estimation per pilot differs considerably between current and new SICs,
therefore they are estimated separately.
Cost of ATP Certificate/Aircraft Type Rating per Pilot--New Pilots
    The FAA believes that the ATP practical test/aircraft type rating
for new pilots would be conducted at the conclusion of initial
training, so that the cost of the ATP/aircraft type rating for new
pilots would be incremental to the initial training costs. Table 5
below shows the cost estimates per pilot for new pilots:

Table 5--Incremental Cost of an ATP Certificate/Aircraft Type Rating per
                          Pilot for New Pilots
------------------------------------------------------------------------
                          Item                               Item cost
------------------------------------------------------------------------
Level C or D simulator for flight training (4-hr event,           $1,000
 2 pilots--two hours each)..............................
Simulator instructor for flight training (4-hr event, 2              260
 pilots)................................................
Incremental cost of type rating/ATP ``Check ride''                    52
 (Incremental cost of APD)..............................
Training pay & benefits (1 day).........................              43
Hotel (negotiated rate) (1 day).........................              90
Per diem (1 day)........................................              45
ATP written test........................................             150
                                                         ---------------
    Total...............................................           1,641
------------------------------------------------------------------------
Note: Column sums may be off one or more units from totals owing to
  rounding.

    As summarized in the table, the FAA estimates that after initial
training, pilots need two additional hours of simulator training to be
prepared to take the aircraft type rating check ride (practical test).
The same check ride qualifies as the practical test for the ATP
certificate so the pilots will qualify for both the aircraft type
rating and an ATP certificate simultaneously. Since a check ride is
already required during initial training, the incremental cost for the
aircraft type rating/ATP check ride is just the incremental salary and
benefits of the Aircrew Program Designee (APD) required to conduct an
aircraft type rating or ATP practical test, compared to a check airman.
The cost of the ATP written test is included here as it would be
required for the ATP practical test.
Cost of an ATP Certificate/Aircraft Type Rating per Pilot for Current
SICs
    The FAA believes that the aircraft type rating for current SICs
would be conducted most efficiently at the conclusion of recurrent
training, so that the cost of type rating current SICs would be
incremental to the cost of recurrent training. Table 6 below shows our
cost estimates per pilot for current SICs:

Table 6--Incremental Cost of an ATP Certificate/Aircraft Type Rating per
                        Pilot for Current Pilots
------------------------------------------------------------------------
                          Item                               Item cost
------------------------------------------------------------------------
Ground school instructor (2 days).......................             $26
Level C or D simulator for flight training (Two 4-hr               2,000
 events, 2 pilots--4 hours each)........................
Simulator instructor for flight training (Two 4-hr                   521
 events, 2 pilots)......................................
Incremental cost of Level C or D simulator for ``Check             1,000
 ride'' for type rating/ATP (4-hr event)................
Incremental cost of type rating/ATP ``Check ride''                    52
 (Incremental cost of APD)..............................
Pilot pay (four 4-hr negotiated ``training days'')......           1,250
Hotel (4 days)..........................................             360
Per diem (4 days).......................................             180
                                                         ---------------
    Total...............................................           5,389
------------------------------------------------------------------------
Notes:
1. The FAA assumes ground school class sizes to average 20 pilots.
2. As the FAA anticipates that the aircraft type rating would be
  conducted at the conclusion of recurrent pilot training, there would
  be no incremental travel costs.

    As summarized in the table, the FAA estimates that current SICs
would need four hours of simulator training to be prepared for the
aircraft type rating. The check ride for recurrent training is
typically done with two pilots concurrently, whereas the aircraft type
rating/ATP check ride is conducted with one pilot, so the incremental
cost of a 4-hour simulator event is $2,000 - $1,000 = $1,000. The cost
estimate does not include a charge for the ATP written exam as the
number of current SICs without the ATP written test completed is
estimated to be minimal.
Cost of an Aircraft Type Rating/ATP for New Part 121 Pilots, 2013-2032
    Under current rules and practice, virtually all part 121 pilots
eventually upgrade to PIC, a position for which an aircraft type rating
and ATP certificate are required. On average this occurs 5 years into
the pilot's career, often at a regional airline. Under the proposed
rule, a new part 121 pilot will be required to have an aircraft type
rating and an ATP certificate at the beginning of his or her career as
SIC. Since the undiscounted costs are the same under the proposed rule
as under the current rule, the incremental undiscounted cost
attributable to the proposed rule is zero. Nevertheless, there is an
incremental present value cost stemming from the fact that the costs of
the aircraft type rating would be incurred 5 years earlier under the
proposed rule.\8\ This incremental cost may be expressed as follows: C
= PV1-PV2, where C is the incremental present
value cost of the proposed rule; PV1 is the present value
cost of the requirement that new SICs have an aircraft type rating and
an ATP certificate immediately upon entering into revenue service; and
PV2 is the present value cost of upgrading in year 5 under
the existing rule. When the 20-year cost stream is discounted with the
usual discount factors and summed, the FAA obtains PV1 =
$49.9 million, the present value cost under the proposed rule. When the
20-year cost stream is discounted by an additional 5 years, the FAA
obtains the present value cost, PV2 = $35.6 million. The
incremental present value cost of the proposed aircraft type rating
requirement can then be calculated as the increase in present value
cost: $49.9 mil-$35.6 mil = $14.3 million.\9\
---------------------------------------------------------------------------

    \8\ The FAA believes that a small percentage of new SICs (less
than 5%) may leave part 121 operations prior to upgrading to PIC. By
not taking this potential attrition into account, the FAA's cost
estimates for a type rating/ATP are understated by no more than $1.8
million in present value. A similar underestimation is made in the
analysis for existing SICs who do not currently hold a type rating.
    \9\ Pilots will need one or more additional aircraft type
ratings as they follow a typical career path from a regional airline
to a major airline. However, the average number of years to upgrade
for a major airline is more than 10 years, which added to an average
7-year regional airline career, is far into the future. The low cost
of the initial aircraft type rating, combined with heavy
discounting, indicates the cost of future additional aircraft type
ratings is minimal.
---------------------------------------------------------------------------

Cost of an ATP Certificate/Aircraft Type Rating for Current Part 121
Pilots, 2013-2032
    First, the cost of an ATP certificate for all current pilots
without an ATP certificate is calculated and then, independently, the
cost for all current pilots without a type rating for the airplane
flown to obtain an aircraft type rating is calculated. As already
noted, the latter cost will be higher since there are fewer current
pilots with a type rating than with an ATP certificate. The difference
between the ATP certificate cost and the type rating cost will be the
incremental cost of the proposed rule's type rating requirement for
current pilots.
    The total cost and present value estimates for current pilots for
the estimation period, 2013-2032, are shown in Table 7 below:
Assumptions
7% Discount rate
0.6% Pilot growth rate
$5,389 Estimated incremental cost of an ATP certificate/aircraft
type rating for current pilots
9,986 No. of SICs, 2010--regional airlines
29,594 No. of SICs, 2010--majors & cargo airlines
25.2% of SICs at regional airlines
85% of SICs without an ATP certificate--regionals
15% of SICs without an ATP certificate--majors & cargo airlines
90% of non-type rated SICs--regionals
30% of non-type rated SICs--majors & cargo airlines

