[Federal Register Volume 62, Number 53 (Wednesday, March 19, 1997)]
[Rules and Regulations]
[Pages 13248-13257]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6797]



[[Page 13247]]

_______________________________________________________________________

Part III





Department of Transportation





_______________________________________________________________________



Federal Aviation Administration



_______________________________________________________________________



14 CFR Part 21, et al.



Operating Requirements: Domestic, Flag, Supplemental, Commuter, and On-
Demand Operations: Editorial and Other Changes; Final Rule

  Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / 
Rules and Regulations  

[[Page 13248]]



DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 21, 25, 91, 119, 121, 125 and 135

[Docket No. 28154; Amendment Nos. 21-74, 25-90, 91-253, 119-3, 121-262, 
125-28, 135-66, and SFAR No. 80]
RIN 2120-AG26


Operating Requirements: Domestic, Flag, Supplemental, Commuter, 
and On-Demand Operations: Editorial and Other Changes

March 10, 1997.
AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The FAA is amending parts 21, 25, 91, 119, 121, 125, and 135 
to correct errors, make terminology consistent, or clarify the intent 
of the regulations published on December 20, 1995 (60 FR 65832). A few 
changes are to clarify existing rules or to deal with other long-
standing exemptions). A new Special Federal Aviation Regulation is 
being issued to address three problems that relate to compliance with 
requirements for communications facilities and aircraft dispatchers by 
operators in Alaska and other areas.

EFFECTIVE DATE: March 12, 1997.

FOR FURTHER INFORMATION CONTACT:
Katherine Hakala, Flight Standards Service (AFS); Federal Aviation 
Administration, 800 Independence Avenue, SW., Washington, DC 20591; 
telephone (202) 267-8166 or 267-3760.

SUPPLEMENTARY INFORMATION:

Availability of the Final Rule

    An electronic copy of this document may be downloaded using a modem 
and suitable communications software from the FAA regulations section 
of the Fedworld electronic bulletin board service (telephone: 703-321-
3339) or the Federal Register's electronic bulletin board service 
(telephone: 202-512-1661).
    Internet users may reach the FAA's web page at http://www.faa.gov 
or the Federal Register's webpage at http://www.access.gpo.gov/su__docs 
for access to recently published rulemaking documents.
    Any person may obtain a copy of this final rule by mail by 
submitting a request to the Federal Aviation Administration, Office of 
Rulemaking, 800 Independence Avenue, SW., Washington, DC 20591, or by 
calling (202) 267-9677. Communications must identify the docket number 
of this final rule.
    Persons interested in being placed on the mailing list for future 
NPRM's should request from the FAA's Office of Rulemaking a copy of 
Advisory Circular No. 11-2A, Notice of Proposed Rulemaking Distribution 
System, that describes the application procedure.

Background

    On December 20, 1995, new part 119, Certification: Air Carriers and 
Commercial Operators, was published in the Federal Register (60 FR 
65832; December 20, 1995). Part 119 reorganizes, into one part, 
certification and operations specifications requirements that formerly 
existed in SFAR 38-2 and in parts 121 and 135. The final rule for new 
part 119 also deleted or changed certain sections in part 121, Subparts 
A through D, and part 135, Subpart A, because the requirements in those 
subparts have been recodified in part 119. On January 26, 1996, another 
final rule was published (61 FR 2608) affecting parts 119, 121, and 
135. That amendment made editorial and terminology changes in the 
remaining subparts of parts 121 and 135 to conform those parts to the 
language of part 119 and to make certain other changes. Additional 
documents making editorial changes and corrections were published on 
March 11, 1996 (61 FR 9612), and June 14, 1996 (61 FR 30432).
    Part 119 was issued as part of a large rulemaking effort, known as 
the ``commuter rule,'' to upgrade the requirements that apply to 
scheduled operations conducted in airplanes that have a passenger seat 
configuration of 10 to 30 passengers. As of March 20, 1997, these 
operations will be conducted under the requirements of part 121, in 
accordance with the final rule published on December 20, 1995.

Notice of Proposed Rulemaking

    On February 3, 1997, the FAA published an NPRM (62 FR 5076; Notice 
No. 97-1) proposing changes to correct errors, make terminology 
consistent, clarify the intent of part 119 and the commuter rule 
published on December 20, 1995, as well as make other minor changes not 
directly related to the commuter rule. These proposed changes are 
considered important because, as a result of the implementation of part 
119 and the completion of the transition process for commuter 
operations affected by the final rule, a number of questions of 
interpretation have been raised and errors in previous final rules have 
been identified. In addition, a new Special Federal Aviation Regulation 
(SFAR) is needed to address three problems that relate to compliance 
with requirements for communications facilities and for aircraft 
dispatchers by operators in Alaska and other areas.

Public Comment

    The FAA requested comments, within 30 days of publication of Notice 
No. 97-1, on a number of proposals contained in the NPRM. Interested 
persons were invited to participate in this rulemaking action by 
submitting written data, views, or arguments. All comments received 
were considered before issuing this final rule.
    The FAA received 19 comments in response to Notice No. 97-1. 
Comments were received from operators affected by the proposed rule, 
aircraft dispatchers, industry associations, and a manufacturer of 
communications system. Many commenters stressed the importance of 
having the final rule issued before March 20, 1997, when the majority 
of the commuter rule provisions go into effect. Other specific comments 
are summarized in the following section-by-section discussion of the 
final rule, which includes the FAA's responses to these comments.

Explanation of Amendments

    A number of changes are necessary in parts 21, 25, 91, 119, 121, 
125, and 135 to correct typographical errors, to make minor editorial 
changes that help clarify the intent of the rules, or to make editorial 
changes that make related rules consistent with each other. These types 
of changes are not individually explained. However, a number of changes 
requires some explanation, which follows:
    1. The proposal revised the definitions of ``on-demand operation,'' 
``scheduled operation,'' and ``supplemental operation'' in Sec. 119.3 
to make it clear that public charter operations conducted under 14 CFR 
part 380 are not considered scheduled operations.
    No comments were received on the proposed definitions and the 
changes to Sec. 119.3 are adopted as proposed.
    2. The proposal amended Sec. 119.5 to add new paragraph (k), which 
incorporated former Sec. 135.31 into part 119. As proposed, this 
section prohibited advertising or otherwise offering to perform any 
operation unauthorized by the FAA, and it was applicable to any person, 
including certificate holders operating under part 121, as well as 
those operating under part 135.
    The proposal also added Sec. 119.5(1) which stated that, for safety 
purposes, people who operate aircraft under parts 121 and 135 must 
comply with the provisions in a certificate holder's

