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Purpose of Document The intent of this document is to provide a detailed handover of all analysis and materials relating to regulatory gap studies on Safety.

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Presentation on theme: "Purpose of Document The intent of this document is to provide a detailed handover of all analysis and materials relating to regulatory gap studies on Safety."— Presentation transcript:

0 General Aviation Implementation Support (GAIS)
Booz & Company Beijing, 25 September 2009 General Aviation Implementation Support (GAIS) Safety Module (Revised) 1st Revision: October, 2010 Final Revision: October, 2011 This document is confidential and is intended solely for the use and information of the client to whom it is addressed.

1 Purpose of Document The intent of this document is to provide a detailed handover of all analysis and materials relating to regulatory gap studies on Safety Module as part of deliverables for General Aviation Implementation Support (GAIS) project funded by the US Trade Development Administration (USTDA) The study focuses on drawing general aviation (GA) regulatory experience and insights from the U.S. because: The U.S. has the most established and successful GA industry with a mature regulatory system that increases GA capacity and efficiency while maintaining safety ACP is an U.S. organization with its members consisting of FAA and key GA aircraft and equipment manufacturers with global presence. ACP member firms are best able to share GA regulatory, management, technological and operational experiences from the U.S. Analysis has been conducted and completed by Booz & Company with active contribution from Civil Aviation Administration of China (CAAC), Development Research Center of the State Council (DRC), Aviation Industry Corporation of China (AVIC), ACP members and other key stakeholders For further information please contact: Mr. Paul Fiduccia Mr. Frank Yu Mr. Kevin Wu Dr. Edward Tse Mr. Yang Guang Mr. Timothy Wong Booz & Company

2 This is one of the seven sets of deliverables developed for ACP GAIS project
ACP General Aviation Implementation Support (GAIS) List of Deliverables Executive Summary 1 2 3 4 5 6 Safety Module General Aviation Airport Module Airworthiness Module Flight Standards Module Operators Module GA Associations Module Main Module GA Safety Regulation GA Airport Regulations Airworthiness Regulations Flight Standards Regulations Regulatory Constraints for Operators Roles of GA Associations Safety Oversight Organizational Structure GA Airport Planning & Design Type and Production Certifications Mechanics GA Aircraft Ownership Case Studies Sub - Module Safety Performance Measurement GA Airport Funding Aircraft Registration and Certification Pilots GA Operating Cost Safety culture and promotion Booz & Company

3 In China, GA refers to all civil aircrafts activities other than public aircraft transportation activities NON EXHAUSTIVE Definition of General Aviation Three Main Categories of General Aviation Flight Activities* China: General Aviation refers to all civil aircrafts activities other than public aircraft transportation activities. Including flight operations associated with industrial, agricultural, forestry, fishery and construction, and other purpose operations such as medical and sanitation, emergency rescue, Meteorological sounding, ocean monitoring, scientific experiments, education and training, culture and sports etc. General Aviation Public Service Economic Construction Consumer Aviation Agriculture Aerial Photography Training and Sports Forestry Mine Exploration Tourism FAA: General aviation (GA) refers to all flights other than military and scheduled airline flights, both private and commercial. Meteorology Petroleum Services Business Travel Disaster Relief Others2 Private Use ICAO: General aviation comprises all aircraft that are not operated by commercial aviation or by the military. Others1 Non scheduled commercial operations3 (*) CAAC categorization (1) Others include aircraft seeding, pest control, farming and emergency rescue (2) Others include remote sensing, power line services and industrial associated applications (3) Non scheduled commercial operations include air taxi and air charter operations Source: Committee of General Aviation Specialist of China Aviation Industrial Base (CAIB), CAAC and Booz Allen analysis Booz & Company

4 Safety Module aims to identify regulatory improvement opportunities to increase GA efficiency and capacity while maintaining safety in China The main objective of the Safety Module is to conduct analysis on differences of overall general aviation regulatory system in the U.S. and China to identify opportunities to increase efficiency and capacity while maintaining GA safety The scope of the policy and regulatory difference analysis between the U.S. and China includes the following: GA safety regulation Safety oversight organizational structure Safety performance measurement Safety culture and promotion Booz & Company

5 Overall GA Policy and Regulatory System Difference
U.S. GA policy and regulatory system finds a balance between risk and regulatory resources while enabling GA development Overall GA Policy and Regulatory System Difference (Summary) Main GA categories General Aviation Non-scheduled Part 135 General Aviation Non-scheduled Part 135 Aerial Works Air taxi Commercial Instructional Non commercial Appropriate level of policy and regulations for different GA segments Corporate Private and business GA segments China has no separation of different GA segments as in the case of U.S. As compared to the U.S. China lacks appropriate regulations for private and recreational GA segments Business Personal Recreational Underdeveloped Private, Business and Transportation GA Segments Note: Business GA - Business purpose (non salaried pilot. Pilot is the manager) Corporate GA: Business purpose (professional, salaried pilots) Source: Booz & Company analysis Booz & Company

6 China (CAAC) Observations
Overall observations for policy and regulatory differences between U.S. and China for Module 1: Safety (1/2) Module 1: Safety Key Areas U.S. (FAA) Observations China (CAAC) Observations Recommendations GA Safety Regulations FAA establishes appropriate level of GA safety regulations based on risk level and cost for different GA segments (e.g. private, small commercial), at lower levels than large commercial airlines FAA formulates regulations that enable the growth (high capacity and efficiency) of general aviation while maintaining adequate safety China lacks appropriate level of regulatory requirements for general aviation segments to enable and encourage their growth China does not segment general aviation appropriately No separation of recreational/ personal/ business/ instructional/ corporate/ aerial work segments of GA, and same as airlines Revise policy and regulations (CCAR Part 21, 61, 65 and 91) to match risk level and regulatory cost for different segments of GA Define clearly regulatory requirements for non-scheduled commercial GA operation Safety Oversight Organizational Structure FAA’s General Aviation and Commercial Division is the key department responsible for GA regulation and policy related works within FAA and coordinates GA related regulatory development with other departments Different divisions are responsible for specific parts of GA matters (e.g. registration submission, airworthiness approval and operational standards) GA users have to liaise with multiple divisions which is resource consuming Consolidate the efforts for all GA policy and regulation related activities within CAAC Setup a “one-stop” GA customer service interface and initiative at headquarter and regional offices including website guidance Booz & Company

7 China (CAAC) Observations
Overall observations for policy and regulatory differences between U.S. and China for Module 1: Safety (2/2) Module 1: Safety Key Areas U.S. (FAA) Observations China (CAAC) Observations Recommendations Safety performance measurement FAA has established quantitative GA safety performance targets based on historical data To enable this FAA has an annual general aviation activity survey of all GA aircraft owners to determine aircraft usage levels and patterns To continually improve safety, GA accident/incident data is supplemented by a voluntary incident reporting system and other safety information sharing platforms The current CAAC GA safety goal is to avoid serious (fatal) accident which is not attainable; need to reform the performance targets for GA There is also lack of voluntary incident reporting (those not required under regulations) such as Aviation Safety Reporting System in the U.S. CAAC publishes annual GA accident/incident statistics but there is a lack of system approach for the design and conduct of GA flight activity survey More detailed GA flight activity related data not available in the public domain Review GA accident statistical data and set GA safety performance targets Enhance current accident/ reporting system to have sufficient data for cause analysis Establish a voluntary incident reporting system Design and formalize CAAC annual GA flight activity survey system Booz & Company

8 Executive summary GA Safety Regulation Safety oversight organizational structure Safety performance measurement Safety culture and promotion Appendix Booz & Company

9 We have identified differences in three areas which have impacted the effectiveness of current CAAC’s GA Safety Regulation Key Areas Key Differences Impact 1 China does not have regulatory system governing general aviation and private airport development and operation China does not segment general aviation appropriately China lacks of appropriate level of regulatory requirements for general aviation segment Onerous approval process for private GA airports (almost impossible) Over stringent requirements restrict recreational GA growth GA Safety Regulations Different divisions are responsible for specific parts of GA matters (e.g. registration submission, airworthiness approval and operational standards) GA users have to liaise with multiple divisions which is resource consuming Lack of efficiency and effectiveness GA users have to liaise with multiple divisions 2 Safety Oversight Organizational Structure 3 There is a lack of system approach for the design and conduct of GA flight activity survey GA safety performance metrics and targets not established More detailed GA flight activity related data not available in the public domain Without reliable field data, it is difficult to: Establish performance metrics and targets Design and implement effective safety improvement program Safety Performance Measurement Source: Booz & Company analysis Booz & Company

10 General Aviation (GA) Regulatory Objectives
1 GA Safety Regulation FAA general aviation safety regulatory system aims to increase capacity and efficiency while maintaining safety Principles Key Considerations General Aviation (GA) Regulatory Objectives Take into consideration risk tolerability of stakeholders Public’s Risk Tolerance Regulators’ Risk Tolerance Develop a regulatory system taking into consideration acceptable risk tolerability levels of stakeholders Increase GA capacity and efficiency Enable growth of all GA segments Continual improvement of GA safety Appropriate level of safety regulations Regulating to suit operational privileges Regulating to suit oversight capabilities/needs Establish appropriate level of GA safety regulations Safety must be quantified Risk measured in terms of likelihood and severity Requires the right data for validation Develop GA safety measurement system to continual improve safety Source: FAA, Booz & Company analysis Booz & Company

11 1 GA Safety Regulation FAA defines GA as all flights other than military and scheduled commercial but includes on demand commercial operations FAA’s Definitions and Scope of General Aviation “General Aviation” General Aviation Aerial Work Commercial Aviation FAA “Flights conducted by operators other than Title 14 of the Code of Federal Regulations (14 CFR) part 121 or part 135 certificate holders” On demand/Non-scheduled commercial operation as defined in part 135 and 119 “Aerial Work including Crop dusting, seeding, spraying, and bird chasing; Banner towing; Aerial photography or survey; Fire fighting; Helicopter operations in construction or repair work; and power line or pipeline patrol” (1) “Commercial purposes means the transportation of persons or property for compensation or hire, but does not include the operation of an aircraft by the armed forces for reimbursement when that reimbursement is required by any Federal statute, regulation, or directive” (2) FAA treats aerial work as part of general aviation though defines it separately On demand / Non-scheduled(3) On-demand operation means any operation for compensation or hire that is one of the following: (1) Passenger-carrying operations conducted as a public charter under part 380 of this title or any operations in which the departure time, departure location, and arrival location are specifically negotiated with the customer (2) Scheduled passenger-carrying operations conducted with one of the following types of aircraft with a frequency of operations of less than five round trips per week on at least one route between two or more points (3) All-cargo operations conducted with airplanes having a payload capacity of 7,500 pounds or less, or with rotorcraft 1) 14 CFR Part 119 2) 14 CFR Part 1 3) 14 CFR Part 119 Source: ICAO, FAA, Booz & Company analysis Booz & Company

12 1 GA Safety Regulation FAA groups together GA applications with similar operational characteristics and develops appropriate levels of regulations FAA groups “like things” together FAA General Aviation Regulatory Mapping General Aviation Non-scheduled Part 135 Recreational Personal Business Corporate Instructional Aerial Work Air-taxi Regulations Sports Balloons, kites Ultralight Parachute LSA Flying for personal reasons (e.g. visiting) Business purpose (non salaried pilot. Pilot is the manager) Business purpose (professional, salaried pilots) Flight training Rotorcraft external-load Agricultural On-demand/non-scheduled Airport Part 153 Airport Operation Airmen Part 60 Flight simulation training device initial and continuing qualification and use Part 61 Certification: pilots, flight instructors, and ground instructors Part 63 Certification: flight crewmembers other than pilots Part 65 Certification: airmen other than flight crewmembers Part 67 Medical standards and certification Operator Part 119 Certification: air carriers and commercial operators Part 129 Operations: foreign air carriers and foreign operators of U.S.-Registered aircraft engaged in common carriage Part 141 Pilot schools Part 142 Training centers Part 145 Repair stations Part 147 Aviation maintenance technician schools Operations Part 91 General operating and flight rules Part 101 Moored balloons, kites, unmanned rockets and unmanned free balloons Part 103 Ultralight vehicles Part 105 Parachute operations Part 125 Airplanes having a seating capacity of 20 or more passengers or maximum payload capacity of 6000 pounds or more Part 133 Rotorcraft external-load operation Part 137 Agricultural aircraft operation Part 135 Operating requirements: commuter and on demand operations and rules governing persons on board such aircraft Source: GAO, FAA, Booz & Company analysis Booz & Company

13 Commercial Operation under Part 135
GA Safety Regulation CAAC has similar structure and scope of GA Safety Regulation as compared with FAA but several differences are observed General Aviation Commercial Operation under Part 135 Non-commercial Commercial Regulation Non-public transport Aerial work in the fields of industry, agriculture, forestry, fishery and building industry Flight operations in the fields of medical and health work, emergency and disaster relief, meteorological service, ocean monitoring, scientific research and experiment, educational training and cultural and sports purposes Scheduled, non-scheduled and all-cargo flight with Single engine or rotorcraft Specifically Multi-engine non-scheduled flight with maximum weight load capacity less than 5700 kg Multi-engine scheduled flight with a seating capacity less than 30 and maximum weight load capacity less than 3400kg Multi-engine cargo flight with maximum weight load capacity less than 3400kg Airport Civil Airport Construction Regulation(CCAR-158) Civil Airport Special Facility Usage Regulation(CCAR-137 CA-R2) Civil Airport Usage Regulation(CCAR-139 CA-R1) Airmen Certification: Civil Aircraft pilot, flight instructor, ground instructor regulation(CCAR-61-R1) 《民用航空器领航员、飞行机械员、飞行通信员合格审定规则》(CCAR-63FS) 《民用航空器维修人员执照管理规则》(CCAR-66-R1) 《民用航空飞行签派员执照管理规则》(CCAR-65FS-R1) 《民用航空航行情报人员岗位培训管理规定》(CCAR-65TM-TV) 《民用航空航行情报员执照管理规则》(CCAR-65TM-III-R2)。 Operator CCAR 285 Non-commercial general aviation registration rules (非经营性通用航空登记管理规定) CCAR-135TR-R3 General aviation operation permit administrative rules (通用航空经营许可管理规定) 《民用航空器驾驶员学校合格审定规则》(CCAR-141) 《飞行训练中心合格审定规则》(CCAR-142) 《民用航空器维修单位合格审定规定》(CCAR-145) Operation CCAR 91 General operation and flight rules(一般运营和飞行规则) and specifically Section M: Agriculture and forestry operation (农林喷洒作业飞行) Section N: Rotorcraft external-load operation (旋翼机机外载荷作业飞行) Section O: Ultralight vehicle (超轻型飞行器) Section P: Parachute operation (跳伞) 飞机播种造林技术规程GB/T( )、1:5000 1: : : :100000比例尺地形图航空摄影规范GB/T ( )、民用航空器飞行事故等级 GB( )、航空摄影产品注记、包装规范GB/T (16176-1996)、通用航空机场设备设施GB/T ( )、航空摄影技术设计规范MH/T ( )、1:500 1:1000 1:2000比例尺地形图航空摄影规范GB ( )等 CCAR 91 General operation and flight rules(一般运营和飞行规则) CCAR 135 Commercial transportation operator certification and operating rules for small aircrafts (小型航空器商业运输运营人运行合格审定规章) No separation of recreational/personal/business/instructional/corporate/aerial work segments of GA Non-scheduled commercial operation under Part 135 is defined as general aviation by CAAC Booz & Company

14 Airspace is not part of the scope of this review
1 GA Safety Regulation As compared to the U.S. China lacks appropriate regulations for airport, private and recreational GA segments Airspace is not part of the scope of this review Differences of FAA and CAAC Regulatory System for General Aviation (High Level) Key Areas Observations Key Differences Airport CCAR 139 and 158 focus more on airports used for commercial airline operation There is a lack of appropriate level of regulations for general aviation airports (including temporary landing strips) to ensure safety while enabling its development No appropriate level of regulations for GA airports Airmen FAA set the certification requirements for airmen in Part 60, 61, 63, 65 and 67 CAAC has similar regulatory structure for airmen, also in CCAR-60, 61, 65, 67 and even more detailed for different types of airmen Very similar except that FAA has less stringent requirements for recreational GA Operator Depending on the purpose of GA (commercial or non-commercial), China sets different registration and administrative rules for commercial (CCAR-135TR-R3) and non-commercial (CCAR-285) GA operators CAAC and FAA has similar regulatory structure for domestic and foreign operator as well as other organization such as pilot school, training center, repair station and aviation maintenance technician schools China has more administrative rules in addition to operator related regulations Operation FAA applies different regulations to different types of GA operation e.g. part 91, part 101, part 103, part 105, Part 125, Part 133, Part 135 and Part 137 Regulation for moored balloons, kites, unmanned rockets and unmanned free balloons is under meteorological department and lack of regulations for light-sports aircrafts operation China does not have regulations specific to recreational GA operation Moored/ unmanned free balloons and kites not regulated by CAAC No regulations specific to operation of recreational aviation (LSC) Source: Booz & Company analysis Less differences More differences Booz & Company

