6-1 CHAPTER 6. OPERATIONAL CHANGES
6.1 Scope and Contents. This chapter outlines changes to your operation which will require that you inform, or receive the approval of, the FAA prior to implementation.
6.2 Change of Ownership.
6.2.1 Certificate Transfer. A 14 CFR part 125 operating certificate cannot be transferred from one person to another. Upon change of ownership, the FAA will suspend the operating certificate under the provisions of part 125, § 125.29. A determination will be made that the new owner’s operation meets the certification requirements of part 125.
6.2.2 Coordination Prior to Ownership Change. Purchasers of a company holding a part 125 operating certificate may avoid having the company’s operations interrupted through coordination with the Flight Standards District Office (FSDO) that issued the certificate prior to the transfer of ownership.
6.2.3 Certification Process and Requirements. The new purchaser may not have to complete all steps of the certification process if the FAA determines that no significant changes to the basis for original certification of the company or its operations under part 125 will occur as a result of the transfer of ownership. However, the jurisdictional FSDO may require the new owner to meet some or all of the requirements for a new certification, depending on the degree of change that occurs within the company as a result of new ownership. If significant changes occur as the result of a change of ownership, the jurisdictional FSDO will decide, based on those changes, what steps of the certification process will have to be completed by the new owners prior to part 125 operations.
6.3 Voluntary Surrender of Certificate and Operations Specifications (OpSpecs).
6.3.1 Cancellation Requests. Certificates and OpSpecs which are voluntarily surrendered for cancellation should be accepted. The certificate must be accompanied by a written request from the operator stating the reason for cancellation. The request must be signed by either a person authorized to act for the company, or by the owner. This request may not be conditional.
6.3.2 Lost or Destroyed Certificates and OpSpecs. If the operating certificate or OpSpecs have been lost or destroyed, a statement by the certificate holder to this effect should be included in the written request for cancellation.
6.4 Change of Business Name or Address.
6.4.1 Amendment Application. A part 125 operator may apply to amend either the operating certificate or the OpSpecs. The FAA may also amend the operating certificate or the OpSpec as the result of actions taken under Title 49 of the United States Code (49 U.S.C.) § 44709 and 14 CFR part 13.
6.4.2 Applications for Name or Address Changes. If the certificate holder wishes to change the legal name on a certificate or change the address of its principal business office or its
6-2 principal operations base, the operator must apply to amend the existing operating certificate. The application will be in letter form to the certificate-holding district office (CHDO). All supporting documents should accompany the request for amendment.
Note: Address changes of the principal business office, operations base and/or maintenance base must be reported, in writing, to the FAA district office, at least 30 calendar-days in advance of the change (refer to § 125.47). This change may necessitate an inspection by district office personnel to assure that the new facilities meet the requirements of part 125.
6.4.3 Reissued Certificates. The certificate will be reissued with the proper changes; will keep the original date of issuance, and will show the amended date of issuance.
6.4.4 Amendment Authority and Requirements. Section 125.35 provides the authority and requirements for the amendment of OpSpecs.
6.5 Change of Management Personnel.
6.5.1 Notification of Management Change. The certificate holder is required to notify the jurisdictional FSDO of any change in management personnel assignments within 10 calendar-days (refer to § 125.25(c)). These changes will be reviewed to determine that any new personnel have not been previously employed in any of the situations described in § 125.27(b)(2).
6.5.2 Required Documents. The notification, to the jurisdictional FSDO, should be made by letter and accompanied by a proposed revision to the Policy and Procedures Manual (PPM). The applicable OpSpecs must be updated with the management personnel changes.
6.6 Amendments to OpSpecs.
6.6.1 Amendment Initiation. It may, at times, become necessary to amend your OpSpecs due to changes in equipment, personnel, or facilities. The amendments may be initiated by you or the FAA.
6.6.2 Amendment Requests. An operator may, in accordance with 14 CFR part 119, § 119.51, apply for an amendment to its OpSpecs by submitting a request in writing to the appropriate FAA office. The certificate holder or operator’s request should include: a formal request for the desired changes, an explanation of the reasons for those changes, and any supporting information. In accordance with § 119.51, the certificate holder or operator must file the application for amendment at least 15 calendar-days (the FSDO may agree to a shorter period) before the proposed effective date of the amendment.
