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 EXEMPTIO N

By letter dated February 3, 2016

, Mr. John Stewart , Vice President

, A irline C ontainer

L easing, Inc. (ACL Airshop )

, 3800 Hampton Rd

. , Oceanside NY 11572, petitioned the

Federal Aviation Administ ration (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 Device s (ULD s ) without meeting the housing requirements of § 145.103 (b)

.

Th e 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 Waiv er 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 a irframe rati ngs are issued for a particular make and model aircraft, not for a part of an airframe. The petitioner also noted that l imited r atings are issued for the2

performance of maintenance on particular makes and models of airframes, power plants, propellers, rad ios, instruments, accessories. To perform maintenance on UL D s
, a repair

station need s an airframe rating f or 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 g rouping t he 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 o f FAA part 145 r epair s tations that solely repair ULD's (containers, pallet s , & nets) ha s been operating with l imited a ir f rame c ertification and without meeting the housing requirement of § 145.103(b) . Based on this, the petitioner is unclear on why it i s now an issue. The petitioner stated that ACL Airshop currently operates three domestic repair stations that perform maintenance on UDLs and i s seeking FAA certification for a similarly

rated repair station that would be located outside the United S tates , in Bog o ta, Columbia. T he 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 B ased on the legal opinion, ACL Airshop’s application for certificati on is on hold pending either the company’s provi ding 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 det rimental to ACL Airshop

.

The FAA's analysis is as follows:

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

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

airframe

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

certification s , ACL Airshop provided evidence of its capability t o maintain these units in an

environment conducive to the work it perform s

. 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 regula tory 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

. ”3

of performing maintenance on ULDs and its component parts without providing housing to enclose the largest type and model of aircraft li sted on its operations specifications.

As discussed above, o n 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

145.10 3 (a) for the maint enance it perform s ; therefore, it meet s the intent of the relevant

suitable housing and facilities requirements. Maintenance on ULDs, which are removed fr om 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 t o 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 aviati on community by maintaining ULD s and their compon ent parts. The requirement to obtain housing as set forth in § 145.103(b) c ould 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, A irline C ontainer L easing, I nc

. (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 Devic e s (ULD s ) 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.

Is sued in Washington, DC, on June 9, 2016

.

/s/

John Barbagallo Deputy Director, Flight Standards Service