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[Federal Register Volume 76, Number 34 (Friday, February 18, 2011)]
[Rules and Regulations]
[Pages 9495-9498]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-3653]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2010-0827; Directorate Identifier 2010-CE-029-AD; 
Amendment 39-16552; AD 2010-17-18 R1]
RIN 2120-AA64

Airworthiness Directives; Air Tractor, Inc. Models AT-802 and AT-
802A Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final regulatory flexibility analysis (FRFA).

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SUMMARY: This document incorporates the FRFA for Airworthiness 
Directive (AD) 2010-17-18, which applied to these products: Air 
Tractor, Inc. (Air

[[Page 9496]]

Tractor) Models AT-802 and AT-802A airplanes. We have since revised AD 
2010-17-18, which requires you to repetitively inspect (using the eddy 
current method) the two outboard fastener holes in both of the wing 
main spar lower caps at the center splice joint for cracks and repair 
or replace any cracked spar, and changes the safe life for certain 
serial number (SN) ranges. Our initial analysis indicated that a FRFA 
was necessary for AD 2010-17-18. We issued AD 2010-17-18 without the 
FRFA to immediately address the unsafe condition. This action presents 
the FRFA for AD 2010-17-18, which is required to be published in the 
Federal Register.

DATES: This FRFA is effective February 18, 2011.

ADDRESSES: 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 this AD, the regulatory evaluation, 
any comments received, and other information. The address for the 
Docket Office (phone: 800-647-5527) is 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 FURTHER INFORMATION CONTACT: Andrew McAnaul, Aerospace Engineer, 
ASW-150 (c/o MIDO-43), 10100 Reunion Place, Suite 650, San Antonio, 
Texas 78216; phone: (210) 308-3365; fax: (210) 308-3370; e-mail: 
andrew.mcanaul@faa.gov.

SUPPLEMENTARY INFORMATION: 

Discussion

    On August 11, 2010, we issued AD 2010-17-18, amendment 39-16412 (75 
FR 52255, August 25, 2010), for all Air Tractor Models AT-802 and AT-
802A airplanes. That AD required you to repetitively inspect (using the 
eddy current method) the two outboard fastener holes in both of the 
wing main spar lower caps at the center splice joint for cracks and 
repair or replace any cracked spar, and changes the safe life for 
certain SN ranges. That AD resulted from the FAA's evaluation of 
service information issued by Air Tractor and our determination that we 
needed to add inspections, add modifications, and change the safe life 
for certain SN ranges. We issued that AD to detect and correct cracks 
in the wing main spar lower cap at the center splice joint, which could 
result in failure of the spar cap and lead to wing separation and loss 
of control of the airplane.

Reason for This Action

    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA) 
establishes as a principle of regulatory issuance that agencies shall 
endeavor, consistent with the objective of the rule and of applicable 
statutes, to fit regulatory and informational requirements to the scale 
of the businesses, organizations, and governmental jurisdictions 
subject to regulation.
    To achieve that principle, the RFA requires agencies to solicit and 
consider flexible regulatory proposals and to explain the rationale for 
their actions. The RFA covers a wide range of small entities, including 
small businesses, not-for-profit organizations, and small governmental 
jurisdictions.
    Agencies must perform a review to determine whether a proposed or 
final rule will have a significant economic impact on a substantial 
number of small entities. In accordance with Section 608 of the 
Regulatory Flexibility Act, an agency head may waive or delay 
completion of some or all of the requirements of Section 603 by 
providing a written finding that this final rule is being promulgated 
in response to an emergency that makes compliance or timely compliance 
with the provisions of Section 603 impracticable.
    Our initial analysis indicated that a FRFA was necessary for this 
action. We issued AD 2010-17-18 without the FRFA to immediately address 
the unsafe condition.
    On December 16, 2010, we issued AD 2010-17-18 R1, amendment 39-
16552 (75 FR 82219, December 30, 2010), for certain Air Tractor Models 
AT-802 and AT-802A airplanes. This AD retains the actions of AD 2010-
17-18 and reduces the applicability from all SN beginning with SN-0001 
as required by the previous AD to SN-0001 through SN-0269. This AD was 
prompted by our evaluation of a comment from David Ligon, Air Tractor, 
and our determination that we should reduce the applicability from that 
already required by the previous AD.
    This action presents the FRFA, which is required to be published in 
the Federal Register.

