2020 – Edition 3 – April 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.

Taking Lead
Anti-Viral Measures
2020 Annual Conference
ARSA Works
Legal Brief
ARSA on the Hill
Training
Membership
Resources
Industry Calendar

Taking Lead

Ahead, Alongside and Behind

By Sarah MacLeod, Executive Director

There’s no manual for handling a crisis of the magnitude being confronted; as one U.S. governor commented, “we’re building the plane as we’re flying it.”

Unfortunately, the maintenance industry and ARSA understand crisis management. We have been ahead, alongside and behind a lot of them in the last 35 years; terrorist attacks, wars and economic recessions. The present crisis will eventually end, but in the meantime members and employees need support.

Here’s an overview of the strategies ARSA has pursued, is pursuing and the resources it has created to ensure its members can be ahead of the game and ARSA can work alongside the aviation community to back efforts for the international maintenance community:

Lobbying for repair station relief. For the past five years, ARSA has enhanced its legislative presence so when consternation developed among repair station owners and employees—aside from keeping everyone healthy—to keep sufficient cash flowing, ARSA took action. The association obtained input from MRO-sector leaders and ensured the maintenance community was included in congressional action. It began with a letter to the President requesting $11 billion in relief for repair stations including a tax credit for airlines that contract maintenance during the national emergency. With an unprecedented number of companies participating in the grassroots efforts, the CARES Act included repair stations among the aviation stakeholders.

Now that we are ahead of that curve, ARSA’s will provide help working through the government’s implementation of the law and will work around the clock to keep repair station issues front and center on the Hill and among the agencies.

ARSA’s “Anti-Viral Measures” website was created to ensure we were shoulder-to-shoulder with our members. The location provides quick access to general information and international aviation data. Bookmark it and check back often; it will be kept current as more information is available.

Repair stations are “essential”. In response to early shelter in place orders, and to ensure members in those and other states could be ahead of the curve, ARSA developed a memo explaining why repair stations are essential and can continue to operate. While standards vary from place to place, the memo explains the need to keep your business operating. The ARSA “anti-viral’ website also has a link the guidance from the U.S. government about essential businesses (which includes aviation maintenance).

Train to gain later. To ensure, companies that have weathered this storm can invest in their workforce for future success, ARSA has discounted its online training classes by 50 percent. Members and non-members can take advantage of the downtime to sharpen workers’ knowledge and skills. Our training library contains more than 75 classes on regulatory, human factors and legal topics. (We welcome suggestions for additional content and can offer options to bring new instruction directly to your team. Contact us for more information.)

Maintaining through remote control. The White House has told federal agencies to “maximize telework…while maintaining mission-critical workforce needs.” In response, ARSA pushed for connecting with regulators remotely to accomplish routine audits and approvals. The association’s industry-supported draft advisory circular outlining standards for oversight, inspections and testing performed using such systems as personal mobile devices should be used by certificate holders to continue operations as well as inviting agency personnel to perform routine audit functions.

In the days, weeks and months ahead, ARSA will keep working to keep you ahead of the curve, to ensure we are shoulder-to-shoulder with you when needed and to stand behind you during the crisis. Likewise, please don’t hesitate to reach out to anyone on the association’s team for or with information. Stay well!

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Anti-Viral Measures

Relief Bill is Good News for America’s 250K Aviation Maintenance Workers

On March 27, Congress officially responded to the aviation maintenance industry’s pleas for economic assistance in the face of pandemic-related air travel disruptions. The Coronavirus Aid, Relief and Economic Security Act (CARES) Act directs specific relief to repair stations and their employees.

Since President Trump’s national emergency declaration on March 13, ARSA has been working to provide resources to help its members weather the storm. Central to that effort is a campaign to urge Congress to provide short-term help to the maintenance industry. Association members from around the country weighed in with their representatives and senators in support of ARSA’s call for grants and loans to help repair stations meet payroll. That unprecedented grassroots campaign has yielded significant results.

The relief legislation contains several provisions aimed at providing aircraft maintainers with liquidity to avoid layoffs. Sec. 4003(b)(1) of the bill sets aside $25 billion for loans to repair stations, airlines and ticket agents. Aviation maintenance companies that are located at airports and perform work for air carriers should also be able to benefit from a $3 billion financial assistance program for airline contractors and subcontractors (Secs. 4111 to 4120).

The aviation provisions aside, the legislation provides broad relief for individuals in the form of direct payments and forgivable loans to help small businesses and companies with 500 or fewer employees meet payroll and keep businesses operating (Sec. 1102). The overwhelming majority of repair stations are small and medium-size entities that will be able to tap into those resources.

The effort on Capitol Hill to provide maintenance industry relief was led by Sens. Jim Inhofe (R-Okla.) and Tammy Duckworth (D-Ill.), “While ARSA is grateful to all the members of Congress and staffers who’ve worked tirelessly in recent weeks to craft the bill, Senators Inhofe and Duckworth deserve special recognition,” ARSA Executive Vice President Christian A. Klein said. “Thanks to them, there are 250,000 men and women working in the maintenance sector – including 12,000 employees in Oklahoma and 7,000 in Illinois – who can rest a little bit easier knowing that financial help to keep their companies afloat is on the way.”

Now that the bill is law, all eyes are on the Treasury Department and Small Business Administration, which have begun to implement the business relief provisions.  For a review of the implementation process – as it stands as of this publication – see this month’s Legal Brief.

For current updates, the association encourages aviation community stakeholders to stay tuned to its “anti-viral” webpage at arsa.org/anti-viral-measures.

International Aviation Policy Resources for Pandemic Response

The International Civil Aviation Organization (ICAO) Airworthiness Panel (AIRP) has established a repository for member states to upload relevant information on policies and procedures instituted to handle virus mitigation measures. Since many states are instituting alleviating measures to help deal with the pandemic and ICAO is considering the official end of the COVID-19 contingency period to be March 2021, a central manner of explaining each state’s measure was instituted.

ICAO will provide each state a letter that will include the common standards references and excerpts most likely needing mitigation and will discuss Article 33 (Recognition of Certificates and Licenses), Article 39 (endorsement of certificates and licenses) and Article 40 (operating internationally when outside of ICAO Standards). The letter will also request states use a template for explaining what is and is not permissible during the crisis period. The letter and responses will be published in English on ICAO’s website at www.icao.int/safety/COVID-19OPS.

During an emergency meeting of the AIRP in late March 2020, the several member states reported generally on measures being instituted so when international travel is more prevalent, misunderstandings could be minimized.

To jump directly to to the COVID-19 information pages maintained by the FAA, EASA, the UK CAA, TCCA, ANAC Brazil and CASA, click the links in the headings below. To provide ARSA with additional international resources, links or updates, contact Brett Levanto.

FAA

• Generally extending eligible individuals on calendar requirements for medical, pilot, mechanic certificates; also alleviating calendar requirements for air carrier and air agency certificates.
• Legal counsel is reviewing and examining “blanket” exemptions on certain pressing regulatory requirement.
• Certificates of airworthiness are still subject to re-registration requirements.

EASA

• EASA has issued templates to member states.
• While travel restrictions are in place, it is not ready to discuss license extensions for air agencies since remote audits are being considered.
• Certificates of Airworthiness may be extended 6 months with some mitigating measures—as determined by the NAA; continued airworthiness must be managed by CAMO with a document review and physical survey, which can be extended twice.
• No extensions are currently being considered for general maintenance tasks; but will address specific calendar maintenance tasks.

France

Has extended some approved maintenance organizations by 6 months to fully institute other measures allowing remote audits.

Italy

• Currently working to modify aircraft to support medical transport needs, with conformity inspections performed remotely.
• It is generally following EASA’s recommendations for certificates of airworthiness and maintenance licenses.

UK

• Issued exemption for ongoing training.
• License validity continues provided recency requirements are met.
• Will follow type certificate holder recommendations for any maintenance program extension requests.

TCCA

• Six month extension of renewal periods for AME licenses.
• Approved schools – implementing new policy to allow for alternative learning methods (distance learning) for lecture portion.
• Deviation from maintenance schedule will depend on circumstance and operators.
• Currently using deviation process – guidance does not apply to airworthiness limitations (ADs, CMRs, life limits,).  Those items would be addressed via alternate means of compliance process via certification representatives. 
• Canadian Operators seeking repair stations in US may be allowed to use appropriately rated repair station without the required supplement.

Brazil

• ANAC has extended mechanic license for four months, no limit on certificates of airworthiness.
• CofA has a limit of 6 years.  We changed our regulation last week and there are no longer limits on CofA.
• Foreign AMO certificates will be extended since audits cannot be performed at this time.
• Performing desktop review and remote audits of design and production approval holders.
• Expecting maintenance programs to be followed or seek alternative from the type certificate holder.

