Federal Register / Vol. 78, No. 187 / Thursday, September 26, 2013 / Rules and Regulations 59223 

worth, each Bank’s leverage and 

permanent capital ratios, and any other 

capital ratios, specified by FHFA. 

(b) Planning horizon. Each regulated 

entity must use a planning horizon of at 

least nine quarters over which the 

impact of specified scenarios would be 

assessed. 

(c) Additional analytical techniques. 

If FHFA determines that the stress test 

methodologies and practices of a 

regulated entity are deficient, FHFA 

may determine that additional or 

alternative analytical techniques and 

exercises are appropriate for a regulated 

entity to use in identifying, measuring, 

and monitoring risks to the financial 

soundness of the regulated entity, and 

require a regulated entity to implement 

such techniques and exercises in order 

to fulfill the requirements of this part. 

In addition, FHFA will issue guidance 

annually to describe the baseline, 

adverse, and severely adverse scenarios, 

and methodologies to be used in 

conducting the annual stress test. 

(d) Controls and oversight of stress 

testing processes.—(1) The appropriate 

senior management of each regulated 

entity must ensure that the regulated 

entity establishes and maintains a 

system of controls, oversight, and 

documentation, including policies and 

procedures, designed to ensure that the 

stress testing processes used by the 

regulated entity are effective in meeting 

the requirements of this part. These 

policies and procedures must, at a 

minimum, describe the regulated 

entity’s testing practices and 

methodologies, validation and use of 

stress test results, and processes for 

updating the regulated entity’s stress 

testing practices consistent with 

relevant supervisory guidance; 

(2) The board of directors, or a 

designated committee thereof, shall 

review and approve the policies and 

procedures established to comply with 

this part as frequently as economic 

conditions or the condition of the 

regulated entity warrants, but at least 

annually; and 

(3) Senior management of the 

regulated entity and each member of the 

board of directors shall receive a 

summary of the stress test results. 

§ 1238.5 Required report to FHFA and the 

FRB of stress test results and related 

information. 

(a) Report required for stress tests. On 

or before February 5 of each year, the 

Enterprises must report the results of 

the stress tests required under § 1238.3 

to FHFA, and to the FRB, in accordance 

with paragraph (b) of this section; and 

on or before April 30 of each year, the 

Banks must report the results of the 

stress tests required under § 1238.3 to 

FHFA, and to the FRB, in accordance 

with paragraph (b) of this section; 

(b) Content of report for annual stress 

test. Each regulated entity must file a 

report in the manner and form 

established by FHFA. 

(c) Confidential treatment of 

information submitted. Reports 

submitted to FHFA under this part are 

FHFA property and records (as defined 

in 12 CFR part 1202 of this chapter). 

The reports are and include non-public 

information contained in or related to 

examination, operating, or condition 

reports prepared by, on behalf of, or for 

the use of, FHFA in connection with the 

performance of the agency’s 

responsibilities regulating or 

supervising its regulated entities. 

Disclosure of any reports submitted to 

FHFA or the information contained in 

any such report is prohibited unless 

authorized by this part, legal obligation, 

or otherwise by the Director of FHFA. 

§ 1238.6 Post-assessment actions by 

regulated entities. 

Each regulated entity shall take the 

results of the stress test conducted 

under § 1238.3 into account in making 

changes, as appropriate, to the regulated 

entity’s capital structure (including the 

level and composition of capital); its 

exposures, concentrations, and risk 

positions; any plans for recovery and 

resolution; and to improve overall risk 

management. If a regulated entity is 

under FHFA conservatorship, any postassessment actions shall require prior 

FHFA approval. 

§ 1238.7 Publication of results by 

regulated entities. 

(a) Public disclosure of results 

required for stress tests of regulated 

entities. The Enterprises must disclose 

publicly a summary of the stress test 

results for the severely adverse scenario 

not earlier than April 15 and not later 

than April 30 of each year. Each Bank 

must disclose publicly a summary of the 

stress test results for the severely 

adverse scenario not earlier than July 15 

and not later than July 30 of each year. 

