1-1 CHAPTER 1. GENERAL
1.1 Purpose of This Advisory Circular (AC). This AC provides information and describes one means that would be acceptable to the Administrator for applying for a Title 14 of the Code of Federal Regulations (14 CFR) part 121 or 135 Air Carrier or Operating Certificate.
1.2 Audience. The primary audience for this AC includes persons seeking certification as a part 121 and/or 135 air carrier or operator. The secondary audience includes Federal Aviation Administration (FAA) Flight Standards District Offices (FSDO) and principal inspectors (PI) assigned to certification projects and oversight of certificate holders conducting operations under part 121 and/or part 135.
1.3 Where You Can Find This AC. You can find this AC on the FAA’s website at http://www.faa.gov/regulations_policies/advisory_circulars.
1.4 What This AC Cancels. AC 120-49, Certification of Air Carriers, dated November 23, 1988, is canceled.
1.5 Scope. This AC provides a general overview of the parts 121 and 135 air carrier or operator certification process, the types of Air Carrier and Operating Certificates, and reference materials.
1.6 AC Feedback Form. For your convenience, the AC Feedback Form is the last page of this AC. Note any deficiencies found, clarifications needed, or suggested improvements regarding the contents of this AC on the Feedback Form.
2-1 CHAPTER 2. DETERMINING THE OPERATING RULE
2.1 General. The 14 CFR part the applicant will operate under is determined by the type of operation in combination with the type and size of the aircraft(s) utilized.
2.2 Definitions and Certification Requirements.
2.2.1 Definitions. Title 14 CFR part 110 contains the commonly used definitions related to air carrier and operating certification.
2.2.2 Certification Requirements. Title 14 CFR part 119 establishes the general certification requirements for air carriers and commercial operators. Part 119 contains the following:
1. Information to determine the appropriate operating rules for the kind of operations that are conducted;
2. Common certification requirements for 14 CFR parts 121 and 135
(e.g., operations specifications (OpSpecs) and management personnel); and
3. Miscellaneous safety provisions common to parts 121 and 135
(e.g., wet leasing and emergency operations).
2.3 Certification Determinations, Types of Certificates, and Applicable Rules. An applicant can use the following steps to determine which certificate will apply to their proposed operation.
2.3.1 Step 1: Common Carriage or Noncommon Carriage. The first step in evaluating an application for certification is to determine whether an applicant will be conducting operations in common carriage or noncommon carriage. The applicant should be familiar with these terms:
2.3.1.1 Common Carriage. An applicant is engaged in common carriage if the applicant “holds itself out” to the public (by advertising or other means) to transport persons or property for compensation or hire. There are four elements in defining a common carrier:
A holding out to the public of a willingness to, Transport persons or property, From place to place, and For compensation.
2.3.1.2 Noncommon Carriage. An applicant is engaged in noncommon carriage if they conduct aircraft operations for compensation or hire that do not involve a holding out to the public.
Note: For further information regarding common carriage and noncommon carriage, refer to the current edition of AC 120-12, Private Carriage Versus Common Carriage of Persons or Property, as well as part 110.
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2.3.2 Step 2: Air Carrier Certificate or Operating Certificate (Part 119).
2.3.2.1 Air Carrier Certificate. This certificate is issued to applicants who plan to conduct interstate, foreign, or overseas transportation, or to carry mail.
2.3.2.2 Operating Certificate. This certificate is issued to applicants who plan to conduct intrastate transportation.
2.3.3 Step 3: Operating Rules (Part 121 and/or Part 135). Once the type of certificate has been determined, the next step is to determine the appropriate operating rule and kinds of operation. There are two operating rules that are appropriate for air carriers and commercial operators. An applicant will operate under part 121, part 135, or both, depending on whether the operation is scheduled, and the size and type of aircraft used.
There are five kinds of operations:
1. Domestic (part 121),
2. Flag (part 121),
3. Supplemental (part 121),
4. Commuter (part 135), and
5. On-demand (part 135).
Note: To determine the appropriate operating rule and kind of operation, the next step is to determine if scheduled or nonscheduled operations will be conducted.
2.3.4 Step 4: Scheduled Operations and Nonscheduled Operations.
2.3.4.1 Scheduled Operations. Scheduled operations include passenger operations in which the departure location, departure time, and the arrival location are offered in advance by the certificate holder. Scheduled operations may also carry cargo or mail in addition to passengers. However, an all-cargo operation is defined as a nonscheduled operation.