Australia

• Certificates of Airworthiness have no limits.
• AME license must keep recency, since the current situation doesn’t appear to be negatively impacting those requirements.
• Maintenance organization approvals have been extended 6 months.
• Airworthiness review has been extended for 6 months (3 year requirements).
• No extension to maintenance requirements are being considered.

To see ICAO’s general information page on COVID-19, click here.

FAA Exemptions, Deviations and Other Virus Related Information

Note: ARSA has been posting guidance, exemptions and other resources to arsa.org/faa-strategy as they become available. Review below to see new content.

The FAA’s Flight Standards organization has issued several deviation and information memoranda and bulletins to assist in continued operations of air carrier, schools, pilots and repair stations.

While most of these documents are available on the agency’s Flight Standards Information Management System (FSIMS; Order 8900.1), ARSA will post any that it finds or is provided to assist the aviation community in continuing compliance with aviation safety requirements.

Central FSIMS Page: COVID-19 Relief For Certificate Holders: Policy Deviations, Exemptions, and Rule Changes

COVID-19 Deviation for 14 CFR Part 142 Training Center Certificate Holders

Deviation to FAA Order 8000.95, Designee Management Policy and FAA Order 8100.15, Organization Designation Authorization Procedures, in Response to the COVID-19 Pandemic

Deviation to FAA Order 8900.1 for 14 CFR Part 145 Repair Stations

Deviation to FAA Order 8120.23A, Certificate Management of Production Approval Holders, in Response to the COVID-19 Pandemic

[Final Rule] Enforcement Policy for Expired Airman Medical Certificates

Flight Standards Designee Oversight and Recurrent Training requirements related to the current Coronavirus (COVID-19) pandemic.

Operational Control Part 121 Air Carriers

Oxygen Mask Requirement: Supplemental Oxygen for Emergency Descent and for First Aid; Turbine Engine Powered Airplanes With Pressurized Cabins

Special Guidance for part 147 AMTS Regarding Training Interruptions Related to Coronavirus (COVID-19) and Applicable Deviations to Order 8900.1.

Special Guidance for Title 14 Code of Federal Regulation (14 CFR) part 141 Pilot School Regarding Training Interruptions Related to Coronavirus (COVID-19) and Applicable Deviations to Order 8900.1.

Exemptions

In response to requests from Airlines for America (A4A) and the National Air Transportation Association (NATA), the FAA has granted the following exemptions from training requirements of parts 121 and 135:

“Grace Months” Under Part 121 Training Requirements (Corrected Copy)

“Grace Months” Under Part 135 Training Requirements

Avoiding Touching Certain Cabin/Cockpit Equipment Under Part 121 Training Requirements

Avoiding Touching Certain Cabin/Cockpit Equipment Under Part 135 Training Requirements

Extending Medical Certificates for Part 121 Pilots and Flight Engineers

Extending Medical Certificates for Part 135 Pilots and Flight Engineers

DOT Resources on D&A Testing During Crisis

Following up on a March 24 update provided to industry by the FAA, ARSA queried the agency’s Drug Abatement Division regarding its posture on drug and alcohol testing regimens during the current national emergency and was given a prompt response to first refer to the Department of Transportation’s postings on the issues and then to reference the FAA’s own Q&A on any unanswered concerns.

The Department of Transportation has published guidance for employers, employees and services agents conducting DOT drug and alcohol testing and the concerns about the Coronavirus (Covid-19).  The guidance is available at www.transportation.gov/odapc/compliance-with-dot-drug-and-alcohol-testing-regulations.

Since the guidance published by the DOT applies to all transportation agencies and many different types of operators, it is generic and refers operators back to the transportation agency for information on the flexibilities or best practices available to ensure compliance.  As it relates to random testing, each agency does have some flexibility in the regulation for when to excuse a random testing selection if an employee is on extended absence.  It is also possible to hold the selections until the employees return to work. 

All of this information is explained in the FAA’s Random Guidance Alert and a Frequently Asked Question about what to do when an employee is on extended absence.

On March 30, the FAA released an additional reference document regarding disruptions to drug & alcohol testing due to COVID-19.

While the government never seems able to just come out and say something straight, the advice being provided indicates that persons that cannot or will not agree to be tested during these questionable times “may” be reasonably excused under the regulations. The employer is responsible for properly and completely documenting the circumstances for the “refusal” or “excused absence” preventing the testing and for ensuring compliance with mandatory provisions of the drug and alcohol testing requirements, such as pre-employment or return-to-duty.

The information available online should apply in most situations during this unprecedented period.  If more information or guidance is necessary, aviation stakeholders should contact drugabatement@faa.gov. 

ARSA will post any further developments and stands ready to answer member questions.

Repair Stations as Essential Services

As states and localities around the United States respond to the current pandemic, many have implemented – or are considering implementing – quarantine orders and mandatory business closures. While these strategies are vital to containing the virus, orders must be tailored to ensure essential services continue.

Members and association contacts facing stop work or quarantine requirements imposed by state governments should utilize the following information in coordinating response to seek exemption under essential service requirements. When possible, engage with fellow aviation businesses or interest groups such as chambers of commerce and always review state law and business regulations.

It is ARSA’s position that aeronautical repair stations certificated by the FAA pursuant to 14 CFR part 145 are businesses that provide essential services that must continue operations.

Federal regulations require U.S.-registered aircraft and related components be maintained by FAA-approved “persons” (14 CFR § 43.3.); specifically, mechanics and repairmen certificated under 14 CFR part 65 and people working under their supervision, repair stations certificated under 14 CFR part 145, air carriers certificated under 14 CFR parts 121 and 135 and, in certain limited circumstances, pilots.

Repair stations provide the majority of maintenance, preventive maintenance, and alteration services in the United States for aircraft, airframes, aircraft engines, propellers, appliances, and component parts.

Forcing repair stations to cease operations will disrupt and prevent essential government functions (including emergency and police services and U.S. military aviation); commercial air carrier passenger and cargo operations; and general and business aviation operations, including humanitarian relief and essential health services.

In light of the foregoing, federally mandated FAA-certificated repair stations are essential businesses that must be excluded from emergency business closures.

Additional resources:

ARSA memorandum to federal, state and local government officials regarding the essential services repair stations provide.

Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency’s “Guidance on the Essential Critical infrastructure Workforce” (includes “[e]mployees who repair and maintain vehicles, aircraft, rail equipment, marine vessels, and the equipment and infrastructure that enables operations that encompass movement of cargo and passengers” and “[w]orkers who support the maintenance and operation of cargo by air transportation, including flight crews, maintenance, airport operations, and other on- and off- airport facilities workers.”)

FAA database of repair stations in each state.

Aviation maintenance industry’s employment and economic footprint in each state.

If You’ve Got a Phone, You’ve Got an Inspector

On March 15, the White House issued a memorandum directing government agencies to realign operations to slow the spread of the current virus. The memo instructed agency leaders to “utilize the full extent of their legal authority and discretion to execute this realignment” and to “maximize telework … while maintaining mission-critical workforce needs.”

For ARSA members, that means offering remote connectivity options to the agency’s personnel so routine approvals and audits can be conducted. The executive directive allows the FAA to expand telework capabilities using ubiquitous devices and readily available audio and visual software. This capacity should apply to any and all FAA personnel otherwise unable to provide oversight in person on premises during the government’s response to the spread of the virus.

Certificate holders should refer to the association’s 2018 engagement with the FAA regarding “remote connectivity technology and tools.” ARSA confirmed with both the Aircraft Certification and Flight Standards Services that there are no regulatory prohibitions against the use of such resources, then provided an industry-supported draft advisory circular outlining standards for oversight, inspections and testing performed using systems as readily available as a personal mobile device. To facilitate the use of the best available technology, the draft AC established general requirements for set up and use of tools and equipment. The elements outlined in the document assist users in ensuring “the same level of acumen and capability [through remote connection] as if the oversight, inspection, test or training task or activity was conducted on-premises.”

As promised in 2018, albeit a year late, in late March the FAA’s Aircraft Certification Service issued its policy on use of remote technology. Although the policy claims it does not add burdens, its general consideration adds the elements of “complexity, novelty, and safety criticality of the product, article or system.” Therefore, it will be up to “applicants” to ensure requests to use the technology cover the ultimate requirement to …”enabl[e]…proper performance of duties” in spite or despite the general elements that are supposed to be considered.

The bottom line is that the agency can allow the use of any technology that achieves the purpose of the regulation and will be part of an application or showing of compliance—this policy is a step in the direction industry needs the government to go. ARSA encourages its members to utilize this guidance and readily available technical capabilities to request routine approvals and surveillance activities from the FAA during periods when inspectors are unable to interact face to face. While doing so, be sure to document all communications with agency personnel regarding remote oversight. Should an inspector reject or defer progress, contact ARSA.

To read the AIR policy statement, click here.

To see ARSA’s previous work on remote connectivity, click here.

To read the industry’s draft remote connectivity AC, click here.