                                  Table 7--Cost of an ATP Certificate/Aircraft Type Rating for Current Part 121 Pilots
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      Number of
                                                       current                                                PV Factor
                                         Number of     part 121    Total cost of              PV Cost of an    (2.5 yrs   PV Cost of ATP  Net PV Cost of
                 Year                     part 121    pilots w/o   an ATP cert.   PV Factor     ATP cert.       add'l     (2.5 yrs add'l      an ATP
                                            SICs        an ATP                                                discount)      discount)
                                                        cert.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Cost of an ATP Certificate
--------------------------------------------------------------------------------------------------------------------------------------------------------
2013..................................       40,177       13,161     $70,924,078      0.816     $57,895,174        0.689     $48,885,882     $12,413,978
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                      Number of
                                                       current                                                PV Factor     PV Cost of
                                         Number of     part 121    Total cost of              PV Cost of an    (2.5 yrs     type rating   Net PV Cost of
                 Year                     part 121    pilots w/o    an aircraft   PV Factor   aircraft type     add'l     (2.5 yrs add'l    type rating
                                            SICs     an aircraft    type rating                  rating       discount)      discount)
                                                     type rating
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Cost of a Type Rating
--------------------------------------------------------------------------------------------------------------------------------------------------------
2013..................................       40,177       18,189     $98,018,226      0.816     $80,012,070        0.689     $67,560,999     $12,451,071
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As noted previously, currently only PICs are required to hold an
ATP certificate and an aircraft type rating for the airplane flown in
revenue service. Based on information provided by industry, the FAA
estimates that about 85% of the SICs for regional airlines and
approximately 15% of the SICs of major and cargo airlines do not have
an ATP certificate. The corresponding figures for an aircraft type
rating are 90% and 30%. With the additional estimate of 25.2% of SICs
at regional airlines, more than 13,000 current (2013) SICs do not have
aircraft type ratings.\10\ As Table 9

shows, we estimate $70.9 million to be the total cost to upgrade
current SICs from commercial certificates to ATP certificates. (But, as
in the case of new pilots, this is the total cost under both the
current rule and the proposed rule, so the incremental total cost is
zero.) When discounted with the usual discount factor, a present value
cost of $57.9 million is calculated under the proposed rule. As in the
case of new part 121 pilots, however, the incremental present value
cost owing to the proposed requirement that pilots must have the ATP
certificate immediately when in revenue service must be calculated.
Because the FAA has no information on the time in part 121 service of
current SICs without an ATP certificate, it is assumed that, on
average, they have been in service for 2.5 years and have, on average,
2.5 additional years to serve as SICs before they would upgrade and be
required, under current rules, to have an ATP certificate (and aircraft
type rating). As the table shows, an additional 2.5 years is discounted
to obtain the present value cost of $48.9 million under the current
rule. The incremental PV cost of the earlier requirement for the
aircraft type rating is then $57.9 - $48.9 = $9.0 million.
---------------------------------------------------------------------------

    \10\ A small percentage of SICs also have not passed the ATP
written exam. The estimated total cost for these pilots is minimal.
---------------------------------------------------------------------------

    The analogous independent calculation for the type rating cost
yields an incremental PV cost of the earlier requirement for a type
rating to be 12.4 million. $12.4 - $9.0 = $3.4 million is then the
incremental net present value cost of the proposed rule's requirement
for a type rating in addition to the statute's requirement for an ATP
certificate.
Cost of an ATP Certificate/Aircraft Type Rating for All Part 121
Pilots, 2013-2032
    The table below summarizes the cost of an ATP certificate/aircraft
type rating for new and current part 121 pilots:

  Table 8--Summary of ATP Certificate/Type Rating Cost for All Part 121
                            Pilots, 2013-2032
------------------------------------------------------------------------
                                                               NPV Cost
------------------------------------------------------------------------
ATP Cost--New Pilots........................................       $14.3
ATP Cost --Current Pilots w/o ATP Certificate...............         9.0
Cost of ATP Requirement.....................................        23.3
Cost of Type Rating.........................................         3.4
Cost of ATP Certificate/Type Rating.........................        26.7
------------------------------------------------------------------------
Notes:
1. ``Cost Current Pilots w/o ATP'' is the cost of providing an ATP
  certificate (and type rating) to all current pilots with neither.
2. ``Cost of Type Rating'' is the cost of type rating pilots already
  holding an ATP certificate.

Estimated Cost of ATP 1,500-Hour Requirement
    As previously noted following the Congressional mandate of the Act,
the proposed rule requires all SICs in part 121 air carrier operations
to have an ATP certificate by August 2, 2013. The FAA proposes to
retain the current requirement that ATP holders have at least 1,500
hours of total time as a pilot, except for a newly created restricted
privileges ATP certificate under which (1) pilots with military
training would require only 750 hours of flight time and (2) pilots
with an aviation-related bachelor degree, who also obtained their
commercial pilot certificate with instrument rating from an affiliated
part 141 pilot school, would require only 1,000 hours of flight time.
Holders of a restricted privileges ATP certificate would be allowed to
operate as SICs only in part 121 operations and would be required to be
at least 21 years old and hold a first class medical certificate.
    In this section the cost of the increase in flight time that the
ATP certificate requirement will entail is estimated. Only the cost for
new pilots is estimated, as, given the depressed hiring environment for
pilots in 2009 and 2010, the number of pilots currently with less than
1,500 hours appears to be small \11\, with corresponding minimal costs.
For the future, the effect of the requirement would be to delay the
careers of pilots in part 121 operations, so the cost of the increased
flight hour requirement can be estimated by the reduced salary and
benefits that the requirement engenders. From a social point of view,
the reduced salary and benefits reflects the loss of pilot productivity
the 1,500-hour restriction brings about by delaying the entrance of
pilots into part 121 operations and, consequently, delaying their
career path.
---------------------------------------------------------------------------

    \11\ Industry survey. Confirmed by email from Kit Darby,
President, www.KitDarby.com, Aviation Consulting, LLC, Peachtree
City, GA, dated 12/18/2010.
---------------------------------------------------------------------------

    A common career path of a pilot in part 121 operations is to start
out as an SIC (first officer) in a regional airline, upgrade to PIC
(captain) at that airline and, subsequently, to become an SIC and a PIC
at a major airline. Based on a survey of industry, the FAA estimates
the career path of a ``typical'' pilot in part 121 operations as
follows: Upgrade to regional airline PIC after five years, move to a
position as SIC at a major airline after two years as PIC at the
regional airline, and upgrade to PIC at the major airline after an
additional ten years. Under current regulations, a pilot is eligible
for part 121 operations with a commercial pilot's license, which
requires just 250 hours of flight time.\12\
---------------------------------------------------------------------------

    \12\ A graduate of a part 141 pilot school or a part 142
training center can obtain a commercial license with as few as 190
hours of flight time.
---------------------------------------------------------------------------

    There is considerable cross-sectional variation in the hiring
minimums of regional airlines, but the average total hours minimum
appears to be about 750 hours. The number of flight hours the FAA
assumes pilots can accumulate in one year is also about 750 hours.
Accordingly, the FAA estimates that the proposed requirement for an ATP
certificate with 1,500 hours of flight time would, on average, delay a
new pilot's part 121 career approximately one year. As pilots with an
aviation-related bachelor's degree, who also received their commercial
pilot certificate with instrument rating from an affiliated part 141
pilot school, would be allowed to hold the restricted privileges ATP
certificate with 1,000 hours, the FAA estimates that their careers will
be delayed by only one-third of a year. The part 121 careers of Air
Force, Navy, and Marine pilots appear not to be delayed by the proposed
rule, as these pilots appear to typically have more than 1,500 hours of
flight time when leaving the service, so they will be eligible for the
unrestricted ATP certificate. Army pilots typically have at least 750
hours of flight time when leaving the military, so they will be
immediately eligible for the restricted privileges ATP certificate
under the proposed rule.
    In order to calculate the cost of the ATP certificate 1,500-hour
requirement, the FAA calculates the earnings and active benefits of a
typical pilot in part 121 operations in a 35-year career and then
calculates the loss in earnings and active benefits caused by the
effect of the hours requirements in delaying that career. The regional
airline earnings are estimated by averaging salary and active benefits
data for Colgan Air and Mesa Airlines, as this provides a median
estimate for the regional airlines included in a recent study.\13\ The
major airline earnings are estimated using salary and active benefits
data for Delta Airlines as this was the median airline in the same
study.\14\ (Retirement benefits were not included as they greatly
complicate the analysis with little effect on present value.) As
pilots' salaries differ by type of airplane flown (as well as by
airline), an average salary

for each airline was calculated as a weighted average using the number
of aircraft of each type as weights. Hourly salary data by airline for
2008 were obtained from www.airlinepilotcentral.com and were converted
to monthly figures by multiplying hourly salary by the airline's
average credit hours per month.\15\
---------------------------------------------------------------------------