Note: Scheduled operations do not include public charter operations conducted under 14 CFR part 380.
2.3.4.2 Nonscheduled Operations. Nonscheduled operations include:
Passenger-carrying operations in which the departure time and the departure and arrival locations are specifically negotiated with the customer or the customer’s representative.
All-cargo operations.
2-3 Scheduled passenger operations in aircraft (other than turbojet-powered airplanes) that have nine or fewer passenger seats and a 7,500-pound payload or less that are limited to operating with a frequency of fewer than five round trips a week on at least one route between two or more points according to a published flight schedule.
Passenger operations conducted as a public charter under part 380.
2.3.5 Step 5: Kinds of Scheduled and Nonscheduled Operations.
2.3.5.1 Kinds of Scheduled Operations.
2.3.5.1.1 Domestic (Part 121). Domestic operations are scheduled operations between any points within the 48 contiguous states of the United States, or within any state. For more information, see Chapter 3, paragraph 3.3.1.
2.3.5.1.2 Flag (Part 121). Flag operations are scheduled operations between any points outside the 48 contiguous states. For more information, see Chapter 3, paragraph 3.3.2.
2.3.5.1.3 Commuter (Part 135). Certificate holders with commuter authority have specific limitations on the size and type of aircraft that can be utilized.
A certificate holder who has commuter authority may also conduct on-demand operations. Chapter 6, paragraph 6.2.2 contains more information on part 135 commuter certificate holders.
2.3.5.2 Kinds of Nonscheduled Operations.
2.3.5.2.1 Supplemental (Part 121). Supplemental operations are operations for which the departure time, departure location, and arrival location are specifically negotiated with the customer or the customer’s representative; or all cargo operations. Chapter 3, paragraph 3.3.3 contains more information on part 121 supplemental certificate holders.
2.3.5.2.2 On-Demand (Part 135). Certificate holders with on-demand authority have specific limitations on the size of aircraft that can be utilized. They can also conduct limited scheduled operations. Chapter 6, paragraph 6.2.1 contains more information on part 135 on-demand certificate holders.
Note: Figure 2-1, Air Carrier or Operating Certificate Flowchart, can be used in determining which type of certificate is appropriate.
2-4 Figure 2-1. Air Carrier or Operating Certificate Flowchart Air Commerce Operations Excluded by 14 CFR Part 119, § 119.1(d) & (e) NO Air Transportation Do Items 1 thru 4, and/or 5 below apply to your proposed operations?
1. Interstate or Foreign
2. Persons or Property
3. Common Carriage
4. Compensation or Hire
5. Contract Mail YES Not Applicable to 14 CFR part 121, 125, or 135 YES Air Carrier Certificate is Required § 119.5(a) Direct Air Carrier Operating Certificate is Required § 119.5(b) & (c) NO Common Carriage Involved?
NO Utilize Aircraft with:
1. Less than 20 passenger, and
2. Maximum Payload Capacity of less than 6000 lbs.
§ 119.23(b)(2) 135 YES 14 CFR Part 125 Applies (See AC 125-1) NO Authorized Intrastate Common Carriage 121 135 Domestic Flag Supplemental Commuter On-Demand YES
3-1 CHAPTER 3. PART 121 CERTIFICATION INFORMATION
3.1 General. This chapter contains information on the kind of operations that can be conducted under part 121.
3.2 Determining the Kind of Operation to be Conducted for Part 121. This chart is to assist an applicant in determining what are the requirements for each kind of operation:
domestic, flag, or supplemental. See Figure 3-1 below:
Figure 3-1. Part 121 Domestic, Flag, or Supplemental Operations Flowchart Supplemental Domestic 14 CFR Part 121 Airplanes Turbojet airplanes or Pax seating >9 or Payload >7500 lbs.
Airplanes Pax seating >30 Payload >7500 lbs Flag Only locations within the U.S.
Scheduled Passenger Operations YES YES All Cargo with Payload > 7500 lbs.
YES OR NO NOYES
3.3 Kinds of Operations.
3.3.1 Domestic Operation. A domestic operation is any scheduled operation conducted by any person operating any airplane as described in item 1, and at locations described in item 2.
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1. Airplanes:
a. Turbojet-powered airplanes;
b. Airplanes having a passenger seat configuration of more than nine passenger seats, excluding each crewmember seat; or
c. Airplanes having a payload capacity of more than 7,500 pounds.
