2023 – Edition 1 – February 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.

The President’s Desk
2023 Annual Conference
ARSA Works
Legal Briefs
ARSA on the Hill
Aviation Life Calendar
Training
Membership
Resources
Industry Calendar

The President’s Desk

Executive Eye Opener

A day full of meetings.

It might evoke a certain sense of despair – time lost in a conference room or in front of a videoconference screen can be painful. Rather than riding a desk, we’d rather be working – turning a wrench, moving aircraft, or dealing with a customer – getting business done instead of just talking about it.

There’s one day that’s different.

Each March, a small collection of ARSA’s most engaged members kicks off the association’s Annual Conference with sponsor-only Executive to Executive Briefings. This year, Tuesday, March 14 the “E2E” sessions with senior leaders from U.S. executive branch agencies commences; the focus is on those that impact aviation businesses but may not get our full attention throughout the year. So, while the Department of Transportation is always represented at the highest level, so too are the Departments of State, Commerce, and Labor…with past visits to the Executive Office of the President at the White House and calls on some key industry association allies.

We used to spend the day hustling from office to office in Washington, D.C. The challenge of intracity transportation and repeated federal building security checks was worth getting face time with key leaders in their own offices. Having re-imagined the event since the pandemic, we now use the Ritz-Carlton to alternatively host special guests and connecting online. In between, our small collection of industry executives reflects on what we’ve heard, shares behind-the-scenes details, and throws out ideas for better policies to meet our business needs.

It’s a day of meetings that garners results. When all is said and done, the time spent also leaves ARSA and the industry better informed. Thanks to the intelligence gained and shared – not to mention that of those in the room to begin with – we’re able to help steer a course for the entire maintenance community.

It’s still possible for you to get a seat at the E2E table – ARSA’s team will consider late requests for sponsorship – but every member company should ensure it is represented at the larger Conference from March 15-17. It is the maintenance community’s premier substantive event…come benefit from that substance while adding to it yourself.

See the full agenda, get more information, and register on the event page.

If you see me at the Ritz, ask me about E2E. It’s always an eye opener.

Josh Krotec 2023 ARSA president | First Aviation Services, Inc. senior vice president

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2023 Annual Conference

Register Now

March 14-17, 2023 Arlington, Virginia and Washington, D.C. with Livestream Options for Online Participants
Sponsors	Registration	Information	Hotel Reservations

Experience the maintenance community’s premier event. Join ARSA members and invited guests from around the world to engage governments, network with peers and improve the state of the aviation world. In-person attendees may select a “Conference Ambassador” to receive free livestream access back at the fixed location.

Book Your Room

March 14-17, 2023 Arlington, Virginia and Washington, D.C. with Livestream Options for Online Participants
Sponsors	Registration	Information	Hotel Reservations

A block of rooms is available at preferred price for Annual Conference attendees at the Ritz-Carlton, Pentagon City in Arlington, Virginia. The hotel will host most Conference activities and is convenient to the Metro as well as Washington Reagan National Airport (DCA).

The deadline for reservations is Feb. 17. To access the Ritz-Carlton’s event page and make your reservation, click here.

See the Agenda

March 14-17, 2023 Arlington, Virginia and Washington, D.C. with Livestream Options for Online Participants
Sponsors	Registration	Information	Hotel Reservations

The 2023 Annual Conference is shaping into familiar form: four days of executive branch briefings, grassroots legislative advocacy and discussions focused on international regulatory compliance. Invited speakers include senior government officials, representatives of aviation safety agencies from four continents and experienced industry colleagues. To see the complete agenda (updates will be made up until the Conference), visit the event page.

The schedule at a glance:

Executive to Executive Briefings: Tuesday, March 14, 2023

Industry executives participate in meetings organized by ARSA with senior executive branch officials. Participation is limited to Annual Conference sponsors.

Legislative Day: Wednesday, March 15, 2023

After a morning of briefings, participants meet with members of Congress as well as office and committee staffers.

Annual Repair Symposium: Thursday, March 16, 2023

The centerpiece of Conference week, ARSA convenes a full day of substantive panel discussions covering key regulatory compliance and business issues.

Member Day: Friday, March 17, 2023

ARSA’s leadership briefs members on the state of the association as well as goals and priorities for the coming year. Participants then close out the event by choosing from one of two concurrent breakout sessions.

Sponsor Salute

March 14-17, 2023 Arlington, Virginia and Washington, D.C. with Livestream Options for Online Participants
Sponsors	Registration	Information	Hotel Reservations

Thank you to the 19 organizations that have committed to sponsor ARSA’s 2023 Annual Conference. From digital materials to evening refreshments to full days of content, these companies are dedicated to the Conference’s success.

Learn more about how their commitment produces a world class event on the event page.

Platinum

Gold

Silver

Supporter

Contributor

Annual Meeting Notice

The ARSA Annual Member Meeting is held in conjunction with the Annual Conference; this year it will take place during the Breakfast and Annual Report on Friday, March 17 at 8:00 a.m.

