House Passes FAA Reauth. Despite Calls to Protect U.S. Jobs

UPDATE: May 21

On May 21, the House of Representatives passed the Federal Aviation Administration (FAA) Reauthorization Act (H.R. 915). The final bill included the damaging language in Sec. 303 requiring twice annual inspections of foreign repair stations by FAA personnel and requiring drug and alcohol testing of employees at foreign repair stations.

The House floor was the site of spirited debate during the afternoon, as House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-MN-8) exchanged barbs with the committee's ranking member, Rep. John Mica (R-FL-7) over the potential impact of Sec. 303.

Rep. Mica, supported by House Aviation Subcommittee Ranking Member Tom Petri (R-WI-6) emphasized that Sec. 303 violates the current bilateral aviation safety agreement (BASA) with the European Union. The EU has stated that if the language in Sec. 303 becomes law, the BASA will collapse, causing a severe impact for the over 1,200 repair stations in the United States that complete work for European customers. Armed with letters from impacted businesses and associations, Rep. Mica continued to stress that the section was a "job killer".

While Rep. Mica reeled off the devastating job losses that could result from Sec. 303's enactment, Rep. Oberstar replied that the EU was simply "crying wolf" and no retaliation will actually occur. In addition, Rep. Oberstar and House Aviation Subcommittee Chairman Jerry Costello (D-IL-12) continued their claim that the amendment was based on safety concerns.

Rep. Aaron Schock (R-IL-18), whose bipartisan amendment to Sec. 303 was killed by the Rules Committee on May 20 (see story below), claimed that the safety argument was "bogus" and pointed to the robust safety record of foreign repair stations based abroad.

The issue on foreign repair stations took up much of the afternoon's debate, a marked change from the discussion on FAA reauthorization in the 110th Congress. Despite the setback, the bipartisan support for protecting the nation's aviation maintenance community has continued to grow throughout the past months, and the momentum will surely carry over to the other side of Capitol Hill.

Focus now turns to the Senate, where the chamber has yet to introduce its version of the bill.

UPDATE: May 20

On May 20, four House members submitted a bipartisan amendment to the FAA reauthorization bill adding language to Sec. 303 to help prevent the collapse of the BASA.

Reps. Boren (D-OK-2), Coble (R-NC-6), Minnick (D-ID-1), and Schock (R-IL-18) sponsored the amendment which would have forced the United States to apply the twice annual inspections of foreign FAA certificated repair stations in a manner consistent with the nation's international obligations. Since the twice annual inspections by FAA personnel are, according to the EU and numerous industry experts, in violation of the BASA, the amendment was designed to stave off the agreement's collapse.

Despite the bipartisan support for the amendment, the House Committee on Rules voted against allowing the amendment to be voted on by the full chamber. The 9-4 vote fell along party lines (nine Democrats against, four Republicans for).

An amendment offered by House Transportation and Infrastructure Committee Chairman Jim Oberstar (D-MN-8) on Sec. 303 was accepted. Rep. Oberstar's amendment states that the requirement for twice annual inspections of foreign repair stations by FAA personnel is allowable under the BASA (citing Article 15A). In short, Rep. Oberstar's amendment seeks to affirm that the actions required under Sec. 303 are in accord with international obligations of the United States.

The action by the Rules Committee not to allow the Boren/Coble/Minnick/Schock amendment, among other amendments, to be voted on by the full House was a contentious decision. Rep. Lincoln Diaz-Balart (R-FL-21), speaking on the House floor on May 21, questioned the committee's action, stating that the "House should have a chance to vote on the amendments." In addition, he questioned why Democratic leadership on the committee "consistently blocks amendments from debate."

UPDATE: May 15, 2009

On May 12, a bi-partisan coalition of 54 members of the House of Representatives sent a letter to chamber and committee leadership urging the amendment of Section 303 of the Federal Aviation Administration Reauthorization (FAA) Act of 2009 (H.R. 915).

