[Federal Register Volume 67, Number 172 (Thursday, September 5, 2002)]
[Proposed Rules]
[Pages 56777-56785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22307]


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DEPARTMENT OF DEFENSE

Department of the Air Force

32 CFR Part 861

RIN 0701-AA67


Department of Defense Commercial Air Transportation Quality and 
Safety Review Program

AGENCY: Department of the Air Force, DOD.

ACTION: Proposed rule.

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SUMMARY: The Department of the Air Force proposes to revise the 
Department of Defense Commercial Transportation Quality and Safety 
Review Program. The current version of the program is being updated to 
reflect current and anticipated policies. The public is invited to 
submit comments on these changes to the point of contact listed below.

DATES: Submit comments on or before September 20, 2002.

ADDRESSES: Address all comments concerning this proposed rule to Mr. 
Merlin Lyman, Air Mobility Command, HQ AMC/DOB, 402 Scott Drive, Unite 
3A1, Scott AFB, IL 62225-5302.

FOR FURTHER INFORMATION CONTACT: Mr. Merlin Lyman, 618-229-4801.

SUPPLEMENTARY INFORMATION: This action is authorized by 10 U.S.C. 8013 
and 10 U.S.C. 2640. The Department of the Air Force has determined that 
this rule is not a major rule because it will not have an annual effect 
on the economy of $100 million or more. The Secretary of the Air Force 
has certified that this rule is exempt from the requirements of the 
Regulatory Flexibility Act, 5 U.S.C. 601 to 612, because this rule does 
not have a significant economic impact on small entities as defined by 
the Act, and does not impose any obligatory information requirements 
beyond internal Air Force use. This document proposes extensive 
revisions and should be reviewed in its entirety.

List of Subjects in 32 CFR Part 861

    Administrative practice and procedure, Air carriers, Aviation 
safety, Military air transportation.

    For the reasons set forth in the preamble, the Air Force is 
proposing to revise 32 CFR Part 861 to read as follows:

PART 861--DEPARTMENT OF DEFENSE COMMERCIAL AIR TRANSPORTATION 
QUALITY AND SAFETY REVIEW PROGRAM

Sec.
861.1 References.
861.2 Purpose.
861.3 Definitions.
861.4 DOD commercial air transportation quality and safety review 
program.
861.5 DOD Commercial Airlift Review Board procedures.
861.6 DOD review of foreign air carriers.
861.7 Disclosure of voluntarily provided safety-related information.

    Authority: 10 U.S.C. 2640, 8013.


Sec.  861.1  References.

    The following references apply to this part:
    (a) 10 U.S.C. 2640, Charter Air Transportation of Members of the 
Armed Forces.
    (b) Department of Defense Directive 4500.53, Department of Defense 
Commercial Air Transportation Quality and Safety Review Program.


Sec.  861.2  Purpose.

    Department of Defense Directive 4500.53, Department of Defense 
Commercial Air Transportation Quality and Safety Review Program, 
charges the Commander-in-Chief (CINC), United States Transportation 
Command (USTRANSCOM), with ensuring the establishment of safety 
requirements and criteria for evaluating civil air carriers and 
operators (hereinafter collectively referred to as ``air carriers'') 
providing air transportation and operational support services to the 
Department of Defense (DOD). It also charges the CINC with ensuring the 
establishment of a Commercial Airlift Review Board (CARB) and providing 
policy guidance and direction for its operation. This part establishes 
DOD quality and safety criteria for air carriers providing or seeking 
to provide air transportation and, at the discretion of the CARB or 
higher authority, operational support services to the DOD. This part 
also includes the operating procedures of the CARB. The CARB has the 
authority to suspend air carriers from DOD use or take other actions 
when issues of air carrier quality and air safety arise.


Sec.  861.3  Definitions.

    (a) Air carrier. Individuals or entities that operate commercial 
fixed and rotary wing aircraft in accordance with the Federal Aviation 
Regulations (14 CFR chapter I) or equivalent regulations issued by a 
country's Civil Aviation Authority (CAA) and which provide air 
transportation or operational support services. Commercial air carriers 
under contract with, or operating on behalf of the DOD shall have a FAA 
or CAA certificate.
    (b) Air transportation services. The transport of DOD personnel or 
cargo by fixed or rotary wing commercial aircraft, where such services 
are acquired primarily for the transportation of DOD personnel and 
cargo, through donation or any form of contract, tender, blanket 
ordering agreement, Government charge card, Government or commercial 
transportation request (TR), bill of lading, or similar instruments. 
Air transportation services also include medical evacuation services, 
paratrooper drops, and charter airlift and group travel arranged by the 
Military Service Academies, foreign military sales, nonappropriated 
fund instrumentalities by other DOD and non-DOD activities for DOD 
personnel. All air carriers providing air transportation services to 
DOD must have a FAA or CAA certificate. The policy contained in this 
Directive shall not apply to individually procured, discretionary air 
travel, such as that associated with military leave or pass.
    (c) Civil Aviation Authority (CAA). The CAA refers to the 
organization within a country that has the authority and responsibility 
to regulate civil aviation. The term CAA is used throughout this part 
since these requirements are applicable to both U.S. and foreign 
carriers doing business with DOD. The term CAA thus includes the U.S. 
Federal Aviation Administration (FAA).
    (d) Code sharing. Code sharing is a marketing arrangement in which 
an air carrier places its designator code on a

[[Page 56778]]

