of both the T&I Committee and aviation subcommittee, would create a new industry-government task force to investigate supply chain problems and recommend solutions. 

ARSA members wishing to support the association’s legislative program should contact ARSA Executive Vice President Christian Klein for help coordinating a congressional visit to your facility this summer (you should also read the update on hosting facility visits in this edition of the hotline).

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Quality Time

Editor’s note: The views and opinions expressed by contributing authors do not state or reflect those of ARSA and shall not be used for endorsement purposes.

Georgia on My Career-development Mind

By Vance Zeumer, Manager – PMA Engineering, Chromalloy

Chromalloy – ARSA Corporate Enterprise Member – is an active participant in the Georgia Rural Collaborative Coalition. Meetings include representatives from a wide cross section of education professionals, state and county government, outside consultants, education auditing boards as well as the Air Force, Army, and Civil Air Patrol.

The coalition’s focus is on select rural counties in Georgia, but its principles can be applied to any county or school system and offer guidance for the broader technical skills development community. Mentors and industry partners are being cultivated near target counties, but participation in the coalition comes from across the entire state. Progress reports from action committees focus on military and aviation industry mentorship. The committees are building programs targeting students with relevant interests in aviation, including piloting, maintenance, engineering, manufacturing, computer science, and advancing technologies for electric aviation and advanced air mobility. Students can be connected to opportunities in a Georgia Charter and Career Academy (CCA) or an industry partner.

The initial goal is to help high school students pursue CCA training opportunities. Ideally, training would lead to an industry recognized certificate. Chromalloy has recognized that active participation in the Georgia effort (or seeking similar state-wide opportunities elsewhere) places maintenance providers at the forefront of hiring these students.

To encourage other ARSA members participation in this and other coalitions, I am pleased to provide an opportunity for input to Georgia’s CCA curriculum so proper skills are developed for the maintenance community in this state, which can lead to mentorship and guidance to candidate students by employers in other states.

The August meeting is scheduled for Aug. 31 in Eatonton, Georgia on Aug. 31; it is open to any Georgia employer. Even if you are not from Georgia, though, the efforts being made, and the resources being created can be helpful to any employer in the aviation industry.

Please contact me at vzeumer@chromalloy.com for ways to get involved.

McKinsey & Company articles

• Defining the skills citizens will need in the future world of work
• The future of work in America: People and places, today and tomorrow
• Thomas L. Friedman and James Manyika: The world’s gone from flat, to fast, to deep

Southern Regional Education Board (SREB)

• Topic: Workforce and Education
• Partnerships to Align Education and Careers
• Industry-Education Partnerships – Process: How to Forge Partnerships

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Training

Make ARSA Training Work

ARSA’s online training program represents its most-valuable benefit to the aviation industry: knowledge gained through training and experience. The association’s team has turned its decades of work on behalf of aviation maintenance into more than 80 hours of on-demand content.

While sessions are available for registration at any time – ARSA member discounts available – companies can also incorporate the association’s training into their regular programs:

(1) Subscription. Make up-front, bulk purchases of training hours. The details of each subscription can be customized, including focus on specific subject areas (e.g., human factors) or options for specially-priced session access after the initial hours have been used.

(2) “Championing” a session. Guarantee a certain number of attendees for training in a particular topic that will also be made available for general registration. Variations include open registration for a live session (i.e., company personnel participate at the same time as general registrants) or a company-specific live event for which a recorded version (not including any company-specific information) is made available for on-demand registration.

(3) Tailored training. Contract ARSA’s management firm Obadal, Filler, MacLeod & Klein, P.L.C. to produce or modify training specific to your organization. The team can then re-record it (or offer it as a separate live session) for ARSA’s training program. Tailored programs are priced differently from ARSA’s hourly rate and are administered by OFM&K, which allows for a client engagement and related attorney-client privilege for all discussion.

Click here to go directly to the training platform (operated by ARSA’s management firm) and begin reviewing available sessions.

For more information about ARSA’s training program, review the menus below. If you have questions or would like to learn more about ways to integrate ARSA training into your own program, contact Vice President of Operations Brett Levanto (brett.levanto@arsa.org).

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.

What training do you need? Contact ARSA to let the association know and help get it developed.

Contract Maintenance – Functions and Vendors

This session provides information on obtaining approval of maintenance functions and selecting and categorizing maintenance function vendors properly under 14 CFR part 145.

Instructor: Sarah MacLeod

On Demand – Available Anytime

Click here to register and get access for 90 days.

Registration for an ARSA-provided training session includes:

• Access to the on-demand, recorded version of the webinar to be made available after the live session is complete (or at time of purchase, for on-demand classes).
• A copy of the presentation and all reference material with links to relevant resources and citations.
• Upon completion of the class as well as any test material, a completion certificate.

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.

