Canada Gazette

These proposed Regulations Amending the Canadian Aviation Regulations (Parts I, III and VIII) will introduce requirements for a holder of an airport certificate, a manufacturer certificate or an ATS operations certificate (see footnote 1) to appoint an accountable executive and for a holder of an airport certificate or of an ATS operations certificate to institute a safety management system (SMS). (see footnote 2) Additional changes to the Canadian Aviation Regulations (CARs) necessary to implement these requirements are also part of this proposal.

The proposed additions to Part I General Provisions will add holders of airport certificates, manufacturer certificates or ATS operations certificates to those certificate holders to whom the provisions of Subpart 106 Accountable Executive apply and holders of airport certificates or ATS operations certificates to those certificate holders to whom the provisions of Subpart 107 Safety Management System Requirements apply. Subpart 106 specifies the certificate holders who must appoint an accountable executive and the conditions applicable to all accountable executive appointees. Subpart 107 specifies the certificate holders who must institute an SMS and the conditions applicable to all SMSs required under this Subpart.

The proposed amendments to Part III Aerodromes and Airports and Part VIII Air Navigation Services will introduce changes, specific to organizations certified under these parts, which are necessary for the appointment of an accountable executive or for the implementation of an SMS.

These proposed amendments are necessary steps in initiating a new regulatory approach for Transport Canada that will strengthen partnerships with industry and assist the Department in meeting the safety challenges posed by new technology and increased global interconnectedness. In March 2005, the Department introduced requirements for a holder of a flight training unit operator certificate, of an approved maintenance organization (AMO) certificate or of an air operator certificate issued under sections 702.07, 703.07, 704.07 or 705.07 to appoint an accountable executive and for a holder of an AMO certificate or of an air operator certificate issued under section 705.07 to institute an SMS.

The two concepts, "accountable executive" and "safety management system," are necessary components of the proactive regulatory approach being instituted by Transport Canada. This new approach anticipates the need for aviation organizations to adapt to new technology and increased global interconnectedness in the twenty-first century while maintaining the high level of safety of the Canadian civil aviation system. As aviation traffic increases both in Canada and globally, regulatory authorities face the challenge of improving already high levels of aviation safety by reducing the number of accidents which occur annually. Transport Canada has identified in Flight 2005: A Civil Aviation Safety Framework for Canada the principal adjustments that are needed in pursuit of this challenge. The concepts of accountable executive and SMS are cornerstones of implementing these adjustments.

It is generally accepted by experts in the field of organizational safety that most accidents are the result of a sequence of decisions where a human is only the last link in a chain that led to the accident. The term "organizational accident" was coined to acknowledge that most of the links in the accident chain are under the control of an organization. Therefore, making a system safer requires action by the organization. Transport Canada has identified two components as necessary to initiate such action: firstly, a clearly identifiable individual must be designated as responsible for corporate decisions affecting aviation safety and compliance with the CARs, that is an accountable executive; secondly, a systems approach to safety management must be instituted.

An "accountable executive" will be a person with financial and executive control over an entity that is the holder of a certificate issued in accordance with the provisions of the CARs. The appointment of an accountable executive is intended to ensure the organization is represented by a person who has sufficient authority to ensure compliance with the CARs and who has formally accepted his or her responsibility for the organization's compliance.

An SMS is a "documented process for managing risks that integrates operations and technical systems with the management of financial and human resources to ensure aviation safety or the safety of the public" (see footnote 3) which is woven into the fabric of an organization and becomes part of the way people do their jobs. Within the organization it will still be individuals making choices, but the purpose of an SMS is to set up a process to lead these individuals to recognize the potential impact of their choices upon the safety of operations even when the choice appears to be removed from operational outcomes or to have little or no impact upon them. The proposed SMS will make everyone accountable for safety in the areas for which they have responsibility. This accountability will be integrated with their accountability for their own technical or operational responsibilities. The aim is to break down communication barriers between different areas of an organization and to establish links between such areas of responsibility as marketing, maintenance and operations in order to facilitate the recognition that a decision in any part has an impact on all other parts and may create an unintended safety hazard.

SMSs are based on the fact that there will always be hazards and risks; therefore, proactive management is needed to identify and control these threats to safety before they lead to mishaps. The expected result of this initiative is the fostering of stronger safety cultures within the civil aviation industry and, as a consequence, the improvement of safety practices.

Part I of the CARs contains definitions affecting more than one part of the CARs and administrative provisions applicable to all parts of the CARs.

The amendments to Part I include proposed amendments to section 101.01 Interpretation and an amendment to the definition of "principal" in section 103.12 Definition of "Principal."

To assist in the interpretation of these new provisions, proposed new definitions to be added to section 101.01 are

"airside" meaning "the movement area of an aerodrome, adjacent terrain and buildings or portions thereof, access to which is controlled" and

"ATS operations certificate" meaning "a certificate issued under Part VIII that authorizes the holder of the certificate to operate an air traffic control unit or a flight service station."

The existing definition of "ATS" or "air traffic services" in section 101.01 will be replaced by a proposed definition which adds flight information services to the list of ATS which, currently, comprises air traffic control services and advisory services.

A proposed amendment to existing section 103.12 Definition of "Principal" will add those persons in respect of an airport and those persons in respect of a provider of air traffic services who have been appointed as accountable executives to the list of those who will be considered principals. Section 103.12 of the CARs defines the term "principal" for the purposes of subsection 6.71(1) and paragraph 7.1(1)(c) of the Aeronautics Act. "Principals" are persons who occupy vital positions and are responsible for key elements within their respective aviation organizations. The Minister is given broad discretion in exercising his authority regarding decisions involving the performance of individuals defined as "principals." The Minister has the authority to refuse to issue or to amend a Canadian aviation document if, in his opinion, the aviation record of any principal of the applicant warrants such a refusal. He or she also has the authority to decide to suspend, cancel or refuse to renew a Canadian aviation document on the same grounds. These persons, as accountable executives, will occupy a vital position and be responsible for key elements within the organization and, therefore, should be included with other principals with respect to Ministerial discretion.

As noted earlier, holders of airport certificates, manufacturer certificates or ATS operations certificates will be added to those certificate holders to whom the provisions of Subpart 106 Accountable Executive apply and holders of airport certificates or ATS operations certificates, to those certificate holders to whom the provisions of Subpart 107 Safety Management System Requirements apply. The provisions for accountable executives and SMSs in Part I represent elements of these concepts which are common to all operational activities governed by the CARs. Each activity may also be subject to specific requirements which take into account the individual circumstances of the environment within which that activity takes place. These specific requirements will be presented in the part of the CARs where the relevant requirements for the individual activity may be found.

