Though the FAA excluded repair stations from its expansion of SMS requirements in part 5, EASA has been clear a mandate for U.S. part 145 air agencies holding European approval under the bilateral agreement will be added to the two jurisdictions’ Maintenance Annex Guidance. Those awaiting the official change to the MAG can pencil in an expected SMS compliance deadline of December 31, 2025: By that date all affected repair stations must have verified their compliance with the FAA’s voluntary program to continue their European approval.
On June 11, the FAA published an InFO advising certificate holders of the Dec. 31, 2025 deadline. The InFO describes the FAA’s recent amendment to 14 CFR part 5 as introducing a “significant difference” between the American and European aviation safety regulatory systems. To address the difference, the FAA and EASA have established a new special condition under their bilateral agreement:
“This special condition requires FAA certificated repair stations located in the U.S. seeking initial approval or renewal of EASA Part-145 certification to establish, implement, and maintain an SMS,” the InFO said. “Participation with the FAA Voluntary SMS Program is deemed acceptable as a means to comply with the new requirement. The deadline for implementation of this requirement is December 31, 2025.”
Despite the InFO’s declaration, the June 20 release of change 9 to the FAA-EASA Maintenance Annex Guidance does not include a new special condition regarding SMS. There is no regulatory requirement for U.S. repair stations to have an SMS until that special condition is released, which may occur in MAG Change 10 – ARSA has heard chatter it is not far behind. None-the-less, with 18 months until the end of 2025, the association encourages members with EASA approvals to prepare for SMS implementation. As with other announcements of European arrivals (remembering Paul Revere’s April 1775 ride), hearing “the SMS is coming!” should not surprise the industry.
ARSA will support impacted repair stations during this transition period by:
(1) Working with regulators to push for smooth installation of SMS requirements into current quality systems.
(2) Continuing the member benefit facilitating access to SMS tools managed by the Aircraft Electronics Association.
(3) Updating the association’s Model RSQM Compilation to include SMS requirements.
(4) Handling confusion and communicating to provide clear information regarding compliance requirements and implementation dates.
April 26, 2024
On April 26, the FAA published to the Federal Register its new rule expanding Safety Management Systems (SMS) requirements to all operators of commuter and on-demand service and commercial air tours as well as type certificate holders and licensees. The agency has not yet placed SMS requirements directly on part 145 repair stations.
“In 2015, the FAA promulgated 14 CFR part 5 which required part 121 operators to develop and implement SMS and set out the basic requirements for those systems,” the agency said in the rulemaking. “The next step in improving aviation safety is to extend the SMS requirements in part 5 to additional organizations that play a critical role in the design, manufacturing, and operation of aircraft. These aviation organizations are in the best position to prevent future incidents and accidents because they are closest to the hazards, and they know the most about their operations and products.”
In January 2023, the FAA’s notice of proposed rulemaking had asked the public for comment on potential expansion of SMS applicability to include repair stations. ARSA and the Aircraft Electronics Association argued such expansion was unnecessary, since part 145 includes a “robust quality management system” as required by §§ 145.209 and 211. The associations explained the agency could find its oversight of maintenance providers to be SMS compliant based on these existing rules and the current use of the Safety Assurance System for assessment of risk and change management.
“The comments received from the NPRM offer a diverse set of viewpoints across the aviation sector, all of which must be taken into account should the FAA consider a future rulemaking to require part 145 repair stations to develop and maintain an SMS,” the rulemaking said. “The FAA continues to collect and evaluate data to determine whether the benefits would justify the costs and will continue to pursue and promote part 145 repair station involvement in the FAA’s SMS Voluntary Program.”
To review the final rule, click here.
To see the comments ARSA and AEA submitted to the NPRM, click here (and review the content below).
For information about the SMS program resources available to ARSA members, visit arsa.org/sms-program.
April 23, 2023
In joint comments submitted to the FAA on April 11, ARSA and the Aircraft Electronics Association (AEA) opposed the potential expansion of the agency’s Safety Management System (SMS) rules contained in 14 CFR part 5 to include repair stations certificated under part 145.
The comments were submitted in response to the FAA’s Jan. 11 proposal to update and expand the requirements for SMS and require certain certificate holders and commercial air tour operators to develop and implement an SMS program. While certificated repair stations were not included in the proposed SMS rule, the FAA requested comments and information regarding a future rulemaking project to expand the applicability of 14 CFR part 5 to include repair stations.
As part of the rulemaking process, the FAA must assess and substantiate the economic burden by establishing the requirement would increase safety. The agency was unable to do so when attempting to apply quality assurance to U.S.-based repair stations in its 1999 rulemaking. Therefore, it is unlikely the FAA could validate an increase in safety to justify the burden of implementing and maintaining an SMS, particularly on small businesses.
In support of this effort, ARSA conducted a survey of its members the week of April 3. Ninety-four percent of respondents opposed a future rulemaking to expand the applicability of part 5 to repair stations, 97 percent opposed applying part 5 to all repair stations, and 96 percent opposed limiting the applicability to a certain subset of repair stations.
