[Federal Register Volume 60, Number 108 (Tuesday, June 6, 1995)]
[Rules and Regulations]
[Pages 29753-29754]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13708]



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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 121, 125, 127, 129, and 135

[Docket No. 18510; SFAR No. 38-11]
RIN 2120-AF73


Special Federal Aviation Regulation No. 38-2; Certification and 
Operating Requirements

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule; request for comments.

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SUMMARY: This amendment establishes a new termination date for Special 
Federal Aviation Regulation [SFAR] No. 38-2, which contains the 
certification and operating requirements for persons transporting 
passengers or cargo for compensation or hire. The current termination 
date for SFAR 38-2 is June 1, 1995. Because the FAA has not completed a 
rulemaking process to consolidate and codify the certification and 
operations specifications requirements, an extension of the termination 
date is necessary. If this rulemaking process is completed before the 
new termination date of June 1, 1996, the FAA intends to rescind SFAR 
38-2 as part of that rulemaking.

DATES: Effective June 1, 1995, SFAR 38-2 terminates June 1, 1996.
    Comments must be received on or before August 1, 1995.

ADDRESSES: Send comments on the rule in triplicate to: Federal Aviation 
Administration, Office of the Chief Counsel, Attn: Rules Docket (AGC-
10), Docket No. 18510, 800 Independence Avenue, SW., Washington, DC 
20591, or deliver comments in triplicate to: Federal Aviation 
Administration, Rules Docket, Room 916, 800 Independence Avenue, SW., 
Washington, DC. Comments may be examined in the Rule Dockets weekdays, 
except Federal holidays, between 8:30 a.m. and 5 p.m.

FOR FURTHER INFORMATION CONTACT:
Mr. Gary Davis, Project Development Branch, AFS-24, Air Transportation 
Division, Flight Standards Service, Federal Aviation Administration, 
800 Independence Avenue, SW., Washington, DC 20591; Telephone (202) 
267-8096.

SUPPLEMENTARY INFORMATION:

Background

    On December 12, 1978, the FAA issued SFAR 38 [43 FR 58366; December 
14, 1978] as a consequence of the Airline Deregulation Act of 1978 (ADA 
or Act) (Pub. L. 95-504, 92 Stat. 1705). That act expresses the 
Congressional intent that the Federal Government diminish its 
involvement in regulating the economic aspects of the airline industry. 
To accomplish this, Congress directed that the Civil Aeronautics Board 
(CAB) be abolished on December 31, 1984, and that certain of its 
functions cease before that date. Anticipating its sunset, the CAB 
itself curtailed or suspended much of its regulatory activity during 
the period 1979-1984. By January 1, 1985, the remaining CAB functions 
were transferred to the Department of Transportation (DOT).
    Because some aspects of FAA safety regulations relied upon CAB 
definitions and authority, the FAA found it necessary in 1978 to adopt 
an interim measure to provide for an orderly transition to the change 
in economic regulatory activities. This action was consistent with the 
Congressional directive contained in Section 107(a) of the Act that the 
deregulation of airline economics result in no diminution of the high 
standard of safety in air transportation that existed when the ADA was 
enacted. SFAR 38 [43 FR 58366; December 14, 1978] set forth FAA 
certification and operating requirements applicable to all ``air 
commerce'' and ``air transportation'' operations for ``compensation or 
hire.'' (SFAR 38 did not address Part 133 External Load Operations, 
Part 137 Agriculture Aircraft Operations, or Part 91 training and other 
special purpose operations.)
    On December 27, 1984, the FAA issued SFAR 38-1 [50 FR 450; January 
4, 1985], which merely extended the termination date of SFAR 38 and 
allowed the FAA time to propose and receive comments on revising SFAR 
38.
    On May 28, 1985, the FAA issued SFAR 38-2 [50 FR 23941; June 7, 
1985], which updated SFAR 38 in light of changes since 1978 and 
clarified provisions stating which FAA regulations apply to each 
operator (including air carriers) and each type of operation. This 
action was necessary because of the changes in the air transportation 
industry brought about by economic deregulation. Before deregulation, 
economic certificates were rigidly compartmentalized, and each air 
carrier typically was authorized to conduct only one type of operation 
(domestic, flag, or charter (e.g., supplemental)). The safety 
certificate issued to the air carrier by the FAA paralleled the 
authorization granted in the air carrier's economic certificate. 
Economic deregulation broke down the barriers between the various types 
of operations. The economic authority granted an air carrier by the DOT 
is no longer indicative of the safety regulations applicable to the 
type of operation authorized by the FAA. Thus, it was necessary for the 
FAA to establish guidelines to determine what safety standards were 
applicable to an operator's particular operation.
    Since that time, the FAA has proposed rulemaking to codify the 
certification and operations specifications requirements currently 
found in SFAR 38-2 into a new part 119 [Notice No. 88-16] [53 FR 39852; 
October 12, 1988].
    On April 11, 1990, the FAA reopened the comment period for Notice 
No. 88-16 [55 FR 14404; April 17, 1990] for comments on the definition 
of ``scheduled operation'' and the notification requirement for changes 
to operations specifications for a period of 30 days. The reopened 
comment period closed May 17, 1990. Based on the complexity of comments 
received, the FAA subsequently published an SNPRM on June 8, 1993 [58 
FR 32248]; the comment period closed July 23, 1993.
    Recently the FAA issued a notice proposing that many part 121 
requirements should be imposed on certain part 135 operators [60 FR 
16230; March 29, 1995]. If that proposal is adopted, the rules 
specifying the applicability of parts 121, 125, and 135 would be 
codified in a new part 119. In that same NPRM, the FAA proposed to 
rescind SFAR 38-2 if a final rule affecting commuter operators and 
establishing a new part 119 is issued. However, in the meantime, SFAR 
38-2 contains the current requirements for certification and operations 
[[Page 29754]] specifications. Thus, the FAA finds it necessary to 
extend the SFAR until June 1, 1996.