15 2 Safety Oversight Organizational Structure Several AFS divisions and branches are responsible for general aviation regulations, policies and operational matters FAA Roles and Responsibilities of GA Related Divisions and Branches General Aviation & Commercial Division Aircraft Maintenance Division Regional Flight Standards Divisions Responsible for regulations and policy recommendations governing the certification, inspection, and surveillance of: GA airmen training and testing DPEs GA air agencies (pilot schools) commercial operations (rotorcraft external load, agricultural, part 125 operators, part 91, corporate, business, personal and recreational, subpart K fractional ownership) and public aircraft operations This department is Principal for general aviation regulation and policy Responsible for regulations and national policy governing the certification, inspection, and surveillance of the maintenance aspects of: GA air carrier and commercial operators airmen (mechanics, repairmen, designees, parachute riggers) Avionics air agencies (Aviation Maintenance Technician Schools (AMTS), and repair stations) and maintenance requirements, performance standards, and practices applied to ensure the airworthiness of civil aircraft General Aviation Branch is the principal element in the division for all general aviation maintenance as related to technical training, regulations, policies, and procedures Responsible for Flight Standards matters, airmen, operators, and airworthiness matters. The division is under the executive direction of the Director, Flight Standards Service The Flight Standards District Offices (FSDO) are field elements of the Flight Standards Service with the following responsibilities: Certification and surveillance of: air operators, air agencies, and airmen Conduct or assist in conducting accident and incident investigations and investigate possible violations of regulations Ensure the adequacy of flight procedures, operating methods, airmen qualifications and proficiency, and aircraft maintenance Focus on regulations and policies development and recommendations Focus on certification and surveillance (operational level) Note: GA type and production approval matters are handled by Aircraft Certification Services (AIR), separate from Aviation Safety (AFS) Please refer to the appendix for more details of the roles and responsibilities of selected AFS divisions and branches Source: FAA, Booz & Company analysis Booz & Company

16 Responsibility of General Aviation and Commercial Division
2 Safety Oversight Organizational Structure General Aviation and Commercial Division is the key department for regulation and policy recommendation within GA FAA Responsibility of General Aviation and Commercial Division Responsible for regulations and policy recommendations governing the certification, inspection, and surveillance of general aviation airmen, DPEs, general aviation air agencies (pilot schools), commercial operations (rotorcraft external load, agricultural, part 125 operators, part 91, corporate, business, personal and recreational, subpart K fractional ownership) and public aircraft operations. With respect to the foregoing, the division: Develops and recommends national policies, standards, systems, procedures, and program plans to include international operation activities. Determines the need for, justifies, and formulates new or amended regulations and supplementary regulatory material; participates in regulatory review programs; recommends grants or denials of exemptions; and develops Operation Specifications. Advises the Director, Associate Administrator, and other principal officials, and serves as a central point of contact for the public and the aviation community on matters appropriate to the national level. Participates in the analysis and evaluation of field execution of programs. Determines the need for, and recommends research and development projects. Guides and assists the other divisions, the regions, and other elements of the agency in the implementation and conduct of related programs, and provides guidance on applying agency policies, standards, and procedures pertaining to safety issues. Develops, coordinates, and issues national directives to provide technical guidance on policies and procedures. Recommends, initiates, and coordinates regulatory and policy actions to resolve safety problems resulting from accidents, incidents, or other sources. Provides liaison between FAA and other offices for general aviation issues regarding airspace rules, air carrier interface, pilot certification, human factors, and other vital topics. Facilitates and coordinates concerns of the aviation community to assure general aviation views are considered in air traffic rules and aviation safety regulatory actions. Develops, coordinates, and recommends career development programs to ensure organizational competence for employees of this division Source: FAA Order FS B, Flight Standard Organizational Handbook, Booz & Company analysis Booz & Company

17 GA related responsibilities
2 Safety Oversight Organizational Structure The diffusion of roles and responsibilities of CAAC divisions reduces the effectiveness and efficiency of GA regulatory services CAAC CAAC Divisions GA related responsibilities Issues Planning and Development Final approvals of aircraft certification and registration Current CAAC organization structure and governance does not support longer term institutional capability and capacity building for GA No single division accountable and responsible for GA regulations and development Lack of synergy in terms of leveraging expertise and resources The diffusion of roles and responsibilities also hinders provisions of effective and efficient services to GA users: Currently only registration management is delegated to CAAC regional offices, other activities are still centralized at HQ Multi divisional involvement cause confusion and inefficiency in the provision of services to GA users Users have to liaise with different divisions on different matters which is very resource consuming and frustrating GA users may choose not to follow strict regulatory compliance requirements to avoid the onerous and resource consuming approval process Processing of aircraft registration and airworthiness certification (initial airworthiness) Airworthiness Certification Parts and components certification Operational regulations and standards Flight Standards Transportation The marketing department is responsible for the registration of commercial and non-commercial GA operator Source: Expert Interviews, Booz & Company analysis Booz & Company

18 2 Safety Oversight Organizational Structure We recommend a staged approach to organizational improvement to continually enhance the provisions of GA regulatory oversight CONCEPTUAL Proposed Staged Approach to CAAC Organizational Improvements that Enhance the Effectiveness and Efficiency of GA Regulatory Oversight System Consolidate policy and regulation functions Establish work and coordination processes Improve provisions of Regulatory Services Organizational setup that enables provision of improved GA regulatory oversight Consolidate all policy and regulation review and development functions within CAAC Set up a department to spearhead, lead and coordinate cross divisional GA policy and regulatory related activities Appoint key contact points within relevant divisions (e.g. Policy & Regulation, Air Transportation and Flight Standards) Establish processes to clearly define roles and responsibilities, communication mechanism (internal and external) and work flows for both HQ and regional offices Implement a “one-stop service” or reduce the amount of service interfaces at both HQ and regional levels Develop and publish guidance materials to clarify regulatory requirements and ensure consistency Institutionalize internal system and processes to: Capture industry, stakeholders needs to develop appropriate regulations of GA Ensure best utilization of resources and expertise Ensure knowledge sharing across the whole organization May consider setting up one single division dealing with GA matters (similar to FAA) when appropriate Ultimate Goal Booz & Company

19 CAAC must prioritize these improvement needs
3 Safety Performance Measurement Current CAAC’s GA flight activity data collection and GA safety performance measurement systems are not well established CAAC Observations Observation GA Activity Survey Flight hour statistics published in Statistical Data on Civil Aviation of China No structured survey mechanism in place GA Accident/incident Reporting Accident/ incident reporting system established Appropriate regulations and orders are in place GA Safety Targets No definite target is set Only mention “prevent GA major accident” in annual CAAC safety work plan GA Accident/ incident Investigation Accident/ incident investigation system established Appropriate regulations and orders are in place GA Accident/ incident Statistics Established and data published in Statistical Data on Civil Aviation of China Data set not as comprehensive as FAA, need prioritize “fatal accident” Lack of breakdown by segments Aviation Safety Information System Post accident/incident information sharing system in place Lack of voluntary incident reporting (those not required under regulations) such as Aviation Safety Reporting System in the U.S. CAAC must prioritize these improvement needs Less established More established Source: Booz & Company analysis Booz & Company

20 3 Safety Performance Measurement FAA works with GA community to develop rate-based safety performance metric derived from historical operational data FAA Key Principles to Develop GA Safety Performance Metric FAA Safety Targets Unit of measure: Number of fatal accidents per 100,000 flight hours Formula: Number of general aviation fatal accidents Number of GA flight hours/ 100,000 Scope of measure: GA flights On-demand (non-scheduled FAR Part 135) FY 2009 Performance Target Limit the general aviation fatal accident rate to no more than 1.11 fatal accidents per 100,000 flight hours Work with GA community to ensure reasonability and practicality FAA worked with GA community (e.g. AOPA, GAMA) to develop GA safety targets This ensures targets set are realistic Transit from absolute to rate-based metric Rate-based metric (e.g. number of fatal accidents per 100,000 hour operation) are used in favor of the total number of accidents The rate based performance measure reflect fleet activity levels and its relationship to the number of fatal accidents Establish baseline from historical operational and safety statistics FAA set performance target baseline based on safety data from May 2005 through April 2008 (3 years period) This includes on-demand (non-scheduled FAR Part 135) and GA flights Source: FAA, Booz & Company analysis Booz & Company

21 (Number of accidents per 100,000 flight hours)
3 Safety Performance Measurement Accident data and statistics provide a reference baseline for FAA to establish realistic safety performance targets for general aviation FAA Accidents per 100,000 flight hours Accident Trends of General Aviation and Non-Scheduled Part 135 Operation (Number of accidents per 100,000 flight hours) Historical Low 2008 All accident (GA) 7.11 6.34 6.31 5.67 All accident (combined*) All accident (non scheduled Part 135)All accident (non scheduled Part 135) 1.52 1.39 1.25 1.16 Fatal accident (GA) 1.15 1.08 Fatal accident (combined*) Fatal accident (non scheduled Part 135)Fatal accident (non scheduled Part 135) 0.52 0.27 (*) Combined = General Aviation + non scheduled Part 135 operation Note: All accidents = fatal + non fatal accidents NTSB accident rates includes both fixed wing and rotary wing aircraft Source: NTSB, Booz & Company analysis Booz & Company

22 3 Safety Performance Measurement Robust flight activity and accident/incident data collection systems are pre-requisites to build safety performance database FAA GA Flight Activity Data GA Accident/ Incident Data General Aviation and Part 135 Activity Surveys Accident Reporting and Investigation NTSB Part 830 FAA B The survey was first implemented in 1978 It provides the (FAA) with information on general aviation and on-demand Part 135 aircraft activity The information obtained from the survey enables FAA to monitor the general aviation fleet so that it can: Anticipate and meet demand for National Airspace System facilities and services Evaluate the impact of safety initiatives and regulatory changes Build more accurate measures of the safety of the general aviation community NTSB Part 830 Notification and reporting of aircraft accidents or incidents and overdue aircraft, and preservation of aircraft wreckage, mail, cargo, and records It provides guidance on the notification and reporting of aviation incidents and accidents comes from the National Transportation Safety Board (NTSB) 49 CFR Part 830, commonly known as "NTSB 830" It governs actions concerning these events, as well as overdue aircraft FAA B prescribes FAA procedure and responsibilities for aircraft accident and incident notification, investigation and reporting It provides direction and guidance to aviation safety inspectors when they are called upon to perform accident investigations It also delineates the responsibilities of the FAA and the National Transportation Safety Board when conducting investigations The order is also used as a training guide for teaching accident investigation courses at the Transportation Safety Institute Source: FAA, NTSB, Booz & Company analysis Booz & Company

23 3 Safety Performance Measurement FAA’s Annual general aviation activity survey helps establish fleet size and the hours flown by the general aviation community FAA Conducted annually by the FAA Statistics and Forecast Branch The FAA has contracted independent research firm, to implement the survey Standard survey forms and on line surveys are conducted Close collaboration with the FAA, other federal agencies and aviation groups and associations Survey Contents Frequency Overall aircraft activity Under which FAR part (e.g. 121, 129 etc.) In which states the aircraft mainly flown Total flight hours (including how many hours in Alaska) % of hours flown for the following purposes: General use (personal, instructional, business, air medical, aerial sight seeing and etc.) FAR Part 135 (Air taxi, air tours, air medical services, commuter) % hours flown under fractional ownership program % hours flown with the aircraft rented or leased to others % hours flown with the aircraft hired by the governments % hours flown under VFR, IFR and no flight plans Was the aircraft certified and maintained to operate under IFR # of landings Fuel Type, grade and fuel burn rate (gallon per hours) List of installed avionics equipment installed Based on a statistically selected sample of aircraft, covering approximately 83% of related aircraft in the Civil Aviation Registry (2007) It includes aircraft registered with the FAA and operating in the US or US territories under Part 91, Part 125, Part 133, Part 135 on demand air taxi and commuter operations not covered by Part 121 and Part 137 agricultural aircraft operation Survey population The survey sample is stratified by: aircraft type FAA region in which the aircraft is registered whether the aircraft operates under a Part 135 certificate and whether the aircraft was manufactured in the past 5 years Survey sample Source: FAA, Booz & Company analysis Booz & Company

24 3 Safety Performance Measurement US. federal regulations require operators to notify the NTSB immediately of aviation accidents and certain incidents FAA NTSB Part 830 Requirements on Accident/ Incident Reporting Initial Notification Preservation of Aircraft Wreckage, Mail, Cargo, and Records Reporting of Aircraft Accidents, Incidents, and Overdue Aircraft The operator of an aircraft shall provide immediate notification to the nearest NTSB’s field office for an aircraft accident, and any of the following listed incidents occur: Flight control system malfunction or failure Inability of any required flight crewmember to perform normal flight duties as a result of injury or illness; Failure of structural components of a turbine engine excluding compressor and turbine blades and vanes; In-flight fire; or Aircraft collide in flight Damage to property, other than the aircraft, estimated to exceed $25,000 for repair (including materials and labor) or fair market value in the event of total loss, whichever is less The operator of an aircraft shall be responsible for preserving to the extent possible any aircraft wreckage, cargo, and mail aboard the aircraft, and all records, including all recording mediums of flight, maintenance, and voice recorders, pertaining to the operation and maintenance of the aircraft and to the airmen until the NTSB Board takes custody thereof or a release is granted The operator of a civil public or foreign aircraft shall file a report on NTSB Form within 10 days after an accident, or after 7 days if an overdue aircraft is still missing Each crewmember, if physically able at the time the report is submitted, shall attach a statement setting forth the facts, conditions, and circumstances relating to the accident or incident as they appear to him. If the crewmember is incapacitated, he shall submit the statement as soon as he is physically able The operator of an aircraft shall file any report with the field office of the NTSB nearest the accident or incident Note: The National Transportation Safety Board (NTSB) is an independent U.S. Federal agency that investigates every civil aviation accident in the United States Source: NTSB Part 830, Booz & Company analysis Booz & Company

25 3 Safety Performance Measurement CAAC publishes annual GA accident/incident statistics but does not establish performance targets for GA CAAC GA Safety Statistics Published in the Annual Statistical Data on Civil Aviation of China Discussion Category Unit 2006 2007 Accident # of Times 1 Death Toll # of People Accident per 10K Hours 0.042 NA Accident per 10K times 0.025 Incident 8 5 Incident per 10K Hours 0.34 0.18 Incident per 10K times 0.20 0.11 CAAC published GA safety performance level at its annual Statistical Data on Civil Aviation of China CAAC has set broad objectives for its annual safety plan (those published in the public domain) CAAC has set a rate of incident for commercial aviation of not exceeding 0.6 per 10,000 flight hours CAAC does not publish an official safety performance target for general aviation sector CAAC only mentioned “prevent general aviation major accident” CAAC needs to set quantitative GA safety targets to guide identification and implementation of strategic initiatives to achieve set targets Safety Target of 2009 CAAC www.caac.gov.cn ( ) Prevent serious public transport accident; prevent skyjacking, blowing-up, remove the causes for air force accident; prevent serious GA accident; Prevent serious ground accident and major aircraft maintenance accident; the incident rate of public transport is less than 0.6 per 10,000 hours Source: CAAC, Annual Statistical Data on Civil Aviation of China, Booz & Company analysis Booz & Company

26 3 Safety Performance Measurement CAAC can further improve GA survey mechanism and data needs to better establish operational detailed of different GA segment CAAC GA Activity Reporting Example Eastern China Civil Aviation Administration Regulation on Civil Aviation Statistics CCAR 241-R1 Management of Civil Aviation Statistics Section 10: Civil aviation statistical survey is divided into General Statistical Survey, Organizational Survey and Specialized Survey. General statistical survey refers to the development status of China civil aviation and to be conducted by CAAC and related departments and reported to Statistical Bureau of China Section 11: General Statistical Survey includes aviation safety, output, service quality, fixed investment, human resources, financial and other information. The survey is to be developed by CAAC in accordance with Appendix 1 Civil Aviation General Statistical Survey Reporting Structure Civil Aviation General Statistical Survey Reporting Structure includes statistic tables related to industrial, agricultural and other GA related flight hours CAAC Regional Aviation Administration Period: Monthly Commercial GA operators under CCAR 135 TR-R3 Non-commercial GA Operators under CCAR 285 Aerial Work Type Industrial Agricultural Training Others Number of Flight Hours of Flight The survey mechanism and more in depth granularity of data requirements should be developed Basic statistical data needs Source: CCAR 241-R1, Interviews, Booz & Company analysis Booz & Company