ARSA leadership will address members regarding the state of the association. Attendees are welcomed and encouraged to raise matters relevant to ARSA and the industry it represents.

If you are unable to attend – conference registration is open – but would like to submit comments/questions to ARSA’s board, please do so via the mechanisms available on arsa.org/contact.

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ARSA Works

What ARSA Has Done Lately – Fourth Quarter 2022

Each quarter the board of directors receives reports on the association’s activities and fiscal health. Step into a board member’s shoes with this overview of the financial, operations, legislative and regulatory reports highlighting advocacy on behalf of aviation safety 2022’s fourth quarter.

Fiscal Health

The association completed its fiscal year (Jan.-Dec.) in line with the year’s budgeted expectations.

Membership

• Periodical distribution management and procedures were established.
• Following the pattern used by membership for financial and renewal management, communication with advertisers will commence.

Regulatory Advocacy

• Delivered, through leadership of Working Group, report, and recommendations to the Aviation Rulemaking Advisory Committee on reconciling U.S. repair station regulations and guidance (reported publicly in Q1 2023).
• Collected feedback regarding “foreign” certificates or approvals held by ARSA members (see “quick questions” in Operations report for collected data).
• Commented on DOT ANPRM “Electronic Signatures, Forms and Storage for Drug and Alcohol Testing Records.
• Collected feedback on establishment of voluntary Safety Management System (SMS) programs (see “quick questions” in Operations report for collected data).
• Participated in Office of Information and Regulatory Affairs (OIRA) engagement session on SMS rulemaking (the January NPRM does not include repair stations).
• Reported multiple updates related to acceptance of applications for UK approval of U.S.-based repair stations and ending of “special arrangement” for continuity in aircraft certification projects.
• Shared EASA-provided documentation related to new SMS requirements for foreign holders of EASA Part 145 approvals not subject to a bilateral agreement.
• Reviewed Federal Trade Commission Policy Statement Regarding the Scope of Unfair Methods of Competition Under Section 5 of the Federal Trade Commission Act updated and released November 10, 2022 and developed outline for engagement with ad hoc committee.
• Developed strategy addressing parts documentation misinterpretation in U.S./EU BASA.

Legislative and Lobbying

• Coordinated opposition to Global Aircraft Maintenance Safety Improvement Act (H.R. 7321); despite efforts by Rep. Peter DeFazio (D-Ore.) and union allies, legislation was not enacted in 117^th
• Continued to lead coalition in support of full funding for Sec. 625 workforce grant programs; maintenance program funding was doubled for FY 2023 to $10 million.
• Participated in multiple meetings with members and allies to discuss 2023 FAA reauthorization priorities.
• Supported visit by Sen. James Lankford (R-Okla.) to NORDAM.
• Coordinated PAC check delivery by NORDAM to Rep. (now Sen.) Markwayne Mullin (R-Okla).

Communications and Surveys

ARSA in the News – Selected Industry Coverage

House Passes Foreign Repair Station Bill
AINOnline
Oct. 5, 2022
The Aeronautical Repair Station Association called the bill “a solution in search of a problem” and added, “The industry’s safety record is exceptional and new, unnecessary mandates on the agency or industry will only divert resources.”

ARSA Seeks Simplicity and Flexibility in D&A Recordkeeping
AviationPros
Oct. 13, 2022
As it often does, the association provided the agency with a regulatory-based rationale for minimizing changes to existing rules while allowing the broadest possible range of options for those seeking to comply.

Global Survey Says Skills Gap Across the Board
International Air Transport Association
Oct. 26, 2022
For Christian Klein, Executive VP of the US-based Aeronautical Repair Station Association (ARSA), the workforce challenge was around even before COVID hit.

United Launches Aircraft Technician Training Program
Nov. 2, 2022
In this May’s edition of the Aeronautical Repair Station Association’s (ARSA) annual industry survey, 72 percent of participating companies cited difficulty with finding or retaining workers as the most significant threat to the industry.

ARSA-placed Industry Editorials and Content

Bringing Advertising In-house

• Membership took complete control of periodical distribution and Communications has controlled website management since Nov. 4. New procedures in place for both.
• Sent 10 Dispatch newsletters and two hotlines in quarter.
• Expanding distribution of OFMK Daily Intelligence to include ARSA member primary contacts (Conference rollout).
• Finalizing advertising procedures, terms, and conditions, and contracting for advertisers. Details at org/news-media/advertising.
• Placement options available to new/renewing advertisers – based on sales history and management capabilities
  • org
  • Newsletters – All periodicals
  • Bundles and Discounts
    • For each additional advertising placement purchased together, ten percent (10%) will be taken off the total cost. Bundle discount cannot exceed thirty percent (30%) of total.
    • ARSA members receive ten percent (10%) discount on the total cost of all advertising purchases (including bundles) placed at the same time.