[[Page 13249]]

operations specifications. This paragraph was proposed to prevent an 
employee of a certificate holder (with or without other certificate 
holder's knowledge) from violating the provisions of the certificate 
holder's operations specifications. For example, if a certificate 
holder is only authorized to carry cargo, a flight crewmember would not 
be allowed to bring along a friend as a passenger on the commercial 
flight.
    No comments were received on these proposals and the changes to 
Sec. 119.5 are adopted as proposed.
    3. The proposal amended Sec. 119.9 to allow displaying the air 
carrier or operating certificate number on an aircraft instead of the 
name of the certificate holder. As described in the NPRM, a petition by 
the National Air Transportation Association (NATA) and supporting 
comments requested that, for security and financial reasons, operators 
be allowed to display the air carrier or operating certificate number 
in lieu of the name of the certificate holder. In the NPRM, the FAA 
agreed that display of an air carrier or operating certificate number 
would meet the intent of this requirement, which is to provide a ready 
means of identifying a responsible certificate holder when an aircraft 
is parked and the FAA has reason to identify or contact the certificate 
holder. Therefore, the FAA proposed to amend Sec. 119.9(b)(4) as 
requested by NATA.
    The proposal also deleted the provision allowing the Assistant 
Administrator for Civil Aviation Security to grant deviations from the 
requirements of this section because the FAA no longer believed that 
these deviations were necessary.
    NATA, Helicopter Association International (HAI), and individual 
operators affected by the proposed change to Sec. 119.9(b) comment in 
support of allowing part 135 operators to display their air carrier or 
operating certificate number on an aircraft instead of the name of the 
certificate holder. Commenters emphasize that, if the FAA adopts the 
proposed amendment, it is imperative to make the amendment effective 
before March 20, 1997, so that they will not need to apply the 
certificate holder's name temporarily on the aircraft, and then remove 
it when the amendment takes effect later. One operator comments that 
even having the operating certificate number on the aircraft creates a 
security risk for some customers.
    As discussed above, the FAA must be able to readily identify the 
responsible certificate holder conducting an operation, and having the 
air carrier or operating certificate number on an aircraft will provide 
the necessary identification. Therefore, the changes to Sec. 119.9 are 
adopted as proposed and are effective as of the date of issuance of 
this final rule.
    4. The proposal amended Sec. 119.21(a)(1) to allow domestic 
operations conducted from the Pribilof Islands and the Shumagin Islands 
to request permission to comply with the dispatching requirements of 
subpart U of part 121 applicable to flag operations. The NPRM also 
stated that, in the final rule, the FAA may include other Alaskan 
island locations in this provision, if requested to do so by commenters 
and if adding the names of those islands is consistent with safety 
considerations.
    No comments were received on the proposal and the changes to 
Sec. 119.21 are adopted as proposed.
    5. The proposal amended Sec. 119.35 to clarify that the additional 
financial and contract reporting requirements of this section apply 
only to commercial operators. The proposal split Sec. 119.35 into two 
sections: Proposed Sec. 119.35 contained just the certificate 
application procedures that apply to all applicants, and new 
Sec. 119.36 contained the additional requirements for commercial 
operators.
    In the NPRM, the FAA proposed that Sec. 119.36 distinguish between 
requirements for all commercial operators and those applicable only to 
commercial operators under part 121. In addition, the FAA proposed to 
delete the financial reporting requirements of Sec. 135.64(b), but to 
retain the contract retention requirements in Sec. 135.64(a).
    No comments were received on the proposal and Secs. 119.35 and 
119.36 are adopted as proposed.
    6. The proposal revised Sec. 119.67 (c) and (d) to amend the 
qualification requirements applicable to Directors of Maintenance and 
Chief Inspectors under part 121. The proposal also revised 
Sec. 119.71(e) to amend the qualification and experience requirements 
applicable to the Director of Maintenance under part 135.
    Both proposals established requirements for a person becoming the 
Director of Maintenance or Chief Inspector for the first time. These 
proposals were designed to ensure that persons holding these required 
management positions have the measure of experience and the 
demonstrated capability of effectively managing these programs.
    The FAA proposed that, under Secs. 119.67(c)(1) and 119.71(e)(1), 
the Director of Maintenance must have held the airframe and powerplant 
ratings for 3 years.
    The proposal also amended Sec. 119.67(c)(2) by changing the 
existing 1 year of maintenance experience in a supervisory capacity in 
maintaining the category and class of airplane used by the certificate 
holder, to 3 years of supervisory experience within the last 6 years in 
a position that exercised operational control over maintenance program 
functions.
    In addition, the proposal amended Sec. 119.67(c)(4)(i)(B) by 
replacing the word ``repairing'' with the word ``maintaining'', as the 
latter is consistent with the definition of maintenance as defined in 
14 CFR 1.1. In addition, the word ``maintaining'' reflects the broader 
experience level more appropriate to the Director position.
    For the Chief Inspector position, the proposal changed 
Sec. 119.67(d)(2) to require 3 years of supervisory or managerial 
experience within the last 6 years.
    The proposal also revised Sec. 119.67(e) to clarify that 
certificate holders may request a deviation from the experience 
requirements of the section, but not from the airman certificate 
requirements of the section. Therefore, a certificate holder would not 
be allowed to employ a person who does not hold the required airman 
certificates (e.g., ATP certificate, commercial pilot certificate, 
mechanic certificate).
    Proposed Sec. 119.71 contained the management qualification 
requirements that formerly appeared in 0135.39. Section 119.71 (b) and 
(d) required that the Director of Operations and the Chief Pilot, 
respectively, must hold at least a commercial pilot certificate with an 
instrument rating. However, under former Sec. 135.39 the instrument 
rating was required only if any pilot in command for that certificate 
holder was required to have an instrument rating. For operations such 
as a VFR only helicopter operation, the pilot in command is not 
required to hold an instrument rating. Therefore the FAA proposed that 
Sec. 119.71 (b) and (d) be revised to match the intent of former 
Sec. 135.39.
    HAI comments in support of the proposed amendment of Sec. 119.71 
(b) and (d) on behalf its membership, which includes a substantial 
number of VFF-only helicopter operations. HAI states that without the 
amendment to Sec. 119.71 (b) and (d) many operators would be forced to 
suspend operations until personnel that meet the current requirements 
can be identified and hired, and that there may not be enough such 
personnel available. HAI believes that this burden would be onerous and 
inappropriate in view of the fact that the

[[Page 13250]]

