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 an FAA rule to expand Safety Management Systems (SMS) requirements to over 2,600 smaller aviation operators and manufacturers, a measure intended to proactively enhance safety.
Affected small carriers and manufacturers are significantly concerned about the rule's feasibility, arguing that compliance costs are underestimated and the requirements are not sufficiently scalable for diverse, smaller operations.
Critics also question the FAA's capacity and staffing to manage the increased workload for reviewing and approving new SMS implementations, warning of potential oversight issues and unrealistic compliance 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.