27 3 Safety Performance Measurement CAAC has already established more stringent accident and incident reporting requirement than FAA Initial Notification of Aircraft Accidents and Incidents Report to nearest NTSB office Report CAAC or Regional Aviation Administration Accident An aircraft accident - (including GA accident) All flight accident - immediate to CAAC and regional aviation administration (including GA) All ground aviation accident - immediate to regional aviation administration (including GA) Incident Flight control system malfunction or failure; Inability of any required flight crewmember to perform normal flight duties as a result of injury or illness; Failure of structural components of a turbine engine excluding compressor and turbine blades and vanes; In-flight fire; or Aircraft collide in flight. Damage to property, other than the aircraft, estimated to exceed $25,000 for repair (including materials and labor) or fair market value in the event of total loss, whichever is less. (including GA) All incident - immediate to regional aviation administration (including GA) Regulations NTSB Part 830 CCAR-395-R1 CAAC has more stringent incident reporting requirements than FAA Source: Civil Aviation Safety Information Management Regulation, 14 CFR 830, Booz & Company analysis Booz & Company

28 3 Safety Performance Measurement CAAC should further develop and enhance aviation safety information management to disseminate lessons learned more effectively Regulation on Aviation Safety Information Management System Discussion China’s Aviation Safety Management Information System (ASMIS) is intent on collecting, reporting and managing aviation data, however, ASR helps more to establish a sharing platform and focus on the missing part of safety management and investigation China’s aviation safety information management system is not open to the public but a selected subscriber e.g. regional aviation administration, GA operators China’s aviation safety information system is run by CAAC, and ASRS is run by NASA - an independent third-party which separate the authorization and ASR and aviation safety information system are different and not at the same developing stage due to its purpose and causes CCAR 396 Regulations on Civil Aviation Safety Information Management (Effective from Apr.7th, 2005) Article 5 The Civil Aviation Safety Information System refers to the computer network system that collect, report and manage civil aviation information Article 8 CAAC is in charge of establishing civil aviation safety information system to share civil aviation safety information Article 9 CAAC encourage and support the relevant technical research on collection, report and analysis of civil aviation safety information, and CAAC will praise and reward the individuals / organizations that make significant contribution to civil aviation safety information management Article 16 It should use the most appropriate and quick channel to report civil aviation safety information; the initial and final report should be reported via civil aviation safety information system, and other channels are also applicable if the system is not available Feedback from interviews: ASMIS is not accessible and operational yet Source: CCAR-396, Booz & Company analysis Booz & Company

29 Safety Culture and Promotion
CAAC can leverage four main factors that can best influence safety culture of GA industry to promote GA safety in China Booz & Company Analysis Main Influential Aspects of Organization Safety Culture Safety Management Tool Approach Voluntary and Collaborative Approach Institutionalize an effective safety reporting system Encourages safety incident reporting Defines clear accountability and responsibilities Enables flexibility and information sharing and learning Voluntary industry stakeholder participation to improve safety Programs and initiatives to help GA companies develop A safety culture that holds safety as a core value Safety Culture Cultivate safety investigation culture to improve system reliability Learn about system vulnerability; Develop strategies for change; and Prioritize investment of safety resources Government and Industry Partnership to improve safety Develop joint workgroup to spearhead safety improvement initiatives Encourage information and lessons learned sharing Booz & Company

30 Recommendations We recommend seven initiatives that will improve the effectiveness and efficiency of the current regulatory system while maintaining GA safety Key Areas Key Recommendations Expected Benefits 1 1.1 Review regulations (CCAR Part 21, 61, 65 and 91) to establish appropriate rules for LSA Review and define clearly regulatory requirements for non-scheduled commercial GA operation Stimulate more recreational GA and non scheduled GA flight activities GA Safety Regulation 1.2 2 Safety Oversight Organizational Structure 2.1 Streamline current GA roles and responsibilities across various CAAC divisions on regulation Setup a “one-stop” GA customer service interface and initiative Facilitate CAAC internal GA institutional capability and capacity building Improve service efficiency 2.2 3 3.1 Design and formalize CAAC annual GA flight activity survey system Review GA accident statistical data and set GA safety performance targets Enhance current accident/ reporting system (data need); Establish safety targets Design and develop a robust accident/ incident reporting and information sharing system Standardize definitions and improve accuracy of data collected Set objective safety targets to enable formulation of effective safety improvement strategy Safety Performance Measurement 3.2 3.3 Source: Booz & Company analysis Booz & Company

31 Recommendations Initiative (1.1) Review regulations to establish appropriate rules for LSA Initiative (1.1) Regulatory Review for LSA Initiative Key Objectives Review regulations (CCAR Part 21,43, 61, 65 and 91) to establish appropriate rules for recreational GA to make flying more accessible Identify regulatory changes required to make recreational GA more accessible and affordable for public Achieve better regulation of recreational GA to ensure safety while not restricting their growth Task 1: Certification of LSA Aircraft Task 2: Certification of LSA pilots and flight instructors Task 3: Certification of Repairman Review current CAAC Special Airworthiness category Compare with FAA’s practice Make provisions for LSA: Airworthiness certification and classification Duration of validity of certification Eligibility for issue of LSA airworthiness certification Certification requirements for kit built aircraft Review CCAR Part 61 and 65 Review requirement for certificates, ratings, and authorizations Medical certificates: Requirement and duration Type rating requirements, additional training, and authorization requirement Examination and test requirements Logbook requirements Operation limitation Review CCAR Part 43 Identify possible exemptions of LSC from part 43 maintenance performance standards and recording requirements Review how owners can be allowed to maintain LSC aircraft The recording requirements Stakeholders to be Consulted Expected Benefits Next Steps/Follow-up FAA LSA equipment suppliers Flying clubs ACP More appropriate regulations for recreational GA to ensure safety while not restricting their growth Easier and cheaper to fly for public Set up CAAC internal Rule Review Workgroup Draft detailed scope and work plan Booz & Company

32 Recommendations Initiative (1.2) Review regulations to establish appropriate rules for non scheduled commercial GA Initiative (1.2) Regulatory Review for Non Scheduled Commercial GA Initiative Key Objectives Review and define clearly regulatory requirements for non-scheduled commercial GA operation To better define non-scheduled commercial GA so as to develop more appropriate level of regulatory requirements to promote growth while safeguarding safety Task 1: Define non-scheduled operation Task 2: Conduct Regulatory Reviews Task 3: Collect Industry Feedback Refer to FAA definition in Part 119 and 135 Review current CCAR definitions and gaps Provide formal definition of non-scheduled commercial operation (including air taxi operation) Set up regulatory committee to review necessary provisions in affected CCAR regulations (e.g. CCAR 91, 135) Issue the proposed changes and seek comments from stakeholders Stakeholders to be Consulted Expected Benefits Next Steps/Follow-up GA industry stakeholders Clear definition Appropriate level of regulatory requirements to promote non-scheduled commercial GA Set up steering committees/work groups for each task Draft detailed scope and work plan Booz & Company

33 Recommendations Initiative (2.1) Streamline current GA roles and responsibilities across various CAAC divisions Initiative (2.1) Streamline current GA roles and responsibilities across various CAAC divisions Initiative Key Objectives Streamline current GA roles and responsibilities across various CAAC divisions Identify organizational improvement opportunities to streamline roles and responsibilities of various visions to enable longer term institutional capability and capacity building Task 1: Organizational Review Task 2: Identify Key Contacts Nil Review current CAAC organizational set up for providing GA oversight: Regulations and policies Operational issues Consolidate policy and regulation functions in one department Identify any overlaps of roles and responsibilities Identify key contacts within different divisions Define clearly roles and responsibilities Develop cross divisional communication, coordination and liaison mechanism and processes Nil Stakeholders to be Consulted Expected Benefits Next Steps/Follow-up CAAC internal divisions/ departments Streamlined organization structure that enables the building of institutional capability and capacities Setup up cross divisional work group to streamline the GA roles and responsibilities Booz & Company

34 Recommendations Initiative (2.2) Setup a “one-stop” GA customer service interface and initiative Initiative (2.2) Setup a “one-stop” GA customer service interface and initiative Initiative Key Objectives Setup a “one-stop” GA customer service interface and initiative improve the effectiveness and efficiency of services provided for GA users Provide clear and ambiguous guidance to ensure compliance of regulations Task 1: Customer Interface Setup Task 2: Formulate SOP Task 3: Produce Guidance Materials Differentiate GA related matters that should be handled at HQ and regional levels Work with Regional CAAC to set up customer interface point to handle GA related matters (approval, registration, certification etc.) at various regions Formulate internal Standards Operating Procedure (SOP) to guide internal and external communications Produce guidance materials (e.g. info pack) for users with regard to submission requirements, processes and approval duration Stakeholders to be Consulted Expected Benefits Next Steps/Follow-up CAAC internal divisions/ departments (HQ and regional) Improved service efficiency Setup up cross divisional work group to streamline the GA roles and responsibilities Booz & Company

35 Recommendations Initiative (3.1) Design and formalize CAAC annual GA flight activity survey system Initiative (3.1) Design and formalize CAAC annual GA flight activity survey system Initiative Key Objectives Design and formalize CAAC annual GA flight activity survey system Implement a systematic and structured approach towards GA flight activity information collection system to support formulation of effective strategies to improve GA safety while encouraging growth Task 1: Survey Information and Data Task 2: Design Survey Form Task 3: Test Survey Implementation Standardize definitions Confirm survey purposes Work with the GA communities to identify data and information required for the survey Design standard survey form Gather feedback from GA communities and make appropriate changes Conduct pilot test Identify gaps, if any Analyze survey data and prepare sample reports and charts Stakeholders to be Consulted Expected Benefits Next Steps/Follow-up CAAC HQ and regional offices GA communities More accurate data More extensive data and information Set up a working group to spearhead this initiative Booz & Company

36 Recommendations Initiative (3.2) Review GA accident statistical data and set GA safety performance targets Initiative (3.2) Review GA accident statistical data and set GA safety performance targets Initiative Key Objectives Review GA accident statistical data and set GA safety performance targets Enhance current accident/ reporting system (data need); Establish GA safety performance targets Task 1: GA Accident/ Incident Reporting system Task 2: GA Safety Performance Targets Task 3: GA Safety Information Sharing Review current GA accident/ incident reporting system to: Ensure adequate granularity of data and breakdowns Ensure close match of information/ data requested with GA Flight Activity Survey (see Initiative 3.1) Review CAAC’s past statistical data Review accident/ incident data in other countries (e.g. U.S, Canada and Australia) to benchmark targets Set safety performance targets Synthesize and publish more comprehensive GA safety performance statistics e.g.,: By aircraft type By applications (agriculture, private , etc.) By operating rules (Part 91 etc.) By flight phases Others Stakeholders to be Consulted Expected Benefits Next Steps/Follow-up GA communities CAAC Standardize definitions and improve accuracy of data collected Set safety targets to enable formulation of effective safety improvement strategy Set up a working group to spearhead this initiative Booz & Company

37 Recommendations Initiative (3.3) Design and develop a robust voluntary accident/ incident reporting and information sharing system Initiative (3.3) Design and develop a robust accident/ incident reporting and information sharing system Initiative Key Objectives Design and develop a robust accident/ incident reporting and information sharing system Develop a robust accident/incident reporting and information sharing system Establish a database and library for historical accidents and incidents Task 1: Design Information System Task 2: Promote this System Task 3: Establish Accident Library Refer to aviation information sharing system of the U.S. Identify the key features of information system Design the information sharing system Promote the information system to relative organizations and individuals Provide guidance on how to use this system to these organizations and individuals Refer to FAA accident library Analyze historical aviation accident and incident Establish accident library Stakeholders to be Consulted Expected Benefits Next Steps/Follow-up CAAC General aviation stakeholders Airmen including pilots Provide a database and library for aviation accidents/incidents Provide the raw data for the analysis and safety training Set up a working group to spearhead this initiative Booz & Company

38 Executive summary GA Safety Regulation Safety oversight organizational structure Safety performance measurement Safety culture and promotion Appendix Booz & Company

39 General Aviation (GA) Regulatory Objectives
FAA general aviation safety regulatory system aims to increase capacity and efficiency while maintaining safety Principles Key Considerations General Aviation (GA) Regulatory Objectives Take into consideration risk tolerability of stakeholders Public’s Risk Tolerance Regulators’ Risk Tolerance Develop a regulatory system taking into consideration acceptable risk tolerability levels of stakeholders Increase GA capacity and efficiency Enable growth of all GA segments Continual improvement of GA safety Appropriate level of safety regulations Regulating to suit operational privileges Regulating to suit oversight capabilities/needs Establish appropriate level of GA safety regulations Safety must be quantified Risk measured in terms of likelihood and severity Requires the right data for validation Develop GA safety measurement system to continual improve safety Source: FAA, Booz & Company analysis Booz & Company

40 FAA defines GA as all flights other than military and scheduled commercial but includes on demand commercial operations FAA’s Definitions and Scope of General Aviation “General Aviation” General Aviation Aerial Work Commercial Aviation FAA “Flights conducted by operators other than Title 14 of the Code of Federal Regulations (14 CFR) part 121 or part 135 certificate holders” On demand/Non-scheduled commercial operation as defined in part 135 and 119 “Aerial Work including Crop dusting, seeding, spraying, and bird chasing; Banner towing; Aerial photography or survey; Fire fighting; Helicopter operations in construction or repair work; and power line or pipeline patrol” (1) “Commercial purposes means the transportation of persons or property for compensation or hire, but does not include the operation of an aircraft by the armed forces for reimbursement when that reimbursement is required by any Federal statute, regulation, or directive” (2) FAA treats aerial work as part of general aviation though defines it separately On demand / Non-scheduled(3) On-demand operation means any operation for compensation or hire that is one of the following: (1) Passenger-carrying operations conducted as a public charter under part 380 of this title or any operations in which the departure time, departure location, and arrival location are specifically negotiated with the customer (2) Scheduled passenger-carrying operations conducted with one of the following types of aircraft with a frequency of operations of less than five round trips per week on at least one route between two or more points (3) All-cargo operations conducted with airplanes having a payload capacity of 7,500 pounds or less, or with rotorcraft 1) 14 CFR Part 119 2) 14 CFR Part 1 3) 14 CFR Part 119 Source: ICAO, FAA, Booz & Company analysis Booz & Company

41 FAA groups together GA applications with similar operational characteristics and develops appropriate levels of regulations FAA groups “like things” together FAA General Aviation Regulatory Mapping General Aviation Non-scheduled Part 135 Recreational Personal Business Corporate Instructional Aerial Work Air-taxi Regulations Sports Balloons, kites Ultralight Parachute LSA Flying for personal reasons (e.g. visiting) Business purpose (non salaried pilot. Pilot is the manager) Business purpose (professional, salaried pilots) Flight training Rotorcraft external-load Agricultural On-demand/non-scheduled Airport Part 153 Airport Operation Airmen Part 60 Flight simulation training device initial and continuing qualification and use Part 61 Certification: pilots, flight instructors, and ground instructors Part 63 Certification: flight crewmembers other than pilots Part 65 Certification: airmen other than flight crewmembers Part 67 Medical standards and certification Operator Part 119 Certification: air carriers and commercial operators Part 129 Operations: foreign air carriers and foreign operators of U.S.-Registered aircraft engaged in common carriage Part 141 Pilot schools Part 142 Training centers Part 145 Repair stations Part 147 Aviation maintenance technician schools Operations Part 91 General operating and flight rules Part 101 Moored balloons, kites, unmanned rockets and unmanned free balloons Part 103 Ultralight vehicles Part 105 Parachute operations Part 125 Airplanes having a seating capacity of 20 or more passengers or maximum payload capacity of 6000 pounds or more Part 133 Rotorcraft external-load operation Part 137 Agricultural aircraft operation Part 135 Operating requirements: commuter and on demand operations and rules governing persons on board such aircraft Source: GAO, FAA, Booz & Company analysis Booz & Company

42 Three case studies illustrate why and how FAA has developed appropriate level of regulations for different GA segments 1 2 3 Private, Small Commercial and Large Commercial Operation Light Sport Aircraft Operation Unmanned Aerial Vehicle (UAV) Operation Booz & Company

43 1 Private, Small Commercial and Large Commercial Operation As an example for general aviation operation FAA has three tiers of aviation oversight conducted under three primary regulations Three Tiers of Aviation Oversight Conducted under Three Primary Regulations Private (General) Aviation (Part 91) This group comprises of individuals or private businesses that usually fly smaller aircraft that are not for hire These operators have the least restrictive regulations and receive the least FAA oversight This group operates smaller aircraft that are configured for 30 passengers or less or under 7,500 pounds of payload or rotorcraft While operators in this group receive more oversight than those in the private aviation group, they do not receive the level of oversight that FAA provides for large, commercial air carriers Small Commercial Aviation: on demand (Part 119, 135) Large Commercial Aviation (Part 121) These carriers operate larger aircraft with primarily scheduled flights. They have the most stringent regulations and receive the most FAA oversight. Source: FAA Report AV , Booz & Company analysis Booz & Company

