Air Carrier and Commercial Operator Training Programs; Proposed Rule DEPARTMENT OF TRANSPORTATION

SUMMARY: The FAA proposes to revise the training and qualification

requirements for certain air carriers and commercial operators by: (1)

Requiring certain certificate holders operating under part 135, and

permitting certain others, to comply with part 121 training, checking,

and qualification requirements, and (2) mandating Crew Resource

Management (CRM) training requirements for part 121 and certain part

135 operators. The FAA has proposed these rules in order to make some

part 135 training requirements as comprehensive as part 121

requirements and to incorporate recent knowledge about human

performance factors. The proposed rule would also allow certain part

135 certificate holders to take advantage of sophisticated aircraft

simulator training technologies presently available to part 121

certificate holders. By increasing the training and qualification

requirements for certain operators, the proposed rule is expected to

reduce the risk of accidents and incidents. By mandating CRM training

for certificate holders required to comply with part 121 training

requirements, the proposed rule is expected to reduce the number of

accidents and incidents that could be attributed to a lack of crew

communication and coordination.

DATES: Comments must be received on or before March 14, 1995.

ADDRESSES: Send or deliver comments on this notice in triplicate to:

Federal Aviation Administration, Office of the Chief Counsel,

Attention: Rules Docket (AGC-200), Room 915G, Docket No. 27993, 800

Independence Avenue, SW, Washington, DC 20591. Comments must be marked

Docket No. 27993. Comments may be examined in the Rules Docket between

8:30 a.m. and 5 p.m. on weekdays, except Federal Holidays.

FOR FURTHER INFORMATION CONTACT:

Mr. Larry Youngblut, Project Development Branch (AFS-240), Air

Transportation Division, Flight Standards Service, Federal Aviation

Administration, 800 Independence Avenue, SW, Washington, DC 20591;

telephone (202) 267-8096.

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited to participate in the making of this

proposed rule by submitting such written data, views, or arguments as

they may desire. Communications should identify the regulatory docket

or notice number and be submitted in triplicate to the address above.

All communications received on or before the closing date for comments

will be considered by the Administrator before taking further

rulemaking action. Persons wishing the FAA to acknowledge receipt of

their comments submitted in response to this notice must submit with

those comments a pre-addressed, stamped postcard on which the following

statement is made: ``Comments to Docket No. 27993.'' The postcard will

be dated and time stamped and returned to the commenter. All comments

submitted will be available, both before and after the closing date for

comments, in the Rules Docket for examination by interested persons. A

report summarizing each substantive public contact with FAA personnel

concerned with this rulemaking will be filed in the docket.

Availability of NPRM

Any person may obtain a copy of this NPRM by submitting a request

to the Federal Aviation Administration, Office of Public Affairs,

Attention: Public Inquiry Center (APA-230), 800 Independence Avenue,

SW., Washington, DC 20591, or by calling (202) 267-3484. Requests must

identify the notice number of this NPRM. Persons interested in being

placed on the mailing list for future NPRMs should also request a copy

of Advisory Circular No. 11-2A, Notice of Proposed Rulemaking

Distribution System, which describes the application procedures.

Background

Federal Aviation Regulations in parts 121 and 135 of Title 14 of

the Code of Federal Regulations contain rules which specify training

program requirements for air carriers and certain commercial operators.

Those rules specify the qualification requirements of crewmembers,

flight and simulator instructors, check airmen, aircraft dispatchers,

and other operations personnel. The most detailed and rigorous training

and qualification requirements are those contained in subparts N and O

of part 121. Although subparts N and O have been amended a number of

times in recent years, most of the amendments concern the use of

simulators, training devices, or specific training requirements such as

security and the transportation of hazardous materials. No

comprehensive changes have been made to these subparts since December

1969.

The FAA's most immediate concerns regarding the training and

qualification regulations in part 121 and part 135 are twofold. First,

compared to part 121 training regulations, part 135 training

regulations do not provide a balanced mix of training and checking.

Second, current parts 121 and 135 training regulations do not

incorporate recent knowledge about the significance of human

performance factors (e.g., communication, decision-making, leadership,

management) in safe flight operations.

In December, 1986, in response to a Safety Recommendation from the

National Transportation Safety Board (NTSB), the FAA specifically

addressed the human factors training issue by initiating an aviation

behavioral technology program. This ongoing program consists of

projects that, among other things, increase the use of line operational

simulations (LOS) to improve cockpit/cabin communication and

coordination skills, and pilot decision-making skills.

In June 1988, the NTSB issued Safety Recommendation A-88-71

concerning CRM training. The NTSB issued the recommendation as a result

of a Northwest Airlines crash on August 16, 1987, in which 148

passengers, 6 crewmembers, and 2 people on the ground were killed. The

NTSB noted that both pilots had received single-crewmember training

during their last simulator training and proficiency checks and the

last CRM training they had both received was 3.5 hours of ground school

(general) CRM training in 1983. The NTSB implied that the accident

might have been prevented had the flight crew received adequate CRM

training.

After soliciting ideas from other government agencies and from the

aviation community, the FAA published a proposed Special Federal

Aviation Regulation (SFAR) and accompanying draft advisory circular

(AC) in the Federal Register (54 FR 7670, February 22, 1989). These

documents proposed a voluntary, alternative method of complying with

the training requirements in current regulations. The voluntary

alternative training is called an ``advanced qualification program''

(AQP). After considering comments received, the FAA issued a final SFAR

58, Advanced Qualification Program, and an accompanying advisory

circular (55 FR 40262, October 2, 1990). This voluntary program applies

to certificate holders operating under part 121 or part 135 who elect

the alternative requirements of AQP which includes CRM training and

evaluation, increased use of LOS, use of training centers, and the

evaluation of flight training devices and flight simulators.

To date, the larger and more sophisticated air carriers have taken

advantage of the voluntary program. The FAA expects this to be the case

for the foreseeable future. The FAA recognizes that many operators,

particularly smaller operators, may be unable to take advantage of the

voluntary program. Since these operators will elect not to participate

in the voluntary AQP program and will instead comply with current

training requirements in parts 121 and 135, the FAA proposes to amend

the current training requirements of parts 121 and 135 to address the

most immediate concerns regarding improved aircrew training and

qualification standards. In particular, all certificate holders

operating under part 121, and those certificate holders operating under

part 135 who are authorized or required to follow part 121 training and

qualification requirements, would be required to include CRM in their

training programs.