“Part 145 already has a robust quality management system as required by 14 CFR §§ 145.209 and 145.211. This is not to assume that the quality management system is perfect and that it could not be enhanced with continuous improvement however, the FAA is already overseeing repair station certification and operations through its Safety Assurance System with many of the 3 elements contained within SMS such as risk assessment and management, change management, and promotion and outreach,” ARSA and AEA said. “The FAA should declare 14 CFR part 145 combined with the Agency safety assurance oversight of repair station to be SMS complaint.”
To read the ARSA-AEA joint comments, click here.
For more on AEA’s SMS advocacy, click here.
January 11, 2023
On Jan. 11, the FAA issued a long-awaited notice of proposed rulemaking (NPRM) that would update and expand the requirements for safety management systems. The proposal’s applicability does not include 14 CFR part 145.
NPRM: Safety Management Systems
Published 01/11/2023
Docket #: FAA-2021-0419
Comments due: 03/13/2023FAA Summary: The FAA proposes to update and expand the requirements for safety management systems (SMS) and require certain certificate holders and commercial air tour operators to develop and implement an SMS. This proposed rule would extend the requirement for an SMS to all certificate holders operating under the rules for commuter and on-demand operations, commercial air tour operators, production certificate (PC) holders that are holders or licensees of a type certificate (TC) for the same product, and holders of a TC who license out that TC for production. The FAA also proposes this rule in part to address a Congressional mandate as well as recommendations from the National Transportation Safety Board (NTSB) and two Aviation Rulemaking Committees (ARCs). Additionally, the proposed rule would more closely align the United States with Annex 19 to the Convention on International Civil Aviation. This proposed rule is intended to improve aviation safety by requiring organizations to implement a proactive approach to managing safety.
Stay tuned to ARSA for more updates on the regulatory process for this rule. Register for the 2023 Annual Conference to hear from the FAA and EASA about each regulator’s efforts related to SMS and then participate in a breakout session covering programs for small businesses.
December 19, 2022
In November, the European Union Aviation Safety Agency (EASA) made public a series of resources for EASA Part 145 maintenance organizations implementing new safety management systems (SMS) requirements. The new requirements became effective on Dec. 2 and apply to holders of EASA Part 145 approvals not subject to a bilateral agreement. Maintenance organizations in the United States, Canada and Brazil will continue to comply with the current bilateral aviation safety agreements and their corresponding maintenance implementation or guidance procedures.
According to a Nov. 11 letter from the agency, approval holders should refer to its documentation index for updated guidance material. The new requirements allow for a two year transition phase, giving approval holders until Dec. 2, 2024 to fully comply with European Commission Implementing Regulation (EU) 2021/1963. During the SMS transition phase, compliance verification will be limited to the “Classic Part-145 requirements” of the new regulation.
In a separate letter, EASA announced the application of a “transition finding” to all approval holders. The letter explained the “finding” allowed each organization “to maintain its approval valid [sic] even if not in compliance with the novelties introduced by the Part-145 regulation, providing the necessary time to concentrate on the implementation of the SMS change without undue pressure.”
To support approval holders during the transition, EASA has published SMS assessment guidance and a matrix for transition phase regulatory compliance. The matrix covers every section of EASA Part 145, identifying “novelties” for compliance by late 2024.
To access EASA’s information page for foreign Part-145 approval holders (those located outside the EU and not subject to a bilateral), click here.
ARSA members seeking full analysis of EASA’s SMS requirements for non-bilateral foreign repair stations should refer to the September 2022 edition of the hotline.
July 14, 2022
The European Union Aviation Safety Agency (EASA) has published new resources to facilitate compliance with its recently adopted safety management systems (SMS) requirements for EASA Part 145 maintenance organizations. The new EU SMS requirements are not applicable to EASA approved repair stations in countries with bilaterals, such as the United States.
The FAA currently requires SMS for operators, airports, air traffic organizations and commercial space. Some U.S. repair stations are voluntarily adopting SMS to meet customer demands and/or in anticipation of future requirements. Runway Girl Network recently reported that the FAA’s upcoming SMS rulemaking for aircraft and engine manufacturers will seek comment on whether non-scheduled part 135 operators, part 91 tour companies and repair stations should also be required to adopt SMS. Since SMS is on the horizon for the entire industry, understanding EASA’s SMS requirements for its approved maintenance organizations will facilitate future compliance.
Pursuant to European Commission implementing Regulation (EU) 2021/196311, effective Dec. 2, 2022, EASA Part 145 organizations must implement SMS within a two-year transition period (through Dec. 2, 2024). The system must include, among other things, hazard identification, risk management and safety assurance processes, and the designation of a safety manager. To support SMS processes, the regulation also made changes to existing requirements related to an organization’s safety policy, internal occurrence reporting, competence of staff, and compliance monitoring.