flight operated by another air carrier and sells tickets for that 
flight.
    (e) DOD approval. DOD approval in the context of this part refers 
to the process by which air carriers seeking to provide passenger or 
cargo airlift services (hereinafter referred to as air transportation 
services) to the DOD must be screened and evaluated by the DOD Air 
Carrier Survey and Analysis Office or other entity authorized by the 
CARB, and approved for DOD use by the CARB. Once initial approval is 
obtained, a DOD approved air carrier must remain in an approved status 
to be eligible for DOD business. Although not generally required, the 
CARB or higher authority may, on a case-by-case basis, require DOD 
approval of air carriers providing operational support services to DOD.
    (f) DOD air carrier safety and quality review process. Includes 
four possible levels of review with increasing authority. The 
responsibilities of each are described in more detail in the reference 
in Sec.  861.1(b). These levels consist of the:
    (1) DOD Air Carrier Survey and Analysis Office;
    (2) DOD Commercial Airlift Review Board (CARB);
    (3) Commander-in-Chief, U.S. Transportation Command, or 
USCINCTRANS; and
    (4) Secretary of Defense. (Note: A DOD-level body, the Commercial 
Airlift Review Authority, or CARA, provides advice and recommendations 
to the Secretary of Defense.)
    (g) Federal Aviation Administration (FAA) International Safety 
Assessment (IASA) program and categories. The FAA IASA program assesses 
the ability of a foreign country's CAA to adhere to international 
standards established by the United Nations' technical agency for 
aviation, the International Civil Aviation Organization (ICAO). The FAA 
has established ratings for the status of countries as follows:
    (1) Category 1--Does Comply with ICAO Standards. A country's CAA 
has been found to license and oversee air carriers in accordance with 
ICAO aviation safety standards.
    (2) Category 2--Does Not Comply with ICAO Standards. A country's 
CAA does not meet ICAO standards for aviation oversight. Operations to 
the U.S. by a carrier from a Category 2 country are limited to those in 
effect at the time a country is classified as Category 2 and are 
subjected to heightened FAA surveillance. Expansion or changes in 
services to the U.S. are not permitted while a country is in Category 2 
status unless the carrier arranges to have new services conducted by an 
air carrier from a Category 1 country. Category 2 countries that do not 
have operations to the U.S. at the time of the FAA assessment are not 
permitted to commence such operations unless it arranges to have its 
flights conducted by an air carrier from a Category 1 country.
    (3) Non-rated. A country's CAA is labeled ``non-rated'' if it has 
not been assessed by the FAA.
    (h) GSA City Pair Program. A program managed by the General 
Services Administration in which U.S. air carriers compete for annual 
contracts awarding U.S. government business for specific domestic and 
international scheduled service city pair routes.
    (i) Group travel. Twenty-one or more passengers on orders from the 
same organization traveling on the same date to the same destination to 
attend the same function.
    (j) Letter of Warning. A notice to a DOD approved air carrier of a 
failure to satisfy safety or airworthiness requirements which, if not 
remedied, may result in temporary nonuse or suspension of the air 
carrier by the DOD. Issuance of a Letter of Warning is not a 
prerequisite to a suspension or other action by the CARB or higher DOD 
authority.
    (k) On-site Capability Survey. The most comprehensive evaluation 
performed by DOD's Air Carrier Survey and Analysis Office. Successful 
completion of this evaluation is required of most air carriers before 
they may be approved to provide air transportation services to DOD. 
Once approved, air carriers are subject to periodic On-site Capability 
Surveys, as specified at Enclosure 3 of the reference in Sec.  
861.1(b).
    (l) Operational support services. Missions performed by air 
carriers that use fixed or rotary-winged aircraft to provide services 
other than air transportation services as defined in paragraph (b) of 
this section. Examples include, but are not limited to, range 
instrumentation and services, target-towing, sling loads, and 
electronic countermeasures target flights. Air carriers providing only 
operational support services do not require advance DOD approval and 
are not subject to the initial or periodic on-site survey requirements 
under this part, unless directed by the CARB or higher authority. All 
air carriers providing operational support services to DOD must have a 
FAA or CAA certificate and are required to maintain applicable FAA or 
CAA standards absent deviation authority obtained pursuant to 14 CFR 
119.55 or similar CAA rules.
    (m) Performance assessments. Reviews conducted by U.S. air carriers 
when evaluating foreign air carriers with which they have code share 
arrangements, using performance-based factors. Such assessments include 
reviewing a variety of air carrier data including history, safety, 
scope/size, financial condition, equipment, flight operations and 
airworthiness issues.
    (n) Performance evaluations. Reviews conducted by DOD as directed 
in the references in Sec.  861.1(a) and (b). These evaluations include 
a review of air carrier flight operations, maintenance departments, 
safety programs and other air carrier areas as necessary. Performance 
evaluations are not conducted on-site, but rely on information 
collected primarily from the FAA and the National Transportation Safety 
Board (NTSB).
    (o) Preflight safety inspection. A visual safety inspection of the 
interior and exterior of an air carrier's aircraft performed by DOD 
personnel in accordance with the references in Sec.  861.1(a) and (b).
    (p) Suspension. The exclusion of an air carrier from providing 
services to the DOD. The period of suspension will normally:
    (1) Remain in effect until the air carrier furnishes satisfactory 
evidence that the conditions causing the suspension have been remedied 
and has been reinstated by the CARB; or
    (2) Be for a fixed period of time as determined at the discretion 
of the CARB.
    (q) Temporary nonuse. The immediate exclusion of a DOD approved air 
carrier from providing services to the DOD pending a decision on 
suspension. Normally, temporary nonuse will be for a period of 30 days 
or less. However, by mutual agreement of the CARB and the air carrier 
involved, a suspension hearing or decision may be delayed and the air 
carrier continued in a temporary nonuse status for an extended period 
of time.
    (r) Voluntarily provided safety-related information. Information 
which consists of nonfactual safety-related data, reports, statements, 
and other information provided to DOD by an air carrier at any point in 
the evaluation process described in this Part. It does not include 
factual safety-related information, such as statistics, maintenance 
reports, training records, flight planning information, and the like.


Sec.  861.4  DOD commercial air transportation quality and safety 
review program.

    (a) General. The DOD, as a customer of air transportation and 
operational support services, expects air carriers used by DOD to 
employ programs and

