Foreign Air Operator Certificates Issued by a Regional Safety Oversight Organization, 44935-44944 [2024-11253]

Agencies

• Federal Aviation Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 89, Number 100 (Wednesday, May 22, 2024)]
[Proposed Rules]
[Pages 44935-44944]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11253]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 129

[Docket No.: FAA-2024-0176; Notice No. 24-21]
RIN 2120-AL93


Foreign Air Operator Certificates Issued by a Regional Safety 
Oversight Organization

AGENCY: Federal Aviation Administration (FAA), Department of 
Transportation (DOT).

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: Current FAA regulations require that foreign applicants for 
operating specifications must hold a valid air operator certificate 
issued by the State of the Operator. Some International Civil Aviation 
Organization Contracting States have joined together to form Regional 
Safety Oversight Organizations. These organizations may provide a 
uniform regulatory structure for safety oversight and provide technical 
assistance and the execution of safety oversight functions on behalf of 
their member States. Regional Safety Oversight Organizations have been 
established in many parts of the world. These organizations may be 
formed based on a variety of differing arrangements among member 
States. The institutional structures of these organizations range from 
highly formalized intergovernmental organizations established on the 
basis of formal legal agreements, to less formalized organizations 
established under the International Civil Aviation Organization 
Cooperative Development of Operational Safety and Continuing 
Airworthiness Program. States participating in Regional Safety 
Oversight Organizations may delegate various functions or tasks to 
these organizations based on the extent of

[[Page 44936]]

delegated legal authority stipulated in the Regional Safety Oversight 
Organization's formation documentation. One of the functions member 
States may delegate to some of the highly formalized and more fully 
resourced Regional Safety Oversight Organizations is the issuance of 
air operator certificates on behalf of the State of the Operator. This 
regulation change would allow the FAA to review and, if acceptable to 
the Administrator, recognize as valid air operator certificates issued 
by the Regional Safety Oversight Organization to foreign air carriers 
on behalf of the State of the Operator for purposes of evaluating 
foreign applicants for operating specifications.

DATES: Send comments on or before June 21, 2024.

ADDRESSES: Send comments identified by docket number FAA-2024-0176 
using any of the following methods:
     Federal eRulemaking Portal: Go to www.regulations.gov and 
follow the online instructions for sending your comments 
electronically.
     Mail: Send comments to Docket Operations, M-30; U.S. 
Department of Transportation (DOT), 1200 New Jersey Avenue SE, Room 
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket 
Operations in Room W12-140 of the West Building Ground Floor at 1200 
New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday 
through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at (202) 493-2251.
    Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments 
from the public to better inform its rulemaking process. DOT posts 
these comments, without edit, including any personal information the 
commenter provides, to www.regulations.gov, as described in the system 
of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
www.dot.gov/privacy.
    Docket: Background documents or comments received may be read at 
www.regulations.gov at any time. Follow the online instructions for 
accessing the docket or go to the Docket Operations in Room W12-140 of 
the West Building Ground Floor at 1200 New Jersey Avenue SE, 
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Tim Shaver, International Program 
Division/International Operations Branch, Federal Aviation 
Administration, 800 Independence Avenue SW, Washington, DC 20591; 
telephone (202) 267-1704; email [email protected].

SUPPLEMENTARY INFORMATION:

I. Executive Summary

A. Overview of the Proposed Rule

    This proposed rule would amend the regulations for applications by 
foreign air carriers and foreign persons for operations specifications 
under 14 CFR part 129 and amend regulations for the denial of 
applications for operations specifications. The proposed rule would 
also apply to the operation of foreign carriers within the United 
States, as well as foreign persons or carriers operating U.S.-
registered aircraft in common carriage solely outside the United 
States.\1\ This proposal would amend three sections in subpart A of 
part 129: Sec.  129.1, Applicability and definitions; Sec.  129.7, 
Application, issuance, or denial of operations specifications; and 
Sec.  129.9, Contents of operations specifications.
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    \1\ 14 CFR 129.1, Applicability and definitions.
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    Section 129.1 would be amended to include definitions for 
``Regional Safety Oversight Organization'' and ``State of the 
Operator.''
    Section 129.7 would be amended to accommodate the recognition as 
valid by the FAA of air operator certificates (AOCs) issued by a 
Regional Safety Oversight Organization (RSOO) on behalf of the State of 
the Operator \2\ in the process of reviewing applications for 
operations specifications. Additional amendment of this section would 
align the conditions for the FAA's denial of an application for 
operations specifications with the conditions for eligibility for 
issuance of operations specifications.
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    \2\ The term ``State of the Operator'' is explained later in 
this document.
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    Section 129.9 would be amended to reflect the possible acceptance 
and recognition as valid by the FAA of AOCs issued by an RSOO on behalf 
of the State of the Operator for purposes of the contents of operations 
specifications issued under part 129.

B. Background

    Title 49 of the United States Code contains the basic authority for 
promoting safe flight of civil aircraft in air commerce and for 
regulating the global operations of U.S.-registered aircraft. For 
foreign air carriers serving the United States, the basic operating 
requirements are found in 14 CFR parts 91 and 129. The International 
Civil Aviation Organization (ICAO) Annexes to the Convention on 
International Civil Aviation (the Chicago Convention) apply to the 
international operations of air carriers.\3\ The applicable ICAO 
Annexes are: Annex 1--Personnel Licensing; Annex 6--Part I, Operation 
of Aircraft--International Commercial Air Transport--Aeroplanes; Annex 
6--Part III, Operation of Aircraft--International Operations--
Helicopters; and Annex 8--Airworthiness of Aircraft.
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    \3\ Convention on International Civil Aviation is available at 
www.icao.int/publications/documents/7300_orig.pdf.
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    ICAO Annexes contain the international standards for safety, 
regulation, and efficiency of air navigation. These international 
standards define the minimum level of safety necessary for the 
recognition by Contracting States \4\ of certificates of airworthiness, 
certificates of competency, and licenses that allow for the flight of 
aircraft of other States into or over their territories. They also 
provide for the protection of other aircraft, third parties, and 
property. As with all Contracting States to the Chicago Convention, the 
United States is obligated to recognize only those certificates of 
airworthiness, certificates of competency, and licenses issued or 
rendered valid by another Contracting State, provided that the 
requirements under which these certificates or licenses are issued or 
rendered valid meet or exceed the minimum standards established by the 
Chicago Convention.
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    \4\ The term ``Contracting States'' refer to States which have 
ratified or adhered to the Chicago Convention. There are currently 
193 Contracting States.
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    Under 14 CFR part 129 the FAA issues operations specifications to 
foreign air carriers conducting operations within the United States and 
foreign air carriers or foreign persons operating U.S.-registered 
aircraft in common carriage solely outside the United States. These 
operations specifications ensure a common understanding between the 
foreign air carrier or foreign person and the FAA. The FAA-issued 
operations specifications describe the scope of a foreign air carrier's 
authorized operations within the United States and currently must 
include: contact information for the operator in the State of the 
Operator; the certificate number and validity of the foreign air 
carrier's AOC issued by the State of the Operator; each regular and 
alternate airport to be used in scheduled operations; the type of 
aircraft and registration markings of each aircraft; the approved 
maintenance program and minimum equipment list for United States 
registered aircraft authorized for use; the designation of an agent for 
service within the United States, including the agent's full name and 
office address or usual place of