Final Regulatory Flexibility Analysis

    On August 25, 2010, the Federal Aviation Administration (FAA) 
issued Airworthiness Directive (AD 2010-17-18) for Air Tractor Models 
AT-802 and AT-802A airplanes. The FAA determined that the final rule 
was being issued in response to an emergency and that timely compliance 
with the Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA) was 
impracticable. This analysis fulfills the RFA requirements.
    Agencies must perform a review to determine whether a rule will 
have a significant economic impact on a substantial number of small 
entities. If the agency determines that it will, the agency must 
prepare a regulatory flexibility analysis as described in the RFA.
    This final rule will have a significant impact on a substantial 
number of small entities. In accordance with the requirements in the 
RFA, we have performed this FRFA and address the following 
requirements:
    (1) A succinct statement of the need for, and objectives of, the 
rule.
    (2) A summary of the significant issues raised by the public 
comments.
    (3) A description and an estimate of the number of small entities.
    (4) A description of the projected reporting, recordkeeping, and 
other compliance requirements.
    (5) A description of the steps the agency has taken to minimize the 
significant adverse economic impact on small entities.
    (6) An identification, to the extent practicable, of all relevant 
Federal rules which may duplicate, overlap, or conflict with the final 
rule.
    Next, we address each of those individual requirements.
    (1) A succinct statement of the need for, and objectives of, the 
rule.
    This AD will improve the ability of operators flying Models Air 
Tractor 802 and 802A airplanes to discover and to correct cracks in the 
wing main spar lower cap at the center splice joint, which could result 
in the failure of the spar cap and lead to the wing separating from the 
airplane body.
    The FAA is responsible for the safety of flight in the United 
States and for the safety of U.S.-registered aircraft and U.S. 
operations. The FAA is also responsible for issuing rules affecting the 
safety of air commerce and national security. The FAA's authority to 
issue the rules on aviation safety is found in Title 49 of the United 
States Code. Subtitle I, section 106(g) describes the authority of the 
FAA Administrator. Subtitle VII, Aviation Programs, describes in more 
detail the scope of the agency's authority. Section 40101(d)(1) 
provides that the Administrator shall consider in the public interest, 
among other matters, assigning, maintaining, and enhancing safety and 
security as the highest priorities in air commerce. Further, the FAA 
has broad authority under section 44701(a)(5) to prescribe regulations

[[Page 9497]]