Another recommendation from other government agencies and the

aviation community was that commuter air carriers conducting operations

under part 135 with airplanes that require two pilot crewmembers should

also be required to comply with the training, checking, and

qualification requirements of part 121. Many regional air carriers

operate under both parts 121 and 135. The Regional Airline Association,

on December 10, 1991, petitioned the FAA for an exemption to allow its

members to train, check, and qualify their pilots under part 121 rather

than under part 135. The FAA granted exemption No. 5450 on May 8, 1992,

and now over 60% of those certificate holders that operate under both

parts 121 and 135 have obtained approval to train, check, and qualify

their pilots pursuant to part 121.

The FAA has issued two NPRM's that are relevant to this rulemaking.

Notice No. 92-10 (57 FR 35888, August 11, 1992) relates to the use of

training centers by certificate holders who do not elect to come under

an AQP. The second NPRM, Notice No. 93-1 (58 FR 15730, March 23, 1993),

is of particular importance to those certificate holders who operate

under part 135 that would be affected by the mandatory requirements of

this proposal. If the pilot operating and experience requirements

proposed in Notice No. 93-1 are adopted, the new crew pairing and

consolidation of knowledge and skills requirements would apply to those

part 135 operators who are required or who elect to comply with the

requirements of subparts N and O of part 121. Therefore, affected part

135 certificate holders are invited to consider the applicability of

Notice No. 92-10 and Notice No. 93-1 to their operations when

commenting on this notice. By this notice, the FAA is not reopening the

comment period for those NPRM's. The FAA could adopt the proposals in

those NPRM's and still consider whether to apply those provisions to

part 135 certificate holders in this proposed rulemaking.

The Proposed Rule

General Applicability

The proposed amendments to part 121 would apply to all certificate

holders operating under part 121 and to certain certificate holders

operating under part 135 who would be required to comply with the part

121 training qualification requirements. The proposed requirements

would also apply to certain part 135 certificate holders if they apply

for and receive FAA authorization to comply with the part 121 training

and qualification requirements.

Commuter Operations Conducted Under Part 135

Part 135 commuter operations serving small and medium sized

communities carry millions of passengers every year. The Regional

Airline Association (RAA), whose membership consists primarily of

commuter air carriers, estimates that more than 61 million passengers

will be carried by RAA member airlines in 1997. Comprehensive training

requirements, including CRM training, are important to the safety of

these operations. Part 121 training would benefit these operations

because it provides more emphasis on training, whereas current part 135

rules rely more heavily on the testing and checking requirements set

forth in subparts G and H of part 135. Part 121 also allows greater use

of simulators resulting in two benefits:

(1) Under Sec. 121.407(c), simulator training can be substituted

for repetitive proficiency checks (Sec. 121.441) and certain recency

requirements (Sec. 121.439). This allows for greater flexibility and a

more effective mix of training and checking activities.

(2) Simulator training may include hazardous scenarios that would

be imprudent to be included in inflight training. This also increases

pilot proficiency.

The proposed amendments to Secs. 121.431, 135.3, 135.241, 135.291,

and 135.321(a) require the following certificate holders conducting

commuter operations under part 135 to comply with the training,

checking, and qualification requirements of part 121, subparts N and O,

in place of the requirements of subparts E, G, and H of part 135: (1)

Those that conduct commuter operations with airplanes for which two

pilots are required by aircraft type certification rules, and (2) those

that conduct commuter operations with airplanes having a passenger

seating configuration, excluding any pilot seat, of 10 seats or more.

The term ``commuter operations'' will apply to both intrastate and

interstate operations with the frequency of operations set forth in the

definition of ``Commuter Air Carrier'' in SFAR 38-2. Thus, intrastate

operations as described above with a frequency of operations described

in SFAR 38-2's definition of ``commuter air carrier'' would also be

subject to the proposals in this NPRM.

The proposed rule also allows the Administrator to authorize any

other certificate holders that conduct operations under part 135 to

comply with the training, checking, and qualification requirements of

subparts N and O of part 121. These operations would include commuter

operations using aircraft that do not meet the criteria outlined above

and all unscheduled operations conducted under part 135. However,

because of the size and scope of these operations, the FAA proposes to

permit these certificate holders to comply with the operating

experience requirements in Sec. 135.244 instead of those in

Sec. 121.434.

Each certificate holder operating under part 135 that would be

required under proposed Sec. 135.321(b) to comply with the training and

qualification requirements of part 121, subparts N and O, would also be

required to submit and obtain FAA approval of a transition plan

converting from part 135 to the part 121 training and checking

requirements. In the proposed plan the certificate holder should

address issues such as: (1) whether currently employed crewmembers need

additional training to meet minimum part 121 training and qualification

requirements; and (2) whether and how the certificate holder's training

curriculum will be modified to meet part 121 requirements.

Although not part of the transaction plan, the proposed change to

Sec. 121.405 would also require certain part 135 certificate holders to

modify their training program manual contents. Under proposed

Sec. 121.405(g) a certificate holder may request a reduction in the

programmed hours of ground training from the minimum hours required

under present Sec. 121.419. A reduction may be warranted in cases where

a certificate holder shows that the airplanes it operates under part

135 are less complex than those generally operated under part 121.

Crew Resource Management (CRM) Training

A major objective of this proposed rule is to require all

certificate holders operating under part 121 and certain certificate

holders operating certain airplanes under part 135 to provide CRM

training. Over the last decade, a number of air carrier incidents and

accidents have been attributed, in part, to the lack of CRM skills

(e.g., communication, decision-making, leadership, management). Over

the last decade 24 part 121 accidents were reported by the NTSB as

having resulted, in part, from CRM-related causes. National Aeronautics

and Space Administration (NASA) studies over the last ten years

indicate more than 60% of fatal air carrier accidents were not directly

linked to mechanical failure or lack of pilot skills, but rather to

human error. These NASA studies emphasize a training deficiency in

areas related to human performance factors, such as poor group

decisionmaking, ineffective communication, inadequate leadership, and

poor task and resource management. The NTSB's study, ``A Review of

Flightcrew-involved Major Accidents of U.S. Air Carriers 1978 through

1990,'' states ``a comprehensive CRM program is one tool an air carrier

can use to improve both decisionmaking and monitoring/challenging by

crewmembers.'' Since 1990 the NTSB has issued two safety

recommendations (A-89-124 and A-93-37) that recommend that CRM training

be added to crewmember training programs. For a list of FAA and NASA

publications and reports and related research findings and

publications, see AC 120-51A, as amended, ``Crew Resource Management

Training.''

