AFS-16-9015

Exemption No. 16855

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

WASHINGTON, DC 20591

 

In the matter of the petition of 

 

AIRLINE CONTAINER Regulatory Docket No. FAA-2016-4290

LEASING, INC.

 

for an exemption from § 145.103(b) 

of Title 14, Code of 

Federal Regulations 

 

GRANT OF EXEMPTION

By letter dated February 3, 2016, Mr. John Stewart, Vice President, Airline Container 

Leasing, Inc. (ACL Airshop), 3800 Hampton Rd., Oceanside NY 11572, petitioned the 

Federal Aviation Administration (FAA) on behalf of ACL Airshop for an exemption from 

§ 145.103(b) of Title 14, Code of Federal Regulations (14 CFR), to the extent necessary to 

allow ACL Airshop to perform maintenance on Unit Loading Devices (ULDs) without 

meeting the housing requirements of § 145.103(b).

The petitioner requests relief from the following regulation:

Section 145.103(b) prescribes, in pertinent part, that, a certificated repair station with an 

airframe rating must provide suitable permanent housing to enclose the largest type and model 

of aircraft listed on its operations specifications.

The petitioner supports its request with the following information:

The petitioner submitted an FAA Form 7711-2 (Application for Certificate of Waiver or 

Authorization) to apply for an exemption from the housing rule of § 145.103(b). The

petitioner provided the following information.

The petitioner noted that airframe ratings are issued for a particular make and model aircraft, 

not for a part of an airframe. The petitioner also noted that limited ratings are issued for the 
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performance of maintenance on particular makes and models of airframes, power plants, 

propellers, radios, instruments, accessories. To perform maintenance on ULDs, a repair 

station needs an airframe rating for a particular make and model aircraft.

Similarly, articles of all cargo-configured aircraft are considered part of the airframe and 

require an appropriate airframe rating. These include:

• Unit loading devices (ULD),

• Cargo pallets or containers,

• Bulkheads,

• Ball mats,

• Floor roller tracks, and

• Floor or side locks.

The petitioner stated that grouping the first two items on this list with permanently affixed 

components of the aircraft's loading system seems misguided as they are really temporary 

accessories. The petitioner pointed out that throughout the world and for greater than 30 years 

an industry of FAA part 145 repair stations that solely repair ULD's (containers, pallets, & 

nets) has been operating with limited air frame certification and without meeting the housing

requirement of § 145.103(b). Based on this, the petitioner is unclear on why it is now an 

issue. The petitioner stated that ACL Airshop currently operates three domestic repair 

stations that perform maintenance on UDLs and is seeking FAA certification for a similarlyrated repair station that would be located outside the United States, in Bogota, Columbia. The 

petitioner referenced an FAA legal opinion that concluded that § 145.103(b) applied to both 

class airframe-rated and limited airframe-rated repair stations.1 Based on the legal opinion, 

ACL Airshop’s application for certification is on hold pending either the company’s 

providing the referenced housing at the proposed location, or a grant of exemption from the 

requirement. 

The FAA has determined that good cause exists for waiving the requirement for Federal 

Register publication because the exemption, if granted, would not set a precedent, and any 

delay in acting on this petition would be detrimental to ACL Airshop.

The FAA's analysis is as follows:

The FAA understands that ACL Airshop holds limited airframe ratings to perform 

maintenance on ULDs and their component parts. ACL Airshop has been operating limited 

airframe-rated repair stations since June 10, 1983. At the time of its original air agency 

certifications, ACL Airshop provided evidence of its capability to maintain these units in an 

environment conducive to the work it performs. As such, ACL Airshop has had the privilege 

 

1

 FAA legal interpretation to Finazzo (March 4, 2015) concluded that 14 CFR 145.103(b) requires a repair 

station with a limited airframe rating to have housing large enough to enclose the largest aircraft listed on its 

operations specifications. The opinion stated that “nothing in the regulatory history or plain language of the 

regulation supports a conclusion that the airframe rating of section § 145.103(b) applies only to class ratings and 

excludes limited airframe ratings.”
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of performing maintenance on ULDs and its component parts without providing housing to 

enclose the largest type and model of aircraft listed on its operations specifications.

As discussed above, on March 4 2015, the FAA’s Assistant Chief Counsel for Regulations 

issued an interpretation regarding the requirement for a repair station with a limited airframe 

rating to provide housing in accordance with § 145.103(b). This interpretation of 

§ 145.103(b) highlights the issue of ACL Airshop’s technical non-compliance with the rule 

because ACL Airshop does not currently provide housing to enclose the largest aircraft listed 

on its operations specifications. 

The FAA finds that the arguments set forth by the petitioner are valid and that a denial of an 

exemption from § 145.103(b) would negatively affect ACL Airshop’s business. ACL

Airshop does provide suitable housing and facilities as identified in §§ 145.101 and 

145.103(a) for the maintenance it performs; therefore, it meets the intent of the relevant 

suitable housing and facilities requirements. Maintenance on ULDs, which are removed from 

the aircraft, does not require the entire aircraft to be enclosed in housing. Housing the aircraft 

while work on the ULDs is performed in separate suitable facilities would not enhance safety. 

To require ACL Airshop to provide housing large enough to enclose the largest type and 

model aircraft listed on its operations specifications would not be in the best interest of ACL

Airshop or the public. ACL Airshop provides a much needed service to the aviation 

community by maintaining ULDs and their component parts. The requirement to obtain 

housing as set forth in § 145.103(b) could force ACL Airshop to close its business, which 

would negatively affect the aviation industry.

The FAA believes the grant of this exemption would provide for a level of safety equivalent 

to that provided by the regulation, and would be in the public interest.

The FAA’s Decision

In consideration of the foregoing, I find that a grant of exemption is in the public interest. 

Therefore, pursuant to the authority contained in 49 U.S.C. §§ 106(f), 40113, and 44701, 

delegated to me by the Administrator, Airline Container Leasing, Inc. (ACL Airshop) is 

granted an exemption from 14 CFR § 145.103(b) to the extent necessary to allow ACL

Airshop to perform maintenance on Unit Loading Devices (ULDs) and their component parts 

without meeting the housing requirements of § 145.103(b).

This exemption terminates on May 30, 2018, unless sooner superseded or rescinded.

Issued in Washington, DC, on June 9, 2016.

/s/

John Barbagallo

Deputy Director, Flight Standards Service