Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Rules and Regulations 11537 

1For brevity throughout this preamble, we will 

refer to these aircraft as ‘‘10 or more seats’’ aircraft. 2For brevity throughout this preamble, we will 

refer to all of these classes of certificate holders as 

‘‘air carriers.’’ 

Federal Aviation Administration, 600 

Independence Avenue SW., 

Washington, DC 20591; telephone (202) 

267–0629; email Robert.nichols@

faa.gov. 

For legal questions concerning this 

action, contact Lorelei Peter, Office of 

the Chief Counsel, AGC–200, Federal 

Aviation Administration, 800 

Independence Avenue SW., 

Washington, DC 20591; telephone (202) 

267–3073; email Lorelei.Peter@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On February 9, 2015, the FAA 

published a final rule technical 

amendment entitled, ‘‘Automatic 

Dependent Surveillance-Broadcast 

(ADS–B) Out Performance Requirements 

To Support Air Traffic Control (ATC) 

Service; Technical Amendment.’’ In that 

final rule, which became effective 

February 9, 2015, the FAA amended 14 

CFR part 91. The FAA inadvertently 

listed the incorrect Amendment Number 

for part 91 in the header information of 

the final rule as 91–334. The correct 

amendment number is 91–336. 

Correction 

In the final rule, FR Doc. 2015–02579, 

published on February 9, 2015, at 80 FR 

6899 make the following correction: 

1. On page 6899 in the heading of the 

final rule, revise ‘‘Amdt. No. 91–334’’ to 

read ‘‘91–336’’. 

Issued in Washington, DC, under the 

authority provided by 49 U.S.C. 106(f), on 

February 26, 2015. 

Brenda D. Courtney, 

Acting Director, Office of Rulemaking. 

[FR Doc. 2015–04476 Filed 3–3–15; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Parts 121 and 135 

[Docket No.: FAA–2011–1136; Amdt. Nos. 

121–371 and 135–132] 

RIN 2120–AJ33 

Air Carrier Contract Maintenance 

Requirements 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The Federal Aviation 

Administration (FAA) amends the 

maintenance regulations for domestic, 

flag, and supplemental operations, and 

for commuter and on-demand 

operations for aircraft type certificated 

with a passenger seating configuration 

of 10 seats or more (excluding any pilot 

seat). The new rules require affected air 

carriers and operators to develop 

policies, procedures, methods, and 

instructions for performing contract 

maintenance that are acceptable to the 

FAA, and to include them in their 

maintenance manuals. The rules also 

require the air carriers and operators to 

provide a list to the FAA of all persons 

with whom they contract their 

maintenance. These changes are needed 

because contract maintenance has 

increased to over 70 percent of all air 

carrier maintenance, and numerous 

investigations have shown deficiencies 

in maintenance performed by contract 

maintenance providers. These rules will 

help ensure consistency between 

contract and in-house air carrier 

maintenance and enhance the oversight 

capabilities of both the air carriers and 

the FAA. 

DATES: Effective May 4, 2015 except for 

§§ 121.368 and 135.426 which contain 

information collection requirements that 

have not been approved by the Office of 

Management and Budget (OMB). The 

FAA will publish a document in the 

Federal Register announcing the 

effective date. 

ADDRESSES: For information on where to 

obtain copies of rulemaking documents 

and other information related to this 

final rule, see ‘‘How To Obtain 

Additional Information’’ in the 

SUPPLEMENTARY INFORMATION section of 

this document. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions concerning this 

action, contact Wende T. DiMuro, AFS– 

330, Federal Aviation Administration, 

800 Independence Avenue SW., 

Washington, DC 20591; telephone (202) 

267–1685; email wende.t.dimuro@

faa.gov. 

For legal questions concerning this 

action, contact Edmund Averman, 

AGC–200, Federal Aviation 

Administration, 800 Independence 

Avenue SW., Washington, DC 20591; 

telephone (202) 267–3147, email 

ed.averman@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking 

The FAA’s authority to issue rules on 

aviation safety is found in Title 49 of the 

United States Code. 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. 

This rulemaking is promulgated 

under the authority described in 

Subtitle VII, Part A, Subpart III, Section 

447, Section 44701(a)(2)(A) and (B) and 

(5). Under that section, the FAA is 

charged with prescribing regulations 

and minimum standards in the interest 

of safety for inspecting, servicing, and 

overhauling aircraft, aircraft engines, 

propellers, and appliances, and 

equipment and facilities for, and the 

timing of and manner of, the inspecting, 

servicing and overhauling the FAA 

finds necessary for safety and 

commerce. This regulation is within the 

scope of that authority. 

In addition, Public Law 112–95 

(February 14, 2012), the ‘‘FAA 

Modernization and Reform Act of 2012’’ 

(the Act), in section 319 (Maintenance 

providers), requires the FAA to issue 

regulations ‘‘requiring that covered 

work on an aircraft used to provide air 

transportation under part 121 . . ., be 

performed by persons in accordance 

with subsection (b).’’ Subsection (b), in 

addition to listing persons authorized 

under existing regulations, referenced 

additional terms and conditions in 

subsection (c) that would apply to 

persons who provide contract 

maintenance workers, services, or 

maintenance functions to a part 121 air 

carrier for covered work. The Act 

mandates that the contracting part 121 

air carrier be directly in charge of 

covered work, as defined by the Act, 

being performed for the carrier under 

contract, and that the work be done 

under the supervision and control of the 

air carrier. These statutory requirements 

are addressed in this rule. 

I. Overview of Final Rule 

The FAA is amending Title 14, Code 

of Federal Regulations (14 CFR) 

§§ 121.368, 121.369, 135.426, and 

135.427. These amendments apply to 

certificate holders who conduct 

domestic, flag, or supplemental 

operations under part 121, and to 

certificate holders who conduct 

commuter operations or on-demand 

operations with aircraft type certificated 

for a passenger seating configuration, 

excluding any pilot seat, of ten seats or 

more 1 under part 135, if the carriers 

contract any of their maintenance, 

preventive maintenance, or alteration 

work to an outside source.2 As required 

by the Act, this final rule addresses the 

performance of ‘‘covered work.’’ It 

codifies the statutory definition of the 

term, and includes requirements for the 

performance of that work, to include 

that the certificate holder must be 

directly in charge of it; the covered work 

must be carried out in accordance with 


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11538 Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Rules and Regulations 

the certificate holder’s manual; and that 

work must be carried out under the 

supervision and control of the certificate 

holder. 

While the Act addresses only 

contracted work on aircraft operated by 

part 121 certificate holders, the FAA is 

also applying the same requirements to 

part 135 certificate holders who operate 

the larger aircraft, those with 10 or more 

seats. As stated elsewhere in this 

preamble, this rulemaking began before 

passage of the Act in 2012, and the FAA 

had proposed amendments to both parts 

121 and 135. After the Act’s passage, the 

FAA accommodated the new 

requirements. In addition to including 

the requirements mandated by the Act, 

this final rule requires that each 

certificate holder who contracts for such 

work must first have developed policies, 

procedures, methods, and instructions 

for the accomplishment of that work, 

and that if they are followed, the work 

will be performed in accordance with 

the certificate holder’s maintenance 

program and maintenance manual. Each 

certificate holder will be required to 

ensure that its system for the continuing 

analysis and surveillance of that work 

contains procedures for its oversight. 

All of these policies, procedures, 

methods, and instructions must be 

acceptable to the FAA and be included 

in the certificate holder’s maintenance 

manual. In addition, each certificate 

holder who contracts any of its 

maintenance, preventive maintenance, 

or alteration work to an outside source 

will be required to provide to its local 

FAA Certificate Holding District Office 

a list that includes the name and 

address of each maintenance provider it 

uses, and a description of the type of 

maintenance the contractor would 

perform. 

II. Background 

A. Statement of the Problem 

Air carrier maintenance has evolved 

from mostly an ‘‘in-house’’ operation to 

an extended network of maintenance 

providers that fulfill contracts with air 

carriers to perform their aircraft 

maintenance. Under §§ 121.363 and 

135.413 each air carrier remains 

primarily responsible for the 

airworthiness of its aircraft regardless of 

whether the maintenance is contracted 

to another person. Any person 

performing maintenance for an air 

carrier must follow the air carrier’s 

maintenance manual. However, air 

carrier general maintenance manuals 

often are geared toward in-house 

maintenance. They fail to provide the 

necessary instructions to maintenance 

providers to enable them to follow the 

air carrier’s maintenance programs. This 

is exacerbated when an air carrier’s 

manual contains proprietary data or 

other confidential information that an 

air carrier may not want to share with 

a maintenance provider. Often, the 

maintenance provider may also work on 

a competitor’s aircraft. Consequently, air 

carriers often are reluctant to share such 

information, and therefore, often do not. 