[[Page 56779]]

business practices that not only ensure good service but also enhance 
the safety, operational, and maintenance standards established by 
applicable Civil Aviation Authority (CAA) regulations. Accordingly, and 
as required by the references in Sec.  861.1(a) and (b), the DOD has 
established a set of quality and safety criteria and requirements that 
reflect the type programs and practices DOD seeks from air carriers 
providing services to DOD. Air carriers must meet and maintain these 
requirements in order to be eligible for DOD business. Air carriers 
providing air transportation services to DOD either directly by 
contract or agreement, or indirectly through the General Services 
Administration (GSA) City Pair Program or some other arrangement, must 
be approved by DOD prior to providing such services and remain in an 
approved status throughout the contract, agreement, or arrangement 
performance period. This approval entails successful completion of 
initial and recurring on-site surveys as well as periodic performance 
evaluations in accordance with the reference in Sec.  861.1(b). The 
quality and safety criteria and requirements set forth in this part 
complement rather than replace the CAA criteria applicable to air 
carriers. Air carriers normally remain fully subject to applicable CAA 
regulations (CARs) while performing business for the DOD, even when the 
aircraft involved is used exclusively for DOD missions. The inspection 
and oversight criteria set forth in this part do not, as a general 
rule, apply to air carriers providing only operational support services 
to DOD. However, in the event concerns relating to the safety of such a 
carrier arise, the CARB or higher authority may, on a case-by-case 
basis, direct an appropriate level of oversight under the authority of 
this part.
    (b) Applicability. (1) The evaluation, quality and safety criteria 
and requirements set forth in this part apply to air carriers providing 
or seeking to provide air transportation services to DOD.
    (2) Foreign air carriers performing portions of GSA City Pair 
routes awarded to U.S. air carriers under a code-sharing arrangement, 
as well as foreign air carriers providing individually-ticketed 
passenger service to DOD personnel traveling on official business, may 
be subject to limited oversight and review pursuant to Sec.  861.6.
    (3) The inspection and oversight requirements, as well as the 
quality and safety criteria of this part may, on a case-by-case basis 
and at the discretion of the CARB or higher authority, be applied to 
air carriers seeking to provide or providing operational support 
services as defined in Sec.  861.3(l).
    (4) The inspection and oversight requirements of this part do not 
apply to aircraft engaged in medical transport services if procured 
under emergency conditions to save life, limb or eyesight. Likewise, 
the inspection and oversight requirements of this part are not 
applicable when DOD is not involved in the procurement of the medical 
transportation services. For example, when specific medical treatment 
is obtained on an individual basis by or for DOD personnel with medical 
transportation provided, as needed, at the direction of the non-DOD 
medical care giver. This includes situations where DOD, through TRICARE 
or otherwise, pays for such transportation as part of the costs of 
medical services provided.
    (c) Scope and nature of the evaluation program. (1) Evaluation 
requirement. The provision of air transportation services under a 
contract or agreement with or on behalf of DOD, requires the successful 
completion of an initial on-site survey and approval by the CARB under 
this part in order to be eligible for DOD business. In addition, U.S. 
air carriers awarded contracts under the GSA City Pair Program, 
including those that perform part of the contract under a code-sharing 
arrangement with the U.S. air carrier awarded the contract, must 
successfully complete an initial on-site survey and be approved by the 
CARB for DOD use under this part prior to beginning performance of the 
GSA contract. Once approved by DOD, air carriers providing air 
transportation services are subject to recurring on-site surveys and 
performance evaluations and assessments throughout the duration of the 
relevant contract or agreement. The frequency and scope of these 
surveys and performance reviews will be in accordance with Enclosure 3 
of the reference in Sec.  861.1(b).
    (2) Office of primary responsibility. Evaluations are performed by 
the DOD Air Carrier Survey and Analysis Office located at Scott Air 
Force Base, Illinois. The mailing address of this office is HQ AMC/DOB, 
402 Scott Drive Unit 3A1, Scott AFB IL 62225-5302. The website address 
is https://public.scott.af.mil/hqamc/dob/index.htm.
    (3) Items considered in the evaluation process. The specifics of 
the applicable DOD contract or agreement (if any), the applicable CAA 
regulations, and the experienced judgment of DOD personnel will be used 
to evaluate an air carrier's capability to perform services for DOD. 
The survey may also include, with the air carrier's coordination, 
observation of cockpit crew performance, as well as ramp inspections of 
selected company aircraft. In the case of air carriers seeking to 
provide air transportation services, after satisfactory completion of 
the initial survey and approval by the CARB as a DOD air carrier, 
follow-up surveys will be conducted on a recurring basis and when 
otherwise required to validate adherence to DOD quality and safety 
requirements. DOD personnel will also assess these quality and safety 
requirements when conducting periodic air carrier performance 
evaluations. The size of an air carrier, along with the type and scope 
of operations will be considered during the on-site survey. For 
example, while an air taxi operator may not have a formal flight 
control function, such as a 24-hour dispatch organization, that same 
air taxi operator is expected to demonstrate some type of effective 
flight following capability. On the other hand, a major air carrier is 
expected to have a formal flight control or dispatch function. Both, 
however, will be evaluated based on the effectiveness and quality of 
whatever flight following function they do maintain. In the case of air 
carriers seeking to provide operational support services, the type, 
scope and frequency of evaluation, if any, performed by DOD or other 
entity will be as directed by the CARB or higher authority.
    (d) Status of aircraft performing services for DOD. All air 
carriers providing air transportation or operational support services 
to the DOD shall have FAA or CAA air carrier or commercial operator 
certificates and shall remain under FAA and/or CAA regulatory and 
safety oversight during performance of the DOD mission. Aircraft 
performing services for or on behalf of DOD shall be on the air 
carrier's operating certificate, and remain on that certificate while 
performing the DOD mission. The installation of any special equipment 
needed to perform services for DOD shall be FAA or CAA approved or an 
appropriate FAA or CAA waiver obtained.
    (e) Evaluation requirements. The air carrier requirements stated in 
this part provide the criteria against which would-be DOD and GSA City 
Pair Program air carrier contractors, as well as air carriers providing 
services on behalf of DOD, may be subjectively evaluated by DOD. These 
requirements are neither all-inclusive nor inflexible in nature. They 
are not replacements for the certification criteria and other 
regulations established by the CAA. Rather, these requirements 
complement

[[Page 56780]]