[[Page 44937]]

residence; and any other item the Administrator determines is 
necessary. See Sec.  129.9(a). For foreign air carriers or foreign 
persons operating U.S.-registered aircraft in common carriage solely 
outside the United States, the FAA-issued operations specifications 
currently must include: contact information for the operator in the 
State of the Operator; in the case of a foreign air carrier, the 
certificate number and validity of the foreign air carrier's AOC issued 
by the State of the Operator; any other business names under which the 
foreign air carrier or foreign person may operate; the type, 
registration markings, and serial number of each United States 
registered aircraft authorized for use; the approved maintenance 
program and minimum equipment list for United States registered 
aircraft authorized for use; the designation of an agent for service 
within the United States, including the agent's full name and office 
address or usual place of residence; and any other item the 
Administrator determines is necessary. See Sec.  129.9(b).
    The FAA-issued operations specifications do not, however, affect or 
interfere with the responsibilities of the relevant State authority of 
the State of the Operator, such as the foreign Civil Aviation Authority 
(CAA),\5\ that issued an AOC to the foreign air carrier. A CAA is the 
national aviation authority empowered by the State of the Operator to 
govern and regulate that State's civil aviation. The foreign CAA 
maintains primary responsibility for the certification of the foreign 
air carrier and the continuing oversight of the air carrier or foreign 
person's operations in accordance with applicable ICAO standards.\6\
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    \5\ A CAA is defined as, ``The governmental entity or entities, 
however titled, that are directly responsible for the regulation of 
all aspects of civil air transport, technical (i.e. air navigation 
and aviation safety) and economic (i.e. the commercial aspects of 
air transport).'' See ICAO Document 9734, ``Safety Oversight Manual, 
Part B--The Establishment and Management of a Regional Safety 
Oversight Organization'', pg. 1-3.
    \6\ See 14 CFR 129.1, Applicability and definitions.
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    In accordance with the standard in Annex 6,\7\ a foreign air 
carrier applying for operations within the United States or applying to 
operate U.S.-registered aircraft solely outside of the United States 
must meet all the ICAO standards in Annexes 1, 6, and 8. This includes 
the holding of a valid AOC issued by the State of the Operator. The 
FAA's regulations in part 129 do not provide for acceptance of an AOC 
issued by any entity other than the State of the Operator.
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    \7\ Annex 6--Part I, Operation of Aircraft--International 
Commercial Air Transport--Aeroplanes, standard 4.2.1.1 (``The 
operator shall not engage in commercial air transport operations 
unless in possession of a valid air operator certificate issued by 
the State of the Operator.'').
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    States develop RSOOs to combine the financial, technical, and other 
resources required to provide safety oversight that the States may not 
be able to provide individually. ICAO has issued guidance in ICAO 
Document 9734 to provide a level of consistency across all States that 
are members of an RSOO.\8\ Some RSOOs provide a uniform regulatory 
structure through common or harmonized regulations for safety oversight 
and provide technical assistance and the execution of safety oversight 
functions on behalf of RSOO members. One of these functions may be the 
issuance of AOCs on behalf of an RSOO member.
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    \8\ ICAO Document 9734, ``Safety Oversight Manual, Part B--The 
Establishment and Management of a Regional Safety Oversight 
Organization.''
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    As of May 13, 2024, ICAO has identified 11 RSOOs,\9\ with 
membership comprising dozens of States.\10\ States' use of RSOOs to 
issue AOCs on behalf of the State of the Operator may expand in the 
future. For example, since December 2021, the European Union Aviation 
Safety Agency (EASA), which is the RSOO in the European Union, has 
issued four AOCs on behalf of the following member States: \11\ 
Hungary, Portugal, Malta, and Germany.\12\ This rulemaking would allow 
the FAA to review and, if acceptable to the Administrator, recognize as 
valid AOCs issued by an RSOO on behalf of the State of the Operator, 
which, solely by virtue of them not being issued directly by the State 
of the Operator, currently do not meet the eligibility requirement for 
issuance of part 129 operations specifications.
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    \9\ The list of RSOOs can be found at www.icao.int/safety/Implementation/Pages/List-of-RSOOs.aspx.
    \10\ www.icao.int/safety/Implementation/pages/coscaps-rsoos-raios.aspx.
    \11\ For purposes of this document, the term ``member States'' 
refers to States which are members of an RSOO.
    \12\ The list of EASA-issued AOCs can be found at 
www.easa.europa.eu/en/approved-air-transport-operators-aoc.
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C. Statement of the Problem

    Part 129 of title 14 CFR prescribes the rules governing foreign air 
carrier operations within the United States and the operations of U.S.-
registered aircraft solely outside the United States in common 
carriage. The FAA authorizes these operations via the issuance of part 
129 operations specifications, which require an applicant to hold a 
valid AOC issued by the State of the Operator. See Sec.  129.7(c). The 
current regulations do not provide for acceptance of an AOC issued by 
any entity other than the State of the Operator. Allowing acceptance 
and recognition as valid of RSOO-issued AOCs on behalf of the State of 
the Operator would provide an additional pathway for the FAA's issuance 
of part 129 operations specifications to foreign air carriers as well 
as retention of the current means of obtaining part 129 operations 
specifications. These foreign air carriers provide service to and from 
the United States and provide transportation services for U.S. and 
foreign citizens. Without this rulemaking, foreign air carriers that 
are issued AOCs by an RSOO on behalf of the State of the Operator would 
not be eligible to be issued or retain the operation specifications 
necessary to operate to or from the United States with their own 
aircraft. As discussed further in this proposal, the FAA has determined 
that creating this pathway for FAA acceptance of RSOO-issued AOCs on 
behalf of the State of the Operator as valid would provide an 
equivalent level of safety to the current FAA regulations and process 
for acceptance of AOCs by the State of the Operator. Currently, a 
detailed evaluation of the State of the Operator's AOC issuance process 
is accomplished during the FAA International Aviation Safety Assessment 
(IASA) to ensure that it meets the required ICAO standards. This 
proposal would allow the FAA to issue authorization to foreign air 
carriers with an AOC issued by an RSOO on behalf of the State of the 
Operator, as acceptable to the Administrator. The determination of 
whether the RSOO-issued AOC on behalf of the State of the Operator is 
acceptable to the Administrator would require an IASA-type detailed 
review of the State of the Operator functions and tasks to ensure the 
ICAO standards required for issuance of an AOC are maintained when 
delegated to the RSOO.\13\ FAA acceptance of RSOO-issued AOCs on behalf 
of the State of the Operator would follow the same general process, 
with additional consideration as to which functions or tasks are 
delegated, to allow foreign air carriers with RSOO-issued AOCs to 
operate to and from the United States, providing travel services to 
citizens of the United States and foreign countries, economic 
opportunities for U.S. airlines through code share agreements, and 
expanded route structures for code share