In addition, certain events may occur during flight where the

activities of flight crewmembers and flight attendants must be

coordinated. One of the prerequisites for crew coordination is

effective communication between all crewmembers. In a 1986 survey of

safety representatives and flight attendants, only 37% of the flight

attendants and 60% of the pilots said that they thought communication

between the flight crew and cabin crew was adequate.

Similarly, clear communication between aircraft dispatchers and

flight crewmembers is essential to flight safety. Poor communication

between dispatchers and the flight crew may jeopardize flight safety.

CRM training teaches crewmembers and aircraft dispatchers to use

effectively all resources available to the crew (e.g. hardware,

software, and all persons involved in aircraft operation) to achieve

safe and efficient flight operations. Proposed amendments to

Secs. 121.404, 121.419(a)(1), 121.421(a)(1), 121.422(a)(1), and

121.427(b)(4) require that each ground training portion of an approved

training program provide approved CRM training to flight crewmembers,

flight attendants, and aircraft dispatchers. If this NPRM becomes a

final rule, part 135 certificate holders who would be required or who

successfully obtain FAA authorization to conduct training under part

121 would also be required to provide CRM training as part of their

approved training programs.

The FAA anticipates that for a CRM training program to be approved

it would include three distinct components: (1) An indoctrination/

awareness component during which CRM issues are defined and discussed;

(2) a recurrent practice and feedback component during which trainees

gain experience with CRM techniques; and (3) a continuing reinforcement

component which ensures that CRM principles are addressed throughout

the trainee's employment with the certificate holder. Advisory Circular

(AC) 120-51, as amended, ``Crew Resource Management Training,'' and AC

121-XX, ``Dispatcher Resource Management Training'' provide basic

guidance in establishing approved CRM training. (In this notice, the

term ``CRM'' includes both crew resource management and dispatcher

resource management.) DOT/FAA/RD-92-26, ``Crew Resource Management: An

Introductory Handbook,'' goes into further detail.

Proposed Sec. 121.404 includes initial CRM training for persons

already employed by the certificate holder, and for new employees of

the certificate holder, unless a new employee has completed the

applicable initial CRM training from another certificate holder. The

FAA anticipates that this component will be very similar for all

certificate holders.

CRM initial indoctrination/awareness training is a curriculum

segment with a variety of instructional methods, which can include

lectures, discussions, films, practice in an operational setting or a

LOS session, and feedback with a facilitator. CRM initial

indoctrination/awareness training must be provided to all crewmembers,

including flight attendants, and to aircraft dispatchers; this training

is in addition to existing training. Under proposed Sec. 121.406, the

FAA may credit some CRM/DRM training received before the compliance

date in the proposed rule. Some operators have been providing CRM/DRM

training under AQP or under voluntary programs. In appropriate

circumstances, the FAA may credit part or all of such training toward

the initial ground CRM/DRM training which would be required by proposed

sections 121.419, 121.421, and 121.422.

The recurrent practice and feedback component of CRM training is

best accomplished through the use of simulators and video equipment.

However, if the use of simulators is not practical, CRM scenarios can

be created without simulators and practice can be tape recorded to

provide feedback. Feedback should be directed by a facilitator who has

had appropriate CRM training. Practice and feedback provide

participants with self and peer critiques to improve communication,

decision-making, and leadership skills.

The FAA would approve a recurrent training program under proposed

Sec. 121.427 that included CRM recurrent practice and feedback and

continuing reinforcement training components, and a refresher

curriculum segment in the principles of CRM. Ideally, for flight

crewmembers continuing reinforcement may be accomplished, as authorized

in proposed Sec. 121.427(b)(4), during an approved simulator line

operational flight training (LOFT) session. This could include use of

special purpose operational training (SPOT) which is a type of line

operational simulation (LOS) that may be used to train coordinated crew

performance in specific subjects such as windshear training, use of

special navigation equipment, etc. CRM reinforcement may be

incorporated into existing SPOT scenarios. It may also be incorporated

into LOS-like scenarios that do not use simulators. Advisory Circular

(AC) 120-35B, Line Operational Simulators: Line Oriented Flight

Training, Special Purpose Operational Training, Line Operational

Evaluation, provides suggested guidelines for the design and

implementation of LOS. Recurrent CRM training will be provided to all

crewmembers and aircraft dispatchers.

The FAA estimates that the proposed CRM training requirement will

increase the present minimum programmed hours of instruction for

initial and recurrent training. For initial training for pilots and

flight engineers, the FAA estimates that CRM training will add 12 hours

to present requirements. For initial training for flight attendants and

aircraft dispatchers, the increase is estimated to be 8 hours. For

recurrent training, the estimated increase is 4 hours for pilots and

flight engineers and 2 hours for flight attendants and aircraft

dispatchers. To reflect these estimated increases in programmed hours

of training, changes are proposed to Sec. Sec. 121.419(b) (1) and (2),

121.421(c) (1) and (2), 1212.422(c) (1) and (2) and 121.427(c). The FAA

invites comments on these estimates and, if adequate justification is

received, will consider reducing the increases in minimum required

hours in the final rule. In this regard, the FAA points out that under

existing regulations (i.e., Sec. 121.405(d)) individual certificate

holders may be granted reductions in programmed hours when justified

under that paragraph. When the Administrator approves a request to

reduce programmed hours of training, a copy of the Administrator's

statement is included in the training program curriculum pursuant to

Sec. 121.403(b)(6).

Editorial Change

A proposed change to Sec. 121.135(b)(15) would make it clear that

the certificate holder's manual must include the entire training

program curriculum required under Sec. 121.403, not just the program

affecting airmen.

Effective Date and Compliance Dates

The FAA is proposing an effective date of 90 days after these

proposals are published as a final rule. By that date certificate

holders operating under part 135 who are required to comply with

applicable part 121 training and qualification requirements, would have

to submit the transition plan required under proposed Sec. 135.321(b).