CAA certification criteria and regulations and describe the enhanced 
level of service required by DOD. The relative weight accorded these 
requirements in a given case, as well as the determination of whether 
an air carrier meets or exceeds them, is a matter within the sole 
discretion of the DOD Air Carrier Survey and Analysis Office and the 
CARB, subject to the statutory minimums provided in the reference in 
Sec.  861.1(a).
    (1) Quality and safety requirements--prior experience. U.S. and 
foreign air carriers applying for DOD approval in order to conduct air 
transportation services for or on behalf of DOD under a contract or 
agreement with DOD, the GSA City Pair Program, or by some other 
arrangement are required to possess 12 months of continuous service 
equivalent to the service sought by DOD. In applying this requirement, 
the following guidance will be used by DOD authorities:
    (i) ``12 months'' refers to the 12 calendar months immediately 
preceding the request for DOD approval.
    (ii) ``Continuous'' service means the carrier must have performed 
revenue-generating services of the nature for which DOD approval is 
sought, as an FAA Part 121, 125, 127, or 135 (14 CFR part 121, 125, 
127, or 135) air carrier (or foreign CAA equivalent if appropriate) on 
a recurring, substantially uninterrupted basis. The services must have 
occurred with such frequency and regularity as to clearly demonstrate 
the carrier's ability to perform and support sustained, safe, reliable, 
and regular services of the type DOD is seeking. Weekly flight activity 
is normally considered continuous, while sporadic or seasonal 
operations (if such operations are the only operations conducted by the 
carrier) may not suffice to establish a carrier's ability to perform 
and support services in the sustained, safe, reliable, and regular 
manner required by DOD. The ability of a carrier to perform services of 
the type sought by DOD may be called into question if there have been 
lengthy periods of time during the qualifying period in which the 
carrier has not operated such services. Consequently, any cessation, or 
nonperformance of the type of service for which approval is sought may, 
if it exceeds 30 days in length during the qualifying period and 
depending on the underlying factual circumstances, necessitate 
``restarting'' the 12-month continuous service period needed to obtain 
DOD approval.
    (iii) ``Equivalent to the services sought by DOD'' means service 
offered to qualify for DOD approval must be substantially equivalent to 
the type of service sought by DOD. The prior experience must be 
equivalent in difficulty and complexity with regard to the distances 
flown, weather systems encountered, international and national 
procedures, the same or similar aircraft, schedule demands, aircrew 
experience, number of passengers handled, frequency of operations, and 
management required. There is not a set formula for determining whether 
a particular type of service qualifies. The performance of cargo 
services is not considered to be ``substantially equivalent'' to the 
performance of passenger services, and may not be used to meet the 12 
continuous months requirement for passenger services. However, when a 
carrier already providing cargo services to DOD applies to carry 
passengers, the CARB may consider the carrier's cargo performance and 
experience in assessing whether a carrier is qualified to carry 
passengers on a specific type or category of aircraft, over certain 
routes or stage lengths, or under differing air traffic control, 
weather, or other conditions. The following examples are illustrative 
and not intended to reflect or predict CARB action in any given case:

    Example 1: Coyote Air has operated commercial passenger commuter 
operations in the U.S. for a number of years flying a variety of 
twin-engine turboprop aircraft. They have also been a DOD-approved 
cargo carrier, providing international cargo services using DC-10 
freighter aircraft. Coyote Air purchases a passenger version DC-10, 
and seeks DOD approval to provide international passenger service 
for DOD. The CARB may decide that although Coyote Air has provided 
passenger services for 12 continuous months, those services are not 
substantially equivalent to those being sought by DOD. While the 
carrier may have considerable operational experience with the DC-10, 
its commuter passenger operations are not substantially equivalent 
to the service now proposed--international passenger services on 
large jet aircraft.

    Example 2: Acme Air has been a DOD-approved cargo carrier for 
several years, operating domestic and international missions with 
MD-11 freighter aircraft. At the same time, Acme has been performing 
commercial international passenger services with B-757 aircraft. 
Acme Air purchases a MD-11 passenger aircraft and applies to perform 
passenger services for DOD using the MD-11. Assuming Acme has 
performed B-757 passenger service for 12 continuous months 
immediately preceding its application, the CARB may consider these 
passenger services substantially equivalent to those proposed since 
both involve the operation of large multi-engine aircraft in an 
international environment. The CARB may also consider Acme's 
operational history with its MD-11 freighter aircraft in determining 
whether the carrier is competent to provide MD-11 passenger service 
in the same environment.

    (iv) Once approved by DOD, an air carrier's failure to maintain 
continuous operations of the type for which approval has been granted 
may, at the discretion of the CARB, be grounds for nonuse or suspension 
under this part, rendering the carrier ineligible for DOD business 
during the nonuse or suspension period. Any cessation or nonperformance 
of the type of service for which approval has been obtained may, if it 
exceeds 30 days in length and depending on the circumstances, provide 
the basis for the CARB to take appropriate action.
    (2) Quality and safety requirements--air carrier management. 
Management has clearly defined safety as the number one company 
priority, and safety is never sacrificed to satisfy passenger concern, 
convenience, or cost. Policies, procedures, and goals that enhance the 
CAA's minimum operations and maintenance standards have been 
established and implemented. A cooperative response to CAA inspections, 
critiques, or comments is demonstrated. Proper support infrastructure, 
including facilities, equipment, parts, and qualified personnel, is 
provided at the certificate holder's primary facility and en route 
stations. Personnel with aviation credentials and experience fill key 
management positions. An internal quality audit program or other method 
capable of identifying in-house deficiencies and measuring the 
company's compliance with their stated policies and standards has been 
implemented. Audit results are analyzed in order to determine the 
cause, not just the symptom, of any deficiency. The result of sound 
fiscal policy is evident throughout the company. Foreign code-sharing 
air carrier partners are audited at least every two years using DOD-
approved criteria and any findings resolved. Comprehensive disaster 
response plans and, where applicable, family support plans, must be in 
place and exercised on a regular basis.
    (3) Quality and safety requirements--operations.
    (i) Flight safety. Established policies that promote flight safety. 
These policies are infused among all aircrew and operational personnel 
who translate the policies into practice. New or revised safety-related 
data are promptly disseminated to affected personnel who understand 
that deviation from any established safety policy is unacceptable. An 
audit system that detects unsafe practices is in place and