EASA’s states in its new “Guide for Compliance with Part-145 As Amended by EU Regulation 2021/1963” that it recognizes “SMS is a concept that may need to mature over multiple years.” As such, the agency does not anticipate maintenance organizations will have “a fully operational and effective SMS in the first oversight cycle or at the end of the transition period.” It is the agency’s position that to retain its Part-145 certificate, an organization must show its system and procedures are ‘present’ and ‘suitable.’
The guide illustrates a typical process that a maintenance organization and its competent authority may follow to transition to the new requirements, describes a step-by-step approach for the transition, and provides guidance for competent authorities to use during the process. Appendix I explains the technical requirements EASA Part-145 organizations must meet; Appendix II applies to competent authorities.
EASA also issued a separate FAQ explaining references to “use of the organisation’s safety risk management process” in the requirement to assess non-mandatory modifications/inspections pursuant to CAMO.A.315(b)(4).
September 9, 2019
ARSA filed comments on Sept. 6 in response to European Aviation Safety Agency (EASA) Notice of Proposed Amendment (NPA) 2019-05, Embodiment of safety management system (SMS) requirements into Parts 145 and 21 of EASA’s rules.
The proposed changes would initially apply only to approved maintenance organizations within the European Union and to those outside the EU regulated directly by EASA (i.e., not to facilities that hold certificates pursuant to a bilateral aviation safety agreement). However, it’s likely SMS will become a “special condition” required by EASA for AMOs holding certificates through a bilateral. It’s therefore important for repair stations serving European customers to be aware of the potential rule changes, regardless of where located.
ARSA told EASA that the association shares the agency’s objective of improving aviation safety and generally supports encouraging AMOs to adopt SMS policies. The association also commended EASA for recognizing the complexity associated with managing compliance within companies with multiple certificates and that a one-size-fits all solution is inappropriate for a diverse industry made up of companies with various sizes and specialties.
However, ARSA is concerned that certain provisions of the NPA run contrary to the philosophy underlying SMS, suggest a lack of confidence in the systems required by the new rules, would create new and unnecessary burdens for certificate holders and regulators and would potentially undermine safety. For example, the proposed regulation would require certificate holders to obtain prior approval by the competent authority for many types of organization changes, including personnel involved in safety management.
ARSA believes a fundamental concept underlying SMS is that safety depends on the organization and its processes, not individuals. “Requiring the regulator to approve personnel changes made in accordance with the company’s SMS defeats the purpose of the system and the proposed regulatory changes,” ARSA said.
“It is the company’s responsibility, not that of regulators, to manage operations and make decisions about who is best suited to ensure compliance, safety and the company’s success. If the company has properly designed and implemented its SMS, the new employees appointed to key positions should be presumed qualified and trained.”
ARSA said the new approval requirements “would give regulators unprecedented authority over internal personnel changes, diverting competent authority resources and undermining the ability of certificate holders to manage their businesses on a daily basis. Finally, by requiring the regulator’s approval of personnel changes, the new rule will undermine safety by thwarting a company’s ability to remove a team member whose acts or omissions run contrary to the company’s SMS.”
ARSA’s comments also expressed other concerns, including that expanded occurrence reporting requirements are too broad leading to over-reporting and clogging the regulators’ reporting system and that the rules would not afford sufficient due process to AMOs facing certificate actions.
If your company submitted comments to EASA on SMS, please send a copy to christian.klein@arsa.org.
To read ARSA’s full comments, click here.
To view a PDF file of the comments as submitted through EASA’s Comment Response Tool, click here.
To see the results of a “quick question” ARSA asked about SMS, click here.
January 7, 2015
On Jan. 7, the FAA issued a final rule that requires most U.S. commercial airlines to have Safety Management Systems (SMS) in place by 2018. The rule builds on programs many airlines already use to identify and reduce aviation risk.
The rule requires each certificate holder operating under 14 CFR part 121 to develop and implement SMS within three years and to submit an implementation plan within six months. While the 121 requirement is not expanded to contractors or subcontractors, or entities not directly regulated by the FAA, repair stations are well aware of the “trickle-down effect” when air carriers implement and interface their SMS with contract maintenance vendors. Indeed, in the preamble to the rule, the FAA acknowledges that some air carriers may opt to extend their SMS to part 145 repair station activities. That said, the rule does not require the air carrier to require SMSs on the part of contractors, code-share partners, or other business affiliates
As stated in the NPRM, the FAA developed the framework of the rule as a means of harmonizing with ICAO standards, while establishing a uniform standard that could be extended to apply to 14 CFR part 135 (part 135) certificate holders, part 145 repair stations, and design and manufacturing entities. The uniform standard is necessary because some of these regulated entities may hold more than one FAA certificate and may need or want to create one SMS to encompass all of their aviation-related activities.
The final rule will be effective within 60 days once it’s published in the Federal Register. More information is available on FAA.gov and the FAA’s SMS Office website.