To read the White House memorandum to the heads of executive branch agencies, click here.

ARSA Discounts Online Training During COVID-19 Response

The ARSA team continues to be heartened by the growing list of businesses and service providers offering additional benefits to the public as the world responds to the spread of COVID-19. Since some of the association’s members have indicated that personnel development and training will be paramount during the period of upcoming business uncertainty, the team has issued a 50 percent discount on all price levels for ARSA online training sessions.

This discount is valid for every individual session purchase and will apply automatically at checkout.  Multiple sessions can be purchased at once and the entire “cart” amount will be discounted, but “bundles” of similar classes (denoted on individual class pages as “special offers”) will not be additionally discounted; this 50 percent reduction exceeds the savings of any bundle, so please independently select each course in which you are interested and then follow the appropriate steps to check out.

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.

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.

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2020 Annual Conference

All That Happened

March 10-13, 2020
Washington, D.C. & Arlington, Virginia

After months of preparation, thanks to the investment of the event’s sponsors and in service of its dedicated attendees, the association brought the maintenance community to the U.S. capital city. From the White House to Capitol Hill to back at the Ritz-Carlton, Conference week kept everyone busy.

Participant note: Agenda information, session materials and other resources are available in the digital companion. See the back of your badge for connection information.

See what happened at the maintenance community’s premier substantive event by reviewing the updates spread throughout the relevant sections of this edition of the hotline.

To see Twitter content posted by @ARSAWorks during the event, click here.

Most importantly: Plan now to join ARSA on March 9-12, 2021.

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ARSA Works

The State of the Association

Editor’s Note: ARSA Vice President Gary Fortner delivered the “state of the association” address during ARSA’s annual membership meeting and breakfast, held on March 13 during the 2020 Annual Conference. The following is the text of Mr. Fortner’s prepared remarks, annotated with links to resources and information about activities as described in the text:

Good morning. It’s my pleasure to formally call the 2020 ARSA members meeting to order. For those of you who don’t know me, I am Gary Fortner, ARSA’s 2020 Vice President. I’m filling in for ARSA President Ian Cheyne, who couldn’t be here this week. Considering ARSA’s normal succession to the presidency, this means I’ll likely give this address two years in a row…so if there’s anything you don’t like today, be sure to come back in 2021 and see if it gets better.

On behalf of ARSA’s professional team and its Board of Directors, thank you for being here. The Annual Conference is made possible by the hard work of many, the generous support of a few – I encourage you to take a moment to recognize each sponsor for making the event possible – and the participation of great members and colleagues. For some in this room it started first thing on Tuesday morning – and for the ARSA team the planning has been going on for months – it is such a full week that it’s tempting to lose focus this morning. I implore you not to let that happen!

Not only are the breakout sessions, which will follow this breakfast, very important, this meeting itself is a useful point in ARSA’s year. It is vital to effectively communicate directly with each other about the work we’ve done together and what we need to continue doing.

With this “state of the association” address I’m going to call on you to ACT UP and help ARSA work for you. As I review of the things the association has done in the past year, I will punctuate each one with what you should be doing, so take notes and go home and DO.

But before I get to that punctuation, I should properly introduce myself and the people who make ARSA’s work happen.

I am the vice president of engineering and quality control at Fortner Engineering in Glendale, California. My company – which is now part of Wencor’s corporate enterprise membership – and my family have been involved in ARSA since it was founded in 1984. Together, the company and the association have grown and experienced changes in the technical, regulatory, political and cultural world.

One sympathizes. We’ve all surely seen, reacted to and headed off our fair share of change in this industry. ARSA, not yet in its 40^th year, has been a constant companion and often has blunted the edge of changes that could have greatly damaged all of our livelihoods. Despite it all, the core dedication to sensible enforcement of the plain language of the rules has not changed. Sure, we’re still fighting some of the same battles as three decades ago, but the progress we’ve made on all fronts has helped this industry grow.

I’ve been involved in the association’s leadership since being elected to the Board of Directors in 2001. When I complete my term at the end of 2020, it will mark 19 years of service to ARSA – I am the longest-tenured member of the Board. During that time, I’ve gotten to serve alongside a number of dedicated individuals, including the current Board members, who get introduced at this point in every president’s report, so let’s take a moment to meet them and recognize their service. I’ve chosen to keep my introductory list simple, and I kindly ask that my fellow Directors please stand when I call their names…and stay standing until I politely ask them to sit down:

First, my fellow officers. I already mentioned that ARSA’s President, Ian Cheyne, couldn’t be here this week, so he is excused from standing right now. Ian is the chief regulatory and technical officer for Dallas Airmotive. Treasurer Terrell Siegfried, assistant general counsel at the NORDAM Group, is here and serving his first full term as a Director.

Terrell is joined by Warner Calvo, quality & safety director for Coopesa, R.L., Gary Hudnall, general manager at Jet Center Medford, David Latimer, senior vice president of regulatory compliance at HAECO Americas and Jim Perdue, president of SONICO, Inc.

I’m also pleased to introduce two men who are new to the board, but not to ARSA or its work: Welcome to first-year Directors Scott Jacob, director of quality for Columbia Helicopters and Josh Krotec, First Aviation Services senior vice president.

Our Board represents each sector of the maintenance community, with Directors specifically selected to speak on behalf of international business, component or engine shops, rotorcraft or general aviation facilities, large corporations or airframers. Their diversity of experience and business focus guarantees the association’s leadership covers all corners of our shared needs.

Alright, gents, good work. Please have a seat.

We’re not quite done with the board member portion of this address, though. If we have two new members – again, welcome to Scott and Josh and thank you for serving – that means two of my colleagues have completed their service.

We’re going to make them do more than just stand: will Mr. Gary Jordan and Mr. Chris Erickson please join me on the stage.

Gary, of Jordan Propeller Service, and Chris, of Erickson, Inc., both stepped down from the Board of Directors last year. They combined for more than 30 years of service to the Board and association, held leadership positions for multiple years, served as ARSA’s president – Gary in 2012 and Chris in 2010 – and each provided steady commitment to the association’s membership. I’m thankful for their good fellowship and hard work and I’m proud to be here to help present Gary and Jordan each with a plaque and gavel honoring their service. Their plaques read:

“In recognition of…years of service as an officer and director of the Aeronautical Repair Station Association, with the appreciation of your friends and colleagues.”

Please join me in thanking, Gary Jordan and Chris Erickson.

[Note: Gary Jordan was unable to attend the 2020 Annual Conference.]

It’s been a busy twelve months since Dave Latimer gave his report at the end of last year’s Conference. On the regulatory front ARSA continued its close work with aviation safety regulators, but also expanded its reach outside of the aviation-specific arena.

For those of us in the membership, this expanded engagement was most evident in ARSA’s publicity of events related to business and regulatory engagement. Notably, last July the team coordinated industry attendance and comment at a “workshop” hosted by the U.S. Federal Trade Commission called “Nixing the Fix.” The event focused on rights to repair consumer products and provided another venue to shed light on the challenges faced by repair stations trying to obtain maintenance manuals.

ARSA also publicized meetings hosted by the Small Business Administration that provided an opportunity for the small enterprise dominated maintenance community to highlight problems created for it by government oversight. The agency’s national ombudsman also hosted a hearing on “regulatory fairness”; the association solicited comments from members of the industry.

The team provided “hype” for FAA events, too, highlighting – and participating in – the 2019 International Safety Conference. They also encouraged participation in the FAA’s engine safety review mandated by the 2018 reauthorization law, which came together in the form of an “Engine & Airframe-Engine Integration Safety Summit” in October.

The Engine Safety Summit is a great example of ARSA’s role as liaison between the government and industry. At the outset, the agency’s team needed help finding participants…its initial list was the result of a bad Google search. Luckily, ARSA’s Executive Director Sarah MacLeod has a few contacts in the industry and was able to provide useful direction and our President, Ian Cheyne participated.

Did you see communications related to these events? They ran through the Dispatch and hotline newsletters and were on the ARSA website (www.arsa.org). If not, let’s figure out why you’re not getting everything – that applies to all the work I’m describing in this report – or if you’re just overlooking these details.

To expand your own involvement and the voice of aviation maintenance, when ARSA publicizes events and meetings attend if it’s possible, comment if you’re capable and always pass along the information to your employees, colleagues and other industry stakeholders.

The organizations competing with ARSA for policy attention – labor unions, first among them – are represented at ALL of these events. ARSA’s team and its limited resources can’t always match that level of presence, but you can.

ARSA continued its role as an international mediator for regulatory sanity. Through the participation of Marshall Filler – easing his way into “part-tirement” but still an important presence in the aviation world – the association worked with the Maintenance and Certification Management Teams to pursue mutual recognition of component maintenance approvals among and between the four authorities in the “quadrilateral group” – the FAA, EASA, Transport Canada and ANAC Brazil (all of whom were represented at the Conference this week…did you notice that?).