In addition, the FAA has found that, 

although an air carrier is required to list 

its maintenance providers and a general 

description of the work to be done in its 

maintenance manual, these lists are not 

always kept up to date, are not always 

complete, and are not always in a format 

that is readily useful for FAA oversight 

and analysis purposes. The FAA needs 

this information to be complete and 

readily available in order to plan 

surveillance of air carrier maintenance 

programs and determine the extent to 

which maintenance providers are 

performing their work according to the 

air carrier’s maintenance manual. 

Without accurate and complete 

information on the work being 

performed for air carriers, the FAA 

cannot adequately target its inspection 

resources for surveillance and make 

accurate risk assessments. 

B. Summary of the NPRM 

On November 13, 2012, the FAA 

published a Notice of Proposed 

Rulemaking (NPRM), Notice No. 12–07, 

entitled ‘‘Air Carrier Contract 

Maintenance Requirements,’’ 77 FR 

67584. The NPRM proposed to amend 

the maintenance regulations for 

domestic, flag, and supplemental 

operations, and for commuter and ondemand operations for aircraft type 

certificated with a passenger seating 

configuration of 10 seats or more. 

In addition to proposing requirements 

pertaining to covered work as required 

by the Act, the FAA proposed to require 

operators to develop policies, 

procedures, methods, and instructions 

for performing contract maintenance 

that are acceptable to the FAA and to 

include them in their maintenance 

manuals. The NPRM also proposed to 

require the operators to provide a list to 

the FAA of all persons with whom they 

contract their maintenance. These lists 

would include the physical addresses 

where the work would be carried out 

and a description of the type of work 

performed at each location. The FAA 

proposed these changes because 

contract maintenance has increased to 

over 70 percent of all air carrier 

maintenance, and numerous 

investigations found deficiencies in 

maintenance performed by contract 

maintenance providers. The proposed 

changes were intended to help ensure 

consistency between contract and inhouse maintenance and to enhance the 

oversight capabilities of both the 

operators and the FAA. The NPRM 

comment period closed on February 11, 

2013. 

C. General Overview of Comments 

The FAA received 43 comments. 

Twenty were from air carriers; nineteen 

were from Associations that represent 

air carriers and repair stations; and nine 

were from individuals involved in 

aviation. Several commenters disagreed 

with some of the proposals, and some 

suggested changes. These will be 

discussed more fully in the sections 

below. 

The FAA received comments on the 

following general areas of the proposal: 

• ‘‘Supervision and Control’’ and 

‘‘Directly in Charge’’; 

• Covered work; 

• Redundancy in many areas; 

• Exclusion of part 135 air carriers; 

• Part 135 and Overall estimated 

costs; 

• Reporting requirement. 

III. Discussion of Public Comments and 

Final Rule 

A. ‘‘Supervision and Control’’ and 

‘‘Directly in Charge’’ 

The FAA proposed definitions for 

‘‘directly in charge’’ and ‘‘supervision 

and control’’ in new §§ 121.368(a)(3) 

and (4), and 135.426(a)(3) and (4), but is 

adopting only the former term. As 

proposed in the NPRM, this new rule 

defines directly in charge to mean: 

‘‘having responsibility for covered work 

performed by a maintenance provider. A 

representative of the certificate holder 

directly in charge of covered work does 

not need to physically observe and 

direct each maintenance provider 

constantly, but must be available for 

consultation on matters requiring 

instruction or decision.’’ The proposal 

would have defined supervision and 

control to mean ‘‘that a representative of 

the certificate holder must be available 

to personally observe the covered work 

being done to the extent necessary to 

ensure it is being done properly; and 

when the representative was not 

physically present to observe the work, 

the representative would have had to be 

available for consultation on matters 

requiring instruction or decision.’’ The 

FAA is not adopting its proposed 

definition of ‘‘supervision and control’’ 

for reasons discussed below. 

Several commenters—FEDEX, NetJets, 

Transportation Trades Department 

(TTD), Aeronautical Repair Station 

Association (ARSA), and others— 


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Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Rules and Regulations 11539 

3The FAA’s proposed, and final, definition 

contains one other difference from that set forth in 

the Act. Sections 121.368(a)(2)(iii) and 135/

426(a)(2)(iii) state: ‘‘A required inspection item on 

an aircraft,’’ whereas the Act’s definition states ‘‘A 

required inspection item (as defined by the 

Administrator.’’ The FAA’s definition, however, 

comports with that in the Act, because the agency 

has limited (e.g., in Operations Specifications 

paragraph D–091 and Advisory Circular AC 120– 

16F) a Required Inspection Item (RII) to encompass 

only ‘‘on-wing’’ maintenance or alterations. 

Accordingly, by including the phrase ‘‘on an 

aircraft’’ in the rule’s definition, the Act’s mandate 

of ‘‘as defined by the Administrator’’ is satisfied. 

objected to the proposed definitions of 

‘‘directly in charge’’ and ‘‘supervision 

and control.’’ They found the 

definitions confusing and maintained 

they were not mandated by the Act. The 

commenters stated they are confused as 

to whether and how the representative 

was required to be ‘‘available.’’ The 

National Business Aviation Association 

(NBAA) was concerned that some part 

135 operators would be required to send 

the operator’s one and only 

maintenance person to be available onsite anytime an aircraft of the operator 

was being repaired or undergoing 

routine maintenance. Ameriflight stated 

that the term ‘‘available’’ is vague, and 

may be interpreted as widely as ‘‘in the 

immediate vicinity of,’’ ‘‘by telephone,’’ 

or ‘‘by internet,’’ etc. The Professional 

Aviation Safety Specialists (PASS) 

stated that the proposed definitions 

should be more stringent, and that air 

carriers should be physically present to 

observe the work being performed. 

PASS believed that the definitions 

proposed were contrary to the intent of 

the Act because, without modification, 

there would be no change from current 

practices. TTD expressed the same 

concerns. 

Aviation Technical Services (ATS) 

stated that the term ‘‘to the extent 

necessary’’ is insufficient. It believed 

this term provides no standards for an 

air carrier, but establishes that the 

amount of supervision is at the air 

carrier’s discretion until that 

supervision proves inadequate and a 

noncompliance occurs. This commenter 

suggested that this term should either be 

amended or deleted. 

Upon review, the FAA agrees that the 

proposed definition of ‘‘supervision and 

control’’ lacks clarity. Accordingly, we 

are withdrawing this definition because 

it is not necessary in view of the 

‘‘directly in charge’’ requirement, 

although the regulations will contain 

the phrase consistent with the Act’s use 

of it. Nearly constant presence for 

personal observation of work by an air 

carrier would seem to be required by the 

proposed ‘‘supervision and control’’ 

definition, with unfettered discretion by 

the air carrier to determine the meaning 

of ‘‘to the extent necessary.’’ Moreover, 

the last clause in the definition is nearly 

identical to that in the proposed and 

adopted definition of ‘‘directly in 

charge.’’ The FAA acknowledges that 

physical presence at the maintenance 

site is unnecessary for two reasons. One, 

with the state of information technology 

today, a person can acquire sufficient 

data to make a reasonably accurate 

decision or provide adequate instruction 

without having to be on site. Two, to 

require the physical presence of an 

observer at all locations where 

contracted covered work is performed 

would be extremely cost prohibitive. As 

such, the commenters’ concerns 

regarding confusion between the two 

definitions, and over the interpretation 

of ‘‘to the extent necessary,’’ are 

resolved. 

On the other hand, the FAA does not 

believe that the definition of ‘‘directly in 

charge’’ is confusing. A similar and 

consistent definition is in §§ 121.378 

and 135.435(b) since at least 1966, and 

in § 145.3 since 2001. That phrase has 

not caused confusion in all the years it 

has been in these regulations. Therefore, 

we believe the definition proposed in 

the NPRM is clear. 

Finally, regarding possible meanings 

of the term ‘‘available,’’ the FAA notes 

that Ameriflight is correct that the term 

could be broadly interpreted. However, 

this term is not intended to be a limiting 

factor of the rule. Broad interpretation of 

‘‘available’’ allows an air carrier the 

flexibility to use numerous information 

technology methods—such as high 

resolution photographs, text messaging, 

or the internet—to acquire the 

information necessary to make decisions 

and provide instructions. Therefore, this 

term is retained in the definition of 

‘‘directly in charge.’’ 

B. Covered Work 

Until this rule, the FAA’s 

maintenance regulations did not define 

‘‘covered work.’’ With one change from 

what it proposed, the FAA now defines 

‘‘covered work’’ exactly as set forth in 

the Act 3 in §§ 121.368(a)(2) and 

135.426(a)(2). ‘‘Covered work’’ means 

any of the following: ‘‘(i) Essential 

maintenance that could result in a 

failure, malfunction, or defect 

endangering the safe operation of an 

aircraft if not performed properly or if 

improper parts or materials are used; (ii) 

Regularly scheduled maintenance; or 

(iii) A required inspection item on an 

aircraft.’’ While it was the FAA’s intent 

to propose without change the 

definition in the Act, the term ‘‘parts or’’ 

was inadvertently omitted in front of the 

word ‘‘materials’’ in subparagraph (i). 

This omission is corrected in this final 

rule. 