The letter, written by Rep. John Barrow (D-GA-12), questions the language in Section 303 requiring twice annual inspections of foreign-based part 145 repair stations by FAA personnel. The European Community has stated that this requirement will cause the collapse of the bilateral aviation safety agreement (BASA) between the United States and the European Union, which oversees the European Aviation Safety Agency (EASA). The result will be increased fees for domestic repair stations with EASA approval and a logistical muddle as U.S.-based stations wait for inspection by EASA representatives. The dramatic shift will cause many U.S.-based aviation businesses to abandon lucrative relationships with European customers and will cost jobs in a particularly trying economic climate.

The letter advocates amending Sec. 303 so that enforcment of the provision is in accordance with obligations of the United States, namely, the BASA.

Action by ARSA members contributed directly to several signatories being added to the letter. As H.R. 915 moves to the House floor, it is imperative for continued member involvment.

Rep. Barrow's letter is available here:
Aviation Facility Letter

Don’t see your representative on the list? If you want to step up and become involved, please contact Matt Hallett at 703 739 9543 or matt@arsa.org. ARSA has a pre-written letter for you to send to your representative urging him or her to become a signatory.

UPDATE: March 18, 2009

On March 18, both the Senate and House passed an extension authorizing the Federal Aviation Administration (FAA) through Sept. 30, 2009, the end of the fiscal year. The extension came just weeks before the previous extension was set to expire on March 31.

While the House has seen some movement on its FAA Reauthorization Act (H.R. 915), the Senate has yet to introduce any legislation, instead waiting for the appointment of a new FAA administrator before going forward.

The FAA has operated under a series of extensions since late 2007.

The extra time afforded by the extension is a valuable opportunity to weigh in with your representative! Visit www.ARSAaction.org to tell him/her that American business will suffer if Sec. 303 and 310 provisions move forward.

UPDATE: March 5, 2009

On March 5, the House Transportation and Infrastructure (T&I) Committee passed the Federal Aviation (FAA) Reauthorization Act of 2009 (H.R. 915) by voice vote. The bill was passed with Section 303 "Inspection of Foreign Repair Stations" unchanged, despite strong warnings from the European Community (EC) that the section’s language will cause the collapse of the bilateral aviation safety agreement (BASA) between the United States and the European Union. Such a development will be extremely damaging to the over 120,000 persons employed at European Aviation Safety Agency (EASA)-approved facilities in the United States. In addition, Section 310 "Use of Noncertificated Maintenance Providers" was not amended. Section 310 would undermine industry operations. For example, under this section, the use of an original equipment manufacturer (OEM) to perform work on a component would NOT be allowed, thus eliminating the possibility to use an OEM key functions that are not available from other sources.

Although the legislation moved through the T&I Committee with the damaging provisions intact, another fight awaits upon the House floor. In addition, the March 5 mark-up saw spirited debate on the bill’s impact on EASA approval holders here in the United States. T&I Committee Ranking Member John Mica (R-FL-7) and House Aviation Subcommittee Ranking Member Tom Petri (R-WI-6) both focused on Sec. 303 as a "half-baked" provision that will harm the domestic aviation maintenance industry. A highlight was Rep. Rick Larsen (D-WA-2) reading excerpts from a letter sent by ARSA member Soundair, Inc. outlining the damaging repercussions faced by the maintenance industry if H.R. 915 moves forward.

In response to Rep. Larsen’s comments, T&I Committee Chairman Jim Oberstar (D-MN-8) voiced his strong opinion on the process. Claiming that the EC was "blowing smoke", the chairman dismissed threats from Europe that it will not move forward on the BASA and stated that EASA lagged behind the FAA in safety culture. In addition, Rep. Jerry Costello (D-IL-12), who chairs the House Aviation Subcommittee, weighed in by welcoming reciprocating measures from the EC. Costello stated that EASA is welcome to inspect approval holders in his district twice a year or "twice a week if they wanted to."

Although passed by the T&I Committee, the bill must also go through the House Judiciary Committee (due to anti-trust provisions) before a vote on the House floor.

UPDATE: February 11, 2009

The House Aviation Subcommittee took a major step in the ongoing effort to reauthorize the Federal Aviation Administration (FAA) on Feb. 11, 2009, by holding a hearing focused on the newly-introduced FAA Reauthorization Act of 2009 (H.R. 915). Among the issues discussed was the importance of maintaining a global network of FAA certificated repair stations, an issue of great importance to hundreds of small businesses located in the United States.