operators in question do not conduct instrument operations.
    The FAA agrees with HAI's comments and the amendments to 
Sec. 119.71 (b) and (d) are adopted as proposed. No comments were 
received on the proposal to revise Secs. 119.67(e) and 119.71(f) and 
those amendments are adopted as proposed. The FAA has reviewed the 
proposed changes to the experience requirements for Director of 
Maintenance and Chief Inspector in light of issues raising during 
implementation of the commuter rule and the determined that further 
study of these proposal is necessary. Therefore the FAA withdraws the 
proposal amendments to Secs. 119.67(c) and (d) and 119.71(e), for 
consideration in a future rulemaking.
    7. In the NPRM, the FAA proposed that anew Special Federal Aviation 
Regulation (SFAR) be added to part 121 to address two problems that 
relate to compliance with Sec. 121.99 and a third problem that relates 
to compliance with 0121.395. These are outlined below.
    (1) The first problem involves certain communications difficulties 
in Alaska and other areas affecting certificate holders who are 
required by Sec. 121.99 to ``show that a two-way air/ground 
communication system is available at all points that will ensure 
reliable and rapid communications under normal operating conditions 
over the entire route (either direct or via approved point to point 
circuits) between each airplane and the appropriate dispatch office and 
between each airplane and the appropriate air traffic control unit.''
    The NPRM pointed out that, in certain areas, the lack of 
infrastructure or appropriate technology has prevented certificate 
holders from establishing such systems. For other certificate holder 
the nature of their operations (e.g., flying at low altitudes or in 
mountainous terrain) has prevented them from using current 
communication systems that may be reliable only at higher altitudes.
    If a certificate holder shows to the Administrator that 
communications gaps exist due to such reasons as lack of 
infrastructure, ATC operating restrictions, the terrain, operating 
altitude, or feasibility of a certain kind of communications system, 
the certificate holder would be allowed to continue to operate over 
that route if the certificate holder establishes alternative procedures 
for prompt re-establishment of communication, for establishment that 
the airplane arrived at its destination, and for flight locating 
purposes. Under the SFAR, relief would only be granted after the 
certificate holder shows that it would meet the requirements to the 
maximum extent possible. In granting such approval, the Administrator 
would consider certain factors that are listed in the SFAR.
    Under the proposed SFAR, the certificate holder would obtain the 
approval of the Administrator in its operations specifications. The 
requests will be processed through the certificate-holding district 
office, with concurrence by the FAA's Air Transportation Division (AFS-
200). This type of alternative compliance approval would only be 
available for scheduled operations with airplanes having a passenger-
seat configuration of 30 seats of fewer, excluding each crewmember 
seat, and a physical capacity of 7,500 pounds of less under part 121 of 
this chapter.
    (2) The second Sec. 121.99-related problem involves certificate 
holder who have conducted or who might in the future conduct scheduled 
intrastate operations in Alaska. Under the pre-commuter rule amendments 
these operations under the rules applicable to flag air carriers and 
thus, under the last sentence of Sec. 121.99, were not prohibited from 
using a communications system operated by the United States. For 
certificate holders operating intrastate in Alaska, whether certificate 
before or after January 19, 1996, it was considered impractical at that 
time to mandate that the required communications systems be independent 
of any system operated by the United States.
    Therefore even though these certificate holder would otherwise have 
been required to comply with the operating rules for domestic 
operations, under the proposed SFAR they would be allowed to use 
systems operated by the United States, when there is no practical 
alternative, for the 4-year effective period of the SFAR. The FAA 
further propose to amend Sec. 121.99 to require that, concurrent with 
the expiration of the SFAR, all flag operations in Alaska, not just 
those affected by the commuter rule change mentioned above, have 
communications systems that re independent of any system operated by 
the United States.
    (3) The third issue addressed by the proposed SFAR relates to the 
use of aircraft dispatchers by former computer operations in Alaska who 
are required by the computer rule to have a part 121 dispatch system. 
It is long-standing FAA policy that each certificate holder subject to 
Sec. 121.395 have aircraft dispatchers that are employed exclusively by 
that certificate holder. However, small operations located in remote 
areas have found it hard to attract qualified, certificated aircraft 
dispatchers to work and live in those areas.
    Therefore the FAA proposed to allow certificate holders conducting 
scheduled operations in Alaska with airplanes having a passenger-seat 
configuration of 30 seats or fewer, excluding each crewmember seat, and 
a payload capacity of 7,500 pounds or less under part 121 of this 
chapter, to share aircraft dispatchers if they are authorized to do so 
by the Administrator in their operations specifications. The requests 
will be processed through the certificate-holding district office, with 
concurrence by the FAA's Air Transportation Division (AFS-200). Before 
granting such an authorization, the Administrator would consider 
certain factors that are listed in the SFAR.
    The FAA proposed that the SFAR would expire 4 years after it is 
issued because the FAA expects that adequate communications facilities 
would become available in all parts of Alaska and other areas within 
that time.
    Several commenters address the provisions in the proposed SFAR. The 
Air Transport Association (ATA) sees no reason why the SFAR should be 
so restrictive and limited to commuter operations, because from a 
safety standpoint, larger aircraft have greater fuel capacity and 
alternate airport capability, and generally have a larger safety margin 
built in than small commuter aircraft. NATA believes that the proposed 
SFAR does not adequately address the special nature of flight 
operations in rural Alaskan areas, because the inherent problem is that 
Alaska simply does not have the infrastructure to guarantee 
communications in remote areas. Also NATA believes that operations in 
designated remote areas, where flights are mainly VFR, flight plans 
frequently change, and airports are often unattended, should not be 
subjected to the same stringent dispatching requirements applied to 
other part 121 operations. An aeronautical communications company 
disagrees with FAA's statements on lack of infrastructure and 
availability of appropriate technology. This commenter believes that 
there is a wide variety of choices available to meet the communication 
needs for positive operational control and that operators in remote 
geographical areas may need to make a combination of choices to allow 
them to meet the requirements of the current rules.
    The Airline Dispatchers Federal (ADF) and an individual aircraft 
dispatcher address the relationship between the communications system

[[Page 13251]]

required by Sec. 121.99 and the role of the aircraft dispatcher in 
providing information that may affect the safety of the flight to the 
pilot in command. ADF believes that adequate air ground communication 
technology is available for Alaskan operations, but that if there is a 
lack of weather reporting along their routes, air carriers can provide 
station and other personnel with telephone, dial access radio, HF, VHF, 
or SatComm communications and provide them with the training to provide 
accurate weather and aerodrome information. ADF further suggests that 
Alaskan air carriers cooperate to build their own radio network to 
cover their routes or that the State of Alaska may want to help finance 
any additional infrastructure required for scheduled air service in 
Alaska.
    ADF suggests that Alaskan pilots, operating under a ``bush'' 
mentality, have knowingly flown in IMC or VFR flights in response to 
operational pressures, and that when adequate communication systems are 
in place and aircraft dispatchers are able to obtain accurate 
information on weather and other local conditions, the pilots will no 
longer be able to decide on their own whether or not to initiate or 
continue a particular flight, because, if the information does not show 
the operation can be conducted safely, the dispatcher may not authorize 
the flight.
    ADF and the aircraft dispatcher object to FAA's proposal to allow 
Alaskan air carriers to share aircraft dispatchers under certain 
conditions. The commenters fear that a dispatcher working under 
contract or exercising operational control on a competitor's flight may 
have his or her actions second-guessed by the management of the other 
airline. ADF comments that a shared dispatcher may be kept at a 
distance from the operations and only told what company employees want 
the dispatcher to know.
    ADF and the dispatcher believes that part 135 operators who have 
faced the challenge of complying with the communications and 
dispatching rules of part 121 should be commended and not effectively 
penalized economically by competitors who take advantage of the 
provisions in the proposed SFAR.
    After careful consideration of these comments, the FAA has decided 
to issue the SFAR as proposed. The FAA disagree with ATA's assertion 
that the SFAR should also apply to air carriers operating larger 
planes, but instead agrees with ADF that the rules in part 121 
requiring adequate communications system and a full aircraft 
dispatching system for scheduled operations have contributed for many 
years to a high level of safety that should be applied as well to 
scheduled operations affected by the commuter rule. The purpose of the 
SFAR is to allow the FAA, the affected commuter operators, and the 
communications equipment industry to work together to bring every 
commuter operator into compliance with part 121 as soon as possible. 
However, the FAA's experience in implementing the commuter rule has 
been that there are gaps in certain remote areas that could not be 
remedied before the March 20, 1997, deadline for implementing the 
commuter rule. This is the exception rather than the rule. The limited 
number of commuter operators who have not been able to close the 
communications gaps along all of their routes have been evaluating 
systems and trying to develop plans for complying with Sec. 121.99. The 
SFAR will allow extra time for the installation of ground-based 
systems, the development of satellite systems, or the development and 
approval of technology appropriate to the needs of remote operators.
    The FAA agrees with commenters that the role of aircraft 
dispatchers is critical to ensuring the safety of flight, particularly 
in areas such as Alaska that are subject to difficult and changing 
weather conditions. That is why the FAA is not excepting Alaskan 
carriers from the dispatcher requirement. However, under section 1205 
of the Federal Aviation Reauthorization Act of 1996 (Pub. L. 104-264), 
when modifying regulations affecting intrastate aviation in Alaska, the 
FAA Administrator must consider the extent to which Alaska is not 
served by transportation modes other than aviation, and must establish 
such regulatory distinctions as the Administrator considers 
appropriate. Also, in implementing the commuter rule, the FAA has found 
that in the unique environment of Alaska, it is difficult to recruit 
and retain qualified certificated aircraft dispatchers. The commenters' 
fears about the potential for contract dispatchers or dispatchers 
exercising operational control over competitors' flights are 
unwarranted because the SFAR allows for the sharing of dispatchers by 2 
companies would be authorized to share a dispatcher only when the 
companies can show the FAA that they have joint plans for complying 
with the dispatcher training and qualification rules and that the 
number of flights for which the dispatcher would be responsible would 
not be beyond the capacity of a single dispatcher.
    The FAA does not think that authority to operate under the SFAR 
would provide an economic advantage to a commuter operator because the 
authority will be granted in a very limited number of cases and only 
when the operator has shown to the FAA that it is proceeding on a plan 
and has a schedule for coming into full compliance with the part 121 
rules within 4 years.
    8. The proposal amended Sec. 121.99 to allow for ``other means of 
communication approved by the Administrator'' as an alternative to the 
tow-way radio communication system required by that section. This would 
allow certificate holders to use other types of technology, such as 
datalink or telephonic communication systems, to comply with this 
section.
    No comments were received on the proposal and the changes to 
Sec. 121.99 are adopted as proposed.
    9. The proposal amended the manual requirements in Secs. 121.137, 
121.139, 125.71, 135.21, and 135.427 to make these sections compatible 
with Sec. 121.133. (Section 121.133 had been revised in the commuter 
rule to allow a certificate holder to prepare its maintenance manual in 
any form acceptable to the Administrator.) Therefore, the FAA proposed 
in the NPRM to include the language ``any form acceptable to the 
Administrator'' in the sections above.
    The proposal also amended these sections to clarify that, 
regardless of the form of the maintenance manual, it must be 
retrievable in the English language. Certificate holders who purchase 
equipment from foreign manufacturers or previous foreign owners must 
ensure that the maintenance instructions to be followed by their 
employees and reviewed by the FAA are in English.
    No comments were received on the proposal and the changes to the 
manual requirements are adopted as proposed.
    10. The proposal revised Sec. 121.305(j) to clarify the 
requirements for third attitude indicators for turbopropeller powered 
airplanes having a passenger seat configuration of 30 seats or fewer 
and turbopropeller powered airplanes with more than 30 seats. The 
latter have been required to have third attitude indicators since 
October 1994.
    No comments were received on the proposal and the changes to 
Sec. 121.305 are adopted as proposed.
    11. The FAA proposed to allow 2 years from the date of the final 
rule for the affected operators to install emergency exit locating 
signs that comply with Sec. 121.310(b)(1). The additional 2 years for 
compliance would be granted to both in-service 10-19 seat airplanes and 
newly manufactured 10-19 seat airplanes. Paragraph (b)(1) of 
Sec. 121.310 requires that the identity and