Several commenters requested clarity 

on two of the terms used in the 

definition of ‘‘covered work’’: ‘‘essential 

maintenance’’ and ‘‘regularly scheduled 

maintenance.’’ With respect to essential 

maintenance, ARSA stated that when 

terms are not defined in the legislation, 

the agency must rely on current usage. 

Regarding ARSA’s comment, we note 

that paragraph (d) of Operations 

Specifications paragraph D–091. 

Requirements: Air Carrier Maintenance 

Providers, provides that ‘‘essential 

maintenance’’ is ‘‘on-wing’’ 

maintenance. Nothing in this rule, or in 

the Act’s definition of ‘‘covered work’’ 

expands essential maintenance to 

include ‘‘off-wing’’ maintenance. 

Therefore, the agency is relying on 

current usage for this term. Paragraph d 

of Operations Specifications paragraph 

D–091 states: 

Essential maintenance encompasses any 

Required Inspection Item on-wing 

accomplished after any maintenance or 

alteration. This maintenance, if done 

improperly or if improper parts or materials 

were used, would result in a failure effect 

that would endanger the continued safe flight 

and landing of the airplane. Essential 

maintenance is the accomplishment of the 

air carrier designated inspection item on 

wing. Essential maintenance does not 

encompass any off wing maintenance. 

We also note that neither the Act nor 

the FAA’s proposed rule attempted to 

define the term ‘‘essential 

maintenance.’’ When Congress defined 

‘‘covered work’’ in section 319(d)(1) of 

the Act, one of the three items it 

included (in subparagraph (A)) was 

‘‘essential maintenance.’’ The modifying 

text limits the scope to maintenance that 

‘‘could result in a failure, malfunction, 

or defect endangering the safe operation 

of an aircraft if not performed 

properly. . . .’’ This limiter was 

excerpted from the FAA’s definition 

found in operations specifications 

paragraph D–091 and in Advisory 

Circular AC 120–16F. 

Airbus, Airlines for America (A4A), 

Aerospace Industries Association (AIA), 

United Parcel Service (UPS), and a 

private citizen expressed concern over 

whether ‘‘essential maintenance,’’ as 

defined in proposed §§ 121.368(a)(2)(i) 

and 135.426(a)(2)(i), includes on-wing 

maintenance but not off-wing 

maintenance. AIA stated that AC 120– 

16F defined ‘‘essential maintenance’’ as 

not encompassing any off-wing 

maintenance. A4A believes ‘‘essential 

maintenance’’ traditionally excludes offwing maintenance, and that expanding 

the scope to include off-wing 

maintenance would significantly impact 


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11540 Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Rules and Regulations 

air carriers, and requested the FAA to 

clarify that ‘‘essential maintenance’’ 

applies only to on-wing maintenance. 

Southwest Airlines stated that the lack 

of ‘‘on an aircraft’’ in the definition for 

essential maintenance and regularly 

scheduled maintenance renders the 

definition over-broad. In addition, 

various commenters stated there is no 

justification for on-wing maintenance to 

be more stringent than off-wing 

maintenance. 

The Act is silent as to whether the 

maintenance at issue was meant to be 

restricted to on-wing maintenance or 

whether off-wing maintenance was also 

contemplated. The Act’s definition of 

‘‘covered work,’’ especially in view of 

its inclusion in subparagraph (C) of: ‘‘A 

required inspection item (as defined by 

the Administrator),’’ makes clear that 

Congress did not intend to change the 

FAA’s longstanding definition of 

‘‘essential maintenance’’ to include all 

off-wing maintenance under the heading 

of covered work. The FAA’s 

longstanding guidance and practice has 

been that required inspection items (RII) 

are safety of flight items on an aircraft 

that require a ‘‘second set of eyes,’’ that 

is, an additional inspection and sign off 

for the item. The provision that covered 

work includes RIIs ‘‘as defined by the 

Administrator’’ contemplates continued 

consistency in this area. Indeed, the 

NPRM proposed, and this final rule 

includes, in §§ 121.368(a)(2)(iii) and 

135.426(a)(2)(iii): ‘‘A required 

inspection item on an aircraft.’’ 

Although this subparagraph is separate 

from and in addition to the inclusion of 

‘‘essential maintenance’’ in the Act’s 

subparagraph (A) of § 319(d)(1), the 

overall context is clear that essential 

maintenance is meant to continue to 

apply only to on-wing maintenance. 

We agree with ARSA that that when 

terms are not defined in this legislation, 

the agency should rely on current usage. 

Accordingly, the term ‘‘essential 

maintenance,’’ as used both in the Act 

and in this final rule, is restricted to onwing maintenance. We note, however, 

that covered work also includes 

‘‘Regularly scheduled maintenance.’’ 

This term necessarily includes some 

‘‘off-wing’’ maintenance. This would 

occur, for example, in cases in which a 

component (e.g., an engine, landing 

gear, etc.) is scheduled for removal and 

overhaul, or when other off-wing 

maintenance is scheduled at some 

regular interval. Covered work, for 

purposes of §§ 121.368(b), (c), and (d) 

and 135.426(b), (c), and (d), does not 

include other non-scheduled or nonroutine off-wing maintenance. 

Several commenters stated that the 

proposed regulations do not address 

non-scheduled maintenance. The FAA 

notes that covered work, both as 

proposed and in this final rule, includes 

both essential maintenance and required 

inspection items, both of which include 

non-scheduled maintenance. In 

addition, the other new requirements 

that address both covered work and all 

other contracted maintenance, such as 

the requirements for air carriers to 

develop policies, procedures, methods, 

and instructions for accomplishing all 

contracted maintenance, necessarily 

include both scheduled and nonscheduled work. 

C. Exclusion of Part 135 Air Carriers 

Part 135 contains nearly identical 

requirements to those in part 121 for 

maintenance performed on certificate 

holders’ aircraft. For example, similar to 

the authorizations in part 121, part 135 

permits persons other than the 

certificate holder to perform 

maintenance on aircraft operated under 

that part. (See, e.g., §§ 135.425 and 

135.437.) Also similar to requirements 

in part 121, part 135 requires that a 

certificate holder’s manual contain the 

maintenance program that must be 

followed when maintenance is 

performed on the certificate holder’s 

aircraft. (See § 135.427(b).) Further, 

similar to the requirement in 

§ 121.369(a), § 135.427(a) requires each 

certificate holder to put in its manual a 

list of persons with whom it has 

arranged for the performance of its 

maintenance. 

Even though both parts 121 and 135 

require that the certificate holders’ 

maintenance manuals and programs be 

followed for both in-house and outsourced maintenance, as we explained 

in the NPRM, both the FAA and the 

Office of Inspector General found that 

too often certificate holders’ programs 

were not followed by contract 

maintenance providers. The FAA is 

adopting this final rule in an attempt to 

close this gap. The agency believes that 

by requiring certificate holders to 

develop policies, procedures, methods, 

and instructions for the accomplishment 

of contract maintenance in accordance 

with the certificate holders’ programs, 

contract maintenance providers will be 

better equipped to more closely follow 

them. Moreover, by enhancing the 

existing requirement that certificate 

holders provide a list of their 

maintenance providers to the FAA, to 

now include each provider’s physical 

address where the work is being 

performed and a description of the 

maintenance being done at each 

location, the FAA’s ability to provide 

meaningful surveillance will be 

enhanced. The need for these 

enhancements applies equally to both 

part 121 and part 135 certificate holders. 

D. Estimated Costs 

Several commenters stated that the 

FAA erred in assuming the estimated 

costs of compliance would be less for 

part 135 operators than for part 121 

operators. The FAA agrees, and to 

address this issue the FAA is using the 

same cost estimating methodology for 

both part 121 and part 135 air carriers. 

The cost estimates included in the 

regulatory evaluation for this final rule 

are based on entity size (large vs. small) 

rather than on whether a certificate 

holder operates under part 121 or part 

135, because entity size is a more 

relevant parameter for cost estimation 

than the part under which an air carrier 

operates. 

Several commenters believed the cost 

estimates for the proposal did not take 

into consideration added administrative 

costs, people resources, technology 

development, data systems, and 

publications infrastructure. The FAA 

does not agree. The agency believes that 

administrative costs, people resources, 

technology development, data systems, 

and publications infrastructures should 

already be in place to comply with 

current regulatory requirements. 

Therefore, these are not additional costs 

of the rule. 

The agency estimated the costs 

associated with creating lists and any 

changes to the manual. 

Several commenters stated that the 

FAA did not consider training costs. 

The FAA agrees that additional costs 

would be incurred in training personnel 

on the changes to the contract 

maintenance requirements. These 

training costs have been captured in the 

‘‘familiarization cost’’ section of the 

regulatory evaluation. The FAA believes 

the term ‘‘familiarization’’ is a more 

appropriate term than ‘‘training’’ to 

describe these costs, not only because 

there is a difference in the scope and 

extent of material covered in these two 

terms, but also because familiarizationtype training is given to individuals 

who are already qualified; therefore, 

‘‘familiarization’’ is a more appropriate 

descriptive term. 