Surveys

• Quick Questions—
  • Foreign Validations (October) (17 responses)
  • SMS Implementation (November) (39 responses; 2019 results published)

Events, Meetings and Training

Events—Annual Conference

• 2023 Annual Conference (March 14 – 17) at Ritz Carlton Pentagon City (in-person and livestreamed).
  • Launched registration in December.
  • Speaker recruitment and confirmation underway; Keynote, Opening Salvo and E2E Invitations out.
  • Sponsor recruitment on-going; unveiled publicly in mid-January. See the event page for commitments.

External Meetings

• Sarah participated in multiple meetings of FAA’s Aviation Rulemaking Advisory Committee (ARAC) and working groups.
• Brett and Sarah coordinated several meetings related to client issues regarding ARSA’s repair station manual.
• Christian attended TSA Aviation Safety Advisory Committee (ASAC) and insider threat subcommittee meetings.
• Sarah attended multiple meetings regarding ODA Standards.
• Christian took part in multiple quadrilateral Maintenance Management Team planning meetings.
• Brett participated in multiple Youth in Aviation Task Force meetings.
• Christian had lunch with for Senate Aviation Subcommittee staffer Mike Reynolds in advance of the ARSA Board meeting (Oct. 3).
• Christian attended an IATA Safe Conference workforce panel discussion (Oct. 6).
• Christian traveled to Dubai to participate in an IATA Safety Conference workforce panel (Oct. 24).
• Christian participated in the National Aviation Symposium at Purdue University (Nov. 7).
• Sarah took part in the initial AIR/ARSA touch base discussion (Nov 14).
• Brett attended an FAA webinar on the UK MIP (Nov. 15).
• Brett attended the Cargo Airline Association Reception (Nov. 15).
• Christian virtually attended an International Air Transport Association Aviation Skills Working Group meeting (Nov. 17).
• Brett attended a White House engagement session on the regulatory process (Nov. 17).
• Brett met with the Aircraft Electronic Association regarding apprenticeship models (Nov. 30).
• Christian remotely attended the EASA Engineering & Maintenance Technical Committee meeting (Dec. 1).
• Sarah met with Kawehi Lum of the FAA to discuss Data Collection Tools (Dec. 14).
• Brett met with Livia Hayes, Carlo Franzoni, Madeline Stelle, Utkarsh Mishra, Derek Costanza, and Oksana Bardygula of Oliver Wyman CAVOK to review new workforce analysis and plan for release of 2023 Global Fleet & MRO Market Report (Dec. 15).
• Sarah met with Stacy Wells of the FAA to discuss new hire training for aviation safety inspectors (Dec. 20).
• Sarah met with A4A to discuss ICA (Dec. 20).

Industry Seeks Relief from Bilateral Parts Documentation Squeeze

On Jan. 31, ARSA coordinated submission of a letter to FAA and EASA executives seeking to correct misinterpretation of aircraft parts documentation requirements under the U.S./EU bilateral aviation safety agreement (BASA).

The letter to the FAA-EASA Joint Maintenance Coordination Board (JMCB) and Certification Oversight Board (COB) members established by the BASA was signed by 14 organizations, including industry trade associations and aerospace companies. The industry has been pressing American and European regulators since 2015 to correct problematic guidance that erroneously requires U.S.-produced aviation articles to have an FAA Form 8130-3 issued by the production approval holder to be fitted during maintenance performed in the United States subject to the bilateral.

The problem emerged when the form was mandated by Maintenance Annex Guidance (MAG) Change 5 verbiage and has endured through subsequent changes. In 2016, the FAA applied its regulations which allow repair stations to inspect new parts, document the inspection on an ARSA-designed form and issue an FAA Form 8130-3 with a right-side signature. However, in 2022, after almost six years in use, the FAA bowed to EASA pressure and rescinded its policy.

“The agencies’ misinterpretation has resulted in the inclusion of improper, impractical, and unnecessary parts documentation requirements in the MAG. Repair stations are in an untenable position, squeezed on one side by [EASA] documentation rules for European Union PAH’s and on the other by the FAA’s regulatory system, which does not require an FAA Form 8130-3 for new parts…. As a consequence, new parts from U.S. PAH’s received without an Form 8130-3 are supposedly ineligible for installation in work performed under the MAG by U.S.[-based] repair stations. This has created considerable inefficiencies, undermined the effectiveness of the bilateral relationship, and added to challenges resulting from recent supply chain disruptions,” the letter said.

The letter requested the following to correct the situation:

• Confirmation by JMCB that the applicable EASA Special Condition in the BASA (Annex 2, Appendix 1, Sec.1.1.1((b)(iii)) requires the FAA Form 8130-3 be used as an approval for return to service document for maintenance performed.
• Confirmation by both the COB and JMCB that a repair station’s installation of a new article is maintenance, not an export of each article installed therein.
• Amendment of the MAG, which merely interprets the plain language of the Special Conditions, to align with the language and intent of the BASA.

To read the full letter, click here.