The association led a coalition of international partners to address issues with the maintenance implementation procedures between TCCA and FAA. An update on that effort was provided yesterday.

Of course, the long-awaited release of change 7 to the U.S.-EU maintenance annex guidance drew attention in late 2019. ARSA has for years been a key player in dealing with MAG-related issues – particularly with major repairs and parts documentation. That work continues: While publishing assessments to assist U.S. repair stations in reviewing and updating their own EASA supplements, the association pushed for clarity related to release language and minor alterations. Work on the next revision of ARSA’s Model RSQM EASA Supplement is underway…as is a careful review and update to ALL of its model manuals, supplements and forms.

The team played its leading role in fielding questions regarding the MAG’s impact on individual member supplements and the often-contradictory messaging coming from local inspectors.

Which brings me to the first “to-do” as an ARSA member – ASK ARSA FIRST – the main reason that ARSA has an international impact is that it hears from its members on misdirection from colleagues, international inspectors and the agency itself.

Here in the United States, ARSA kept pressure on issues that have plagued the industry for far too long. Chief among them is the availability of maintenance data and the requirements that repair stations keep “current” copies of manuals that may not even be required to perform work. Last year, then-President Latimer reported that ARSA had released a “toolkit” for members to seek exemptions from the requirements of the “current” data requirement of 145.109(d). (As an aside: There is also a toolkit for submitting comments to the SBA about the burdens of complying with maintenance data rules…have you submitted one, yet? Have you followed up on your submission?)

A year later, ARSA submitted a petition for rulemaking to the FAA seeking removal of the last sentence from the troublesome section. I highlight it because it shows the deliberate nature of ARSA’s work: the exemption requests were a good faith effort to solve a problem for interested members (and thanks to those companies who submitted them and followed up relentlessly on progress). However, they also planted a flag that forced the FAA to provide comment on a key issue.

The agency claimed that the petitions would amount to “rulemaking by exemption” and the appropriate avenue to solution was the rulemaking process. While you can ask Sarah what she thinks about that response in general, it provided a clear “invitation” as we say, for the subsequent petition for rulemaking.

So, now that you’ve seen that the sausage-making is in the works – have you seen the publicity ARSA has been trying to engender on your behalf? The ARSA petition has been docketed in the Federal Register and is open for comments. Have you commented? If not, why not? This is your chance to describe the costs imposed on your company by maintenance data requirements, how safety can be assured and even improved with older manuals when important repairs are “removed” from “current” versions—in other words HELP! ARSA has given you all the tools you need at arsa.org/145-109.

The rulemaking petition was the most high-profile demonstration of ARSA’s tenacity on the industry’s behalf. Last year also gave us a couple simpler examples: The association pressed the FAA on both the non-regulatory requirement for repair station applicants to submit a “letter of compliance” (the agency said it would remove language from guidance claiming a letter was needed) and also a 2017 submission to the Regulatory Consistency Communications Board regarding the right to replace 100 percent of an article during maintenance (the resulting response wasn’t very informative, but we’ll keep the pressure on).

When a broad issue weaves its way into everything the association does, the team likes to say it’s become “part of ARSA’s DNA.” Workforce and career development issues have become tightly wound into the association’s efforts on every front.

Last year ARSA moved forward on efforts to improve the workforce in a couple ways. First, it submitted draft tasking language for the FAA’s Aviation Rulemaking Advisory Committee – on which ARSA serves – to recommend policy changes necessary to improve the value and use of repairman certificates.

Repairman are just one of the many pathways into and through industry employment that ARSA is trying to illustrate and bolster. How many of you use repairmen instead of mechanics; do you offer that certificate as an incentive to remain or grow into a specialist for the aviation industry? Your efforts at the grassroots help change FAA policy nationally when combined with ARSA’s.

In support of all of the different ways to enter and grow in a maintenance career, ARSA led a coalition rewriting FAA’s “overview of the aviation maintenance profession” advisory circular. This is the second rewrite the association has led, having done the same thing five years ago when the previous draft of the AC was put out for comment. But as I’ve said, we stay on issues for the long haul and – Brett Levanto, who coordinates much of ARSA’s workforce effort, will agree – every time you have to rewrite something you get better. That draft document can be used by ARSA members and the entire aviation community to encourage participation in aviation maintenance, whether or not the agency ever issues it.

Since I mentioned Brett, the focal point for ARSA communications, this is a good time to provide an update on the association’s media, periodicals and other avenues for telling the industry’s story.

This is where I should re-enforce my earlier point about receiving ARSA’s newsletters or getting content from its website. If you’re not, then your ability to support the association’s work is stunted. Of course, all of you receive some communications from ARSA, because you knew to register and attend this event, but you can help to ensure the broadest distribution possible. So, talk to Brett when you can about how you get information, not only from this association but from any other source. Perhaps there’s something different we can do that will better serve you and get you informed and active.

It’s clear that ARSA has carved a useful niche in the media. The association’s team has always been a trusted resource for the trade press. In addition to placed editorials in Aviation Week, Aircraft Maintenance Technology Magazine and Director of Maintenance Magazine, ARSA regularly fields questions from aviation reporters inside and outside the trade press including inquiries from the Times of London and the New York Times and just about every week a new publication appears citing our economic data, workforce projections, letters to Congress or other resources. More and more, whenever someone wants to write an aviation story that goes deeper than describing unrest over reclining seatbacks, they will at least pass through ARSA’s work.

That work has become more visible just across the river on Capitol Hill. Christian Klein called 2018 ARSA’s most successful ever on the legislative front…and I’m here to tell you that he’s proclaimed 2019 an even bigger triumph, with good reason.

Christian continued the association’s industry-wide leadership in pursuing funding for the maintenance technician grant program conceived by ARSA and established by the 2018 FAA reauthorization law. Thanks to his efforts and the engagement of many proactive members, who helped secure considerable support from their elected officials by demonstrating the vitality of the maintenance community and its desperate need for people, Congress fully funded the program. Our eyes now turn back to the FAA, which promised during a House aviation subcommittee hearing last month that the funds would be available before the year is out.

While thinking about workforce issues and the successes of the FAA reauthorization law, you may recall that another part proposed by ARSA and included in the FAA bill mandated the Government Accountability Office study the aviation maintenance workforce and review how the government can best support its growth. Well, in support of that effort – and a number of other aviation-related studies requested by Congress – Brett and Sarah became quite skilled at meeting with and briefing GAO report teams on issues ranging from career development to agency oversight to the compliance philosophy to airport noise.

In February, the first of those reports was released and it just so happened to be the one for which ARSA most-closely collaborated with Congress on the language mandating it. (Around the office, and nowhere else, the section of the FAA Reauthorization Act is called “Brett’s Law.”) It recognized some of the limitations of government data for tracking maintenance workers and encouraged the FAA to better coordinate with other agencies in support of the industry. The report itself provides a roadmap for industry to navigate government programs both inside and outside of the Department of Transportation, all of which are designed to help employers find and grow the talented people they need. Use the ARSA-supported GAO report as a resource (it will be discussed in the workforce breakout after breakfast).

I should note that in working with the GAO report teams, Sarah and Brett reach out to industry contacts for the “on the ground” perspective. Being attentive to GAO and OIG calls, providing both personal feedback and hard data, and working with government auditors, helps put pressure the FAA and other agencies to improve. There was a study last year by the DOT Office of Inspector General regarding the industry’s progress towards meeting the Automated Dependent Surveillance Broadcast (ADSB) Out mandate. While it took a little bit of effort, industry members were available to help and provided useful insight regarding the reality of compliance.

Unfortunately, success in getting money for the grant programs and good work by the GAO doesn’t mean there are no threats to our business in the halls of Congress. If anything, the legislative fate of the industry is more fraught than ever.

In November, we saw a new and significant threat to the maintenance industry emerge on Capitol Hill. While ARSA was disappointed when Peter DeFazio – the Oregon congressman who chairs the House Transportation Committee – introduced the Safe Aircraft Maintenance Standards Act (H.R. 5119), we weren’t surprised. Christian always has his ear to the ground on the Hill, so we knew something was coming and were preparing for the fight.

And fight we have. ARSA quickly assembled a powerful coalition of companies and associations representing airlines, manufacturers and, of course, maintainers. Aside from all the meetings ARSA has organized about H.R. 5119 on Capitol Hill, we’ve coordinated numerous coalition letters, industry media outreach and grassroots engagement. ARSA has a comprehensive online toolkit to help you get involved in preventing H.R. 5119 from becoming law.

Make no mistake about the threat posed by the H.R. 5119 – it’s a union-led effort to permanently disrupt the relationship between airlines and repair stations. Although on its face, foreign repair stations look like the primary target, it would impact U.S. air carriers and manufacturers directly and almost certainly result in retaliation by foreign aviation authorities against U.S repair stations. Put simply: Your foreign certificates – from EASA, China, etc. – are at risk. And even if you don’t have a foreign certificate, DeFazio is still gunning for you. The same day he pushed his bill through committee, he sent a letter to the DOT inspector general requesting an investigation of FAA’s oversight of U.S. repair stations.