[[Page 13252]]

location of each passenger emergency exit must be marked so that the 
exit is recognizable from a distance equal to the width of the cabin 
and that the location of the exit must be indicated by a sign visible 
to occupants approaching along the main passenger aisle. Paragraph 
(b)(1)(i) requires that one of the locating signs must be on the 
ceiling of the cabin. Because of limited headrooms, most of the 10-19 
seat airplanes used by operators subject to the commuter rule do not 
have locating signs mounted flush to the cabin sidewalls. For these 10-
19 seat airplanes with limited headroom, the simplest means of 
complying may be to replace the two-dimensional signs with beveled or 
three-dimensional signs that can be read easily at the cabin extremes; 
that type of sign would function to both identify and locate the 
corresponding exit.
    The FAA also proposed adding a paragraph (b)(2)(iii) to 
Sec. 121.310; this paragraph identifies the certification requirements 
for passenger emergency exit marking and locating signs. The proposal 
addressed the 10-19 passenger seat nontransport category airplanes. 
Similar to paragraph (b)(2)(i), it would mandate that the sign 
luminescence be 160 microlamberts at the time of manufacture; it would 
also prohibit the use of a sign in service if the luminescence 
decreases to below 100 microlamberts. Proposed paragraph (b)(2)(iii) 
should provide adequate levels of luminescence; the signs would have 
the same brightness as signs in some transport category airplanes 
currently manufactured and currently operated under part 121, which 
have no longer distances between exits than the 10-19 passenger seat 
airplanes.
    No comments were received on the proposals and the changes to 
Sec. 121.310 are adopted as proposed.
    12. The proposal amended Sec. 121.133(c) to correct an omission 
concerning the use of quick-donning oxygen masks at flight levels above 
250 as a substitute for having one pilot at the controls wear and use 
an oxygen mask at all times. For pressurized turbine engine powered 
airplanes, Sec. 121.333(c) has allowed the availability of a quick-
donning mask to be a substitute for wearing and using a mask at all 
times at or below flight level 410. However, under Sec. 135.89(b)(3) at 
least one pilot at the controls of a pressurized airplane is required 
at altitudes above flight level 350 to wear and use an oxygen mask at 
all times.
    For those 10-30 passenger airplanes that will be operating under 
part 121 as a result of the commuter rule amendments, the proposal 
stated that flight level 350 rather than flight level 410 would 
continue to be the appropriate altitude at which at least one pilot at 
the controls would be required to wear an oxygen mask at all times.
    Since the commuter rule was not intended to relax this requirement, 
the FAA proposed to amend Sec. 121.333(c) to incorporate the 
requirements of Sec. 135.89(b)(3) for airplanes with less than 31 
seats, excluding any required crewmember seat, and a payload capacity 
of 7,500 pounds or less.
    No comments were received on the proposal and the changes to 
Sec. 121.333 are adopted as proposed.
    13. The proposal amended Sec. 121.437 to eliminate a redundancy 
that was created by an earlier corrective amendment and by adding a new 
sentence that would have the effect of codifying an existing exemption 
that had been in effect since 1980.
    The FAA granted the ATA an exemption from Sec. 121.437 (Exemption 
No. 2965), allowing a pilot employed by a part 121 certificate holder 
as a flight crewmember to be issued additional category and class 
ratings to the pilot's certificate if the pilot had satisfactorily 
completed the appropriate training requirements of subpart N and the 
proficiency check requirements of Sec. 121.441 by presenting proof of 
this to the Administrator. This exemption was extended 9 times and is 
due to expire on July 31, 1997.
    Over the 16 years that the exemption has been in effect, there has 
been no known derogation of safety. Therefore, since the FAA has not 
had the resources to conduct each proficiency check required by the 
rule, the FAA proposed to codify Exemption 2965 into Sec. 121.437.
    ATA supports the proposed changes to Sec. 121.437 and adds that 
codifying the exemption will also reduce the administrative burden on 
both the airlines and the FAA. The final rule is adopted as proposed.

Tables 1-4 From the Commuter Rule

    In the preamble of the NPRM for this final rule, the FAA corrected 
and republished 3 tables that were a part of the original commuter rule 
preamble: Table 2, Comparable Sections in Parts 121 and 135, and Tables 
3 and 4, the Derivation and Distribution Tables for Part 119. There 
have been no changes to these informational tables since the NPRM was 
published (February 3, 1997; 62 FR 5076). The FAA is in the process of 
updating Table 1, Summary of New Equipment and Performance 
Modifications for Affected Commuters, originally published in the 
commuter rule, to present the delayed compliance dates for the 
equipment and performance modifications required by the commuter rule 
and subsequent amendments.
    Any person may obtain a copy of Tables 1-4 by mail by submitting a 
request to: Linda Williams, Federal Aviation Administration, Office of 
Rulemaking, 800 Independence Avenue, SW., Washington, DC 20691, or by 
calling (202) 267-9685.