In addition to ARSA, the letter was signed by representatives of the following organizations:

Airlines for America
Aircraft Electronics Association
Aviation Suppliers Association
Cargo Airline Association
Helicopter Association International
International Air Transport Association
Modification & Replacement Parts Association
National Air Carrier Association
National Air Transport Association
National Business Aviation Association
Gulfstream
Moog Aircraft Group

To review the chronicle of industry efforts related to the MAG, visit arsa.org/mag.

SMS NPRM Issued Without Part 145

On Jan. 11, the FAA issued a long-awaited notice of proposed rulemaking (NPRM) that would update and expand the requirements for safety management systems. The proposal’s applicability does not include 14 CFR part 145.

NPRM: Safety Management Systems
Published 01/11/2023
Docket #: FAA-2021-0419
Comments due: 03/13/2023

FAA Summary: The FAA proposes to update and expand the requirements for safety management systems (SMS) and require certain certificate holders and commercial air tour operators to develop and implement an SMS. This proposed rule would extend the requirement for an SMS to all certificate holders operating under the rules for commuter and on-demand operations, commercial air tour operators, production certificate (PC) holders that are holders or licensees of a type certificate (TC) for the same product, and holders of a TC who license out that TC for production. The FAA also proposes this rule in part to address a Congressional mandate as well as recommendations from the National Transportation Safety Board (NTSB) and two Aviation Rulemaking Committees (ARCs). Additionally, the proposed rule would more closely align the United States with Annex 19 to the Convention on International Civil Aviation. This proposed rule is intended to improve aviation safety by requiring organizations to implement a proactive approach to managing safety.

Stay tuned to ARSA for more updates on the regulatory process for this rule. Register for the 2023 Annual Conference to hear from the FAA and EASA about each regulator’s efforts related to SMS and then participate in a breakout session covering programs for small businesses.

MacLeod Selected for ODA Panel

On Jan. 5, the FAA notified ARSA it had selected Executive Director Sarah MacLeod to serve on the Organization Designation Authorization Expert Panel. MacLeod will serve the panel as a legal expert as defined by the “Membership” section of the September 2023 solicitation published in the Federal Register for nominations.

The panel was mandated by the Aircraft Certification, Safety, and Accountability Act to review safety management functions and related factors impacting ODA holders. Panelists are required to deliver a report to the administrator 270 days after the body’s first meeting – which has yet to be scheduled – recommending actions to address systemic deficiencies.

“[MacLeod’s] leadership and legal capabilities have instilled knowledge of both government and business requirements and the balance needed to ensure aviation safety worldwide,” ARSA Managing Director & General Counsel Marshall Filler said in his cover letter for MacLeod’s nomination. “She is known for providing sound guidance based firmly on the law without prejudice or bias. Her career has focused on developing public policy in the aviation safety arena within the scope of the Review Panel’s mandate. Sarah’s familiarity with the industry and the government enables her to readily obtain any information needed to fulfill the Review Panel’s duties from experts in aviation and aerospace.”

Stay tuned for updates from ARSA as the panel begins its work.

How to Refocus FAA Guidance on the Rules

On Dec. 8, 2022, the working group tasked by the FAA through the Aviation Rulemaking Advisory Committee (ARAC) to review and reconcile U.S. repair station regulations and guidance delivered its final report. The committee voted unanimously to accept the report and deliver it to the agency.

The working group extensively analyzed the history of the FAA’s oversight of entities performing maintenance and alteration on civil aircraft. It found duplication, segregation, and conflict in compliance information for certificate holders. The single-source Civil Aeronautics Manuals that instructed both regulators and the public prior to 1962 – when the Civil Aeronautics Regulations were recodified under the FAA – were supplanted by a sprawling and complex system that drives government personnel towards proscriptive administration of performance-based rules.

“Since recodification, guidance material has increased from four to twenty volumes while education of the industry and agency workforce on the plain language of the regulation, its history, intent, and expected results has deteriorated,” the report said.

To reverse this trend and realign the rules and guidance, the working group made five recommendations:

(1) Adopt a single “Acceptable Means of Compliance” (AMC) document for part 145.
(2) Develop regulation-based training in conjunction with industry and make it available to all applicants, certificate holders, and inspectors.
(3) Amend the Data Collection Tools to differentiate between compliance elements and risk indicators.
(4) Update the air agency certificate application process to reflect the current requirements of part 145.
(5) Review operations specifications’ paragraphs included in air agency certificates given to repair stations to remove any that are not safety limitations.

The report included an effective structure for the AMC it recommended the agency adopt. It follows fundamental legal principals of regulatory construction, interpretation, and application to state the applicant or certificate holder’s responsibility to “show” compliance and agency’s charge with “finding” it.

“The AMC creates a transparent method of imparting information to applicants, certificate holders, agency personnel, and the public. It includes the language of the regulation, its scope or intent, an acceptable means of compliance for the applicant or certificate holder, how the agency handles the data it collects or is required to review, and additional explanations or background to help aid compliance, certification, and oversight,” the report said.