6.6.2.1 If the application is incomplete the FAA should inform the applicant that the application is not acceptable in its present form but will be considered upon the receipt of additional, specified supporting documents and/or information.
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6.6.2.2 The FAA may determine that the application is not acceptable, because the certificate holder or operator’s request does not provide for an adequate level of safety in air transportation or air commerce; it would not be in the best interest of the public; or it is in conflict with FAA policy or 14 CFR. In such a case, the applicant should be informed, in writing, that the application is unacceptable and include a statement explaining why it is not acceptable.
6.6.3 Accepted Amendments. If the FAA determines that an amendment to the certificate holder or operator’s OpSpecs is justified, the FAA should amend the OpSpecs. In the case of a change in a certificate holder or operator’s operating environment or when the FAA has specific safety concerns, the following procedures apply:
6.6.3.1 In some cases the FAA may decide to amend a certificate holder or operator’s OpSpecs due to a change in the operator’s operational environment. For example, the FAA may create a new OpSpecs paragraph to ensure uniform compliance with a certain aspect of 14 CFR. In such cases, the principal operations inspector (POI) may initiate and amend an operator’s OpSpecs due to the change, without the operator having to apply for the change. Once the operator has demonstrated compliance with all appropriate parts of 14 CFR and operational and airworthiness requirements, the OpSpecs may be issued.
6.6.3.2 Section 119.51 provides the authority for the FAA to unilaterally amend a certificate holder or operator’s OpSpecs when the FAA has determined that safety in air commerce and the public interest necessitates such an amendment. When amending a certificate holder or operator’s OpSpecs, the FAA is required to notify the certificate holder or operator in writing and then allow a minimum of 7 calendar-days for comments regarding the proposal.
The 7-calendar-day period provides the certificate holder or operator with an opportunity to submit written information, views, and arguments on the proposal. After reviewing the comments, the FAA either rescinds or adopts the amendment. If the FAA decides to amend the OpSpecs, the final amended OpSpecs should have an effective date of not less than 30 calendar-days after receipt by the operator. Examples of the types of FAA-initiated amendments due to safety concerns are as follows:
6.6.3.2.1 The FAA will propose to amend a certificate holder or operator’s OpSpecs when it has determined that the certificate holder or operator’s operating environment or its operational capability is no longer consistent with the operating authorizations, conditions, and limitations contained in its OpSpecs.
Examples of such cases are when the certificate holder or operator:
1. Terminates operations with a specific make/model/series (M/M/S) of airplane that is authorized in its OpSpecs.
2. Has a series of accidents or incidents involving a particular type of operation (such as low visibility takeoffs and/or landings at a time when the OpSpecs authorize lower than standard weather minimums).
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3. Terminates a particular type or kind of operation or Area of Operation (such as when the operator no longer conducts North Atlantic High Level Airspace (NAT HLA) operations).
6.6.3.2.2 The FAA also amends a certificate holder or operator’s OpSpecs when the standard automated OpSpecs have been revised on a national basis and Washington headquarters (HQ) has requested that PIs amend all, or some of their operator’s OpSpecs. In this case, the OpSpecs should be amended in accordance with guidelines and procedures that have been established by Washington HQ.
6.7 Certificate Holder or Operator Appeal Rights.
6.7.1 OpSpec Amendment Appeal Rights. In all situations involving OpSpec amendments or FAA-initiated, non-emergency amendments, a certificate holder or operator has certain appeal rights. These appeal rights are provided in § 119.51, and are exercised according to the way in which the amendment was initiated, as follows:
6.7.1.1 If the FAA has determined that a certificate holder or operator’s request for an amendment to its OpSpecs is unacceptable, the operator may, within 30 calendar-days after receipt of the CHDO’s notice of disapproval, petition the Director of Flight Standards Service (AFS-1) to reconsider the CHDO’s refusal to amend the OpSpecs.