The proposed compliance date in Sec. 135.10 for training and qualifying

under part 121 rules is 1 year after the effective date of the final

rule.

For initial CRM training, the FAA proposes a compliance date 2

years after the effective date of the final rule for flight

crewmembers, and 3 years after the effective date of the final rule for

flight attendants and aircraft dispatchers. After the applicable date,

a certificate holder would be prohibited from using a crewmember or

dispatcher unless that person has completed approved crew or dispatcher

resource management initial training. Since a large number of

certificate holder employees are required to have this training, the

delayed compliance date will allow sufficient time to train instructors

conducting CRM training, and then, in turn, provide this training to

all crewmembers and dispatchers.

The FAA requests comments on the appropriateness of the proposed

effective and compliance dates.

Regulatory Evaluation Summary

Proposed changes to Federal regulations must undergo several

economic analyses. First, Executive Order 12866 directs that each

Federal agency shall propose or adopt a regulation only upon a reasoned

determination that the benefits of the intended regulation justify its

costs. Second, the Regulatory Flexibility Act of 1980 requires agencies

to analyze the economic effect of regulatory changes on small entities.

Third, the Office of Management and Budget directs agencies to assess

the effect of regulatory changes on international trade. In conducting

these analyses, the FAA has determined that this proposed rule would

generate benefits that justify its costs and does not meet the criteria

of ``a significant regulatory action'' as defined in the Executive

Order but is significant under the Department of Transportation

Regulatory Policies and Procedures. The proposal would not have a

significant impact on a substantial number of small entities. And, the

proposal would not constitute a barrier to international trade. These

analyses, available in the docket, are summarized below.

Costs

This section discusses costs of the new requirements that this NPRM

would impose on parts 121 and 135 operators. The regulatory evaluation

assumes a 7 percent discount rate as mandated by the Office of

Management and Budget (OMB). The analysis also uses a 6 percent growth

rate for commuters and a 4 percent growth rate for air carriers for the

next decade.

The new hire rate affects the amount of initial training required.

This rate varies widely within the industry depending on economic

cycles, birth and death of airline companies, and long-term industry

growth. The FAA has developed two cost estimates. The first uses a 10

percent and the second a 20 percent new hire rate. Costs for a single

year refer to those using a 20 percent new hire rate (the higher of the

two costs), while for the total 10 year costs the analysis shows a

range representing the difference between the 10 percent and 20 percent

new hire rates.

Each operator will incur a small administrative effort related to

establishing these new requirements within its existing training

program. The FAA estimates that operators on average will incur a one

time burden of about 8 hours of administrative time. This relatively

small burden is subsumed in the non-wage training costs.

Part 121 Training for Part 135 Crews

The proposed rule would require part 121 training standards for

part 135 crewmembers of airplanes either certificated for two pilots or

having 10 or more passenger seats. The amendment exempts currently

employed part 135 pilots and flight attendants from initial and

transitional part 121 training. However, it imposes a recurrent

training requirement on currently employed crewmembers to meet part 121

qualifying standards during their first recurrent training. New

crewmembers under part 135 would receive initial part 121 training.

Many commuter airlines already train their cockpit crew at a level

comparable to part 121 operators. Primarily, this group consists of

those airlines where the carrier operates aircraft under both parts 121

and 135. The FAA estimates that the proposed rule would affect 3,400

employees: 1,100 pilots-in-command (PICs), 1,400 second-in-command

officers (SICs), and 900 flight attendants who work for strictly part

135 operators. The hourly wage rate (including benefits) equals $43 for

PICs, $28 for SICs, and $23 for flight attendants who work for the

regional airlines. Travel and per diem expenses equal $250 per round

trip and training expense totals $90 a day.

For 1995, initial and transitional training costs for part 135

crewmembers would increase by about $1.9 million; first year recurrent

cost of training (expected to be more extensive than later recurrent

training) would increase by $3.0 million. Recurrent training cost after

the first year would increase by $2.1 million. For the period 1994

through 2003, the discounted incremental cost to part 135 operators

ranges from $27.1 (10 percent new-hire rate) to $35.7 million (20

percent new-hire rate).

CRM Training

The NPRM would require parts 121 and 135 operators affected by the

proposal to train all crewmembers in cockpit resource management (CRM).

Although the proposed rule would provide some flexibility in curricula

design, an FAA-approved CRM training program would include: (1)

Awareness of CRM issues where aspects of the problem are discussed; (2)

practice and feedback where crewmembers learn CRM techniques; and (3)

reinforcement where CRM principles are strengthened.

Part 121 CRM Training Costs

The FAA estimates that part 121 personnel requiring CRM equals

about 32,600 pilots-in-command; 33,900 copilots, 10,000 flight

engineers, 84,000 flight attendants; and 1,100 dispatchers. Under the

proposed rule, the FAA projects that PICs, SICs, and flight engineers

would receive 12 hours of CRM awareness training and 4 hours annually

of CRM refresher training. Flight attendants and dispatchers would

receive 8 hours initial and 2 hours of recurrent training.

For PICs, SICs, and flight engineers, the proposal would require

CRM awareness training within two years of the effective date of the

proposed rule; for flight attendants and dispatchers, it would require

completion within three years. All crewmembers would receive recurrent

CRM training annually.

The number of pilots undergoing initial training in the two-year

phase-in equals the total number of pilots plus new hires. The hourly

wage rate (including benefits) used in this analysis equals $55 for

PICs, $38 for SICs, $38 for flight engineers, $27 for flight

attendants, and $18 for dispatchers. The initial training during the

first two years would cost approximately $55 million each year. Initial

training would amount to about $10 million annually after the two-year

phase-in period. Recurrent training would total about $32 million

annually.

Initial training for flight attendants and dispatchers over the

three-year phase-in period would total $17 million. Initial and

recurrent training for flight attendants and dispatchers after the

third year would be $4 million and $17 million, respectively

Over the period 1995 through 2004, the discounted cost for part 121

CRM training ranges from $473 (10 percent new hire rate) to $569

million (20 percent new hire rate).

Part 135 CRM Training

The FAA estimates that the NPRM would require CRM for 3,360

commuter airline flight crewmembers. CRM awareness training would cost

$300 for 12 hours of PIC and SIC training and $200 for 8 hours of

flight attendant training.