44 1 Private, Small Commercial and Large Commercial Operation Level of control and responsibility over airworthiness and operation of the aircraft is the main factor driving regulatory differences ... FAA Objectives Regulation Rationale for Commercial Operation To establish the appropriate level of regulatory oversight to ensure safe aircraft operations Airline passengers exercise no control over and bear no responsibility for the airworthiness or operation of the aircraft on which they are passengers The air carrier exercises control of the operation and bears responsibility for compliance with the regulations Because the air carrier is a commercial enterprise in the business of air transportation for the public, the FAA imposes on the air carrier stringent regulations and oversight under part 121 or part 135, as appropriate Regulation Rationale for individual/Corporate Operation Aircraft owners flying aboard aircraft they own or lease exercise full control over and bear full responsibility for the airworthiness and operation of their aircraft Under these circumstances, the FAA has determined that the appropriate level of oversight is provided by the regulations in part 91, which are generally less stringent than those of part 121 or part 135 Part 91 regulations cover what is commonly called general aviation, which includes individual pilot/owner operations and corporate owner operations Booz & Company

45 1 Private, Small Commercial and Large Commercial Operation … with different levels of regulatory requirements for aircraft, operation, and airmen for both commercial and private operations EXAMPLE Regulatory Differences Between Parts 135 and 121 Subjects Part 135 (<30 seats) Part 121 Pilot Duty/Rest Maximum Yearly Flight Hours 1400 1000 Maximum Flight Hours in 24-Hr. period 10 hours 8 hours Personnel Requirements Minimum Pilot Experience/Hours 500 hours and commercial license 1,500 hours and Air Transport license Crew Resource Management Training Not Required Required FAA-Licensed Dispatcher Maintenance Aging Airplane - Operator Supplemental Inspections Not Required for all Operators Aging Airplane - FAA Inspection and Records Review Maintenance Program that includes required inspection items and continuous analysis and surveillance system Aircraft Flight Instruments Terrain Awareness and Warning System Traffic Alert & Collision Avoidance System Cockpit Voice/Data Recorders In-Flight Weather Radar Note: Depending on the size and type of aircraft used, FAA regulations for on-demand operations can be more or less restrictive. This table contains the least restrictive regulations for on-demand aircraft for each subject. Source: FAA Report AV , Booz & Company analysis Booz & Company

46 Key Features of Subpart K in Part 91
Private, Small Commercial and Large Commercial Operation FAA also establishes standards for fractional ownership operation which has some element of commercial operation management services Fractional Ownership operation is unique as it straddles between private and commercial operations… … therefore more appropriate safety standards are required Key Features of Subpart K in Part 91 It establishes the criteria for qualifying as a fractional ownership program It establishes that fractional owners and the management company share operational control of the aircraft and delineates operational control responsibilities It establishes regulatory safety standards for operations under fractional ownership programs, including management operations, maintenance, training, crewmember flight and duty requirements, and other Fractional ownership programs have some of the elements of traditional management services companies, but because of the size and complexity of today’s fractional ownership programs, the part 91 rules are not adequate The part 121 and part 135 rules are not appropriate either because those rules are directed at air carriers and other entities that hold themselves out to provide transportation to the general public New Subpart K of 14 CFR Part 91 clarifies what qualifies as a fractional ownership program, clarifies who has operational control, defines operational control responsibilities, codifies many of the ‘‘best practices’’ now being used voluntarily in fractional ownership programs, and incorporates many of the safety standards of part 121 and part 135 By this rulemaking, the FAA establishes safety standards to maintain the safety record of current fractional ownership programs and to ensure that new fractional ownership programs will also meet a high level of safety Source: FAA Report, Booz & Company analysis Booz & Company

47 What is Light Sport Aircraft? What were the problems faced?
2 Light Sport Aircraft Operation Another example is light sport aircraft segment where users faced many problems to 2004 due to the lack of appropriate regulations What is Light Sport Aircraft? What were the problems faced? The FAA has defined light-sport aircraft as simple-to-operate, easy-to-fly aircraft that, since initial certification, has continued to meet the performance definition illustrated in the diagram below Before the implementation of LSA rules in there was lack of appropriate regulations for existing light sport aircraft Light sport aircraft does not fall under the regulation of 14CFR Part 103 Ultralight Vehicles as their weights exceed ultralight category Requirements under 14CFR Part 21, 61, 65 and 91 for certification, pilot, airmen and operation were too expensive and cumbersome for very light, inexpensive light sport aircraft There was lack of standardization to allow industry to grow and prosper beyond historic levels No design and performance standard No production standard No quality assurance standard No maintenance or inspection standard Source: EAA, Booz & Company analysis Booz & Company

48 2 Light Sport Aircraft Operation FAA then published LSA rules and amended regulations to increase safety while not increasing burdens for users Purpose of This Sport Pilot and Light Sport (SP/LSA) Rule Impact of the Implementation of SP/LSA Rules Close the gaps in existing regulations Increase safety in the LSA by closing the gaps in existing regulations and by accommodating new advances in technology Provide for the manufacture of light-sport aircraft that are safe for their intended operations by establishing standards Allow operation of light-sport aircraft exceeding the limits of ultralight vehicles operated under 14 CFR part 103, with a passenger and for flight training, rental, and towing More than 2,000 individuals have earned sport pilot certificates and numerous others have earned sport pilot privileges Individuals can fly light sport aircraft with a valid driver's license in lieu of a medical certificate and creates new, less-expensive ways to become a pilot Aircraft manufacturers have developed more than 90 new designs, and more than 800 factory-built special light-sport aircraft (SLSA) are recognized under the LSA rule Many designs offer advanced safety features, including devices such as whole-plane emergency parachute systems, airbags, and single-button avionics that can automatically stabilize the aircraft Establish training and certification requirements The rule has provisions for obtaining sport pilot student certificates, sport pilot certificates, flight instructor certificates with sport pilot rating, airworthiness criteria, and repairmen certificates with an inspector and/or maintenance rating Sport Pilot - Now You Can! Affordable, achievable and fun. Sport Pilot is for you! Note: EAA = Experimental Aircraft Association Source: FAA Aviation News Jul/Aug 2009, EAA, Booz & Company analysis Booz & Company

49 Expected Level of Safety for Light Sport Aircraft
2 Light Sport Aircraft Operation LSA rules raises the safety level via consensus standards on a previously unregulated segment of aviation Expected Level of Safety for Light Sport Aircraft Level of Certitude High Discussion Type certificate Production certificate The expected level of safety of an LSA is not the same as Part 23 certificated products, nor is the level of FAA oversight the same LSA Rule raises the level of safety (via Consensus Standards) on a previously unregulated segment of aviation Bridges gap between Ultralights and Part 23. Raise the level of safety, but still not expected to meet Part 23 There are two classes of LSA airworthiness certificates, Special (SLSA) and Experimental (ELSA) SLSA: aircraft manufactured to consensus standards and delivered in a “ready-to-fly” condition ELSA: aircraft assembled from a manufacturer’s “kit” that meets a consensus standard; or an SLSA aircraft converted to ELSA Part 23 Consensus standard Statement of compliance Special Light-sport Kit-Built Light-sport “Fat” Ultralight Amateur Built No design standards No manufacturing standards Part 103 103 Training Exemption Low Source: FAA, Booz & Company analysis Booz & Company

50 2 Light Sport Aircraft Operation The LSA industry’s use of industry consensus standards allows rapid design changes and for quicker incorporation of changes resulting from safety findings Industry chose ASTM International to facilitate the development of standards for LSA. ASTM established the F37 Committee on Light-Sport Aircraft in 2004 The Committee revises existing standards or develops new ones in response to demand, regulatory requirements, or ASTM protocols Several FAA employees participate on the committee in the standards development process, but FAA has only one official voter The FAA accepts, not approves the standards The FAA does not have veto authority of the standards content or requirements ASTM standards are not regulations. However, SLSA are required to be manufactured in accordance with the accepted consensus standard That means that the SLSA manufacturer must monitor and correct safety-of-flight issues through the issuance of safety directives. The manufacturer must also have a continued airworthiness system that meets the identified consensus standard The owner or operator of an SLSA must comply with each safety directive applicable to the aircraft, unless he or she uses an acceptable alternative means of compliance or obtains an FAA waiver from the provisions of the safety directive. Source: FAA Aviation News Jul/Aug 2009, Booz & Company analysis Booz & Company

51 3 Unmanned Aerial Vehicle (UAV) Operation Unmanned Aerial Vehicle (UAV) has demonstrated successful usage in several GA areas in recent years in the U.S. EXAMPLE Unmanned Aerial Vehicle (UAV) Operation Remote Sensing This function include electromagnetic spectrum sensors, biological sensors, and chemical sensors. A UAV's electromagnetic sensors typically include visual spectrum, infrared, or near infrared cameras as well as radar systems UAVs can transport goods using various means based on the configuration of the UAV itself. Most payloads are stored in an internal payload bay somewhere in the airframe. For many helicopter configurations, external payloads can be tethered to the bottom of the airframe. With fixed wing UAVs, payloads can also be attached to the airframe Transport Unmanned aircraft are uniquely capable of penetrating areas which may be too dangerous for piloted craft E.g. The National Oceanic and Atmospheric Administration (NOAA) began utilizing the Aerosonde unmanned aircraft system in 2006 as a hurricane hunter Scientific Research Search and Rescue The US will likely to increase usage of UAV in this function since it was demonstrated successful during the 2008 hurricanes that struck Louisiana and Texas Source: Booz & Company analysis Booz & Company

52 Although there are many ways to classify UAV…
3 Unmanned Aerial Vehicle (UAV) Operation Although there are many ways to classify UAV… UAV Classifications UAV by Function UAV by Range / Altitude Other Categorization Target and decoy - providing ground and aerial gunnery a target that simulates an enemy aircraft or missile Reconnaissance - providing battlefield intelligence Combat - providing attack capability for high-risk missions Logistics - specifically designed for cargo and logistics operation R&D - used to further develop UAV technologies to be integrated into field deployed UAV aircraft Civil and Commercial UAVs - UAVs specifically designed for civil and commercial applications Handheld 2,000 ft altitude, about 2 km range Close 5,000 ft altitude, up to 10 km range NATO type 10,000 ft altitude, up to 50 km range Tactical 18,000 ft altitude, about 160 km range MALE (medium altitude, long endurance) up to 30,000 ft and range over 200 km HALE (high altitude, long endurance) over 30,000 ft and indefinite range HYPERSONIC high-speed, supersonic (Mach 1-5) or hypersonic (Mach 5+) 50,000 ft (15,200 m) or suborbital altitude, range over 200km ORBITAL low earth orbit (Mach 25+) CIS Lunar Earth-Moon transfer By fixed routes vs. dynamically variable routes By U.S. military “Tier System” Source: Booz & Company analysis Booz & Company

53 3 Unmanned Aerial Vehicle (UAV) Operation … FAA regulates UAV in three distinctive areas - a public aircraft, a civil aircraft and a model Public Aircraft (operated by the government or the military) When the military or a government agency wants to fly a UAS in civil airspace, the FAA evaluates the request and issues a Certificate of Authorization (COA) Civil Aircraft Civil aircraft must operate under experimental airworthiness certificates Model Aircraft FAA Advisory Circular provide guidelines for operation of model aircraft Such aircraft may only be used for sport, and not for commercial or business purposes Source: AvWeb, FAA Booz & Company

54 FAA Recent Initiatives on UAV / UAS (Unmanned Aircraft System)
3 Unmanned Aerial Vehicle (UAV) Operation For the FAA, it is critical that UAVs don’t come too close to aircraft carrying people or compromise the safety of anyone on the ground FAA Recent Initiatives on UAV / UAS (Unmanned Aircraft System) At FAA Headquarters in Washington, D.C., a team of experts from various parts of the agency is working on guidance that will increase the level of access to airspace for UAS in a step-by-step fashion without being overly restrictive in the early stages Developing and implementing this new UAS guidance is a long-term effort and is still a “work in progress.” More immediately, the FAA is reviewing certification requests from several UAS manufacturers. The FAA has issued 13 airworthiness certificates in the “experimental” category (for research and development, crew training, or market survey) to date. These certification efforts provide an excellent opportunity for the FAA to work with manufacturers and to collect vital technical and operational data that will help improve the UAS airworthiness certification process. The FAA has asked RTCA — a group that frequently advises the agency on technical issues — to help develop UAS standards. RTCA will answer two key questions:  How will UASs handle communication, command, and control, and how will they detect and avoid other aircraft? The FAA continues to work closely with its international counterparts to harmonize standards, policies, procedures, and regulatory requirements Source: FAA Booz & Company

55 Better Regulation for General Aviation
1 2 3 Summary The above examples illustrate two key principles to achieve better regulation of general aviation: Proportionality and Participation ILLUSTRATIVE Principles of General Aviation Regulations Better Regulation for General Aviation + = Proportionality Participation Level of regulation appropriate and proportionate to risk General aviation well informed of risk justify lower level of regulation Target regulation to bring greater safety benefits Active participation of stakeholders in regulation formulation Bringing regulation closer to stakeholders makes them more responsible Voluntary action by industry in safety related activities Regulations that enable the growth (capacity and efficiency) of general aviation while maintaining safety and security Coordinated private activities supporting safety Source: Booz & Company analysis Booz & Company

56 China has put in place a regulatory system to regulate general aviation industry and operation
Regulatory System Applicable to General Aviation in China State Law Administrative Regulations Civil Aviation Rules Aerial Work Standard Civil Aviation Law of the People's Republic of China, issued at Mar. 1st, 1996 Define what is general aviation, “aerial work” segments for GA and the conditions for GA activities Provisional Regulations of the State Council on the Administration of General Aviation Regulations of the State Council and Central Military Committee on Aircraft Usage on Professional Service Regulations of the State Council and Central Military Committee on General Aviation Flight Control Economic management (5) Safety operations (11) Operational approval (2) Professional authority / institution approval (3) License and certifications (6) Others (10) National standards (6) Industrial standards (10) Note: Number in parentheses above, e.g. (2) , (3) denotes the number of the applicable regulations Source: CAAC, Booz & Company analysis Booz & Company

57 Commercial Operation under Part 135
CAAC has similar structure and scope of GA Safety Regulation as compared with FAA but several differences are observed General Aviation Commercial Operation under Part 135 Non-commercial Commercial Regulation Non-public transport Aerial work in the fields of industry, agriculture, forestry, fishery and building industry Flight operations in the fields of medical and health work, emergency and disaster relief, meteorological service, ocean monitoring, scientific research and experiment, educational training and cultural and sports purposes Scheduled, non-scheduled and all-cargo flight with Single engine or rotorcraft Specifically Multi-engine non-scheduled flight with maximum weight load capacity less than 5700 kg Multi-engine scheduled flight with a seating capacity less than 30 and maximum weight load capacity less than 3400kg Multi-engine cargo flight with maximum weight load capacity less than 3400kg Airport Civil Airport Construction Regulation(CCAR-158) Civil Airport Special Facility Usage Regulation(CCAR-137 CA-R2) Civil Airport Usage Regulation(CCAR-139 CA-R1) Airmen Certification: Civil Aircraft pilot, flight instructor, ground instructor regulation(CCAR-61-R1) 《民用航空器领航员、飞行机械员、飞行通信员合格审定规则》(CCAR-63FS) 《民用航空器维修人员执照管理规则》(CCAR-66-R1) 《民用航空飞行签派员执照管理规则》(CCAR-65FS-R1) 《民用航空航行情报人员岗位培训管理规定》(CCAR-65TM-TV) 《民用航空航行情报员执照管理规则》(CCAR-65TM-III-R2)。 Operator CCAR 285 Non-commercial general aviation registration rules (非经营性通用航空登记管理规定) CCAR-135TR-R3 General aviation operation permit administrative rules (通用航空经营许可管理规定) 《民用航空器驾驶员学校合格审定规则》(CCAR-141) 《飞行训练中心合格审定规则》(CCAR-142) 《民用航空器维修单位合格审定规定》(CCAR-145) Operation CCAR 91 General operation and flight rules(一般运营和飞行规则) and specifically Section M: Agriculture and forestry operation (农林喷洒作业飞行) Section N: Rotorcraft external-load operation (旋翼机机外载荷作业飞行) Section O: Ultralight vehicle (超轻型飞行器) Section P: Parachute operation (跳伞) 飞机播种造林技术规程GB/T( )、1:5000 1: : : :100000比例尺地形图航空摄影规范GB/T ( )、民用航空器飞行事故等级 GB( )、航空摄影产品注记、包装规范GB/T (16176-1996)、通用航空机场设备设施GB/T ( )、航空摄影技术设计规范MH/T ( )、1:500 1:1000 1:2000比例尺地形图航空摄影规范GB ( )等 CCAR 91 General operation and flight rules(一般运营和飞行规则) CCAR 135 Commercial transportation operator certification and operating rules for small aircrafts (小型航空器商业运输运营人运行合格审定规章) No separation of recreational/personal/business/instructional/corporate/aerial work segments of GA Non-scheduled commercial operation under Part 135 is defined as general aviation by CAAC Booz & Company