Duty-Free Aviation Parts Importation

Under U.S. law and international agreements, many aircraft parts may be imported into the United States duty-free. However, inconsistent interpretation of Customs rules has forced repair stations to divert resources to navigating a complex regulatory web and in some cases paying import duties they do not owe.

ARSA’s Advisory 2017-01 provides an overview of the World Trade Organization’s Agreement on Trade and Civil Aircraft and rules adopted in the United States to implement the treaty obligations. The document also delves into relevant Customs regulations and legal opinions to answer a basic question: Must parts be airworthy to qualify for duty-free treatment? ARSA’s conclusion, with which Customs concurs, is that airworthiness is not a relevant factor in the duty-free determination. The association’s guidance examines the various conditions that must be met to avoid tariffs and identifies best practices to properly document imports. The association has an on-demand training session (see below) about the parts importation issue.

The guidance is available for free to ARSA members and may be ordered by visiting arsa.org/publications or completing the form below.

To see all of the association’s resources for establishing duty-free rates, visit  arsa.org/regulatory/customs.

On Demand Training: Duty-Free Parts Importation

Get Your Advisory Now (Members Only)

Regulatory Compliance Training

Test your knowledge of 14 CFR §§ 11.51 & 11.53, requesting more time to comment.

Click here to download the training sheet.

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Membership

Don’t Take ARSA’s Word For It – Member Feedback

The association focuses its energy on serving the aviation community. Most of ARSA’s success stems from showing rather than telling; new members predominantly come through referrals and recommendations, and old ones return because of years-long experience in the association’s value.

Occasionally, the team shares evidence of its impact on those who depend on ARSA as an “insurance policy” against an uncertain world. Don’t take our word for it…listen to some of the feedback provided to this year’s member survey:

How satisfied are you with your ARSA membership (1=Not at all satisfied; 5=Extremely satisfied)?

93 responses; Average score: 4.55

Open ended comments:

A voice to speak on behalf of all Repair Stations is priceless.

Always very helpful with regulatory questions.

ARSA is consistent. There is a lot of inconsistency elsewhere these days.

ARSA provides an excellent cross-section of regulatory and practical aviation maintenance issues, training, and compliance methods. The political nature of the industry is the major downside…Repair Stations are expected to do more with less!

ARSA seems to be my main source for regulatory changes to our industry. Without ARSA, I may never find out about regulatory changes until it’s too late.

ARSA was very helpful with the pandemic explanation detail with money and working with the United States to get funds.

ARSA works on issues that benefit us as well as the entire industry. They understand (and communicate) that the things we need will take years to achieve. It’s all about keeping the pressure on and engaging the system on topics that can generate results for the membership.

Gives us confidence and peace of mind to have ARSA’s knowledge and history of backing small business’s especially regarding regulatory guidance and enforcement.

Good support when needed, a positive organization for the industry with training and advocacy.

Quick Question – Parts Documentation for Bilateral Compliance

The FAA recently withdrew its of approval of ARSA’s E100 form, which has been used by U.S. repair stations for more than half a decade to satisfy parts documentation requirements for new articles under the U.S.-EU Maintenance Annex Guidance and Technical Implementation Procedures. Your response to the following questions supports ARSA’s efforts to clarify relevant policy and find a workable alternative.

Please respond to this month’s Quick Question only if you represent a part 145 repair station in the United States with European Union Aviation Safety Agency (EASA) approval.

For purposes of these questions, “new parts” refers only to parts purchased by your company for installation on a product under EASA’s jurisdiction.

If the embedded survey does not appear below, use the following URL to access the questionnaire in your browser: https://www.surveymonkey.com/r/bilateralparts.

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.

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 June:

New Members
Aeroneuf Instruments Ltd., R02
Aviation Instruments Repair Specialists (AIRS), Inc., R03
Heliblade, LLC, R01

Renewed Members
Aerospace Engineering Group, S.L., R03, 2014
Aerospace Turbine Rotables, Inc.-Texas, R01, 2016
Aeroworx, Inc, R02, 2010
Air Transport Components, LLC, R03, 2015
Aircraft Specialties, Inc., R03, 2019
Ametek Ameron, LLC dba Ameron Global Product Support, R01, 1989
Aviation Repair Resources, Inc. (ARR), R02, 2009
Bemidji Aviation Services, Inc., R03, 2017
Eastern Airlines Technic Co., Ltd., R04, 2017
F&E Aircraft Maintenance (Miami) L.L.C , R06, 2012
Fleet Support Services, Inc., R01, 2013
Heli-Parts Nevada LLC, R02, 2005
Houston Aircraft Instruments, Inc., R01, 2002
Marvel-Schebler Aircraft Carburetors, LLC, R02, 2011
MT Texas, LLC, R03, 1990
MTU Maintenance Hannover GmbH, R06, 2007
S & T Aircraft Accessories, Inc., R02, 2003
SAI Flight Support Company, R01, 2016
Southwest Airmotive Corp., R01, 2012
Warner Propeller and Governor Co., LLC, R02, 2010

Showing Your Workforce

In partnership with Airlines for America and the Regional Airline Association, the association invites members to support new analysis of the aviation maintenance workforce. Oliver Wyman CAVOK, the aviation consulting firm that produces ARSA’s Annual Global Fleet & MRO Market Assessment, is collecting data to refresh its 2017 assessment of technician employment demand.