[[Page 44938]]

partners.\14\ This proposal also would align the conditions for denial 
of an application for operations specifications with the conditions for 
issuance of operations specifications.
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    \13\ The FAA process for review and acceptance of AOCs will be 
included in FAA order 8900.1, Volume 12, Chapter 2, Section 2. A 
draft of this guidance document has been placed in the docket for 
this rulemaking.
    \14\ A detailed explanation of the DOT code share program can be 
found at: www.transportation.gov/policy/aviation-policy/licensing/code-sharing.
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    As of May 13, 2024, ICAO has identified 11 RSOOs. While States may 
delegate specific safety oversight tasks and functions to RSOOs, each 
individual State must still retain the minimum capability required to 
carry out its responsibilities under the Chicago Convention.\15\ That 
is, each State must maintain the ability to properly and effectively 
monitor the safety oversight functions it has delegated to the 
RSOO.\16\ Although ICAO Document 9734 part B acknowledges that some 
RSOO member States have delegated the issuance of AOCs to RSOOs, ICAO 
guidance specifically addresses the delegation of certain functions or 
tasks depending on the level of formalized international 
intergovernmental organizations, availability of resources, and whether 
the RSOO has established common or harmonized legislation and 
regulations.
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    \15\ ``Under the Chicago Convention, only the State has 
responsibility for safety oversight, and this responsibility may not 
be transferred to a regional body. Thus, although the State may 
delegate specific safety oversight tasks and functions to an RSOO, 
such as inspections for the certification of an operator, the State 
must still retain the minimum capability required to carry out its 
responsibilities under the Chicago Convention.'' ICAO Document 9734, 
``Safety Oversight Manual, Part B--The Establishment and Management 
of a Regional Safety Oversight Organization,'' Second Edition--2011, 
Chapter 2, at 2.1.8.
    \16\ ICAO Document 9734, ``Safety Oversight Manual, Part B--The 
Establishment and Management of a Regional Safety Oversight 
Organization,'' Second Edition--2011, Chapter 2.
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    Individual States may adopt and promulgate harmonized national 
legislation and regulations with the intent of standardizing 
regulations across all RSOO member States. When an RSOO has adopted 
common legislation and regulations, member States of that RSOO have 
gone beyond harmonization and have adopted common civil aviation 
requirements that are managed by the RSOO and are the same across all 
RSOO member States. RSOO member states may form a legal entity through 
an international agreement to comply with a set of common legislative 
and regulatory provisions and adopt them for application within their 
individual States, or they may establish less formal arrangements that 
reflect the understanding of the members.

    Where a harmonized regulatory framework prevails in a region, 
the civil aviation authorities of member States will remain the sole 
authority for the issuance of licences and operator certificates, 
approval of aircraft maintenance organizations, approval of design 
and production organizations, and approval of training centres. The 
role of the RSOO is to carry out tasks, such as inspections, audits 
and surveys, necessary for supporting the issuance of certificates, 
licences and approvals by the State CAA.\17\
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    \17\ ICAO Document 9734, ``Safety Oversight Manual, Part B--The 
Establishment and Management of a Regional Safety Oversight 
Organization,'' Second Edition--2011, Chapter 7, at 7.5.12.

    Where common legislation and regulations are adopted, RSOO member 
States may delegate authority to the RSOO for the conduct of licensing, 
certification, authorization, and approval activities, including the 
issuance of related documents. In practice, however, the degree of 
delegation may also depend on the resources available to the RSOO and 
political and legal considerations peculiar to the region.
    The issuance of AOCs by a Contracting State must conform to the 
standards in ICAO Annex 6, Part I or Part III, guided by ICAO Document 
8335, ``Manual of Procedures for Operations Inspection, Certification 
and Continued Surveillance.'' Current ICAO Annexes and most ICAO 
documents only refer to AOCs issued by the State of the Operator.
    The current language in 14 CFR 129.7(c)(5) ``Application, issuance, 
or denial of operations specifications'' states that a foreign 
applicant may be issued operations specifications if, after review, the 
Administrator finds the applicant holds a valid AOC issued by the State 
of the Operator. The current text in 14 CFR 129.9 ``Contents of 
operations specifications'' states that the contents of the FAA 
operations specifications must include contact information for the 
applicant in the State of the Operator and the certificate number and 
validity of the AOC issued by the State of the Operator. See Sec.  
129.9(a)(1) and (3) and (b)(1) and (3). The FAA proposes to amend these 
regulations to allow acceptance as valid of an AOC issued by an RSOO, 
as well as an AOC issued by the State of the Operator.
    The FAA also proposes to amend 14 CFR 129.7(d), as the current 
regulation states that an application for operations specifications may 
be denied only if the applicant is not properly or adequately equipped 
to conduct the operations described in the operations specifications. 
However, 14 CFR 129.7(c) provides five conditions that must be met 
before the Administrator may issue an applicant operations 
specifications. The conditions include that the applicant meets the 
applicable requirements of part 129; holds the economic or exemption 
authority required by the Department of Transportation, applicable to 
the operations to be conducted; complies with the applicable security 
requirements of 49 CFR chapter XII; is properly and adequately equipped 
to conduct the operations described in the operations specifications; 
and holds a valid AOC issued by the State of the Operator.
    Currently, if an applicant for part 129 operations specifications 
is properly and adequately equipped to conduct the operations described 
in the operations specifications but does not meet one of the other 
conditions provided in 14 CFR 129.7(c), the application is held in 
abeyance until the applicant either satisfies the remaining 
requirements or withdraws their application. The amendment would codify 
the ability of the Administrator to deny operations specifications if 
the applicant does not meet any one of the same five conditions.