58 Airspace is not part of the scope of this review
However as compared to the U.S. China lacks appropriate regulations for airport and non aerial work GA segments Differences of FAA and CAAC Regulatory System for General Aviation (High Level) Airspace is not part of the scope of this review Key Areas Observations Key Differences Airport CCAR 139 and 158 focus more on airports used for commercial airline operation There is a lack of appropriate level of regulations for general aviation airports (including temporary landing strips) to ensure safety while enabling its development No appropriate level of regulations for GA airports Airmen FAA set the certification requirements for airmen in Part 60, 61, 63, 65 and 67 CAAC has similar regulatory structure for airmen, also in CCAR-60, 61, 65, 67 and even more detailed for different types of airmen Very similar except that FAA has less stringent requirements for recreational GA Operator Depending on the purpose of GA (commercial or non-commercial), China sets different registration and administrative rules for commercial (CCAR-135TR-R3) and non-commercial (CCAR-285) GA operators CAAC and FAA has similar regulatory structure for domestic and foreign operator as well as other organization such as pilot school, training center, repair station and aviation maintenance technician schools China has more administrative rules in addition to operator related regulations Operation FAA applies different regulations to different types of GA operation e.g. part 91, part 101, part 103, part 105, Part 125, Part 133, Part 135 and Part 137 Regulation for moored balloons, kites, unmanned rockets and unmanned free balloons is under meteorological department and lack of regulations for light-sports aircrafts operation China does not have regulations specific to recreational GA operation Moored/ unmanned free balloons and kites not regulated by CAAC No regulations specific to operation of recreational aviation (LSC) Source: Booz & Company analysis Less differences More differences Booz & Company

59 Executive summary GA Safety Regulation Safety oversight organizational structure Safety performance measurement Safety culture and promotion Appendix Booz & Company

60 FAA Flight Standards Service (AFS) under Aviation Safety Service assumes key responsibilities for providing oversight of GA in the U.S. FAA FAA Organizational Structure (Simplified) Administrator AOA Deputy Administrator ADA Associate Administrator for Airport ARP Assistant Administrator for Regions and Center Operation ARC Associate Administrator for Aviation Safety AVS Associate Administrator for Commercial Space Transportation AST Other 10 Offices Office of Accident Investigation (AAI) Aircraft Certification Services (AIR) Office of Rule Making (ARM) Flight Standards Service (AFS) Aviation Safety Analytical Service (ASA) Office of Air Traffic Oversight (AOV) Federal Air Surgeon (AAM) Quality, Integration and Executive Service (AQS) General Aviation & Commercial Division Aircraft Maintenance Division Civil Aviation Registry Regional Flight Standards Divisions Flight Standard Certification & Surveillance Regional Divisions Flight Technologies & Procedures Divisions Regulatory Support Division Certification & General Aviation Branch General Aviation Branch Airmen Registration Flight Standard District Offices Plans & Programs Program Management and Information Branch Aircraft Registration Certificate Management Offices Special Programs Branch Services (Director level) Divisions (Manager level) Branches Offices (Associate Administrator level) Divisions/ branches responsible for general aviation matters Repair Station Branch Branch Avionic Branch Source: FAA, Booz & Company analysis Booz & Company

61 Several AFS divisions and branches are responsible for general aviation regulations, policies and operational matters FAA Roles and Responsibilities of GA Related Divisions and Branches General Aviation & Commercial Division Aircraft Maintenance Division Regional Flight Standards Divisions Responsible for regulations and policy recommendations governing the certification, inspection, and surveillance of: GA airmen training and testing DPEs GA air agencies (pilot schools) commercial operations (rotorcraft external load, agricultural, part 125 operators, part 91, corporate, business, personal and recreational, subpart K fractional ownership) and public aircraft operations This department is Principal for general aviation regulation and policy Responsible for regulations and national policy governing the certification, inspection, and surveillance of the maintenance aspects of: GA air carrier and commercial operators airmen (mechanics, repairmen, designees, parachute riggers) Avionics air agencies (Aviation Maintenance Technician Schools (AMTS), and repair stations) and maintenance requirements, performance standards, and practices applied to ensure the airworthiness of civil aircraft General Aviation Branch is the principal element in the division for all general aviation maintenance as related to technical training, regulations, policies, and procedures Responsible for Flight Standards matters, airmen, operators, and airworthiness matters. The division is under the executive direction of the Director, Flight Standards Service The Flight Standards District Offices (FSDO) are field elements of the Flight Standards Service with the following responsibilities: Certification and surveillance of: air operators, air agencies, and airmen Conduct or assist in conducting accident and incident investigations and investigate possible violations of regulations Ensure the adequacy of flight procedures, operating methods, airmen qualifications and proficiency, and aircraft maintenance Focus on regulations and policies development and recommendations Focus on certification and surveillance (operational level) Note: GA type and production approval matters are handled by Aircraft Certification Services (AIR), separate from Aviation Safety (AFS) Please refer to the appendix for more details of the roles and responsibilities of selected AFS divisions and branches Source: FAA, Booz & Company analysis Booz & Company

62 Responsibility of General Aviation and Commercial Division
General Aviation and Commercial Division is the key department for regulation and policy recommendation within GA FAA Responsibility of General Aviation and Commercial Division Responsible for regulations and policy recommendations governing the certification, inspection, and surveillance of general aviation airmen, DPEs, general aviation air agencies (pilot schools), commercial operations (rotorcraft external load, agricultural, part 125 operators, part 91, corporate, business, personal and recreational, subpart K fractional ownership) and public aircraft operations. With respect to the foregoing, the division: Develops and recommends national policies, standards, systems, procedures, and program plans to include international operation activities. Determines the need for, justifies, and formulates new or amended regulations and supplementary regulatory material; participates in regulatory review programs; recommends grants or denials of exemptions; and develops Operation Specifications. Advises the Director, Associate Administrator, and other principal officials, and serves as a central point of contact for the public and the aviation community on matters appropriate to the national level. Participates in the analysis and evaluation of field execution of programs. Determines the need for, and recommends research and development projects. Guides and assists the other divisions, the regions, and other elements of the agency in the implementation and conduct of related programs, and provides guidance on applying agency policies, standards, and procedures pertaining to safety issues. Develops, coordinates, and issues national directives to provide technical guidance on policies and procedures. Recommends, initiates, and coordinates regulatory and policy actions to resolve safety problems resulting from accidents, incidents, or other sources. Provides liaison between FAA and other offices for general aviation issues regarding airspace rules, air carrier interface, pilot certification, human factors, and other vital topics. Facilitates and coordinates concerns of the aviation community to assure general aviation views are considered in air traffic rules and aviation safety regulatory actions. Develops, coordinates, and recommends career development programs to ensure organizational competence for employees of this division Source: FAA Order FS B, Flight Standard Organizational Handbook, Booz & Company analysis Booz & Company

63 GA related responsibilities
The diffusion of roles and responsibilities of CAAC divisions reduces the effectiveness and efficiency of GA regulatory services CAAC CAAC Divisions GA related responsibilities Issues Planning and Development Final approvals of aircraft certification and registration Current CAAC organization structure and governance does not support longer term institutional capability and capacity building for GA No single division accountable and responsible for GA regulations and development Lack of synergy in terms of leveraging expertise and resources The diffusion of roles and responsibilities also hinders provisions of effective and efficient services to GA users: Currently only registration management is delegated to CAAC regional offices, other activities are still centralized at HQ Multi divisional involvement cause confusion and inefficiency in the provision of services to GA users Users have to liaise with different divisions on different matters which is very resource consuming and frustrating GA users may choose not to follow strict regulatory compliance requirements to avoid the onerous and resource consuming approval process Processing of aircraft registration and airworthiness certification (initial airworthiness) Airworthiness Certification Parts and components certification Operational regulations and standards Flight Standards Transportation The marketing department is responsible for the registration of commercial and non-commercial GA operator Source: Expert Interviews, Booz & Company analysis Booz & Company

64 We recommend a staged approach to organizational improvement to continually enhance the provisions of GA regulatory oversight CONCEPTUAL Proposed Staged Approach to CAAC Organizational Improvements that Enhance the Effectiveness and Efficiency of GA Regulatory Oversight System Consolidate policy and regulation functions Establish work and coordination processes Improve provisions of Regulatory Services Organizational setup that enables provision of improved GA regulatory oversight Consolidate all policy and regulation review and development functions within CAAC Set up a department to spearhead, lead and coordinate cross divisional GA policy and regulatory related activities Appoint key contact points within relevant divisions (e.g. Policy & Regulation, Air Transportation and Flight Standards) Establish processes to clearly define roles and responsibilities, communication mechanism (internal and external) and work flows for both HQ and regional offices Implement a “one-stop service” or reduce the amount of service interfaces at both HQ and regional levels Develop and publish guidance materials to clarify regulatory requirements and ensure consistency Institutionalize internal system and processes to: Capture industry, stakeholders needs to develop appropriate regulations of GA Ensure best utilization of resources and expertise Ensure knowledge sharing across the whole organization May consider setting up one single division dealing with GA matters (similar to FAA) when appropriate Ultimate Goal Booz & Company

65 Executive summary GA Safety Regulation Safety oversight organizational structure Safety performance measurement Safety culture and promotion Appendix Booz & Company

66 GA has lower safety performance level than commercial airlines due to inherent risks associated with its operational characteristics Reasons of Higher Accident Rates of General Aviation Variety of mission Greater variety of facilities and level of equipage Wide range of operations and applications Some operations such as aerial applications have inherent mission-related risks Many GA facilities such as airports are not as well equipped as large commercial airline airports There are also heliports and seaplane bases different from conventional airports General aviation has higher accident rates than airlines Variability of pilot certification and experience More takeoffs and landings GA is the training ground for pilot Experience of pilot varies a lot GA conducts many more takeoffs and landings than airline carriers on a per hour basis Aircraft is prone to accidents during takeoffs and landings than in other phases of flight Limited cockpit resources and flight support Less weather tolerant aircraft Usually a single pilot conducts operation The pilot typically handles all aspects of the flight from flight planning to piloting Most GA aircraft can not fly over or around weather the way airliners can They often do not have the systems to avoid or cope with hazardous weather conditions such as ice Source: AOPA Nall Report 2008, Booz & Company analysis Booz & Company

67 Average “All Accident” Rate (1985 - 2008)
, This is evident from the historical aviation data collected in the U.S. with general aviation recorded much higher accident rate Accidents per 100,000 flight hours Historical Aviation Data of General Aviation and Commercial Aviation Operation (Number of accidents per 100,000 flight hours) Average “All Accident” Rate ( ) General Aviation 7.71 per 100,000 flight hours Commercial Airlines 0.23 per 100,000 flight hours All accident (GA) All accident (Scheduled under Part 135) Fatal accident (GA) All accident (Commercial Airline under Part 121) Fatal accident (Commercial Airline under Part 121) Fatal accident (Scheduled under Part 135) Note: All accidents = fatal + non fatal accidents Source: NTSB, Booz & Company analysis Booz & Company

68 Pursuing GA safety improvement is a critical element of FAA 5-years Flight Plan and annual Aviation Safety (AVS) business plan FAA Strategic and Business Planning Process FAA Flight Plan (5 Year Plan) Increased Safety Aviation Safety (AVS) Annual Business Plan A five year plan aims to provide a strategic direction for the FAA and its organizations It covers four goal areas/ objectives: Increased Safety Greater Capacity International Leadership Organizational Excellence Under each objective, the Flight Plan then lists strategies, initiatives, and specific, measurable performance targets The Flight Plan goal area of Increased Safety consists of seven specific objectives: Reduce commercial air carrier fatal accident rate. Reduce general aviation fatal accident rate Reduce accidents in Alaska Reduce the risk of runway incursions Implement a Safety Management System (SMS) for the FAA Ensure the safety of commercial space launch Reduce operational errors It has numerous discrete activities in support of initiatives under five of these seven objectives and in support of initiatives under two non-Flight Plan, core business objectives: Flight Plan Initiatives: Reduce commercial air carrier fatal accident rate. Reduce general aviation fatal accident rate. Reduce accidents in Alaska Non-Flight Plan, Core Business Initiatives: Commercial Aviation General Aviation Booz & Company

69 Non Flight Plan, Core Business
FAA AVS sets safety targets for general aviation and non scheduled Part 135 operation in its business plan FAA GA Safety Targets Flight Plan Target Non Flight Plan, Core Business General Aviation Accidents Reduce the fatal accident rate per 100,000 flight hours by 10% over a 10-year period ( ) FY 2009 Target: 1.11 By FY 2009, reduce the number of general aviation and non scheduled Part 135 fatal accidents to no more than 319 (from 385, which represents the average number of fatal accidents for the baseline period of ) FY 2008 Target: 325 Alaska Accidents By the end of FY 2009, reduce accidents in Alaska for general aviation and all Part 135 operations from the average of 130 accidents per year to no more than 99 accidents per year This measure will be converted from a number to a rate at the beginning of FY 2010 FY 2009 Target: 99 accidents By FY 2009 reduce accidents in Alaska for general aviation and all Part 135 operations from the average of 130 accidents per year to no more than 99 accidents per year FY 2008 Target: 104 Source: FAA, Booz & Company analysis Booz & Company

70 AVS works with GA community to develop rate-based safety performance metric derived from historical operational data Key Principles to Develop GA Safety Performance Metric FAA Safety Targets Unit of measure: Number of fatal accidents per 100,000 flight hours Formula: Number of general aviation fatal accidents Number of GA flight hours/ 100,000 Scope of measure: GA flights On-demand (non-scheduled FAR Part 135) FY 2009 Performance Target Limit the general aviation fatal accident rate to no more than 1.11 fatal accidents per 100,000 flight hours Work with GA community to ensure reasonability and practicality FAA worked with GA community (e.g. AOPA, GAMA) to develop GA safety targets This ensures targets set are realistic Transit from absolute to rate-based metric Rate-based metric (e.g. number of fatal accidents per 100,000 hour operation) are used in favor of the total number of accidents The rate based performance measure reflect fleet activity levels and its relationship to the number of fatal accidents Establish baseline from historical operational and safety statistics FAA set performance target baseline based on safety data from May 2005 through April 2008 (3 years period) This includes on-demand (non-scheduled FAR Part 135) and GA flights Source: FAA, Booz & Company analysis Booz & Company

71 (Number of accidents per 100,000 flight hours)
Accident data and statistics provide a reference baseline for FAA to establish realistic safety performance targets for general aviation Accidents per 100,000 flight hours Accident Trends of General Aviation and Non-Scheduled Part 135 Operation (Number of accidents per 100,000 flight hours) Historical Low 2008 All accident (GA) 7.11 6.34 6.31 5.67 All accident (combined*) All accident (non scheduled Part 135)All accident (non scheduled Part 135) 1.52 1.39 1.25 1.16 Fatal accident (GA) 1.15 1.08 Fatal accident (combined*) Fatal accident (non scheduled Part 135)Fatal accident (non scheduled Part 135) 0.52 0.27 (*) Combined = General Aviation + non scheduled Part 135 operation Note: All accidents = fatal + non fatal accidents NTSB accident rates includes both fixed wing and rotary wing aircraft Source: NTSB, Booz & Company analysis Booz & Company

72 CAAC publishes annual GA accident/incident statistics but does not establish performance targets for GA GA Safety Statistics Published in the Annual Statistical Data on Civil Aviation of China Discussion Category Unit 2006 2007 Accident # of Times 1 Death Toll # of People Accident per 10K Hours 0.042 NA Accident per 10K times 0.025 Incident 8 5 Incident per 10K Hours 0.34 0.18 Incident per 10K times 0.20 0.11 CAAC published GA safety performance level at its annual Statistical Data on Civil Aviation of China CAAC has set broad objectives for its annual safety plan (those published in the public domain) CAAC has set a rate of incident for commercial aviation of not exceeding 0.6 per 10,000 flight hours CAAC does not publish an official safety performance target for general aviation sector CAAC only mentioned “prevent general aviation major accident” CAAC needs to set quantitative GA safety targets to guide identification and implementation of strategic initiatives to achieve set targets Safety Target of 2009 CAAC www.caac.gov.cn ( ) Prevent serious public transport accident; prevent skyjacking, blowing-up, remove the causes for air force accident; prevent serious GA accident; Prevent serious ground accident and major aircraft maintenance accident; the incident rate of public transport is less than 0.6 per 10,000 hours Source: CAAC, Annual Statistical Data on Civil Aviation of China, Booz & Company analysis Booz & Company