A proposed additional provision in section 107.03 which will apply to both an applicant for or a holder of an airport certificate and an ATS operations certificate will require the SMS to be established by such an entity to have a quality assurance program. The proposed requirement for this type of program that will ensure quality is already in place for other organizations in which an SMS is required, although the designation of the program as "quality assurance" is introduced in this proposal.

Proposed changes to the Schedule Designated Provisions which is attached to Subpart 103 Administration and Compliance will make adjustments to allow for the renumbering of existing provisions and will introduce maximum penalties which may be assessed for non-compliance with new sections proposed in this amendment to the CARs.

Part III Aerodromes and Airports of the CARs comprises rules governing the operation of civilian aerodromes and airports in Canada.

In section 302.07 Obligations of Operator, a proposed addition will require the airport operator to assign duties on the airside to only employees who have successfully completed a safety-related initial training course on human and organizational factors. This requirement will standardize the training requirements for airport employees with those in place for employees of other organizations at which an SMS has been introduced.

(1) requirements as to the distribution of copies of the airport operations manual after it has been approved,

(2) provisions specifying that any amendment to an airport operations manual must be treated in the same fashion as the making of an airport operations manual, and

Section 302.08 is to be amended to add that information with respect to a SMS will be required to be included in an airport operations manual.

A new Division V Safety Management System is proposed to be added to Subpart 302 Airports. The provisions in this new division will apply upon their coming into force to those ten airports, such as Toronto/Lester B. Pearson International and Vancouver International, that will be listed in subsection 302.500(1). These ten airports are the airports at which the majority of international flights arrive or depart. The provisions will apply to the remaining certified airports in Canada on and after December 1, 2008. The remaining sections of Division V will contain

(1) the requirements which an SMS must satisfy, including that it must be under the control of the accountable executive,

A provision to be included in section 302.505 Person Managing the Safety Management System will ensure that the appointment of a person to manage the SMS or the assignment of management functions to another person does not relieve the accountable executive of his or her responsibilities.

Part VIII deals with the rules that apply to the provision of air traffic services, aeronautical telecommunications, aeronautical information services and aviation weather services.

The existing definition in section 800.01 Interpretation of "ATS operations certificate" will be repealed.

In section 801.09 Training and Competency of Flight Service Specialists, a proposed addition will require a flight service specialist to have successfully completed a safety-related initial training course on human and organizational factors before acting as a flight service specialist. This requirement will standardize the training requirements for flight service specialists with those in place for air traffic controllers and for employees of other organizations at which an SMS has been introduced.

The existing Subpart 805 Safety Management Programs, which requires simply the establishment of a safety management program which provides for an internal system of oversight but does not detail the requirements of such a program, is to be replaced by a proposed new subpart titled Safety Management System. This proposed new subpart will include five sections that will set forth

(1) the requirements of an SMS, including that it must be under the control of the accountable executive,

A provision to be included in section 805.05 Person Managing the Safety Management System will ensure that the appointment of a person to manage the SMS or the assignment to management functions of another person does not relieve the accountable executive of his or her responsibilities.

These proposed Regulations Amending the Canadian Aviation Regulations are part of a significant change in regulatory approach for Transport Canada's Civil Aviation Program. They follow the introduction of the concepts of "accountable executive" and "safety management system" which were brought into the CARs with the amendments of Parts I General Provisions, IV Personnel Licensing and Training, V Airworthiness and VII Commercial Air Services, as published in the Canada Gazette, Part II, in May 2005.

These proposals build upon the work of leading safety experts and international bodies, such as the International Civil Aviation Organization (ICAO), that have been advocating that greater attention be paid to managing safety at the organizational level. Also, they acknowledge that achieving the Department's mission of developing and administering policies, regulations and programs for a safe, efficient and environmentally responsible transportation system is a shared responsibility between the regulator and the regulatees. These changing roles and consequential shifting responsibilities have necessitated an overhaul and modernizing of the legislative and regulatory framework. The consequences of not acknowledging the need for addressing these changing roles and responsibilities would leave Canadian civil aviation facing an increased risk of incidents and accidents intrinsic in today's environment of rapid technological changes and increased globalization without appropriate regulatory support to alleviate the risk. There is no alternative to regulatory action that will accomplish the necessary changes.

A preliminary scan of this initiative has been done in accordance with the criteria of Transport Canada's Strategic Environmental Assessment Policy Statement — March 2001. It is concluded from the preliminary scan that a detailed analysis is not necessary. Further assessments or studies regarding environmental effects of this initiative are not likely to yield a different determination.

Throughout the development of the aviation regulations and standards, the Department of Transport applies risk management concepts. Where there are risk implications, the analysis of these proposed amendments has led to the conclusion that the imputed risk is acceptable in light of the expected benefits.

The proposed new requirement for an applicant for or for a holder of a certificate as introduced in these proposed amendments to designate an accountable executive, and for the person designated to acknowledge, in writing, his or her acceptance of the responsibilities of this position, is unlikely to impose any immediate costs upon the aviation industry.

The concept of the accountable executive is intended to support the creation and nurturing of a safety culture within an organization by emphasizing the responsibility of a senior manager for such a culture and its results. The dissemination of the concept throughout civil aviation is one of the foundations of the implementation of SMS in aviation industry organizations and, thereby, will be a major contributor to the maintenance and enhancement of civil aviation safety.

Organizations will not need to establish a new position for the accountable executive. Rather, an acknowledgement in writing of responsibilities congruent with existing senior positions will be required. As a result, there will be no additional cost to the industry or to the Canadian economy from the proposed introduction of the accountable executive concept. The benefits in terms of supported and increased aviation safety are unquantifiable but are expected to be positive.

The proposed amendments to Part III and Part VIII deal with specific provisions which differ in detail rather than in essentials from many procedures already in place in well-managed organizations. Some costs are likely to be incurred in individual organizations by setting up new systems. However, individual organizations can expect to benefit from the reduced occurrence of incidents and accidents along with the costs that such events generate.

Because of the range in size and complexity of the organizations to which the proposed introduction of SMS will apply, an average or midpoint cost estimate is unlikely to represent any existing organization's costs. Also, many of these organizations have already instituted some or all components which are very similar to those which will be required under these proposals. Therefore, cost estimates have not been attempted for the implementation of SMS. However, anecdotal evidence is available as follows.