Federalism Implications

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

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507(d)), there are no new requirements for information collection 
associated with this rule.

Good Cause Justification for Immediate Adoption

    This amendment is needed to make editorial corrections and other 
changes to the commuter rule that must be in place before the commuter 
rule takes final effect on March 20, 1997. In view of this need to 
expedite these changes, and because the amendments would impose no 
additional burdens on the public, I find that the amendment should be 
made effective in less than 30 days after publication. Therefore, this 
final rule is effective as of the date of issuance.

Conclusion

    The FAA has determined that this final rule imposes no additional 
burden on any person. Accordingly, it has been determined that the 
action: (1) Is not a significant rule under Executive Order 12866; and 
(2) is not a significant rule under Department of Transportation 
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979). No 
cost impact is expected to result and a full regulatory evaluation is 
not required. In addition, the FAA certifies that the final rule will 
not have a significant cost impact, positive or negative, on a 
substantial number of small entities under the criteria of the 
Regulatory Flexibility Act.

[[Page 13253]]

List of Subjects

14 CFR Part 21

    Aircraft, Aviation safety, Exports, Imports, Reporting and 
recordkeeping requirements.

14 CFR Part 25

    Air transportation, Aircraft, Aviation safety, Safety, Gusts.

14 CFR Part 91

    Agriculture, Air traffic control, Aircraft, Airmen, Airports, 
Aviation safety, Freight, Noise control, Political candidates, 
Reporting and recordkeeping requirements.

14 CFR Part 119

    Administrative practice and procedures, Air carriers, Air taxis, 
Aircraft, Aviation safety, Charter flights, Commuter operations, 
Reporting and recordkeeping requirements.

14 CFR Part 121

    Air carriers, Aircraft, Airmen, Aviation safety, Charter flights, 
Reporting and recordkeeping requirements.

14 CFR Part 125

    Aircraft, Airmen, Aviation safety, Reporting and recordkeeping 
requirements.

14 CFR Part 135

    Aircraft, Airplanes, Airworthiness, air transportation.

Adoption of Amendments

    Accordingly, the Federal Aviation Administration (FAA) amends 14 
CFR parts 21, 25, 91, 119, 121, 125, and 135 as follows:

PART 21--CERTIFICATION PROCEDURES FOR PRODUCTS AND PARTS

    1. the authority citation for part 21 continues to read as follows:

    Authority: 42 U.S.C. 7572; 49 U.S.C. 106(g), 40105, 40113, 
44701-44702, 44707, 44709, 44711, 44713, 44715, 45303.


Sec. 21.431  [Amended]

    2. Section 21.431 is amended in paragraph (b) by removing the 
parenthetical ``except air taxi operators)''.

PART 25--AIRWORTHINESS STANDARDS: TRANSPORT CATEGORY AIRPLANES

    3. The authority citation for part 25 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701, 44702 and 44704.


Sec. 25.1303  [Amended]

    4. Section 25.1303(b)(4) is amended by removing the reference to 
``Sec. 121.305(j)'' and adding in place thereof a reference to 
``Sec. 121.305(k).''

PART 91--GENERAL OPERATING AND FLIGHT RULES

    5. The authority citation for part 91 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40103, 40113, 40120, 44101, 44111, 
44701, 44709, 44711, 44712, 44715, 44716, 44717, 44722, 46306, 
46315, 46316, 46502, 46504, 46506-46507, 47122, 47508, 47528-47531.

    6. Section 91.23 is amended by revising paragraph (b)(1)(ii) to 
read as follows:


Sec. 91.23  Truth-in-leasing clause requirement in leases and 
conditional sales contracts.

* * * * *
    (b) * * *
    (1) * * *
    (ii) The party furnishing the aircraft is a foreign air carrier or 
a person operating under part 121, 125, and 141 of this chapter, or a 
person operating under part 135 of this chapter having authority to 
engage in on-demand operations with large aircraft.
* * * * *
    7. Section 91.323 is amended by revising paragraph (a)(1) to read 
as follows:


Sec. 91.323  Increased maximum certificated weights for certain 
airplanes operated in Alaska.

    (a) * * *
    (1) A certificate holder conducting operations under part 121 or 
part 135 of this chapter; or
* * * * *

PART 119--CERTIFICATION: AIR CARRIERS AND COMMERCIAL OPERATORS

    8. The authority citation for part 119 continues to read as 
follows:

    Authority: 49 U.S.C. 106(g), 1153, 40101, 40102, 40103, 44105, 
44106, 44111, 44701-44717, 44722, 44901, 44903, 44904, 44906, 44912, 
44914, 44936, 44938, 46013, 46105.

    9. Section 119.3 is amended by revising paragraph (1) introductory 
text of the definition for ``on-demand operation,'' by revising the 
definition for ``scheduled operation,'' and by revising paragraph (2) 
of the definition of ``supplemental operation'' to read as follows:


Sec. 119.3  Definitions.

* * * * *
    On-demand operation * * *
    (1) Passenger-carrying operations conducted as a public charter 
under part 380 of this title or any operations in which the departure 
time, departure location, and arrival location are specifically 
negotiated with the customer or the customer's representative that are 
any of the following types of operations:
* * * * *
    Scheduled operation means any common carriage passenger-carrying 
operation for compensation or hire conducted by an air carrier or 
commercial operator for which the certificate holder or its 
representative offers in advance the departure location, departure 
time, and arrival location. It does not include any passenger-carrying 
operation that is conducted as a public charter operation under part 
380 of this title.
    Supplemental operation * * *
    (2) Types of operation:
    (i) Operations for which the departure time, departure location, 
and arrival location are specifically negotiated with the customer or 
the customer's representative;
    (ii) All-cargo operations; or
    (iii) Passenger-carrying public charter operations conducted under 
part 380 of this title.
* * * * *
    10. Section 119.5 is amended by adding paragraph (k) and (l) to 
read as follows:


Sec. 119.5  Certifications, authorizations, and prohibitions.

* * * * *
    (k) No person may advertise or otherwise offer to perform an 
operation subject to this part unless that person is authorized by the 
Federal Aviation Administration to conduct that operation.
    (l) No person may operate an aircraft under this part, part 121 of 
this chapter, or part 135 or this chapter in violation of an air 
carrier operating certificate, operating certificate, or appropriate 
operations specifications issued under this part.
    11. Section 199.9(b) is revised to read as follows:


Sec. 119.9  Use of business names.

* * * * *
    (b) No person may operate an aircraft under part 121 or part 135 of 
this chapter unless the name of the certificate holder who is operating 
the aircraft, or the air carrier or operating certificate number of the 
certificate holder who is operating the aircraft, is legibly displayed 
on the aircraft and is clearly visible and readable from the outside of 
the aircraft to a person

[[Page 13254]]

standing on the ground at any time except during flight time. The means 
of displaying the name on the aircraft and its readability must be 
acceptable to the Administrator.
    12. Section 119.21 is amended by revising paragraph (a)(1) to read 
as follows:


Sec. 119.21  Commercial operators engaged in intrastate common carriage 
and direct air carriers.

