Regulatory Alert: FAA Releases Airport SMS Final Rule

The Federal Aviation Administration (FAA) released the final rule on airport safety management systems (SMS), which will require about half of all Part 139 certificated airports to establish an SMS for the entire airfield environment within the next 4 to 5 years, depending on the size of the airport. Under the rule, FAA heard feedback from AAAE and the airport community and provided airports with additional time and flexibility to implement an SMS program. Today's rule was accompanied by several FAA resources to help airports navigate the new requirements, including an updated advisory circular, a Part 139 CertAlert, a Frequently Asked Questions (FAQ) document, and other information. 

AAAE will be hosting a virtual discussion with members on Tuesday, February 21, at 1-2 p.m. ET, to discuss the final rule. You can sign up to receive a calendar invite for the meeting using the form here. The purpose of the discussion will be to provide members with a high-level overview of the rule and facilitate a discussion with members. FAA informed AAAE that the agency will be hosting a virtual industry day on Thursday, March 30, to help educate airports on the new rule and to answer questions. We will provide more details about how to participate as soon as they are available. 

A summary of key takeaways from our initial review of the final rule is provided below. Throughout the implementation period, AAAE will be working very closely with our members, FAA, and industry partners to ensure airports have the resources and flexibility to implement an SMS program that is tailored to their unique operating environment and with as minimal burden as possible.

Background on Airport SMS Rulemaking. As many airports are aware, FAA's rulemaking on airport SMS has a very long history. FAA released the original notice of proposed rulemaking (NPRM) in 2010. AAAE and the airport community raised major questions about the scope and cost, administrative burdens, and liability issues, among other things, associated with that proposal. In 2016, FAA published a supplemental NPRM (SNPRM), which addressed many of those concerns but also raised new issues to which AAAE and others responded. However, under the previous administration, FAA was unable to gain traction on issuance of a final rule. 

In August 2021, FAA reopened the comment period for the rulemaking, providing a 30-day window for industry to provide the agency with any new information not previously shared. AAAE submitted comments in response to this reopened comment period, highlighting the need for flexible implementation timelines and raising concerns about costs of the rule. The rule had been under review at the White House's Office of Management and Budget (OMB) since May 2022 until it was cleared last week. 

Key Takeaways from Final Rule. Based on our initial review, AAAE developed the following summary of the key takeaways of the final rule: 

• Applicability: FAA will not require all Part 139 airports to have an approved SMS program. The requirement is limited to Part 139 certificated airports meeting one of the following three criteria: (1) classified as large, medium, or small hub based on passenger data from the FAA Air Carrier Activity Information System; or (2) classified as a port of entry, designated international airport, landing rights airport, or user fee airport; or (3) having an average of 100,000 or more total annual operations (the sum of all arrivals and departures) over the previous 3 calendar years. Any airport that must comply by virtue of being an international airport can obtain a waiver if it has no tenants that are required to have an SMS program. FAA stated that 258 out of 517 Part 139 airports will be required to have an SMS program. The list of airports that will be required to implement the new requirements can be viewed here. 

• Scope of Program/Non-Movement Areas: The airport SMS program will have to cover the entire airfield environment, including both the movement and non-movement areas. FAA adopted the regulations addressing scope of the SMS program as originally proposed in the SNPRM.  

• Required Components of SMS Program: In terms of the components that must be included in the SMS program, the rule will require airports to develop an organization-wide safety policy; develop formal methods for identifying hazards and analyzing and mitigating risk; develop methods for ensuring continuous safety improvement; and create organization-wide safety promotion strategies. 

• Training: FAA will require certificate holders to conduct SMS training for airport and tenant personnel. This will include two types of training: (1) comprehensive SMS training specific to the individual's role and responsibility in implementing and maintaining the SMS program; and (2) safety awareness orientation training for all persons authorized to access the movement and non-movement areas. 

• Data Protection: FAA will not require airports to submit any safety-related data to the agency on a regular basis, except upon request (likely during a period inspection). The rule does not specify how airports must collect data; it only specifies the length of time that data must be retained. FAA did not provide any protection for airports from potential disclosures pursuant to state or local records requests. 

• Accountable Executive: Airports will be required to identify an 'accountable executive' who will be responsible for implementing and maintaining the airport SMS program. FAA adopted the same definition of 'accountable executive' as originally proposed in the SNPRM. 

