November 2013

Table of Contents
Latest News
Blogs
Legal Briefs
ARSA on the Hill
Regulatory Outlook
Quality Time
Membership
AVMRO
International News
Welcome New Members
Regulatory Compliance Training
Upcoming Events

Latest News

Presidents Blog: Building the Future in Manageable Increments

ARSA President Gary Jordan discusses the board of directors’ unanimous approval of a strategic planning process that includes measurable product for the benefit of the membership and the industry. To read Jordan’s blog, as well as other commentary issued during the month of November, please visit http://blog.arsa.org/?p=276.

ARSA Board: Membership Dues Aligned to Support “ARSA 20-20” Strategic Plan

For over 25 years, ARSA has been the voice of aviation maintenance, promoting and defending the industry in the regulatory, legislative, and media arenas. To ensure the association’s continued growth in these areas, both domestically and abroad, the ARSA Board of Directors recently approved the new “ARSA 20-20” strategic plan. Read more at http://arsa.org/arsa-board-membership-dues-aligned-to-support-arsa-20-20-strategic-plan/.

ARSA Joins Allies Opposing Increased Passenger Tax

On Nov. 20, ARSA joined seven other industry associations on a letter to House and Senate Budget Committee Chairmen Paul Ryan (R-Wis.) and Patty Murray (D-Wash.) opposing an increase of the 9/11 Passenger Security Tax in the budget deal currently being hammered out on Capitol Hill. Read more at http://arsa.org/arsa-joins-allies-opposing-increased-passenger-tax/.

ARSA Highlights Concerns on Order 8130.21H

On Nov.19, ARSA sent a letter to the FAA concerning the prohibition on early compliance of FAA Order 8130.21H, specifically the ability to use the revised FAA Form 8130-3 before its Feb. 1, 2014 effective date. Read more at http://arsa.org/arsa-highlights-concerns-on-order-8130-21h/.

On Nov. 20, the Senate Homeland Security Committee endorsed Jeh Johnson, President Obama’s nominee to lead the Department of Homeland Security (DHS), by a voice vote following Johnson’s testimony earlier this month. Read more at http://arsa.org/dhs-nominee-clears-key-hurdle/.

MacLeod Kicks Off AMTSociety Seminars in Houston

On Nov. 20 in Houston, Texas, Obadal, Filler, MacLeod & Klein (OFM&K) Managing Member and ARSA Executive Director Sarah MacLeod kicked off a series of aircraft maintenance educational seminars known as AMTSociety’s IA Renewal Consortium. The next seminar, featuring OFM&K Managing Member and ARSA Managing Director & General Counsel Marshall Filler, will take place on Jan. 8 in Atlanta, Ga. Presentations during these seminars will address topics including maintenance regulations, major/minor, and maintenance recordkeeping. Seminars will continue through March 2014. Event dates and locations are:

January 8, 2014 – Atlanta, Ga.
February 12, 2014 – Kansas City, Mo.
March 5, 2014 — Aurora, Colo.
March 25 & 26, 2014 — Las Vegas, Nev.
April 5, 2014 – San Antonio, Texas, in conjunction with 2014 ATEC Conference

ARSA members can attend the next series of AMTSociety Education/IA refresher events without being an AMTSociety member. Registration is $42.00 in advance and $62.00 at the door. ARSA members are encouraged to preregister by contacting Jill.burnett@cygnus.com. 1-800-547-7377 x2104. Read more at http://arsa.org/wp-content/uploads/2013/10/AMTSociety_FP_AMT_1113-3.pdf.

ARSA’s Filler Kicks Off AVM Summit

On Nov. 21, ARSA Managing Director and General Counsel Marshall Filler gave the keynote address at the AVM Summit USA in Orlando. The two-day event brings together members of the maintenance industry to discuss the latest policies, issues, and challenges facing commercial and business aviation. Read more at http://arsa.org/arsas-filler-kicks-off-avm-summit/.

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Blogs

If You’re Not at the Table, You’re on the Menu

ARSA Vice President of Legislative Affairs Daniel Fisher discusses the Aviation Security Stakeholder Participation Act and why it’s important for the industry to remain politically and legislatively engaged. Read blog post at http://blog.arsa.org/?p=280.

On Planned Growth

ARSA Executive Director Sarah MacLeod discusses the association’s future strategic direction. Read blog post at http://blog.arsa.org/?p=274.