    \13\ www.KitDarby.com Aviation Consulting. U.S. Airline Pilot
Job Market Overview. April 12, 2010. Peachtree City, Georgia.
    \14\ The active benefits factor for Colgan Airlines and Mesa
Airlines is 1.233 and for Delta Airlines it is 1.15. Kit Darby
Aviation Consulting, pp. 34-37.
    \15\ Kit Darby Aviation Consulting, pp. 26-27.
---------------------------------------------------------------------------

    Based on a 35-year career, the FAA estimated the total cost of a
one-year delay in a part 121 pilot's career to be $130,298, with a
present value cost of $67,598.\16\ The FAA estimated the total cost of
a one-third year delay in a part 121 pilot's career to be $43,433, with
a present value cost of $21,226.\17\ In order to put these results on a
basis comparable to the 20-year estimates of the other costs and of the
estimated benefits of this proposed rule, the present value cost is
annualized to $5,221 per year for a one-year delay and $1,639 per year
for a one-third year delay. With these estimates, the FAA calculated
the total cost of the ATP certificate 1,500-hour requirement for the
estimation period 2013-2032. These calculations are shown in Table 11
of the initial regulatory evaluation.
---------------------------------------------------------------------------

    \16\ Estimating the cost of a one-year delay is straightforward.
For the year of delay, the FAA assumed the pilot is accumulating
hours at the rate of 750 hours/year as a commercial pilot. The FAA
assumed the pilot will earn the same salary as a commercial pilot as
he or she will in their first year as a regional airline SIC.
    \17\ To calculate the cost of a one-third year delay, the FAA
assumed that delayed pilots are paid for \1/3\ of a year as
commercial pilot. All other cash flows are identical to those of the
undelayed pilot, with the exception of the last year when the pilot
retires at age 65 two-thirds of the way through the 35th pay year.
---------------------------------------------------------------------------

    As the table shows, the total cost of the ATP 1,500-hour
requirement for the estimation period, 2013-2032, is about $1.6
billion, with present value cost of $558.7 million. Since the FAA
requires 1,500 hours for an ATP certificate, and the requirement to
hold an ATP certificate will take effect whether or not a regulation is
issued, the costs associated with this provision are attributable to
the statute, not this proposed regulation. The FAA further notes that
this rulemaking contains a provision that would permit a pilot to
obtain a restricted privileges ATP certificate at fewer than 1,500
hours. This allowance for a restricted privileges ATP certificate
results in a reduction in the costs that would be incurred if the
default provision of the public law went into effect without action by
this Agency.

Benefits of This Proposed Rule

    The FAA expects that this proposed rule would reduce the number of
future accidents. The bulk of the benefits of the proposed rule,
particularly with part 121 operations, would be the value of the
averted fatalities and injuries. The value of averted fatalities and
injuries is based on the value of a statistical life, which the Office
of the Secretary of Transportation currently estimates to be $6
million.
Effectiveness of the FOQ Rule in Preventing Accidents
    For the 10 fiscal years from 2001 to 2010, the FAA's Office of
Accident Investigation and Prevention (AVP) compiled a list of all part
121 accidents and part 135 commuter and on-demand accidents over that
period, along with the number of fatalities, the number of minor and
serious injuries, aircraft model, and aircraft damage. From this list
they determined the accidents that would have been affected by the
proposed rule. AVP assessed that the package of requirements of the
proposed rule would have had a likelihood of preventing some of these
accidents. Based on NTSB accident reports, AVP assigned each accident a
qualitative effectiveness rating and corresponding effectiveness score,
which represents the likelihood that the proposed rule would have
prevented the accident.\18\ All scores were reviewed by a 3-person
panel. The Initial Regulatory Evaluation contains a fuller discussion
of accidents which may have been averted by the proposed rule and is
available in the docket.
---------------------------------------------------------------------------

    \18\ Federal Aviation Administration. Office of Accident
Investigation and Prevention. ``An Assessment of the Effectiveness
of Public Law 111-216 in Reducing Accident Risk,'' November 22,
2010.
---------------------------------------------------------------------------

    (23) The FAA is seeking comment on the effectiveness ratings for
each of the accidents identified in Appendix 4 of the Initial
Regulatory Evaluation, which is available in the docket.
Total Benefits of the Proposed Rule
    Table 9 below shows the estimated cost of accidents that would have
had some likelihood of being prevented had the proposed rule been in
effect in the period 2001-2010, taking into account 30 part 135
accidents as well as the 31 part 121 accidents:

                                           Table 9--Estimated Cost of FOQ Rule-Related Accidents, FY 2001-2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Full cost                    Full                     Effective
                                    Number of                  Serious       Minor     of fatality/ Full amt of    accident   Wtd Ave. rule    accident
            Operations              accidents    Fatalities    injuries     injuries     injuries   AP dmge  ($    cost  ($   effectiveness    cost ($
                                                                                ($ mil.)      mil.)        mil.)        ($ mil.)       mil.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Part 121.........................           31           65           14           37       $409.2        $77.4       $486.6         0.344        $167.4
Part 135.........................           30           42           14            7        267.0        131.3        398.3         0.297         118.3
                                  ----------------------------------------------------------------------------------------------------------------------
    Total........................           61          107           28           44        676.2        208.7        884.9         0.323         285.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Column sums may be off by one or more units from totals owing to rounding.

    For the 61 accidents partially attributable to pilot qualification
issues, over the 10-year sample period the FAA estimated the full
accident cost to be $884.9 million. As the table shows, the weighted
average effectiveness (weighting by full accident cost) for all
accidents is 0.323. Multiplying this figure by the full accident cost
yields the effective accident cost of $285.8 that the FAA estimated to
be attributable to pilot qualification issues. Appendix 4 of the
regulatory evaluation shows the calculations by individual accident.
    The FAA assumed the chance of an accident is equally likely in any
year of the 10-year estimation period, for an average effective cost of
$28.58 million per year. Without the proposed rule, the FAA assumed
that effective costs would grow at an annual rate of 3.5%, the FAA's
forecast average annual growth rate for air carrier revenue passenger
miles for the period, 2009-2030.\19\ With

the proposed rule, these projected costs become, as avoided costs,
benefits of the proposed rule, which are shown for the estimation
period, 2013-2032 in the Table 10 below.
---------------------------------------------------------------------------

    \19\ U.S. DOT, FAA, Aviation Policy & Plans. FAA Aerospace
Forecast: 2010-2030. Table 5, ``U.S. Commercial Air Carriers' Total
Scheduled U.S. Passenger Traffic'', Revenue Passenger Miles, System
[Domestic + Int'l], Avg Annual Growth, 2009-2030

7% Discount rate
3.5% Estimated annual growth rate in benefits
20 Number of years of estimation period
13.880 20-year growing annuity factor

                            Table 10--Estimated Benefits of Proposed Rule, 2013-2032
----------------------------------------------------------------------------------------------------------------
                                                                                20-yr growing     Present value
                                                             Benefits, 2013-   annuity factor,   benefits, 2013-
                  2013 Benefits ($ mil.)                      2032 ($ mil.)     discounted 2     2032  ($ mil.)
                                                                                years
----------------------------------------------------------------------------------------------------------------
$31.68....................................................           $896.0          12.12335            $384.1
----------------------------------------------------------------------------------------------------------------

    As the table shows, estimated total benefits for the estimation
period, 2013-2032 are almost $900 million. Multiplying the estimated
$31.68 million in benefits for 2013 by the 20-year growing annuity
factor, discounted 2 years, yields present value benefits of about $384
million.
The Number of Avoided Accidents and Avoided Fatalities
    In this section the FAA calculated directly key primary variables
underlying the expected benefits of the proposed rule--the number of
accidents and the number of fatalities it expects the proposed rule to
prevent. In Table 11, the FAA multiplied the sample number of part 121
and part 135 accidents (from Table 9) by their corresponding weighted
average effectiveness rating to obtain the expected number of accidents
and fatalities that would have been prevented had the proposed rule
been in effect.\20\
---------------------------------------------------------------------------

    \20\ What is calculated here is the ``effective'' number of
accidents and fatalities avoided since the most costly accidents
(or, equivalently, the most beneficial avoided accidents) have
greater weight in determining weighted average effectiveness.