A few commenters stated that the 

FAA did not consider software and 

auditor costs. 

This rule does not require 

development of new technology. 

Existing software (e.g., any word 

processing software) can be used to 

make the changes required by this final 

rule, so the cost for software is a sunk 

cost. Regarding auditor costs, the FAA 

did capture these costs in the NPRM, 

but for part 121 air carriers only, 


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Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Rules and Regulations 11541 

believing at the time that auditor costs 

for part 135 air carriers would be 

negligible. In view of the comments we 

received on this issue, in this final rule, 

the FAA captured these costs for both 

part 121 and 135 air carriers. 

See the Regulatory Evaluation for 

more in-depth details. 

E. Redundancy 

Southwest Airlines stated that the 

regulations proposed appear to 

duplicate various existing regulations, 

and are therefore redundant. The 

company stated that proposed 

§ 121.368(e) and (f) would seem to 

duplicate the regulatory requirements 

currently found in §§ 121.367 

‘‘Maintenance, preventive maintenance, 

and alterations programs,’’ and 121.373 

‘‘Continuing analysis and surveillance.’’ 

The company asserted that paragraph 

(h) of both proposed §§ 121.368 and 

135.426 would seem to duplicate 

current requirements in §§ 121.369(a) 

and 135.427(a). And further, that 

§§ 121.368(g) and 121.369(b)(10) appear 

to duplicate existing requirements in 

§§ 121.133, 121.135, 121.361, 121.363, 

121.365, 121.367, and 121.369. 

The FAA notes that while the 

amendments proposed may seem to 

overlap some of the existing 

requirements in §§ 121.361, 121.363, 

and 121.365, those regulations address 

different aspects of maintenance, 

whereas §§ 121.368, 121.369(b)(10), 

135.426 and 135.427(b)(10) establish 

additional conditions for the 

arrangement of maintenance and 

establish additional requirements for 

providing and keeping an updated list 

of contract maintenance providers, 

including the type of maintenance they 

are performing. For example, § 121.367 

requires each operator to have an 

inspection program that covers all 

maintenance. Sections 121.369(b)(10) 

and 135.427(b)(10) require that the new 

policies, procedures, methods, and 

instructions for accomplishing 

contracted maintenance in accordance 

with the air carriers’ programs be 

included in the air carriers’ manuals. In 

addition, the new rules will require air 

carriers to provide the necessary 

maintenance instructions to 

maintenance providers in order for them 

to perform the air carriers’ maintenance, 

whether or not their maintenance 

manuals contain proprietary data, or 

other confidential information that an 

air carrier may be reluctant to share. 

Finally, while §§ 121.368 and 121.369 

are similar in many respects, they are 

different in their intent. Section 121.369 

addresses in-house maintenance 

performed by air carrier personnel, 

while § 121.368 addresses contract 

maintenance. Their similarity reflects 

the overall intent to standardize 

maintenance between in-house and 

contract maintenance, and to ensure 

overall consistency and safety. 

Therefore, the FAA is not making any 

changes to these sections based on the 

commenters’ concerns about 

duplication. 

F. Reporting Requirement 

Current §§ 121.369(a) and 135.427(a) 

require each air carrier to include in its 

manual a list of persons with whom it 

has arranged for the performance of 

maintenance, preventive maintenance, 

and alterations, including a general 

description of that work. As proposed, 

and as adopted in this final rule, 

§§ 121.368(h) and 135.426(h) will 

require each certificate holder who 

contracts for maintenance, preventive 

maintenance, or alterations to provide to 

the FAA a list that includes each 

contract maintenance provider’s name 

and physical address of where the work 

will be carried out, and a description of 

the type of maintenance, preventive 

maintenance, or alteration that is to be 

performed at each location. 

National Air Transportation 

Association (NATA) stated that the 

proposed additional requirements 

pertaining to the listing of maintenance 

providers would appear to create a new 

requirement that the FAA would have to 

approve the addition of a maintenance 

provider on the list before that provider 

could perform contract maintenance for 

the certificate holder. NATA argues that, 

if this is the case, it would create an 

undue burden for part 135 certificate 

holders, who operate on an ad-hoc basis 

to locations that are unpredictable and 

often change, so that they cannot 

account for those entities with whom 

they engage in unplanned maintenance. 

The FAA believes the issue raised by 

NATA would not arise because 

§ 135.426(h) does not require that a 

maintenance provider be on the list and 

be pre-approved by the FAA before an 

air carrier may contract with it to 

perform maintenance. Neither 

§ 121.368(h) nor § 135.426(h) prohibit 

deletions or additions to the list—these 

rules simply require that the updated 

list be provided to the FAA by the last 

day of each calendar month. In the 

situation outlined by NATA, a part 135 

operator would contract with 

maintenance providers to perform 

maintenance, including unplanned 

maintenance, as provided in § 135.413, 

then update its list and submit it to the 

FAA by the end of the calendar month. 

IV. Regulatory Notices and Analyses 

A. Regulatory Evaluation Preamble 

Summary 

Changes to Federal regulations must 

undergo several economic analyses. 

First, Executive Order 12866 and 

Executive Order 13563 direct that each 

Federal agency shall propose or adopt a 

regulation only upon a reasoned 

determination that the benefits of the 

intended regulation justify its costs. 

Second, the Regulatory Flexibility Act 

of 1980 (Pub. L. 96–354) requires 

agencies to analyze the economic 

impact of regulatory changes on small 

entities. Third, the Trade Agreements 

Act (Pub. L. 96–39) prohibits agencies 

from setting standards that create 

unnecessary obstacles to the foreign 

commerce of the United States. In 

developing U.S. standards, the Trade 

Act requires agencies to consider 

international standards and, where 

appropriate, that they be the basis of 

U.S. standards. Fourth, the Unfunded 

Mandates Reform Act of 1995 (Pub. L. 

104–4) requires agencies to prepare a 

written assessment of the costs, benefits, 

and other effects of proposed or final 

rules that include a Federal mandate 

likely to result in the expenditure by 

State, local, or tribal governments, in the 

aggregate, or by the private sector, of 

$100 million or more annually (adjusted 

for inflation with base year of 1995). 

This portion of the preamble 

summarizes the FAA’s analysis of the 

economic impacts of this final rule. We 

suggest readers seeking greater detail 

read the full regulatory evaluation, a 

copy of which we have placed in the 

docket for this rulemaking. 

In conducting these analyses, FAA 

has determined that this final rule: (1) 

Has benefits that justify its costs, (2) is 

not an economically ‘‘significant 

regulatory action’’ as defined in section 

3(f) of Executive Order 12866, (3) is not 

‘‘significant’’ as defined in DOT’s 

Regulatory Policies and Procedures; (4) 

will not have a significant economic 

impact on a substantial number of small 

entities; (5) will not create unnecessary 

obstacles to the foreign commerce of the 

United States; and (6) will not impose 

an unfunded mandate on state, local, or 

tribal governments, or on the private 

sector by exceeding the threshold 

identified above. These analyses are 

summarized below. 

Total Benefits and Costs of This Rule 

This rule responds to a Congressional 

mandate and is expected to prevent 2 

accidents. The benefit for the rule is 

estimated to be $142.8 million or $92.0 

million present value at 7% over 10 

years. The estimated cost for the rule is 


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$20.4 million ($14.1 million, present 

value). More detailed benefit and cost 

information is presented below. 

Who is potentially affected by this rule? 

Certificate holders who conduct 

domestic, flag, or supplemental 

operations under part 121, and 

certificate holders who conduct 

commuter operations or on-demand 

operations with aircraft type certificated 

for a passenger seating configuration, 

excluding any pilot seat, of ten seats or 

more under part 135. 

Assumptions 

• All monetary values were expressed 

in constant 2014 dollars. We calculated 

the present value of the potential benefit 

stream by discounting the monetary 

values using a 7 percent interest rate 

from 2015 to 2024. 

• The rule is expected to take effect 

in 2015. 

• The value of a statistical life (VSL) 

is $9.2 million. 

• VSL in future years were estimated 

to grow by 1.18 percent per year (the 

Congressional Budget Office estimated 

that there will be an expected 1.18 

percent annual growth rate in median 

real wages over the next 30 years) before 

discounting to present value. 

• The value of medical and legal costs 

associated with fatal injuries was 

estimated at about $171,000. 

• The value of a minor injury was 

$27,600. 

• The value of medical and legal costs 

associated with minor injuries was 

estimated at about $3,000. 

• The FAA also estimates the cost of 

accident investigations. Accidents 

reported by the NTSB incur 

investigation costs from the NTSB, the 

FAA, and the private sector. The total 

accident investigation cost per accident 

is assumed to be $570,968. 

• As per DOT guidance, we assume 

that real wages increase at 1.2 percent 

per year. 

Changes From the NPRM to the Final 

Rule 

For the benefits, we have made two 

significant changes to the final rule 

regulatory analysis: 

• Since the NPRM published, the 

FAA has identified 2 accidents which 

could have been prevented by this rule. 

