The SBA concluded that the FAA needs to start over, and try harder to clarify its reasoning and support its assertions with solid data. The SBA suggested a few alternatives that the FAA should consider, such as requiring Part 91 operators who conduct sightseeing flights to report insurance coverage to the local FSDO. That would achieve the FAA’s goal at much lower cost to the operators than the current proposal, the SBA said. The FAA should also take into account regional differences, for example, higher accident rates in Alaska, as well as differences in helicopter and airplane accident rates, rather than analyzing them all together. The SBA concluded that the FAA should conduct additional research and outreach to identify affected small operators, allow the industry to participate more fully in the development of the rule, determine the potential economic impacts of the rule, and identify less-burdensome alternatives.
…Less-Costly Alternatives Are Available, SBA Says
Key Takeaways:
- The Small Business Administration (SBA) advised the FAA to restart its rule-making process, citing a lack of clarity, data, and justification for its assertions.
- The SBA proposed less-burdensome alternatives for the FAA, such as requiring Part 91 sightseeing operators to report insurance coverage to local FSDOs.
- The SBA recommended that the FAA consider regional differences (e.g., Alaska's accident rates) and distinctions between helicopter and airplane accident rates in its analysis.
- The SBA urged the FAA to conduct more research, engage the industry, assess economic impacts, and identify less-burdensome alternatives for future rule development.
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