[[Page 56781]]

a feedback structure informs management of safety policy results 
including possible safety problems. Management ensures that corrective 
actions resolve every unsafe condition.
    (ii) Flight operations. Established flight operations policies and 
procedures are up-to-date, reflect the current scope of operations, and 
are clearly defined to aviation department employees. These adhered-to 
procedures are further supported by a flow of current, management-
generated safety and operational communications. Managers are in touch 
with mission requirements, supervise crew selection, and ensure the 
risk associated with all flight operations is reduced to the lowest 
acceptable level. Flight crews are free from undue management pressure 
and are comfortable with exercising their professional judgment during 
flight activities, even if such actions do not support the flight 
schedule. Effective lines of communication permit feedback from line 
crews to operations managers. Personnel records are maintained and 
reflect such data as experience, qualifications, and medical status.
    (iii) Flight crew hiring. Established procedures ensure that 
applicants are carefully screened, including a review of the 
individual's health and suitability to perform flight crew duties. 
Consideration is given to the applicant's total aviation background, 
appropriate experience, and the individual's potential to perform 
safely. Freedom from alcohol abuse and illegal drugs is required. If 
new-hire cockpit crewmembers do not meet industry standards for 
experience and qualification, then increased training and management 
attention to properly qualify these personnel are required.
    (iv) Aircrew training. Training, including recurrent training, 
which develops and refines skills designed to eliminate mishaps and 
improve safety, is essential to a quality operation. Crew coordination 
training that facilitates full cockpit crews training and full crew 
interaction using standardized procedures and including the principles 
of Crew Resource Management (CRM) is required. Programs involving the 
use of simulators or other devices that can provide realistic training 
scenarios are desired. Captain and First Officer training objectives 
cultivate similar levels of proficiency. Appropriate emergency 
procedures training (e.g., evacuation procedures) is provided to flight 
deck and flight attendant personnel as a total crew whenever possible; 
such training focuses on cockpit and cabin crews functioning as a 
coordinated team during emergencies. Crew training--be it pilot, 
engineer, or flight attendant--is appropriate to the level of risk and 
circumstances anticipated for the trainee. Training programs have the 
flexibility to incorporate and resolve recurring problem areas 
associated with day-to-day flight operations. Aeromedical crews must 
also be trained in handling the specific needs of the categories of 
patients normally accepted for transportation on the equipment to be 
used. Trainers are highly skilled in both subject matter and training 
techniques. Training received is documented, and that documentation is 
maintained in a current status.
    (v) Captain upgrade training. A selection and training process that 
considers proven experience, decision making, crew resource management, 
and response to unusual situations, including stress and pressure, is 
required. Also important is emphasis on captain responsibility and 
authority.
    (vi) Aircrew scheduling. A closely monitored system that evaluates 
operational risks, experience levels of crewmembers, and ensures the 
proper pairing of aircrews on all flights is required. New captains are 
scheduled with highly experienced first officers, and new or low-time 
first officers are scheduled with experienced captains. Except for 
aircraft new to the company, captains and first officers assigned to 
DOD charter passenger missions possess at least 250 hours combined 
experience in the type aircraft being operated. The scheduling system 
involves an established flight duty time program for aircrews, 
including flight attendants, carefully managed so as to ensure proper 
crew rest and considers quality-of-life factors. Attention is given to 
the stress on aircrews during strikes, mergers, or periods of labor-
management difficulties.
    (vii) In-flight performance. Aircrews, including flight attendants 
and flight medical personnel, are fit for flight duties and trained to 
handle normal, abnormal, and emergency situations. They demonstrate 
crew discipline and a knowledge of aviation rules; use company-
developed standardized procedures; adhere to checklists; and emphasize 
safety, including security considerations, throughout all preflight, 
in-flight, and postflight operations. Qualified company personnel 
evaluate aircrews and analyze results; known performance deficiencies 
are eliminated. Evaluations ensure aircrews demonstrate aircraft 
proficiency in accordance with company established standards. Flight 
crews are able to determine an aircraft's maintenance condition prior 
to flight and use standardized methods to accurately report aircraft 
deficiencies to the maintenance activity.
    (viii) Operational control/support. Effective mission control 
includes communications with aircrews and the capability to respond to 
irregularities or difficulties. Clear written procedures for mission 
preparation and flight following aircraft and aircrews are provided. 
There is access to weather, flight planning, and aircraft maintenance 
data. There are personnel available who are knowledgeable in aircraft 
performance and mission requirements and that can correctly respond to 
emergency situations. There is close interface between operations and 
maintenance, ensuring a mutual awareness of aircraft operational and 
maintenance status. Procedures to notify DOD in case of an accident or 
serious incident have been established. Flight crews involved in such 
accidents or incidents report the situation to company personnel who, 
in turn, have procedures to evaluate the flight crew's capability to 
continue the mission. Aircraft involved in accidents or incidents are 
inspected in accordance with Civil Aviation Regulations and a 
determination made as to whether or not the aircraft is safe for 
continued operations.
    (ix) DOD charter procedures. Detailed procedures addressing 
military charter requirements are expected. The level of risk 
associated with DOD charter missions does not exceed the risks inherent 
in the carrier's non-DOD daily flight operations. Complete route 
planning and airport analyses are accomplished, and actual passenger 
and cargo weights are used in computing aircraft weight and balance.
    (4) Quality and safety requirements--maintenance. Maintenance 
supervisors ensure all personnel understand that in spite of scheduling 
pressure, peer pressure, supervisory pressure, or other factors, the 
airplane must be airworthy prior to flight. Passenger and employee 
safety is a paramount management concern. Quality, completeness, and 
integrity of work are trademarks of the maintenance manager and 
maintenance department. Nonconformance to established maintenance 
practices is not tolerated. Management ensures that contracted 
maintenance, including repair and overhaul facilities, is performed by 
maintenance organizations acceptable to the CAA.
    (i) Maintenance personnel. Air carriers are expected to hire and 
train the number of employees required to safely maintain the company 
aircraft and support the scope of the maintenance operations both at 
home station (the company's primary facility)

[[Page 56782]]