    (a) * * *
    (1) Domestic operations in accordance with the applicable 
requirements of part 121 of this chapter, and shall be issued 
operations specifications for those operations in accordance with those 
requirements. However, based on a showing of safety in air commerce, 
the Administrator may permit persons who conduct domestic operations 
between any point located within any of the following Alaskan islands 
and any point in the State of Alaska to comply with the requirements 
applicable to flag operations contained in subpart U of part 121 of 
this chapter:
    (i) The Aleutian Islands.
    (ii) The Pribilof Islands.
    (iii) The Shumagin Islands.
* * * * *
    13. Section 119.35 is revised to read as follows:


Sec. 119.35  Certificate application requirements for all operators.

    (a) A person applying to the Administrator for an Air Carrier 
Certificate or Operating Certificate under this part (applicant) must 
submit an applicaiton--
    (1) In a form and manner prescribed by the Administrator; and
    (2) Containing any information the Administrator requires the 
applicant to submit.
    (b) Each applicant must submit the application to the Administrator 
at least 90 days before the date of intended operation.
    14. Section 119.36 is added to read as follows:


Sec. 119.36  Additional certificate application requirements for 
commercial operators.

    (a) Each applicant for the original issue of an operating 
certificate for the purpose of conducting intrastate common carriage 
operations under part 121 or part 135 of this chapter must submit an 
application in a form and manner prescribed by the Administrator to the 
Flight Standards District Office in whose area the applicant proposes 
to establish or has established his or her principal base of 
operations.
    (b) Each application submitted under paragraph (a) of this section 
must contain a signed statement showing the following:
    (1) For corporate applicants:
    (i) The name and address of each stockholder who owns 5 percent or 
more of the total voting stock of the corporation, and if that 
stockholder is not the sole beneficial owner of the stock, the name and 
address of each beneficial owner. An individual is considered to own 
the stock owned, directly or indirectly, by or for his or her spouse, 
children, grandchildren, or parents.
    (ii) The name and address of each director and each officer and 
each person employed or who will be employed in a management position 
described in Secs. 119.65 and 119.69, as applicable.
    (iii) The name and address of each person directly or indirectly 
controlling or controlled by the applicant and each person under direct 
or indirect control with the applicant.
    (2) For non-corporate applicants:
    (i) The name and address of each person having a financial interest 
therein and the nature and extent of that interest.
    (ii) The name and address of each person employed or who will be 
employed in a management position described in Secs. 119.65 and 119.69, 
as applicable.
    (c) In addition, each applicant for the original issue of an 
operating certificate under paragraph (a) of this section must submit 
with the application a signed statement showing--
    (1) The nature and scope of its intended operation, including the 
name and address of each person, if any, with whom the applicant has a 
contract to provide series as a commercial operator and the scope, 
nature, date, and duration of each of those contracts; and
    (2) For applicants intending to conduct operations under part 121 
of this chapter, the financial information listed in paragraph (e) of 
this section.
    (d) Each applicant for, or holder of, a certificate issued under 
paragraph (a) of this section, shall notify the Administrator within 10 
days after--
    (1) A change in any of the persons, or the names and addresses of 
any of the persons, submitted to the Administrator under paragraph 
(b)(1) or (b)(2) of this section; or
    (2) For applicants intending to conduct operators under part 121 of 
this chapter, a change in the financial information submitted to the 
Administrator under paragraph (e) of this section that occurs while the 
application for the issue is pending before the FAA and that would make 
the applicant's financial situation substantially less favorable than 
originally reported.
    (e) Each applicant for the original issue of an operating 
certificate under paragraph (a) of this section who intends to conduct 
operations under part 121 of this chapter must submit the following 
financial information:
    (1) A balance sheet that shows assets, liabilities, and net worth, 
as of a date not more than 60 days before the date of application.
    (2) An itemization of liabilities more than 60 days past due on the 
balance sheet date, if any, showing each creditor's name and address, a 
description of the liability, and the amount and due date of the 
liability.
    (3) An itemization of claims in litigation, if any, against the 
applicant as of the date of application showing each claimant's name 
and address and a description and the amount of the claim.
    (4) A detailed projection of the proposed operation covering 6 
complete months after the month in which the certificate is expected to 
be issued including--
    (i) Estimated amount and source of both operating and nonoperating 
revenue, including identification of its existing and anticipated 
income producing contracts and estimated revenue per mile or hour of 
operation by aircraft type;
    (ii) Estimated amount of operating and nonoperating expenses by 
expense objective classification; and
    (iii) Estimated net profit or loss for the period.
    (5) An estimate of the cash that will be needed for the proposed 
operations during the first 6 months after the month in which the 
certificate is expected to be issued, including--
    (i) Acquisition of property and equipment (explain);
    (ii) Retirement of debt (explain);
    (iii) Additional working capital (explain);
    (iv) Operating losses other than depreciation and amortization 
(explain); and
    (v) Other (explain).
    (6) An estimate of the cash that will be available during the first 
6 months after the month in which the certificate is expected to be 
issued, from--
    (i) Sale of property or flight equipment (explain);
    (ii) New debt (explain);
    (iii) New equity (explain);
    (iv) Working capital reduction (explain);
    (v) Operations (profits) (explain);
    (vi) Depreciation and amortization (explain); and
    (vii) Other (explain).

[[Page 13255]]

    (7) A schedule of insurance coverage in effect on the balance sheet 
date showing insurance companies; policy numbers; types, amounts, and 
period of coverage; and special conditions, exclusions, and 
limitations.
    (8) Any other financial information that the Administrator requires 
to enable him or her to determine that the applicant has sufficient 
financial resources to conduct his or her operations with the degree of 
safety required in the public interest.
    (f) Each financial statement containing financial information 
required by paragraph (e) of this section must be based on accounts 
prepared and maintained on an accrual basis in accordance with 
generally accepted accounting principles applied on a consistent basis, 
and must contain the name and address of the applicant's public 
accounting firm, if any. Information submitted must be signed by an 
officer, owner, or partner of the applicant or certificate holder.
    15. Section 119.67 is amended by revising paragraph (e) to read as 
follows:


Sec. 119.67   Management personnel: Qualifications for operations 
conducted under part 121 of this chapter.

* * * * *
    (e) A certificate holder may request a deviation to employ a person 
who does not meet the appropriate airman experience, managerial 
experience, or supervisory experience requirements of this section if 
the Manager of the Air Transportation Division, AFS-200, or the Manager 
of the Aircraft Maintenance Division, AFS-300, as appropriate, finds 
that the person has comparable experience, and can effectively perform 
the functions associated with the position in accordance with the 
requirements of this chapter and the procedures outlined in the 
certificate holder's manual. Grants of deviation under this paragraph 
may be granted after consideration of the size and scope of the 
operation and the qualifications of the intended personnel. The 
Administrator may, at any time, terminate any grant of deviation 
authority issued under this paragraph.
    16. Section 119.71 is amended by revising the introductory text of 
paragraph (b), the introductory text of paragraph (d), and the first 
sentence of paragraph (f) to read as follows:


Sec. 119.71  Management personnel: Qualifications for operations 
conducted under part 135 of this chapter.