We estimate the benefit value for 

preventing similar future accidents will 

be about $92.0 million present value 

over 10 years. 

• In this final rule, we note this rule 

is Congressionally mandated for part 

121 air carriers. 

For the cost section, we have made 

three significant changes to the final 

rule regulatory analysis, which have 

increased the costs from about $1.6 

million to $14.1 million present value 

over 10 years: 

• The cost estimates included in the 

regulatory evaluation for this final rule 

are based on entity size (large vs. small) 

rather than on whether a certificate 

holder operates under part 121 or part 

135, because entity size is a more 

relevant parameter for cost estimation 

than whether the air carrier operates 

under part 121 or part 135. 

• For this final rule, we used the 

commenters’ estimates (when they were 

available) rather than our own, which 

generally raised the costs. 

• We added familiarization costs. 

Benefits of This Rule 

A significant part of this rule is 

Congressionally mandated for part 121 

air carriers. 

The FAA identified two accidents that 

could have been prevented by this rule. 

One of the accidents was operated by 

Air Midwest (part 121/135 operator) 

under part 121 service at the time. This 

accident resulted in 21 fatalities and 1 

minor injury. The other accident was 

operated by Emery Worldwide Airlines, 

and resulted in 3 fatalities. The FAA 

believes that the benefits justify the 

costs for part 121 and part 135 

operators. In addition to the casualties, 

2 aircraft were destroyed. After factoring 

in the effectiveness of the rule to 

prevent these accidents, the FAA 

estimates the benefit value to be $142.8 

million, or $92.0 million present value 

at 7% over 10 years. 

Costs of This Rule 

From 2015 to 2024, the cost to air 

carriers and the FAA would be 

approximately $20.4 million ($14.1 

million, present value), as shown in 

table below. 

B. Regulatory Flexibility Determination 

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 objectives 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 this principle, 

agencies are required to solicit and 

consider flexible regulatory proposals 

and to explain the rationale for their 

actions to assure that such proposals are 

given serious consideration.’’ The RFA 

covers a wide-range of small entities, 


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including small businesses, not-forprofit organizations, and small 

governmental jurisdictions. 

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. 

However, if an agency determines that 

a rule is not expected to have a 

significant economic impact on a 

substantial number of small entities, 

section 605(b) of the RFA provides that 

the head of the agency may so certify 

and a regulatory flexibility analysis is 

not required. The certification must 

include a statement providing the 

factual basis for this determination, and 

the reasoning should be clear. 

The FAA identified a total of 222 

operators with less than 1,500 

employees—these are classified as small 

entities. 

The FAA believes that this final rule 

will not have a significant economic 

impact on a substantial number of small 

entities for the following reason: 

The FAA estimates that their ratio of 

annualized costs to annual revenue is 

between 0.001% and 0.010%, which is 

not considered a significant economic 

impact. Therefore, as provided in 

section 605(b), the Administrator of the 

FAA certifies that this rulemaking will 

not result in a significant economic 

impact on a substantial number of small 

entities. 

C. International Trade Impact 

Assessment 

The Trade Agreements Act of 1979 

(Pub. L. 96–39), as amended by the 

Uruguay Round Agreements Act (Pub. 

L. 103–465), prohibits Federal agencies 

from establishing standards or engaging 

in related activities that create 

unnecessary obstacles to the foreign 

commerce of the United States. 

Pursuant to these Acts, the 

establishment of standards is not 

considered an unnecessary obstacle to 

the foreign commerce of the United 

States, so long as the standard has a 

legitimate domestic objective, such the 

protection of safety, and does not 

operate in a manner that excludes 

imports that meet this objective. The 

statute also requires consideration of 

international standards and, where 

appropriate, that they be the basis for 

U.S. standards. The FAA has assessed 

the potential effect of this final rule and 

determined that it improves safety and 

as a legitimate domestic objective 

therefore will not create unnecessary 

obstacles to the foreign commerce of the 

United States. 

D. Unfunded Mandates Assessment 

Title II of the Unfunded Mandates 

Reform Act of 1995 (Pub. L. 104–4) 

requires each Federal agency to prepare 

a written statement assessing the effects 

of any Federal mandate in a proposed or 

final agency rule that may result in an 

expenditure of $100 million or more (in 

1995 dollars) in any one year by State, 

local, and tribal governments, in the 

aggregate, or by the private sector; such 

a mandate is deemed to be a ‘‘significant 

regulatory action.’’ The FAA currently 

uses an inflation-adjusted value of 

$151.0 million in lieu of $100 million. 

This final rule does not contain such a 

mandate; therefore, the requirements of 

Title II of the Act do not apply. 

E. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3507(d)) requires that the 

FAA consider the impact of paperwork 

and other information collection 

burdens imposed on the public. 

According to the 1995 amendments to 

the Paperwork Reduction Act (5 CFR 

1320.8(b)(2)(vi)), an agency may not 

collect or sponsor the collection of 

information, nor may it impose an 

information collection requirement 

unless it displays a currently valid 

Office of Management and Budget 

(OMB) control number. 

This final rule will impose the 

following amended information 

collection requirements. As required by 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3507(d)), the FAA has 

submitted these information collection 

amendments to OMB for its review. 

Notice of OMB approval for these 

information collections will be 

published in a future Federal Register 

document. 

Summary: Each operator which seeks 

to obtain, or is in possession of, an air 

carrier operating certificate must 

comply with the requirements of 14 CFR 

part 121 in order to maintain data which 

is used to determine if the air carrier is 

operating in accordance with minimum 

safety standards. Original certification is 

completed in accordance with part 119. 

Each operator which seeks to obtain, 

or is in possession of a commuter or ondemand operating certificate must 

comply with the requirements of 14 CFR 

part 135 in order to maintain data which 

is used to determine if the air carrier is 

operating in accordance with minimum 

safety standards. Original certification is 

completed in accordance with part 119. 

Continuing certification is completed 

in accordance with part 121 and part 

135. One form is used. The use of this 

form was taken into account in 

estimating the burden for this section. 

Use: This information collection 

supports the Department of 

Transportation’s strategic goal of safety. 

Specifically, the goal is to promote the 

public health and safety by working 

toward the elimination of 

transportation-related deaths, injuries, 

and destruction of property. 

Title 49 U.S.C. 44702, empowers the 

Secretary of Transportation to issue air 

carrier operating certificates and to 

establish minimum safety standards for 

the operation of the air carrier to whom 

such certificates are issued. Under the 

authority of Title 49 CFR 44701, Federal 

Aviation Regulations part 121 and part 

135 prescribe the terms, conditions, and 

limitations as are necessary to ensure 

safety in air transportation. 

Respondents (including number of): 

There are 80 part 121 air carriers and 

168 part 135 operators affected by this 

rule. 

Frequency: The manual requirements 

will be submitted as part of the 

submission of maintenance manuals to 

the FAA for acceptance. 

Annual Burden Estimate: This rule 

requires that the air carrier’s manual has 

all the policies, procedures, methods, 

and instructions for the accomplishment 

of maintenance by another person to 

include the information necessary for 

certificate holders to ensure all 

maintenance is performed in accordance 

with its maintenance program. The rule 

also requires that the air carrier provide 

a list with the name and address of each 

maintenance provider used and the type 

of maintenance that is to be performed. 

Private Sector Costs 

This rule will require affected air 

carriers to develop policies, procedures, 

methods, and instructions for 

performing contract maintenance that 

are acceptable to the FAA and to 

include them in their maintenance 

manuals. The rule also requires the air 

carriers to provide a list to the FAA of 

all persons with whom they contract 

their maintenance. 

To calculate the cost of revising and 

updating the manual and revising and 

updating the list, the following 

assumptions were used, paralleling 

those in the regulatory evaluation: 

• 222 small air carriers. 

• 26 large air carriers. 

• Small air carriers: amount of time 

revising manual (manager): 16 hours. 

• Small air carriers: amount of time 

revising manual (technical writer): 40 

hours. 

• Small air carriers: amount of time 

revising manual (editor): 2 hours. 


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• Small air carriers: amount of time 

maintaining manual (manager): 16 

hours. 

• Small air carriers: amount of time 

maintaining manual (technical writer): 

40 hours. 

• Small air carriers: amount of time 

maintaining manual (editor): 2 hours. 

• Large air carriers: amount of time 

revising manual (manager): 60 hours. 

• Large air carriers: amount of time 

revising manual (technical writer): 30 

hours. 

• Large air carriers: amount of time 

revising manual (editor): 30 hours. 

• Large air carriers: amount of time 

maintaining manual (manager): 104 

hours. 

• Large air carriers: amount of time 

maintaining manual (technical writer): 

156 hours. 

• Large air carriers: amount of time 

maintaining manual (editor): 156 hours. 

• Small air carriers: amount of time to 

provide the list (manager): 10 hours. 

• Small air carriers: amount of time to 

provide the list (technical writer): 3 

hours. 