6.7.1.2 During the course of the reconsideration time period, no amendments to the OpSpec paragraph(s) will be made. A petition made by a certificate holder or operator more than 30 calendar-days after receiving the notice of disapproval will not be considered by FAA. If AFS-1 determines that an amendment to a certificate holder or operator’s OpSpecs is justified, the appropriate regional Flight Standards division (RFSD) office will be notified and instructed to amend the OpSpecs either as requested by the certificate holder or operator or as amended by FAA. If AFS-1 determines, after considering the certificate holder or operator’s petition, that an amendment is not appropriate, the operator and the RFSD will be notified accordingly.
Note: If AFS-1 denies the appeal, 14 CFR does not provide any additional appeal rights for the operator.
6.8 Surrender of OpSpecs.
6.8.1 Operating Environment Changes. Upon a change in its operating environment, a certificate holder or operator should relinquish the appropriate paragraphs of its OpSpecs for which it no longer meets the requirements of the authorization. If the certificate holder ceases operations, it must surrender its operating certificate and all its OpSpecs.
PIs are responsible for updating the Web-based Operations Safety System (WebOPSS) of the certificate holder or operator’s certificate status and date of change in the operating environment in WebOPSS, as applicable.
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6.8.2 OpSpecs Authorization Criteria. Criteria to hold a particular OpSpecs authorization is no less than that necessary for its original issuance. For example, if a certificate holder or operator was issued an authorization to conduct operations in areas of magnetic unreliability (AMU) airspace, but no longer has airplanes equipped to conduct that kind of operation, the certificate holder or operator must surrender the AMU authorization. In addition, the following situations also apply:
6.8.2.1 If a certificate holder or operator ceases all operations and is no longer equipped, or able to conduct any kind of operation, the CHDO shall request that the certificate holder or operator voluntarily surrender all of the OpSpecs associated with the secession of operations associated with the specific OpSpecs. Depending upon the circumstances, the CHDO may also request that the certificate holder or operator voluntarily surrender their operating certificate.
6.8.2.2 If an operator operates seasonally and is equipped to resume operations during the appropriate season, that operator is not required to surrender OpSpecs during their inactive season.
6.8.2.3 If an operator does not meet the requirement to hold an OpSpec paragraph, but refuses to surrender the paragraph, the POI shall amend the OpSpec as discussed in paragraph 6.6. If safety in air commerce is affected, then an emergency amendment is appropriate.
6.8.2.4 If a certificate holder or operator voluntarily surrenders a part of its OpSpecs, the principal inspector (PI) must archive the affected OpSpecs in WebOPSS and reissue A004, Summary of Special Authorizations and Limitations. If a certificate holder or operator surrenders its operating certificate, the PI must change the certificate status to “Voluntary Surrender” by editing the operator details in WebOPSS.
6.9 Revisions to Company Manuals.
6.9.1 Revising Policies and Procedures. You may amend your manuals and incorporate new or revised policies and procedures. When making these revisions, you should:
1. Assure that they comply with the applicable provisions of the CFR.
2. Submit the revision to the FAA district office for acceptance or approval prior to the planned implementation.
6.9.2 Revisions for Safety and CFR Compliance. The FAA may request a revision to any part of the manual when such revision is in the interest of safety, or when the manual does not meet the requirements of the applicable CFR.
6.9.3 Proposal Submission. Proposed amendments/revisions should be submitted to the FAA district offices for acceptance or approval normally 60 calendar-days prior to the operator’s intended use. The proposal will be handled in the same manner as the original
6-6 manual. If the revision/amendment is to a portion of the manual which must be approved
(i.e., the airplane inspection program, refer to § 125.73(n)), the procedures may not be incorporated in the manual for use until approval has been granted.
6.9.4 Currency of Manual. It should be noted that you are required to keep your manual current (refer to § 125.71(a)). Thus, if you change procedures and do not revise or amend your manual prior to initiating the procedures, you have not acted in accordance with part 125.
6.10 Changes to Your Airplane Fleet.
6.10.1 Added or Removed Airplanes. The addition or deletion of airplanes from your fleet will require changes to your OpSpecs.
6.10.2 Different Make and Type or Model Airplane. Additions of a different make and type or model of airplane to your fleet may also result in a requirement for:
1. Crewmember testing (refer to §§ 125.287 and 125.289).
2. Revisions to your inspection program (refer to §§ 125.71(a) and 125.73(n)).
3. An emergency evacuation demonstration (refer to § 125.189 and part 125 appendix B).
6.10.3 Operation of New Airplane. A new airplane, added to your fleet, may not be operated under part 125 until the above requirements, and any other applicable requirements, are met.