governing the practices, methods, and procedures the Administrator 
finds necessary for safety in air commerce and national security. The 
FAA finds this action necessary to prevent a potential hazard to Air 
Tractor Models AT-802 and AT-802A airplanes engaged primarily in 
agricultural and firefighting operations.
    (2) A summary of the significant issues raised by the public 
comments.
    The FAA received one comment on this final rule. Air Tractor 
commented that there should be no additional inspections required for 
their AT-802 and AT-802A airplanes with serial numbers greater than 
0269. We concurred and on December 30, 2010, issued AD 2010-17-18 R1 to 
reduce the applicability of AD 2010-17-18 only to Models AT-802 and AT-
802A serial numbers 0001 through 0269.
    (3) A description and an estimate of the number of small entities.
    There are 52 of these affected Air Tractor airplanes operating in 
the United States. Of these 52 airplanes, 46 are operated by the 
private sector and 6 are operated by the United States State 
Department. Of the 46 operated by the 34 entities in the private 
sector, 25 operate only 1 airplane, 1 operates 2 airplanes, 5 operate 3 
airplanes, and 1 operates 4 airplanes. The Small Business 
Administration classifies operators with less than 1,500 employees as 
small businesses. All of the private entities are small entities with 
fewer than 1,500 employees.
    (4) A description of the projected reporting, recordkeeping, and 
other compliance requirements.
    This final rule changes the existing requirement that any 
inspection finding a crack must be reported to the FAA by requiring the 
operator to use a specific one-page reporting form that has been 
approved by the Office of Management and Budget for that report.
    The final rule requires operators of Air Tractor serial numbers AT-
802-0092 through 0101 and AT-802A-0092 through 0101:
     To perform, using the eddy current method, two inspections 
at 1,700 time-in-service (TIS) hours, at 2,500 TIS hours, and at 3,300 
TIS hours (at a cost of $650 an inspection) of the two outboard 
fastener holes in both of the wing main spar lower caps at the center 
splice joint for cracks and to repair or replace any cracked spar.
     To install at 4,100 TIS hours a center web plate and 
splice blocks (at a cost of $25,500).
    Operators of Air Tractor serial numbers AT-802-0102 through 0178 
and AT-802A-0102 through 0178 to perform using the eddy current method, 
two inspections at 5,500 TIS hours and at 6,600 TIS hours (at a cost of 
$650 an inspection) of the two outboard fastener holes in both of the 
wing main spar lower caps at the center splice joint for cracks and to 
repair or replace any cracked spar.
    We determined that an average AT-802 or AT-802A lasts 40 years 
before it leaves service in the United States. We also determined that 
it flies an average of 450 hours a year. Thus, an AT-802 or AT-802A 
accumulates an average of 18,000 TIS hours before it leaves service in 
the United States. All of the affected airplanes (AT-802 0092-0178 and 
AT-802A 0092-0178) were built between 2000 and 2004.
    The baseline from which the FAA calculated the incremental costs to 
comply with Air Tractor AD 2010-17-18 is compliance with the previous 
Air Tractor AD (AD 2010-13-08) published in the Federal Register on 
June 23, 2010. This earlier AD addressed Air Tractor Airplane Model AT-
802 serial numbers 0001 through 0091 and Model AT-802A serial numbers 
0001 through 0091.
    This AD imposed no new requirements beyond those in AD 2010-13-08 
on Air Tractor Models AT-802 serial numbers 0001 through 0091 and Model 
AT-802A serial numbers 0001 through 0091.
    As previously noted, this AD also addressed Air Tractor Model AT-
802 serial numbers 0179 forward and Model AT-802A serial numbers 0179 
forward. However, the December 30, 2010, AD removed these airplanes 
from compliance with this AD.
    Thus, in comparison with AD 2010-13-08, this AD affects Model AT-
802 serial numbers 0092 through 0178 and Model AT-802A serial numbers 
0092 through 0178 in service in the United States.
    For the purposes of this analysis, there are two different 
categories within each of these two models. Category 1 consists of 
Model AT-802 serial numbers 0092 through 0101 and Model AT-802A serial 
numbers 0092 through 0101, which were manufactured in 2000. Category 2 
consists of Model AT-802 serial numbers 0102 through 0178 and Model AT-
802A serial numbers 0102 through 0178 manufactured between 2000 through 
2004. As seen in Table 1, there are only 6 category 1 airplanes and 40 
category 2 airplanes.

  Table 1--Numbers of Affected AT-802 and AT-802A Airplanes in Private
            Operations by Category and by Year of Manufacture
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                                                   Category
               Manufacture year               ------------------  Total
                                                  1        2
------------------------------------------------------------------------
2000.........................................        6        4       10
2001.........................................  .......       10       10
2002.........................................  .......        6        6
2003.........................................  .......       13       13
2004.........................................  .......        7        7
                                              --------------------------
    Total....................................        6       40       46
------------------------------------------------------------------------

    For category 1 airplanes, this AD requires that the operator must 
perform three eddy current inspections (at 1,700 TIS hours, at 2,500 
TIS hours, and at 3,300 TIS hours), each inspection costing $650. 
However, as all of these airplanes were manufactured in 2000 and, given 
an average of 450 annual TIS hours, they are already, on average, at 
4,050 TIS hours. Nevertheless, the FAA assumes that these six airplanes 
will need one inspection, which will be taken in 2011.
    The AD also reduced their spar cap maximum safe life from 8,163 TIS 
hours to 4,100 TIS hours. However, the operator can extend the spar cap 
maximum safe life from 4,100 hours to 8,000 hours by spending $25,500 
to install a center web plate and splice blocks. The FAA assumes that 
all of these installations will occur in 2012. Finally, although the 
spar cap has to be replaced (at a cost of $81,175) by 8,000 TIS hours, 
this is required under AD 2010-13-08.
    For category 2 airplanes, this AD reduced their spar cap maximum 
safe life from 8,163 TIS hours to 5,500 TIS hours. However, if the 
operator performs two eddy current inspections (at 5,500 TIS hours and 
at 6,600 TIS hours), each inspection costing $650, the spar cap maximum 
safe life can be extended to 8,000 TIS hours. Given an average of 450 
annual TIS hours, these airplanes will have their first inspection (at 
5,500 TIS hours) 12 years after they were manufactured and will have 
their second inspection 3 years later (after having an average of 1,350 
TIS hours during those 3 years). As these airplanes were manufactured 
between late 2000 and 2004, the FAA assumes that the 2000 airplanes 
will have their first inspection in 2012 and the second inspection in 
2015; the 2001 airplanes will have their first inspection in 2013 and 
the second inspection in 2016, etc.
    The FAA uses a 10-year period of analysis (2011-2020) because that 
is when nearly all of the compliance

