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 BAGeneral Electric Company GE, and Raytheon Technologies Corp 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.
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