6.11 Changes to Airplane Passenger Capacity or Interior Configuration. An emergency evacuation demonstration will be necessary if you increase the passenger capacity, of your airplane, by more than 5 percent or make a major change to the interior configuration that will affect the emergency evacuation of passengers. This demonstration must be completed satisfactorily before the airplane is operated under part 125 (refer to § 125.189(a)(2)).
6.12 Revisions to Minimum Equipment Lists (MEL). If you want to change your approved MEL, you should:
1. Notify and consult with the FSDO regarding your proposed revision.
2. Modify only those pages which will contain the revised portions.
3. Submit your proposed revision(s) to the FSDO.
4. Not use the proposed revision, or insert it into any document used by flightcrew members, until it is approved by the FSDO.
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6.13 Disposition of OpSpecs.
6.13.1 Principal Operations Base. A copy of the OpSpecs must be maintained at the principal operations base (refer to § 125.41).
6.13.2 Company Manual. You can include your OpSpecs in your manual or pertinent excerpts of your OpSpecs. If you elect to include only pertinent excerpts in your manual, they must be referenced in your manual in such a manner that they (the OpSpecs) retain their identity as OpSpecs (refer to § 125.43(b)). In addition when OpSpecs information is incorporated into your manual, the text will clearly identify each excerpt as part of the OpSpec and state that compliance with each OpSpec is mandatory.
Note: You can include your entire OpSpecs as a separate section in your manual, and reference pertinent excerpts of your OpSpecs, in the appropriate sections of your manual, at your discretion.
6.13.3 Employees. Each employee will be informed of the provisions of the OpSpecs that apply to his/her duties and responsibilities (refer to § 125.43(a)).
7-1 CHAPTER 7. DEVELOPMENT OF A COMPANY MANUAL
7.1 Scope and Contents.
7.1.1 Guidelines for Manual Development. This chapter provides general guidelines for the development of a Policy and Procedures Manual (PPM) required by 14 CFR part 125, § 125.71, additional information can be found on the FAA’s Web site at http://fsims.faa.gov.
7.1.2 General Requirements. Section 125.71 requires that a part 125 air operator prepare and keep a current manual which describes the operator’s procedures and policies. The manual is for use by all the operator’s personnel and also indicates to the FAA how the operator intends to conduct business. The manual’s complexity depends upon the complexity of the operation.
7.1.3 Information Provided in the Manual. The manual must contain the specific information required by § 125.73. However, any additional information may be incorporated at the discretion of the operator.
7.1.3.1 The manual does not need to be a single volume. The applicant may use several volumes as long as they provide the necessary information.
7.1.3.2 Advisory circulars (AC), preambles to regulations, and other guidance material may be used to assist the applicant in developing a manual. The applicant should use caution when incorporating the text of these documents into the manual since they are advisory in nature. They may not meet the exact needs of the regulation. Under no circumstances may a manual simply reference an advisory document. It may, however, reference technical documents, such as an approved Airplane Flight Manual (AFM).
7.1.3.3 Each significant term used in the manual should be defined. The definitions must reflect their intended use and may include acronyms or abbreviations unique to the manual or the applicant’s operation.
7.2 Manual Requirements. The FAA will review the provisions of this manual and subsequent revisions and accept or approve them, as applicable, prior to their use. The requirements of part 125 regarding the PPM are:
7.2.1 Employee Personnel. Employee personnel (flight, ground, and maintenance personnel):
1. Must use the manual while conducting company operations (refer to § 125.71(a)).
2. Will be provided a copy of the manual or pertinent portions of the manual, including changes and additions (ground operations and maintenance personnel) (refer to § 125.71(d)).
3. Will be furnished a copy of the manual or pertinent portions of the manual, including changes and additions (flightcrew members) (refer to § 125.71(d)).
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4. If furnished a copy, will keep it up-to-date with the changes and additions furnished to them (refer to § 125.71(e)).