To read ARSA’s other blog posts, be sure to visit http://blog.arsa.org/.

Legal Briefs

The Rulemaking Process: Getting Involved

Repair stations must interact with the Federal Aviation Administration (FAA) and comply with its regulations. While the requirement to comply is the same for both rules and laws, distinctions exist between how an administrative agency promulgates a regulation and how Congress passes a statute.

Most importantly, you can have an immediate and direct impact on the rulemaking process, while affecting legislation will take much more effort and time.

Administrative Agencies
Administrative agencies, like the FAA, are part of the executive branch. In the United States, the legislative branch makes laws; however, Congress has neither the resources nor expertise in all areas. Thus, the legislative branch delegates power to administrative agencies to create regulations in order to carry out particular purposes. In the FAA’s case, the agency has the authority to regulate aviation safety. This authority to create obligations is not unfettered. Congressional statutes and presidential orders control the process and guide agency action.

The Administrative Procedure Act (APA) guides all executive agencies, and § 553 dictates the procedures that must be followed to make rules. Congress also passed the Regulatory Flexibility Act (RFA) and the Small Business Regulatory Enforcement Act (SBREFA) to improve the rulemaking process and its impact on small businesses. Finally, presidential executive orders also add requirements.

Notice and Comment Rulemaking
A key component of the APA is the notice and comment period; agencies are required to give interested parties the opportunity to participate by publishing proposed and final rules and soliciting comments. In some situations, an agency may be exempt from these requirements if there is good cause, such as an immediate threat to air safety.

When deliberating a new or amended rule, an agency publishes a notice of proposed rulemaking (NPRM) in the Federal Register. The NPRM includes the specific regulatory text as well as the agency’s rationale and justification. The preamble should fully explain why this rulemaking is necessary and provide statements that satisfy the requirements of RFA and SBREFA. Additionally, regulators must explain the underlying problem that led to the proposal as well as why that solution is best.

Getting Involved
Once an agency publishes an NPRM, the public have the opportunity to comment. The NPRM includes the deadline for comments, typically 60 days, filing procedures, and contacts for further information. You may request more time for submission if there is adequate justification. For example, a rule’s complexity may require extra deliberations to formulate effective comments.

Involvement in the comment period is essential; it is the opportunity to influence rulemaking; you have the ability to enhance an agency’s knowledge and help improve rules. Effective comments provide explanations of how the proposal affects you, your expertise in the area, and objective evidence and data that supports or contradicts the agency’s rationale.

***Interested in learning more about the rulemaking process? Check out ARSA’s online training offerings at ARSA.org today!***

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ARSA on the Hill

By Daniel Fisher, ARSA vice president of legislative affairs

In November, ARSA’s legislative team continued implementation of the “lift the ban” lobbying effort, including working with select lawmakers to have legislation permitting the FAA to certificate new foreign repair stations ready to be introduced early next year if the Transportation Security Administration doesn’t finalize repair station security rules.

The association also worked with Senate Homeland Security & Government Affairs Committee members to ensure the repair station security regulations delay was raised during the confirmation process for Homeland Security Department nominee Jeh Johnson.

In order to raise the aviation maintenance industry’s visibility during the 2014 midterm elections, legislative team members have been meeting with candidates from around the country to educate aspiring lawmakers about repair stations. Over the past few weeks, the association met with congressional candidates Andy Tobin (R-Ariz.), Darlene Senger (R-Ill.), and Jim Tracy (R-Tenn.). Is there a candidate in your area who should be on our radar? Please let us know.

ARSA PAC continues to encourage support from those who have given prior consent. Twenty-one individuals have given $7,240 so far this year.

Regulatory Outlook

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. Read more at http://arsa.org/wp-content/uploads/2013/12/hlNov13-FDYTC-20131107-1.pdf.

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Quality Time

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

Involuntary Servitude in Employment Cases?

By Jonathan w. Yarborough, Constangy, Brooks & Smith, LLC, 80 Peachtree Rd., Ste. 208, Asheville, NC 28803-3160. © 2013 Jonathan W. Yarborough ALL RIGHTS RESERVED.

I handled a case where an employee was terminated for making negative statements about management, including calling the owners “slave drivers.” They weren’t; the facts were that she worked less than 40 hours a week and was the first out the door every day.