                    Table 11--Number of Accidents and Fatalities Preventable by Proposed Rule Using 2001-2010 Sample Period Accidents
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Weighted     Expected number  Expected number
                             Operations                                 Number of        Fatalities        average        of accidents    of fatalities
                                                                        accidents                       effectiveness       avoided          avoided
--------------------------------------------------------------------------------------------------------------------------------------------------------
Part 121...........................................................               31               65            0.344             10.7             22.4
Part 135...........................................................               30               42            0.297              8.9             12.5
                                                                    ------------------------------------------------------------------------------------
    Total..........................................................               61              107            0.323             19.7             34.6
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The sum of part 121 and part 135 accidents and fatalities avoided may not equal the ``Total'' number owing to the weighting scheme and/or rounding
  error.

    In Table 12 the FAA used the average number of expected accidents
and fatalities avoided per year from the Table 11 analysis to project
the total number of accidents and fatalities that, with the proposed
rule, would be prevented over the 20-year estimation period, 2013-2032.
As with benefits, the FAA assumed the number of accidents and
fatalities would grow at the annual rate of 3.5%. Table 12 shows that
61.3 is the number of accidents that would be prevented by the proposed
rule over the 20-year period, 2013-2032 (33.4 for part 121 and 27.9 for
part 135). For fatalities Table 12 shows that 109.2 is the number that
would be prevented (70.1 for part 121 and 39.1 for part 135).

   Table 12--Number of Accidents and Fatalities Avoided Under the Proposed Rule, Estimation Period, 2013-2032
----------------------------------------------------------------------------------------------------------------
                                                  Part 121         Part 135         Part 121         Part 135
                    Year                         accidents        accidents        fatalities       fatalities
                                                  avoided          avoided          avoided          avoided
----------------------------------------------------------------------------------------------------------------
2010........................................              1.1              0.9              2.2              1.2
2011........................................              1.1              0.9              2.3              1.3
2012........................................              1.1              1.0              2.4              1.3
2013........................................              1.2              1.0              2.5              1.4
2014........................................              1.2              1.0              2.6              1.4
2015........................................              1.3              1.1              2.7              1.5
2016........................................              1.3              1.1              2.7              1.5
2017........................................              1.4              1.1              2.8              1.6
2018........................................              1.4              1.2              2.9              1.6
2019........................................              1.5              1.2              3.0              1.7
2020........................................              1.5              1.3              3.2              1.8
2021........................................              1.6              1.3              3.3              1.8
2022........................................              1.6              1.3              3.4              1.9
2023........................................              1.7              1.4              3.5              2.0
2024........................................              1.7              1.4              3.6              2.0

2025........................................              1.8              1.5              3.7              2.1
2026........................................              1.8              1.5              3.9              2.2
2027........................................              1.9              1.6              4.0              2.2
2028........................................              2.0              1.7              4.2              2.3
2029........................................              2.1              1.7              4.3              2.4
2030........................................              2.1              1.8              4.5              2.5
2031........................................              2.2              1.8              4.6              2.6
2032........................................              2.3              1.9              4.8              2.7
                                             -------------------------------------------------------------------
    Subtotal................................             33.4             27.9             70.1             39.1
                                             -------------------------------------------------------------------
        Total...............................  ...............             61.4  ...............            109.2
----------------------------------------------------------------------------------------------------------------
Note: Sums may not equal ``Subtotal'' or ``Total'' owing to rounding error.

Initial Regulatory Flexibility Determination

Introduction and Purpose of This Analysis
    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA)
establishes ``as a principle of regulatory issuance that agencies shall
endeavor, consistent with the objectives of the rule and of applicable
statutes, to fit regulatory and informational requirements to the scale
of the businesses, organizations, and governmental jurisdictions
subject to regulation. To achieve this principle, agencies are required
to solicit and consider flexible regulatory proposals and to explain
the rationale for their actions to assure that such proposals are given
serious consideration.'' The RFA covers a wide-range of small entities,
including small businesses, not-for-profit organizations, and small
governmental jurisdictions.
    Agencies must perform a review to determine whether a rule will
have a significant economic impact on a substantial number of small
entities. If the agency determines that it will, the agency must
prepare a regulatory flexibility analysis as described in the RFA.
    However, if an agency determines that a rule is not expected to
have a significant economic impact on a substantial number of small
entities, section 605(b) of the RFA provides that the head of the
agency may so certify and a regulatory flexibility analysis is not
required. The certification must include a statement providing the
factual basis for this determination, and the reasoning should be
clear.
    The FAA believes that this proposed rule would not have a
significant impact on a substantial number of small entities for the
following reason: The annualized cost of the proposed rule is less than
0.5% of operating revenues for all small firms that would be affected
by the proposed rule.
Reasons Action by the FAA Is Being Considered
    The purpose of this proposed rule is to meet pilot certification
and qualification requirements imposed by Congress in Sections 216 and
217 of the Airline Safety and Federal Aviation Extension Act of 2010
(Pub. L. 111-216). This Act had its genesis in the crash of Colgan Air
Flight 3407 that occurred in Buffalo, New York, on February 12, 2009,
destroying the airplane, damaging residential homes, and resulting in
50 fatalities.
Objectives of, and Legal Basis for, the Proposed Rule
    The FAA's authority to issue rules on aviation safety is found in
Title 49 of the United States Code. Subtitle I, Section 106 describes
in more detail the scope of the agency's authority. This rulemaking is
promulgated under the authority described in Subtitle VII, Part A,
subpart III, Section 447.
Description of the Small Entities to Which the Proposed Rule Will Apply
and an Estimate of Their Number
    The proposed rule would affect small firms in part 121, part 135,
and part 91, subpart K, operations in the following North American
Industry Classification System (NAICS) industries, which shows that the
Small Business Administration (SBA) size standard is 1,500 employees
for all four industries.\21\ The SBA size standard is the largest size
that a business (including its subsidiaries and affiliates) may be to
remain classified as a small business for SBA.
---------------------------------------------------------------------------

    \21\ U.S. Small Business Administration. Table of Small Business
Size Standards Matched to North American Industry Classification
System Codes, July 21, 2006.