• Small air carriers: amount of time to 

provide the list (auditor): 10 hours. 

• Small air carriers: amount of time to 

maintain and update the list (manager): 

12 hours. 

• Small air carriers: amount of time to 

maintain and update the list (technical 

writer): 12 hours. 

• Small air carriers: amount of time to 

maintain and update the list (auditor): 

12 hours. 

• Large air carriers: amount of time to 

provide the list (manager): 40 hours. 

• Large air carriers: amount of time to 

provide the list (technical writer): 20 

hours. 

• Large air carriers: amount of time to 

provide the list (auditor): 20 hours. 

• Large air carriers: amount of time to 

maintain and update the list (manager): 

104 hours. 

• Large air carriers: amount of time to 

maintain and update the list (technical 

writer): 156 hours. 

• Large air carriers: amount of time to 

maintain and update the list (auditor): 

156 hours. 

• For the wages, we assume that there 

will be a 1.2 percent projected annual 

increase in real wages. 

First Year Costs for Small Air Carriers 

Cost = 222 × ((16 hours × $66.08) + 

(40 hours × $40.02) + (2 hours × $35.76) 

+ (10 hours × $66.08) + (3 hours × 

$40.02) + (10 hours × $41.28)) = 

$870,966. 

Time = 222 × (16 hours + 40 hours + 

2 hours + 10 hours + 3 hours + 10 hours) 

= 17,982. 

Second Year Costs for Small Air Carriers 

Cost = 222 × ((16 hours × $66.87) + 

(40 hours × $40.50) + (2 hours × $36.19) 

+ (12 hours × $66.87) + (12 hours × 

$40.50) + (12 hours × $41.77)) = 

$1,010,576. 

Time = 222 × (16 hours + 40 hours + 

2 hours + 10 hours + 3 hours + 10 hours) 

= 17,982. 

Third Year Costs for Small Air Carriers 

Cost = 222 × ((16 hours x $67.68) + 

(40 hours × $40.99) + (2 hours × $36.62) 

+ (12 hours × $67.68) + (12 hours × 

$40.99) + (12 hours × $42.27)) = 

$1,022,703. 

Time = 222 × (16 hours + 40 hours + 

2 hours + 10 hours + 3 hours + 10 hours) 

= 17,982. 

Fourth Year Costs for Small Air Carriers 

Cost = 222 × ((16 hours × $68.49) + 

(40 hours × $41.48) + (2 hours × $37.06) 

+ (12 hours × $68.49) + (12 hours × 

$41.48) + (12 hours × $42.78)) = 

$1,034,976. 

Time = 222 × (16 hours + 40 hours + 

2 hours + 10 hours + 3 hours + 10 hours) 

= 17,982. 

Fifth Year Costs for Small Air Carriers 

Cost = 222 × ((16 hours × $69.31) + 

(40 hours × $41.98) + (2 hours × $37.51) 

+ (12 hours × $69.31) + (12 hours × 

$41.98) + (12 hours × $43.29)) = 

$1,047,395. 

Time = 222 × (16 hours + 40 hours + 

2 hours + 10 hours + 3 hours + 10 hours) 

= 17,982. 

Sixth Year Costs for Small Air Carriers 

Cost = 222 × ((16 hours × $70.14) + 

(40 hours × $42.48) + (2 hours × $37.96) 

+ (12 hours × $70.14) + (12 hours × 

$42.48) + (12 hours × $43.81)) = 

$1,059,964. 

Time = 222 × (16 hours + 40 hours + 

2 hours + 10 hours + 3 hours + 10 hours) 

= 17,982. 

Seventh Year Costs for Small Air 

Carriers 

Cost = 222 × ((16 hours × $70.98) + 

(40 hours × $42.99) + (2 hours × $38.41) 

+ (12 hours × $70.98) + (12 hours × 

$42.99) + (12 hours × $44.34)) = 

$1,072,684. 

Time = 222 × (16 hours + 40 hours + 

2 hours + 10 hours + 3 hours + 10 hours) 

= 17,982. 

Eight Year Costs for Small Air Carriers 

Cost = 222 × ((16 hours × $71.84) + 

(40 hours × $43.51) + (2 hours × $38.87) 

+ (12 hours × $71.84) + (12 hours × 

$43.51) + (12 hours × $44.87)) = 

$1,085,556. 

Time = 222 × (16 hours + 40 hours + 

2 hours + 10 hours + 3 hours + 10 hours) 

= 17,982. 

Ninth Year Costs for Small Air Carriers 

Cost = 222 × ((16 hours × $72.70) + 

(40 hours × $44.03) + (2 hours × $39.34) 

+ (12 hours × $72.70) + (12 hours × 

$44.03) + (12 hours × $45.41)) = 

$1,098,583. 

Time = 222 × (16 hours + 40 hours + 

2 hours + 10 hours + 3 hours + 10 hours) 

= 17,982. 

Tenth Year Costs for Small Air Carriers 

Cost = 222 × ((16 hours × $73.57) + 

(40 hours × $44.56) + (2 hours × $39.81) 

+ (12 hours × $73.57) + (12 hours × 

$44.56) + (12 hours × $45.95)) = 

$1,111,766. 

Time = 222 × (16 hours + 40 hours + 

2 hours + 10 hours + 3 hours + 10 hours) 

= 17,982. 

First Year Costs for Large Air carriers 

Cost = 26 × ((60 hours × $66.08) + (30 

hours × $40.02) + (30 hours × $35.76) + 

(40 hours × $66.08) + (20 hours × 

$40.02) + (20 hours × $41.28)) = 

$273,193. 

Time = 26 × (60 hours + 30 hours + 

30 hours + 40 hours + 20 hours + 20 

hours) = 5,200. 

Second Year Costs for Large Air carriers 

Cost = 26 × ((104 hours × $66.87) + 

(156 hours × $40.50) + (156 hours × 

$36.19) + (104 hours × $66.87) + (156 

hours × $40.50) + (156 hours × $41.77)) 

= $1,006,396. 

Time = 26 × (104 hours + 156 hours 

+ 156 hours + 104 hours + 156 hours + 

156 hours) = 21,632. 

Third Year Costs for Large Air carriers 

Cost = 26 × ((104 hours × $67.68) + 

(156 hours × $40.99) + (156 hours × 

$36.62) + (104 hours × $67.68) + (156 

hours × $40.99) + (156 hours × $42.27)) 

= $1,018,473. 

Time = 26 × (104 hours + 156 hours 

+ 156 hours + 104 hours + 156 hours + 

156 hours) = 21,632. 

Fourth Year Costs for Large Air Carriers 

Cost = 26 × ((104 hours × $68.49) + 

(156 hours × $41.48) + (156 hours × 

$37.06) + (104 hours × $68.49) + (156 

hours × $41.48) + (156 hours × $42.78)) 

= $1,030,695. 

Time = 26 × (104 hours + 156 hours 

+ 156 hours + 104 hours + 156 hours + 

156 hours) = 21,632. 

Fifth Year Costs for Large Air Carriers 

Cost = 26 × ((104 hours × $69.31) + 

(156 hours × $41.98) + (156 hours × 

$37.51) + (104 hours × $69.31) + (156 

hours × $41.98) + (156 hours × $43.29)) 

= $1,043,063. 

Time = 26 × (104 hours + 156 hours 

+ 156 hours + 104 hours + 156 hours + 

156 hours) = 21,632. 


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Sixth Year Costs for Large Air Carriers 

Cost = 26 × ((104 hours × $70.14) + 

(156 hours × $42.48) + (156 hours × 

$37.96) + (104 hours × $70.14) + (156 

hours × $42.48) + (156 hours × $43.81)) 

= $1,055,580. 

Time = 26 × (104 hours + 156 hours 

+ 156 hours + 104 hours + 156 hours + 

156 hours) = 21,632. 

Seventh Year Costs for Large Air 

Carriers 

Cost = 26 × ((104 hours × $70.98) + 

(156 hours × $42.99) + (156 hours × 

$38.41) + (104 hours × $70.98) + (156 

hours × $42.99) + (156 hours × $44.34)) 

= $1,068,247. 

Time = 26 × (104 hours + 156 hours 

+ 156 hours + 104 hours + 156 hours + 

156 hours) = 21,632. 

Eight Year Costs for Large Air Carriers 

Cost = 26 × ((104 hours × $71.84) + 

(156 hours × $43.51) + (156 hours × 

$38.87) + (104 hours × $71.84) + (156 

hours × $43.51) + (156 hours × $44.87)) 

= $1,081,066. 

Time = 26 × (104 hours + 156 hours 

+ 156 hours + 104 hours + 156 hours + 

156 hours) = 21,632. 

Ninth Year Costs for Large Air Carriers 

Cost = 26 × ((104 hours × $72.70) + 

(156 hours × $44.03) + (156 hours × 

$39.34) + (104 hours × $72.70) + (156 

hours × $44.03) + (156 hours × $45.41)) 

= $1,094,038. 

Time = 26 × (104 hours + 156 hours 

+ 156 hours + 104 hours + 156 hours + 

156 hours) = 21,632. 