Make no mistake: ARSA has never been more effective and visible on Capitol Hill, but the team isn’t large enough to do it all. Your engagement is critical to achieving positive results and preventing bad things from happening.

This is an election year, which means there are all sorts of opportunities to get involved. Coming to D.C. is a great start, but it is easy to do more: Host a congressional candidate at your facility, send a note to Congress objecting to H.R. 5119, learn more about ARSA PAC. And be sure to get out there and vote.

Everything ARSA does is done for members, so it’s vital that we ensure our companies continue to “give the association life.” Yesterday morning, you heard briefly about the first year of ARSA’s campaign to follow up with every contact at organizations whose memberships have lapsed. For two months, these members receive emails from Kimberly Dimmick, who manages all of ARSA’s member data, Christian, Brett and finally Sarah. The effort has recovered members that would otherwise have been lost, often because of bad email addresses or simple lapses in communication. Each quarter, the board reviews a list of members who’ve lapsed, reaching out to those we work with and clearing up any issues.

You can help by turning this effort on its head. Bringing lapsed members back is important, but so is growing the membership. Ask your business partners, suppliers and customers where they get regulatory compliance information…if it is from the FAA, point them to ARSA. Bringing in a new member expands our collective voice and brings you the benefit of reduced dues. While our team reaches out to everyone at the end, you can be the voice that brings them along at the beginning.

No matter your work on new memberships, make sure you’re taking advantage of yours! Getting newsletters and supporting ARSA’s work is a first step, but you should also be utilizing the tools/documents made available only to members, learning from our regulatory minds and getting assistance engaging with the government (from inspectors to elected officials).

One of the most important things that maximizes your value and supports ARSA is the association’s online training program. There are more than 80 hours of on-demand sessions currently available, covering topics from part 21 to 39 to 43 to 65 to 145 and a lot in between. You can help new sessions get created (if you have specific needs) and the association offers different models to incorporate this resource into your existing training program.

Since I mentioned MAG change 7 earlier, and since I’m talking training now, I should highlight that there are already members using ARSA’s brand-new human factors training series for compliance with the MAG’s training requirements. As the training team continues to build sessions, they will focus on keeping you compliant AND improving your business: Like those of us who’ve taken one of ARSA’s sessions have learned, there are a ton of good reasons to seek out great training.

In closing, I’d like to thank all of you for your attendance and engagement. In addition to the ARSA team members I’ve already mentioned, I want to highlight the work of the association’s Finance Manager Jennifer Kitching, who has done immeasurable work behind the scenes throughout this year and was a key part of making this year’s Conference possible.

We’ve reached a key point in the meeting. I get to take a break from orating, but now is our chance to get some work done together. I’m about to open the floor for questions and discussion. If something I’ve said has touched a nerve or inspired curiosity, bring it up. If there’s something you’d like to see done differently (or done at all), ask about it. If you, as our most-engaged members, have insight that can improve how this association does business, we’d like to talk about it.

So, what do you say?

[After open discussion, the 2020 Annual Member Meeting Adjourned.]

Maintenance Market Data for Facing New Crises

On March 11, the ARSA released its 2020 Global Fleet & MRO Market Assessment. The report, which was prepared for the association by aviation management consulting firm Oliver Wyman, assesses the current state of the global aviation maintenance market and projects continued industry growth through 2030.

The ARSA/OW report is released each March in conjunction with the association’s Legislative Day and used throughout the year to illustrate the industry’s broad economic impact and help leading maintenance companies anticipate future market trends. The 2020 study echoed findings from previous years: The global aviation maintenance industry’s total economic impact will near $100 billion in 2020 and will reach $130 billion by the end of the decade after a period of continued – but slowing – growth. New technologies, airline fleet modernization and the rising global middle class will power aviation business growth, even as they continue to struggle to recruit and retain the technical talent needed to meet expanding demand.

Along with this familiar storyline, including the usual economic uncertainty of long-term forecasts, the Oliver Wyman team chronicled a series of new crises that will challenge growth projections. In addition to the fallout from the United Kingdom’s exit from the European Union – the turmoil leading up to “Brexit” in 2019 gave international regulators time to blunt the worst effects – the new decade has brought new crises in the form of response to a global pandemic (coronavirus, which at the time of the report’s release had not yet expanded world wide) and constraints on new airframes entering the global fleet (resulting from increased 737MAX scrutiny).

“The report shows that interesting times are ahead,” said Brett Levanto, ARSA vice president of operations. “We’re quite used to growth projections by this point, particularly in developing economies, but this year’s come with the recognition that there are a lot of economic moving pieces that could pull [the market] dramatically in one direction or another.”

The report’s employment section describes a healthy U.S. market: Almost 288,000 Americans support aviation maintenance and manufacturing, producing more than $52 billion in economic activity each year. FAA-certificated repair stations – the companies forming the core of ARSA’s membership – are the largest employers with just less than 194,000 people at work in their U.S. facilities.

Considering those strong employment numbers and reflecting on the cost to industry posed by its desperate need for more technical workers, Levanto explained that global crises do not change the basic areas in which maintenance providers should focus for growth. “The message [of ARSA’s policy engagement] is consistent: smooth out international regulatory cooperation, stimulate career development and take advantage of the ability of repair stations to specialize by adapting to changing market conditions.”

Though the world has changed dramatically in the weeks since the reports release – ARSA has lead a successful industry-wide campaign to get the U.S. Congress to bolster industry employment during the unprecedented downturn caused by pandemic response – those points of emphasis remain the same. In particular, the current employment data should be used by repair stations when working with policymakers to seek additional resources in support of those working in the industry.

2020 Global Fleet & MRO MarketAssessment
prepared by Oliver Wyman

Executive Summary: 2020 Global Fleet & MRO Market Assessment
U.S. state-by-state overview of the 2020 industry employment and economic impact
Oliver Wyman Interactive Forecast Dashboard

The complete report is available only to ARSA members. To request access to it, visit arsa.org/contact.

Helping with Healing – ARSA Honors Scovel

Calvin Scovel, III. Photo courtesy U.S. DOT IG.

On March 13, ARSA recognized former Department of Transportation (DOT) Inspector General (IG) Calvin L. Scovel, III with its 2020 Leo Weston Award for Excellence in Service to Aviation Safety.

Scovel served as the department’s chief internal auditor and investigator since 2006, making him the longest tenured IG in the DOT’s history. He arrived in the position upon completion of a 29- year career in the U.S. Marine Corps. During his active service, Brig. Gen Scovel performed a number of high-level legal and advisory roles, with his last assignment as senior judge on the U.S. Navy-Marine Corps Court of Criminal Appeals. A review of his career path and the accolades and achievements along the way reveal that his ability to negotiate the hot winds of the executive branch, Congress and the media for thirteen years was based upon hard work, knowledge and fairness.

During Scovel’s tenure as inspector general, ARSA enjoyed a professional and productive relationship with the IG’s office. The association regularly provided insight, resources and industry connections for the office’s research teams and included its personnel in annual events. Most recently, Scovel provided the keynote address at ARSA’s 2018 Annual Conference. When he announced his retirement from federal service to focus on his family and battle prostate cancer, ARSA’s leadership team chose to honor its collaboration with him with the association’s highest award.

First bestowed in 2005 on Leo Weston, the Weston award honors individuals who embody his commitment to the industry. Weston was influential in ARSA’s birth, advocating as an FAA official for the creation of an organization to represent the interests of maintenance providers. Since then – across a long career of professional and personal dedication to public good – Weston has been a great inspiration for the association and its members. In his honor, ARSA regularly recognizes individuals who have made a lasting impact in furthering the principles of good government.

“I’ve said before that Cal and I – he insisted, ‘call me Cal’ though he certainly could’ve demanded a more grandiose address – share a sense of humor,” said ARSA Executive Director Sarah MacLeod. “It’s true that we did, mostly surrounding the ironies of the executive branch auditing itself, but we also shared a commitment to finding the facts and making good on them. His work was the very definition of good government and I’m glad to honor it today.”

Scovel’s selection as the Weston Award recipient was announced during the third day of ARSA’s 2020 Annual Conference. Though he was unable to attend, he shared a statement presented by MacLeod. In it, he expressed gratitude to the association and its members, describing their important place at the intersection of “safety and efficiency” in service of the global public.

For more conference updates, visit arsa.org/conference.

Aviation Maintenance Leaders’ D.C. Tour Includes White House, DOT Stops

On March 10, a small group of senior aviation maintenance industry professionals participated in a series of collaborative discussions with high-ranking federal officials. The group began the day with a White House policy briefing, followed by stops at the Departments of Labor, State and Transportation.