Mr. Clayton Jones, chairman, president, and CEO of Rockwell Collins, testified on behalf of the Aeronautical Repair Station Association (ARSA) as well as the Aerospace Industries Association and the General Aviation Manufacturers Association.

Jones' testimony focused on several key issues facing the aviation industry, including the implementation of the Next Generation Air Transportation System and stable funding of the Airport Improvement Program. On the issue of foreign repair stations, Jones' message was clear, "Aviation is a global industry and - as such - it requires an international network of safe, secure stations to repair and maintain aircraft."

Further, Jones testified that current language in FAA reauthorization bill could lead to retaliatory measures by foreign aviation bodies-measures that would effectively curtail the ability of American maintenance providers, most of which are small businesses, to engage in the global market. Members of the subcommittee drew attention to the fact that the United States currently enjoys a favorable balance of trade in the aviation industry, a figure that may be altered if protectionist measures remain part of the FAA reauthorization. "The U.S.-European safety agreement will serve as a foundation for future negotiations in areas such as licensing and operations that have huge economic impacts for U.S. industry. To endanger this agreement through foreign repair station legislation risks future economic growth and job creation in our country," said Jones.

UPDATE: February 9, 2009

On February 9, Transportation and Infrastructure Committee (T&I) Chairman Jim Oberstar (D-MN-8) introduced the "Federal Aviation Administration Act (FAA) of 2009" (H.R. 915). The bill is strikingly similar to the FAA reauthorization bill introduced and passed by the House in the last Congress, and contains the same damaging language for repair stations.

Section 310 of the bill, entitled "Non-certificated Maintenance Providers", mandates that within three years the FAA issue regulations requiring that all "covered maintenance work" on aircraft used to provide air transportation under 14 CFR part 121 be performed by: an individual employed by the air carrier, employed by another part 121 carrier, employed by a part 145 repair station, or a contract maintenance worker working under "direct supervision" of the part 145 repair station or part 121 carrier.

Sec. 310 fails to recognize that use of "non-certificated" entities is a pivotal aspect of the maintenance industry. For example, under this section, the use of an original equipment manufacturer (OEM) to perform work on a component would NOT be allowed, thus eliminating the possibility to use an OEM key functions that are not available from other sources.

Section 303, entitled "Inspection of Foreign Repair Stations," mandates two provisions that will undermine the international aviation industry. Firstly, the section requires that the FAA inspect each foreign part 145 repair station twice annually.
While such repair stations are certainly used to multiple inspections, the section requires that the inspections be completed by FAA personnel and not representatives of foreign civil aviation authorities. Put simply, this undermines the entire bilateral aviation safety agreement (BASA) process. Additionally, the FAA will not be provided the resources to complete such an endeavor and the agency's inability to inspect will become a punishment for the industry. Finally, this section requires drug and alcohol testing at all foreign repair station safety sensitive personnel.
Such a provision oversteps the agency's reach, infringing on the sovereignty of nations where foreign repair stations are based. The European Aviation Safety Agency (EASA) has indicated that the inclusion of the language will undermine the current U.S./EU BASA. If the BASA falls apart, U.S. repair stations holding EASA approval will see a dramatic rise in cost of doing business with European partners.

Finally, H.R. 915 includes in its entirety the Aviation Safety Enhancement Act, a bill which passed the House but failed in the Senate during the last Congress.
Under Subtitle C, "Safety and Protections", the language aims to promote a new "safety culture" in the FAA, but accomplishes little more than creating duplicative safety measures and further straining FAA resources.

Today, the House T&I Committee held a hearing on the bill with witness testimony from the government, industry, and organized labor. ARSA's concerns were represented by Clayton Jones, President and CEO of Rockwell Collins. While several of the aforementioned points will be presented during oral testimony, ARSA will submit written testimony specifying why the language will have detrimental effect on the maintenance industry.

To read the full text of H.R. 915 may be found here.

A summary of the FAA Reauthorization Act of 2009 is available here.