and at en route locations. These personnel ensure that all maintenance 
tasks, including required inspections and airworthiness directives, are 
performed; that maintenance actions are properly documented; and that 
the discrepancies identified between inspections are corrected. 
Mechanics are fit for duty, properly certificated, the company verifies 
certification, and these personnel possess the knowledge and the 
necessary aircraft-specific experience to accomplish the maintenance 
tasks. Noncertified and inexperienced personnel received proper 
supervision. Freedom from alcohol abuse and illegal drugs is required.
    (ii) Quality assurance. A system that continuously analyzes the 
performance and effectiveness of maintenance activities and maintenance 
inspection programs is required. This system evaluates such functions 
as reliability reports, audits, component tear-down reports, inspection 
procedures and results, tool calibration program, real-time aircraft 
maintenance actions, warranty programs, and other maintenance 
functions. The extent of this program is directly related to the air 
carrier's size and scope of operation. The cause of any recurring 
discrepancy or negative trend is researched and eliminated. Action is 
taken to prevent recurrence of these discrepancies and preventive 
actions are monitored to ensure effectiveness. The results of 
preventive actions are provided to appropriate maintenance technicians.
    (iii) Maintenance inspection activity. A process to ensure required 
aircraft inspections are completed and the results properly documented 
is required. Also required is a system to evaluate contract vendors, 
suppliers, and their products. Inspection personnel are identified, 
trained (initial and recurrent), and provided guidance regarding 
inspector responsibility and authority. The inspection activity is 
normally a separate entity within the maintenance department.
    (iv) Maintenance training. Training is conducted commensurate with 
the size and type of maintenance function being performed. Continuing 
education and progressive experience are provided for all maintenance 
personnel. Orientation, familiarization, on-the-job, and appropriate 
recurrent training for all full and part-time personnel are expected. 
The use of such training aids as mockups, simulators, and computer-
based training enhances maintenance training efforts and is desired. 
Training documentation is required; it is current, complete, well 
maintained, and correctly identifies any special authorization such as 
inspection and airworthiness release. Trainers are fully qualified in 
the subject manner.
    (v) Maintenance control. A method to control maintenance activities 
and track aircraft status is required. Qualified personnel monitor 
maintenance preplanning, ensure completion of maintenance actions, and 
track deferred discrepancies. Deferred maintenance actions are 
identified to supervisory personnel and corrected in accordance with 
the criteria provided by the manufacturer or regulatory agency. 
Constant and effective communications between maintenance and flight 
operations ensure an exchange of critical information.
    (vi) Aircraft maintenance program. Aircraft are properly certified 
and maintained in a manner that ensures they are airworthy and safe. 
The program includes the use of manufacturer's and CAA information, as 
well as company policies and procedures. Airworthiness directives are 
complied with in the prescribed time frame, and service bulletins are 
evaluated for applicable action. Approved reliability programs are 
proactive, providing management with visibly on the effectiveness of 
the maintenance program; attention is given to initial component and 
older aircraft inspection intervals and to deferred maintenance 
actions. Special tools and equipment are calibrated.
    (vii) Maintenance records. Maintenance actions are well documented 
and provide a complete record of maintenance accomplished and, for 
repetitive actions, maintenance required. Such records as aircraft log 
books and maintenance documentation are legible, dated, clean, readily 
identifiable, and maintained in an orderly fashion. Inspection 
compliance, airworthiness release, and maintenance release records, 
etc., are completed and signed by approved personnel.
    (viii) Aircraft appearance. Aircraft exteriors, including all 
visible surfaces and components, are clean and well maintained. 
Interiors are also clean and orderly. Required safety equipment and 
systems are available and operable.
    (ix) Fueling and servicing. Aircraft fuel is free from 
contamination, and company fuel facilities (farms) are inspected and 
results documented. Procedures and instructions pertaining to 
servicing, handling, and storing fuel and oil meet established safety 
standards. Procedures for monitoring and verifying vendor servicing 
practices are included in this program.
    (x) Maintenance manuals. Company policy manuals and manufacturer's 
maintenance manuals are current, available, clear, complete, and 
adhered to by maintenance personnel. These manuals provide maintenance 
personnel with standardized procedures for maintaining company 
aircraft. Management policies, lines of authority, and company 
maintenance procedures are documented in company manuals and kept in a 
current status.
    (xi) Maintenance facilities. Well maintained, clean maintenance 
facilities, adequate for the level of aircraft repair authorized in the 
company's CAA certificate are expected. Safety equipment is available 
in hangars, shops, etc., and is serviceable. Shipping, receiving, and 
stores areas are likewise clean and orderly. Parts are correctly 
packaged, tagged, segregated, and shelf life properly monitored.
    (5) Quality and safety requirements--security. Company personnel 
receive training in security responsibilities and practice applicable 
procedures during ground and in-flight operations. Compliance with 
provisions of the appropriate standard security program, established by 
the Transportation Security Administration or foreign equivalent, is 
required for all DOD missions.
    (6) Quality and safety requirements--specific equipment 
requirements. Air carriers satisfy DOD equipment and other requirements 
as specified in DOD agreements.
    (7) Quality and safety requirements--oversight of commuter or 
foreign air carriers in code-sharing agreements. Air carriers awarded a 
route under the Passenger Standing Route Order (PSRO) program, the GSA 
City Pair Program, or other DOD program, that includes performance of a 
portion of the route by a commuter or foreign air carrier with which it 
has a code-sharing arrangement, must have a formal procedure in place 
to periodically review and assess the code-sharing air carrier's 
safety, operations, and maintenance programs. The extent of such 
reviews and assessments must be consistent with, and related to, the 
code-sharing air carrier's safety history. These procedures must also 
provide for actual inspections of the foreign code-sharing air carrier 
if the above reviews and assessments indicate questionable safety 
practices.
    (8) Quality and safety requirements--aeromedical transport 
requirements. (i) The degree of oversight is as determined by the CARB 
or higher authority. When an inspection is conducted, DOD medical 
personnel may also participate to assess the ability to provide the 
patient care and any specialty care required by DOD. The CARB's review

[[Page 56783]]

will be limited solely to issues related to flight safety.
    (ii) Portable Electronic Devices (PEDs) used in the provision of 
medical services or treatment on board aircraft are tested for non-
interference with aircraft systems and the results documented to show 
compliance with 14 CFR 91.21 or other applicable CAA regulations. If 
there are no CAA regulations, actual use/inflight testing of the same 
or similar model PED prior to use with DOD patients is the minimum 
requirement.


Sec.  861.5  DOD Commercial Airlift Review Board procedures.