In support of SMS, Mr. Mike Doiron, CEO and Principal of the Moncton Flight College, (see footnote 4) has stated that his experience after implementation of a company-wide SMS at his organization has demonstrated without doubt that the cost savings (i.e. the financial benefits) from SMS have outweighed the costs of its implementation and operation. Mr. Doiron estimated that his company has saved from prevented incidents approximately $25,000 per year as a result of SMS. In addition, Moncton Flight College's ability to show its improved incident history over the five years in which SMS had been in effect enabled it to negotiate a reduction in its insurance premiums for 2005 of 22%, a one-year saving of $48,000.

Intangible benefits which Moncton Flight College has experienced as a result of its implementation of SMS include a consistently successful record on Transport Canada audits. Five audits of the flight training operations since 1999, when the SMS was instituted in this operation, have resulted in only four minor findings in total. The five AMO audits over the same period have resulted in the same record. SMS was instituted in the charter operation at Moncton Flight College in 2003. Since that time, two Transport Canada audits have been conducted with only one finding in total. Prior to 2003, one audit had six findings as a result. Mr. Doiron attributes to the excellence of his company's safety profile, as demonstrated by the audit results and the reduction in insurance premiums, two "fairly large" contracts which his company has recently won. He has estimated his cost of operating an SMS to be $20,000 per year.

Mr. Doiron emphasized that the benefits from an SMS can only be reaped from an organizational culture change. He stressed that the way the individuals, including the CEO, think must change. SMS cannot be just a paperwork exercise for this effect to be seen.

In a similar initiative to SMS which has been developed at Logan International Airport in Boston, (see footnote 5) Mass., U.S.A., an Airside Safety Working Group has been formed to create a safer work environment at this airport. The working group is a grassroots effort that brings together baggage handlers, fuel operators, airline and freight representatives, staff from the Federal Aviation Administration (FAA), Logan Operations, State Police, Fire Rescue and others familiar with the airport. Each month, the members of this group meet to identify potential hazards from their daily experience and to brainstorm about ways to neutralize those potential dangers. In the nomination of this program for the Flight Safety Foundation, 2005 Airport Safety Award, over a six-month period the initiative was credited with a 50% reduction in motor vehicle accidents on the ramp and a 20% reduction in the total number of fuel spills at Logan International Airport.

The experience of Air Transat, as presented at the 2004 Canadian Aviation Safety Seminar by Captain Michael R. Dilollo, Director of Flight Safety at Air Transat, where a safety management system was voluntarily initiated in 2002, demonstrates that the benefits from such a system are likely to outweigh the costs for the organization over time.

The overall improvement of aviation safety resulting from the interaction of many organizations where there is an SMS will generate benefits for aviation safety and the safety of the public as a whole. The prevention of one accident can preserve an aircraft valued at several million dollars as well as protecting passengers and crew from injury. The magnitude of possible benefits associated with prevention or reduction in likelihood of less catastrophic events can be evaluated using the cost of incidents, such as an in-flight shutdown of an engine, which has been estimated to cost over CAN$700,000. (see footnote 6) There were 104 incidents of engine failure or shutdown as a precautionary measure involving Canadian-registered aircraft reported to the Transportation Safety Board of Canada in 2003. Other potentially costly incidents include flight cancellations (over CAN$70,000 per event) or one-hour flight delays (over CAN$14,000 per event). Prevention of such events or reduction in the likelihood of their occurrence would benefit the organizations concerned and the industry as a whole by generating substantial savings. The introduction of an SMS requirement into the aviation environment is expected to have a positive net benefit-cost impact.

The cumulative impact of the proposed introduction of the concepts of "accountable executive" and "safety management systems" into the CARs and, thus, into the operating environment of Canadian civil aviation is expected to produce a beneficial consequence for aviation safety and the safety of the public as a whole. This positive result is anticipated to outweigh any costs associated with their introduction. Therefore, the net benefit-cost impact will be positive and will justify these proposed amendments.

The introduction of the concepts of "accountable executive" and "safety management system" to the CARs has been extensively consulted and discussed through the Canadian Aviation Regulation Advisory Council (CARAC). Starting with the meeting of the Aircraft Maintenance and Manufacturing (M&M;) Technical Committee (Part V) in February of 2000, at which the concept of "accountable executive" was introduced to the committee members, meetings of the Personnel Licensing and Training (PL&T;) Technical Committee (Part IV), the M&M; Technical Committee and the Commercial Air Service Operations (CASO) Technical Committee (Part VII) were held over the period from 2000 to 2003. In addition, members of the General Technical Committee (Part I) were briefed on the status of the safety management system provisions at their meeting of October 22, 2002, and discussed the provisions for the introduction of requirements for accountable executives and for safety management systems at their meeting of April 3, 2003. Any member of any Technical Committee is automatically also a member of the General Technical Committee (Part I). As well as receiving notification of the topics to be broached at forthcoming meetings of the Part I Technical Committee and attending those meetings at their discretion, members are regularly notified of and attend meetings of those Technical Committees dealing with individual parts of the CARs specific to their areas of concern.

At various stages, concern was expressed by stakeholders that there appeared to be inconsistencies among the provisions for different parts of the CARs. These concerns were addressed by the insertion of generic provisions in Part I. Recognition that a safety management system must be commensurate with the size, nature and complexity of the operations, activities, hazards and risks of the operation is also included in the provisions in different parts of the CARs.

Those proposals specific to Part III and Part VIII as presented in this RIAS were discussed at Special Joint Parts I, III, IV and VIII Technical Committee meetings in June and September 2005. All members of these Technical Committees received mail-outs containing the agenda and the background information on Notices of Proposed Amendments (NPAs) to be discussed at these meetings 30 days before the meeting dates.