• Data Sharing and Reporting Plan: FAA will allow airports to develop data sharing and reporting plans with tenants required to maintain an SMS program. If that plan exists, an airport does not have to provide safety awareness orientation to those tenants or their employees. This is a new provision not originally proposed in the SNPRM. 

• Implementation Plan and SMS Documentation: Airports will be required to submit an 'implementation plan' to FAA that outlines its plan and schedule for implementing SMS; the deadline for submitting this document depends on the size of the airport. Within 12 months of FAA approving such plan, airports will have to submit to FAA an Airport SMS Manual and/or an updated Aircraft Certification Manual (ACM) that documents the airport's SMS program. More information is provided below on the deadlines for submitting these documents. 

• FAA Guidance on Airport SMS: While the rule outlines the requirements for an airport SMS program, AAAE has pushed FAA for a clear implementation plan and guidance. FAA released Advisory Circular (AC) 150/5200-37A, Safety Management Systems for Airports, to help airports understand how to implement a program. The guidance includes templates and forms that airports can use to help establish their programs. FAA also published a CertAlert and Frequently Asked Questions (FAQ) document that provides additional information for airports. 

• Costs/Benefits of New Rule: AAAE has repeatedly highlighted the concerns that some airports have over the costs associated with any new requirements. Based on FAA's analysis, the agency estimates that over the next 10 years, the rule will cost the industry about $179.8 million and provide $199.2 million in benefits. 

FAA's Implementation Timeline/Deadlines. Under the rule, FAA set two deadlines for Part 139 airports, which fall within the scope of the requirements, to submit their implementation plan and SMS documentation (Airport SMS Manual and/or updated ACM); these deadlines are staggered based on the size of the airport. The following summarizes when each of these documents must be submitted to FAA for approval for each of the three categories of Part 139 airports subject to the requirements: 

• Small, Medium, and Large Hub Part 139 Airports: These airports must submit their implementation plan within 12 months of the effective date of the final rule. SMS documentation (SMS Manual and/or an updated ACM) must be submitted within 12 months of FAA's approval of the implementation plan. 

• Part 139 Airports with More than 100,000 Operations: These airports must submit their implementation plan within 18 months of the effective date of the final rule. SMS documentation (SMS Manual and/or an updated ACM) must be submitted within 12 months of FAA's approval of the implementation plan. 

• Part 139 Airports with International Service: These airports must submit their implementation plan within 24 months of the effective date of the final rule. SMS documentation (SMS Manual and/or an updated ACM) must be submitted within 12 months of FAA's approval of the implementation plan.  

Under the rule, FAA will require that all Part 139 airports falling within the scope of the requirements have an operational SMS program within 36 months of the agency approving the implementation plan. For purposes of the timelines above, the 'effective date of the final rule' is 60 days after the document is published in the Federal Register, which is expected to occur in the next few weeks. 

What's Next? FAA released a pre-publication version of the final rule on its website today. As soon as the document is officially published in the Federal Register, we will update our members and provide specific implementation deadlines. Throughout the implementation timeframe, we will be working closely with our members, FAA, and industry partners to ensure a coordinated effort and airports have the resources necessary to comply within minimal complications. 

We encourage you to join us on Tuesday, February 21, at 1-2 p.m. ET, as we provide an overview of the rule and facilitate discussion. You can sign up for the virtual meeting here. As mentioned, FAA also plans to host an industry day on Thursday, March 30. 

Airport SMS Resources
• FAA SNPRM on Airport SMS (July 14, 2016) 
• Regulatory Docket for FAA's Airport SMS Rulemaking 
• AAAE's 2016 Response to the FAA SNPRM 
• AAAE's September 2021 Response to Reopened Comment Period on FAA's SNPRM 
• FAA Final Rule on Airport SMS (Pre-Publication Version) 
• FAA Website with Resources on Airport SMS Final Rule 
• FAA AC 150/5200-37A, Safety Management Systems for Airports (Feb. 16, 2023) 
• FAA Part 139 CertAlert 23-02: Airport Safety Management Systems  
• FAA Frequently Asked Questions (FAQs) on Airport SMS Final Rule 
• List of Part 139 Airports Required to Implement SMS 
• FAA Press Release on Airport SMS Final Rule