73 Robust flight activity and accident/incident data collection systems are pre-requisites to build safety performance database 1 2 GA Flight Activity Data GA Accident/ Incident Data General Aviation and Part 135 Activity Surveys Accident Reporting and Investigation NTSB Part 830 FAA B The survey was first implemented in 1978 It provides the (FAA) with information on general aviation and on-demand Part 135 aircraft activity The information obtained from the survey enables FAA to monitor the general aviation fleet so that it can: Anticipate and meet demand for National Airspace System facilities and services Evaluate the impact of safety initiatives and regulatory changes Build more accurate measures of the safety of the general aviation community NTSB Part 830 Notification and reporting of aircraft accidents or incidents and overdue aircraft, and preservation of aircraft wreckage, mail, cargo, and records It provides guidance on the notification and reporting of aviation incidents and accidents comes from the National Transportation Safety Board (NTSB) 49 CFR Part 830, commonly known as "NTSB 830" It governs actions concerning these events, as well as overdue aircraft FAA B prescribes FAA procedure and responsibilities for aircraft accident and incident notification, investigation and reporting It provides direction and guidance to aviation safety inspectors when they are called upon to perform accident investigations It also delineates the responsibilities of the FAA and the National Transportation Safety Board when conducting investigations The order is also used as a training guide for teaching accident investigation courses at the Transportation Safety Institute Source: FAA, NTSB, Booz & Company analysis Booz & Company

74 1 GA Flight Activity Data FAA’s Annual general aviation activity survey helps establish fleet size and the hours flown by the general aviation community Conducted annually by the FAA Statistics and Forecast Branch The FAA has contracted independent research firm, to implement the survey Standard survey forms and on line surveys are conducted Close collaboration with the FAA, other federal agencies and aviation groups and associations Survey Contents Frequency Overall aircraft activity Under which FAR part (e.g. 121, 129 etc.) In which states the aircraft mainly flown Total flight hours (including how many hours in Alaska) % of hours flown for the following purposes: General use (personal, instructional, business, air medical, aerial sight seeing and etc.) FAR Part 135 (Air taxi, air tours, air medical services, commuter) % hours flown under fractional ownership program % hours flown with the aircraft rented or leased to others % hours flown with the aircraft hired by the governments % hours flown under VFR, IFR and no flight plans Was the aircraft certified and maintained to operate under IFR # of landings Fuel Type, grade and fuel burn rate (gallon per hours) List of installed avionics equipment installed Based on a statistically selected sample of aircraft, covering approximately 83% of related aircraft in the Civil Aviation Registry (2007) It includes aircraft registered with the FAA and operating in the US or US territories under Part 91, Part 125, Part 133, Part 135 on demand air taxi and commuter operations not covered by Part 121 and Part 137 agricultural aircraft operation Survey population The survey sample is stratified by: aircraft type FAA region in which the aircraft is registered whether the aircraft operates under a Part 135 certificate and whether the aircraft was manufactured in the past 5 years Survey sample Source: FAA, Booz & Company analysis Booz & Company

75 1 GA Flight Activity Data In addition FAA conducts annual Airport Activity Survey to collect on demand operation enplanement data for its AIP program FAA engages an external party to conduct the voluntary annual Airport Activity Survey Data collected in this survey will be used to allocate Airport Improvement Program (AIP) funds to eligible airports. This survey is restricted to on demand operations that are NOT reported to the Office of Airline Information, Bureau of Transportation Statistics (BTS), Department of Transportation Information requested is as follows: City where departing passengers boarded the aircraft Names of airports where passengers boarded Nonscheduled Enplanements for charter operation Number of revenue passengers for regular air taxi services Booz & Company

76 1 GA Flight Activity Data CAAC has set basic statistics requirements for general aviation activities in CCAR 241-R1 EXAMPLE GA Activity Reporting Example Eastern China Civil Aviation Administration Regulation on Civil Aviation Statistics CCAR 241-R1 Management of Civil Aviation Statistics Section 10: Civil aviation statistical survey is divided into General Statistical Survey, Organizational Survey and Specialized Survey. General statistical survey refers to the development status of China civil aviation and to be conducted by CAAC and related departments and reported to Statistical Bureau of China Section 11: General Statistical Survey includes aviation safety, output, service quality, fixed investment, human resources, financial and other information. The survey is to be developed by CAAC in accordance with Appendix 1 Civil Aviation General Statistical Survey Reporting Structure Civil Aviation General Statistical Survey Reporting Structure includes statistic tables related to industrial, agricultural and other GA related flight hours CAAC Regional Aviation Administration Period: Monthly Commercial GA operators under CCAR 135 TR-R3 Non-commercial GA Operators under CCAR 285 Aerial Work Type Industrial Agricultural Training Others Number of Flight Hours of Flight The monthly reporting is not mandatory for each party and based on capacity and statistics needs Source: CCAR 241-R1, Interviews, Booz & Company analysis Booz & Company

77 2 GA Accident/ Incident Data US. federal regulations require operators to notify the NTSB immediately of aviation accidents and certain incidents NTSB Part 830 Requirements on Accident/ Incident Reporting Initial Notification Preservation of Aircraft Wreckage, Mail, Cargo, and Records Reporting of Aircraft Accidents, Incidents, and Overdue Aircraft The operator of an aircraft shall provide immediate notification to the nearest NTSB’s field office for an aircraft accident, and any of the following listed incidents occur: Flight control system malfunction or failure Inability of any required flight crewmember to perform normal flight duties as a result of injury or illness; Failure of structural components of a turbine engine excluding compressor and turbine blades and vanes; In-flight fire; or Aircraft collide in flight Damage to property, other than the aircraft, estimated to exceed $25,000 for repair (including materials and labor) or fair market value in the event of total loss, whichever is less The operator of an aircraft shall be responsible for preserving to the extent possible any aircraft wreckage, cargo, and mail aboard the aircraft, and all records, including all recording mediums of flight, maintenance, and voice recorders, pertaining to the operation and maintenance of the aircraft and to the airmen until the NTSB Board takes custody thereof or a release is granted The operator of a civil public or foreign aircraft shall file a report on NTSB Form within 10 days after an accident, or after 7 days if an overdue aircraft is still missing Each crewmember, if physically able at the time the report is submitted, shall attach a statement setting forth the facts, conditions, and circumstances relating to the accident or incident as they appear to him. If the crewmember is incapacitated, he shall submit the statement as soon as he is physically able The operator of an aircraft shall file any report with the field office of the NTSB nearest the accident or incident Note: The National Transportation Safety Board (NTSB) is an independent U.S. Federal agency that investigates every civil aviation accident in the United States Source: NTSB Part 830, Booz & Company analysis Booz & Company

78 FAA’s Roles in Accident Investigation
2 GA Accident/ Incident Data NTSB investigates civil aircraft accidents and incidents and coordinates with the FAA in its conduct of the investigation FAA and NTSB Agreement FAA’s Roles in Accident Investigation FAA and NTSB have agreed that the following apply when NTSB conducts an investigation: The investigation is under the control and direction of the NTSB IIC FAA shall at all times have a coordinator (FAA IIC) designated as its principal representative until the investigation is complete Participation of other FAA personnel shall be determined by the FAA IIC The FAA IIC shall work with the NTSB IIC in coordinating FAA's activities FAA personnel assigned to a group shall work under the direction of the group chairperson and remain with the group until that phase of the investigation has been completed or they are released by the NTSB IIC and the FAA IIC The NTSB IIC shall inform the FAA IIC of all aspects of the investigation Pertinent investigation records and reports shall be made available to FAA in an orderly and timely manner Ensure that all facts, conditions, and circumstances leading to the accident are recorded and evaluated, and action is taken to prevent similar accidents. Promulgate and enforce Federal Aviation Regulations for certificating civil aircraft airworthiness, for certificating airmen and air carriers for competency, and for certifying airports used by air carriers utilizing aircraft with more than 30 passenger seats for compliance with certain safety standards. Support the NTSB by verbally informing the office with jurisdictional accident investigation responsibility of all facts, conditions, and circumstances surrounding an accident in which the NTSB does not participate on scene. Participate in any civil aircraft accident investigation or any accident investigation conducted by the NTSB that involves both civil and military aircraft so that the Administrator may properly discharge his or her duties and responsibilities in accordance with Title 49 United States Code. Participate with the NTSB in foreign accident investigations upon request by the State of accident occurrence. Notify the NTSB, through the FAA IIC, when the NTSB does not participate in the on-scene investigation prior to authorizing NTSB funds Conduct autopsies and tests of the remains of persons aboard the aircraft at the time of the accident under authority delegated by the Administrator to any medically qualified official or medically qualified FAA employee. Designated aviation medical examiners are not deemed to be FAA officials or employees for this purpose Source: FAA B, Booz & Company analysis Booz & Company

79 FAA Investigator in charge
2 GA Accident/ Incident Data FAA Order B prescribes procedures and responsibilities for aircraft accident and incident notification, investigation, and reporting FAA Investigator in charge (FAA IIC) The FAA IIC directs and controls all FAA participation in the investigation until the investigation is completed The FAA IIC reports to AAI-1 through the Manager, Accident Investigation Division, AAI-100. NTSB and the military service use the term "FAA coordinator" during NTSB or military service-conducted investigations FAA Participator Participants from FAA side includes: Office of Accident Investigation, Operations Centers, Air Traffic Service, Flight Standards Service, Aviation System Standards, Air Traffic Resource Management Program, Office of Runway Safety, Office of Aviation Medicine, Airway Facilities Service, Office of Airport Safety and Standards, Office of The Chief Counsel, Associate Administrator for Civil Aviation Security, Aircraft Certification Service, Office of Public Affairs, Office of International Aviation, Office of Commercial Space Transportation (detailed responsibilities of each participant available) Participants are responsible to the FAA IIC in all matters related to the function(s) assigned by and/or agreed to by the FAA IIC. FAA participants shall not withdraw from the investigation (if assigned to a group) until that phase of the investigation has been completed or they are released by the NTSB IIC and the FAA IIC. Participants shall submit reports if requested by the FAA IIC. Participants may provide information or reports only to members of the investigative team and appropriate FAA management. The FAA IIC shall be made aware of the nature and content of this information. Source: FAA B, Booz & Company analysis Booz & Company

80 2 GA Accident/ Incident Data FAA Order B also provides recommendation on procedures for accident and incident prevention Accident or Incident Prevention Recommendations Process Inspector, FAA Manager, other FAA employee Prepare a memorandum which briefly describes the accident or incident and the deficient areas Receive the final decision from SRRB Federal Aviation Administration, Office of Accident Investigation, Recommendation and Analysis Division (AAI 200) Review by author or other individuals entered into the Program Tracking and Reporting System will not be received or acted upon by AAI Review each recommendation, enter it in the office's evaluation program Forward to FAA Action Office FAA Action Office 90 calendar days to evaluate the recommendation and forward its response to AAI-200 Safety recommendations deemed as emergency or significant in nature may have suspense dates of less than 90 days. Response - (Rejected or Accepted) Safety Recommendation Review Board Review all responses from the FAA action offices Not Approved - Reevaluate Approved Source: FAA B, Booz & Company analysis Booz & Company

81 Accident Level and Description
2 GA Accident/ Incident Data NTSB has lower accident or incident investigation priority for general aviation as compared with airlines Accident Level and Description NTSB Roles Major Accident The Washington headquarters of the NTSB, through the OAS dispatches a “go-team” of investigators to handle the investigation of such an accident This usually entails an accident involving a commercial airliner or cargo aircraft Major Investigation, Regional Office This is a less serious air accident in which significant safety issues have been identified. Some nonfatal airline accidents and most small commuter airline accidents fall into this category It is handled by one of the NTSB’s six regional offices, at least at the outset Field Investigation This is an airline accident or incident with no fatalities (such as an incident involving air turbulence) or a GA accident. The investigation is conducted by the nearest regional office and at least one investigator goes to the site of the accident Limited Investigation (Non-field investigation) A limited investigation, sometimes called a “desk investigation,” is conducted subsequent to an event involving GA aircraft The investigation of GA accidents is almost exclusively assigned to the field and regional offices This investigation is carried out by U.S. mail or over the telephone Applicable to GA Delegated Investigation (Non-field Investigation) They include accidents involving rotorcraft, amateur built aircraft, restricted category aircraft, and all fixed wing aircraft that have a certificated maximum gross takeoff weight of 12,000 pounds or less, unless fatalities occurred, the aircraft was operated as an “air taxi,” or the accident involved a midair collision These investigations are delegated to the FAA The FAA is directed to report the facts, conditions, and circumstances of the accident to the NTSB; if necessary, the Safety Board may determine the probable cause Source: NTSB, Booz & Company analysis Booz & Company

82 2 GA Accident/ Incident Data CAAC has more stringent initial notification than NTSB requiring incidents be notified Initial Notification of Aircraft Accidents and Incidents Report to nearest NTSB office Report CAAC or Regional Aviation Administration Accident An aircraft accident - (including GA accident) All flight accident - immediate to CAAC and regional aviation administration (including GA) All ground aviation accident - immediate to regional aviation administration (including GA) Incident Flight control system malfunction or failure; Inability of any required flight crewmember to perform normal flight duties as a result of injury or illness; Failure of structural components of a turbine engine excluding compressor and turbine blades and vanes; In-flight fire; or Aircraft collide in flight. Damage to property, other than the aircraft, estimated to exceed $25,000 for repair (including materials and labor) or fair market value in the event of total loss, whichever is less. (including GA) All incident - immediate to regional aviation administration (including GA) Source: Civil Aviation Safety Information Management Regulation, 14 CFR 830, Booz & Company analysis Booz & Company

83 Investigation Principles
2 GA Accident/ Incident Data CAAC follows four principles to ensure independency, objectivity, thoroughness and comprehensiveness of accident investigation Investigation Principles Investigation Party Investigation Team Independent Investigation Principle: the accident investigation should be independent, and any other organization and individuals cannot obstruct the investigation Objective Investigation Principle: the accident investigation should base on facts, and be objective, fair and scientific without subjectivism Depth Investigation Principle: the accident investigation should find out the direct causes, and other causes during the process, and analyze the factors, including aircraft design, manufacture, operation, maintenance, airmen training, government regulations and corporate governance and implementation Complete Investigation Principle: the accident investigation should find out not only the causes and factors relevant to this accident, but also some exposed, not relative factors which affects aviation safety The accident investigation charged by CAAC including: Major flight accident delegated by state council; Accident by foreign civil aircraft in China, except for the ones delegated to other organizations by state council; Serious public transport accident; The accident investigation charged regional aviation administration: Serious and general GA flight accident; General public transport flight accident; Other accidents delegated by CAAC The structure of investigation team should follow: The investigation department should appoint one team leader. This team leader is in charge of investigation, and has the rights to made decision for team structure and investigation work. The team leader for serious and above accident should be chief investigator and for general accident and incident should be chief investigator or investigator; Based on investigation needs, the team leader could establish several professional sub-team, in charge of the investigation on flight operation, airworthiness and maintenance, air traffic management, aeronautical meteorology, air security, airport support, flight record analysis, failure analysis, aviation medicine, survival factors, human factors and safety management . The team leader should appoint one chief investigator or investigation as the leader of professional sub-team The investigation team should consist of investigator and temporary experts. The team should follow the team leader’s management during investigation process and only report to the team leader. During the investigation period, the team member should devote him/herself into investigation without other benefits The one who has direct stakes with accident or incident cannot join the investigation Source: Civil Aviation Accident Investigation Regulation, Booz & Company analysis Booz & Company

84 2 GA Accident/ Incident Data CCAR-395-R1 provides the standard procedure for accident notification and reporting Civil Aviation Accident Notification and Reporting Procedure Oral Report: Immediate Written Report: within 12 hours Organization/Individual Involved in the accident Oral Report: Immediate Written Report: within 12 hours Local Civil Aviation Administration and Local Government Local Government Oral Report: Immediate Written Report: within 24 hours CAAC Air Traffic Management Bureau, Operation Management Centre Executives of CAAC and Corresponding Departments State Council and corresponding ministries CAAC Accident Investigation Division Representatives of Aircraft Registry Country, Operator Registry Country, Design Country, Manufacture Country and ICAO Initial Accident Report within 30 days to ICAO Source: CCAR-395-R1, Booz & Company analysis Booz & Company