Active membership of the Part III Technical Committee includes Don Gnatiuk, Kathryn Gamble-Lerchner, Al Mazur, Ken R. Clarke, David Olsen, Mark Townsend, Abbotsford Airport, ACAP, Aero Club of Canada, Aéroport de Québec Inc., Aéroport de Saint-Léonard, Aéroport régional de Val-d'Or, Aéroport exécutif Gatineau-Ottawa, Aéroports de Montréal, Air Canada, Air Canada Jazz, Air Canada Pilots Association, Air Line Pilots Association, Air Passenger Safety Group, Air Research Technology Inc., Air Transport Association of America, Air Transport Association of Canada, Airport Management Conference of Ontario, Airservices Australia, Alberta Transportation, Allied Wings, Alston Canada Inc., AON Reed Stenhouse Inc., APS Aviation Inc., Arbour Aviation Services Inc., Association des gens de l'air du Québec, Association québécoise des transporteurs aériens, ATCO Airports Ltd., Atlantic Canada Airports Association, Aviation Alberta, Aviation International, British Columbia Ministry of Transportation, Bathurst Regional Airport Commission, BPR, British Columbia Aviation Council, Calgary Airports Authority, Campbell River Airport, Canadian Air Traffic Control Association, Canadian Airports Council, Canadian Airport Fire Protection, Canadian Association of Fire Chiefs, Canadian Association of Instrument Procedures Designers, Canadian Auto Workers, Canadian Aviation Institute, Canadian Business Aviation Association, Canadian Owners and Pilots Association, Canadian Union of Public Employees, Central Mountain Air, Charlo Airport Commission Inc., Charlottetown Airport Authority, City of Timmins, Civil Air Search and Rescue Association, Civil Aviation Authority — Jamaica, Civil Aviation Tribunal, Clearwater Fine Foods Inc., Council of Canadian Fire Marshalls and Fire Commissioners, Consulting Services Ltd., County of Lethbridge Airport, Deer Lake Regional Airport, Department of National Defence, Dessau Soprin, District of Campbell River, EAA Canadian Council, Edmonton Airports, Edmonton Regional Airports Authority, Federation of Canadian Municipalities, Fire Cross Consultant Inc., First Air, G Y Sebastyan & Association Ltd./Airports Consulting Associates — Canada, Georgian College, Government of Manitoba, Government of the Northwest Territories, Government of Nova Scotia, Government of Nunavut, Government of Ontario, Government of Prince Edward Island, Government of Quebec, Government of Saskatchewan, Government of Yukon, Greater Fredericton Airport Authority Inc., Greater Toronto Airports Authority, Greater Victoria Marine Air Safety Society, Grey Owl Aviation Consultants, Halifax International Airport Authority, Hamilton International Airport, Harmony Airways, Helicopter Association of Canada, International Aircraft Owners and Pilots Association, International Association of Airport Executives Canada, International Association of Fire Fighters, Intervistas, Iqaluit Airport, John G. Diefenbaker Airport, Saskatoon, Saskatchewan, Keewatin Air, Kelowna International Airport, Kingston (Norman Rogers) Airport, Langley Flying School Inc., Lindsay & Associates Fire Services Inc., LPS Aviation Inc., Manitoba Aviation Council, Marshall Macklin Monaghan, Medicine Hat Municipal Airport, Miramichi Airport Commission (1993) Inc., Mission Aviation Fellowship of Canada, Morrison Hershfield, Muskoka Airport, Nanaimo Airport Commission, NAV CANADA, National Fire Protection Association, Niagara District Airport Commission, North Wright Air, Northern Air Transport Association, Ottawa MacDonald-Cartier International Airport Authority, Pacific A.M.E. Association, Powell River Fire Rescue, Pryde Schropp McComb Inc., Qualimetrics Inc., Rapid Aircraft Repair Inc., Flying Colours Corp., Ray Rohr Consulting Ltd., Regina Airport Authority, Regional Community Airports Coalition of Canada, Saint John Airport Inc., Saskatoon Fire Department, Sault College of Applied Arts and Technology, Sault Ste. Marie Airport, Sept-Îles Airport, Serco Aviation Services Inc., SMS Aviation Safety Inc., St. John's International Airport, Stars Aviation Canada Inc., Statistics Canada, Stewart & Associates SMS Ltd., Sydney Airport Authority, Teamsters Canada, The Regional Municipality of Wood Buffalo, Thunder Bay International Airports Authority Inc., Timmins Airport, Toronto City Centre Airport, Town of Wabush, Transport 2000, Transportation Safety Board of Canada, Tristar Electric Inc., Union of Canadian Transportation Employees, Ultralight Pilots Association of Canada, URSA International, Vancouver Airport Services, Vancouver International Airport Authority, Vector 360 Consulting Inc., Victoria Airport Authority, Victoria Harbour Residents Association, Warner McAfee Inc., Waterloo Regional Airports, WestJet Airlines, Windsor Airport, and Winnipeg Airports Authority Inc.

The active membership of the Part VIII Technical Committee includes Robert J. Allen, John Baldwin, Ken R. Clarke, Jean-Marc Elie, Kathryn Gamble-Lerchner, Ian Grant, Mark Townsend, Aero Club of Canada, Aéroports de Montréal, Air Canada, Air Canada Jazz, Air Canada Pilots Association, Air Line Pilots Association, Air Passenger Safety Group, Air Research Technology Inc., Air Transport Association of Canada, Allied Wings, APS Aviation Inc., Arbour Aviation Services Inc., Association des gens de l'air du Québec, Association québécoise des transporteurs aériens, Aviation International, Aviation Services, British Columbia Ministry of Transportation, Bell Helicopter Textron Canada, British Columbia Aviation Council, CAE Electronics, Canadian Aerial Applicators Association, Canadian Air Line Pilots Association, Canadian Air Traffic Control Association, Canadian Airports Council (CAC), Canadian Association of Instrument Procedures Designers, Canadian Auto Workers, Canadian Aviation Maintenance Council, Canadian Aviation Operations Service Specialist, Canadian Business Aviation Association, Canadian Owners and Pilots Association, Canadian Union of Public Employees, CHC Helicopters International Inc., Civil Aviation Authority — Jamaica, Civil Aviation Tribunal, Clearwater Fine Foods Inc., Department of National Defence, EAA Canadian Council, Edmonton Regional Airports Authority, Environment Canada, Federation of Canadian Municipalities, First Air, Government of the Northwest Territories, Government of Nunavut, Government of Quebec, Government of Yukon, Greater Toronto Airports Authority, Helicopter Association of Canada, International Brotherhood of Electrical Workers, International Federation of Airline Dispatcher's Association, Intervistas, KSK Industries Inc., Langley Flying School Inc., LPS Aviation Inc., Manitoba Aviation Council, McCain Foods Ltd., Mission Aviation Fellowship of Canada, NAV CANADA, Niagara District Airport Commission, Oceans Ltd., Pacific A.M.E. Association, Policyshop.com, Presentey Engineering Products Ltd., Pryde Schropp McComb Inc., Qualimetrics Inc., Rapid Aircraft Repair Inc., Flying Colours Corp., Ray Rohr Consulting Ltd., Sault College of Applied Arts and Technology, Serco Facilities Management Inc., Simdel Flight Academy, SMS Aviation Safety Inc., Soaring Association of Canada, St. John's International Airport, Stars Aviation Canada Inc., Statistics Canada, Stewart & Associates SMS Ltd., Teamsters Canada, Air Traffic Specialist Association of Canada, Transport 2000, Transportation Safety Board of Canada, Union of Canadian Transportation Employees, URSA International, UVS Canada, Vancouver International Airport Authority, Warner McAfee Inc., WestJet Airlines, and Zip Air Inc.

