1. Presented to: By: Date: Federal Aviation Administration Pending FAA Reauthorization Impact on Foreign Repair Stations Maintenance Information Session 2008 U.S./Europe International Aviation Safety Conference Daniel Bachelder, Deputy Assistant Manager, Aircraft Maintenance Division June 5, 2008

2. 2 Federal Aviation Administration FAA Reauthorization Impact on Foreign Repair Stations June 5, 2008 2 Status of FAA Reauthorization FAA is reauthorized every 5 years to perform its mission and the Congress establishes new priorities. FAA’s current authorization expired on September 30, 2007. No reauthorization legislation has been passed. –Extensions of existing FAA mandate.

3. 3 Federal Aviation Administration FAA Reauthorization Impact on Foreign Repair Stations June 5, 2008 3 Status of FAA Reauthorization The U.S. House of Representatives completed its actions on a proposed reauthorization bill. The U.S. Senate has not completed its actions, and is unlikely to do so before the November 2008 elections. The House and Senate versions are not the same and will require Conference Committee resolution.

4. 4 Federal Aviation Administration FAA Reauthorization Impact on Foreign Repair Stations June 5, 2008 4 House Reauthorization Bill Provisions HR 2881 Inspection of Foreign Repair Stations: Annually the FAA shall submit certification to the U.S. Congress that:  FAA Aviation Safety Inspectors have conducted at least 2 separate inspections a year on each foreign repair station performing work on U.S. Air Carrier aircraft or components.

5. 5 Federal Aviation Administration FAA Reauthorization Impact on Foreign Repair Stations June 5, 2008 5 Reauthorization Bill Provisions Continued  The FAA must modify certification requirements to include testing for the use of alcohol or a controlled substance of any individual performing sensitive functions at a foreign repair station including third parties with whom the air carrier contracts to perform work.  May also require the FAA to update the fee schedule for certification of foreign repair stations to cover the entire actual cost of the certification.

6. 6 Federal Aviation Administration FAA Reauthorization Impact on Foreign Repair Stations June 5, 2008 6 Potential Impact H.R. 2881 does not address bilateral maintenance agreements, therefore:  There are no provisions for relief from having FAA Inspectors performing 2 inspections annually; the bill does not allow the FAA to delegate foreign repair station inspections to another civil aviation authority.

7. 7 Federal Aviation Administration FAA Reauthorization Impact on Foreign Repair Stations June 5, 2008 7 Administration Position Administration is opposed to the House bill’s provisions on foreign repair stations. –Would require additional FAA resources –Not supported by safety data –Impairs implementation of bilateral agreements –Could cause retaliatory treatment by other countries Industry has also voiced its opposition

8. 8 Federal Aviation Administration FAA Reauthorization Impact on Foreign Repair Stations June 5, 2008 8 Senate Bill S. 1300/H.R. 2881 does not include any provisions related to increased inspections of repair stations –Provisions are more favorable to the FAA However, Senators have announced possible amendments when floor debate continues –e.g. Senator McCaskill

9. 9 Federal Aviation Administration FAA Reauthorization Impact on Foreign Repair Stations June 5, 2008 9 Where is the Bill today? H.R. 2881 has not been passed by the U.S. Congress at this point in time.  The U.S. Congress is expected to continue debating the contents of the FAA reauthorization bill.  There’s no indication at this time when any legislation may be passed and what its final content will be!