7.2.2 Disposition of Other Copies.
7.2.2.1 One copy will be maintained at the principal operations base (refer to § 125.71(b)).
7.2.2.2 One copy will be furnished to the Flight Standards District Office (FSDO) charged with the overall inspection of its operations (refer to § 125.71(d)(2)).
7.2.2.3 If a certificate holder conducts airplane inspections or maintenance at specified stations where it keeps the approved inspection program manual, it is not required to carry the manual aboard the airplane en route to those stations (refer to § 125.71(g)). Appropriate parts of that manual will be carried on each airplane when it is away from the principal operations base. If the certificate holder furnishes the maintenance part of the manual in other than printed form, it must ensure there is a compatible reading device available to those persons that provides a legible image of the maintenance information and instructions or a system that is able to retrieve the maintenance information and instructions in the English language (refer to § 125.71(f)).
7.3 Contents of the Manual.
7.3.1 Required Contents. The contents of the PPM are outlined in §§ 125.73 and 125.249. The FSDO will review the procedures and will require that they be revised when they are found to be contrary to the CFRs and accepted safe operating practices, or where they fail to provide adequate direction for all items specified by the CFRs.
7.3.2 Acceptance of Contents. Except for portions of the manual which are approved (e.g., the maintenance program), the contents of the manuals are accepted by the FAA. If you want to insert policies or procedures in the manual that are not required by part 125, the FAA will not require that you revise these policies or procedures unless they are contrary to the CFRs or they would result in an unsafe condition.
7.4 Policy vs. Procedure.
7.4.1 Definitions. Part 125 makes numerous references to “procedures” when outlining the contents of the manual. The term “procedures” refers to a logical progression of actions and decisions to achieve an objective. A step-by-step description of how to do something, such as a preflight checklist, is a procedure. The term “policy,” where used, refers to a requirement established by company management that it wants company personnel to follow. A company requirement, such as “No flight may depart on a cross-country flight with less than 12 quarts of oil in the engine,” is a policy.
7.4.2 Requirements. Policies may be contained within procedures or stated by themselves. But where part 125 calls for procedures, the certificate holder must provide a step-by-step logical progression of action and decision statements. This requirement may be waived
7-3 by the FAA district office where the applicant can show that because of the size of the operation or other mitigating circumstances, a statement of policy or a series of these statements will accomplish the purpose of the procedure and still meet all the requirements of 14 CFR in regard to that procedure.
7.5 Development of Procedures. Some guidelines which the certificate holder should consider in the development of procedures include:
7.5.1 Procedure Sequence. Procedures should flow in a logical sequence. Perhaps the best examples of procedures are airplane checklists.
7.5.2 Information Included in Procedures. The most effective procedures are usually those which are simple and contain only information absolutely necessary to their accomplishment. Again, the airplane checklists are the best example.
7.5.3 Complexity of Procedures. The success of a procedure depends on the experience, training, and ability of the user. A procedure may be short, and to the point, when the user is capable of achieving the purpose of the procedure without extensive direction or detail. However, when the user would have limited training or experience to fall back on, the procedures must be in sufficient detail for that person to accomplish them correctly.
7.5.4 Responsible Party. Procedures must state who is responsible for each step. Is the responsibility for each step clearly understood or stated in the procedure?
7.5.5 Standards of Performance. Are acceptable standards of performance stated as policy within the procedure where necessary?
7.5.6 Purpose of the Procedure. The user must know the purpose of the procedure and view the procedure as an acceptable method of accomplishing that purpose. Where there are no sources (i.e., check airmen, company management) normally available when a procedure is being used, the author should provide sufficient detail to make the user independent of these sources.
7.5.7 Supplemental Resources. If a form, checklist, or tool is necessary to accomplish a procedure, where would it be located? Where would extra ones be located?
7.5.8 Available Time for Completion. Will there be sufficient time available under normal circumstances to accomplish the procedure to the standards desired? If not, the author should consider simplifying the procedure or revising the duties of the user to make their item available.
7.6 Recommended Format of the Manual. A logical format for the PPM is provided in Appendix A. Each major heading, and the recommended contents and considerations which should be included under that heading, is discussed in the remainder of this chapter.
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7.7 Company Organization.
