White House Reviewing FAA Safety Rule Affecting Over 2,600 Companies

An FAA rule affecting smaller operators that has received significant pushback due to cost and implementation concerns is now under review at OMB.

John Gallagher

Wednesday, February 21, 2024 at 02:30 PM ET

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The proposed rule is expected to affect charter, commuter and air tour operators, and aircraft manufacturers. [Photo: Vacclav/Shutterstock]

Key Takeaways:

The White House is reviewing a new FAA rule that extends Safety Management Systems (SMS) requirements, previously for large airlines, to over 2,600 small charter, commuter, air tour operators, and aircraft manufacturers.
Many affected small carriers and manufacturers express significant concerns about the rule's high compliance costs, implementation feasibility, and the FAA's capacity to manage the increased workload.
While the NTSB supports the rule's safety goals, it agrees with industry stakeholders that the FAA needs to provide clearer, scalable guidance for smaller operators and address underestimated compliance costs and tight deadlines.

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The White House has started reviewing an FAA safety rule affecting over 2,600 small carriers and manufacturers, many of whom have significant concerns about costs and their ability to actually comply with it.

The Safety Management Systems (SMS) rule, received at the Office of Management and Budget (OMB) last week, requires charter, commuter and air tour operators, and aircraft manufacturers to install an SMS—a requirement that currently applies only to large airlines, cargo, and regional carriers.