II. Authority for This Rulemaking

    The FAA's authority to issue rules on aviation safety is found in 
title 49 of the United States Code. Subtitle I, section 106, describes 
the authority of the FAA Administrator. Subtitle VII, Aviation 
Programs, describes in more detail the scope of the FAA's authority.
    This rulemaking is issued under the authority described in subtitle 
VII, part A, subpart III, section 44701(a)(5). Under that section, the 
FAA is charged with promoting safe flight of civil aircraft in air 
commerce by prescribing regulations and minimum standards for 
practices, methods, and procedures the Administrator finds necessary to 
ensure safety in air commerce. Amending the regulations for 
applications for operations specifications under part 129 submitted by 
foreign air carriers or foreign persons, and the related standards for 
denial of such an application for operations specifications 
authorizations, improves the FAA's ability to manage these 
authorizations. These operations specifications are issued to foreign 
air carriers operating within the United States and to foreign air 
carriers or foreign persons conducting operations of U.S.-registered 
aircraft solely outside the United States. This regulation is within 
the scope of that authority.

III. Discussion of the Proposal

    This proposed rule would amend the regulations for applications by 
foreign

[[Page 44939]]

air carriers and foreign persons for operations specifications under 14 
CFR part 129 and the regulations for the denial of applications for 
operations specifications. The proposed rule would apply to the 
operations of foreign air carriers in the United States and to foreign 
persons or air carriers operating U.S.-registered aircraft in common 
carriage solely outside the United States. This proposal would amend 
three sections in subpart A of part 129: Sec.  129.1, Applicability and 
definitions; Sec.  129.7, Application, issuance, or denial of 
operations specifications; and Sec.  129.9, Contents of operations 
specifications, as discussed further in this section.

A. Adding Definitions for RSOO and State of the Operator and Related 
Changes

    The term ``State of the Operator'' was introduced into 14 CFR part 
129 in 2011 with no accompanying definition. The FAA is proposing to 
add a definition to Sec.  129.1 for ``State of the Operator'' by 
adopting the definition used by ICAO. The term ``State of the 
Operator'' is defined by ICAO as:

    The State in which the operator's principal place of business is 
located or, if there is no such place of business, the operator's 
permanent residence.\18\
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    \18\ ICAO Annex 6 to the Convention on International Civil 
Aviation, Part I--International Commercial Air Transport--
Aeroplanes, Twelfth Edition, July 2022.

    The term ``Regional Safety Oversight Organization'' has not been 
defined by ICAO. The FAA has developed a proposed definition for 
purposes of part 129 using the defining characteristics of RSOOs from 
ICAO Document 9734, ``Safety Oversight Manual, Part B--The 
Establishment and Management of a Regional Safety Oversight 
Organization.'' As proposed, the FAA would define ``Regional Safety 
Oversight Organization'' in Sec.  129.1 as an association or 
organization that comprises a group of member States, which--
    (A) has provided notification to ICAO of the scope of tasks and 
functions delegated to the RSOO by its member states, including but not 
limited to: sharing common or harmonized aviation regulations, 
licensing, certification, authorization, approval, and surveillance of 
civil aviation activities, and any legal authority delegated by a 
member State to the RSOO; and
    (B) has stipulated the specific tasks, functions, and delegations 
by member States discussed in paragraph (A), and any other collective 
understandings of member States in RSOO formation documentation, such 
as an agreement, treaty, or informal record, that is available for 
review by the Administrator.

    The FAA has determined that adding these terms to the list of 
definitions in part 129 is necessary to clarify the intent of existing 
requirements and the substantive amendments included in this proposal.
    The functions of the RSOO, its objectives, and the level of 
authority to be delegated by member States generally determine the form 
and size of the RSOO. RSOOs established to date have taken a variety of 
forms, ranging from a relatively loose association of CAAs that have 
agreed to cooperate in the development and implementation of 
requirements and procedures to an intergovernmental organization with 
regulatory and enforcement authority, as delegated to it by each member 
State of the Operator. The RSOO structure and authority will be driven 
by:
    The needs of its members, the level of available resources, the 
scope of activities, [and] the level of authority delegated by member 
States.\19\
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    \19\ ICAO Document 9734, ``Safety Oversight Manual, Part B--The 
Establishment and Management of a Regional Safety Oversight 
Organization,'' Second Edition--2011, Chapter 2, Section 2.2.6.
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    ICAO Annex 6, Part I requires that:
    The operator shall not engage in commercial air transport 
operations unless in possession of a valid air operator certificate 
issued by the State of the Operator.\20\
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    \20\ ICAO Annex 6 to the Convention on International Civil 
Aviation, Part I--International Commercial Air Transport--
Aeroplanes, Twelfth Edition, July 2022, Section 4.2.1.1.
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    The form and content of AOCs must meet the standards in ICAO Annex 
6, Part I or Part III, and be issued under the guidance for 
certification procedures found in ICAO Document 8335. Issuance of an 
AOC depends on the operator's ability to demonstrate various areas to 
the issuing authority, such as: adequate organization, control of 
flight operations, training programs, and ground and maintenance 
programs consistent with the proposed operations.\21\ Each State 
establishes procedures for the issuance of an AOC and for the 
continuing safety oversight and inspection of the operator.\22\ The 
certification and oversight process guidelines that States use in 
establishing these procedures are found in ICAO Document 8335, ``Manual 
of Procedures for Operations Inspection, Certification and Continued 
Surveillance.'' Current ICAO Annexes and most ICAO documents only refer 
to AOCs issued by the State of the Operator. However, ICAO Assembly 
Resolution A40-6 recognizes:
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    \21\ ICAO Annex 6 to the Convention on International Civil 
Aviation, Part I--International Commercial Air Transport--
Aeroplanes, Twelfth Edition, July 2022, Section 4.2.1.
    \22\ ICAO Document 8335, ``Manual of Procedures for Operations 
Inspection, Certification and Continued Surveillance'', Sixth 
Edition, 2022, Part III.
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    That Member States are responsible for implementing ICAO Standards 
and may, in this respect, decide on a voluntary basis to delegate 
certain functions to RSOOs, and that, when applicable, the word 
`States' should be read to include RSOOs.\23\
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    \23\ ICAO Document 10184, ``Assembly Resolutions in Force (as of 
7 October 2022),'' Part I--Constitutional and General Policy 
Matters, pg. I-119.
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    This process is further discussed in ICAO Document 9734 Part B, 
which provides guidance for the establishment and management of 
RSOOs.\24\
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    \24\ ICAO Document 9734, ``Safety Oversight Manual, Part B--The 
Establishment and Management of a Regional Safety Oversight 
Organization.''
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    Whether the AOC is issued by the State of the Operator or an RSOO, 
the FAA would use the same criteria to determine the acceptability or 
validity of an AOC. Currently, upon application for part 129 operations 
specifications, the FAA examines the AOC to determine if the operator 
is from an ICAO Contracting State and if the AOC meets the content 
requirements listed in ICAO Annex 6, including the AOC number. The FAA 
verifies the validity of the AOC with the issuing authority.\25\ 
Current practice for acceptance of an AOC issued by the State of the 
Operator also depends upon an FAA IASA program audit specific to the 
State that issued the AOC. The IASA determines a State's compliance 
with the international standards of ICAO's eight critical elements of 
effective aviation safety oversight as described in the ICAO Document 
9734, ``Safety Oversight Manual, Part A--The Establishment and 
Management of a State Safety Oversight System.'' The FAA's assessment 
may result in the State being issued an IASA category rating of 1 or 2. 
Foreign air carriers from a category 1 State are permitted by the FAA 
to operate into the United States, provided all other applicable 
Department of Transportation, FAA, and Transportation Security 
Administration (TSA) regulatory requirements are met. If applicable to 
the operation to be conducted, the applicant must present evidence of 
the approved security program or waiver issued by the TSA and evidence 
of approval of the