2. Locations:
a. Between any points within the 48 contiguous states of the United States or the District of Columbia;
b. Operations solely within the 48 contiguous states of the United States or the District of Columbia;
c. Operations entirely within any state, territory, or possession of the United States; or
d. When specifically authorized by the Administrator, operations between any point within the 48 contiguous states of the United States or the District of Columbia and any specifically authorized point located outside the 48 contiguous states of the United States or the District of Columbia.
3.3.2 Flag Operation. A flag operation is any scheduled operation conducted by any person operating any airplane described in item 1, and at the locations described in item 2.
1. Airplanes:
a. Turbojet-powered airplanes;
b. Airplanes having a configuration of more than nine passenger seats, excluding each crewmember seat; or
c. Airplanes having a payload capacity of more than 7,500 pounds.
2. Locations:
a. Between any point within the State of Alaska or the State of Hawaii or any territory or possession of the United States and any point outside the State of Alaska or the State of Hawaii or any territory or possession of the United States, respectively;
b. Between any point within the 48 contiguous states of the United States or the District of Columbia and any point outside the 48 contiguous states of the United States and the District of Columbia; or
c. Between any point outside the United States and another point outside the United States.
3.3.3 Supplemental Operation. A supplemental operation is any common carriage operation for compensation or hire conducted with any airplane described in item 1 and the type of operation described in item 2.
3-3
1. Airplanes:
a. Airplanes having a passenger seat configuration of more than 30 seats, excluding each crewmember seat;
b. Airplanes having a payload capacity of more than 7,500 pounds;
c. Each propeller-powered airplane having a passenger seat configuration of more than nine seats and fewer than 31 seats, excluding each crewmember seat, that is also used in domestic or flag operations and that is so listed in the operations specifications (OpSpecs) as required by 14 CFR part 119, § 119.49(a)(4) for those operations; or
d. Each turbojet-powered airplane having a passenger seat configuration of one or more and fewer than 31 seats, excluding each crewmember seat, that is also used in domestic or flag operations and that is so listed in the OpSpecs as required by § 119.49(a)(4) for those operations.
2. Types of Operation:
a. Operations for which the departure time, departure location, and arrival location are specifically negotiated with the customer or the customer’s representative;
b. All-cargo operations; or
c. Passenger-carrying public charter operations conducted under 14 CFR part 380.
4-1 CHAPTER 4. PART 121 CERTIFICATION REQUIREMENTS
4.1 General. This chapter contains information on the certification requirements for 14 CFR part 121.
4.2 Preapplication Statement of Intent (PASI). The applicant submits an FAA Form 8400-6, Pre-application Statement of Intent, to the appropriate Flight Standards District Office (FSDO) (see Appendix A for the FAA’s website address to locate the nearest FSDO). The FSDO will place the form in the Certification Service Oversight Process (CSOP). The CSOP allows the FAA time to make a decision to move the application forward based on assurance that the FSDO has sufficient staff to support the certification process. Once the application is approved and moved forward to the FSDO, the project will be staffed and the applicant will be notified that they may submit a formal application letter (see Appendix A for a list of items that must be included in the formal application letter). That letter will request a tentative date for a formal application meeting. Upon submission of the request letter, the certification process will begin in earnest.
4.3 Certification Process Briefing and Safety Management System (SMS) Workshop.
The first activity will consist of a certification process briefing and an SMS workshop where the applicant will develop a Preliminary Risk Assessment (PRA) process with the help of the Certification Project Team (CPT). During this briefing the applicant will be informed of the documents, manuals, and programs that must be submitted as the process moves forward.
Note: The current edition of AC 120-92, Safety Management Systems for Aviation Service Providers, contains information on regulatory requirements, guidance, and methods of developing and implementing an SMS.
4.4 Required Documentation. The applicant will submit the items in Table 4-1, Part 121 Preapplication Checklist, Section 1, through the FAA Safety Assurance System (SAS) External Portal at least 60 calendar-days prior to the formal application meeting.
Note: This checklist is primarily for the use of the applicant. The “Verified by” and “Date” columns are for the use of the applicant at their discretion.
Further explanation of these requirements will be provided at the briefing and is available on the FAA website, www.faa.gov > Licenses & Certificates > Airline Certification > 14 CFR Part 121 Air Carrier Certification.
4.5 Part 121 Preapplication Checklist (PAC). Table 4-1 below lists the documentation that should be submitted with the formal application.