Based on Oliver Wyman’s previous findings and the association’s own research, ARSA Vice President of Operations Brett Levanto told Congress in 2018 that repair stations faced a “gathering storm” that has long since broken over the maintenance market. That messaging produced an FAA reauthorization law focused on recruitment and talent development, including multiple studies of the industry’s needs and authorization of grant programs that have since become popular to the point of being under-resourced.

Congressional staffers are collecting priorities for the next FAA reauthorization cycle – the current law runs into 2023 – and the association will be equipped to continue its leadership. Repair stations can assist by answering Oliver Wyman’s call for data.

Key Study Information

• Oliver Wyman is collecting information directly from companies including age profiles of the workforce, attrition rates, and sources of new technicians.
• Any information shared will remain confidential and will only be presented in aggregated format.
• No personally identifiable information is required.
• A review of the initiative from Oliver Wyman can be downloaded in PDF by clicking here.

Participation Instructions

• Download the Excel Worksheet template by clicking here.
• Complete the spreadsheet and submit to Oliver Wyman Technical Specialist Carlo Franzoni (carlo.franzoni@oliverwyman.com). Contact Mr. Franzoni with any questions regarding the study.
• Companies with multiple facilities should coordinate to ensure complete coverage of their business data.
• The report team is considering final submissions, if you can participate please contact Franzoni as soon as possible.

A Member Asked…

Q: Can a repair station separately inspect/repair a piece part or sub-component of a top assembly listed on the repair station’s capabilities list? It is my understanding that if you have an article in your approved capability list, then any sub-component/part mentioned in Component Maintenance Manual (CMM) with checks/inspections can be worked and approved for return to service on an FAA Form 8130-3.

A: Though a search of the Flight Standards Information Management System (fsims.faa.gov) didn’t return any obvious guidance, ARSA got a response to another question that may help: In 2015, the association sought confirmation that repair stations could make continue-in-service determinations for “sub-articles” when rated to perform maintenance on the top assembly. The FAA was expansive about the certificate holder’s authority regarding those internal or attached articles:

The privileges and limitations of repair stations, under [14 CFR §§] 43.3(e), 43.7(c) and 145.201, allow for the performance of maintenance on all articles for which [repair stations] are rated. Holding ratings for those articles (‘top assembly’) also signifies that same repair station is qualified and authorized to maintain all “sub-articles” associated with the ‘top assembly’.

To ensure your repair station is capable of performing the work contemplated, its self-evaluation – made in accordance with § 145.215(c) – needs to consider the work required on the subcomponents of the article(s) listed. If the repair station is unable to accomplish maintenance functions on the subassemblies, it will need to exercise its privilege to contract that work.

To read the entire response from the FAA, click here.

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

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 Operations Brett Levanto (brett.levanto@arsa.org).

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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.

About ARSA PAC

ARSA’s Political Action Committee helps elect congressional candidates who share ARSA’s commitment to better regulation and a strong aviation maintenance sector.  But ARSA is prohibited from sending PAC information to members who haven’t opted in to receive it.

U.S./EU Maintenance Annex Guidance

See all of the association’s public updates since 2012 on the Maintenance Annex Guidance between the United States and European Union. The page focuses in particular on matters related to parts documentation issues arising since MAG Change 5 was issued in 2015.

Industry News 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.

Industry Calendar

the hotline is the monthly publication of the Aeronautical Repair Station Association (ARSA), the not-for-profit international trade association for certificated repair stations. It is for the exclusive use of ARSA members and federal employees on the ARSA mailing list. For a membership application, please call 703.739.9543 or visit arsa.org/membership/join. For information about previous editions, submit a request through arsa.org/contact. This material is provided for educational and informational purposes only. It does not constitute legal, consulting, tax or any other type of professional advice. Law, regulations, guidance and government policies change frequently. While ARSA updates this material, we do not guarantee its accuracy. In addition, the application of this material to a particular situation is always dependent on the facts and circumstances involved. The use of this material is therefore at your own risk. All content in the hotline, except where indicated otherwise, is the property of ARSA. This content may not be reproduced, distributed or displayed, nor may derivatives or presentations be created from it in whole or in part, in any manner without the prior written consent of ARSA. ARSA grants its members a non-exclusive license to reproduce the content of the hotline. Employees of member organizations are the only parties authorized to receive a duplicate of the hotline. ARSA reserves all remaining rights and will use any means necessary to protect its intellectual property.

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