The meetings were part of the ARSA’s “Executive to Executive Briefings” series during which industry leaders have face-to-face discussions with government officials responsible for matters impacting aviation, manufacturing and international commerce. “E2E”, which was first hosted by ARSA in 2018, served as the official kick-off of the association’s 2020 Annual Conference.

Participation in the day of meetings is limited only to representatives from Conference sponsors, meaning those in attendance represent companies that are highly committed to ARSA’s broader goals of good government and reasonable oversight. The purpose of the day is to form and reinforce connections among and between agencies whose policies impacting repair stations and other aviation businesses. Getting beyond the walls of the FAA, where most aerospace stakeholders focus government engagement, facilitates better and broader understanding of key industry issues.

“The E2E day constantly reinforces both the fluid and consistent aspects of aviation policy,” said ARSA Executive Vice President Christian A. Klein, the association’s chief manager for the E2E Briefings. “Each year, we are able to address fundamental issues that we’ve been working on for years – availability of maintenance data, international regulatory harmony, a few others come to mind – but we also get to be on the front lines of new and emerging challenges facing the world economy.”

This year those emerging challenges included coronavirus response, increased scrutiny on certification and delegation practices resulting from the Boeing 737MAX and impacts of trade tensions between the U.S. and overseas partners. Since E2E participants represent multinational corporations, family-owned small businesses, aircraft parts manufacturers, service providers and industry service providers, the group was able to engage these topics from a number of angles.

The group got a break from its government meetings during a lunch stop at the Pennsylvania Avenue headquarters of Airlines for America. The association representing North American air carriers has been a close ally of ARSA for years, and its President & CEO Nick Calio welcomed participants to touch base on the policy priorities of an important set of maintenance industry customers: part 121 air carriers. After Calio was called away for a White House meeting concerning aerospace needs in response to COVID-19 business impacts, A4A Senior Vice President of Regulatory and Legislative Policy Sharon Pinkerton joined the group to continue the discussion.

Having completed its “E2E” day, ARSA will host members for a day of legislative engagement on Wednesday, March 11 before closing out the week with two days of regulatory and business content presented through its traditional Annual Repair Symposium. For conference updates throughout the week, visit arsa.org/conference.

In addition to ARSA’s personnel, the following organizations participated in activities related to the E2E briefings:

AeroKool Aviation
Aircraft Electric Motors
Columbia Helicopters
Component Repair Technologies
COOPESA
First Aviation Services Inc.
Wencor Group
HAECO Americas
HEICO
IAR Technical Services
Lufthansa Technik
SONICO, Inc.

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.

Congressional Relief?

By Christian A. Klein, Executive Vice President

The pandemic response bill President Trump signed on March 27 – the Coronavirus Aid, Relief and Economic Security (CARES) Act (“the Act”) – will provide economic relief to most ARSA members and their employees affected by the coronavirus disruptions – with strings. This month’s “Legal Brief” provides a top-level analysis to help you understand the options.

The legislation is extremely complex and involves many different aspects that must be studied with appropriate professional advice. As with any “Legal Brief” in the hotline, this article isn’t legal, financial or tax advice and cannot be relied on for making any decisions. Read the bill and applicable agency guidance before making any decisions.

The first complication is there are three buckets of money for aviation. Which bucket to tap into will depend on how big the company is, whether it is an FAA-certificated repair station, who the customers are and where the business is located.

Paycheck Protection Program

Since 80 percent of repair stations are small or medium sized entities, the first bucket can benefit most ARSA members. Congress recognized that smaller companies are particularly vulnerable to economic disruptions. As such, Title I of the Act (Secs. 1101 to 1114) includes a $349 billion forgivable “paycheck protection” loan program for companies with 500 or fewer employees or that meet the definition of small business based on their NAICS code. The table below shows the NAICS codes most applicable to ARSA members and the related Small Business Administration (SBA) size standards effective August 19, 2019. The full table is available here.

The maximum loan amount is the lesser of $10 million or average monthly payroll costs in 2019 multiplied by 2.5. The money borrowed can be used for:

• Payroll costs
• Group health insurance costs
• Employee salaries, commissions or similar compensation (up to $100,000 on an annualized basis for each employee)
• Mortgage interest payments
• Rent
• Utilities Interest on debts

Assuming the money is used for the covered purposes, the amount of the loan equal to eight weeks payroll costs, mortgage interest, rent and utility payments may be forgiven and the debt cancelled. The forgivable amount is reduced if the company lays off workers or cuts pay.

More information about the Paycheck Protection Program, including the application, is here.

Air Carrier Worker Support

The second bucket is direct financial assistance through the Air Carrier Worker Support (ACWS) program created by Title IV, Subtitle B of the Act (Secs. 4111 to 4120). Generally, the ACWS program provides $25 billion for assistance to airlines, $4 billion for cargo carriers and $3 billion for airline contractors. It was designed to provide relief to airlines and the companies that serve them – or more specifically, their employees.

Unlike the general small business loan program, ACWS money can be used only for the continued payment of employee wages, salaries and benefits. The money also comes with more strings. In addition to executive compensation limits, applicants must agree to:

• Use ACWS payments exclusively for the continuation of employee wages, salaries, and benefits
• Not conduct involuntary layoffs or furloughs, or reduce employee pay and benefits, until September 30, 2020
• Not engage in stock buybacks or pay stock dividends through September 30, 2021.

Due to the way the Act was drafted, it’s difficult to confirm which businesses qualify for relief. The definition of contractor is unclear – both what it says and doesn’t say. “Contractor” is defined at Sec. 4111(3) as:

(A) person that performs, under contract with a passenger air carrier conducting operations under part 121 of title 14, Code of Federal Regulations –
(i) catering functions; or
(ii) functions on the property of an airport that are directly related to the air transportation of persons, property, or mail, including but not limited to the loading and unloading of property on aircraft; assistance to passengers under part 382 of title 14, Code of Federal Regulations; security; airport ticking and check-in functions; ground handling of aircraft; or aircraft cleaning and sanitization functions and waste removal; or
(B) a subcontractor that performs such functions. (Emphasis added.)

While maintenance-related functions are not included, the list is in non-exclusive (“including not limited to”) language; meaning other types of service companies whose employees are intended to benefit from the relief should be included. Chief among these, of course, are FAA-certificated repair stations that perform maintenance under contract for airlines on airports.

It is hard to imagine a function more directly related to air transportation than maintenance, which ensures aircraft can fly! In other words, repair stations operating at airports and serving air carriers should qualify for relief based on the plain language of statute. The big question is whether the Treasury Department will agree. Although most ARSA members are not located on or even near airports, the association is seeking clarity.

The term “subcontractor” in the section quoted above is equally confusing. The statutory language says that the subcontractor is to perform “such functions” but does not specify where those functions may be performed. The intent of the legislation is that companies serving the airline industry affected by the pandemic-related disruptions need resources to compensate employees. ARSA obviously believes that the language in the Act should be broadly construed to ensure maximum benefit. One way to do that is to include subcontractors that are not located at or on airports.

Off-airport subcontractors also play an essential role in keeping aircraft flying.

ARSA is working to ensure the bucket can be used by any facility providing maintenance services as a subcontractor as long the contractual obligations are directed by an airline contract. The position is based on a plain reading of the statute; time will tell whether the folks writing the checks will agree.

More information about this program from the Treasury Department, including application instructions is available here. (Unfortunately, it doesn’t answer the questions raised above about maintenance contractor and subcontractor eligibility.)

Economic Assistance and Stabilization Loans

A final bucket in the Act for repair stations (and other businesses) that don’t qualify for other assistance are loans through Title IV, Subtitle A of the Act. Sec. 4003(a), which makes $500 billion available. Of that amount, $25 billion is set aside in Sec. 4003(b)(1) specifically for FAA-certificated part 145 repair stations, airlines and ticket agents. An additional $17 billion is reserved for companies deemed critical to maintaining national security.

The strings and eligibility requirements include the borrower being an eligible business for which credit is not reasonably available; the loan must be sufficiently secured or is made at a rate that reflects the risk of the loan and not less than interest rates in effect prior to the coronavirus outbreak and it may not be longer than five years.

Borrowers are prohibited from engaging in stock buybacks and issuing dividends during the life of the loan and for 12 months after it is paid back. They must agree to executive compensation limits and maintain, until Sept. 30, 2020, employment levels as of March 24, 2020. The borrower must also be a U.S. business that has incurred or expected to incur losses that jeopardize business operations.

Sec. 4003 also creates a special loan program for companies (not just aviation related) with between 500 and 10,000 employees with a fixed interest rate of no more than two percent and deferred payments. These loans come with even more strings, including the requirement that borrowers promise to remain neutral in union organizing elections and not “outsource or offshore jobs” for the term of the loan and two years thereafter.

More information about these loans from the Treasury Department is available here.