7.7.1 Management Personnel. The manual must include a section which contains the name of each management person who is authorized to act for the certificate holder, the person’s assigned area of responsibility, and the person’s duties, responsibilities, and authority (refer to § 125.73(a)). When the operator has a maintenance organization, within the company, that organization must be described in the manual (refer to § 125.249(a)(1)).
7.7.2 Company Organizational Diagram. A block diagram may be included as a method of portraying the relationships of organizational entities within the company.
7.7.3 Authorized Person(s). This section should also identify the person(s) who are authorized to give tests required by part 125 and the tests they are authorized to conduct (refer to § 125.73(q)).
7.8 Copies of Operations Specifications (OpSpecs). The insertion of copies of your OpSpecs, into your manual, will satisfy the requirement of § 125.73(c). Or you can include appropriate extracted information, including Area of Operations authorized, category and class of airplane authorized, crew complements, and types of operations authorized, extracted from the OpSpecs and appropriate to the section of the manual that the extracted OpSpecs information appears. If extracted information is used, it must clearly identify each OpSpecs excerpt as part of the OpSpec and state that compliance with each OpSpecs is mandatory.
7.9 Minimum Equipment List (MEL). Your manual must include procedures for the release for, or continuation of, flight if any item of equipment required for the particular type of operation becomes inoperative or unserviceable en route (refer to § 125.73(i)).
See Chapter 3, paragraph 3.9 for additional information on MEL procedures.
7.10 Airplane Loading Instructions.
7.10.1 Weight and Balance (W&B). The procedures for ensuring compliance with W&B limitations are required and should contain, for each type of airplane operated, how the certificate holder:
1. Determines the weight of the passengers, crew, and baggage.
2. Calculates the airplane’s center of gravity (CG), including any loading schedules or other approved methods, with instructions for use.
3. Completes the load manifest, including instructions for use.
Note: Information that must be contained in the load manifest is found in § 125.383.
4. Loads the airplane, including instructions for loading of cargo in the cargo and passenger compartments; blocking of seats or compartments or adjusting fuel loads to remain in CG limits; ensuring that loads are not inadvertently
7-5 redistributed or shifted in flight by crewmembers, cargo handlers, or other concerned personnel; and loading hazardous materials (hazmat), if authorized.
Note: If an applicant will have a “will not carry” hazmat program, procedures should be outlined in the PPM for hazmat recognition to prevent inadvertent loading of hazmat.
5. Ensures that no airplane will be operated in excess of 36 calendar-months without being re-weighed to determine the empty weight and CG.
6. Handles hazmat, including notification of the pilot in command (PIC). For procedures and instructions to enable personnel to recognize hazmat, refer to § 125.73(o).
Note: The W&B procedures will be incorporated in the certificate holder’s OpSpecs (refer to § 125.31(b)(5)).
7.10.2 Refueling. The certificate holder is required to develop procedures in the manual that outline the methods for refueling the airplane to ensure that airplanes are fueled with the proper grade of uncontaminated fuel and protected from fire (including electrostatic protection). Procedures should also be established for the supervision and protection of passengers during refueling. Some publications which may be of assistance in developing these procedures are the current editions of:
• AC 00-34, Aircraft Ground Handling and Servicing.
• AC 20-43, Aircraft Fuel Control.
• NFPA 407, Standard for Aircraft Fuel Servicing. This document can be ordered from the National Fire Protection Association, 1 Batterymarch Park, Quincy, MA 02169. It may also be ordered online at http://www.nfpa.org/catalog.
7.11 Preflight Planning and Flight Release Procedures.
7.11.1 Policy or Procedure. The certificate holder will include policy or procedure, in his/her manual, regarding preflight planning and flight release information. The following information is representative of the contents of these procedures:
1. The manual should clearly show who has operational control and authority to sign the flight release (refer to § 125.351(b)) under all anticipated situations.
2. Instructions for completion of the flight release form required by § 125.403 may be necessary to assure standardized completion.
3. Instructions for disposition of copies of the load manifest, flight release, and flight plan prior to, and after, a flight (refer to § 125.405).
4. The person having custody of copies of these forms at a place other than the principal operations base should be identified in the manual (refer to § 125.405(e)(l)).