Robert Ruiz - MRO WORKSHOP - PANEL 2: Keys to Successful Airline Maintenance Integration in Latin America

1. Presented to:
By:
Date:
Federal
Aviation
Administration
Aviation Safety
Aircraft Maintenance Division,
AFS-300
Maintenance,
Repair and
Overhaul (MRO)
Standardized Audit and
Data Sharing
IBAS – International Brazil Air
Show 2017
Mr. Robert Ruiz,
Manager, Flight Standards Service
International Programs and Policy, FAA
March 30, 2017

2. Federal Aviation
Administration
Aircraft Maintenance Division –
MRO Initiative
Overview/Agenda
March 30, 2017 2
MRO Forecast
Where We Are
Where We Are Going
MRO Audit and Data Sharing
Initiative
Bilateral Aviation Safety
Agreement (BASA)
Maintenance Implementation
Procedures (MIP)

3. Federal Aviation
Administration
March 30, 2017 Aircraft Maintenance Division –
MRO Initiative
3
Source: IFC International
MRO Forecast
By MRO Segment By Global Region
2015 Global MRO Demand

4. Federal Aviation
Administration
March 30, 2017 Aircraft Maintenance Division –
MRO Initiative
4
MRO Forecast (continued)
Source: IFC International, CAPA 2015
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2015 2025
31%
25%
27%
8%
5%
26%
23%
32%
8%
6%
Africa
Middle East
Latin America
Europe
Asia Pacific
North America
#Aircraft
1.6%
5.2%
2.5%
5.3%
5.1%
CAGR
3.4% Avg.
3.8%
10 Year Global Air Transport Fleet Growth

5. Federal Aviation
Administration
March 30, 2015 Aircraft Maintenance Division –
MRO Initiative
5
Source: ICF International, Forecast in 2015 $USD, exclusive of inflation
$7.9
$6.4
$5.2
$3.2
$2.6
$2.2 $2.0
$1.2
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
Asia
Pacific(excl
China)
China Middle East North
America
Latin
America
Easter
Europe(incl
CIS)
Africa Western
Europe
71% 93% 103% 17% 73% 72% 85% 10%
Difference in MRO Spend, 2025 vs 2015 – By Global Region
$USD Billions
Percent
Change:
MRO Forecast (continued)

6. Federal Aviation
Administration
March 30, 2017 Aircraft Maintenance Division –
MRO Initiative
6
Air carriers are utilizing more contract
Maintenance, Repair & Overhaul (MRO) facilities
to satisfy their maintenance requirements.
The number of FAA audits conducted on MROs
has significantly increased in recent years.
Multiple surveillance audits increase potential for
redundancy and inefficiency which have resulted
in little or no enhancement to safety
Where We Are

7. Federal Aviation
Administration
March 30, 2017 Aircraft Maintenance Division –
MRO Initiative
7
Where We Are Going – Policy and Tools
Modify Performance Assessments, as necessary, to:
Develop new policy for
streamlined MRO audits.
Revise Aviation Safety Inspector
training to ensure that new
processes/methodologies and/or
techniques are fully understood.
Full understanding of risk-based
decision making.

8. Federal Aviation
Administration
March 30, 2017 Aircraft Maintenance Division –
MRO Initiative
8
MRO Audit and Data Sharing Initiative
The FAA’s Aircraft Maintenance Division is developing a new auditing
concept for MROs: MRO Audit and Data Sharing Initiative
Goals of this initiative are:
 Develop a process that will reduce the number of duplicative
audits.
 Develop a process for improved data sharing.
 Focused risk-based inspections supported by data, in lieu of
random selection.
 Address Human Factors and Safety Management Systems as
related to these audits.