The summary may be published on the 

regulated entity’s Web site or in any 

other form that is reasonably accessible 

to the public; 

(b) Information to be disclosed in the 

summary. The information disclosed by 

each regulated entity shall, at a 

minimum, include— 

(1) A description of the types of risks 

being included in the stress test; 

(2) A high-level description of the 

scenario provided by FHFA, including 

key variables (such as GDP, 

unemployment rate, housing prices, 

foreclosure rate, etc.); 

(3) A general description of the 

methodologies employed to estimate 

losses, pre-provision net revenue, 

allowance for loan losses, and changes 

in capital positions over the planning 

horizon; 

(4) A general description of the use of 

the required stress test as one element 

in a regulated entity’s overall capital 

planning and capital adequacy 

assessment. If a regulated entity is under 

FHFA conservatorship, this description 

shall be coordinated with FHFA; 

(5) Aggregate losses, pre-provision net 

revenue, allowance for loan losses, net 

income, net worth, and each Bank’s 

leverage and permanent capital ratios, 

pro forma capital levels and capital 

ratios (including regulatory and any 

other capital ratios specified by FHFA) 

over the planning horizon, under the 

scenario; and 

(6) Such other data fields, in such 

form (e.g., aggregated), as the Director 

may require. 

§ 1238.8 Additional implementing action. 

The Director may, in circumstances 

considered appropriate, require any 

regulated entity not subject to this part 

to conduct stress testing hereunder; and 

from time to time, issue such guidance 

and orders as may be necessary to 

facilitate implementation of this part. 

Dated September 9, 2013. 

Edward J. DeMarco, 

Acting Director, Federal Housing Finance 

Agency. 

[FR Doc. 2013–22586 Filed 9–25–13; 8:45 am] 

BILLING CODE 8070–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2013–0597; Directorate 

Identifier 2013–CE–016–AD; Amendment 

39–17593; AD 2013–19–11] 

RIN 2120–AA64 

Airworthiness Directives; Diamond 

Aircraft Industries GmbH Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for 

Diamond Aircraft Industries GmbH 

Models DA 42, DA 42 NG, and DA 42 

M–NG airplanes. This AD results from 

mandatory continuing airworthiness 

mstockstill on DSK4VPTVN1PROD with RULES

59224 Federal Register / Vol. 78, No. 187 / Thursday, September 26, 2013 / Rules and Regulations 

information (MCAI) issued by an 

aviation authority of another country to 

identify and correct an unsafe condition 

on an aviation product. The MCAI 

describes the unsafe condition as 

insufficient clearance between the rod 

end safety washer and the nose landing 

gear attachment lever causes the rod end 

to bend at each gear retraction sequence. 

We are issuing this AD to require 

actions to address the unsafe condition 

on these products. 

DATES: This AD is effective October 31, 

2013. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in the AD 

as of October 31, 2013. 

ADDRESSES: You may examine the AD 

on the Internet at http://

www.regulations.gov/

#!docketDetail;D=FAA–2013–0597; or in 

person at Document Management 

Facility, U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue SE., Washington, DC 20590. 

For service information identified in 

this AD, contact Diamond Aircraft 

Industries GmbH, N.A. Otto-Str.5, 

A–2700 Wiener Neustadt, Austria; 

telephone: +43 2622 26700; fax: +43 

2622 26780; email: office@diamondair.at; Internet: http://

www.diamondaircraft.com/contact/

technical.php. You may review copies 

of the referenced service information at 

the FAA, Small Airplane Directorate, 

901 Locust, Kansas City, Missouri 

64106. For information on the 

availability of this material at the FAA, 

call (816) 329–4148. 

FOR FURTHER INFORMATION CONTACT: 

Mike Kiesov, Aerospace Engineer, FAA, 

Small Airplane Directorate, 901 Locust, 

Room 301, Kansas City, Missouri 64106; 

telephone: (816) 329–4144; fax: (816) 

329–4090; email: mike.kiesov@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to include an AD that would 

apply to the specified products. That 

NPRM was published in the Federal 

Register on July 8, 2013 (78 FR 40642). 

That NPRM proposed to correct an 

unsafe condition for the specified 

products. The MCAI states: 

An incident was reported where a 

Diamond DA 42 aeroplane experienced an 

un-commanded rudder input and yaw after 

landing gear retraction, followed by restricted 

rudder travel. This situation caused the pilot 

to misinterpret this as an engine power loss. 