                       Table 13--SBA Size Standard for NAICS Air Transportation Industries
----------------------------------------------------------------------------------------------------------------
              NAICS Code                   2002 U.S. NAICS Title                   SBA Size standard
----------------------------------------------------------------------------------------------------------------
481111...............................  Scheduled Passenger Air        1,500 employees.
                                        Transportation.
481112...............................  Scheduled Freight Air          1,500 employees.
                                        Transportation.
481211...............................  Nonscheduled Chartered         1,500 employees.
                                        Passenger Air Transportation.
481212...............................  Nonscheduled Chartered         1,500 employees.
                                        Freight Air Transportation.
----------------------------------------------------------------------------------------------------------------

    As the size standard is identical at 1500 employees for all four
air transportation industries, the FAA does not attempt to classify
each of the affected firms into one of these industries. The FAA
identifies 93 part 121 air carrier operators, all of which would be
affected by the proposed rule.
    Using Department of Transportation employment data,\22\ the FAA
identified 32 part 121 operators as large and an identical number as
small. The FAA identified 8 more part 121 operators as large, 7 as
subsidiaries of a group with more than 1,500 employees and 1 known to
be large (UPS). The FAA inferred 31 more operators to be small on the
basis of pilot numbers. The largest small part 121 operator has 1,446
employees and 391 pilots, the largest number of pilots for any part 121
operator identified as small. In terms of pilot numbers, the largest
operator that the FAA inferred to be small had 231 pilots. So in all,
the FAA identified 40 of the part 121 operators as large and 53 as
small.
---------------------------------------------------------------------------

    \22\ www.bts.gov/programs/airline_information/number_of_employees/
---------------------------------------------------------------------------

    The FAA had no corresponding employment data for part 135 and part
91, subpart K, operators. The largest part 135 operator, however, had
just 55 PICs, so the FAA infers that all 1,106 part 135 operators are
small. The FAA also identified seven of the eight part 91, subpart K,
operators as small on the basis of pilot numbers, the largest part 91,
subpart K, operator identified as small having 378 pilots.
Description of the Projected Reporting, Recordkeeping and Other
Compliance Requirements of the Proposed Rule
Reporting and Recordkeeping Requirements
    The proposed rule levies requirements that must be met by
certificate holders who wish to offer or provide the ATP Certification
Training Program. While requiring the gathering and maintaining of
information and, in certain cases, the reporting of some of that
information to the FAA, these sections require no additional burdens on
the certificate holders beyond what is currently required by rule or
that which is currently borne by certificate holders in regular
practice. Exceptions to this are the following:
    a. One time development and submission of an ATP Certification
Training Program to the FAA for approval.
    b. One time recordkeeping costs for pilot training records
pertaining to completion of the ATP Certification Training Program.
Other Compliance Requirements
    Consistent with the requirements of the Act and based on some of
the recommendations of the First Officer Qualifications Aviation
Rulemaking Committee (FOQ ARC), this proposed rule would require the
following:
    1. An ATP certificate for all pilots operating in part 121. The
proposed requirement will retain the 1,500 hours total time as a pilot
required for an ATP certificate but allow an ATP certificate with
restricted privileges to be held by military pilots with 750 hours of
flight experience and by baccalaureates from an aviation program who
obtained their commercial pilot certificate with instrument rating from
an affiliated part 141 pilot school and who have 1,000 hours of flight
experience. The ATP with restricted privileges would allow a pilot to
serve in part 121 air carrier operations as an SIC only. A first class
medical certificate will remain the requirement for exercising the
privileges of an ATP certificate (restricted or unrestricted). The
minimum age for an ATP certificate with restricted privileges would be
reduced to 21 years of age. The current requirement for an ATP
certificate will remain at 23 years of age.
    2. A minimum of 50 hours of multiengine (ME) flight experience.
This requirement would apply not just to pilots serving in part 121
operations, but for all pilots who apply for an ATP certificate with an
airplane category multiengine class rating. This would include PICs in
part 135 air carrier operations that require the PIC to hold an ATP
certificate, and PICs in part 91, subpart K, Fractional Ownership
Programs, which require the PIC to hold an ATP certificate. The FOQ ARC
also recommended 50 hours of multiengine time.
    3. An ATP Certification Training Program for applicants for an ATP
certificate with an airplane category multiengine class rating or type
rating. The FOQ ARC made a similar proposal. This is a foundational
course that the FAA believes should be required at the certification
level to address the gap in aeronautical knowledge of a commercial
pilot and the knowledge a pilot should have prior to entering an air
carrier environment. The course would include academic study as well as
simulator flight training, including training in difficult operational
conditions. This requirement will necessitate changes in the ATP
knowledge and practical tests. In addition to all pilots in part 121
operations, this requirement would apply to PICs in part 135 air
carrier operations that require the PIC to hold an ATP certificate, and
PICs in part 91, subpart K, Fractional Ownership Operations, which
require the PIC to hold an ATP certificate.
    4. An aircraft type rating for all SICs serving in part 121
operations. The FOQ ARC made the same recommendation. Current part 121
requirements require only the PIC to hold an aircraft type rating. The
FAA has determined that this requirement would improve safety in part
121 operations by further exposing the pilot to an advanced multiengine
aircraft and a multicrew environment. Also the training and testing for
an aircraft type rating requires a pilot to be tested to the same
standard as the PIC and demonstrate proficiency in difficult
operational conditions, including adverse weather and high altitude
operations.
    5. A minimum of 1,000 hours in air carrier operations to serve as
PIC in part 121 operations. An unintended consequence of the Act's
requirement for all part 121 pilots to hold an ATP certificate is that
the natural mentoring of SICs may not occur. The 1,000-hour requirement
would ensure that a pilot would have at least one full year of relevant
operational experience before upgrading to PIC. The FAA proposes to
allow a pilot to count SIC time in part 121 operations as well as PIC
time in part 135 operations and in part 91, subpart K, Fractional
Ownership Operations, that require an ATP certificate per the operating
rule part.
    The FAA estimates that cost will be minimal for the requirement of
50 hours

of ME time for the ATP with an airplane category multiengine class
rating. As noted in the preamble above, multiengine hours are typically
acquired while engaged in other commercial aviation activities such as
flight instruction or part 135 air carrier operations on the way to
obtaining the ATP. Airlines, currently post minimums for multiengine
time from 50 hours to as much as 1,500 hours.\23\
---------------------------------------------------------------------------

    \23\ Kit Darby, President, www.KitDarby.com, Aviation
Consulting, LLC, Peachtree City, GA.
---------------------------------------------------------------------------

    The FAA also estimates as minimal the costs of the requirement that
a part 121 SIC have 1,000 hours of air carrier operating experience
before upgrade from SIC to PIC. According to a survey of industry, the
average number of years to upgrade is about 5 years for operators which
use regional jet airplanes and/or turboprop airplanes (hereafter
referred to as regional airlines) and more than 10 years for major
airlines. Even without air carrier operating experience in part 135 or
part 91, subpart K operations, at an average number of 750 flight hours
a year, an SIC will accumulate the required hours in 1\1/3\ years.
    The table below summarizes the costs of the three remaining
requirements:

                Table 14--Summary of Costs of the Proposed FOQ Rule--Part 121 Operators 2013-2032
----------------------------------------------------------------------------------------------------------------
                                                                  Regional airlines      Major & cargo airlines
                                                             ---------------------------------------------------
                                                               Total cost   PV cost ($   Total cost   PV cost ($
                                                                ($ mil.)      mil.)       ($ mil.)      mil.)
----------------------------------------------------------------------------------------------------------------
ATP Certification Training Program..........................        104.2         46.1        292.3        129.4
ATP (Practical Test)........................................  ...........          9.5  ...........         13.8
Type Rating.................................................  ...........          1.7  ...........          1.7
1500-Hour Flight Time Requirement...........................      1,575.2        558.7  ...........  ...........
                                                             ---------------------------------------------------
    Total...................................................      1,679.4        616.1        292.3        145.0
                                                             ---------------------------------------------------
Annualized Cost ($ Millions)................................  ...........         58.2  ...........         13.7
----------------------------------------------------------------------------------------------------------------

    These costs represent 98% of the total costs and 97% of the present
value costs of the rule, as the ATP Certification Training Program is
the only one of the three requirements that affect part 135 and part
91, subpart K operators as well as part 121 operators. Costs are shown
separately for regional airlines and all other airlines because of the
strong differential impact on regional airlines.
    Costs of the ATP Certification Training Program are conservatively
allocated by the percentage of pilots employed by the regional airlines
(26.3%, 2010) even though the FAA believes that the impact of the
program will fall heavily on the regionals. The cost of the ATP
practical test and type rating for new pilots is allocated on the same
basis. For current pilots, the cost of the ATP practical test and type
rating is calculated separately for the regionals and the major and
cargo airlines because the regionals have high percentages of SICs
without ATP certificates (85%) and type ratings (90%), whereas the
major and cargo airlines have correspondingly low percentages (15%,
30%). The FAA allocates all of the costs of the ATP 1500-hour
requirement to the regional airlines as almost all major and cargo
airlines have currently (and traditionally) minimum hiring requirements
of at least 1500 hours of flight time.\24\
---------------------------------------------------------------------------

