FAA Asks To Extend Safety Mandate To Detect, Mitigate Risks Early

The Federal Aviation Administration (FAA) proposed to extend the mandate to adopt Safety Management Systems (SMS) for charter, commuter, air tour operators, and aircraft manufacturers to reduce accidents.
The key safety tool is a set of policies and procedures to identify and address potential operational hazards early on proactively.
Related: Morgan Stanley Remains Positive On Aerospace & Defense Stocks Going Into 2023.
U.S. airlines have been required to have SMS since 2018 and some aerospace companies already voluntarily have SMS programs, like Boeing Co (NYSE:BA), General Electric Company (NYSE:GE), and Raytheon Technologies Corp (NYSE:RTX)-subsidiary Pratt & Whitney.
The proposed rule goes beyond the requirements of the Aircraft Certification, Safety, and Accountability Act of 2020, which directed the FAA to mandate SMS only for aircraft manufacturers.
The rule also addresses recommendations from the National Transportation Safety Board and independent review panels.
Compliance times would vary between one and two years after the rule took effect, depending on the operation.