The rudder restriction could be removed by 

extending the landing gear and an uneventful 

landing was made. 

Subsequent investigation results showed 

that the rod end of the nose landing gear 

(NLG) actuator, Part Number (P/N) X11– 

0006/2, had broken, causing the actuator to 

block the nearby rudder steering linkage. 

This failure was likely a result of insufficient 

clearance between the rod end safety washer 

and the NLG attachment lever, causing the 

rod end to bend at each gear retraction 

sequence. 

This condition, if not detected and 

corrected, could result in reduced control of 

the aeroplane. 

Prompted by this event, Diamond Aircraft 

Industries (DAI) issued Mandatory Service 

Bulletin (MSB) 42–099/MSB 42NG–035, 

including Work Instruction (WI) WI–MSB– 

42–099/WI–MSB 42NG–035 (published as a 

single document), providing instructions to 

identify and modify the affected NLG 

actuators, which includes installation of a 

new rod end bearing and safety washer. 

For the reasons described above, this AD 

requires an inspection to identify the affected 

NLG actuators, P/N X11–0006/2, and, if an 

affected unit is installed, modification of the 

actuator. 

This AD also prohibits installation of any 

affected P/N X11–0006/2 NLG actuators that 

may be held as spares, unless they are 

modified. 

The MCAI references DAI MSB 42– 

099 and MSB 42NG–035 (co-published 

as one document), dated April 22, 2013, 

as the applicable service information. 

DAI subsequently issued revised 

Mandatory Service Bulletins MSB 42– 

099/1 and MSB 42NG–035/1 (copublished as one document), dated May 

3, 2013, based on a change to the 

applicable P/N of the NLG actuator. 

This revision, MSB 42–099/1 and MSB 

42NG–035/1 (co-published as one 

document), dated May 3, 2013, was 

referenced in the NPRM (78 FR 40642, 

July 8, 2013). You may examine the 

MCAI in the AD docket on the Internet 

at http://www.regulations.gov/

#!documentDetail;D=FAA–2013–0597– 

0002. 

Comments 

We gave the public the opportunity to 

participate in developing this AD. We 

received no comments on the NPRM (78 

FR 40642, July 8, 2013) or on the 

determination of the cost to the public. 

Conclusion 

We reviewed the relevant data and 

determined that air safety and the 

public interest require adopting this AD 

as proposed. We have determined that 

these minor changes: 

• Are consistent with the intent that 

was proposed in the NPRM (78 FR 

40642, July 8, 2013) for correcting the 

unsafe condition; and 

• Do not add any additional burden 

upon the public than was already 

proposed in the NPRM (78 FR 40642, 

July 8, 2013). 

Costs of Compliance 

We estimate that this AD will affect 

170 products of U.S. registry. We also 

estimate that it would take about .5 

work-hour per product to comply with 

the basic requirements of this AD. The 

average labor rate is $85 per work-hour. 

Based on these figures, we estimate 

the cost of the AD on U.S. operators to 

be $7,225, or $42.50 per product. 

In addition, we estimate that any 

necessary follow-on actions would take 

2.5 work-hours and require parts costing 

$235, for a cost of $447.50 per product. 

We have no way of determining the 

number of products that may need these 

actions. 

According to the manufacturer, some 

of the costs of this AD may be covered 

under warranty, thereby reducing the 

cost impact on affected individuals. We 

do not control warranty coverage for 

affected individuals. As a result, we 

have included all costs in our cost 

estimate. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. ‘‘Subtitle VII: 

Aviation Programs,’’ describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in ‘‘Subtitle VII, 

Part A, Subpart III, Section 44701: 

General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We determined that this AD will not 

have federalism implications under 

Executive Order 13132. This AD will 

not have a substantial direct effect on 

the States, on the relationship between 

the national government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

mstockstill on DSK4VPTVN1PROD with RULES

Federal Register / Vol. 78, No. 187 / Thursday, September 26, 2013 / Rules and Regulations 59225 

(2) Is not a ‘‘significant rule’’ under 

the DOT Regulatory Policies and 

Procedures (44 FR 11034, February 26, 

1979), 

(3) Will not affect intrastate aviation 

in Alaska, and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov; or in person at the 

Docket Management Facility between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains the NPRM, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Office 

(telephone (800) 647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new AD: 

2013–19–11 Diamond Aircraft Industries 

GmbH: Amendment 39–17593; Docket 

No. FAA–2013–0597; Directorate 

Identifier 2013–CE–016–AD. 