[[Page 44940]]

operator's Hazardous Materials (HAZMAT)/Dangerous Goods Program from 
the State of the Operator.\26\ Foreign air carriers from a category 2 
State are prohibited by the FAA from initiating service to the United 
States or have their Operations Specifications limited by the FAA if 
they are already operating services to the United States prior to the 
FAA's issuance of the category 2.\27\
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    \25\ FAA Order 8900.1 Change 844, June 21, 2023, Volume 12, 
Chapter 4, Section 2, paragraph A001(a)&(a)(1).
    \26\ 14 CFR 129.7(c)(3) requires the applicant ``Complies with 
the applicable security requirements of 49 CFR Chapter XII.'' The 
policy regarding TSA and HAZMAT application evidence requirements is 
provided in FAA order 8900.1, Volume 12, Chapter 4, Section 1. See 
www.ecfr.gov/current/title-49/subtitle-B/chapter-XII for TSA 
requirement details.
    \27\ FAA, IASA Program and Process, www.faa.gov/sites/faa.gov/files/about/initiatives/iasa/FAA_Initiatives_IASA.pdf.
---------------------------------------------------------------------------

    Under this proposal, FAA acceptance of an RSOO-issued AOC on behalf 
of the State of the Operator would continue to depend upon the outcome 
of an FAA IASA program audit on the RSOO member State of the Operator, 
as detailed previously. In addition, consistent with this proposal, the 
FAA would review the RSOO and its member State's alignment with the 
guidance in ICAO Document 9734 Part B. This FAA review would include, 
but is not limited to, a review of: the level of participation of a 
State's CAA in the activities of the RSOO; whether the RSOO conducts 
its activities following a set of regulations that are common to all 
the RSOO's member States; clarification of the role of national 
inspectors in the conduct of safety oversight activity by the RSOO; the 
role of the RSOO inspectors during the conduct of safety oversight 
activity in the member State; and the types of surveillance to be 
conducted by member States of the RSOO to ensure the fulfilment of each 
member State's obligation as a signatory to the Chicago Convention.
    Before recognizing as valid an AOC issued by an RSOO, as proposed, 
the FAA would also review the RSOO formation documentation. The FAA 
notes that based on the proposed definition of RSOO in this rulemaking, 
an RSOO without such documentation available for FAA review would not 
be recognized by the FAA for purposes of part 129. Consistent with the 
FAA's established IASA program, the FAA's review will determine if 
additional audits of both the member State and the RSOO of the areas of 
delegated functions or tasks are required to validate compliance with 
ICAO requirements under this delegation prior to acceptance.
    Each RSOO has a unique structure and legal framework. Whether the 
FAA conducts an IASA on the RSOO directly, or the level of 
participation the RSOO will have in the State's IASA, will be based on 
the structure of the RSOO and what functions have been delegated by the 
State of the Operator.
    Therefore, the FAA proposes the following amendments related to 
RSOOs:
     In Sec.  129.1(c), insert definitions for ``Regional 
Safety Oversight Organization'' and ``State of the Operator;''
     In Sec.  129.7(c)(5), adding ``or a Regional Safety 
Oversight Organization'' so Sec.  129.7(c)(5) reads as follows: Holds a 
valid air operator certificate issued by (i) the State of the Operator; 
or (ii) a Regional Safety Oversight Organization on behalf of the State 
of the Operator, as acceptable to the Administrator;
     In Sec.  129.9(a)(3), adding ``or a Regional Safety 
Oversight Organization'' so Sec.  129.9(a)(3) reads as follows: The 
certificate number and validity of the foreign air carrier's Air 
Operator Certificate issued by the State of the Operator or a Regional 
Safety Oversight Organization on behalf of the State of the Operator; 
and
     In Sec.  129.9(b)(3), adding ``or a Regional Safety 
Oversight Organization'' so Sec.  129.9(b)(3) reads as follows: In the 
case of a foreign air carrier, the certificate number and validity of 
the foreign air carrier's Air Operator Certificate issued by the State 
of the Operator or a Regional Safety Oversight Organization on behalf 
of the State of the Operator.

B. Denial of an Application for Operations Specifications

    The FAA proposes to amend the conditions under which the FAA can 
deny an application for operations specifications in subpart A of part 
129. Currently, Sec.  129.7(c) specifies that an applicant must meet 
five conditions to be issued operations specifications. These 
conditions include that the applicant: holds the economic or exemption 
authority required by the Department of Transportation, applicable to 
the operations to be conducted; complies with the applicable security 
requirements of 49 CFR chapter XII; is properly and adequately equipped 
to conduct the operations described in the operations specifications; 
and holds a valid AOC issued by the State of the Operator. However, 
Sec.  129.7(d) states that the application may be denied if the 
Administrator finds that the applicant is not properly or adequately 
equipped to conduct the operations to be described in the operations 
specifications. As a result, if an applicant for part 129 operations 
specifications is properly and adequately equipped to conduct the 
operations described in the operations specifications but does not meet 
one of the other conditions provided in 14 CFR 129.7(c), the regulation 
does not provide for a formal denial of the application. The practical 
effect is that the application is held in abeyance by the FAA until the 
applicant either satisfies the remaining requirements or withdraws 
their application. Open matters impact the FAA's assignment of 
resources and business processes. The proposed change would align the 
bases for denial of an application to the five conditions that must be 
met for issuance of operations specifications listed in Sec.  129.7(c). 
This change would allow the FAA to formally deny applications that do 
not meet the requirements of Sec.  129.7(c). The FAA proposes to amend 
Sec.  129.7(d), to read as follows: An application may be denied if the 
Administrator finds that the applicant does not meet one or more of the 
criteria listed in Sec.  129.7(c).