Most ARSA’s members and their employees can benefit from one of the programs discussed; if yours cannot, let us know about the roadblocks. Congress is starting discussions about the next round of pandemic bills, so please send your suggestions for other relief that would help the industry.

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ARSA on the Hill

Lobbying in Real Time

By Christian A. Klein, Executive Vice President

Sometimes things change so quickly it gives you whiplash.

March kicked off with ARSA’s team focused on the association’s Annual Conference (March 10 to 13). An event that now includes a full day of executive branch briefings (our “Executive-to-Executive” or “E2E” Day) followed by a full day on Capitol Hill.

How innocent the two dozen MRO sector leaders were when they gathered at the White House on the morning of Tuesday, March 10 for the first E2E meeting of the day. The pandemic was in the background and social distancing measures were only starting. Thus, all meetings went as planned and the focus of conversations was on the workforce (attracting and retaining technical talent) and the importance of global commerce to the aviation maintenance industry.

Our Legislative Day on Capitol Hill on Wednesday, March 11 was similar. The fifty or so participants spent the day in meetings with legislators and congressional staff urging full funding for the new aviation workforce grant programs (see update below) and opposition to the anti-repair station bill (H.R. 5119). As a precaution against the virus, there was less handshaking than usual, but otherwise everything was normal.

The lull before the storm ended on the evening of Wednesday, March 11 when the president announced restricting travel from Europe. That announcement was quickly followed by Congress shutting its doors on Thursday, March 12; culminating in the national emergency declaration on Friday, March 13.

The scale of the pandemic and aviation sector impacts became very clear over the weekend, so the association quickly shifted to damage-control mode. Monday, March 16 was spent on the telephone, talking to ARSA members around the world, industry allies in D.C. and congressional contacts. With facts and data in hand, on Tuesday, March 17 a relief plan was developed. The proposals – a tax credit for aviation maintenance work and loans and grants for repair stations – formed the basis of a letter to the president, treasury secretary and congressional leaders that evening.

The message was simple: repair stations need access to cash and credit to maintain the workforce. If  forced to lay people off, ramping up maintenance activity when things return to normal would be impossible for most organizations, which will make it that much more difficult to ready the U.S. fleet for operations.

Once the proposals were in the hands of leading policymakers,  ARSA members engaged in a grassroots campaign. Dozens of association members around the country answered the call to action by sending emails to their members of Congress (with many bringing other industry professionals into their outreach). With particular thanks to intensive engagement by a handful of leading ARSA member companies, two members of Congress – Senators Jim Inhofe (R-Okla.) and Tammy Duckworth (D-Ill.) stepped up to champion the cause. The next several days were spent engendering more grassroots actions from companies in key states willing to reach out to and following up with congressional representatives and staff urging support for initiatives Sens. Inhofe and Duckworth were championing.

Periods of intense activity were punctuated by brief lulls during which it felt a bit like the expectant father in waiting room you see on old TV shows. We knew a baby was coming eventually; the question was what it would it look like.

If you were watching the legislative machinations surrounding the relief bill, you saw lots of stops, starts, partisan bickering and alternative proposals. The process was complicated by the fact that lawmakers wanted to craft a package that could pass both chambers of Congress without objection so that House members would not have to travel back to D.C. from all around the country to vote in person.

Ultimately the Senate and House passed a massive relief package the week of March 23 and President Trump quickly signed the bill.

So, how did we do?

It’s fair say that almost no one got everything. Negotiations took place in a literal or figurative “small room” among and between Treasury Secretary Steven Mnuchin, Senate Majority Leader Mitch McConnell (R-Ky.), Senate Minority Leader Charles Schumer (D-N.Y.) and House Speaker Nancy Pelosi (D-Calif.). Although committee leaders were charged with developing portions of the bill related to their areas of jurisdiction, many of the final decisions were being made in that virtual room, which made it difficult for the outside to influence the outcome.

The need for speed meant that traditional opportunities to help shape the legislation weren’t available; there was little time to review the massive 800+ page bill before voting. There was no coordinated multi-association coalition through which to leverage resources and share intelligence.  And Senators were loath to cast objections that would slow the distribution the aid.

Despite the whiplash, ARSA and its members succeeded in shaping important elements in the bill. The small business message clearly broke through and companies with under 500 employees or that are small businesses based on their NAICS codes can get forgivable loans to cover several weeks payroll and expenses.

The impact of the pandemic on the maintenance industry also resonated. Repair stations are specifically eligible to tap into a $25 billion bucket of loan money available only to the maintenance industry, airlines and ticket agents. There’s a separate bucket of loan money available to companies that are considered essential to national security, which will likely cover businesses with Department of Defense contracts. Finally, there’s a separate program to provide financial resources (i.e., grants) to airlines and their contractors (and subcontractors). While repair stations are not specifically mentioned in that provision, it’s hard to imagine that maintenance would not be considered a function essential to air transportation for purposes of that program. (For a more detailed analysis of these programs, please see this month’s “Legal Brief”.)

There’s a lot in the bill not to like. We would have preferred the relief for airline contractor section of the bill to specifically list maintenance to allay any. And the government money comes with a lot of strings attached. For example, an ambiguous and open-ended limitation on loan recipients “outsourcing and offshoring” work will almost certainly result in headaches down the road.

Nevertheless, the effort was historic. Deep appreciation is owed those that took the time to make the industry’s voice heard. That activism is helped provide  support for 250,000 men and women working the U.S. aviation maintenance sector.  If you or your company didn’t get involved, this effort underscores how effective your voice can be; you will have no excuse for avoiding the next call to action.

The next time may be soon. Lawmakers are gathering ideas for the next relief bill. If you have suggestions now is the time to shoot me a message at christian.klein@arsa.org.

Keeping Workforce Front and Center

Despite the focus on pandemic relief, ARSA’s eye has not left the workforce ball. The present crisis will pass. As things return to normal, the industry will still be facing the technician shortage.

While the maintenance industry skills gap won’t be solved by the federal government alone, there are things that Washington, D.C. can do to help.  One is distributing the money for the workforce grant program that ARSA helped created as part of the 2018 FAA reauthorization law. Congress fully funded the maintenance technician and pilot education grant programs for FY 2020 at $5 million apiece. As the FY 2021 appropriations process gets underway, working to ensure the program is funded next year will begin in earnest.

On March 9, the ARSA-led workforce coalition sent a letter signed by more than 40 groups to the leaders of the House and Senate appropriations committees urging full funding. Reps. Sam Graves (R-Mo.) and Dan Lipinski (D-Ill.) and Sens. Jim Inhofe (R-Okla.) and Maria Cantwell (D-Wash.), who led the creation of the grant program, coordinated letters in support to the leaders of their chambers’ appropriations committees. More than a quarter of the Senate joined the Inhofe-Cantwell letter, while more than 50 House members signed onto the Graves-Lipinski effort. While a great showing of support has been attained, the momentum can easily be lost without constant pressure—be ready to respond to requests for action in this arena.

In terms of implementing the program, although Congress has made money available, the FAA has yet to provide information about how to apply for grants. ARSA is urging the money be distributed as quickly as possible as additional stimulus for schools and companies grappling with workforce challenges.

Information about what you can do to support our grant program funding efforts is at arsa.org/legislative/grant-program-action-center.

As always, stay tuned to ARSA for further developments.

ARSA Honors Lawrence for Workforce Development Leadership

U.S. Rep. Brenda Lawrence (D-Mich.) received ARSA’s 2020 Legislative Leadership Award at a March 11 Capitol Hill ceremony.

In 2018, Lawrence was an original cosponsor of bipartisan bill to address the well-documented aviation maintenance technician shortage. The legislation, which was enacted into law as part of the 2018 FAA reauthorization bill, created a new grant program to encourage schools, aviation businesses, unions and government entities to collectively address the maintenance workforce skills gap. During the current Congress, Lawrence (a member of the powerful House Appropriations Committee) helped ensure the program was fully funded for Fiscal Year 2020.  

The award was presented by ARSA Executive Vice President Christian A. Klein at a luncheon held as part of the ARSA’s 2020 Legislative Day. Each year the association honors a member of Congress who has proven to be an ally to those working every day to keep the world safely in flight.

Lawrence, who was first elected to Congress in 2014, has significant experience with education issues.  In addition to serving as mayor of the City of Southfield and president of the Southfield City Council prior to being elected to Congress, she served on the Southfield Public School Board of Education as president, vice president and secretary.

In presenting the award, Klein noted that Michigan’s aviation maintenance industry supports more than 7,700 jobs and contributes $1.6 billion annually to the state’s economy. “The new program that Rep. Lawrence helped created will prepare students in Michigan and around the country for well-paying careers in a growing, high-tech, global industry. We’re immensely grateful for her dedication and leadership in the area of career technical education.”

ARSA EVP Christian Klein presents U.S. Rep. Brenda Lawrence with the association’s 2020 Legislative Leadership Award.