The working group requested ARAC:

(1) Adopt the final report and its recommendations.
(2) Further assign the working group to:

(a) Complete the AMC.
(b) Develop training to support the AMC.

The report was presented to ARAC during its December meeting by Working Group Co-Chairs Sarah MacLeod, ARSA executive director, and Ric Peri, Aircraft Electronics Association (AEA) vice president of government & industry affairs. In his letter to the FAA delivering the report, ARAC Chair David Oord said: “I am confident that, once implemented, the results will markedly improve the agency’s guidance on the certification and oversight of Part 145 repair stations.”

On Jan. 9, the FAA acknowledged receipt of the report. Click here to review the agency’s letter of acknowledgement.

To read the working group’s complete final report, click here.

To view the presentation used to deliver the report, click here.

To visit the ARAC webpage, click here.

To review previous updates related to the working group, including a list of organizations represented, review the content on arsa.org/145-task.

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.

Know Your Status

By Christian A. Klein, Executive Vice President

Recent columns have explored the process leading up to and following issuance of a Letter of Investigation (LOI), self-advocacy before the FAA, certificate actions (non-emergency and emergency), and how civil penalties are calculated. This month’s explores how civil penalties are proposed and disposed of through the agency’s administrative process.

14 CFR part 13 prescribes different procedures in civil penalty matters based on the amount of the proposed penalty and the status of the alleged violator. Section 13.15 applies to more significant civil penalty cases (those involving penalties in excess of $400,000 for persons other than individuals or small businesses and in excess of $50,000 for individuals or small businesses), which the FAA refers to the Department of Justice if the parties are unable to reach a settlement. (For a discussion of how the government determines if you are a small business, see the November 2022 “Legal Brief”.) After the referral, the DOJ begins proceedings in federal court to prosecute and collect the civil penalty.

For smaller cases, § 13.18 establishes administrative procedures for assessing certain civil penalties against individuals acting as a pilot, flight engineer, mechanic or repairman. Our discussion will focus on § 13.16, which governs civil penalties against other persons (e.g., companies) and against all persons for hazardous materials violations, because it’s the process repair stations are most likely to encounter.

Under § 13.16(f), the FAA Chief Counsel’s Office initiates an action by sending a notice of proposed civil penalty to the alleged violator, the designated agent, or, if there isn’t one, to the company’s president. The notice contains a statement of the charges and the amount of the proposed penalty. Upon receipt, a 30-day clock starts ticking for the person charged to do one or more of the following:

• Pay the proposed penalty (§ 13.16(f)(1));
• Submit written information demonstrating that the violation did not occur or that the amount of the penalty is inappropriate (§ 13.16(f)(2)(i));
• Request in writing that the penalty be reduced based on the company’s financial condition (§ 13.16(f)(2)(ii));
• Request in writing an informal conference to discuss the matter with an agency attorney (§ 13.16(f)(2)(iii)); or
• Request a hearing before an administrative law judge (ALJ) (§ 13.16(f)(3)).

What happens next depends on the path chosen. Per § 13.16(g), a final notice of proposed civil penalty may be issued if (a) the person fails to respond to the notice of proposed civil penalty within 30 days, (b) the FAA has not withdrawn the case, or (c) the parties have been unable to reach a settlement. The final notice starts a 15-day clock for the accused to either pay the penalty or request a hearing. Although most civil penalty cases are settled without a hearing, it is helpful to understand that process. Hearing requests must be filed with the FAA Hearing Docket Clerk and served on the agency attorney within the allotted time. (More information is available on the Hearing Docket website.)

Once a hearing is requested, the trial-type process plays out in accordance with subpart G. Pursuant to § 13.232, the ALJ must issue an initial decision which can be done orally at the end of the hearing or in writing within 30 days after the hearing or submission of the last post-hearing brief. After the initial decision, either party may appeal to the FAA decisionmaker (i.e., the FAA Administrator or designee) by filing a notice of appeal within ten days of the entry of the oral initial decision or service of the written decision.

The process of appealing to the decisionmaker is described in § 13.233. It may permit oral arguments on appeal, either because either party has requested one or because the decisionmaker believes oral arguments will contribute substantially to a resolution of the issues. When considering an appeal, the decisionmaker may only consider the following:

(1) Whether each finding of fact is supported by a preponderance of reliable, probative, and substantial evidence;

(2) Whether each conclusion of law is made in accordance with applicable law, precedent, and public policy; and

(3) Whether the ALJ committed any prejudicial errors.

Based on the record, appeals briefs and oral arguments, the decisionmaker may affirm, modify, or reverse the ALJ decision, make any necessary findings, or remand the case for further proceedings. The decisionmaker may assess a civil penalty, but it may not be greater than what the FAA sought in the original complaint.