Tenth Year Costs for Large Air Carriers 

Cost = 26 × ((104 hours × $73.57) + 

(156 hours × $44.56) + (156 hours × 

$39.81) + (104 hours × $73.57) + (156 

hours × $44.56) + (156 hours × $45.95)) 

= $1,107,167. 

Time = 26 × (104 hours + 156 hours 

+ 156 hours + 104 hours + 156 hours + 

156 hours) = 21,632. 

Total over 10 years 

Cost = ($870,966 + $1,010,576 + 

$1,022,703 + $1,034,976 + $1,047,395 + 

$1,059,964 + $1,072,684 + $1,085,556 + 

$1,098,583 + $1,111,766 + $273,193 + 

$1,006,396 + $1,018,473 + $1,030,695 + 

$1,043,063 + $1,055,580 + $1,068,247 + 

$1,081,066 + $1,094,038 + $1,107,167) = 

$20,193,086 

Time = ((10 × 17,982 hours) + 5,200 

hours + (9 × 21,632 hours)) = 379,708. 

Average per Year 

Cost = $20,193,086/10 = $2,019,309. 

Time = 379,708/10 = 37,971 hours. 

FAA Costs 

The FAA has to ensure that the air 

carriers’ manuals are revised and 

maintained. 

To calculate the cost of ensuring that 

the manuals are revised and maintained, 

the following assumptions were used, 

paralleling those in the regulatory 

evaluation: 

• 248 small and large air carriers. 

• Amount of time to ensure that each 

manual is revised (FAA inspector): 1 

hour. 

• Amount of time to verify manual 

maintenance (FAA inspector): 1 hour. 

• For the FAA inspector wage we 

assume that there will be a 1.2 percent 

projected annual increase. 

First Year Costs for the FAA 

Cost = 248 × (1 hour × $64.05) = 

$15,884. 

Time = 248 × (1 hour) = 248. 

Second Year Costs for the FAA 

Cost = 248 × (0.25 hour × $64.82) = 

$4,019. 

Time = 248 × (0.25 hour) = 62. 

Third Year Costs for the FAA 

Cost = 248 × (0.25 hour × $65.59) = 

$4,067 

Time = 248 × (0.25 hour) = 62. 

Fourth Year Costs for the FAA 

Cost = 248 × (0.25 hour × $66.38) = 

$4,116. 

Time = 248 × (0.25 hour) = 62. 

Fifth Year Costs for the FAA 

Cost = 248 × (0.25 hour × $67.18) = 

$4,165. 

Time = 248 × (0.25 hour) = 62. 

Sixth Year Costs for the FAA 

Cost = 248 × (0.25 hour × $67.98) = 

$4,215. 

Time = 248 × (0.25 hour) = 62. 

Seventh Year Costs for the FAA 

Cost = 248 × (0.25 hour × $68.80) = 

$4,266. 

Time = 248 × (0.25 hour) = 62. 

Eight Year Costs for the FAA 

Cost = 248 × (0.25 hour × $69.63) = 

$4,317. 

Time = 248 × (0.25 hour) = 62. 

Ninth Year Costs for the FAA 

Cost = 248 × (0.25 hour × $70.46) = 

$4,369. 

Time = 248 × (0.25 hour) = 62. 

Tenth Year Costs for the FAA 

Cost = 248 × (0.25 hour x $71.31) = 

$4,421. 

Time = 248 × (0.25 hour) = 62. 

Total Over 10 Years 

Cost = ($15,884 + $4,019 + $4,067 + 

$4,116 + $4,165 + $4,215 + $4,266 + 

$4,317 + $4,369 + $4,421) = $53,837. 

Time = (248 hours + (9 × 62 hours)) 

= 806. 

Average per Year 

Cost = $53,837/10 = $5,384. 

Time = 806/10 = 81 hours. 

F. International Compatibility and 

Cooperation 

In keeping with U.S. obligations 

under the Convention on International 

Civil Aviation, it is FAA policy to 

conform to International Civil Aviation 

Organization (ICAO) Standards and 

Recommended Practices to the 

maximum extent practicable. The FAA 

has determined that there are no ICAO 

Standards and Recommended Practices 

that correspond to these proposed 

regulations. 

G. Environmental Analysis 

FAA Order 1050.1E identifies FAA 

actions that are categorically excluded 

from preparation of an environmental 

assessment or environmental impact 

statement under the National 

Environmental Policy Act in the 

absence of extraordinary circumstances. 

The FAA has determined this 

rulemaking action qualifies for the 

categorical exclusion identified in 

Chapter 3, paragraph 312d, and involves 

no extraordinary circumstances. 

H. Regulations Affecting Intrastate 

Aviation in Alaska 

Section 1205 of the FAA 

Reauthorization Act of 1996 (110 Stat. 

3213) requires the FAA, when 

modifying its regulations in a manner 

affecting intrastate aviation in Alaska, to 

consider the extent to which Alaska is 

not served by transportation modes 

other than aviation, and to establish 

appropriate regulatory distinctions. In 

the NPRM, the FAA requested 

comments on whether the proposed rule 

should apply differently to intrastate 

operations in Alaska. The agency did 

not receive any comments, and has 

determined, based on the administrative 

record of this rulemaking, that there is 

no need to make any regulatory 

distinctions applicable to intrastate 

aviation in Alaska. 

V. Executive Order Determinations 

A. Executive Order 13132, Federalism 

The FAA has analyzed this final rule 

under the principles and criteria of 

Executive Order 13132, Federalism. The 

agency determined that this action will 

not have a substantial direct effect on 


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11546 Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Rules and Regulations 

the States, or the relationship between 

the Federal Government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government, and, therefore, 

does not have Federalism implications. 

B. Executive Order 13211, Regulations 

That Significantly Affect Energy Supply, 

Distribution, or Use 

The FAA analyzed this final rule 

under Executive Order 13211, Actions 

Concerning Regulations that 

Significantly Affect Energy Supply, 

Distribution, or Use (May 18, 2001). The 

agency has determined that it is not a 

‘‘significant energy action’’ under the 

executive order and it is not likely to 

have a significant adverse effect on the 

supply, distribution, or use of energy. 

VI. How To Obtain Additional 

Information 

A. Rulemaking Documents 

An electronic copy of a rulemaking 

document my be obtained by using the 

Internet— 

1. Search the Federal eRulemaking 

Portal (http://www.regulations.gov); 

2. Visit the FAA’s Regulations and 

Policies Web page at http://

www.faa.gov/regulations_policies/ or 

3. Access the Government Publishing 

Office’s Web page at http://

www.gpo.gov/fdsys/. 

Copies may also be obtained by 

sending a request (identified by notice, 

amendment, or docket number of this 

rulemaking) to the Federal Aviation 

Administration, Office of Rulemaking, 

ARM–1, 800 Independence Avenue 

SW., Washington, DC 20591, or by 

calling (202) 267–9680. 

B. Comments Submitted to the Docket 

Comments received may be viewed by 

going to http://www.regulations.gov and 

following the online instructions to 

search the docket number for this 

action. Anyone is able to search the 

electronic form of all comments 

received into any of the FAA’s dockets 

by the name of the individual 

submitting the comment (or signing the 

comment, if submitted on behalf of an 

association, business, labor union, etc.). 

C. Small Business Regulatory 

Enforcement Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act (SBREFA) of 

1996 requires FAA to comply with 

small entity requests for information or 

advice about compliance with statutes 

and regulations within its jurisdiction. 

A small entity with questions regarding 

this document, may contact its local 

FAA official, or the person listed under 

the FOR FURTHER INFORMATION CONTACT

heading at the beginning of the 

preamble. To find out more about 

SBREFA on the Internet, visit http://

www.faa.gov/regulations_policies/

rulemaking/sbre_act/. 

List of Subjects 

14 CFR Part 121 

Aircraft, Aviation safety, Life-limited 

parts, Reporting and recordkeeping 

requirements. 

14 CFR Part 135 

Aircraft, Aviation safety, Life-limited 

parts, Reporting and recordkeeping 

requirements. 

The Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends chapter I of title 14, Code of 

Federal Regulations as follows: 

PART 121—OPERATING 

REQUIREMENTS: DOMESTIC, FLAG, 

AND SUPPLEMENTAL OPERATIONS 

■ 1. The authority citation for part 

121continues to read as follows: 

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

40119, 41706, 44101, 44701–44702, 44705, 

44709–44711, 44713, 44716–44717, 44722, 

44732; 46105; Pub. L. 111–216, 124 Stat. 

2348 (49 U.S.C. 44701 note); Pub. L. 112–95, 

126 Stat. 62 (49 U.S.C. 44732 note). 

■ 2. Add new § 121.368 as follows: 

§ 121.368 Contract maintenance. 