As in the case of the part 121 CRM training, the proposed rule

would require CRM awareness flight crew training within two years of

the effective date of the rule; for flight attendants, the proposed

rule would require completion within three years. All crewmembers would

receive annual recurrent CRM training. The hourly wage rate (including

benefits) used in this analysis equals $43 for PICs, $28 for SICs, and

$14 for flight attendants.

Part 135 CRM awareness training for the two-year phase-in period

under the NPRM would cost $1.6 million, and after the second year the

training would cost $0.5 million annually. Recurrent CRM commuter pilot

instruction would cost $0.7 million annually.

CRM awareness training for part 135 flight attendants would cost

$0.4 million annually for the three-year phase-in period. The cost

would total $64,000 per year, thereafter. Recurrent training would cost

approximately $137,000 annually. Over the decade, CRM training would

the industry cost would range from $9.5 (10 percent new hire rate) to

$11.8 million (20 percent new hire rate).

Total Costs

The total discounted cost of the proposed rule would range from

$510 to $616 million over the next 10 years. The cost of CRM for part

121 personnel makes up the largest portion of the cost estimate ranges

from $473 to $569 million. The discounted 10-year cost for commuter

personnel CRM would vary from $9 to $12 million. The training upgrade

for large commuter aircraft would range from $27 to $36 million.

Benefits

The proposed rule would improve aviation safety by upgrading

training standards for pilots flying part 135 aircraft either certified

for two pilots or having 10 or more passenger seats. Also, the NPRM

would instruct air carrier (part 121) and commuter (part 135) crews in

CRM techniques. This summarizes the analysis of benefits from this

training.

Part 135 Pilot Training Upgrade

During 1982 through 1992, pilot error was a probable cause in 39

accidents involving part 135 aircraft of the type affected by this

proposal. These accidents caused 93 fatalities and 55 serious injuries.

During this same period, commuter operators flew 41.15 million flights

resulting in a commuter accident rate due to pilot error of .9478

accidents per million commuter flights.

Projected benefits equal the product of the accident rate times

projected flights times the average cost of pilot-error accidents. For

instance, in 1994 the estimated value of benefits equals:

[.9478 ACCIDENTS/MILLION FLIGHTS] x [5.0 MILLION FLIGHTS] x [$7.838

MILLION]=$37.144 MILLION

If the proposed rule could reduce the pilot-error accident rate to

zero, the total value over the period 1995 through 2004 would total

$418 million. The discounted value of these benefits equals $289

million. However, at most the rule would reduce the part 135 pilot-

error accident rate down to the rate sustained by part 121 operators.

The FAA estimates the pilot-error accident rate for part 121 pilots

to equal 0.7 accidents per million flights. Since the pilot-error

accident rate for part 135 operators equals 0.9478 accidents per

million, the proportion of available benefits for part 135 flights

equal just over one-fourth accident per million flights [((0.9478-0.7)/

0.9478))=0.26]. Also reducing the available benefits, the commuter

operators would not complete training for two years. Hence, the

estimated value of the benefits of this proposed rule totals $62

million.

Part 135 Crew Resource Management Training

During the period 1982 through 1992, 13 part 135 accidents resulted

from crew coordination problems, resulting in an accident rate of 0.158

per million flights. These accidents resulted in 85 fatalities, 35

serious injuries, and 43 minor injuries. The average benefit value of

avoiding an accident including fatalities, injuries, value of aircraft,

and accident investigation costs equals $19.545 million.

The FAA estimated the value of potential benefits by multiplying

the average value of a part 135 CRM-related accident ($19.545 million)

by the number of potential accidents (accident rate times projected

flights). For 1995, the estimate equals:

[.158 ACCIDENTS/MILLION FLIGHTS] x [5.0 MILLION FLIGHTS] x [$19.545

MILLION] = $15.411 MILLION

The discounted benefits over the next decade equal $98 million.

Part 121 Crew Resource Management Training

Between 1982 and 1992, there were 23 part 121 air carrier accidents

reported by NTSB that resulted, in part, from CRM-related causes. These

accidents caused 324 fatalities and 91 serious injuries. The part 121

CRM accident rate equals 0.3938 accidents per million flights.

The FAA estimated the value of potential benefits by multiplying

the part 121 CRM accident rate by the number of flights times the

average value per accident. The CRM benefits for 1995, for instance,

equal:

[.3938 ACCIDENTS/MILLION FLIGHTS] x [6.6 MILLION FLIGHTS] x

[$35.527 MILLION] = $87.139 MILLION

Over the next 10 years, the FAA projects the discounted value of

benefits is $619 million. However, about one-third of part 121 pilots

(those not in AQP) will begin training in 1995 and airlines would

finish training in late 1996. The estimated potential benefits for part

121 CRM training equals $581 million.

Benefit-Cost Comparison

Part 135 Training Upgrade

Benefits from upgrading part 135 flight crew training to the part

121 level would result in a reduction in pilot-error commuter

accidents. The FAA estimates that the expected benefits of this

provision would total $62 million over the next decade. This evaluation

estimates that the discounted training costs for large part 135

operators would increase anywhere from $27 to $36 million. Hence, the

FAA concludes that the benefits of this provision exceed its costs.

CRM Training for Part 121 Operators

The FAA calculates the discounted benefits from requiring CRM

training for part 121 personnel to equal $581 million. The estimated

additional cost to airlines would range from $473 to $569 million over

the decade. Hence, the FAA determines that this proposed provision is

cost beneficial.

CRM Training for Part 135 Operators

The FAA estimates the benefits from requiring CRM training for part

135 personnel to equal $98 million over the next decade. The cost of

training would range from an additional $9 to $12 million for part 135

operators. Hence, the FAA determines that this requirement is cost

beneficial.

Each provision of this proposal has potential benefits in excess of

expected costs. Hence, the FAA concludes that the proposal is cost

beneficial.

International Trade Impact

The NPRM would have small impact on U.S. air carriers that foreign

air carriers would not have to bear. The FAA estimates a total of 6.2

billion total enplanements with a total of CRM training over the next

10 years of about $581 million. Hence, the per emplanement cost over

the next 10 years for part 121 carriers increases by about $0.09 per

enplanement.