85 Aviation Safety Information Management System
2 GA Accident/ Incident Data CAAC also starts to establish the aviation safety information management system but different from ASRS in the U.S Regulation on Aviation Safety Information Management System Discussion China’s aviation safety information management system is intent on collecting, reporting and managing aviation data, however, ASR helps more to establish a sharing platform and focus on the missing part of safety management and investigation China’s aviation safety information management system is not open to the public but a selected subscriber e.g. regional aviation administration, GA operators China’s aviation safety information system is run by CAAC, and ASR is run by NASA - an independent third-party which separate the authorization and ASR and aviation safety information system are different and not at the same developing stage due to its purpose and causes CCAR 396 Regulations on Civil Aviation Safety Information Management (Effective from Apr.7th, 2005) Article 5 The Civil Aviation Safety Information System refers to the computer network system that collect, report and manage civil aviation information Article 8 CAAC is in charge of establishing civil aviation safety information system to share civil aviation safety information Article 9 CAAC encourage and support the relevant technical research on collection, report and analysis of civil aviation safety information, and CAAC will praise and reward the individuals / organizations that make significant contribution to civil aviation safety information management Article 16 It should use the most appropriate and quick channel to report civil aviation safety information; the initial and final report should be reported via civil aviation safety information system, and other channels are also applicable if the system is not available Source: CCAR-396, Booz & Company analysis Booz & Company

86 CAAC must prioritize these improvement needs
3 Safety Performance Measurement CAAC must prioritize improvement of GA flight activity data survey and establishment of GA safety performance metrics Observations Observation GA Activity Survey Flight hour statistics published in Statistical Data on Civil Aviation of China No structured survey mechanism in place GA Accident/incident Reporting Accident/ incident reporting system established Appropriate regulations and orders are in place GA Safety Targets No definite target is set Only mention “prevent GA major accident” in annual CAAC safety work plan GA Accident/ incident Investigation Accident/ incident investigation system established Appropriate regulations and orders are in place GA Accident/ incident Statistics Established and data published in Statistical Data on Civil Aviation of China Data set not as comprehensive as FAA, need prioritize “fatal accident” Lack of breakdown by segments Aviation Safety Information System Post accident/incident information sharing system in place Lack of voluntary incident reporting (those not required under regulations) such as Aviation Safety Reporting System in the U.S. CAAC must prioritize these improvement needs Less established More established Source: Booz & Company analysis Booz & Company

87 Executive summary GA Safety Regulation Safety oversight organizational structure Safety performance measurement Safety culture and promotion Appendix Booz & Company

88 In terms of the management of safety, understanding of culture is as important as understanding context ICAO Culture can be described in the simplest terms as a “collective programming of the mind”. It is the sum total of the way people conduct their affairs in a particular social milieu and provides a context in which things happen influences the values, beliefs and behavior that we share with the other members of our various social groups binds us together as members of groups and provides clues and cues as to how to behave in both normal and unusual situations sets the rules of the game, or the framework for all our interpersonal interactions In terms of the management of safety, understanding culture is as important as understanding context, since culture is an important determinant of human performance Source: ICAO Safety Management Manual, Booz & Company analysis Booz & Company

89 Three Distinct Culture Description of Three Culture
Safety management initiatives with organizational culture offering the greatest opportunities to promote safety culture ICAO Three Distinct Culture Description of Three Culture National culture differentiates the national characteristics and value systems of particular nations. People of different nationalities differ, for example: in their response to authority how they deal with uncertainty and ambiguity, and how they express their individuality Professional culture differentiates the characteristics and value systems of particular professional groups (the typical behavior of pilots vis-à-vis that of air traffic controllers, or maintenance engineers) Through personnel selection, education and training, on-the-job experience, peer pressure and etc., professionals (physicians, lawyers, pilots, controllers) tend to adopt the value system and develop behavior patterns consistent with their peers They generally share a pride in their profession and are motivated to excel in it Organizational culture differentiates the characteristics and value systems of particular organizations (the behavior of members of one company versus that of another company, or government versus private sector behavior). For example, in an airline, pilots may come from different professional backgrounds (military versus civilian experience, bush or commuter operations versus development within a large carrier) National Professional Organizational The greatest scope for creating and nourishing an effective, generative culture for the management of safety is at the organizational level Operational personnel in aviation are influenced in their day-to-day behavior by the value system of their organization Source: ICAO Safety Management Manual, Booz & Company analysis Booz & Company

90 There are four main factors that can influence organizational safety culture
Booz & Company Analysis Main Influential Aspects of Organization Safety Culture Safety Management Tool Approach Voluntary and Collaborative Approach 1 Institutionalize an effective safety reporting system Encourages safety incident reporting Defines clear accountability and responsibilities Enables flexibility and information sharing and learning 3 Voluntary industry stakeholder participation to improve safety Programs and initiatives to help GA companies develop A safety culture that holds safety as a core value Safety Culture 2 Cultivate safety investigation culture to improve system reliability Learn about system vulnerability; Develop strategies for change; and Prioritize investment of safety resources 4 Government and Industry Partnership to improve safety Develop joint workgroup to spearhead safety improvement initiatives Encourage information and lessons learned sharing Booz & Company

91 Effective safety reporting — Five basic traits
1 Safety reporting system One of the most influential aspects of an organizational culture in terms of the management of safety is the safety reporting system ICAO Effective safety reporting — Five basic traits Personnel are knowledgeable about the human, technical and organizational factors that determine the safety of the system as a whole Institutionalize formal training to recognize and report hazards Understand the incidence and consequences of hazards Information Flexibility Learning Willingness Accountability Effective Safety Reporting People can adapt reporting when facing unusual circumstances Shifting from the established mode to a direct mode thus allowing information to quickly reach the appropriate decision making level People are willing to report their errors and experiences Identify operational requirements to support active hazard reporting and ensure key safety data are properly registered People have the competence to draw conclusions from safety information systems and the will to implement major reforms as a consequence of the awareness of the importance of communicating hazard information at all levels of the organization People are encouraged (and rewarded) for providing essential safety information related to hazards Establish a system of checks and balances that ensures that reporters of hazards feel confident that hazard reporting will not be put to uses others than for which it was implemented Source: ICAO Safety Management Manual, Booz & Company analysis Booz & Company

92 Descriptions of FAA’s Aviation Safety Reporting System (ASRS)
1 Safety reporting system In the U.S. voluntary incident reporting system such as ASRS is implemented to encourage incident reporting and information sharing U.S. Example Descriptions of FAA’s Aviation Safety Reporting System (ASRS) ASRS Reporting Process The Aviation Safety Reporting System, or ASRS, is a voluntary system that allows pilots and other airplane crew members to confidentially report near misses and close calls in the interest of improving air safety The confidential and independent nature of the ASRS is key to its success, since reporters do not have to worry about any possible negative consequences of coming forward with safety problems The ASRS is run by NASA, a neutral party, since it has no power in enforcement. The success of the system serves as a positive example that is often used as a model by other industries seeking to make improvements in safety A notable feature of the ASRS is its confidentiality and immunity policy. Reporters may, but are not required, submit their name and contact information Pilot is one of the key sources of ASRS and ASRS wants to involve more pilot in this program If the ASRS staff has questions regarding a report, it can perform a callback and request further information or clarification from the reporter. Once the staff is satisfied with the information received, the report is stripped of identifying information and assigned a report number The part of the reporting form with contact information is detached returned to the reporter. ASRS will issue alerts to relevant parties, such as airlines and air traffic controllers, if it feels it is necessary to improve safety The ASRS also publishes a monthly newsletter highlighting safety issues, and now has an online database of reports that is accessible by the public Independent Confidential Source: NASA, Booz & Company analysis Booz & Company

93 1 Safety reporting system FAA has established an accident library to share information for most major accidents and their related lessons with users U.S. Example Lessons Learned From Transport Airplane Accidents Objective and Methodology of Accident Library Accident Threat Categories Bird Hazards Cabin Safety / Hazardous Cargo Flight Deck Layout / Avionics Confusion Crew Resources Management Fuel Exhaustion Fuel Tank Ignition Inclement Weather / Icing Incorrect Piloting Technique Pressurization/ Decompression Failures Lack of System Isolation / Segregation Landing / Takeoff Excursions Midair / Ground Incursions In-flight Upsets Structural Failure Uncommanded Thrust Reversal Uncontained Engine Failure Uncontrolled Fire Windshear The objective is to populate the material with many more of the most historically significant, policy shaping accidents, in order that the lessons that can be learned from their review may be available to all users of the library Accident Threat Categories Flawed Assumptions Human Error Organizational Lapses Pre-existing Failures Unintended Effects Each accident also contains at least one high level lesson related to a threat element, and at least one lesson related to a theme element Source: Lit Research, Booz & Company analysis Booz & Company

94 2 Safety Investigation Culture Another important influential aspect is the progression of safety investigation culture from funereal purpose to improving system reliability ICAO Progression of Safety Investigation Culture Safety investigation for “funeral” purposes Safety investigation for improved system reliability This is a traditional approach to safety investigation Its main purposes are to: put losses behind; reassert trust and faith in the system; resume normal activities; and fulfill political purposes. It focuses on the identification and analysis of the occurrence causation The main purposes are to: learn about system vulnerability; to develop strategies for change; and to prioritize investment of safety resources Source: ICAO Safety Management Manual, Booz & Company analysis Booz & Company

95 Background of Medallion Foundation
3 Voluntary Industry Stakeholder Participation Voluntary participation of industry stakeholders to spearhead safety programs is crucial and effective to cultivate safety culture U.S. Example Background of Medallion Foundation 5-Star Shield Programs The 5-Star Shield programs promotes and helps develop: A safety culture that holds safety as a core value Continuous professional development of individual skills and competence Proactive sharing of operational control responsibilities Hazard identification and risk management techniques and trend analysis Management practices that support the organization's safety objectives The program encourages organizations to develop and incorporate a: Safety Star Program CFIT Star Avoidance Program Operational Risk Management Star Program Maintenance and Ground Service Operations Star Program Internal Evaluation Star Program The Medallion Shield is the culmination point of the 5-Star program; as once an organization has received all five stars, they are eligible to be evaluated for the Medallion Shield This evaluation focuses on company management, corporate safety culture and front-line employees to determine if the concepts associated with the stars are successfully incorporated into day-to-day company operations The Medallion Foundation is a non-profit organization promoting aviation safety through systems enhancements by providing management resources, training, and support to the aviation community It focuses on changing the culture and attitude of operators and pilots flying in Alaska The Foundation provides training on system safety and human behavior in an effort to reduced aviation accidents Source: Medallion Foundation, Booz & Company analysis Booz & Company

96 General Aviation Joint Steering Committee
4 Government and Industry Partnership FAA works closely with industry stakeholders to spearhead efforts to improve GA safety U.S. Example General Aviation Joint Steering Committee GAJSC members The General Aviation Joint Steering Committee (GAJSC) is a government-industry group that manages efforts to reduce fatal general aviation accidents meets about four times a year to review GA accident trends, establish areas for special emphasis, and share information The FAA and the Aircraft Owners and Pilots Association (AOPA) Air Safety Foundation (ASF) co-chair the GAJSC The GAJSC conducts its work through three subgroups: Personal/Sport Aviation: This subgroup oversees multiple accident mitigation strategies related to weather, controlled flight into terrain (CFIT), and aeronautical decision-making Technically Advanced Aircraft/Automation: The TAA/Automation Subgroup monitors the introduction of new GA aircraft designs and new avionics, which have increased the feasibility of using these aircraft for personal transportation Turbine Aircraft Operations: The Turbine Aircraft Operators Subgroup works to mitigate accidents in the nonscheduled Part 135 sector and to proactively address safety issues arising from the introduction of very light jets (VLJs) The GAJSC’s General Aviation Data Improvement Team oversees the annual GA activity survey and analyzes accidents in each sector Federal Aviation Administration Aircraft Owners and Pilots Association (AOPA) Experimental Aircraft Association (EAA) General Aviation Manufacturers Association (GAMA) Helicopter Association International (HAI) National Air Transportation Association (NATA) National Business Aviation Association (NBAA) National Transportation Safety Board (NTSB) National Weather Service Source: FAA Small Aircraft Manufacturers Association (SAMA) Booz & Company

97 4 Government and Industry Partnership FAA Safety Team also encourage continual growth of a positive safety culture within the aviation community Mission of FAA Safety Team New Relationship with Aviation Community FAASTeam Members A FAASTeam Member is anyone who makes a conscious effort to promote aviation safety and become part of the shift in safety culture. To become a member: Sign-up to use FAASafety.gov and take part in all it has to offer. Pilots – participate in our new WINGS - Pilot Proficiency Program Mechanics – participate in the AMT Awards Program Attend live FAASTeam seminars and events in your area FAASTeam Representatives Aviation safety volunteers that wish to work closely with FAASTeam Program Managers (FPM) to actively promote safety may be designated as FAASTeam Representatives. These volunteers will receive training and will be supported by the FPM with equipment and materials FAASTeam Industry Members The FAASTeam is in the process of developing guidelines for the establishment of Industry Members. They are companies or associations of people that have a vested interest in aviation safety. The guidelines will describe how these groups and the FAASTeam can formalize their desires to promote aviation safety together To improve the Nation's aviation safety record by conveying safety principles and practices through training, outreach, and education. At the same time, FAASTeam Managers and Program Managers will establish meaningful aviation industry alliances and encourage continual growth of a positive safety culture within the aviation community. The new FAASTeam will help the FAA and industry focus their resources on combined efforts to reach our common goal of reducing accidents. Join the FAASTeam and be part of the solution! " -- Kevin Clover, National FAA Safety Team Manager Source: Lit Research, Booz & Company analysis Booz & Company

98 Aviation regulatory system Roles and responsibilities of AFS
Executive summary GA Safety Regulation Safety oversight organizational structure Safety performance measurement Safety culture and promotion Appendix Aviation regulatory system Roles and responsibilities of AFS ICAO definitions Booz & Company

99 Overall structure of U.S. Aviation Regulatory System
Title 49 Transportation Congressional Acts (Acts of Congress are Public Laws) Code of Federal Regulations (CFR) (50 Titles) Public Law Basis for Title 14 is PL Title 14 Aeronautics and Space (Five Volumes) Volume 1 Part 1-59, Chapter I Volume 2 Parts , Chapter I Volume 3 Parts , Chapter I Volume 4 Chapter II Parts Office of Secretary, D.O.T Chapter III Parts Office of Commercial Space Transportation Volume 5 Parts Chapter V NASA Subchapter A Definitions and Abbreviations Part: 1, 3 Subchapter B Procedural Rules Parts: 11, 13, 14, 15, 16, 17 Subchapter Aircraft Parts: 21, 23, 25, 27, 29, 31, 33, 34, 35, 36, 39, 43, 45, 47, 49 Subchapter D Airmen Parts: 61, 63, 65, 67 Subchapter E Airspace Parts: 71, 73, 77 Subchapter F Air Traffic and General Operating Rules Parts: 91, 93, 95, 97,99, 101, 103, 105 Subchapter G Air Carriers Parts: 119, 121, 125, 129, 133, 135, 137, 139 Subchapter H Schools and Other Certified Agencies Parts: 141, 142, 145, 147 Subchapter I Airports Parts: 150, 151, 152, 155, 156, 157, 158, 161, 169 Subchapter J Navigational Facilities Parts: 170, 171 Subchapter K Administrative Regulations Parts: 183, 185, 187, 189, 193 Subchapter L through M Reserved Subchapter N Risk Insurance Part: 198 Booz & Company

100 Comparison of US FAR and China CCAR
Airport U.S. FAR Scope China CCAR Part 139 Certification of airports Part 150 Airport noise compatibility planning Part 151 FEDERAL AID TO AIRPORTS CCAR 158 Part 152 AIRPORT AID PROGRAM Part 153 AIRPORT OPERATIONS CCAR 97-RSI/2, CCAR 139CA-R1 CCAR 140 Part 155 RELEASE OF AIRPORT PROPERTY FROM SURPLUS PROPERTY DISPOSAL RESTRICTIONS CCAR 229 Part 156 STATE BLOCK GRANT PILOT PROGRAM Part 157 NOTICE OF CONSTRUCTION, ALTERATION, ACTIVATION, AND DEACTIVATION OF AIRPORTS Part 158 PASSENGER FACILITY CHARGES (PFC'S) Part 161 NOTICE AND APPROVAL OF AIRPORT NOISE AND ACCESS RESTRICTIONS Part 169 EXPENDITURE OF FEDERAL FUNDS FOR NONMILITARY AIRPORTS OR AIR NAVIGATION FACILITIES THEREON 民用机场航空器活动区道路交通安全管理规则 CCAR 331 SB-R1 民用机场专用设备使用管理规定 CCAR 137CA-R2 民用运输机场应急救援规则 CCAR 139-2 Booz & Company