    \24\ As noted in the earlier section entitled ``Total Costs and
Benefits of This Proposed Rule'', the costs of the 1500-hour
requirement are not costs of the proposed rule, but rather costs
attributable to the Airline Safety Act of 2010 since the Act
specifically requires the Administrator to maintain a minimum
requirement of 1500 hours for an ATP certificate. The same point of
course applies for the costs of the ATP test. Even including these
costs in the regulatory flexibility analysis, however, we find that
the impact of the proposed rule on small firms would be minimal.
---------------------------------------------------------------------------

Economic Impact on Small Entities
    Table 14 shows the annualized cost of the proposed rule to be $58.2
million for regional airlines and $13.7 million for major and cargo
airlines. (These costs include the costs of the 1500-hour requirement
that we attribute to the statute, not the rule.) In order to assess the
economic impact of the proposed rule on small firms, the FAA allocates
these annualized costs to small firms on the basis of pilot numbers and
calculate small firms' annualized costs as a percentage of the firms'
average 5-year, 2005-2009 operating revenues.\25\ Of the 31 regional
airlines, 10 are classified as small, but the FAA has operating revenue
data for only one small regional airline, the economic impact for which
is just 0.43%. For the 36 non-regional small firms for which the FAA
has operating revenue data, the economic impact ranges from 0.00% to
0.08%.
---------------------------------------------------------------------------

    \25\ Operating Revenue--www.transtat.bts.gov, Air Carrier
Financial Reports (Form 41 Financial Data), Schedules P1.1 & P1.2.
We average for as many of the five years of data as is available.
---------------------------------------------------------------------------

    For part 135 operators, the FAA has operating revenue data for only
three firms, but as measured by number of PICs they encompass almost
the entire size range of these operators (4 to 45 PICs). The economic
impact on these firms is zero to at least two decimal places (0.00%).
Similar results could be expected for part 91, subpart K, operators
were data available.
    Based on these economic impact results, the FAA concludes that the
proposed rule would not have a significant impact on a substantial
number of firms. Therefore, the FAA certifies this proposed rule, if
promulgated, would not have a significant impact on a substantial
number of small entities. The FAA solicits comments regarding this
determination. Specifically, the FAA requests comments on whether the
proposed rule creates any specific compliance costs unique to small
entities. Please provide detailed economic analysis to support any cost
claims. The FAA also invites comments regarding other small entity
concerns with respect to the proposed rule.
Duplicative, Overlapping or Conflicting Federal Rules
    There are no current Federal rules that duplicate, overlap, or
conflict with this proposed certification rule. The FAA acknowledges
that there are concurrent rulemaking initiatives which involve pilot
training that have some overlap. While this rule is a certification
training rule, not a part 121 training rule, it does propose some
aeronautical knowledge requirements for an ATP certificate that are
also found in the proposed air carrier training requirements, which the
FAA intends to allow for some relief in the air carrier training. The
proposed ATP certification requirements have a broader scope and

applicability beyond those pilots who are flying only in air carrier
operations. The concepts to be learned at the certification level will
be a pilot's first exposure and will enable a knowledge base to be
established. For those pilots that then choose to enter air carrier
operations, the air carrier training program can focus on building on
those concepts with information for their specific operation and
aircraft type.
    The proposed training rules referenced in the previous paragraph
include a proposal to address pilot mentoring requirements required by
Public Law 111-216 and an SNPRM for Qualification, Service, and Use of
Crewmembers and Aircraft Dispatchers that proposes to amend the
training requirements for crewmember and aircraft dispatcher training
programs in domestic, flag, and supplemental operations. The SNPRM
incorporates specific training areas identified in Public Law 111-216
as well. The FAA acknowledges that the requirements for these proposals
must be coordinated prior to the issuance of any final rules.
Alternatives to the Proposed Rule
    The FAA considered a number of alternatives to come up with the
best proposal that will improve safety, meet pilot certification and
qualification requirements imposed by Congress in Sections 216 and 217
of the Airline Safety and Federal Aviation Extension Act of 2010 (Pub.
L. 111-216), and be reasonable in cost. A discussion of the
alternatives for each of the provisions follows.
    Section 216 requires all pilots in part 121 operations to hold an
ATP certificate. This requirement will go into effect in August 2013
regardless of FAA action and the FAA cannot change public law.
Therefore, there are no alternatives to this requirement.
    Section 216 also requires that all flightcrew members in part 121
operations to ``have appropriate multi-engine aircraft flight
experience, as determined by the Administrator.'' Given the existing
regulatory structure and the statutory requirement to revise the ATP
certification requirements in Section 217, the FAA determined it was
most appropriate to require a specific amount of time in class of
airplane (single engine or multiengine) as a prerequisite to applying
for an ATP certificate. The alternative would have been to impose an
operational experience requirement for part 121. The FAA believes that
50 hours as a minimum is appropriate and not unreasonable when compared
to the total time required of 1,500 hours. Any cost associated with
this proposal would be minimal and would be borne by individual pilots
rather than small entities.
    In addition to the defined multiengine hour requirement in the
proposal, the FAA proposes all SICs hold an aircraft type rating in the
aircraft to be flown in part 121 operations. The FAA determined the
most effective multiengine experience for a part 121 SIC would be the
training required to achieve an aircraft type rating in the aircraft to
be flown in revenue service. By requiring an aircraft type rating, the
SIC would then be trained and checked in a multicrew air carrier
environment to the same standard as the PIC. As noted above, the FAA
anticipates that this provision would impose a minimal cost on all
regulated entities.
    In Section 217 of the Act, Congress directed the FAA ``to modify
requirements for the issuance of an airline transport pilot
certificate'' to ensure pilots have specific skills including the
ability to ``function effectively in adverse weather conditions'' and
``function effectively in an air carrier operational environment.''
Currently, there are no training requirements for the ATP certificate.
The public law allowed the FAA to consider academic training, flight
training, or operational experience as a means of ensuring pilots have
the identified skills. Given the existing regulatory structure and
oversight capabilities, the FAA determined that validating operational
experience would be overly burdensome on FAA inspectors and would
require pilots to seek difficult operational conditions in an aircraft
thereby increasing risk. Therefore, the FAA chose to do this by
establishing training requirements for the ATP certificate, similar to
those currently required for other airman certificates.
    The FAA is proposing academic and flight training requirements and
evaluation of the pilot on those requirements through an enhanced
knowledge test and practical test. The FAA is proposing a structured
ATP certification training program that includes training in FSTDs
under parts 121, 135, 141, or 142 rather than permitting instruction to
be accomplished by certified flight instructors (CFIs) under part 61.
Typically CFIs do not have air carrier experience and are not required
under current regulations to have the knowledge that teaching the
required concepts demands. As such, the FAA would have to modify the
requirements for CFIs in addition to modifying the ATP certificate
requirements to enable CFIs to teach the proposed course.
    The decision to propose the structured ATP Certification Training
Program rather than permitting instruction to take place in actual
aircraft under part 61 was also based on the fact that the areas
identified in the public law are complex and involve difficult
operational conditions including icing and high altitude operations.
These complex environments are most safely trained through flight
simulation. The FAA does not want pilots to seek potentially hazardous
conditions in multiengine, multicrew aircraft just to obtain the
experience requirements. In addition to the safety considerations, the
FAA believes that the cost that would be incurred by pilots who
received training from CFIs in part 61 would be prohibitively expensive
due to the level of airplane that would be required for the training.
    The program hours for the ATP Certification Training Program were
based on an assessment of the quantity and complexity of the subject
matter. The FAA considered as an alternative revising the areas of
operation listed in part 61 for the ATP certificate and adding or
modifying the questions on the ATP knowledge test to include the
subject areas in the statute. While this is a less costly alternative,
it does not capture the intent of the statute. The pilot would not be
required to receive training in these critical areas and could likely
get most, if not all, questions on those topic areas wrong and still
pass the written test.
    In addition, Section 217 of the Act permits the Administrator to
allow ``specific academic training courses'' to be credited towards the
1,500-hour requirement for an ATP certificate if the FAA determines
that the academic courses enhance safety more than full compliance with
the total hour requirement for an ATP certificate. While the FAA had
the option to not propose an allowance for academic credit towards the
time required for an ATP certificate, the FAA believes a combination of
training and flight experience is what makes a candidate qualified to
fly in part 121 operations. The FAA chose to allow credit for academic
coursework accomplished in the military and by students pursuing
aviation-related majors at four-year colleges or universities. There
are numerous alternate scenarios that could be considered here,
including different levels of credit for academic coursework and
expanding the credit beyond the military and four-year colleges and
universities.
    An applicant for an ATP certificate does not have to acquire any
hours in