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Training

Can You Define “Appliance”? (15 min. sessions)

A series of three 15-minute sessions critically reading the regulations in 14 CFR. The sessions use the term “appliance,” which appears in countless places across the aviation safety rules, as the focus on this exploration.

The sessions should be viewed in order and may be purchased together for a discounted price by clicking here. Please note that since these sessions are less than an hour long, special pricing applies:

Session 1: “Appliance” Defined

This session provides participants a lesson in reading regulations with a critical eye. Many aviation terms used during the “normal” course of a day are taken for granted. Meanings and expectations are set by “tribal knowledge” rather than first-hand review. This session helps ensure each word in a aviation safety regulation is read carefully so any exceptions or conditions are understood.

Click here to register and get access for 90 days.

Session 2: “Appliance” Applied

This session provides participants information on when and how the word “appliance” is used within the design, production, operation and maintenance rules.

Click here to register and get access for 90 days.

Session 3: “Appliance”  – Yes, No or Maybe

This session provides participants the opportunity to test their knowledge of whether an article is an appliance by using case studies.

Click here to register and get access for 90 days.

Registration for an ARSA-provided training session includes:

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

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

From the Library of Congress – Tracing Federal Regulations

“Starting with the rule” is a fundamental tenant of ARSA’s regulatory advocacy. Certificate holders are bound to comply with the regulations and the government is bound to enforce them. To help serve that end and bolster your own understanding of American administrative procedure, spend time with this 2014 blog entry from the law librarians of Congress:

How to Trace Federal Regulations – A Research Guide

“Our patrons at the Law Library of Congress frequently ask us for assistance in investigating the origins and statutory authority of federal rules and regulations. And no wonder–regulations are important to understand, because they have the force and effect of law just as federal statutes do, though they are not issued by Congress. Instead, rules and regulations are created by a federal body such as an agency, board, or commission, and explain how that body intends to carry out or administer a federal law. In fact, these rules and regulations can often affect our everyday lives even more directly than statutes, by laying out the details of how we go about following the laws passed by Congress. This Research Guide will address the basics of how to “trace” a federal regulation, in order to not only derive its statutory authority, but also to learn more about its origins and history.” Read more.

Regulatory Compliance Training

Test your knowledge of 14 CFR § 1.1 – Definitions and Abbreviations [selected definitions related to “appliance”].

Click here to download the training sheet.

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Membership

ARSA Thanks Erickson, Jordan for Board Service

[Note: Gary Jordan was unable to attend the 2020 Annual Conference, missing the event for the first time in nearly two decades.]

ARSA 2020 Vice President Gary Fortner (left), presents Chris Erickson with a plaque in recognition of his service to the association.

During its annual member meeting on March 13, ARSA recognized Chris Erickson of Erickson, Inc. and Gary Jordan of Jordan Propeller Service for their many years in association leadership

positions. Erickson and Jordan completed their final terms on ARSA’s Board of Directors at its October 2019 annual meeting.

Erickson began his aircraft maintenance career in September 1969 at Big Bend Community College in Moses Lake, Washington. He has held numerous positions at Erickson (the company) since arriving as a Sikorsky S-64 crew chief in 1981. He joined ARSA’s board in 2002 and represented the interests of both helicopter and engine businesses for nearly two decades. In September 2019, the FAA presented him with the Charles Taylor Master Mechanic Award, which recognizes the lifetime accomplishments of senior mechanics.

Jordan has worked with propellers since 1956, purchasing his San Antonio, Texas-based company from his father in 1980 and serving as its president for the past 40 years. He was one of the founders of the World Aircraft Propeller Association (WAPA) and its first president in 1992. Since joining the ARSA Board in 2005, he has represented the interests of general aviation businesses and provided a small business prospective on behalf of the association’s membership.

“Chris and Gary combined for more than 30 years of service to the Board and association, held leadership positions for multiple years, and both served as ARSA’s president – Gary in 2012 and Chris in 2010.  Each has provided steady commitment to the association’s membership. I’m thankful for their good fellowship and hard work and I’m proud to be here to help honor their service,” said Gary Fortner, ARSA 2020 vice president and vice president of engineering and quality control at Fortner Engineering (Fortner presided over the member meeting in the absence of 2020 President Ian Cheyne).

The annual member meeting began the final day of ARSA’s 2020 Annual Conference. For more conference updates, visit arsa.org/conference.

Quick Question – Pandemic Response

Since the president of the United States declared on March 13 a state of national emergency concerning the novel coronavirus, ARSA has been at work on behalf of the aviation maintenance community. For resources from the association, updates on its actions and tools for getting involved, stay tuned to arsa.org/anti-viral-measures. 

Help review the association’s focal points for pandemic response and provide insight into your business needs by completing this month’s “quick question.”

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

Note: The survey below is in an embedded window and you may need to scroll down within the window to see/click the “Submit” button.

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

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

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 March:

New Members (Member Category)

ALOFT AeroArchitects, R05
C&C Aerosystems, LLC, R01
Latitude Aero, LLC, R01
Southeast Turbines Corporation, R01
STS Repair & Modification, LLC, R05

Renewing Members (Member Category, Member Since)

24Jets dba Alirio Aircraft Services, Inc., R01, 2019
Advanced Composite Structures Florida, LLC, R03, 2015
Aerospace Turbine Rotables, R01, 2016
Aircraft Tooling, Inc., R02, 2004
Asko Processing, Inc., R04, 1996
Avionics Shop, Inc., R01, 2011
Barfield Precision Electronics, LLC, R04, 1996
Cargo Systems, Inc., R01, 1999
Carpe Diem Aviation Services of Missouri, Inc., R02, 2012
Consolidated Turbine Specialists, LLC, R03, 2018
Darrell Irby/Tarrant County College, Edu, 2017
Earp Aviation Repairs LLC, R01, 2019
Erickson, Inc., R05, 1997
Harman’s Repair Station, Inc., R01, 2012
LAUNCH Technical Workforce Solutions, R01, 2019
Liebherr-Aerospace Saline, Inc., R05, 2006
LORD Corporation, R04, 2002
Master Air Parts, Inc., R01, 2013
Nelson Engineering Co., R02, 2013
Russell Buckley, Affil, 2013
S3 Repair Services, LLC, R01, 2010
Signature Aviation, Corp, 2013
SONICO, Inc., R03, 1995
Stein Seal Company, R02, 2017
Tailwind Inspection, Inc., R01, 2006
Thales Avionics, Inc., R04, 2006
Vanguard Aerospace, LLC, R01, 2016
Western Aero Repair, Inc., R03, 2011
Windsor Airmotive West Chester Division-Barnes Aerospace, R04, 1995
World Class Accessory, Inc., R01, 2007

A Member Asked…

Q: First off, great job of keeping everyone informed over the past several weeks. We would truly be flying blind without you.

I am trying to figure out what the big relief bill [The Coronavirus Aid, Relief and Economic Security (CARES) Act] means for our company and want your additional perspective.

What procedures do we have to follow in order to apply for assistance under the law?

Thank you again for your guidance, advocacy, and continuing support.

A: The association’s Anti-Viral Measures page is being updated regularly with information on the various programs, departments and implementation measures. While the association is certainly not providing legal, tax or other financial or professional advice in this arena, the general approach would be to determine which of the many “relief” programs are applicable.

So you may start with determining if you are a small business—to ferret that out use the NAICS Identification Tools to review each description in detail – while the general description uses the term “manufacturing,” many of the codes include “overhaul” and other maintenance activities.

Next, review your current financial situation with appropriate tax, financial, business and legal professionals to determine which loan or relief provision(s) will be best for your company and employees.

The general descriptions of the possibilities provided by ARSA is not a substitute for careful review and consideration of any “Catch-22” elements that always come with “help” from the government!

For a review of CARES Act implementation so far, see this month’s Legal Brief.

Member questions should be submitted through the inquiry system run through ARSA’s new online member portal. Members can use their portal access to submit inquiries by logging in through arsa.member365.com/sharingnetwork.

Make ARSA’s Voice Your Own: Advertise

ARSA has a menu of advertising opportunities for arsa.org, the hotline and the ARSA Dispatch. Take advantage of these great opportunities today to showcase your company, a new product or event. For more information go to arsa.org/advertise.

Stand Up for ARSA by Sponsoring

In 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.

Anti-Viral Measures

For the use of its members and the larger aviation community, ARSA is maintaining this page as a resource for pandemic-related updates on policy initiatives and business needs. It is the association’s central point of communication on the topic

H.R. 5119 – Contract Maintenance Under Attack

Help combat a bill introduced in the U.S. Congress that would disrupt the global aviation industry.

The U.S.-EU MAG

Keep up to date on ARSA’s analysis and resources related to the Maintenance Annex Guidance issued under the bilateral agreement between the United States and the European Union.

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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