IV. Regulatory Notices and Analyses

    Federal agencies consider the impacts of regulatory actions under a 
variety of executive orders and other requirements. First, Executive 
Order 12866 and Executive Order 13563, as amended by Executive Order 
14094 (``Modernizing Regulatory Review''), direct that each Federal 
agency shall propose or adopt a regulation only upon a reasoned 
determination that the benefits of the intended regulation justify the 
costs. Second, the Regulatory Flexibility Act of 1980 (Pub. L. 96-354) 
requires agencies to analyze the economic impact of regulatory changes 
on small entities. Third, the Trade Agreements Act (Pub. L. 96-39) 
prohibits agencies from setting standards that create unnecessary 
obstacles to the foreign commerce of the United States. Fourth, the 
Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires agencies 
to prepare a written assessment of the costs, benefits, and other 
effects of proposed or final rules that include a Federal mandate that 
may result in the expenditure by State, local, and Tribal governments, 
in the aggregate, or by the private sector, of $100 million or more 
(adjusted annually for inflation) in any one year. The current 
threshold after adjustment for inflation is $183 million using the most 
current (2023) Implicit Price Deflator for the Gross Domestic Product.
    In conducting these analyses, the FAA has determined that this 
proposed rule: will result in benefits that justify costs; is not 
significant under section 3(f)(1) of Executive Order 12866, as amended; 
will not have a significant economic

[[Page 44941]]

impact on a substantial number of small entities; will not create 
unnecessary obstacles to the foreign commerce of the United States; and 
will not impose an unfunded mandate on State, local, or Tribal 
governments, or on the private sector.

A. Regulatory Impact Analysis

    This proposed rule would allow for the acceptance of AOCs issued by 
RSOOs on behalf of the State of the Operator, and it would update the 
regulatory basis for denial of applications for operations 
specifications.
Update the Process for Accepting AOCs Issued by RSOOs
    Currently, a foreign air carrier applying for operations within the 
United States or applying to operate U.S.-registered aircraft solely 
outside of the United States must hold a valid AOC issued by the State 
of the Operator. The existing regulations do not provide for acceptance 
of an AOC issued by any other entity other than the State of the 
Operator. This rulemaking would allow the FAA to recognize as valid 
AOCs issued by an RSOO on behalf of the State of the Operator, as 
acceptable to the Administrator. This allows foreign air carriers with 
an AOC issued by an RSOO on behalf of the State of the Operator to be 
issued authorization by the FAA, as acceptable to the Administrator, to 
operate to and from the United States, providing travel services to 
citizens of the United States and foreign countries, economic 
opportunities for U.S. airlines through code share agreements, and 
expanded route structures for code share partners.\28\ This proposed 
rule would be consistent with ICAO resolutions and guidance, which 
address the development and use of RSOOs.
---------------------------------------------------------------------------

    \28\ A detailed explanation of the DOT code share program can be 
found at: www.transportation.gov/policy/aviation-policy/licensing/code-sharing.
---------------------------------------------------------------------------

    Under current practice for operations within the United States, 
before acceptance of the AOC, the FAA conducts an IASA on the State of 
the Operator.\29\ These assessments involve pre-work and document 
review in the United States lasting several weeks, followed by an on-
site assessment in the State of the Operator lasting five business 
days. When the State of the Operator is a member of an RSOO, and that 
State has delegated functions or tasks to the RSOO, this prework would 
include a review of functions or tasks that are delegated by the State 
to an RSOO, the scope and level of those delegations, and the need for 
RSOO participation in assessing the State's compliance with the ICAO 
standards. The assessments involve two to four inspectors and an 
attorney. An FAA IASA team incurs traveling costs, such as airfare, 
lodging, and per diem associated with the travel destination. However, 
these assessments, including the prework, are not expected to represent 
an additional cost of the rule because the FAA currently conducts them, 
and the FAA does not expect any increase in the number of assessments 
as a result of this rulemaking. Currently when accomplishing an IASA on 
a State that has delegated functions or tasks to an RSOO, the FAA 
reviews that delegation to ensure that the State's and the RSOO's 
functions and tasks are in compliance with the ICAO requirements. In 
these cases, the RSOO's observes and may participate in the State's 
IASA. However, the State of the Operator is ultimately responsible for 
the IASA.
---------------------------------------------------------------------------

    \29\ 87 FR 58725 (Sept. 28, 2022).
---------------------------------------------------------------------------

    The FAA conducts, on average, five IASAs each year. This proposed 
rule change would not increase that number. If the FAA has previously 
assessed a State of the Operator and that State subsequently delegated 
functions or tasks, such as issuance of AOCs by the RSOO, the FAA will 
review the RSOO formation documentation to determine if further 
assessment to evaluate the continued compliance with ICAO standards is 
required. If the FAA determines it needs to do further assessment, it 
would be one of that year's IASAs.
Update the Regulatory Basis for Denial of Applications for Operations 
Specifications
    The FAA proposes to further amend the conditions under which the 
FAA can deny the application for operations specifications in subpart 
A. Currently, Sec.  129.7(c) specifies that an applicant must meet five 
conditions to be issued operations specifications. These conditions 
require that the applicant meets the applicable requirements of part 
129; holds the economic or exemption authority required by the 
Department of Transportation, applicable to the operations to be 
conducted; complies with the applicable security requirements of 49 CFR 
chapter XII; is properly and adequately equipped to conduct the 
operations described in the operations specifications; and holds a 
valid AOC issued by the State of the Operator. However, Sec.  129.7(d) 
states that the application may be denied if the applicant is not 
properly and adequately equipped to conduct the operations described in 
the operations specifications. The change would expand the basis for 
denial to any of the five conditions listed in Sec.  129.7(c). The 
proposed updates to the regulatory basis for denial of applications for 
operations specifications would not result in any costs. The proposed 
change would align the bases for denial of an application to the 
conditions that must be met for issuance of operations specifications. 
This would allow the FAA to formally deny applications that do not meet 
the requirements of Sec.  129.7(c) instead of the FAA's current 
practice of holding the approval of ineligible applications in abeyance 
until the conditions are met or the applicant withdraws the 
application. There are no specific costs associated with holding an 
application in abeyance. The benefit of allowing denial of an 
application based on not meeting the regulatory criteria is reduction 
of applications in process and ensuring currency of information 
provided with an application.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) of 1980, (5 U.S.C. 601-612), 
as amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (Pub. L. 104-121) and the Small Business Jobs Act of 2010 (Pub. L. 
111-240), requires Federal agencies to consider the effects of the 
regulatory action on small business and other small entities and to 
minimize any significant economic impact. The term ``small entities'' 
comprises small businesses and not-for-profit organizations that are 
independently owned and operated and are not dominant in their fields 
and governmental jurisdictions with populations of less than 50,000.
    This proposed rule would update the regulations for applications by 
foreign air carriers and foreign persons for operations specifications 
under part 129. The proposed rule would apply to foreign air carrier 
operations within the United States and to U.S.-registered aircraft in 
common carriage solely outside the United States. Since this proposed 
rule only impacts foreign applicants, this proposal has no impact on 
U.S. small entities. Therefore, the FAA proposes to certify that the 
rule will not have a significant economic impact on a substantial 
number of small entities. The FAA welcomes comments on the basis for 
this certification.