Following the Special Joint Technical Committee meetings in June and September 2005, dissents on these proposals were received from NAV CANADA, CAC, the Airports Division Government of the Northwest Territories, the Ministry of Transportation and Government Services of Manitoba, and Service du transport aérien, Ministère des Transports du Québec.

A special Civil Aviation Regulatory Committee (CARC) meeting was held on January 23, 2006, at which the members of CARC reviewed the NPAs and the associated dissents. CARC is composed of senior managers within the Civil Aviation Directorate of Transport Canada. The dissents and Transport Canada's responses are summarized as follows.

NAV CANADA, CAC and the Ministry of Transportation and Government Services of Manitoba expressed concerns with respect to the consultation process followed for introducing the SMS requirements into the different parts of the CARs. They stated that these proposals had been drafted in isolation from the aviation community and, therefore, the language is inappropriate and restricts the ability of an SMS to appropriately and effectively manage safety risks. Also, they stated that, while appreciating the difficulty of consulting SMS amendments with all parts at the same meeting, the Part III and VIII representatives felt that Part V and, to a lesser extent, Part VII representatives had been determinate in formulating the provisions and there had been little opportunity for the representatives of other parts to effect modifications.

Transport Canada's response was that the SMS provisions would provide the framework for the development of a SMS which would be broadly defined. How an organization builds the components that comprise their SMS will depend on the size and complexity of the organization and should be tailored to the organization. The requirements in Part I are performance-based and flexible enough to allow for organization-specific development.

All the CARAC membership was originally consulted on SMS through the review of the generic Part I SMS requirements. As a result of the extensive consultations that have taken place, Transport Canada believes that industry has been allowed to have a good expectation of the relative standardization sought among the various parts of the CARs. SMS has formed the subject of various consultation meetings for over three years using the CARAC process and including the 2004 Canadian Aviation Safety Seminar.

CAC, the Ministry of Transportation and Government Services of Manitoba, and Service du transport aérien, Ministère des Transports du Québec raised the issue of the proposed inclusion of employee representatives as parties to the consultation with respect to the implementation and continuing development of an SMS culture within an organization. They queried whether this would mean the necessity of including union representatives in such consultations and Transport Canada's right to impose such a regulatory requirement.

Transport Canada agreed that such a requirement to include union representatives was outside their purview and withdrew the terminology "and their representatives" from the provisions. These dissents were upheld.

NAV CANADA and the Airports Division, Government of the Northwest Territories expressed concern regarding the inclusion of requirements for a quality assurance process within the SMS provisions. Their concerns were based on previous experience that the quality assurance process focuses upon compliance with regulatory requirements and has the finding of culpability tied to it whereas SMS is non-punitive, except for cases in which negligent or criminal activity has occurred. They felt that the inclusion of a quality assurance requirement could lead to an emphasis on regulatory compliance without supplying comprehensive safety overview by all of those involved within the operation.

Transport Canada responded that it had always been the intention to include quality assurance as a basic component of the SMS requirements. As the SMS requirements encompass the CARs, the CARC members believe that an organization should have a mechanism for ensuring compliance with the regulations. Non-compliance to the regulations, standards and approved procedures is a major risk to an organization. Without the knowledge of its compliance status, an organization might be exposing itself to significant safety issues. Transport Canada does not believe that a quality assurance process within an SMS holds the auditee any more culpable than the individual who self-reports an error. The non-punitive principles of SMS should be applied equally to all components.

Within the context of SMS, the quality assurance is deemed to be non-specific to include at least the compliance to regulatory requirements, which is an important requirement of SMS, but not to be limited to prevent inclusion of additional elements, such as record keeping, performance comparison against external organizations and industry best practices.

Further, the components of any quality assurance program include the elements of impartiality and direct reporting to the accountable executive, which are both corporate in nature and will, in the future, most likely be accepted by the regulator to observe trends and minimize the regulatory burden to operators.

The Ministry of Transportation and Government Services of Manitoba, and Service du transport aérien, Ministère des Transports du Québec expressed concern about the costs to small remote airports if they are required to conduct a risk analysis to demonstrate that quality assurance duties at these sites could be performed by someone who has other responsibilities as well.

In response, CARC members noted that guidance and standards for smaller airports would be developed, along with guidance, to assist the smaller operators in providing a risk analysis to justify which personnel will perform quality assurance duties.

NAV CANADA requested withdrawal of the proposed provisions for a quality assurance process as part of the SMS.

In response, Transport Canada indicated that a separate meeting with NAV CANADA had been held to discuss its current quality assurance practice. It did not appear to Transport Canada that its practice was contrary to the proposed requirements.

To ensure compliance with the CARs, the SMS quality assurance process is considered a basic component forming an integral part of the Part I generic SMS requirements. For this reason, CARC rejected the request to consider a new regulatory initiative by establishing a special working group to address the quality assurance requirements, as they apply to all types of certificate holders and all types of operations.

(6) No risk assessment to demonstrate need for regulatory Changes to SMS in Part VIII

NAV CANADA also indicated displeasure that no risk assessment appeared to have been consulted to indicate why significant changes to SMS are required for Part VIII. This organization has been proactive in implementing SMS and has undergone a successful SMS audit. It queried the rationale for regulatory changes.

In response, Transport Canada declared that its decision to establish a consistent SMS framework throughout the regulated industry was based on time-tested SMS concepts adopted worldwide in various other industries and already subjected to a thorough risk assessment process. The SMS requirements are uniform for all certificate holders and there is no intention to alter the Civil Aviation SMS policy to accommodate a single company.