[[Page 9498]]

expenditures will be made. The FAA also uses a 7 percent discount rate 
to calculate the present values of the costs.
    The AD does not require any additional inspections after the 
replacement spar has been installed because the replacement spars are 
higher quality than the original equipment.
    Thus, the AD will impose two types of compliance costs. The first 
are the costs from the inspections. The second are the costs to the 
category 1 Air Tractor operators that will need to install a center web 
plate and splice blocks at 4,100 TIS hours.
    As seen in Table 2, the cost to comply with the AD requirements for 
inspections during the ten-year period would be $55,900, which, using a 
7 percent discount rate, has a present value of $39,260.

                           Table 2--Total and Present Value Compliance Costs To Comply With the Inspections Required by the AD
                                                                       [2011-2020]
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                                                                              Number of inspections by year
             Manufacture year             ----------------------------------------------------------------------------------------------------   Total
                                             2011      2012      2013      2014      2015      2016      2017      2018      2019      2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
2000 (Cat 1).............................         6         0         0         0         0         0         0         0         0         0          6
2000 (Cat 2).............................         0         4         0         0         4         0         0         0         0         0          8
2001.....................................         0         0        10         0         0        10         0         0         0         0         20
2002.....................................         0         0         0         6         0         0         6         0         0         0         12
2003.....................................         0         0         0         0        13         0         0        13         0         0         26
2004.....................................         0         0         0         0         0         7         0         0         7         0         14
                                          --------------------------------------------------------------------------------------------------------------
    Total................................         6         4        10         6        17        17         6        13         7         0         86
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Total Cost...........................    $3,900    $2,600    $6,500    $3,900   $11,050   $11,050    $3,900    $8,450    $4,550        $0    $55,900
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Present Value........................    $3,645    $2,271    $5,306    $2,975    $7,878    $7,363    $2,429    $4,918    $2,475        $0    $39,260
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Each of the 6 category 1 Air Tractor airplane operators will need 
to spend $25,500 to install the center web plate and splice blocks in 
2012, which has a present value of $22,273 using a 7 percent discount 
rate. The total cost to install this equipment on these 6 airplanes is 
$153,000, which has a present value of $133,638 using a 7 percent 
discount rate.
    Thus, the total cost would be $208,900, which has a present value 
of $172,898 using a 7 percent discount rate.
    However, these costs are unequally distributed across the 34 
operators. The six category 1 Air Tractor airplane operators will need 
to spend $26,150 an airplane while the category 2 Air Tractor airplane 
operators will need to spend between $650 and $1,300 an airplane.
    (5) A description of the steps the agency has taken to minimize the 
significant economic impact of the final rule on small entities.
    The FAA is responsible for the safety of U.S.-registered aircraft 
and U.S. operators. The FAA has not identified any significant 
alternatives to this final rule that accomplish the stated objectives 
of applicable statutes, and which minimize any significant economic 
impact of the final rule SFAR on small entities.
    (6) An identification, to the extent practicable, of all relevant 
Federal rules which may duplicate, overlap, or conflict with the final 
rule.
    The FAA knows of no other Federal rules which duplicate, overlap, 
or conflict with the final rule.

Determination of Significant Impact

    As discussed in the compliance cost section, all of these operators 
are small businesses. Further, nearly all of them are privately held 
businesses that do not file reports that the FAA can access to 
determine annual revenues. However, the FAA can determine that the 
average value of an Air Tractor Model AT-800A serial number 0091-0101 
is about $650,000. This rule requires the 6 operators of these 
airplanes to spend about 4 percent ($25,500) of the value of the 
airplane on a repair. The FAA believes that this magnitude of an 
expenditure could place these six operators in some financial 
difficulty.
    Therefore, this final rule will have a significant economic impact 
on a substantial number of small entities.

    Issued in Kansas City, Missouri, on February 11, 2011.
John R. Colomy,
Acting Manager, Small Airplane Directorate, Aircraft Certification 
Service.
[FR Doc. 2011-3653 Filed 2-17-11; 8:45 am]
BILLING CODE 4910-13-P
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