Good Cause Justification for Immediate Adoption

    The reasons which justify the adoption, and the subsequent 
revision, of SFAR 38 still exist. Therefore, it is in the public 
interest to establish a new termination date for SFAR 38-2 of June 1, 
1996. If the FAA publishes a final rule adopting a new part 119 into 
the Federal Aviation Regulations before the termination date, that 
rulemaking will rescind SFAR 38-2. This action is necessary to permit 
continued operations under SFAR 38-2 and to avoid confusion in the 
administration of FAA regulations regarding operating certificates and 
operating requirements.
    For this reason, and because this amendment continues in effect the 
provisions of a currently effective SFAR and imposes no additional 
burden on any person, I find that notice and public procedures are 
unnecessary, impracticable, and contrary to the public interest, and 
that the amendment should be made effective in less than 30 days after 
publication. However, interested persons are invited to submit such 
comments as they desire regarding this amendment. Communications should 
identify the docket number and be submitted in duplicate to the address 
above. All communications received on or before the close of the 
comment period will be considered by the Administrator, and this 
amendment may be changed in light of the comments received. All 
comments will be available, both before and after the closing date for 
comments, in the rules docket for examination by interested parties.
Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (RFA) was enacted to ensure 
that small entities are not unnecessarily and disproportionately 
burdened by Government regulations. The RFA requires agencies to review 
rules which may have ``a significant economic impact on a substantial 
number of small entities.''
    This rule will not impose any additional incremental costs over 
those that would have been incurred when SFAR 38-2 was first issued. 
Therefore, I certify that the amendment will not have a significant 
economic impact on a substantial number of small entities.

International Trade Impact Analysis

    The FAA finds this amendment will have no impact on international 
trade.

Paperwork Reduction Act

    Information collection requirements in this SFAR have previously 
been approved by the Office of Management and Budget (OMB) under the 
provisions of the Paperwork Reduction Act of 1980 (Pub. L. 96-511) and 
have been assigned OMB Control Number 2120-0008.

Federalism Implications

    The amendment herein would not have substantial direct effects on 
the states, on the relationship between the national government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 12612, it is determined that this amendment would not have 
sufficient federalism applications to warrant the preparation of a 
Federalism Assessment.

Conclusion

    The FAA has determined that this document involves an amendment 
that imposes no additional burden on any person. Accordingly, it has 
been determined that this action is not significant under Executive 
Order 12866; it is not significant under DOT Regulatory Policies and 
Procedures (44 FR 11034; February 26, 1979); and the anticipated impact 
is so minimal that a full regulatory evaluation is not required.

List of Subjects

14 CFR Part 121

    Air carrier, Aircraft, Airmen, Air transportation, Aviation safety.

14 CFR Part 125

    Aircraft, Airmen, Airports, Airspace, Air traffic control, Air 
transportation, Chemicals, Children, Drugs, Flammable materials, 
Handicapped, Hazardous materials, Infants, Smoking.

14 CFR Part 127

    Air carriers, Aircraft, Airmen, Airworthiness.

14 CFR Part 129

    Air carriers, Aircraft, Airmen, Air transportation, Aviation 
safety, Safety.

14 CFR Part 135

    Air carriers, Aircraft, Airmen, Air taxis, Air transportation, 
Airworthiness, Aviation safety, Safety.

Adoption of the Amendment

    In consideration of the foregoing SFAR 38-2 (14 CFR parts 121, 125, 
127, 129, and 135) of the Federal Aviation Regulations is amended as 
follows:

PART 121--[AMENDED]

    1. The authority citation for part 121 is revised to read as 
follows:

    Authority: 49 U.S.C. 106(g), 40101, 40105, 40113, 44701-44702, 
and 44704-44705.
PART 125--[AMENDED]

    2. The authority citation for part 125 is revised to read as 
follows:

    Authority: 49 U.S.C. 106(g), 1153, 40101, 40105, 44113, 44701-
44705, 44707-44714, 44716-44717, and 44722.

PART 127--[AMENDED]

    3. The authority citation for part 127 is revised to read as 
follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701-44705, 44710-44711, 
and 44713.

PART 129--[AMENDED]

    4. The authority citation for part 129 is revised to read as 
follows:

    Authority: 49 U.S.C. 106(g), 1511-1522, 40101, 40103-40105, 
40113, 40119, 44701, 44901-44904, 44906, 44912, 44914, 44935-44939, 
and 48107.

PART 135--[AMENDED]

    5. The authority citation for part 135 is revised to read as 
follows:

    Authority: 49 U.S.C. 106(g), 1153, 40101, 40105, 44113, 44701-
44705, 44707-44717, 44722, and 45303.

    6. Special Federal Aviation Regulation No. 38-2 is amended by 
removing the words ``June 1, 1995'' in the last paragraph, and by 
adding in their place the words ``June 1, 1996.''

    Issued in Washington, DC, on May 31, 1995.
David R. Hinson,
Administrator.
[FR Doc. 95-13708 Filed 5-31-95; 4:05 pm]
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