Polaris Aero broadly supports the implementation of Safety Management Systems throughout the aviation industry, including aircraft operators (Parts 91, 121, and 135), FBOs, and MROs. The recent publishing of the Final Rule (Docket No. FAA-2021-0419) which amends 14 CFR Part 5 by the FAA on April 26, 2024, marks an important milestone in requiring and standardizing SMS for Part 135 charter operators, Part 91.147 air tour operators, and Part 21 Type Certificate/Product Certificate holders. The rule takes effect on May 28, 2024. Timelines and deadlines associated with implementation of SMS by these entities are described in the final rule and will be highlighted below.

Earlier this year, Polaris Aero submitted a public comment on the NPRM when the draft of this rule was first released. Key points of the comment, and the FAA’s response with the Final Rule are below:

1. Polaris Comment: On the proposed verbiage change from “certificate holder” to “persons” throughout the rule, we recommended revising the verbiage of “persons” to be more appropriate with the broad applicability of this rule (i.e., use a term such as organization, entity, etc.). It is the responsibility of the appropriate entities to comply with the rule, not a singular individual.

   Final Rule Response: The verbiage change from “certificate holder” to “persons” has been maintained; our recommendation was not adopted. 

2.  Polaris Comment: On the proposed addition of the concept of “interfacing persons”, we recommended the scope of “interfacing persons” be defined more clearly, and that the requirements to engage with “interfacing persons” be clarified. 

   Final Rule Response: In the final rule, “interfacing persons” has been clarified to mean “those that contribute to the safety of the certificate or LOA holder’s aviation-related products or services.” Also in the final rule, the FAA maintains that if an organization required to have SMS under Part 5 identifies a hazard related to an “interfacing persons”, “the person must provide notice of the hazard to any interfacing person that, to the best of the person's knowledge, could address the hazard or mitigate the risk.”

3. Polaris Comment: On the proposed provision that the Safety Policy now includes a code of ethics which specifies “safety as the highest priority of the organization”, we recommended loosening this verbiage as to allow for an entity to determine how to specify safety as a value in their organization. 

   Final Rule Response: The FAA maintains that any ‘persons’ who must comply with Part 5 have a safety policy that includes “a code of ethics that is applicable to all employees, including management personnel and officers, which clarifies that safety is the organization's highest priority.”

4. Polaris Comment: On the topic of alternate means of compliance (AMOC), we recommended the FAA consider allowing for a temporary or perpetual AMOC to the rule such as achieving IS-BAO Stage III compliance through IBAC.

   Final Rule Response: An alternative means of compliance with the rule will not be accepted. 

Though several of our recommendations were not adopted, there were significant updates to the rule following the NPRM comment process. A summary of the notable changes between the NPRM and the Final Rule, relative to our primary audience of aircraft operators, FBOs, and MROs, are below:

• The “organizational system description” (formerly known as “system description") is now ONLY required for certain Part 21 certificate holders, now excluding Parts 135 and 91.147.
• Existing Part 135 and 91.147 operators must be in compliance with this rule within 36 months of the effective date of this rule. Therefore, the compliance deadline is May 28^th, 2027.  
  • a.  There are 13 exceptions for single-pilot operators; references can be found in section 5.9(e).
• Existing Part 135 and 91.147 operators must submit a “declaration of compliance” by May 28^th, 2027, stating that the organization has “developed and implemented an SMS meeting applicable requirements of Part 5.”
• Oversight of a Part 135 and Part 91.137 operators’ SMS will be maintained by the FAA, as the FAA will assess an organization’s compliance with Part 5 during routine surveillance. The rule requires that an organization make their SMS processes and procedures available to the FAA; revisions to the SMS based on regulatory requirements would warrant an update/notification to the FAA.
• As previously mentioned, the definition of interfacing persons has been modified, and is now defined as “those that contribute to the safety of the certificate or LOA holder’s aviation-related products or service”. Additionally, there is a new requirement for any organization which received a hazard identification from an interfacing person to investigate the hazard.

Polaris Aero’s VOCUS suite of products – including our SMS, FlightRisk, GroundRisk applications – have been designed in accordance with ICAO’s Annex 19, Appendix II SMS Framework. As the FAA’s State Safety Program is derived from this framework, so is 14 CFR Part 5. Therefore, our tools support and help facilitate an operator’s compliance with this mandate.