Referring to bosses as slave drivers did raise the question as to whether you can have involuntary servitude in today’s workforce contrary to Amendment XIII, Section 1 of the United States Constitution that provides:

Neither slavery nor involuntary servitude, except as a punishment for a crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.

Several courts, including the United States Supreme Court, have addressed employee allegations that conditions of employment amounted to involuntary servitude. One such case involved an employee assigned to work with two 21-year-old women in a “disorganized, loud and unprofessional” hotel suite; these conditions made it difficult for her to accomplish her assignments. Not surprisingly, the court dismissed her claim, concluding that while her working conditions might not have been the best, she remained free to leave the job at any time.

The court observed that “‘involuntary servitude’ was intended to cover those forms of compulsory labor akin to African slavery which in practical operation would tend to produce undesirable results.” The court also noted, “Modern day examples of involuntary servitude have been limited to labor camps, isolated religious sects, or forced confinement.” An employee subject to oppressive work hours, pay or other conditions of employment has the right to change employers. In my case, the employee never claimed physical restraint or actions that prevented her from leaving work; rather the employee was free to quit at any time.

There have been cases, however, where an VIII Amendment claim has prevailed. In one case, a religious sect used and threatened to use physical force to make children perform labor; the children believed they had no viable alternative but to perform the work. In another case, employers at a migrant labor camp held farm workers in involuntary servitude by forbidding them from leaving without paying their debts, enforcing the rule with threats of physical harm, by inflicting physical injury, and by kidnapping and returning the workers to the farm if they attempted to leave.

Indeed, the Supreme Court of the United States has observed it is “possible” that threatening an immigrant with deportation might amount to a “threat of legal coercion” resulting in involuntary servitude. In that case, however, the Court rejected the migrant workers’ claim that they were threatened with deportation. The Court reasoned that involuntary servitude meant action by the master causing the servant to have, or to believe he has no way to avoid continued service of confinement. It did not mean a situation where there is a known choice between continued service and freedom, even if the choice may entail exceedingly bad consequences. Therefore, “…while a credible threat of deportation may come close to the line, it still leaves the employee with a choice.”

Employers who threaten immigrant employees with deportation may indeed risk liability from a lawsuit claiming involuntary servitude. On the other hand, as long as an employee can quit, allegations of uncomfortable or oppressive working conditions, even those involving federally protected rights to be free of discrimination or harassment, will not trigger a viable involuntary servitude claim.

Contracts – Elements and Formation

By Steven E. Pazar, Attorney at Law, 11 Carriage House Lane, Boxford, Massachusetts 01921. © 2013 Steven E. Pazar ALL RIGHTS RESERVED.

Steven is a counselor to businesses operating in high-risk industries, including aviation. He provides templates, tools, and training to improve contracting efficiency, close deals faster, and control costs.

A contract is simply an agreement between two or more persons to do or not to do a particular thing. However, as with most legal concepts the devil is in the details.

In most jurisdictions, a contract is enforceable if it contains four basic elements:

(1)   competent parties;

(2)  proper subject matter;

(3)  offer and acceptance; and

(4)  consideration.

Competent Parties: The individual making the contract must have authority to bind themselves or the party represented. For businesses, this authority can be express (actual or implied) or apparent (view from the standpoint of the third person). (See: http://www.pazarlaw.com/authority-to-bind-you-did-what/.)

Incompetent parties can include minors and those suffering from mental deficiencies or intoxication. Contracts made between one or more incompetent parties will be deemed unenforceable.

Proper Subject Matter: The subject matter must be definite and lawful. This part contains the what, when and where of the agreement. A definite subject matter is generally contained in a detailed scope of work or scope of services. The subject matter must be complete and unambiguous.

The purpose must be lawful; an agreement to commit a criminal act or one that is contrary to public policy will be deemed not only illegal but unenforceable.

Offer and Acceptance: This element is sometimes referred to as the “meeting of the minds.”

An offer is the signification by one party of the willingness to contract with another on certain specified terms. The offer must be clear, complete and communicated to the other party.

Acceptance is the element that binds the parties. Acceptance should be absolute and unambiguous. Acceptance is not conditional or a counteroffer. Silence is generally not enough to constitute acceptance except in some circumstances related to the sale of goods under the Uniform Commercial Code.

Consideration: Consideration is the inducement. It is the cause, motive, price or impelling influence that convinces a party to enter into an agreement. A promise to pay in the future is adequate consideration.