Initial Regulatory Flexibility Determination

The Regulatory Flexibility Act of 1980 (RFA) was enacted by

Congress to ensure that small entities are not unnecessarily and

disproportionately burdened by Government regulations. The RFA requires

agencies to review rules that may have ``a significant economic impact

on a substantial number of small entities.''

The proposed rule would affect those small entities regulated by

parts 121 and 135. The FAA's criteria for ``a substantial number'' are

a number that is not less than 11 and which is more than one-third of

the small entities subject to the proposed rule. For air carriers, a

small entity has been defined as one who owns, but does not necessarily

operate, 9 aircraft or less. The relevant FAA criteria for ``a

significant impact'' is an incremental cost of $61,000 per year for a

scheduled air carrier with a fleet size of 60 seats or fewer, and

$110,100 for a scheduled air carrier with aircraft fleet size of more

than 60 seats.

The FAA has identified 35 part 121 operators who operate 9 or fewer

aircraft. The FAA assumes that an average crew size consists of one

pilot-in-command, one second-in-command, and three flight attendants.

The FAA also assumes that operators employ two crews per plane.

The FAA estimates that annualized CRM training for each aircraft

would amount to $6,120 annually. This estimate includes initial

training and recurrent training averaged over the decade for a crew of

two pilots (PIC and SIC) and four flight attendants. The analysis

assumes three crews per aircraft and a 20 percent turnover. Hence, the

expected CRM training cost will not exceed $55,080 (9 times $6,120).

This cost falls below the ``significant impact'' threshold cost of

$110,100. Hence, CRM training costs would not impose a significant

burden on a substantial number of small part 121 operators.

Seventy-three part 135 scheduled operators affected operate 9 or

fewer aircraft. The FAA estimates an annualized cost of $13,180 for

part 135 training upgrade for crewmembers for one aircraft; CRM would

carry an annualized cost of $4,000. The total training costs equal

$17,180 ($13,180 + $4,000). This estimate assumes three crews per

aircraft with each crew consisting of a PIC, a SIC, and two flight

attendants. This estimate includes initial training and recurrent

training averaged over the decade and a 20 percent markup for turnover.

Training costs for small entities with 4 to 9 aircraft would exceed the

threshold (4 x $17,180 = 68,720). However, FAA data shows 16

scheduled part 135 operators of the type affected by this NPRM that

operate between 4 and 9 aircraft. Since the number of companies

represents about 22 percent of the 73 operators affected by this

proposed rule, the FAA concludes that the proposed rule would not have

a significant economic impact on a significant number of small part 135

scheduled operators.

Federalism Implications

The proposed regulations do not have substantial direct effects on

the states, on the relationship between the national government and the

states, or on the distribution of power and responsibilities among

various levels of government. Thus, in accordance with Executive Order

12612, it is determined that such a regulation does not have federalism

implications warranting the preparation of a Federalism Assessment.

Paperwork Reduction Act

The reporting and recordkeeping requirement associated with this

proposed rule is being submitted to the Office of Management and Budget

for approval in accordance with 44 U.S.C. Chapter 35 under the

following:

OMB No: New;

Administration: FAA;

Title: Air Carrier Training Programs;

Need for Information: If adopted, this NPRM requires each part 121

and each part 135 certificate holder that conducts scheduled operations

to develop a CRM training program and a transition plan to the training

and qualification requirements of part 121;

Proposed Use of This Information: The FAA requires this information

to evaluate each certificate holder's proposed CRM training program and

to ensure certificate holders are providing the highest possible level

of training and qualification standards;

Frequency: One-time;

Burden Estimate: 1,760 total hours;

Respondents: Parts 121 and 135 certificate holders;

Form(s): None;

Average Burden Hours Per Respondent: 8;

For further information contact: The Information Management

Division, M-34, Office of the Secretary of Transportation, 400 Seventh

Street, SW., Washington, DC 20590, (202) 366-4735 or the Office of

Management and Budget, Office of Information and Regulatory Affairs,

Desk Office for the FAA, New Executive Office Building, Room 3228,

Washington, DC 20503, (202) 395-7340. It is requested that the comments

sent to OMB also be sent to the FAA rulemaking docket for this proposed

action.

Conclusion

For the reasons set forth under the heading ``Regulatory

Analysis,'' the FAA has determined that this proposed regulation: (1)

is a significant rule under Executive Order 12866; and (2) is a

significant rule under Department of Transportation Regulatory Policies

and Procedures (44 FR 11034; February 26, 1979). Also, for the reasons

stated under the headings ``Trade Impact Statement'' and ``Regulatory

Flexibility Determination,'' the FAA certifies that the proposed rule

will not have a significant economic impact on a substantial number of

small entities. A copy of the full regulatory evaluation is filed in

the docket and may also be obtained by contacting the person listing

under FOR FURTHER INFORMATION CONTACT.

List of Subjects

14 CFR part 121

Air carriers, Aircraft, Airmen, Air safety, Air transportation,

Aviation safety, Drug abuse, Drug testing, Narcotics, Reporting and

recordkeeping requirements, Safety, Transportation.

14 CFR part 135

Air carriers, Aircraft, Airmen, Air taxis, Air transportation,

Airworthiness, Aviation safety, Reporting and record keeping

requirements, Safety.

The Proposed Amendment

The Federal Aviation Administration proposes to amend parts 121 and

135 of the Federal Aviation Regulations [14 CFR parts 121 and 135] as

follows:

PART 121--CERTIFICATION AND OPERATIONS: DOMESTIC, FLAG, AND

SUPPLEMENTAL AIR CARRIERS AND COMMERCIAL OPERATORS OF LARGE

AIRCRAFT

1. The authority citation for part 121 continues to read as

follows:

Authority: 49 U.S.C. app. 1354(a), 1355, 1356, 1357, 1401, 1421-

1430, 1472, 1485, and 1502; and 49 U.S.C. 106(g).

2. Section 121.135(b)(15) is revised to read as follows:

Sec. 121.135 Contents.

* * * * *

(b) * * *

(15) Each training program curriculum required by Sec. 121.403.

* * * * *

3. Section 121.404 is revised to read as follows:

Sec. 121.404 Compliance dates: Crew and Dispatcher resource management

training.