C. International Trade Impact Assessment

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the 
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal 
agencies

[[Page 44942]]

from establishing standards or engaging in related activities that 
create unnecessary obstacles to the foreign commerce of the United 
States. Pursuant to these Acts, the establishment of standards is not 
considered an unnecessary obstacle to the foreign commerce of the 
United States, so long as the standard has a legitimate domestic 
objective, such as the protection of safety, and does not operate in a 
manner that excludes imports that meet this objective. The statute also 
requires consideration of international standards and, where 
appropriate, that they be the basis for U.S. standards.
    The FAA has assessed the potential effect of this proposed rule and 
determined that it ensures the safety of the American public by 
allowing the acceptance of AOCs issued by an RSOO on behalf of the 
State of the Operator when reviewed and found acceptable to the 
Administrator. As a result, the FAA does not consider this rule as 
creating an unnecessary obstacle to foreign commerce.

D. Unfunded Mandates Assessment

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
governs the issuance of Federal regulations that require unfunded 
mandates. An unfunded mandate is a regulation that requires a State, 
local, or Tribal government or the private sector to incur direct costs 
without the Federal government having first provided the funds to pay 
those costs. The FAA determined that the proposed rule will not result 
in the expenditure of $183 million or more by State, local, or Tribal 
governments, in the aggregate, or the private sector, in any one year.

E. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that the FAA consider the impact of paperwork and other information 
collection burdens imposed on the public. The information collections 
that are required by this rule are already approved in OMB control 
number 2120-0749. The applicant is only required to provide a copy of 
their AOC and is not required to provide any additional information if 
the AOC is issued by an RSOO. The burden of validating the AOC remains 
with the FAA in conjunction with the State of the Operator. The FAA has 
determined that there would be no new requirement for information 
collection associated with this proposed rule.

F. International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to conform to ICAO 
Standards and Recommended Practices to the maximum extent practicable. 
The FAA has reviewed the corresponding ICAO Standards and Recommended 
Practices and has identified the following differences with these 
proposed regulations. ICAO Annex 6, Part 1 requires:
    The operator shall not engage in commercial air transport 
operations unless in possession of a valid air operator certificate 
issued by the State of the Operator.\30\
---------------------------------------------------------------------------

    \30\ Annex 6--Part I, Operation of Aircraft--International 
Commercial Air Transport--Aeroplanes, standard 4.2.1.1.
---------------------------------------------------------------------------

    This regulatory change to allow RSOO-issued AOCs on behalf of the 
State of the Operator does not comply with this standard. However, the 
FAA has determined that the resulting action provides an equivalent 
level of safety to that of the standard. If this proposal is adopted, 
the FAA intends to file a difference with ICAO. However, this proposed 
rule would be consistent with ICAO resolutions and guidance that 
address the development and use of RSOOs.

G. Environmental Analysis

    FAA Order 1050.1F identifies FAA actions that are categorically 
excluded from preparation of an environmental assessment or 
environmental impact statement under the National Environmental Policy 
Act (NEPA) in the absence of extraordinary circumstances. The FAA has 
determined this rulemaking action qualifies for the categorical 
exclusion identified in paragraph 5-6.6f for regulations and involves 
no extraordinary circumstances.

V. Executive Order Determinations

A. Executive Order 13132, Federalism

    The FAA has analyzed this proposed rule under the principles and 
criteria of Executive Order (E.O.) 13132, Federalism. The FAA has 
determined that this proposed action would not have a substantial 
direct effect on the States, or the relationship between the Federal 
Government and the States, or on the distribution of power and 
responsibilities among the various levels of government, and, 
therefore, would not have federalism implications.

B. Executive Order 13175, Consultation and Coordination With Indian 
Tribal Governments

    Consistent with Executive Order 13175, Consultation and 
Coordination with Indian Tribal Governments,\31\ and FAA Order 1210.20, 
American Indian and Alaska Native Tribal Consultation Policy and 
Procedures,\32\ the FAA ensures that Federally Recognized Tribes 
(Tribes) are given the opportunity to provide meaningful and timely 
input regarding proposed Federal actions that have the potential to 
affect uniquely or significantly their respective Tribes. At this 
point, the FAA has not identified any unique or significant effects, 
environmental or otherwise, on Tribes resulting from this proposed 
rule.
---------------------------------------------------------------------------

    \31\ 65 FR 67249 (Nov. 6, 2000).
    \32\ FAA Order No. 1210.20 (Jan. 28, 2004), available at 
www.faa.gov/documentLibrary/media/1210.pdf.
---------------------------------------------------------------------------

C. Executive Order 13211, Regulations That Significantly Affect Energy 
Supply, Distribution, or Use

    The FAA analyzed this proposed rule under E.O. 13211, Actions 
Concerning Regulations that Significantly Affect Energy Supply, 
Distribution, or Use (May 18, 2001). The FAA has determined that it 
would not be a ``significant energy action'' under the executive order 
and would not be likely to have a significant adverse effect on the 
supply, distribution, or use of energy.

D. Executive Order 13609, Promoting International Regulatory 
Cooperation

    Executive Order 13609, Promoting International Regulatory 
Cooperation, promotes international regulatory cooperation to meet 
shared challenges involving health, safety, labor, security, 
environmental, and other issues and to reduce, eliminate, or prevent 
unnecessary differences in regulatory requirements. The FAA has 
analyzed this proposed action under the policies and agency 
responsibilities of E.O. 13609 and has determined that this action 
would require filing a difference with ICAO. However, the FAA has 
determined that this proposed rule is not a significant regulatory 
action and that no action is required under E.O. 13609. In addition, 
this proposed rule would be consistent with ICAO resolutions and 
guidance that address the development and use of RSOOs and with the 
principles of E.O. 13609.\33\
---------------------------------------------------------------------------

    \33\ ICAO Resolutions in Force or ICAO documents are guidance 
material and are not mandatory. The standard in ICAO Annex 6, Part 1 
Para 4.2.1.1 requires an AOC to be ``issued by the State of the 
Operator.'' Therefore, even though the FAA is using ICAO guidance as 
a basis for this proposal, the FAA must file a difference to the 
specific standard.