101 Comparison of US FAR and China CCAR
Airmen U.S. FAR Scope China CCAR Part 60 FLIGHT SIMULATION TRAINING DEVICE INITIAL AND CONTINUING QUALIFICATION AND USE CCAR-60 Part 61 CERTIFICATION: PILOTS, FLIGHT INSTRUCTORS, AND GROUND INSTRUCTORS CCAR-61 -R1/R2 Part 63 CERTIFICATION: FLIGHT CREWMEMBERS OTHER THAN PILOTS CCAR-63FS Part 65 CERTIFICATION: AIRMEN OTHER THAN FLIGHT CREWMEMBERS CCAR-65FS-R1 CCAR-65TM-III-R3 CCAR-65TM-1-R2 CCAR-66-R1 CCAR66TM-I-R3 Part 67 MEDICAL STANDARDS AND CERTIFICATION CCAR-67FS CCAR-67FS-R1 Booz & Company

102 Comparison of US FAR and China CCAR
Operation U.S. FAR Scope China CCAR Part 91 General operating and flight rules CCAR 91 Part 101 Moored balloons, kites, unmanned rockets and unmanned free balloons N.A. Part 103 Ultralight vehicles CCAR 91 Section O Part 105 Parachute operation CCAR 91 Section P Part 133 Rotorcraft external-load operation CCAR 91 Section N Part 137 Agricultural aircraft operation CCAR 91 Section M Light-sport aircraft N.A Part 135 Commuter and on demand operations CCAR 135 Part 125 Airplanes having a seating capacity of 20 or more passengers or maximum payload capacity of 6000 pounds or more CCAR 91 Section L Booz & Company

103 Comparison of US FAR and China CCAR
Operator U.S. FAR Scope China CCAR Part 119 CERTIFICATION: AIR CARRIERS AND COMMERCIAL OPERATORS CCAR-121-R2 Part 129 OPERATIONS: FOREIGN AIR CARRIERS AND FOREIGN OPERATORS OF U.S.-REGISTERED AIRCRAFT ENGAGED IN COMMON CARRIAGE CCAR-119TR-R1 CCAR-129 Part 141 PILOT SCHOOLS CCAR-141 Part 142 TRAINING CENTERS CCAR-142 Part 145 REPAIR STATIONS CCAR-145-R3 Part 147 AVIATION MAINTENANCE TECHNICIAN SCHOOLS CCAR-147 Booz & Company

104 Aviation regulatory system Roles and responsibilities of AFS
Executive summary GA Safety Regulation Safety oversight organizational structure Safety performance measurement Safety culture and promotion Appendix Aviation regulatory system Roles and responsibilities of AFS ICAO definitions Booz & Company

105 General Aviation and Commercial Division
Responsibility of General Aviation and Commercial Division Responsible for regulations and policy recommendations governing the certification, inspection, and surveillance of general aviation airmen, DPEs, general aviation air agencies (pilot schools), commercial operations (rotorcraft external load, agricultural, part 125 operators, part 91, corporate, business, personal and recreational, subpart K fractional ownership) and public aircraft operations. With respect to the foregoing, the division: Develops and recommends national policies, standards, systems, procedures, and program plans to include international operation activities. Determines the need for, justifies, and formulates new or amended regulations and supplementary regulatory material; participates in regulatory review programs; recommends grants or denials of exemptions; and develops Operation Specifications. Advises the Director, Associate Administrator, and other principal officials, and serves as a central point of contact for the public and the aviation community on matters appropriate to the national level. Participates in the analysis and evaluation of field execution of programs. Determines the need for, and recommends research and development projects. Guides and assists the other divisions, the regions, and other elements of the agency in the implementation and conduct of related programs, and provides guidance on applying agency policies, standards, and procedures pertaining to safety issues. Develops, coordinates, and issues national directives to provide technical guidance on policies and procedures. Recommends, initiates, and coordinates regulatory and policy actions to resolve safety problems resulting from accidents, incidents, or other sources. Provides liaison between FAA and other offices for general aviation issues regarding airspace rules, air carrier interface, pilot certification, human factors, and other vital topics. Facilitates and coordinates concerns of the aviation community to assure general aviation views are considered in air traffic rules and aviation safety regulatory actions. Develops, coordinates, and recommends career development programs to ensure organizational competence for employees of this division Source: FAA Order FS B, Flight Standard Organizational Handbook, Booz & Company analysis Booz & Company

106 Roles and Responsibilities
General Aviation and Commercial Division - Certification & General Aviation Branch Working Scope Roles and Responsibilities This branch, AFS-810, is the principal element of the division concerning the certification and training of airmen (pilots, ground, and flight instructors) under part 61 and the operational aspects of part 91 (except for air traffic and aircraft maintenance rules) as pertaining to sport/recreational/ personal operations (excluding light sport aircraft), aviation events, operations of surplus military aircraft and operations under parts 101, 103, and 105. Ensures the initiation of appropriate corrective actions concerning FAA’s regulations/policies, procedures, standards, and operating practices as a result of reviewing investigations and hearings resulting from general aviation accidents, incidents, and violations. Advises the Director, Associate Administrator, and other officials on advanced flight training, general aviation management systems, and flight training standards. The branch is responsible for the development and implementation of standards, policies, and procedures. Ensures course sponsors and mentors coordinate with AFS_500 to ensure that new and existing course are accurate, kept current, and meet AFS objectives and the organization’s needs. Ensures inclusion of Flight Standards’ programs, goals, and objectives in the development, review, and recommendation of policy and procedures with respect to Designated Pilot Examiners who serve the general aviation community. Analyzes NTSB Safety Recommendations and prepares required responses on its findings following an accident investigation. Responds to FAA Safety Recommendations from field offices and takes proper action. Advises the Associate Administrator for AVS, AFS-1, and AFS-800 management on matters pertaining to the National Airshow Program and aviation events. In addition to advisement responsibilities, the branch is responsible for establishing rules, technical guidance, policies, and approvals on national air show matters and aviation events. Provides program management for the development and deployment of the Airman Certificate and/or Rating Application (ACRA)/Integrated ACRA (IACRA) automated airman application program. Source: FAA Order FS B, Flight Standard Organizational Handbook, Booz & Company analysis Booz & Company

107 General Aviation and Commercial Division - Commercial Operation Branch
Working Scope Roles and Responsibilities This branch, AFS-820, is the principal element of the division with respect to the operational aspects of part 91 to include corporate, turbine and very light jets, (except for air traffic and aircraft maintenance rules) as pertains to commercial operations, part 91, corporate business and aerial work, subpart K (fractional ownership) and parts 125, 133, 137, and public aircraft operations. Ensures the initiation of appropriate corrective actions concerning FAA policies, procedures, standards, and operating practices, as a result of reviewing investigations and hearings resulting from general aviation accidents, incidents, and violations. Participates on the FOEB and FSB. Analyzes NTSB Safety Recommendations and prepares required responses on its findings following an accident investigation. Responds to FAA Safety Recommendations from field offices and takes proper action. Develops and carries out division policy pertaining to the MMEL. Evaluates training for General Aviation Operations inspectors. Develops and carries out rotorcraft policy, external-load operations, and leads the Vertical Flight Committee. Drafts and reviews applicable chapters of Order for operations under part 91, including subpart K, and parts 125, 133, and 137 (except for air traffic and aircraft maintenance rules). Administers and oversees the Headquarters regional 4040 flight proficiency program. Serves as co-chair to the Turbine Aircraft Operations Subgroup of the General Aviation Joint Steering Committee. Develops and carries out policy concerning aerial work such as banner towing and motion picture operations. Works with DOT regarding North American Free Trade Agreement policy. Develops and implements NAFTA guidance and policy for FAA field offices. Source: FAA Order FS B, Flight Standard Organizational Handbook, Booz & Company analysis Booz & Company

108 General Aviation and Commercial Division - Plans and Program Branch
Working Scope Roles and Responsibilities This branch, AFS-820, is the principal element of the division with respect to the operational aspects of part 91 to include corporate, turbine and very light jets, (except for air traffic and aircraft maintenance rules) as pertains to commercial operations, part 91, corporate business and aerial work, subpart K (fractional ownership) and parts 125, 133, 137, and public aircraft operations. Provides advice, counsel, and program support to the division manager and other members of the division’s management team on management systems, processes, procedures, principles, and methodologies; strategic and tactical planning; matrix and participative management; and program analysis, evaluation, success metrics, and quality assurance measures. Develops and implements division policies, programs, processes, and procedures governing administrative, fiscal, and human resource management. In accordance with established FAA administrative policies and procedures, provides administrative management support for the division’s management team for correspondence control and general paperwork management, contract management, general office services, and logistical support. Monitors and reports on the progress of responses for White House Report, Congressional requests for action, requests under the Freedom of Information Act, and the Government Performance and Results Act. Monitors the Cost Accounting System/Labor Distribution Reporting activities for the division. Manages the production of all division publications. This includes FAA Aviation News. The branch responds to requests from AFS-1 to provide design and photographic support for various publications. Acts as the division focal point for matters pertaining to ISO 9000 issues. Source: FAA Order FS B, Flight Standard Organizational Handbook, Booz & Company analysis Booz & Company

109 Regional Flight Standard Division Flight Standard District Office
Roles of Flight Standard Regional Division Roles of Flight Standard District Office The Flight Standards division is responsible for Flight Standards matters, airmen, operators, and airworthiness matters. The division is under the executive direction of the Director, Flight Standards Service. The division provides staff assistance to the director and program support to FAA representative regarding Inspection and surveillance of general aviation operating U.S.-registered aircraft within the area Recurrent airworthiness certification and the airworthiness of air carrier and general aviation aircraft The Flight Standards District Offices (FSDO) are field elements of the Flight Standards Service. FSDOs are responsible for the certification and surveillance of air operators, air agencies, and airmen. FSDO personnel conduct or assist in conducting accident and incident investigations and investigate possible violations of the Federal aviation regulations. They ensure the adequacy of flight procedures, operating methods, airmen qualifications and proficiency, and aircraft maintenance. Aviation safety is promoted through accident prevention and other safety-related seminars presented by FSDO aviation safety program managers Source: FAA Order FS B, Flight Standard Organizational Handbook, Booz & Company analysis Booz & Company

110 Civil Aviation Registry
Aircraft Registration Branch Airmen Certification Branch AFS-750, is responsible for the national programs of aircraft registration, recording of encumbrances against U.S. civil aircraft, identification system of registered aircraft, and law enforcement assistance as it involves the aircraft registration program Serves as the national repository for aircraft records containing registration, lien, and airworthiness information Provides technical advice and assistance to financial institutions, attorneys, title search companies, FAA and other government offices, foreign registries, and the aviation public pertaining to aircraft registration and recording AFS-760, is responsible for the issuance of all FAA airmen certificates, the content of all airmen certification records and law enforcement assistance as it involves the airmen certification program. Serves as the national repository for airmen certification records and provides the central services necessary for control of these records, which are used in court litigation, employment, and insurance verification by the aviation public Provides advice, guidance, and regulatory counsel to the aviation public, attorneys, law enforcement agencies, government officials at all levels, foreign government aviation officials, and agency field personnel on regulatory matters concerning the testing and certification of airmen Source: FAA Order FS B, Flight Standard Organizational Handbook, Booz & Company analysis Booz & Company

111 Aircraft Maintenance Division - General Aviation Branch
Development of certification, inspection, and surveillance policy Other Functions Airmen: mechanic certificate, repairman certificate, inspection authorization, and parachute riggers. Aviation Maintenance Technical Schools (AMTS). Various designated representatives of the Administrator (designees) to include Designated Airworthiness Representatives and Organization Designation Authorities. Designated maintenance examiners, and designated parachute rigger examiner. Ensures course sponsors and mentors coordinate with AFS-500 to ensure that new and existing courses are accurate, kept current, and meet AFS objectives and the organization’s needs. General aviation maintenance operations under 14 CFR parts 43 and 91. Malfunction or defect reporting (M or D) systems. Develops, implements, and evaluates, procedures, policies, and programs for the maintenance, alteration, and airworthiness of aircraft used by pilot schools, external-load operator, special purpose, agriculture operators, and operating certificate holders under part 125. Provides technical interface with Aircraft Certification Service (AIR) for general aviation function concerning maintenance regulatory aspects of 14 CFR parts 21, 23, 25, 27, and 29 regarding data approvals for repairs and alterations. Provides technical guidance to the other divisions, the regions, and the other elements of the agency on all operational and technical facets of general aviation. Provides technical assistance to other Government agencies, industry, and international aeronautics organizations Coordinates course sponsors and mentors with AFS-500 to ensure that new and existing courses are accurate, kept current, and meet AFS objectives and the organization’s needs Source: FAA Order FS B, Flight Standard Organizational Handbook, Booz & Company analysis Booz & Company

112 Aviation regulatory system Roles and responsibilities of AFS
Executive summary GA Safety Regulation Safety oversight organizational structure Safety performance measurement Safety culture and promotion Appendix Aviation regulatory system Roles and responsibilities of AFS ICAO definitions Booz & Company

113 Definitions of General Aviation and Aerial Work
ICAO and FAA share similar definitions of general aviation and aerial work Definitions of General Aviation and Aerial Work FAA treats aerial work as part of general aviation though defines it separately Include both scheduled, non scheduled, air cargo and air taxi General Aviation Aerial Work Commercial Aviation ICAO “All civil aviation operations other than scheduled air services and non-scheduled air transport operations for remuneration or hire or aerial work” (1) “An aircraft operation in which an aircraft is used for specialized services such as agriculture, construction, photography, surveying, observation and patrol, search and rescue, aerial advertisement, etc” (2) “Commercial air transport operation. An aircraft operation involving the transport of passengers, cargo or mail for remuneration or hire”. Annex 6 Part 1, Chapter 1 (3) FAA “Flights conducted by operators other than Title 14 of the Code of Federal Regulations (14 CFR) part 121 or part 135 certificate holders” On demand/Non-scheduled commercial operation as defined in part 135 and 119 “Aerial Work including Crop dusting, seeding, spraying, and bird chasing; Banner towing; Aerial photography or survey; Fire fighting; Helicopter operations in construction or repair work; and power line or pipeline patrol” (4) “Commercial purposes means the transportation of persons or property for compensation or hire, but does not include the operation of an aircraft by the armed forces for reimbursement when that reimbursement is required by any Federal statute, regulation, or directive” (5) Although non scheduled and air taxi are not classified as GA&AW according to ICAO and FAA definitions, they are usually considered part of GA&AW due to the type of aircraft used 1) ICAO Annex 6 Part1, Chapter 2) Annex 6 Part1, Chapter 1.H9 3) Annex 6 Part 1, Chapter 1 4) 14 CFR Part 119 5) 14 CFR Part 1 Source: ICAO, FAA, CAAC, Booz & Company analysis Booz & Company

114 Definitions of Incident, Accident and Fata Accident
ICAO and FAA share similar definitions of aviation incident, accidents and fatal accidents Definitions of Incident, Accident and Fata Accident ICAO Annex 13 NTSB/FAA Incident An occurrence, other than an accident, associated with the operation of an aircraft which affects or could affect the safety of operation. An occurrence other than an accident associated with the operation of an aircraft, which affects or could affect the safety of operations An occurrence associated with the operation of an aircraft which takes place between the time any person boards the aircraft with the intention of flight until such time as all such persons have disembarked, in which a person is fatally or seriously injured or the aircraft sustains damage or structural failure or the aircraft is missing or is completely inaccessible. An occurrence associated with the operation of an aircraft which takes place between the time any person boards the aircraft with the intention of flight and until such time as all such persons have disembarked, and in which any person suffers death or serious injury, or in which the aircraft receives substantial damage Accident Fatal Accident Fatal injuries include all deaths determined to be a direct result of injuries sustained in the accident. Any accident cause injury which results in death within 30 days of the accident Source: ICAO Annex 13, FAA b, Booz & Company analysis Booz & Company

115 Classification of Accident and Incident
ICAO, NTSB/FAA and CAAC have different but clear definition for its classification of accident and incident Classification of Accident and Incident ICAO NTSB/FAA CAAC Accident Serious Incident Incident Major Incident Significant Incident Occurrence without safety effects Major Accident Serious Accident Injury Accident Damage Accident 飞行事故 Flight Accident 特别重大飞行事故 Major Flight Accident 重大飞行事故 Serious Flight Accident 一般飞行事故 General Flight Accident 航空地面事故 Aircraft Ground Accident 特别重大航空地面事故 Major Aircraft Ground Accident 重大航空地面事故 Serious Aircraft Ground Accident 一般航空地面事故 General Aircraft Ground Accident 事故征候 Incident 严重飞行事故征候 Serious Flight Incident 飞行事故征候 Flight Incident 训练飞行事故征候 Training Flight Incident Source: NTSB Aviation Safety, ICAO ECCAIRS Data Definition Standard, Civil Aviation Flight Accident Classification, Civil Aviation Ground Accident Classification, Civil Aviation Incident Classification, Booz & Company analysis Booz & Company


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