The decisionmaker issues its “written final decision and order” and serves a copy of both on each party. Within 30 days of receiving the final decision and order, either party may petition the decisionmaker to reconsider or modify it pursuant to the process described at § 13.234. The decisionmaker has discretion to grant or deny a petition for reconsideration. The filing of the petition stays the effective date of the decision and order until the petition for reconsideration has been issued.

When the administrative review process concludes, the violator may either pay the penalty or appeal the decision to the federal courts pursuant to § 13.235. The appeals process is commenced by filing, within 60 days of the issuance of the Administrator’s final decision and order, a petition for review with the U.S. Court of Appeals for the District of Columbia Circuit or the U.S. Court of Appeals for the circuit in which the party resides or has its principal place of business.

A quick review of the 58 FAA cases appealed to federal courts over the past thirty years shows the agency usually prevails (either because the agency’s position is affirmed or the request for review is denied or dismissed). As such, certificate holders should take the FAA enforcement process very seriously and not assume the courts will reach a different conclusion than the FAA. For tips on protecting your interests at all steps in the process, please review the other articles in this series.

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ARSA on the Hill

Join Us

March 15, ARSA’s Legislative Day is the best opportunity to get personally involved in congressional advocacy. The event, held each year as part of the ARSA Annual Conference, includes morning briefings and panel discussions about hot legislative topics and engagement strategies and the release of the annual Oliver Wyman/ARSA MRO market report. After lunch, attendees head to Capitol Hill for meetings with their representatives’ and senators’ offices.

With a major FAA bill looming, maintenance industry leaders are strongly urged to participate. More information is here.

Key Aviation Committees Take Shape

Housekeeping has been the theme of the first month of the 118^th Congress. Following the tumultuous election of Speaker Kevin McCarthy, appointment of leaders and members of the House and Senate committees and subcommittees that will guide this year’s FAA reauthorization process is shaping up:

On the House side of Capitol Hill, where Republicans are now the majority, Rep. Sam Graves (R-Mo.), an experienced transportation policy expert and past winner of ARSA’s legislative leadership award, has been named chairman of the Transportation & Infrastructure (T&I) Committee. “One of my highest priorities is a bipartisan, long-term reauthorization of the Federal Aviation Administration and aviation programs,” Graves said. “As a professional pilot, I know firsthand just how important a strong U.S. aviation system is in connecting our large, small, and rural communities to each other and the rest of the world. Aviation is a major sector of our economy, and we must ensure our Nation remains the world’s gold standard in safety and at the forefront of incorporating new technologies into the system.”

Rep. Garret Graves (R-La.) (no relation to Sam) was named chairman of the T&I Committee’s aviation subcommittee, for which he previously served as ranking member. “Our subcommittee will work to improve the passenger experience and help transform the FAA to facilitate the entry of new American aviation technologies into the market,” he said.

Rep. Rick Larsen (D-Wash.), the former Democratic chairman of the House aviation subcommittee and winner of ARSA’s 2022 Legislative Leadership Award, has been named ranking member of the full T&I Committee. Larsen is the first member of Congress from aviation-heavy Washington state to lead his party on the committee. Rep. Steve Cohen (D-Tenn.) is the new ranking member.

“We’re extremely pleased that the T&I Committee will have leaders from both parties that understand how important aviation is to the U.S. economy, who take a reasoned, safety-based approach to aviation regulation, and who understand the workforce challenges facing the maintenance industry,” ARSA Executive Vice President Christian A. Klein said.

Of importance to members is T&I Chairman Graves’ announcement of Republican members who would join the committee:

Burgess Owens (R-Utah)
Tracey Mann (R-Kan.)
Rudy Yakym (R-Ind.)
Lance Gooden (R-Texas)
Aaron Bean (R-Fla.)
Lori Chavez-DeRemer (R-Ore.)
Mike Collins (R-Ga.)
Anthony D’Esposito (R-N.Y.)
Chuck Edwards (R-N.C.)
John James (R-Mich.)
Tom Kean, Jr. (R-N.J.)
Marc Molinaro (R-N.Y.)
Brandon Williams (R-N.Y.)
Eric Burlison (R-Mo.)
John Duarte (R-Calif.)
Mike Ezell (R-Miss.)
Derrick Van Orden (R-Wis.)

New Democratic members are:

Rob Menendez (D-N.J.)
Val Hoyle (D-Ore.)
Emilia Sykes (D-Ohio)
Hillary Scholten (D-Mich.)
Valerie Foushee (D-N.C.)

Subcommittee assignments are pending. For a full listing of T&I members, go to https://transportation.house.gov/about/membership.htm.

The situation on the Senate side is less clear. Sen. Maria Cantwell (D-Wash.) will stay on as chair of the Commerce, Science and Transportation Committee. Sen. Ted Cruz (R-Texas) will become ranking member of the full committee if Sen. Roger Wicker (R-Mis) (current ranking member) steps aside to become the senior Republican on the Senate Armed Services Committee.