9. Federal Aviation
Administration
March 30, 2017 9
Outcome
Streamlined and standardized audits Sharing of data
Reduction in the number of audits
Reduction in cost
Reduction in duplication
Enhance Safety
Aircraft Maintenance Division –
MRO Initiative

10. Federal Aviation
Administration
March 30, 2017 Aircraft Maintenance Division –
MRO Initiative
10
 Establish common regulatory acceptance of oversight
standards between regulators for audits.
o (AS 9100 International Aviation Quality Group or
other standard)
 Increase audit efficiency thru standards harmonization.
 Reduce audit burden without compromising safety.
Global Improvement

11. Federal Aviation
Administration
Aircraft Maintenance Division –
MRO Initiative
ICAO High Level Safety Conference (HLSC 2015),
February 2015
March 30, 2017 11
Topic: “… ICAO, States, and industry
initiate discussions on how best to evolve
the surveillance of maintenance
organizations while still fulfilling national
oversight obligations.”
Recommendations:
States evaluate how they may reduce duplicative certification and surveillance of
Approved Maintenance Organizations (AMOs) at a national, regional, and
international level.
States collaborate with ICAO and Industry, to develop an international framework
to facilitate reducing such duplication.
ICAO charter an expert group to coordinate these discussions and develop
recommendations for consideration by the 39th Assembly.

12. Federal Aviation
Administration
Aircraft Maintenance Division –
MRO Initiative
U.S./Brazil Bilateral Aviation Safety Agreement
(BASA)
March 30, 2017 12
The FAA signed a Bilateral Aviation Safety Agreement
(BASA) with Brazil on March 22, 2004.
The BASA is an international executive agreement between
the United States and Brazil.
On May 25 2015, FAA received ANAC Confirmation of MIP
interest to establish a MIP under the provisions of the BASA.

13. Federal Aviation
Administration
How Does the FAA Decide to Start A MIP?
• To be eligible for a MIP, the country must have in place a
competent, independent Aviation Authority (AA).
– Should have a viable aircraft maintenance surveillance and certification
program, including competent personnel capable of finding compliance with
national aircraft maintenance standards, practices, and procedures.
• FAA will:
– Prioritize requests for a MIP based on the FAA’s strategic goals and the results
of a capability assessment of the AA.
– Acquire in-depth knowledge of the AA’s regulatory requirements for
maintenance.
– Compare regulatory requirement and establish similarities and differences.
– Evaluate implementation of its regulatory requirements.

14. Federal Aviation
Administration
March 30, 2017 Aircraft Maintenance Division –
MRO Initiative
14
Maintenance Implementation Procedures (MIP)
The Objective:
 Is based on systems that produce equivalent results,
though processes and procedures may be different.
 Ensure the continuation of the high-level of regulatory
cooperation and harmonization between the United States
and Brazil.

15. Federal Aviation
Administration
March 30, 2017 Aircraft Maintenance Division –
MRO Initiative
15
MIP (continued)
Benefits:
 Enable the reciprocal acceptance of findings of
compliance and approval issued by ANAC and the
FAA.
 Promote a high degree of safety in air transport.
 Reduces redundant regulatory oversight minimize
duplication of effort, increase efficiency.

16. Federal Aviation
Administration
March 30, 2017 Aircraft Maintenance Division –
MRO Initiative
16
MIP Process Global Leadership

17. Federal Aviation
Administration
Project Milestones
March 30, 2017 Aircraft Maintenance Division –
MRO Initiative
17
• Phase 1 NAA System Familiarization
– Completed 12/30/15
– The FAA signed a BASA Executive Agreement with Brazil on March 22, 2004
– On May 25 2015, ANAC Confirmation of MIP interest to establish a MIP under the
provisions of the BASA.
– ANAC submits completed capability assessment on 8/26/2015.
• Phase 2 System Evaluation
– In Progress
– FAA conducted capability assessment at ANAC HQ from 1/18-1/26/2016.
– ANAC conducting capability assessment at FAA HQ from 7/25-7/29/2016.
– Regulation review and FAA/ANAC Joint Assessment, currently in process March 20
thru April 7 2017.
• Phase 3 Development of the MIP
– Not started
• Phase 4 Coordination Process
– Not started

18. Federal Aviation
Administration 18