After [insert date 2 years after the effective date of the final

rule], no certificate holder may use a person as a flight crewmember,

and after [insert date 3 years after the effective date of the final

rule], no certificate holder may use a person as a flight attendant or

aircraft dispatcher unless that person has completed approved crew

resource management (CRM) or dispatcher resource management (DRM)

initial training, as applicable, with that certificate holder or with

another certificate holder.

4. Section 121.405 is amended by adding new paragraphs (f) and (g)

to read as follows:

Sec. 121.405 Training program and revision: Initial and final

approval.

* * * * *

(f) Each certificate holder described in Sec. 135.3(b) and (c) of

this chapter must include the material required by Sec. 121.403 in the

manual required by Sec. 135.21 of this chapter.

(g) The Administrator may grant a deviation to certificate holders

described in Sec. 135.3(b) and (c) of this chapter to allow reduced

programmed hours of ground training required by Sec. 121.419 if it is

found that a reduction is warranted based on the certificate holder's

operations and the complexity of the make, model, and series of the

airplanes used.

5. Section 121.406 is added as follows:

Sec. 121.406 Reduction of CRM/DRM Programmed Hours based on Credit for

Previous CRM/DRM Training

(a) For flightcrew members, the Administrator may credit CRM

training received before [insert date 2 years after the effective date

of the final rule] toward all or part of the initial ground CRM

training required by Sec. 121.419.

(b) For flight attendants, the Administrator may credit CRM

training received before [insert date 3 years after the effective date

of the final rule] toward all or part of the initial ground CRM

training required by Sec. 121.421.

(c) For aircraft dispatchers, the Administrator may credit CRM

training received before [insert date 3 years after the effective date

of the final rule] toward all or part of the initial ground CRM

training required by Sec. 121. 422.

(d) In granting credit for initial ground CRM or DRM training, the

Administrator considers training aids, devices, methods, and procedures

used by the certificate holder in a voluntary CRM or DRM program or in

an AQP program that effectively meets the quality of an approved CRM or

DRM initial ground training program under Secs. 121.419, 121.421, or

121.422 as appropriate.

6. Section 121.419 is amended by redesignating paragraph

(a)(1)(viii) as paragraph (a)(1)(ix), adding a new paragraph

(a)(1)(viii), and revising paragraph (b) to read as follows:

Sec. 121.419 Pilots and flight engineers: Initial, transition, and

upgrade ground training.

(a) * * *

(a) * * *

(viii) Approved crew resource management initial training.

* * * * *

(b) Initial ground training for pilots and flight engineers must

consist of at least the following programmed hours of instruction in

the required subjects specified in paragraph (a) of this section and in

Sec. 121.415(a) unless reduced under Sec. 212.405 or Sec. 121.406:

(1) Group I airplanes:

(i) Reciprocating powered, 76 hours; and

(ii) Turbopropeller powered, 92 hours.

(2) Group II airplanes, 132 hours.

7. Section 121.421 (a)(1) and (c) are revised to read as follows:

Sec. 121.421 Flight attendants: Initial and transition ground

training.

(a) * * *

(1) General subjects--

(i) The authority of the pilot in command;

(ii) Passenger handling, including the procedures to be followed in

the case of deranged persons or other persons whose conduct might

jeopardize safety; and

(iii) Approved crew resource management initial training.

* * * * *

(c) Initial ground training for flight attendants must consist of

at least the following programmed hours of instruction in the required

subjects specified in paragraph (a) of this section and in

Sec. 121.415(a) unless reduced under Sec. 121.405 or Sec. 121.406:

(1) Group I airplanes:

(i) Reciprocating powered, 16 hours; and

(ii) Turbopropeller powered, 16 hours.

(2) Group II airplanes, 24 hours.

8. Section 121.422 is amended by revising paragraphs (a)(1)(vii)

and (a)(1)(viii), by adding a new paragraph (a)(1)(ix), and by revising

paragraph (c) to read as follows:

Sec. 121.422 Aircraft dispatchers: Initial and transition ground

training.

(a) * * *

(1) * * *

(vii) Prevailing weather phenomena and the available sources of

weather information;

(viii) Air traffic control and instrument approach procedures; and

(ix) Approved dispatcher resources management (DRM) initial

training.

* * * * *

(c) Initial ground training for aircraft dispatchers must consist

of at least the following programmed hours of instruction in the

required subjects specified in paragraph (a) of this section and in

Sec. 121.415(a) unless reduced under Sec. 121.405 or Sec. 121.406:

(1) Group I airplanes:

(i) Reciprocating powered, 38 hours; and

(ii) Turbopropeller powered, 48 hours.

(2) Group II airplanes, 48 hours.

9. Section 121. 427 is amended by adding a new paragraph (b)(4) and

by revising the introductory text of paragraph (c) and paragraphs

(c)(1), (c)(3), and (c)(4) to read as follows:

Sec. 121.427 Recurrent training.

* * * * *

(b) * * *

(4) Approved recurrent CRM training. For flight crewmembers, this

training or portions thereof may be accomplished during an approved

simulator line operational flight training (LOFT) session. The

recurrent CRM training requirement does not apply until a person has

completed the applicable initial CRM training required by

Secs. 121.419, 121.421, or 121.422.

* * * * *

(c) Recurrent ground training for crewmembers and aircraft

dispatchers must consist of at least the following programmed hours

unless reduced under Sec. 121.405:

(1) For pilots and flight engineers--

(i) Group I, reciprocating powered airplanes, 20 hours;

(ii) Group I, turbopropeller powered airplanes, 24 hours; and

(iii) Group II airplanes, 29 hours.

* * * * *

(3) For flight attendants)--

(i) Group I, reciprocating powered airplanes, 6 hours;

(ii) Group I, turbopropeller powered airplanes, 7 hours; and

(iii) Group II airplanes, 14 hours.

(4) For aircraft dispatchers--

(i) Group I, reciprocating powered airplanes, 10 hours;

(ii) Group I, turbopropeller powered airplanes, 12 hours; and

(iii) Group II airplanes, 22 hours.

* * * * *

10. Section 121.431(a) is revised to read as follows:

Sec. 121.431 Applicability.