(7) Requirement for activities of a certificate holder to be "effective" pursuant to the regulations

Service du transport aérien, Ministère des Transports du Québec pointed out that since the goal of a quality assurance program is to ensure that the activities of a certificate holder are carried out in compliance with the regulations and that this type of program refers to performance concepts in the conduct of activities, it does not seem appropriate for Transport Canada to require, with respect to the quality assurance program, that the activities of a certificate holder be "effective" pursuant to the regulations.

In response, Transport Canada agreed with the point raised and amended the proposed wording accordingly.

(8) Inappropriate requirement to document SMS and quality assurance program in airport operations manual

Service du transport aérien, Ministère des Transports du Québec also raised the issue that there appeared to be a contradiction between a requirement which was proposed in two sections to document some elements of SMS and of the quality assurance program in the airport operations manual and a different section which indicated that the certificate holder could decide to incorporate these elements in a separate document.

Transport Canada agreed with the position of the dissenter and removed the requirement to document these elements in the airport operations manual. However, a requirement was added that the location of elements not documented in the airport operations manual must be referenced in the manual.

As well as the customary CARAC consultation process, the concept of safety management systems was the focus of the 2004 Canadian Aviation Safety Seminar, which was attended by nearly 400 delegates from industry and Government. Workshops on implementation of SMS were well attended. A featured speaker at a plenary meeting of all the delegates held on Wednesday, April 21, 2004, was Captain Michael R. Dilollo, Director of Flight Safety at Air Transat, who discussed Air Transat's experience with developing and implementing SMS. Captain Dilollo emphasized the benefits in terms of cost savings which Air Transat was experiencing from SMS.

Transport Canada has developed a proactive, flexible enforcement policy with which to approach the evolving safety framework introduced with the safety management system. Transport Canada will not compromise safety, nor ignore any contraventions of the regulations, but will encourage the development of a safety culture as an essential element of the SMS framework. When a certificate holder governed by an SMS allegedly commits a contravention that is not deliberate, a delay in the completion of Transport Canada's investigation process will allow the operator enough time to develop proposed corrective measures and an action plan that will adequately address the deficiencies that led to the contravention. In cases where either the corrective measures or the systems in place to address the event are not considered appropriate by Transport Canada, officials will continue to interact with the certificate holder to find a satisfactory resolution that will prevent further enforcement action.

Transport Canada will retain the authority to enforce the proposed amendments to the Canadian Aviation Regulations through the assessment of monetary penalties imposed under sections 7.6 to 8.2 of the Aeronautics Act, through suspension or cancellation of a Canadian aviation document or through judicial action introduced by way of summary conviction as per section 7.3 of the Aeronautics Act in extreme cases where a satisfactory resolution cannot be arrived at.

Chief
Regulatory Affairs, AARBH
Safety and Security
Transport Canada
Place de Ville, Tower C
Ottawa, Ontario
K1A 0N8
Telephone: 613-993-7284 or 1-800-305-2059
Fax: 613-990-1198
Web site: www.tc.gc.ca

Notice is hereby given that the Governor in Council proposes, pursuant to section 4.9 (see footnote a) and subsections 6.71(3) (see footnote b) and 7.6(1) (see footnote c) of the Aeronautics Act, to make the annexed Regulations Amending the Canadian Aviation Regulations (Parts I, III and VIII).

Interested persons may make representations concerning the proposed Regulations to the Minister of Transport, Infrastructure and Communities within 30 days after the date of publication of this notice. All such representations should cite the Canada Gazette, Part I, and the date of publication of this notice. Each representation must be in writing and be sent to the Chief, Regulatory Affairs (AARBH), Civil Aviation, Safety and Security Group, Department of Transport, Place de Ville, Tower C, 330 Sparks Street, Ottawa, Ontario K1A 0N5 (general inquiries — tel.: 613-993-7284 or 1-800-305-2059; fax: 613-990-1198; Internet address: http://www.tc.gc.ca).

Persons making representations should identify any of those representations the disclosure of which should be refused under the Access to Information Act, in particular under sections 19 and 20 of that Act, and should indicate the reasons why and the period during which the representations should not be disclosed. They should also identify any representations for which there is consent to disclosure for the purposes of that Act.

1. (1) The definition "ATS" or "air traffic services" in subsection 101.01(1) of the Canadian Aviation Regulations (see footnote 7) is replaced by the following:

"ATS" or "air traffic services" includes air traffic control services, advisory services and flight information services; (ATS ou services de la circulation aérienne)

(2) Subsection 101.01(1) of the Regulations is amended by adding the following in alphabetical order:

"airside" means the movement area of an aerodrome, adjacent terrain and buildings or portions thereof, access to which is controlled; (côté piste)

"ATS operations certificate" means a certificate issued under Part VIII that authorizes the holder of the certificate to operate an air traffic control unit or a flight service station; (certificat d'exploitation des ATS)

2. Section 103.12 of the Regulations is amended by striking out the word "and" at the end of paragraph (f) and by adding the following after paragraph (g):

(i) any person who is employed or contracted by its operator on a full- or part-time basis as the airport manager, or any person who occupies an equivalent position,

(ii) any person who exercises control over the airport as an owner, and

(iii) the accountable executive appointed by its operator under section 106.02; and

(i) any person who is employed or contracted by the provider of air traffic services on a full- or part-time basis as the operations manager or any person who occupies an equivalent position,

(ii) any person who exercises control over the provider of air traffic services as an owner, and

(iii) the accountable executive appointed by the provider of air traffic services under section 106.02.

3. (1) Part III of Schedule II to Subpart 3 of Part I of the Regulations is amended by adding the following after the reference "Section 302.308":

(2) The references "Subsection 805.01(1)" and "Subsection 805.01(2)" in column I of Subpart 5 of Part VIII of Schedule II to Subpart 3 of Part I of the Regulations and the corresponding amounts in Column II are replaced by the following:

4. Paragraphs 106.01(a) to (d) of the Regulations are replaced by the following:

(d) an approved maintenance organization (AMO) certificate issued under section 573.02;

(e) an air operator certificate issued under section 702.07, 703.07, 704.07 or 705.07; and

5. Section 106.04 of the French version of the Regulations is replaced by the following:

106.04 Si le titulaire d'un certificat est titulaire de plus d'un certificat visé à l'article 106.01, un seul gestionnaire supérieur responsable qui sera chargé des opérations ou des activités autorisées en vertu des certificats est nommé en vertu de l'alinéa 106.02(1)a).