---------------------------------------------------------------------------

[[Page 44943]]

VI. Additional Information

A. Comments Invited

    The FAA invites interested persons to participate in this 
rulemaking by submitting written comments, data, or views. The FAA also 
invites comments relating to the economic, environmental, energy, or 
federalism impacts that might result from adopting the proposals in 
this document. The most helpful comments reference a specific portion 
of the proposal, explain the reason for any recommended change, and 
include supporting data. To ensure the docket does not contain 
duplicate comments, commenters should submit only one time if comments 
are filed electronically, or commenters should send only one copy of 
written comments if comments are filed in writing.
    The FAA will file in the docket all comments it receives, as well 
as a report summarizing each substantive public contact with FAA 
personnel concerning this proposed rulemaking. Before acting on this 
proposal, the FAA will consider all comments it receives on or before 
the closing date for comments. The FAA will consider comments filed 
after the comment period has closed if it is possible to do so without 
incurring expense or delay. The FAA may change this proposal in light 
of the comments it receives.

B. Confidential Business Information

    Confidential Business Information (CBI) is commercial or financial 
information that is both customarily and actually treated as private by 
its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552), 
CBI is exempt from public disclosure. If your comments responsive to 
this NPRM contain commercial or financial information that is 
customarily treated as private, that you actually treat as private, and 
that is relevant or responsive to this NPRM, it is important that you 
clearly designate the submitted comments as CBI. Please mark each page 
of your submission containing CBI as ``PROPIN.'' The FAA will treat 
such marked submissions as confidential under the FOIA, and they will 
not be placed in the public docket of this NPRM. Submissions containing 
CBI should be sent to the person in the FOR FURTHER INFORMATION CONTACT 
section of this document. Any commentary that the FAA receives that is 
not specifically designated as CBI will be placed in the public docket 
for this rulemaking.

C. Electronic Access and Filing

    A copy of this NPRM, all comments received, any final rule, and all 
background material may be viewed online at www.regulations.gov using 
the docket number listed previously. A copy of this proposed rule will 
be placed in the docket. Electronic retrieval help and guidelines are 
available on the website. It is available 24 hours a day, every day. An 
electronic copy of this document may also be downloaded from the Office 
of the Federal Register's website at www.federalregister.gov and the 
Government Publishing Office's website at www.govinfo.gov. A copy may 
also be found at the FAA's Regulations and Policies website at 
www.faa.gov/regulations_policies.
    Copies may also be obtained by sending a request to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue SW, Washington, DC 20591, or by calling (202) 267-9677. 
Commenters must identify the docket or notice number of this 
rulemaking.
    All documents the FAA considered in developing this proposed rule, 
including economic analyses and technical reports, may be accessed in 
the electronic docket for this rulemaking.

D. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires the FAA to comply with small entity requests for 
information or advice about compliance with statutes and regulations 
within its jurisdiction. A small entity with questions regarding this 
document may contact its local FAA official or the person listed under 
the FOR FURTHER INFORMATION CONTACT heading at the beginning of the 
preamble. To find out more about SBREFA on the internet, visit 
www.faa.gov/regulations_policies/rulemaking/sbre_act.

List of Subjects in 14 CFR Part 129

    Administrative practice and procedure, Air carriers, Aircraft, 
Aviation safety, Reporting and recordkeeping requirements, Security 
measures, Smoking.

The Proposed Amendments

    In consideration of the foregoing, the Federal Aviation 
Administration proposes to amend 14 CFR as follows:

PART 129--OPERATIONS: FOREIGN AIR CARRIERS AND FOREIGN OPERATORS OF 
U.S.-REGISTERED AIRCRAFT ENGAGED IN COMMON CARRIAGE

0
1. The authority citation for part 129 continues to read as follows:

    Authority:  49 U.S.C. 1372, 40113, 40119, 44101, 44701-44702, 
44705, 44709-44711, 44713, 44716-44717, 44722, 44901-44904, 44906, 
44912, 46105, Pub. L. 107-71 sec. 104.

0
2. Amend Sec.  129.1 by revising paragraph (c)(2) and adding paragraphs 
(c)(3) and (4) to read as follows:


Sec.  129.1   Applicability and definitions.

* * * * *
    (c) * * *
    (2) Regional Safety Oversight Organization means an association or 
organization that comprises a group of member States, which--
    (i) Has provided notification to the International Civil Aviation 
Organization of the scope of tasks and functions delegated to the 
Regional Safety Oversight Organization, including but not limited to: 
sharing common or harmonized aviation regulations, licensing, 
certification, authorization, approval, and surveillance of civil 
aviation activities, and any legal authority delegated by a member 
State to the Regional Safety Oversight Organization; and
    (ii) Has stipulated the specific tasks, functions, and delegations 
by member States discussed in paragraph (c)(2)(i) of this section, and 
any other collective understandings of member States in Regional Safety 
Oversight Organization formation documentation, such as an agreement, 
treaty, or informal record, that is available for review by the 
Administrator.
    (3) State of the Operator means the State in which the operator's 
principal place of business is located or, if there is no such place of 
business, the operator's permanent residence.
    (4) Years in service means the calendar time elapsed since an 
aircraft was issued its first U.S. or first foreign airworthiness 
certificate.
0
3. Amend Sec.  129.7 by revising paragraphs (c)(5) and (d) to read as 
follows:


Sec.  129.7   Application, issuance, or denial of operations 
specifications.

* * * * *
    (c) * * *
    (5) Holds a valid air operator certificate issued by
    (i) the State of the Operator; or
    (ii) a Regional Safety Oversight Organization on behalf of the 
State of the Operator, as acceptable to the Administrator.
    (d) An application may be denied if the Administrator finds that 
the applicant does not meet one or more of the criteria listed in 
paragraph (c) of this section.

[[Page 44944]]

0
4. Amend Sec.  129.9 by revising paragraphs (a)(3) and (b)(3) to read 
as follows:


Sec.  129.9   Contents of operations specifications.

    (a) * * *
    (3) The certificate number and validity of the foreign air 
carrier's air operator certificate issued by the State of the Operator 
or a Regional Safety Oversight Organization on behalf of the State of 
the Operator;
* * * * *
    (b) * * *
    (3) In the case of a foreign air carrier, the certificate number 
and validity of the foreign air carrier's Air Operator Certificate 
issued by the State of the Operator or a Regional Safety Oversight 
Organization on behalf of the State of the Operator;
* * * * *

    Issued under authority provided by 49 U.S.C. 106(f) and 44701(a) 
in Washington, DC.
Robert M. Ruiz,
Deputy Executive Director, Flight Standards Service.
[FR Doc. 2024-11253 Filed 5-21-24; 8:45 am]
BILLING CODE 4910-13-P