(a) This subpart prescribes crewmember qualifications for all

certificate holders except where otherwise specified. The qualification

requirements of this subpart also apply to each certificate holder that

conducts commuter operations under part 135 of this chapter with

airplanes for which two pilots are required by the aircraft type

certification rules of this chapter, or with airplanes having a

passenger seating configuration, excluding any pilot seat, of 10 seats

or more. The Administrator may authorize any other certificate holder

that conducts operations under part 135 to comply with the

qualification requirements of this subpart, except that these

certificate holders may choose to comply with the operating experience

requirements of Sec. 135.244 of this chapter, instead of the

requirements of Sec. 121.434.

* * * * *

PART 135--AIR TAXI OPERATIONS AND COMMERCIAL OPERATORS

11. The authority citation for part 135 continues to read as

follows:

Authority: 49 U.S.C. app. 1354(a), 1355(a), 1421 through 1431,

and 1502; 49 U.S.C. 106(g).

12. Section 135.3 is revised to read as follows:

Sec. 135.3 Rules applicable to operations subject to this part.

(a) Each person operating an aircraft in operations under this part

shall--

(1) While operating inside the United States, comply with the

applicable rules of this chapter; and

(2) While operating outside the United States, comply with Annex 2,

Rules of the Air, to the Convention on International Civil Aviation or

the regulations of any foreign country, whichever applies, and with any

rules of parts 61 and 91 of this chapter and this part that are more

restrictive than that Annex or those regulations and that can be

complied with without violating the Annex or those regulations. Annex 2

is incorporated by reference in Sec. 91.703(b) of this chapter.

(b) Each certificate holder that conducts commuter operations under

this part with airplanes in which two pilots are required by the type

certification rules of this chapter, or with airplanes having a

passenger seating configuration, excluding any pilot seat, of 10 seats

or more, shall comply with subparts N and O of part 121 instead of the

requirements of subparts E, G, and H of this part.

(c) If authorized by the Administrator upon application, each

certificate holder that conducts operations under this part that is not

included in paragraph (b) of this section may comply with the

applicable sections of subpart N and O of part 121 instead of the

requirements of subparts E, G, and H of this part, except that those

authorized certificate holders may choose to comply with the operating

experience requirements of Sec. 135.244, instead of the requirements of

Sec. 121.434 of this chapter.

13. Section 135.10 is revised to read as follows:

Sec. 135.10 Compliance dates for certain rules.

Except as provided in Sec. 121.404 and section 135.12, after

[Insert date 1 year after the effective date of the final rule], no

certificate holder that conducts commuter operations under this part

with airplanes for which two pilots are required by the aircraft type

certification rules of this chapter or with airplanes having a

passenger seating configuration, excluding any pilot seat, of 10 seats

or more may use any crewmember or dispatcher in those operations unless

that person meets the applicable training, checking, and qualification

requirements of subparts N and O of part 121 of this chapter.

14. Section 135.12 is added:

Sec. 135.12 Previously trained crewmembers.

A certificate holder may use a crewmember who received the

certificate holder's training in accordance with subparts E, G, and H

of this part before (insert one year after effective date) without

complying with initial training and qualification requirements of

subparts N and O of part 121. The crewmember must comply with the

applicable recurrent training requirements of part 121.

15. Section 135.241 is amended by adding the words set forth below

at the end of the section:

Sec. 135.241 Applicability.

* * * Except as provided in Sec. 135.12, each certificate holder

that conducts commuter operations under this part with airplanes for

which two pilots are required by the aircraft type certification rules

of this chapter or with airplanes having a passenger seating

configuration, excluding any pilot seat, of 10 seats or more shall

ensure that each flight crewmember it uses in those operations is

trained, checked, and qualified under the requirements of subparts N

and O of part 121 of this chapter, in place of the requirements of

subparts E, G, and H of this part. The Administrator may authorize any

other certificate holders that conduct operations under this part to

comply with the training, checking, and qualification requirements of

subparts N and O of part 121 of this chapter, in place of the

requirements of this part, except that these certificate holders may

choose to comply with the operating experience requirements of

Sec. 135.244, instead of the requirements of Sec. 121.434 of this

chapter.

16. Section 135.291 is amended by adding the words set forth below

at the end of the section:

Sec. 135.291 Applicability.

* * * Except as provided in Sec. 135.12, each certificate holder

that conducts commuter operations under this part with airplanes for

which two pilots are required by the aircraft type certification rules

of this chapter or with airplanes having a passenger seating

configuration, excluding any pilot seat, of 10 seats or more shall

ensure that each crewmember or other personnel it uses in those

operations is trained, checked, and qualified under the requirements of

subparts N and O of part 121 of this chapter, in place of the

requirements of subparts E, G, and H of this part. The Administrator

may authorize any other certificate holders that conduct operations

under this part to comply with the training, checking, and

qualification requirements of subparts N and O of part 121 of this

chapter, in place of the requirements of subparts E, G, and H of this

part.

17. Section 135.321 is amended by adding the words set forth below

at the end of paragraph (a), redesignating paragraph (b) as paragraph

(c), and adding a new paragraph (b) as follows:

Sec. 135.321 Applicability and terms used.

(a) * * * Except as provided in Sec. 135.12, each certificate

holder that conducts commuter operations under this part with airplanes

for which two pilots are required by the aircraft type certification

rules of this chapter or with airplanes having a passenger seating

configuration, excluding any pilot seat, of 10 seats or more shall

ensure that each crewmember or other personnel it uses in those

operations is trained, checked, and qualified under the requirements of

subparts N and O of part 121 of this chapter, in place of the

requirements of subparts E, G, and H of this part. The Administrator

may authorize any other certificate holders that conduct operations

under this part to comply with the training, checking, and

qualification requirements of subparts N and O of part 121 of this

chapter, in place of the requirements of subparts E, G, and H of this

part.

(b) Each certificate holder described in Sec. 135.3(b) must submit

and obtain approval of a transition plan (containing a calendar of

events) for moving from its present part 135 training, checking,

testing, and qualification requirements to the requirements of part 121

of this chapter. Each transition plan must contain details on how the

certificate holder plans to be in compliance with subparts N and O of

part 121 on or before (one year after the effective date of the final

rule).

* * * * *

Issued in Washington, DC on December 8, 1994.

William J. White,

Acting Director, Flight Standards Service.

[FR Doc. 94-30575 Filed 12-8-94; 4:52 pm]

BILLING CODE 4910-13-M