When all four elements are present an enforceable contract is formed. There are instances where these elements can be proven without a written document; indeed, this may be the case more often than not. It is therefore important to understand the basis of contract formation, enforcement and interpretation in your jurisdiction.

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Membership

Member Spotlight: Sonico, Inc. – Moses Lake, Washington

Sonico launched in 1980 and became an FAA-certificated part 145 authorized repair station in 1985 at Grant County International Airport in Moses Lake, Wash. The company’s services include flight line maintenance and aircraft storage, which are supported by back-shops for component repair, non-destructive testing, machining, and parts fabrication.

Sonico carries a major inventory of aircraft spare parts and operates its own trucks to and from Boeing Seattle Spares Distribution Center each day. The customer base includes some of the world’s largest airlines: United Airlines, Delta Airlines, American Airlines, U S Airways, and Continental Airlines. International carriers that Sonico services include China Air, Malaysia Airlines, and Qantas Airlines. Additionally, the firm serves major original equipment manufacturers such as Boeing. In fact, Sonico has serviced nearly all of the Boeing family of commercial jets for more than 30 years.

Sonico has been an ARSA member since 1995. Vice President and Manager of Sales Jim Perdue serves on ARSA’s board of directors as vice president.

For more information, visit http://sonicoinc.com/index.asp.

Are you an ARSA member who would like to be in the “Member Spotlight?” If so, please contact Matt McKinney at matthew.mckinney@arsa.org .

Have You Seen This Person?

Each month, the hotline spotlights key regulatory, legislative, and business leaders making important contributions to the aviation industry. This month we look at Sen. Kelly Ayotte, R- N.H., the ranking member of the Senate Aviation Operations, Safety, & Security Subcommittee.

Sen. Ayotte currently serves as a Republican senator from New Hampshire. She assumed office in 2010 and is currently in her first term.

In addition to serving as the ranking member of the Commerce, Science, and Transportation Committee’s Aviation Operations, Safety, & Security Subcommittee, Ayotte sits on the Armed Services, Budget, Commerce, Homeland Security & Governmental Affairs, and Aging Committees.

In her current role, she has championed budget reforms, advocated lower taxes, and has been a strong voice on pressing national security issues.

Before her election to the Senate, she was New Hampshire’s first female attorney general.

Ayotte is a native of Nashua, N. H., where she currently resides with her husband and two children. She earned a Bachelor of Arts in political science from Pennsylvania State University and a Juris Doctor from the Villanova University School of Law.

A Member Asked…

Q: Can a part be returned to service without traceability (i.e. an audit trail)?

A: There is no requirement for traceability in the regulations. Unless you have that requirement in your repair station manual, it does not exist. Absent obvious flaws, the identification and inspection for current condition allows for the issuance of a maintenance record under the procedures established in 14 CFR part 43.

Several FAA documents clarify this issue. Legal Interpretation 8/6/2009 specifically references the ability for a repair station to make the identification of the article while Legal Interpretation 7/8/09 states “the regulations do not require ‘back to birth’ records in order to determine the life status of life-limited parts.” Additionally, Advisory Circular AC 20-62E provides further guidance on establishing the eligibility and traceability of aeronautical parts.

Check Out ARSA’s Library of Recorded Webinars and Online Training Classes

ARSA is pleased to announce that recorded online training classes and webinars are now available for member purchase. Check back often as courses will be continually added. Read more at http://arsa.org/training-2/online-training/.

The best form of advertising is word of mouth. Use the Members Getting Members Toolkit to recruit an ARSA member and your company will receive a discounted membership rate for your next membership term. Get more information at http://arsa.org/membership/members-getting-members/

Target Your Message: Advertise Today in ARSA’s Newsletters and Website!

ARSA recently updated its 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 http://arsa.org/advertise/

Exhibit, Sponsor the 2014 Repair Symposium

As the maintenance industry’s top event devoted exclusively to regulatory compliance, the ARSA Symposium attracts a highly qualified professional audience. Use this opportunity to promote your company while showing support for ARSA. Get more information at http://arsa.org/news-media/events/arsa-symposium/arsa-annual-repair-symposium-sponsorship/

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AVMRO

Aviation Maintenance Resource Site Takes Flight

Addressing the need for a single hub of information about the aviation maintenance industry, ARSA recently announced the launch of www.avmro.arsa.org (AVMRO).

