EASA Safety Management System (SMS) Update
We receive regular requests regarding Safety Management System (SMS) implementation from domestic FAA repair stations with EASA approval granted via the EU/US bilateral agreement. We suspect that this will continue, and greatly increase, based on the upcoming deadline to implement SMS for US repair stations on December 31, 2025 (as published in FAA Information for Operators (InFO) 24007).
Don’t Delay SMS, the deadline is quickly approaching
The implementation of an FAA accepted SMS on a short timeframe isn’t easy, so we encourage all approximately 1000 US EASA repair stations to get going now, if you haven’t already! The recent developments under the current presidential administration are adding additional complexity and fueling even more questions. Will the Trump administration change this requirement? Will there be an extension to the deadline? Will a regulatory “freeze” void this requirement? Will waiting to implement an SMS system be worthwhile?
Don’t stop SMS implementation, here’s why:
Annex 2 of the Bilateral Agreement (the vehicle allowing for “easy” EASA approval for US-based FAA repair stations) has been changed to include an SMS system as a special condition (i.e. something a US repair station must do in addition to FAA requirements). A temporary freeze on regulatory agencies (like the FAA) will not change the decision of the Bilateral Oversight Board (BOB) or formally “stop” this change.
SMS Isn’t Going Away
The entire international community, led by the International Civil Aviation Organization (ICAO), has created standards for SMS that are not going away. When applying for and receiving FAA acceptance of your SMS under the “voluntary” FAA program, you’re complying with 14CFR Part 5 and the ICAO requirements, which have been incorporated into the FAA rule. Guidance under AC120-92D “Safety Management Systems for Aviation Service Providers” states:
“This AC may also be used by aviation organizations interested in receiving Federal
Aviation Administration (FAA) acknowledgement of their voluntary development an
implementation of an SMS that meets part 5 requirements. Additionally, part 5 provides
organizations with a method to meet the International Civil Aviation Organization (ICAO)
Annex 19, Safety Management, framework for an SMS “acceptable to the State.”
Additional pressure will continue to be applied to US organizations to implement SMS, if not from EASA, eventually from the FAA and DOT itself and other international civil aviation authorities. Even if revised rules remove SMS requirements for your organization, if you wish to participate in the international market, anywhere, chances are that you will need an SMS program anyway. The FAA voluntary SMS program is the best vehicle to demonstrate compliance with these international standards.
Regulatory Freeze – Problems and Recommendations
We believe that the current regulatory freeze will cause a delay in issuing the new Maintenance Annex Guidance (MAG). The MAG will formally roll out the SMS requirement and the method of compliance for EASA repair stations in the United States. Without this guidance, there is essentially no method to drive the SMS requirement forward. Adding to the complexity, FAA inspectors still have no internal guidance for evaluating SMS programs for FAA repair stations, even though information for Part 145 repair stations has been added to AC 120-92D.
We hope that these facts will result in an extended timeline to implement SMS for US repair stations. However, history tells us that EASA is not keen to be flexible in these circumstances. Increased tensions elsewhere will no doubt add to this “punitive” stance by the Europeans, as well. We do not recommend betting on a deadline extension, even if one is so obviously needed.
Worst Case Scenario – Bilateral Breakdown
The worst case is that tensions between the US and EU continue and affect the continuation of bilateral agreement itself. In addition to the SMS issue, more importantly (and impactful to EU member states), is a new US rule that requires Drug and Alcohol testing for non-US repair stations. This has historically been a “line in the sand” for EASA that the US dare not cross…and the USA recently did.
Ideally, negotiations would “wipe away” SMS requirements in exchange for removing this drug and alcohol testing rule. Both have far-reaching consequences neither party expected, despite the valiant efforts of trade organizations to educate lawmakers on the consequences of these actions.
In this environment, we believe it’s possible that the bilateral agreement falls apart, which is, by far, the worst case scenario. Without it, US repair stations will need to engage EASA directly, without the FAA, to remain approved by EASA. The cost of compliance will skyrocket exponentially – and you’ll still need SMS!
Solutions
Other than continuing with SMS implementation, the best thing you can do is engage your lawmakers to do what’s necessary to avoid a breakdown of the US/EU bilateral agreement. While no one appreciates feeling “walked on” by an agency like EASA regarding SMS, we must acknowledge the fact that the Europeans expect a different system to demonstrate compliance and perhaps fail to see value in the bilateral agreement.
Engage Congress and Trade Associations
Several trade associations engage with lawmakers, the FAA, and EASA in a meaningful way to drive this important message. The most powerful tool is the Aeronautical Repair Station Association’s (ARSA) Legislative Day , just one part of the association’s Annual Conference. During this event, regular association members walk Capitol Hill and meet directly with their congressional representatives in the House and Senate. This is a chance to discuss issues that affect your business and voice your needs to regulatory agencies. Tym’s is proud to sponsor this year’s ARSA Conference. More information can be found on the ARSA website:
https://arsa.org/news-media/events/arsa-conference/#EventInfo