(a) A certificate holder may arrange 

with another person for the performance 

of maintenance, preventive 

maintenance, and alterations as 

authorized in § 121.379(a) only if the 

certificate holder has met all the 

requirements in this section. For 

purposes of this section— 

(1) A maintenance provider is any 

person who performs maintenance, 

preventive maintenance, or an alteration 

for a certificate holder other than a 

person who is trained by and employed 

directly by that certificate holder. 

(2) Covered work means any of the 

following: 

(i) Essential maintenance that could 

result in a failure, malfunction, or defect 

endangering the safe operation of an 

aircraft if not performed properly or if 

improper parts or materials are used; 

(ii) Regularly scheduled maintenance; 

or 

(iii) A required inspection item on an 

aircraft. 

(3) Directly in charge means having 

responsibility for covered work 

performed by a maintenance provider. A 

representative of the certificate holder 

directly in charge of covered work does 

not need to physically observe and 

direct each maintenance provider 

constantly, but must be available for 

consultation on matters requiring 

instruction or decision. 

(b) Each certificate holder must be 

directly in charge of all covered work 

done for it by a maintenance provider. 

(c) Each maintenance provider must 

perform all covered work in accordance 

with the certificate holder’s 

maintenance manual. 

(d) No maintenance provider may 

perform covered work unless that work 

is carried out under the supervision and 

control of the certificate holder. 

(e) Each certificate holder who 

contracts for maintenance, preventive 

maintenance, or alterations must 

develop and implement policies, 

procedures, methods, and instructions 

for the accomplishment of all contracted 

maintenance, preventive maintenance, 

and alterations. These policies, 

procedures, methods, and instructions 

must provide for the maintenance, 

preventive maintenance, and alterations 

to be performed in accordance with the 

certificate holder’s maintenance 

program and maintenance manual. 

(f) Each certificate holder who 

contracts for maintenance, preventive 

maintenance, or alterations must ensure 

that its system for the continuing 

analysis and surveillance of the 

maintenance, preventive maintenance, 

and alterations carried out by the 

maintenance provider, as required by 

§ 121.373(a), contains procedures for 

oversight of all contracted covered 

work. 

(g) The policies, procedures, methods, 

and instructions required by paragraphs 

(e) and (f) of this section must be 

acceptable to the FAA and included in 

the certificate holder’s maintenance 

manual as required by§ 121.369(b)(10). 

(h) Each certificate holder who 

contracts for maintenance, preventive 

maintenance, or alterations must 

provide to its FAA Certificate Holding 

District Office, in a format acceptable to 

the FAA, a list that includes the name 

and physical (street) address, or 

addresses, where the work is carried out 

for each maintenance provider that 

performs work for the certificate holder, 

and a description of the type of 

maintenance, preventive maintenance, 

or alteration that is to be performed at 

each location. The list must be updated 

with any changes, including additions 

or deletions, and the updated list 

provided to the FAA in a format 

acceptable to the FAA by the last day of 

each calendar month. 

■ 3. Amend § 121.369 by adding 

paragraph (b)(10) as follows: 


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Federal Register / Vol. 80, No. 42 / Wednesday, March 4, 2015 / Rules and Regulations 11547 

§ 121.369 Manual requirements. 

* * * * * 

(b) * * * 

(10) Policies, procedures, methods, 

and instructions for the accomplishment 

of all maintenance, preventive 

maintenance, and alterations carried out 

by a maintenance provider. These 

policies, procedures, methods, and 

instructions must be acceptable to the 

FAA and provide for the maintenance, 

preventive maintenance, and alterations 

to be performed in accordance with the 

certificate holder’s maintenance 

program and maintenance manual. 

* * * * * 

PART 135—OPERATING 

REQUIREMENTS: COMMUTER AND 

ON DEMAND OPERATIONS AND 

RULES GOVERNING PERSONS ON 

BOARD SUCH AIRCRAFT 

■ 4. The authority citation for part 135 

continues to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g), 41706, 

40113, 44701–44702, 44705, 44709, 44711– 

44713, 44715–44717, 44722, 45101–45105. 

■ 5. Add new § 135.426 to read as 

follows: 

§ 135.426 Contract maintenance. 

(a) A certificate holder may arrange 

with another person for the performance 

of maintenance, preventive 

maintenance, and alterations as 

authorized in § 135.437(a) only if the 

certificate holder has met all the 

requirements in this section. For 

purposes of this section— 

(1) A maintenance provider is any 

person who performs maintenance, 

preventive maintenance, or an alteration 

for a certificate holder other than a 

person who is trained by and employed 

directly by that certificate holder. 

(2) Covered work means any of the 

following: 

(i) Essential maintenance that could 

result in a failure, malfunction, or defect 

endangering the safe operation of an 

aircraft if not performed properly or if 

improper parts or materials are used; 

(ii) Regularly scheduled maintenance; 

or 

(iii) A required inspection item on an 

aircraft. 

(3) Directly in charge means having 

responsibility for covered work 

performed by a maintenance provider. A 

representative of the certificate holder 

directly in charge of covered work does 

not need to physically observe and 

direct each maintenance provider 

constantly, but must be available for 

consultation on matters requiring 

instruction or decision. 

(b) Each certificate holder must be 

directly in charge of all covered work 

done for it by a maintenance provider. 

(c) Each maintenance provider must 

perform all covered work in accordance 

with the certificate holder’s 

maintenance manual. 

(d) No maintenance provider may 

perform covered work unless that work 

is carried out under the supervision and 

control of the certificate holder. 

(e) Each certificate holder who 

contracts for maintenance, preventive 

maintenance, or alterations must 

develop and implement policies, 

procedures, methods, and instructions 

for the accomplishment of all contracted 

maintenance, preventive maintenance, 

and alterations. These policies, 

procedures, methods, and instructions 

must provide for the maintenance, 

preventive maintenance, and alterations 

to be performed in accordance with the 

certificate holder’s maintenance 

program and maintenance manual. 

(f) Each certificate holder who 

contracts for maintenance, preventive 

maintenance, or alterations must ensure 

that its system for the continuing 

analysis and surveillance of the 

maintenance, preventive maintenance, 

and alterations carried out by a 

maintenance provider, as required by 

§ 135.431(a), contains procedures for 

oversight of all contracted covered 

work. 

(g) The policies, procedures, methods, 

and instructions required by paragraphs 

(e) and (f) of this section must be 

acceptable to the FAA and included in 

the certificate holder’s maintenance 

manual, as required by § 135.427(b)(10). 

(h) Each certificate holder who 

contracts for maintenance, preventive 

maintenance, or alterations must 

provide to its FAA Certificate Holding 

District Office, in a format acceptable to 

the FAA, a list that includes the name 

and physical (street) address, or 

addresses, where the work is carried out 

for each maintenance provider that 

performs work for the certificate holder, 

and a description of the type of 

maintenance, preventive maintenance, 

or alteration that is to be performed at 

each location. The list must be updated 

with any changes, including additions 

or deletions, and the updated list 

provided to the FAA in a format 

acceptable to the FAA by the last day of 

each calendar month. 

■ 6. Amend § 135.427 by adding 

paragraph (b)(10) as follows: 

§ 135.427 Manual requirements. 

* * * * * 

(b) * * * 

(10) Policies, procedures, methods, 

and instructions for the accomplishment 

of all maintenance, preventive 

maintenance, and alterations carried out 

by a maintenance provider. These 

policies, procedures, methods, and 

instructions must be acceptable to the 

FAA and ensure that, when followed by 

the maintenance provider, the 

maintenance, preventive maintenance, 

and alterations are performed in 

accordance with the certificate holder’s 

maintenance program and maintenance 

manual. 

* * * * * 

Issued under authority provided by 49 

U.S.C. 106(f), 44701(a), and 44703 in 

Washington, DC, on February 9, 2015. 

Michael P. Huerta, 

Administrator. 

[FR Doc. 2015–04179 Filed 3–3–15; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100 

[Docket No. USCG–2015–0056] 

Special Local Regulation; Southern 

California Annual Marine Events for 

the San Diego Captain of the Port Zone 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of enforcement of 

regulation. 

SUMMARY: The Coast Guard will enforce 

the special local regulations on the 

waters of Oceanside Harbor, California 

during the California Ironman Triathlon 

from 6:30 a.m. to 9:30 a.m. on March 28, 

2015. These special local regulations are 

necessary to provide for the safety of the 

participants, crew, spectators, sponsor 

vessels of the triathlon, and general 

users of the waterway. During the 

enforcement period, persons and vessels 

are prohibited from entering into, 

transiting through, or anchoring within 

this regulated area unless authorized by 

the Captain of the Port, or his 

designated representative. 

DATES: The regulations for the marine 

event listed in 33 CFR 100.1101, Table 

1, Item 2, will be enforced from 6:30 

a.m. to 9:30 p.m. on March 28, 2015. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this document, 

call or email Petty Officer Nick 

Bateman, Waterways Management, U.S. 

Coast Guard Sector San Diego, CA; 

telephone (619) 278–7656, email D11- 

PF-MarineEventsSanDiego@uscg.mil 

SUPPLEMENTARY INFORMATION: The Coast 

Guard will enforce the special local 


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