air carrier operations. Recognizing the potential loss of natural
mentoring opportunities, the FAA proposed a requirement for a pilot to
have at least 1,000 hours of air carrier experience prior to serving as
PIC in part 121 operations. This provision is aimed at preventing two
inexperienced pilots in air carrier operations from flying together in
part 121 operations (e.g. PIC and SIC both have 1,500 hours and an ATP,
but little experience in air carrier operations). The FAA could have
chosen not to include this provision. As noted above, the FAA
anticipates that this provision would impose a minimal cost on all
regulated entities.

Initial Trade Impact Assessment

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal
agencies from establishing standards or engaging in related activities
that create unnecessary obstacles to the foreign commerce of the United
States. Pursuant to these Acts, the establishment of standards is not
considered an unnecessary obstacle to the foreign commerce of the
United States, so long as the standard has a legitimate domestic
objective, such the protection of safety, and does not operate in a
manner that excludes imports that meet this objective. The statute also
requires consideration of international standards and, where
appropriate, that they be the basis for U.S. standards. The FAA has
assessed the potential effect of this proposed rule and determined that
it would have only a domestic impact and therefore would not create
unnecessary obstacles to the foreign commerce of the United States.

Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written statement
assessing the effects of any Federal mandate in a proposed or final
agency rule that may result in an expenditure of $100 million or more
(adjusted annually for inflation with the base year 1995) in any one
year by State, local, and tribal governments, in the aggregate, or by
the private sector; such a mandate is deemed to be a ``significant
regulatory action.'' The FAA currently uses an inflation-adjusted value
of $140.8 million.
    This proposed rule does not contain such a mandate. The
requirements of Title II do not apply.

Executive Order 13132, Federalism

    The FAA has analyzed this proposed rule under the principles and
criteria of Executive Order 13132, Federalism. The FAA has determined
that this action would not have a substantial direct effect on the
States, on the relationship between the national Government and the
States, or on the distribution of power and responsibilities among the
various levels of government, and, therefore, would not have federalism
implications.

Environmental Analysis

    FAA Order 1050.1E identifies FAA actions that are categorically
excluded from preparation of an environmental assessment or
environmental impact statement under the National Environmental Policy
Act in the absence of extraordinary circumstances. The FAA has
determined this proposed rulemaking action qualifies for the
categorical exclusion identified in paragraph 308(c) and involves no
extraordinary circumstances.

Regulations that Significantly Affect Energy Supply, Distribution, or
Use

    The FAA has analyzed this NPRM under Executive Order 13211, Actions
Concerning Regulations that Significantly Affect Energy Supply,
Distribution, or Use (May 18, 2001). The FAA has determined that it is
not a ``significant regulatory action'' under the executive order
because while it is a ``significant regulatory action'' under Executive
Order 12866, and DOT's Regulatory Policies and Procedures, it is not
likely to have a significant adverse effect on the supply,
distribution, or use of energy.

Additional Information

Comments Invited
    The FAA invites interested persons to participate in this
rulemaking by submitting written comments, data, or views. The FAA also
invites comments relating to the economic, environmental, energy, or
federalism impacts that might result from adopting the proposals in
this document. The most helpful comments reference a specific portion
of the proposal, explain the reason for any recommended change, and
include supporting data. To ensure the docket does not contain
duplicate comments, please send only one copy of written comments, or
if you are filing comments electronically, please submit your comments
only one time.
    The FAA will file in the docket all comments we receive, as well as
a report summarizing each substantive public contact with FAA personnel
concerning this proposed rulemaking. Before acting on this proposal, we
will consider all comments we receive on or before the closing date for
comments. The FAA will consider comments filed after the comment period
has closed if it is possible to do so without incurring expense or
delay. The FAA may change this proposal in light of the comments we
receive.
Availability of Rulemaking Documents
    You can get an electronic copy of rulemaking documents using the
Internet by--
    1. Searching the Federal Rulemaking Portal (http://www.regulations.gov);
    2. Visiting the FAA's Regulations and Policies Web page at http://www.faa.gov/regulations_policies; or
    3. Accessing the Government Printing Office's Web page at http://www.gpoaccess.gov/fr/index.html.
    You can also get a copy by sending a request to the Federal
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence
Avenue SW., Washington, DC 20591, or by calling<PHONE_NUMBER>. Make
sure to identify the docket number or notice number of this rulemaking.
    You may access all documents the FAA considered in developing this
proposed rule, including economic analyses and technical reports, from
the Internet through the Federal Rulemaking Portal referenced in the
ADDRESSES section.

List of Subjects

14 CFR Part 61

    Aircraft, Airmen, Aviation safety.

14 CFR Part 121

    Air carriers, Aircraft, Airmen, Aviation safety.

14 CFR Part 135

    Air taxis, Aircraft, Airmen, Aviation safety.

14 CFR Part 141

    Airmen, Educational facilities.

14 CFR Part 142

    Airmen, Educational facilities.

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation
Administration proposes to amend Chapter I of Title 14, Code of Federal
Regulations, as follows:

PART 61--CERTIFICATION: PILOTS, FLIGHT INSTRUCTORS, AND GROUND
INSTRUCTORS

    1. The authority citation for part 61 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701-44703, 44707, 44709-
44711, 45102-45103, 45301-45302.

    2. Amend Sec.  61.1 as follows:
    A. Remove paragraph designations (b)(1) through (b)(19);
    B. Add new definitions of Accredited and Nationally recognized
accrediting agency to paragraph (b) in alphabetical order to read as
set forth below;
    C. Revise paragraph (iii) of the definition of Authorized
instructor in paragraph (b) to read as set forth below;
    The additions and revisions read as follows:

Sec.  61.1  Applicability and definitions.

* * * * *
    (b) * * *
    Accredited means the same as defined by the Department of Education
in 34 CFR 600.2.
* * * * *
    Authorized instructor means--
* * * * *
    (iii) A person authorized by the Administrator to provide ground
training or flight training under part 61, 121, 135, or 142 of this
chapter when conducting ground training or flight training in
accordance with that authority.
* * * * *
    Nationally recognized accrediting agency means the same as defined
by the Department of Education in 34 CFR 600.2.
* * * * *
    3. Amend Sec.  61.35 by removing the word ``and'' at the end of
paragraph (a)(1), redesignating paragraph (a)(2) as paragraph (a)(3),
and adding a new paragraph (a)(2) to read as follows:

Sec.  61.35  Knowledge test: Prerequisites and passing grades.

    (a) * * *
    (2) After July 31, 2013, for the knowledge test for an airline
transport pilot certificate with an airplane category multiengine class
rating or type rating, a certificate of completion for the ATP
certification training program specified in Sec.  61.154; and
* * * * *
    4. Amend Sec.  61.39 by revising paragraph (b) to read as follows:

Sec.  61.39  Prerequisites for practical tests.