    (a) This section establishes procedures to be used by the DOD when, 
in accordance with references in Sec.  861.1(a) and (b):
    (1) An air carrier is subject to review or other action by the DOD 
Commercial Airlift Review Board, or CARB;
    (2) A warning, suspension, temporary nonuse, or reinstatement 
action is considered or taken against a carrier by the CARB; or
    (3) An issue involving an air carrier is referred by the CARB to 
higher authority for appropriate action.
    (b) These procedures apply to air carriers seeking to provide or 
already providing air transportation services to DOD. It also applies 
to U.S. or foreign air carriers providing operational support services 
to DOD which, on a case-by-case basis and at the discretion of the CARB 
or higher authority, require some level of oversight by DOD.
    (c) An air carrier's sole remedy in the case of a suspension 
decision by the CARB is the appellate process under this part.
    (d) Quality and safety issues relating to air carriers used, or 
proposing to be used, by DOD, per reference (b) must be referred to the 
CARB for appropriate disposition.
    (e) CARB responsibilities. As detailed in the reference in Sec.  
861.1(b), the CARB provides a multifunctional review of the efforts of 
the DOD Air Carrier Survey and Analysis Office and is the first level 
decision authority in DOD on quality and safety issues relating to air 
carriers. Responsibilities include, but are not limited to: the review 
and approval or disapproval of air carriers seeking initial approval to 
provide air transportation service to DOD; the review and approval or 
disapproval of air carriers in the program that do not meet DOD quality 
and safety requirements; the review and approval or disapproval of air 
carriers in the program seeking to provide a class of service different 
from that which they are currently approved; taking action to suspend, 
reinstate, or place into temporary nonuse or extended temporary nonuse, 
DOD approved carriers; taking action, on an as needed basis, to review, 
suspend, reinstate, or place into temporary nonuse or extended 
temporary nonuse, an air carrier providing operational support services 
to DOD; and, referring with recommendations, issues requiring 
resolution or other action by higher authority.
    (f) CARB administrative procedures. (1) Membership. The CARB will 
consist of four voting members appointed by USCINCTRANS from USTRANSCOM 
and its component commands. These members and their alternates will be 
general officers or their civilian equivalent, with experience in the 
operations, maintenance, transportation, or air safety fields. A 
Chairman and alternate will be designated. Nonvoting CARB members will 
be appointed as necessary by USCINCTRANS. A non-voting recorder will 
also be appointed.
    (2) Decisions. Decisions of the CARB will be taken by a majority 
vote of the voting members present, with a minimum of three voting 
members (or their alternates) required to constitute a quorum. In the 
event of a tie, the Chair of the CARB will decide the issue.
    (3) Meetings of the CARB. The CARB may meet either in person or by 
some electronic means. It will be convened by either USCINCTRANS or the 
Chair of the CARB. The meeting date, time, and site of the CARB will be 
determined at the time of the decision to convene the CARB. Minutes of 
CARB meetings will be taken by the recorder, summarized, and preserved 
with all other records relating to the CARB meeting. The recorder will 
ensure the air carrier and appropriate DOD and federal agencies are 
notified of the CARB's decision(s) and reasons therefore. In the event 
of a fatal accident, the CARB shall convene as soon as possible but not 
later than 72 hours after notification by the Chair.
    (g) CARB operating procedures. (1) Placing an air carrier into 
temporary nonuse. (i) In case of a fatal aircraft accident or for other 
good cause, two or more voting members of the CARB may jointly make an 
immediate determination whether to place the air carrier involved into 
a temporary nonuse status pending suspension proceedings. Prior notice 
to the air carrier is not required.
    (ii) The carrier shall be promptly notified of the temporary nonuse 
determination and the basis therefore.
    (iii) Temporary nonuse status terminates automatically if 
suspension proceedings are not commenced, as set out in paragraph 
(g)(2) of this section, within 30 days of inception unless the CARB and 
air carrier mutually agree to extend the temporary nonuse status.
    (2) Suspension of an air carrier. (i) On a recommendation of the 
DOD Air Carrier Survey and Analysis Office or any individual voting 
member of the CARB, the CARB shall consider whether or not to suspend a 
DOD approved air carrier.
    (ii) If the CARB determines that suspension may be appropriate, it 
shall notify the air carrier that suspension action is under 
consideration and of the basis for such consideration. The air carrier 
will be offered a hearing within 15 days of the date of the notice, or 
other such period as granted by the CARB, at which the air carrier may 
be present and may offer evidence. The hearings shall be as informal as 
practicable, consistent with administrative due process. Formal rules 
of evidence do not apply.
    (iii) The types of evidence which may be considered includes, but 
is not limited to:
    (A) Information and analysis provided by the DOD Air Carrier Survey 
and Analysis Office.
    (B) Information submitted by the air carrier.
    (C) Information relating to action that may have been taken by the 
air carrier to:
    (1) Correct the specific deficiencies that led the CARB to consider 
suspension; and
    (2) Preclude recurring similar deficiencies.
    (D) Other matters the CARB deems relevant.
    (iv) The CARB's decisions on the reception or exclusion of evidence 
shall be final.
    (v) Air carriers shall have the burden of proving their suitability 
to safely perform DOD air transportation and/or operational support 
services by clear and convincing evidence.
    (vi) After the conclusion of such hearing, or if no hearing is 
requested and attended by the air carrier within the time specified by 
the CARB, the CARB shall consider the matter and make a final decision 
whether or not to suspend the air carrier or to impose such lesser 
sanctions as appropriate. The air carrier will be notified of the 
CARB's decision.
    (3) Reinstatement. (i) The CARB may consider reinstating a 
suspended carrier on either CARB motion or carrier motion, unless such 
carrier has become ineligible in the interim.
    (ii) The carrier has the burden of proving by clear and convincing 
evidence that reinstatement is warranted. The air carrier must satisfy 
the CARB that the deficiencies, which

[[Page 56784]]

led to suspension, have been corrected and that action has been 
implemented to preclude the recurrence of similar deficiencies.
    (iii) Air carrier evidence in support of reinstatement will be 
provided in a timely manner to the CARB for its review. The CARB may 
independently corroborate the carrier-provided evidence and may, at its 
option, convene a hearing and request the participation of the air 
carrier.
    (4) Appeal of CARB decisions. (i) An air carrier placed in 
suspension by the CARB may administratively appeal this action to 
USCINCTRANS. An appeal, if any, must be filed in writing, with the DOD 
Air Carrier Survey and Analysis Office, and postmarked within 15 
workdays of receipt of notice of the CARB's suspension decision. In the 
sole discretion of USCINCTRANS, and for good cause shown, the 
suspension may be stayed pending action on the appeal.
    (ii) Air carriers shall not be entitled to a de novo hearing or 
personal presentation before the appellate authority.
    (iii) The decision of the appellate authority is final and is not 
subject to further administrative review or appeal.
    (5) Referral of issues to higher authorities. The approval or 
disapproval of an air carrier for use by DOD, the placing of approved 
carriers into temporary nonuse status, and the suspension and 
reinstatement of approved carriers, are all decisions which must be 
made by the CARB. Other matters may be referred by the CARB to 
USCINCTRANS for appropriate action, with or without recommendations by 
the CARB. The CARB will forward for decision, through USCINCTRANS to 
the Under Secretary of Defense (Acquisition, Technology and Logistics) 
(USD(AT&L)), all air carrier use/nonuse recommendations involving 
foreign air carriers other than those providing charter transportation 
or operational support service to the Department of Defense.