4-2 Table 4-1. Part 121 Preapplication Checklist Section 1 Documentation Required at Formal Application Meeting Document/Manual: Verified by: Date:
Formal Application Letter Preapplication Statement of Intent (PASI) (FAA Form 8400-6) Completed Proposed Schedule of Events (SOE) List of Proposed Operations Specifications (OpSpecs) Required Management Personnel Résumé, Qualification Summary (QS), and Quality Audit Forms (QAF) Management Position: Verified by: Date:
Director of Maintenance QS QAF Director of Operations QS QAF Chief Pilot QS QAF Chief Inspector QS QAF Director of Safety QS QAF Applicant’s Accountable Executive (14 CFR part 5) Designation Letter Section 2 Documentation Required at Formal Application Meeting Document/Manual: Verified by: Date:
Updated PASI (FAA Form 8400-6) CPM/CTL Acceptance of PRA Process Evidence of Economic Authority Request Letters of Incorporation, etc.
Proposed Draft OpSpecs from WebOPSS Self-Audited Element Design Data Collection Tools (ED DCT) NOTE: The ED DCT version must be current within 90 calendar-days of this submission.
Initial Compliance Statement (to include 14 CFR parts 5, 117, 119, & 121). The Compliance Statement will be revised as manual references are changed throughout the certification process. This should be a living document after certification.
Company Manuals and Programs Initial Cadre Check Airman (ICCA) Training Plan Facility Lease Agreements or Proof of Ownership Outsourcing Contractual Agreements Aircraft Lease or Proof of Ownership Current Aircraft Equipment List Aircraft Interior Configuration Document Aircraft Information Form Status of Drug and Alcohol Program Status of Security Program Status of Environmental Assessment (EA) Status of Hazardous Materials (Hazmat) Program and Hazmat Training Program
5-1 CHAPTER 5. PART 121 CERTIFICATION PROCESS
5.1 General. This chapter provides information on the phases of the certification process for 14 CFR part 121 applicants. The FAA utilizes a phase and gate system for certification projects. There are five phases and three gates in the certification process. All items of a particular phase(s) must be completed prior to proceeding past a gate.
5.2 Phase 1: Preapplication. The applicant will send their Preapplication Statement of Intent (PASI) (FAA Form 8400-6, Preapplication Statement of Intent) to the FAA through the Safety Assurance System (SAS) External Portal. Upon notification of a pending PASI, the Flight Standards Office (FSO) will ensure that there is sufficient information to further process the preapplication. The primary source of written communication will be conducted through the SAS External Portal.
Note: The SAS External Portal is a free, secure, web-based application that allows for more direct, streamlined, and timely communication between certificate holders and applicants and the FAA. Some of the SAS External Portal benefits include the ability for certificate holders and applicants to review and submit information electronically, and to see where documents are in the FAA review process. Applicants can sign up for access to the SAS External Portal at https://sas.faa.gov. Appendix A of this AC contains more information on signing up for access and using the SAS External Portal.
5.3 Phase 2: Formal Application. A formal application meeting is tentatively scheduled after the FAA receives all submissions required by the Preapplication Checklist (PAC).
The Certification Project Team (CPT) reviews the applicant’s PAC submissions for completeness, accuracy, and regulatory compliance before confirming the formal application meeting date. During the formal application meeting, the applicant’s management personnel must demonstrate knowledge of their air carrier’s system design.
Note: Phase 2 ends when the CPT accepts the formal application package and all Phase 2 Gate requirements are met.
5.4 Phase 3: Design Assessment (DA). The CPT evaluates the design of the applicant’s operating systems to ensure their compliance with regulations and safety standards, including the obligation to provide service at the highest possible degree of safety in the public interest. This phase uses appropriate SAS Data Collection Tools (DCT) to collect data to be used to determine if the air carrier’s operational system design and Safety Risk Management (SRM) process meet regulatory requirements.
Note: Phase 3 ends when all programs have been accepted or approved, and all Phase 3 Gate requirements have been met.
5.5 Phase 4: Performance Assessment (PA). FAA aviation safety inspectors (ASI) use appropriate DCTs during this phase to collect data to be used to determine if the applicant’s systems are performing as intended and producing the desired results. This phase requires the operation of an aircraft to aid in the assessment of the applicant’s system design. Proving tests begin only after all Phase 4 Gate requirements are met.
5-2 Note: Phase 4 ends after the successful completion of the proving tests.
5.6 Phase 5: Administrative Functions. This phase provides for completion of all administrative functions (e.g., issuance of the Air Carrier or Operating Certificate and operations specifications (OpSpecs), and completion of certification reports and Program Tracking and Reporting Subsystem (PTRS) reporting requirements).