* * * * *
    (b) To serve as Director of Operations under Sec. 119.69(a) for a 
certificate holder that only conducts operations for which the pilot in 
command is required to hold a commercial pilot certificate, a person 
must hold at least a commercial pilot certificate. If an instrument 
rating is required for any pilot in command for that certificate 
holder, the Director of Operations must also hold an instrument rating. 
In addition, the Director of Operations must either--
* * * * *
    (d) To serve as Chief Pilot under Sec. 119.69(a) for a certificate 
holder that only conducts operations for which the pilot in command is 
required to hold a commercial pilot certificate, a person must hold at 
least a commercial pilot certificate. If an instrument rating is 
required for any pilot in command for that certificate holder, the 
Chief Pilot must also hold an instrument rating. The Chief Pilot must 
be qualified to serve as pilot in command in at least one aircraft used 
in the certificate holder's operation. In addition, the Chief Pilot 
must:
* * * * *
    (f) A certificate holder may request a deviation to employ a person 
who does not meet the appropriate airmen experience requirements, 
managerial experience requirements, or supervisory experience 
requirements of this section if the Manager of the Air Transportation 
Division, AFS-200, or the Manager of the Aircraft Maintenance Division, 
AFS-300, as appropriate, find that the person has comparable 
experience, and can effectively perform the functions associated with 
the position in accordance with the requirements of this chapter and 
the procedures outlined in the certificate holder's manual. * * *

PART 121--OPERATING REQUIREMENTS; DOMESTIC, FLAG, AND SUPPLEMENTAL 
OPERATIONS

    17. The authority citation for part 121 continues to read as 
follows:

    Authority: 49 U.S.C. 106(g), 40113, 40119, 44101, 44701-44702, 
44705, 44709-44711, 44713, 44716-44717, 44722, 44901, 44903-44904, 
44912, 46105.

    18. SFAR 80 is added to read as follows:

SFAR ________--Alternative Communications and Dispatching Procedures

    1. Applicability. This Special Federal Aviation Regulation applies 
to each holder of an air carrier or operating certificate (hereafter, 
certificate holder) that meets one of the following eligibility 
requirements:
    a. The certificate holder conducts scheduled operations with 
airplanes having a passenger-seat configuration of 30 seats or fewer, 
excluding each crewmember seat, and a payload capacity of 7,500 pounds 
or less under part 121 of this chapter.
    b. The certificate holder conducts domestic operations in Alaska 
under part 121 of this chapter.
    2. Alternative requirements.
    a. If an operator described in paragraph 1.a. of this SFAR is 
conducting a flight with an airplane described in 1.a. and if 
communications cannot be maintained over the entire route (which would 
be contrary to the requirements of Sec. 121.99 of this chapter), such 
an operator may continue to operate over such a route subject to 
approval by the Administrator. In granting such approval the 
Administrator considers the following:
    i. The operator has an established dispatch communication system.
    ii. Gaps in communication are not over the entire route, but only 
over portions of the route.
    iii. When communication gaps occur, they occur due to one or more 
of the following:
    A. Lack of infrastructure.
    B. Geographical considerations.
    C. Assigned operating altitude.
    iv. Procedures are established for the prompt re-establishment of 
communications.
    v. The operator has presented a plan or schedule for coming into 
compliance with the requirements in Sec. 121.99 of this chapter.
    b. A certificate holder who conducts domestic operations in Alaska 
may, notwithstanding the requirements of Sec. 121.99 of this chapter, 
use a communication system operated by the United States for those 
operations.
    c. An operator described in paragraph 1.a. of this SFAR who 
conducts operations in Alaska may share the aircraft dispatcher 
required by Sec. 121.395 with another operator described in paragraph 
1.a. of this SFAR who conducts operations in Alaska if authorized to do 
so by the Administrator. Before granting such an authorization, the 
Administrator considers:
    i. The operators' joint plans for complying with the aircraft 
dispatcher training rules in subpart N of part 121 of this chapter and 
the aircraft dispatcher qualification and duty time limitation rules in 
subpart P of part 121 of this chapter.
    ii. The number of flights for which the aircraft dispatcher would 
be responsible.
    iii. Whether the responsibilities of the dispatcher would be beyond 
the capability of a single dispatcher.
    3. Expiration. This Special Federal Aviation Regulation terminates 
on

[[Page 13256]]

March 12, 2001, unless sooner terminated.
    19. Section 121.2 is amended by adding paragraphs (d)(1)(iv) and 
(e)(1)(iv) to read as follows:


Sec. 121.2  Compliance schedule for operators that transition to part 
121; certain new entrant operators.

* * * * *
    (d) * * *
    (1) * * *
    (iv) March 12, 1999: Section 121.310(b)(1), Interior emergency exit 
locating sign.
* * * * *
    (e) * * *
    (1) * * *
    (iv) Manufactured on or after March 12, 1999: Section 
121.310(b)(1), Interior emergency exit locating sign.
* * * * *
    20. Section 121.99 is revised to read as follows:


Sec. 121.99  Communication facilities.

    (a) Each certificate holder conducting domestic or flag operations 
must show that a two-way radio communication system or other means of 
communication approved by the Administrator is available at points that 
will ensure reliable and rapid communications, under normal operating 
conditions over the entire route (either direct or via approved point-
to-point circuits) between each airplane and the appropriate dispatch 
office, and between each airplane and the appropriate air traffic 
control unit, except as specified as Sec. 121.351(c).
    (b) For the following types of operations, the communications 
systems between each airplane and the dispatch office must be 
independent of any system operated by the United States:
    (1) All domestic operations;
    (2) Flag operations in the 48 contiguous States and the District of 
Columbia; and
    (3) After March 12, 2001, flag operations outside the 48 contiguous 
States and the District of Columbia.
    21. Section 121.137(c) is revised to read as follows:


Sec. 121.137  Distribution and availability.

* * * * *
    (c) For the purpose of complying with paragraph (a) of this 
section, a certificate holder may furnish the persons listed therein 
the maintenance part of the manual in printed form or other form, 
acceptable to the Administrator, that is retrievable in the English 
language.
    22. Section 121.139(a) is revised to read as follows:


Sec. 121.139  Requirements for manual aboard aircraft: Supplemental 
operations.

    (a) Except is provided in paragraph (b) of this section, each 
certificate holder conducting supplemental operations shall carry 
appropriate parts of the manual on each airplane when away from the 
principal base of operations. The appropriate parts must be available 
for use by ground of flight personnel. If the certificate holder 
carries aboard an airplane all or any portion of the maintenance part 
of its manual in other than printed form, it must carry a compatible 
reading device that produces a legible image of the maintenance 
information and instructions or a system that is able to retrieve the 
maintenance information and instructions in the English language.
* * * * *
    23. Section 121.305 is amended by removing the words ``paragraph 
(j) of this section'' in paragraph (f) and adding, in their place, the 
words ``paragraph (k) of this section;'' and by revising paragraph (j) 
to read as follows:


Sec. 121.305  Flight and navigational equipment.

* * * * *
    (j) On the airplane described in this paragraph, in addition to two 
gyroscopic bank and pitch indicators (artificial horizons) for use at 
the pilot stations, a third such instrument is installed in accordance 
with paragraph (k) of this section:
    (1) On each turbojet powered airplane.
    (2) On each turbopropeller powered airplane having a passenger-seat 
configuration of more than 30 seats, excluding each crewmember seat, or 
a payload capacity of more than 7,500 pounds.
    (3) On each turbopropeller powered airplane having a passenger-seat 
configuration of 30 seats or fewer, excluding each crewmember seat, and 
a payload capacity of 7,500 pounds or less that is manufactured on or 
after March 20, 1997.
    (4) After December 20, 2010, on each turbopropeller powered 
airplane having a passenger seat configuration of 10-30 seats and a 
payload capacity of 7,500 pounds or less that was manufactured before 
March 20, 1997.
* * * * *
    24. Section 121.310 is amended by adding the words ``Except as 
provided in paragraph (b)(2)(iii) of this section,'' to the beginning 
of paragraph (b)(2)(i); by revising the words ``For an airplane'' to 
read ``For a transport category airplane'' in paragraph (b)(2)(ii); and 
by adding a new paragraph (b)(2)(iii) to read as follows:


Sec. 121.310  Additional emergency equipment

* * * * *
    (b) * * *
    (2) * * *
    (iii) For a nontransport category turbopropeller powered airplane 
type certificated after December 31, 1964, each passenger emergency 
exit marking and each locating sign must be manufactured to meet the 
requirements of Sec. 23.811(b) of this chapter. On these airplanes, no 
sign may continue to be used if its luminescence (brightness) decreases 
to below 100 microlamberts.
* * * * *
    25. Section 121.333 is amended by revising paragraph (c)(2) to read 
as follows:


Sec. 121.333  Supplemental oxygen for emergency descent and for first 
aid; turbine engine powered airplanes with pressurized cabins.