Sen. Krysten Sinema (I-Az.) was the chair of the Commerce Committee’s aviation subcommittee in the last Congress, however, her departure from the Democratic party to become an Independent may complicate her return to that role. Senate committee assignments are pending, so it will likely be another week or more before committee membership and leadership are set.

Year-End Bill Doubles Technician Grant Funding

In the final days of the 117^th Congress, Congress sent the president two important pieces of legislation: an FY 2023 appropriations omnibus to fund the federal government and the FY 2023 National Defense Authorization Act (NDAA).

As part of the omnibus, Congress doubled funding for the aviation maintenance technical grant program created at ARSA’s request during the last FAA reauthorization. The program is authorized for $5 million annually but given strong interest and bipartisan support on the Hill, appropriations provided $10 million for the program for FY 2023.

Members of both parties have already expressed interest in significantly increasing the authorization for the grant program as part of the upcoming FAA reauthorization process. In the waning days of the 117^th Congress, Rep. Larsen and Sen. Mike Kelly (D-Ariz.) introduced bills (H.R. 9662/S. 5324) that would raise funding for the technician grant program to $20 million annually and create a similar program for the aviation manufacturing workforce. While those bills must be reintroduced in the new Congress, they provide an important indication of interest in program expansion.

The FY 2023 NDAA includes provisions aimed at enhancing competition in Department of Defense contracts, another long-standing ARSA priority. Section 161 of the bill directs the Air Force and Navy to develop and implement procedures regarding the acquisition of used, overhauled, reconditioned, and remanufactured commercial dual-use parts for commercial derivative aircraft and engines and aircraft that are based on the design of commercial products. To be eligible, suppliers must provide parts with an FAA Form 8130-3 from an FAA certificated repair station. A move that supports ARSA’s argument that the DOD should prioritize the use of FAA approvals (e.g., parts manufacturer approval parts) for commercial derivative products to enhance competition and create opportunities for smaller companies to bid for DOD contracts.

Additionally, Sec. 841 of the NDAA directs the Secretary of Defense to develop guidelines and resources for the acquisition or licensing of intellectual property. ARSA and its members have long complained that DOD’s failure to prioritize government ownership of maintenance data cuts the government off from repair stations unaffiliated with the manufacturer. ARSA is exploring ways to leverage both these NDAA provisions in support of ongoing advocacy.

House Acts Fast on NOTAM

In the wake of the Jan. 11 glitch with the FAA’s Notice to Air Mission (NOTAM) system that grounded air traffic across the country, the House has passed legislation aimed at modernizing the system. The NOTAM Improvement Act of 2023 (H.R. 346) would establish an FAA task force to, among other things, review the current NOTAM program and determine best practices to organize, prioritize, and present flight operations information. The bill passed by a vote of 424 to 4 on Jan. 25.

Washington Renominated to Head FAA

On Jan. 3, President Joe Biden renominated Denver International Airport CEO Phil Washington to be the next FAA administrator. Washington’s nomination took on new urgency in the wake of the NOTAM outage, which focused attention on the lack of permanent leadership at the agency.

Billy Nolen, the former associate administrator for aviation safety (AVS-1), has served as acting administrator since Steve Dickson resigned last April; many other senior positions are not permanent assigned. Senate Majority Leader Chuck Schumer (D-N.Y.) said he would push to clear the logjam preventing a vote on Washington’s nomination. However, Republican critics have expressed concern about Washington’s lack of aviation experience, his potential involvement in a corruption scandal, and the need for Washington to obtain a waiver from the Senate due to his military career (by law, the FAA administrator must be a civilian).

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Aviation Life Calendar

Something exciting happens every day in an aviation career.

If you want to keep aviation in the forefront of career choices, celebrate success every day with these resources. Every one provides a positive view of the industry’s ability to make the impossible an everyday event by individuals from every walk of life, socio-economic level, race, creed, color, religion, orientation, and physical capability.

Check back regularly for updates.

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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.

To review sample syllabi of training session options from the firm – many of which have similar sessions available generically through ARSA training – click here to download a combined PDF. The syllabi include “Regulatory Comprehension for Maintenance,” “Public Aircraft,” “AD Compliance” and more. 

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.

Major Pain Over a Minor Issue

This session reviews the regulations that govern the terms “major” and “minor” in the world of civil aviation repairs and alterations. Learn the regulatory facts and how to train your FAA inspector so this minor issue doesn’t become a major pain in the derrière.

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.

What is “Acceptable to the Administrator”?

During this on-demand session, Sarah MacLeod explores the vexing question inside the performance rules of § 43.13. This session provides an overview of the regulations that use the language “acceptable to” the Federal Aviation Administration (FAA) and how to determine what makes something is acceptable to the FAA.

Click here to register and get unlimited 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.

Regulatory Compliance Training

Test your knowledge of 14 CFR §§ 11.85, 11.87, & 11.89, comments on petitions for exemption.

Click here to download the training sheet.

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Membership

Member Survey Coming to an Inbox Near You

Each year, the association gathers intelligence on issues facing the international aviation maintenance community and its economic outlook. Responses improve ARSA’s services and provide data to support advocacy on behalf of the global aviation industry.