(a) Effective Date 

This airworthiness directive (AD) becomes 

effective October 31, 2013. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to Diamond Aircraft 

Industries GmbH Models DA 42, DA 42 NG, 

and DA 42 M–NG airplanes, all serial 

numbers, certificated in any category. 

(d) Subject 

Air Transport Association of America 

(ATA) Code 32: Landing Gear. 

(e) Reason 

This AD was prompted by mandatory 

continuing airworthiness information (MCAI) 

originated by an aviation authority of another 

country to identify and correct an unsafe 

condition on an aviation product. The MCAI 

describes the unsafe condition as insufficient 

clearance between the rod end safety washer 

and the nose landing gear (NLG) attachment 

lever causes the rod end to bend at each gear 

retraction sequence. We are issuing this AD 

to detect and correct insufficient clearance 

between the rod end safety washer and the 

NLG attachment lever, which may cause the 

NLG actuator to break and possibly restrict 

rudder control, resulting in loss of control. 

(f) Actions and Compliance 

Unless already done, do the following 

actions as specified in paragraphs (f)(1) and 

(f)(2) of this AD: 

(1) Within 100 hours time-in-service after 

October 31, 2013 (the effective date of this 

AD) or 6 calendar months after October 31, 

2013 (the effective date of this AD), 

whichever occurs first, inspect the NLG 

actuator to identify the part number (P/N) 

and serial number (S/N). If a NLG actuator P/ 

N X11–0006/2 is installed with a S/N 

between 0001 and 0155 (inclusive), modify 

the actuator by replacing the NLG rod end 

bearing and safety washer with new parts. 

Follow the INSTRUCTIONS section of 

Diamond Aircraft Industries GmbH Work 

Instructions WI–MSB 42–099 and WI–MSB 

42NG–035 (co-published as one document), 

Revision 1, dated May 3, 2013, as specified 

in the Accomplishments/Instructions 

paragraph of Diamond Aircraft Industries 

GmbH Mandatory Service Bulletins MSB 42– 

099/1 and MSB 42NG–035/1 (co-published as 

one document), dated May 3, 2013. 

(2) As of October 31, 2013 (the effective 

date of this AD), do not install on any 

airplane an NLG actuator P/N X11–0006/2 

with a S/N between 0001 and 0155 

(inclusive), unless the actuator has been 

modified following the INSTRUCTIONS 

section of Diamond Aircraft Industries GmbH 

Work Instructions WI–MSB 42–099 and WI– 

MSB 42NG–035 (co-published as one 

document), Revision 1, dated May 3, 2013, as 

specified in the Accomplishments/

Instructions paragraph of Diamond Aircraft 

Industries GmbH Mandatory Service 

Bulletins MSB 42–099/1 and MSB 42NG– 

035/1 (co-published as one document), dated 

May 3, 2013. 

(g) Other FAA AD Provisions 

The following provisions also apply to this 

AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, Standards Office, 

FAA, has the authority to approve AMOCs 

for this AD, if requested using the procedures 

found in 14 CFR 39.19. Send information to 

ATTN: Mike Kiesov, Aerospace Engineer, 

FAA, Small Airplane Directorate, 901 Locust, 

Room 301, Kansas City, Missouri 64106; 

telephone: (816) 329–4144; fax: (816) 329– 

4090; email: mike.kiesov@faa.gov. Before 

using any approved AMOC on any airplane 

to which the AMOC applies, notify your 

appropriate principal inspector (PI) in the 

FAA Flight Standards District Office (FSDO), 

or lacking a PI, your local FSDO. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(h) Related Information 

Refer to MCAI European Aviation Safety 

Agency (EASA) AD No.: 2013–0121, dated 

June 4, 2013, for more information. You may 

examine the MCAI in the AD docket on the 

Internet at http://www.regulations.gov/

#!documentDetail;D=FAA–2013–0597–0002. 