* * * * *
    (c) * * *
    (2) When operating at flight altitudes above flight level 250, one 
pilot at the controls of the airplane shall at all times wear and use 
an oxygen mask secured, sealed, and supplying oxygen, in accordance 
with the following:
    (i) The one pilot need not wear and use an oxygen mask at or below 
the following flight levels if each flight crewmember on flight deck 
duty has a quick-donning type of oxygen mask that the certificate 
holder has shown can be placed on the face from its ready position, 
properly secured, sealed, and supplying oxygen upon demand, with one 
hand and within five seconds:
    (A) For airplanes having a passenger seat configuration of more 
than 30 seats, excluding any required crewmember seat, or a payload 
capacity of more than 7,500 pounds, at or below flight level 410.
    (B) For airplanes having a passenger seat configuration of less 
than 31 seats, excluding any required crewmember seat, and a payload 
capacity of 7,500 pounds or less, at or below flight level 350.
    (ii) Whenever a quick-donning type of oxygen mask is to be used 
under this section, the certificate holder shall also show that the 
mask can be put on without disturbing eye glasses and without delaying 
the flight crewmember from proceeding with his assigned emergency 
duties. The oxygen mask after being put on must not prevent 
communication between the flight crewmember and other crewmembers over 
the airplane intercommunication system.
* * * * *

[[Page 13257]]

    26. Section 121.437 is amended by removing paragraph (b), by 
redesignating current paragraph (c) as paragraph (b) and by adding a 
new sentence to redesignated paragraph (b) to read as follows:


Sec. 121.437  Pilot qualification: Certificates required.

* * * * *
    (b) * * * Notwithstanding the requirements of Sec. 61.63 (b) and 
(c) of this chapter, a pilot who is currently employed by a certificate 
holder and meets applicable training requirements of subpart N of this 
part, and the proficiency check requirements of Sec. 121.441, may be 
issued the appropriate category and class ratings by presenting proof 
of compliance with those requirements to a Flight Standards District 
Office.


Sec. 121.590  [Amended]

    27. Section 121.590 is amended in paragraph (a) by removing the 
words ``operate an aircraft into a land airport'' and adding, in their 
place, the words ``operate an airplane designed for at least 31 
passenger seats into a land airport.''
    28. Section 121.713 is amended by revising paragraph (b)(2) to read 
as follows:


Sec. 121.713  Retention of contracts and amendments: Commercial 
operators who conduct intrastate operations for compensation or hire.

* * * * *
    (b) * * *
    (2) The information required by Sec. 119.36(e)(2), (e)(7), and 
(e)(8) of this chapter.
* * * * *

PART 125--CERTIFICATION AND OPERATIONS: AIRPLANES HAVING A SEATING 
CAPACITY OF 20 OR MORE PASSENGERS OR A MAXIMUM PAYLOAD CAPACITY OF 
6,000 POUNDS OR MORE

    29. The authority citation for part 125 continues to read as 
follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701-44702, 44705, 44710--
44711, 44713, 44716-44717, 44722.

    30. Section 125.71(f) is revised to read as follows:


Sec. 125.71  Preparation

* * * * *
    (f) For the purpose of complying with paragraph (d) of this 
section, a certificate holder may furnish the persons listed therein 
with the maintenance part of its manual in printed form or other form, 
acceptable to the Administrator, that is retrievable in the English 
language. If the certificate holder furnishes the maintenance part of 
the manual in other than printed form, it must ensure there is a 
compatible reading device available to those persons that provides a 
legible image of the maintenance information and instructions or a 
system that is able to retrieve the maintenance information and 
instructions in the English language.
* * * * *

PART 135--OPERATING REQUIREMENTS: COMMUTER AND ON-DEMAND OPERATIONS

    31. The authority citation for part 135 continues to read as 
follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701-44702, 44705, 44709, 
44711-44713, 44715-44717, 44722.

    32. Section 135.2 is amended in paragraphs (d)(1)(1) introductory 
text, (d)(2)(i) introductory text, and (e)(1))ii) by removing the words 
``December 22, 1997'' and adding, in their place, the words ``December 
20, 1997;'' and by adding paragraphs (d)(1))iv) and (e)(1)(iv) to read 
as follows:


Sec. 135.2  Compliance schedule for operators that transition to part 
121 of this chapter; certain new entrant operators.

* * * * *
    (d) * * *
    (1) * * *
    (iv) March 12, 1999: Section 121.310(b)(1), Interior emergency exit 
locating sign.
* * * * *
    (e) * * *
    (1) * * *
    (iv) Manufactured on or after March 12, 1999: Section 
121.310(b)(1), Interior emergency exit locating sign.
* * * * *
    33. Section 135.21(f) is revised to read as follows:


Sec. 135.21  Manual requirements.

* * * * *
    (f) For the purpose of complying with paragraph (d) of this 
section, a certificate holder may furnish the persons listed therein 
with the maintenance part of its manual in printed form or other form, 
acceptable to the Administrator, that is retrievable in the English 
language. If the certificate holder furnishes the maintenance part of 
the manual in other than printed form, it must ensure there is a 
compatible reading device available to those persons that provide a 
legible image of the maintenance information and instructions, or a 
system that is able to retrieve the maintenance information and 
instructions in the English language.
* * * * *


Sec. 135.25  [Amended]

    34. Section 135.25 is amended in paragraph (b) by removing the 
words ``air taxi or commercial operations'' and adding, in their place, 
the words ``operations under this part.''


Sec. 135.64  [Amended]

    35. Section 135.64 is amended by removing paragraph (b) and 
removing the paragraph designation ``(a)'' from the remaining 
paragraph.
    36. Section 135.153 is amended by revising paragraph (a) and 
removing and reserving paragraph (b) to read as follows:


Sec. 135.153  Ground proximity warning system.

    (a) No person may operate a turbine-powered airplane having a 
passenger seat configuration of 10 seats or more, excluding any pilot 
seat, unless it is equipped with an approved ground proximity warning 
system.
    (b) [Reserved]
* * * * *
    37. Section 135.427 is amended by adding a new paragraph (d) to 
read as follows:


Sec. 135.427  Manual requirements.

* * * * *
    (d) For the purposes of this part, the certificate holder must 
prepare that part of its manual containing maintenance information and 
instructions, in whole or in part, in printed form or other form, 
acceptable to the Administrator, that is retrievable in the English 
language.

    Issued in Washington, D.C., on March 12, 1997.
Barry L. Valentine,
Acting Administrator.
[FR Doc. 97-6797 Filed 3-14-97; 1:09 pm]
BILLING CODE 4910-13-M