6. (1) The portion of section 107.01 of the Regulations before paragraph (a) is replaced by the following:

107.01 (1) This Subpart, except for paragraph 107.03(g), applies to an applicant for, or a holder of, one of the following certificates:

(2) Section 107.01 of the Regulations is amended by adding the following after subsection (1):

(2) This Subpart applies to an applicant for, or a holder of, one of the following certificates:

7. Paragraphs 107.03(g) and (h) of the Regulations are replaced by the following:

(h) a process for conducting periodic reviews or audits of the safety management system and reviews or audits for cause of the safety management system; and

(i) any additional requirements for the safety management system that are prescribed under these Regulations.

8. Subsection 302.07(1) of the Regulations is amended by striking out the word "and" at the end of subparagraph (e)(iii), by adding the word "and" at the end of paragraph (f) and by adding the following after paragraph (f):

(g) assign duties on the airside only to employees who have successfully completed a safety-related initial training course on human and organizational factors.

9. Section 302.08(4) of the Regulations is amended by striking out the word "and" at the end of subparagraph (d)(v), by adding the word "and" at the end of paragraph (e) and by adding the following after paragraph (e):

(i) a description of the system's components specified in section 302.502, and

(ii) a list of the titles, dates and locations of any documents not in the airport operations manual that describe how the operator is meeting its obligations with respect to the safety management system.

10. The Regulations are amended by adding the following after the reference "[302.309 to 302.400 reserved]":

302.500 (1) This Division applies to an applicant for, or a holder of, an airport certificate issued under section 302.03 in respect of the following airports:

(2) On and after December 1, 2008, this Division applies to an applicant for, or a holder of, an airport certificate issued under section 302.03.

302.501 The safety management system required under section 107.02 in respect of an applicant for, or a holder of, an airport certificate shall

(b) be under the control of the accountable executive appointed under paragraph 106.02(1)(a).

302.502 The safety management system shall include, among others, the following components:

(i) a safety policy that the accountable executive has approved and communicated to all employees,

(ii) the roles and responsibilities of personnel assigned duties under the safety management system,

(iii) performance goals and a means of measuring attainment of those goals,

(iv) a policy for the internal reporting of hazards, incidents and accidents, including the conditions under which immunity from disciplinary action will be granted, and

(v) a process for reviewing the safety management system to determine its effectiveness;

(b) procedures for reporting hazards, incidents and accidents to the appropriate manager;

(d) procedures for the exchange of information in respect of hazards, incidents and accidents among the airport operator, the operators of aircraft on the airside, the provider of air traffic services at the airport and the Minister;

(e) procedures for analysing data obtained under paragraph (d) and during an audit conducted under a quality assurance program required under paragraph 107.03(g) and for taking corrective actions;

(f) training requirements for the person managing the safety management system and for personnel assigned duties under the safety management system;

(g) procedures for making progress reports to the accountable executive at intervals determined by the accountable executive and other reports as needed in urgent cases; and

(h) procedures for involving employees in the implementation and on-going development of the safety management system.

302.503 (1) The quality assurance program required under paragraph 107.03(g) in respect of an applicant for, or a holder of, an airport certificate shall include a process for quality assurance that includes periodic reviews or audits of the activities authorized under a certificate and reviews or audits for cause of those activities.

(2) The holder of an airport certificate shall ensure that records relating to the findings resulting from the quality assurance program are distributed to the appropriate manager for corrective action and follow-up in accordance with the policies and procedures specified in the airport operations manual.

(3) The holder of an airport certificate shall establish an audit system in respect of the quality assurance program that consists of the following:

(i) in the case of an airport specified in subsection 302.500(1), the later of December 1, 2007, and the date the airport certificate is issued,

(ii) in the case of any other airport, the later of December 1, 2008, and the date the airport certificate is issued;

(b) an audit of the whole quality assurance program carried out every three years, calculated from the initial audit, in one of the following ways:

(i) a complete audit, or

(ii) a series of audits conducted at intervals set out in the airport operations manual;

(d) a record of each occurrence of compliance or non-compliance with the airport operations manual found during an audit referred to in paragraph (a) or (b);

(e) procedures for ensuring that each finding of an audit is communicated to the accountable executive;

(f) follow-up procedures for ensuring that corrective actions are effective; and

(g) a system for recording the findings of an audit referred to in paragraph (a) or (b), corrective actions and follow-ups.

(4) The records resulting from a system required under paragraph (3)(g) shall be retained for the greater of

(5) The duties related to the quality assurance program that involve specific tasks or activities among the activities of an airport shall be fulfilled by persons who are not responsible for carrying out those tasks or activities, unless

(a) the size, nature and complexity of the operations and activities authorized under the airport certificate justify the fulfilling of those duties by the person responsible for carrying out those tasks or activities;

(b) the holder of the airport certificate demonstrates to the Minister, by means of a risk analysis, that the fulfilling of those duties by the person responsible for carrying out those tasks or activities will not result in an unacceptable risk to aviation safety; and

(c) the holder of the airport certificate provides the Minister, in writing, with the information set out in paragraphs (a) and (b).

(a) ensure that corrective actions are taken in respect of any findings resulting from the safety management system referred to in section 302.501;

(a) establish and maintain a reporting system to ensure the timely collection of information related to hazards, incidents and accidents that may adversely affect safety;

(c) investigate, analyze and identify the cause or probable cause of all hazards, incidents and accidents identified under the safety management system;

(d) establish and maintain a safety data system, by either electronic or other means, to monitor and analyze trends in hazards, incidents and accidents;

(e) monitor and evaluate the results of corrective actions with respect to hazards, incidents and accidents;

(f) monitor the concerns of the civil aviation industry in respect of safety and their perceived effect on the holder of the airport certificate; and

(2) The person managing the safety management system shall, where a finding resulting from the safety management system referred to in section 302.501 is reported to them,

(a) determine what, if any, corrective actions are required and carry out those actions;

(b) keep a record of any determination made under paragraph (a) and the reason for it;

(c) if management functions have been assigned to another person under subsection (3), communicate any determination regarding a corrective action to that person; and

(d) notify the certificate holder of any systemic deficiency and of the corrective action taken.

(3) The person managing the safety management system may assign the management functions for the safety management system referred to in section 302.501 to another person if the assignment and its scope are described in the airport operations manual.

(4) The person to whom management functions have been assigned under subsection (3) shall notify the person managing the safety management system of any systemic deficiency and of the corrective action taken.