(i) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) Diamond Aircraft Industries GmbH 

Work Instruction WI–MSB 42–099, Revision 

1, dated May 3, 2013; and 

(ii) Diamond Aircraft Industries GmbH 

Work Instruction WI–MSB 42NG–035, 

Revision 1, dated May 3, 2013. 

Note 1 to paragraph (i)(2)(i) and (i)(2)(ii): 

Diamond Aircraft Industries GmbH Work 

Instructions WI–MSB 42–099, Revision 1, 

dated May 3, 2013; and WI–MSB 42NG–035, 

Revision 1, dated May 3, 2013, are copublished as one document. 

(iii) Diamond Aircraft Industries GmbH 

Mandatory Service Bulletin MSB 42–099/1, 

dated May 3, 2013; and 

(iv) Diamond Aircraft Industries GmbH 

Mandatory Service Bulletin MSB 42NG–035/ 

1, dated May 3, 2013. 

Note 2 to paragraph (i)(2)(iii) and (i)(2)(iv): 

Diamond Aircraft Industries GmbH 

Mandatory Service Bulletins MSB 42–099/1, 

dated May 3, 2013; and MSB 42NG–035/1, 

dated May 3, 2013, are co-published as one 

document. 

(3) For Diamond Aircraft Industries GmbH 

service information identified in this AD, 

contact Diamond Aircraft Industries GmbH, 

N.A. Otto-Str.5, A–2700 Wiener Neustadt, 

Austria; telephone: +43 2622 26700; fax: +43 

2622 26780; email: office@diamond-air.at; 

Internet: http://www.diamondaircraft.com/

contact/technical.php. 

(4) You may view this service information 

at the FAA, Small Airplane Directorate, 901 

Locust, Kansas City, Missouri 64106. For 

information on the availability of this 

material at the FAA, call (816) 329–4148. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741–6030, or go to: http://

www.archives.gov/federal-register/cfr/ibrlocations.html. 

mstockstill on DSK4VPTVN1PROD with RULES

59226 Federal Register / Vol. 78, No. 187 / Thursday, September 26, 2013 / Rules and Regulations 

1 Flightcrew Member Duty and Rest Requirements 

Final Rule, 77 FR 330 (Jan. 4, 2012). 

2 Flightcrew Member Duty and Rest 

Requirements; Technical Correction, 78 FR 11090 

(Feb. 15, 2013). 

3 Id. 

4See, e.g., 14 CFR 121.503(b) (requiring a 16-hour 

rest period if a pilot has flown for more than eight 

hours in a 24-consecutive-hour period). 

5We note, however, that the regulations do not 

require that the rest period provided under § 117.25 

be kept separate from the rest period provided 

Issued in Kansas City, Missouri, on 

September 16, 2013. 

Pat Mullen, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2013–22979 Filed 9–25–13; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 117 

[Docket No. FAA–2013–0655] 

Clarification of Implementation of 

Regulations and Exemption Policy 

With Regard to Early Implementation 

and Transition 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Clarification and Exemption 

Policy. 

SUMMARY: The FAA has issued a final 

flight, duty, and rest rule that will go 

into effect on January 4, 2014. This 

document provides an interpretation 

clarifying that the new flight, duty, and 

rest rule will apply to a flight duty 

period that begins on or after January 4, 

2014. This document also clarifies FAA 

policy with regard to: exemption 

petitions asking for an early 

implementation date for the 

requirements of part 117; and 

exemption petitions asking for an early 

transition to the requirements of part 

117. 

DATES: Send exemption requests to the 

docket on or before October 15, 2013. 

ADDRESSES: Send exemption requests 

identified by docket number FAA– 

2013–0655 using any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov and follow 

the online instructions for making your 

submission electronically. 

• Mail: Send the exemption petition 

to Docket Operations, M–30; U.S. 

Department of Transportation (DOT), 

1200 New Jersey Avenue SE., Room 

W12–140, West Building Ground Floor, 

Washington, DC 20590–0001. 