Sec.  861.6  DOD review of foreign air carriers.

    Foreign air carriers providing or seeking to provide services to 
DOD shall be subject to review and, if appropriate, approval by DOD. 
Application of the criteria and requirements of this part and the 
degree of oversight to be exercised by DOD, if any, over a foreign air 
carrier depends upon the type of services performed and, in some 
instances, by the quality of oversight exercised by the foreign air 
carrier's CAA. The scope and frequency of the review of any given 
foreign air carrier under this part will be at the discretion of the 
CARB or higher authority.
    (a) Foreign air carriers seeking to provide or providing air 
transportation services under a contract or Military Air Transportation 
Agreement with DOD, or pursuant to another arrangement entered into by, 
or on behalf of, DOD. Foreign air carriers seeking to provide or 
providing air transportation services under a contract or Military Air 
Transportation Agreement with DOD, must meet all requirements of Sec.  
861.4, and be approved by the CARB in accordance with Sec.  861.5. This 
includes foreign air carriers seeking to provide, or providing, airlift 
services to DOD personnel pursuant to an arrangement entered into by 
another federal agency, state agency, foreign government, international 
organization, or other entity or person on behalf of, or for the 
benefit of, DOD, regardless of whether DOD pays for the airlift 
services provided. For purposes of establishing the degree of oversight 
and review to be conducted under the DOD Commercial Air Transportation 
Quality and Safety Review Program, such foreign air carriers are 
considered the same as U.S. carriers. In addition, they must have an 
operating certificate issued by the appropriate CAA using regulations 
which are the substantial equivalent of those found in the U.S. FARs, 
and must maintain such certification throughout the term of the 
contract or agreement. The CAA responsible for exercising oversight of 
the foreign air carrier must meet ICAO standards as determined by ICAO, 
or the FAA under the FAA's International Aviation Safety Assessment 
Program.
    (b) Foreign air carriers providing passenger services under the GSA 
City Pair Program. Foreign air carriers performing any portion of a 
route awarded to a U.S. air carrier under the GSA City Pair Program 
pursuant to a code-sharing agreement with that U.S. air carrier, are 
generally not subject to DOD survey and approval under Sec. Sec.  861.4 
and 861.5. However, DOD will periodically review the performance of 
such foreign carriers. This review may consist of recurring performance 
evaluations, periodic examination of the U.S. code-sharing carrier's 
operational reviews and assessments of the foreign carrier and, where 
appropriate and agreed to by the air carriers concerned and DOD, on-
site surveys of the foreign air carrier. Such carriers must also meet 
the 12 months prior experience requirement of Sec.  861.4(e)(1). The 
CARB or higher authority may prescribe additional review requirements. 
Should circumstances warrant, use of these air carriers by DOD 
passengers on official business may be restricted or prohibited as 
necessary to assure the highest levels of passenger safety.
    (c) Other foreign air carriers carrying individually ticketed DOD 
passengers on official business. Foreign air carriers carrying 
individually ticketed DOD passengers on official business are not 
subject to DOD survey and approval under Sec. Sec.  861.4 and 861.5. 
However, the DOD Air Carrier Survey and Analysis Division may 
periodically review the performance of such carriers. Reviews may 
include voluntary on-site surveys as directed by the CARB or higher 
authority. In the event questions relating to the safety and continued 
use of the carrier arise, the matter may be referred to the CARB for 
appropriate action.
    (d) Foreign air carriers from countries in which the CAA is not in 
compliance with ICAO standards. Unless otherwise authorized, use by DOD 
personnel on official business of foreign air carriers from countries 
in which the CAA is not in compliance with ICAO standards is prohibited 
except for the last leg into and the first leg out of the U.S. on such 
carriers. This includes foreign air carriers performing any portion of 
a route awarded to a U.S. air carrier under the GSA City Pair Program 
pursuant to a code-sharing agreement with that U.S. air carrier.
    (e) On-site surveys. The scope of the on-site survey of a foreign 
air carrier will be at the discretion of the CARB. In the event a 
foreign air carrier denies a request made under this part to conduct an 
on-site survey, the CARB will consider all available information and 
make a use/nonuse recommendation to DOD. If placed in nonuse status by 
DOD, such air carriers will not be used unless, in accordance with the 
reference in Sec.  861.1(b), in the judgment of the appropriate 
Combatant Commander, no acceptable alternative to using the carrier 
exists and the travel is mission essential.
    (f) Foreign carriers providing operational support services to DOD. 
Such carriers are subject to DOD oversight, on a case-by-case basis, to 
the extent directed by the CARB or higher authority.


Sec.  861.7  Disclosure of voluntarily provided safety-related 
information.

    (a) General. In accordance with paragraph (h) of the reference in 
Sec.  861.1(a), DOD may withhold from public disclosure safety-related 
information voluntarily provided to DOD by an air carrier for the 
purposes of this part if DOD determines that--
    (1) The disclosure of the information would, in the future, inhibit 
an air carrier from voluntarily providing such information to DOD or 
another Federal

[[Page 56785]]

agency for the purposes of this part or for other air safety purposes; 
and
    (2) The receipt of such information generally enhances the 
fulfillment of responsibilities under this part or other air safety 
responsibilities involving DOD or another Federal agency.
    (b) Processing requests for disclosure of voluntarily provided 
safety-related information. Requests for public disclosure will be 
administratively processed in accordance with 32 CFR Part 806, Air 
Force Freedom of Information Act Program.
    (c) Disclosure of voluntarily provided safety-related information 
to other agencies. The Department of Defense may, at its discretion, 
disclose voluntarily provided safety-related information submitted 
under this part by an air carrier, to other agencies with safety 
responsibilities. The DOD will provide such information to another 
agency only upon receipt of adequate assurances that it will protect 
the information from public disclosure, and that it will not release 
such information unless specifically authorized.

Pamela D. Fitzgerald,
Air Force Federal Register Liaison Officer.
[FR Doc. 02-22307 Filed 9-4-02; 8:45 am]
BILLING CODE 5001-05-P