(5) The responsibility of the accountable executive is not affected by the appointment of a person to manage the safety management system under paragraph 302.504(b) or the assignment of management functions to another person under subsection (3).

11. The definition "ATS operations certificate" in subsection 800.01(1) of the Regulations is repealed.

(i) training that has been accepted by the Minister in the performance of the functions of a flight service specialist, and

(ii) a safety-related initial training course on human and organizational factors; and

805.01 The safety management system required under section 107.02 in respect of an applicant for, or a holder of, an ATS operations certificate shall

(b) be under the control of the accountable executive appointed under paragraph 106.02(1)(a).

805.02 (1) The safety management system shall include, among others, the following components:

(i) a safety policy that the accountable executive has approved and communicated to all employees,

(ii) the roles and responsibilities of personnel assigned duties under the safety management system,

(iii) performance goals and a means of measuring attainment of those goals,

(iv) a policy for the internal reporting of hazards, incidents and accidents, including the conditions under which immunity from disciplinary action will be granted, and

(v) a process for reviewing the safety management system to determine its effectiveness;

(b) procedures for reporting hazards, incidents and accidents to the appropriate manager;

(d) procedures for the exchange of information in respect of hazards, incidents and accidents among the provider of air traffic services at an airport, the operators of aircraft on the airside, the airport operator and the Minister;

(e) procedures for analysing data obtained under paragraph (d) and during an audit conducted under section 805.03 and for taking corrective actions;

(f) training requirements for the person managing the safety management system and for personnel assigned duties under the safety management system;

(g) procedures for making progress reports to the accountable executive at intervals determined by the accountable executive and other reports as needed in urgent cases; and

(h) procedures for involving employees in the implementation and on-going development of the safety management system.

(2) The components specified in subsection (1) shall be set out in a manual established by the holder of the ATS operations certificate.

805.03 (1) The quality assurance program required under paragraph 107.03(g) in respect of an applicant for, or a holder of, an ATS operations certificate shall include a process for quality assurance that includes periodic reviews or audits of the activities authorized under a certificate and reviews or audits for cause of those activities.

(2) The holder of an ATS operations certificate shall ensure that records relating to the findings resulting from the quality assurance program are distributed to the appropriate manager for corrective action and follow-up in accordance with the policies and procedures specified in the manual established under subsection 805.02(2).

(3) The holder of an ATS operations certificate shall establish an audit system in respect of the quality assurance program that consists of the following:

(a) an initial audit conducted within 12 months after the date on which the ATS operations certificate is issued;

(b) an audit of the whole quality assurance program carried out every three years, calculated

(i) in the case of an ATS operations certificate issued before December 1, 2007, from that date, and

(ii) in the case of an ATS operations certificate issued on or after December 1, 2007, from the date of the initial audit;

(d) a record of each occurrence of compliance or non-compliance with the checklists in respect of the activities carried out under the certificate that is found during an audit referred to in paragraph (a) or (b);

(e) procedures for ensuring that each finding of an audit is communicated to the accountable executive;

(f) follow-up procedures for ensuring that corrective actions are effective; and

(g) a system for recording the findings of an audit referred to in paragraph (a) or (b), corrective actions and follow-ups.

(4) The audit of the whole quality assurance program referred to in paragraph (3)(b) shall be carried out in one of the following ways:

(b) as a series of audits conducted at intervals determined by the holder of the ATS operations certificate and set out in the manual established under subsection 805.02(2).

(5) The records resulting from a system required under paragraph (3)(g) shall be retained for the greater of

(6) The duties related to the quality assurance program that involve specific tasks or activities among the activities of an ATS operations certificate holder shall be fulfilled by persons who are not responsible for carrying out those tasks or activities, unless

(a) the size, nature and complexity of the operations and activities authorized under the ATS operations certificate justify the fulfilling of those duties by the person responsible for carrying out those tasks or activities;

(b) the holder of the ATS operations certificate demonstrates to the Minister by means of a risk analysis, that the fulfilling of those duties by the person responsible for carrying out those tasks or activities will not result in an unacceptable risk to aviation safety; and

(c) the holder of the ATS operations certificate provides the Minister, in writing, with the information set out in paragraphs (a) and (b).

(a) ensure that corrective actions are taken in respect of any findings resulting from the safety management system referred to in section 805.01;

(a) establish and maintain a reporting system to ensure the timely collection of information related to hazards, incidents and accidents that may adversely affect safety;

(c) investigate, analyze and identify the cause or probable cause of all hazards, incidents and accidents identified under the safety management system;

(d) establish and maintain a safety data system, by either electronic or other means, to monitor and analyze trends in hazards, incidents and accidents;

(e) monitor and evaluate the results of corrective actions with respect to hazards, incidents and accidents;

(f) monitor the concerns of the civil aviation industry in respect of safety and their perceived effect on the holder of the ATS operations certificate; and

(2) The person managing the safety management system shall, where a finding resulting from a quality assurance program referred to in subsection 805.03(1) or a safety management system referred to in section 805.01 is reported to them,

(a) determine what, if any, corrective actions are required and carry out those actions;

(b) keep a record of any determination made under paragraph (a) and the reason for it;

(c) if management functions have been assigned to another person under subsection (3), communicate any determination regarding a corrective action to that person; and

(d) notify the certificate holder of any systemic deficiency and of the corrective action taken.

(3) The person managing the safety management system may assign the management functions of the safety management system referred to in section 805.01 to another person if the assignment and its scope are described in the manual referred to in subsection 805.02(2).

(5) The responsibility of the accountable executive is not affected by the appointment of a person to manage the safety management system under paragraph 805.04(b) or the assignment of management functions to another person under subsection (3).

A certificate that authorizes the holder to operate an air traffic control unit or a flight service station.

The certificates referred to are Canadian aviation documents issued by the Minister which authorize their holders to provide various services or products necessary for the conduct of civil aviation operations.

Canadian Aviation Regulations, Part I, section 101.01, Department of Transport, Infrastructure and Communities, Ottawa, Canada.

Teleconference between Mr. Doiron and Transport Canada Civil Aviation Regulatory Services on September 27, 2006.

Email from Deputy Fire Chief Jack Kreckie, Chief of Operations, Massport Fire Rescue Department, Logan International Airport, Boston, Mass.

These costs are based on 1996 estimates by the Boeing Aircraft Corporation of US$500,000 for the in-flight shutdown of an engine, US$50,000 for a flight cancellation and US$10,000 per hour for a flight delay.