AVMRO Industry Roundup

ARSA monitors media coverage on aviation maintenance to spread the word about the valuable role repair stations play in their communities by providing jobs and economic opportunities and in civic engagement. These are some of this month’s top stories highlighting the industry’s contributions.

Delta TechOps Launches Aircraft MRO Library of PDF Resource (Digital Journal)

Scholarships Open for Helo Pilots, Maintenance, More (AOPA)

West Star Aviation Recognized as Silver Partner by Colorado Environmental Leadership Program (D.O.M. Magazine)

AeroTurbine Reaches New Milestone with Its 100th C Check for Frontier Airlines (Fort Mill Times)

WITC Receives Composite Airplane Donation for Real World Training for Composite Technology Program Students (AviationPros)

Landmark Expands at Westchester County Airport (AINOnline)

CU Adds Aviation Program (Cornerstone University Herald)

Independent MROs Investing In Capabilities, Growing Profits (Aviation Week)

Bill Eliminating Aircraft Maintenance Sales Tax Gets Public Hearing (WTAQ)

Texas Votes on Aviation Tax (AOPA)

United Cuts Ribbon on Dulles Maintenance Hangar (Washington Business Journal)

Aircraft Support Company to Expand in Enterprise, Create 200 Helicopter Maintenance Jobs (The Republic)

The Deadline Is Approaching for Helicopter Maintenance Magazine’s Helicopter Mechanic of the Year Award Nominations (D.O.M. Magazine)

AAR Reaches Key Milestones at its Lake Charles, Louisiana Aircraft Maintenance Facility (AAR Corp.)

International News

UK Aviation to Take Off with Less Red Tape

On Nov. 6, the U.K.’s Civil Aviation Authority and government leaders released proposed changes to the regulatory regime impacting the country’s general aviation (GA) sector.

The recommendations are based on responses to the General Aviation Red Tape Challenge, a government-backed study that investigated the bureaucracy choking the British aviation industry. The authority also received a large number of responses from industry stakeholders whose growth is stifled by cumbersome rules and regulations.

This information led to the creation of a GA Unit to develop more effective regulations that streamline transactions in the country’s general aviation sector. The new rules will strip much of the bureaucratic tape plaguing the industry and will seek to promote economic growth and job creation.

International Roundup

To provide more international coverage, ARSA presents a monthly roundup of world events pertaining to the industry.

Global MRO Demand Expected to Boost ST Aerospace’s Profits (Aviation Week)

Werner Aero Services Establishes North Africa and Middle East Office (AviTrader)

IATA: Global Standards Driving Middle East Success (Air Transport News)

Qantas Engineers Offer Plan to Save 300 Maintenance Jobs at Avalon Airport (The Australian)

Lufthansa Technik Joins ALTA (AviTrader)

AEC to Expand Aviation Options (TTR Weekly)

Research Center Aims to Trim Costs of Plane Repairs (South China Morning Post)

GAMECO’s 8-Bay Green Hangar #AvMRO (Aviation Week)

Vector Aerospace Establishes New Engine Turbine Overhaul Facility at Seletar Aerospace Park, Singapore (AviTrader)

ICAO Council Elects New President (International Civil Aviation Organization)

Aviall Opens Expanded Warehouse in Dubai (AINOnline)

Gama Aviation Opens Glasgow Facility (AINOnline)

Double Award Win for AJW Group at MRO India (AviationPros)

Bombardier to Build MRO in China (Aviation Week)

Welcome New Members

• Moog Inc. Aircraft Group, East Aurora, N.Y.
• Aircraft Inspection Services, Grand Rapid, Mich.
• VHL Aircraft, Miami, Fla.
• Cosgrove Aircraft Services, Inc., Moonachie, N.J.
• Vertiflite, Inc., Lawrenceville, Ga.
• Skytronics, Inc., El Segundo, Calif.
• Component Repair Management, Inc., Muskegon, Mich.
• Millennium International, Lee’s Summit, Mo.
• Fire-Tec Aero Systems, LLC, Phoenix, Ariz.
• Hawk Avionics, Calhoun, Ga.

Regulatory Compliance Training

Test your knowledge on §145.61 Ratings

Upcoming Events

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To view this publication in .pdf format, .

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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 http://arsa.org/membership/join/

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.

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ARSA reserves all remaining rights and will use any means necessary to protect its intellectual property.

© 2013 Aeronautical Repair Station Association