The first invitation will be delivered to the inboxes of all primary contacts during the week of Feb. 6. (If you don’t know who the primary contact is, we can help.) Ensure the invitation makes it to your primary contact and that it gets the attention it deserves. Direct any questions to brett.levanto@arsa.org.

See the report on last year’s member survey at arsa.org/survey2022.

Quick Question Explored – SMS Proposed Rule

In January, the FAA issued its long awaited notice of proposed rulemaking (NPRM) that would update and expand the requirements for safety management systems. Despite the proposal’s (thankful) omission of 14 CFR part 145 from its applicability, new SMS requirements will still impact repair stations.

Help ARSA with its continuing collection of information related to SMS implementation and expectation in maintenance facilities by answering this month’s “quick question.”

Before doing so, be sure you are caught up on SMS updates and the FAA’s proposal by reviewing arsa.org/sms-rules.

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

If the embedded survey does not appear/load, open the survey independently by visiting: https://www.surveymonkey.com/r/sms-nprm-2023.

If you haven’t responded to ARSA’s previous question about SMS implementation in your facility, visit arsa.org/qq-sms.

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 January:

New Members
Aircraft Specialists Inc., R02
Avocet Aviation Services, LLC, R03
Morgan Stonefield, EDU

Renewed Members
Aerotech Engineering Consultants, Affil, 2016
Air-Cert, LLC, R01, 1990
Aircraft Component Repair, Inc., R03, 1987
Alirio Aircraft Services Inc. dba 24Jets, R01, 2019
AvidAir Helicopter Supply, Inc., R01, 2011
C&S Propeller, LLC, R02, 2016
Classic Service Center LLC dba Helicopter Services of Utah, R02, 2021
Consolidated Turbine Specialists, LLC, R03, 2018
Continental Aircraft Support, Inc., R03, 2004
Corporate Service Supply & Manufacturing, Inc., R01, 2016
Embry-Riddle Aeronautical University, Inc., EDU, 2012
First Class Air Repair, R02, 2016
Gables Engineering, Inc., Assoc., 1995
Genesis Aviation, Inc., R04, 1994
Gyros Unlimited dba North Bay Aviation, R03, 2011
LAUNCH Technical Workforce Solutions, LLC, R01, 2019
 Mid-Continent Instruments & Avionics, R04, 1998
Ohlinger Industries, Inc., R04, 2006
Pem-Air, LLC, R01, 2021
Aerospace Quality Research & Development 145, LLC, R01, 2006
S.E.A.L. Aviation  LLC, R03, 2014
Skytech Aviation, Inc., R01, 2013
Spirit AeroSystems, Inc., R04, 2005
Tarrant County College, EDU, 2017
Tinker Airforce Base – Flight Standards Management Office, R01, 2022
ST Engineering North America, Inc, Corp, 2006
Team J.A.S., Inc., R02, 2004
TMC Engine Center, Inc., R02, 2021

A Member Asked…

Q: We will be moving to a new facility at the end of Q2 2023. Is there a checklist for regulatory items that need to be accomplished. I am new to this position and have never had to make changes to a repair station certificate. Let me know if you can help point me in the right direction.

A: Let’s start with the regulations that apply to a change in location, so you can understand what the agency should be requesting.

Section 145.105(a) states that “[a] certificated repair station may not change the location of its housing without written approval from the FAA.”

The request for written approval starts with submitting an application (FAA Form 8310-3); follow the instructions and in block 2 “reasons for submission” mark “Change in location or housing and facilities.” Enter the new address in “other” under block 2 along with a “see attached letter.”

The “attached letter” should explain how work will be accomplished before, during, and after the move. While the agency may attempt to stop work during the move, it should not do so since the purpose of giving approval is to allow work to continue. ARSA has a template letter that attempts to outline the information the company should provide about the move to ensure the agency the work will be accomplished in accordance with part 43 and the repair station manual and quality system.

Obviously, one of the things that will need to be done is updating the manuals to reflect the new location’s layout, etc. If you plan on using old paperwork until it is exhausted, explain how the paperwork will be made to reflect the new location after the move, e.g., a sticker will cover up the old location.

ARSA’s template letter is available as a free tool for members. You can get yours by requesting the entire .zip folder of forms, letters, and other documents included in the “tools.” Go to arsa.org/publications, scroll to the Order Form at the bottom of the page, select “Tool(s) for ARSA Members (Any),” and complete the form.

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.

Careers in Aviation Maintenance

How do you share the industry’s story with the people who could be its future? Teach them about the great work done every day to keep the world in flight. (Even if we can’t recruit somebody, we sure can make them thankful for our work.) 

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.

The FAA Enforcement Process

There are several reasons the agency may open an enforcement investigative report (EIR). Complaints from former or current employees, routine surveillance of your operations or a problem from a customer are all examples of how an “investigation” starts.

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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