• Hand Delivery or Courier: Take the 

exemption petition to Docket 

Operations in Room W12–140 of the 

West Building Ground Floor at 1200 

New Jersey Avenue SE., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

• Fax: Fax the exemption petition to 

Docket Operations at 202–493–2251. 

Docket: Documents received may be 

read at http://www.regulations.gov at 

any time. Follow the online instructions 

for accessing the docket or go to the 

Docket Operations in Room W12–140 of 

the West Building Ground Floor at 1200 

New Jersey Avenue SE., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions, contact Dale E. 

Roberts, Air Transportation Division, 

Flight Standards Service, Federal 

Aviation Administration; email 

dale.e.roberts@faa.gov. For legal 

questions, contact Alex Zektser, Office 

of the Chief Counsel, Regulations 

Division, Federal Aviation 

Administration; email alex.zektser@

faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On January 4, 2012, the FAA 

published a final rule entitled, 

‘‘Flightcrew Member Duty and Rest 

Requirements.’’ 1 In that rule, the FAA 

created a new part, part 117, which 

generally contains new flight, duty, and 

rest regulations for part 121 passenger 

operations and certain part 91 

operations. Part 117 will go into effect 

on January 4, 2014.2

Recently, the FAA received questions 

about the exact time at which part 117 

will apply to a certificate holder’s 

operations on or after January 4, 2014. 

The FAA also received a petition, 

submitted by Airlines for America 

(A4A) and the Regional Airline 

Association (RAA), asking for an 

industry-wide exemption to permit 

certificate-holder implementation of 

part 117 prior to January 4. In addition, 

representatives from American Airlines 

and A4A have met with FAA officials 

and requested that FAA consider 

allowing airlines to switch to part 117 

in a phased approach over a multi-day 

period. 

This document responds to the 

concerns raised in the implementation 

questions, the A4A/RAA exemption 

petition, and the American Airlines/

A4A meeting. First, this document 

provides an interpretation clarifying at 

which point on or after January 4, 2014, 

a certificate holder must apply part 117 

to its operations. Second, this document 

makes several findings with regard to 

exemption petitions from individual 

certificate holders asking for permission 

to implement part 117 prior to January 

4. Third, this document clarifies FAA 

policy with regard to exemption 

petitions from individual certificate 

holders asking for a phased transition to 

the requirements of part 117. Fourth, 

this document provides some guidelines 

to individual certificate holders for 

submitting exemption petitions for early 

implementation and/or early transition 

to part 117. 

Discussion 

A. Applicability of Part 117 on January 

4, 2014 

As stated above, part 117 will become 

effective on January 4, 2014.3 The 

regulatory text of part 117 does not 

contain a grandfather clause that would 

exempt operations that commence prior 

to January 4. Thus, part 117 could be 

interpreted as immediately applying to 

all part 121 passenger operations taking 

place at midnight on January 4. 

However, such an interpretation 

would take a narrow view regarding 

how part 121 passenger operations are 

to transition to the new part 117 

requirements. This is because § 117.25 

requires that a flightcrew member be 

provided with a 10-hour rest period that 

includes an 8-hour sleep opportunity 

immediately prior to beginning a flight 

duty period (FDP) under part 117. If part 

117 was to become immediately 

applicable on midnight January 4, 

flightcrew members conducting part 121 

passenger operations at that time would 

be confronted with the requirements of 

§ 117.25 in the middle of their duty day. 

To avoid this scenario, the FAA 

clarifies the implementation of part 117 

as follows. A flightcrew member who 

begins a duty day under part 121 prior 

to January 4, 2014 is allowed to 

complete that duty day on January 4 

under the flight, duty, and rest rules in 

effect at the time that the duty day 

commenced. However, once the duty 

day ends and the flightcrew member is 

released to begin a rest period, that 

flightcrew member is then subject to the 

provisions of part 117. 

We note that there are some 

provisions in the flight, duty, and rest 

regulations of part 121 that, in certain 

situations, require an extended rest 

period after a duty day ends.4

Accordingly, we emphasize that the rest 

period received by a flightcrew member 

switching from part 121 flight, duty, and 

rest rules to part 117 must comply with 

both § 117.25 and the pertinent flight, 

duty, and rest rules of part 121.5

mstockstill on DSK4VPTVN1PROD with RULES