* * * * *
    (b) To be eligible for a practical test for an airline transport
pilot certificate with an airplane category multiengine class rating or
type rating issued under this part, an applicant must:
    (1) After July 31, 2013, complete the ATP certification training
program required by Sec.  61.154;
    (2) Pass the required knowledge test;
    (i) For those applicants who pass the knowledge test prior to
August 1, 2013, those knowledge test results will expire on July 31,
2015;
    (ii) For those applicants who pass the knowledge test after
completing the ATP certification training program, the knowledge test
results will expire 60 calendar months after the knowledge test was
successfully completed.
    (3) Present the knowledge test report and, if applicable, the
certificate of completion for the ATP certification training program in
Sec.  61.154, at the time of application for the practical test;
    (4) Have satisfactorily accomplished the required training and
obtained the aeronautical experience prescribed by this part for the
certificate or rating sought;
    (i) If applying for the practical test under the aeronautical
experience requirements of Sec.  61.160(a), the applicant must present
the documents required by that section to substantiate eligibility;
    (ii) If applying for the practical test under the aeronautical
experience requirements of Sec.  61.160(b), the applicant must present
official transcripts from an accredited 4-year post secondary
institution substantiating eligibility;
    (5) Hold at least a third-class medical certificate, if a medical
certificate is required;
    (6) Meet the prescribed age requirement of this part for the
issuance of the certificate or rating sought;
    (7) If applying for a type rating to be concurrently completed with
an airline transport pilot certificate, have the endorsement required
by Sec.  61.157(b) in the applicant's logbook or training record; and
    (8) Have a completed and signed application form.
* * * * *
    5. Amend Sec.  61.55 by revising paragraph (a) introductory text
and by removing the phrase ``part 121,'' from paragraph (e)
introductory text to read as follows:

Sec.  61.55  Second-in-command qualifications.

    (a) Except for pilots in part 121 operations after July 31, 2013, a
person may serve as a second-in-command of an aircraft type
certificated for more than one required pilot flight crewmember or in
operations requiring a second-in-command pilot flight crewmember only
if that person holds:
* * * * *
    6. Amend Sec.  61.57 by revising paragraph (e)(2) to read as
follows:

Sec.  61.57  Recent flight experience: Pilot in command.

* * * * *
    (e) * * *
    (2) This section does not apply to a pilot in command who is
employed by an air carrier certificated under part 121 or 135 and is
engaged in a flight operation under part 91, 121, or 135 for that air
carrier if the pilot is in compliance with Sec. Sec.  121.435 or
121.436, as applicable, and Sec.  121.439, or Sec. Sec.  135.243 and
135.247 of this chapter, as appropriate.
* * * * *
    7. Amend Sec.  61.71 by redesignating paragraphs (b)(1) and (b)(2)
as paragraphs (b)(2) and (b)(3), respectively, and by adding a new
paragraph (b)(1) to read as follows:

Sec.  61.71  Graduates of an approved training program other than under
this part: Special rules.

* * * * *
    (b) * * *
    (1) After July 31, 2013, satisfactorily completed the ATP
certification training program specified in Sec.  61.154.
* * * * *
    8. Amend Sec.  61.153 as follows:
    A. Revise paragraph (a);
    B. Redesignate paragraphs (e) through (h) as paragraphs (f) through
(i); and
    C. Add a new paragraph (e).
    The addition and revisions read as follows:

Sec.  61.153  Eligibility requirements: General.

* * * * *
    (a) Meet the following age requirements:
    (1) For an ATP certificate obtained under the aeronautical
experience requirements of Sec.  61.159, be at least 23 years of age;
or
    (2) For an ATP certificate obtained under the aeronautical
experience requirements of Sec.  61.160, be at least 21 years of age.
* * * * *
    (e) After July 31, 2013, for an airline transport pilot certificate
with an airplane category multiengine class rating or type rating,
receive a certificate of completion from an authorized training
provider certifying completion of the ATP certification training
program specified in Sec.  61.154 before applying for the knowledge
test required by paragraph (g) of this section;
* * * * *
    9. Add Sec.  61.154 to read as follows:

Sec.  61.154  ATP Certification training program: Airplane category--
multiengine class rating or aircraft type rating.

    After July 31, 2013, a person who applies for the knowledge test
for an airline transport pilot certificate with an airplane category
multiengine class rating or an aircraft type rating must

present a certificate of completion from an authorized training
provider certifying the applicant has completed the following training
in a course approved by the Administrator under part 121, 135, 141, or
142 of this chapter.
    (a) Academic training. The applicant for the knowledge test must
receive at least 24 hours of classroom instruction that includes the
following:
    (1) At least 5 hours of instruction on high altitude operations,
including aerodynamics and physiology;
    (2) At least 3 hours of instruction on meteorology, including
adverse weather phenomena and weather radar; and
    (3) At least 12 hours of instruction on air carrier operations,
including turbine engines, transport category aircraft performance,
automation, communications, checklist philosophy, and operational
control.
    (b) FSTD Training. The applicant for the knowledge test must
receive at least 16 hours of training in a flight simulation training
device qualified under part 60 of this chapter that represents a
multiengine turbine airplane. The training must include the following:
    (1) At least 8 hours of training in a Level C or higher full flight
simulator on
    (i) Low energy states/stalls;
    (ii) Upset recovery techniques; and
    (iii) Adverse weather conditions, including icing, thunderstorms,
and crosswinds with gusts; and
    (2) At least 8 hours of training in a Level 4 or higher flight
training device or a full flight simulator on
    (i) Aircraft performance;
    (ii) Navigation;
    (iii) Automation; and
    (iv) Crew resource management.
    10. Amend Sec.  61.155 as follows:
    A. Remove the word ``and'' after the semicolon in paragraph
(c)(12);
    B. Remove the period from the end of paragraph (c)(13) and add the
phrase ``; and'' in its place; and
    C. Add paragraphs (c)(14) and (d).
    The additions read as follows:

Sec.  61.155  Aeronautical knowledge.

* * * * *
    (c) * * *
    (14) After July 31, 2013, for airplane category multiengine class
rating or aircraft type rating, the approved training course in Sec.
61.154.
    (d) An applicant who successfully completes the knowledge test for
an airline transport pilot certificate with an airplane category
multiengine class rating or aircraft type rating prior to August 1,
2013, must successfully complete the practical test for that category
and class by July 31, 2015. An applicant who passes the knowledge test
prior to August 1, 2013, but fails to successfully complete the
practical test by July 31, 2015, must complete the ATP certification
training program specified in Sec.  61.154 and retake the knowledge
test prior to applying for the practical test.
    11. Amend Sec.  61.157 as follows:
    A. Remove the word ``and'' from after the semicolon in paragraph
(a)(2)(i);
    B. Remove the period from the end of paragraph (a)(2)(ii) and add a
semicolon in its place; and
    C. Add paragraph (a)(2)(iii).
    The addition reads as follows:

Sec.  61.157  Flight proficiency.

    (a) * * *
    (2) * * *
    (iii) After July 31, 2013, if applying for an airplane category
multiengine class rating or aircraft type rating, the training
requirements of Sec.  61.154.
* * * * *
    12. Amend Sec.  61.159 as follows:
    A. Redesignate paragraphs (a)(3) through (a)(5) as paragraphs
(a)(4) through (a)(6);
    B. Add a new paragraph (a)(3);
    C. Remove the phrase ``paragraph (a)(3)(ii)'' from newly
redesignated paragraph (a)(4)(i) and add the phrase ``paragraph
(a)(4)(ii)'' in its place; and
    D. Remove the phrase ``paragraph (a)(3)'' from newly redesignated
paragraph (a)(4)(ii) and add the phrase ``paragraph (a)(4)'' in its
place.
    The addition reads as follows

Sec.  61.159  Aeronautical experience: Airplane category rating.

    (a) * * *
    (3) 50 hours of flight time in the class of aircraft for which the
rating is sought. An applicant may receive credit for not more than 10
hours in a full flight simulator that represents the class of airplane.
* * * * *
    13. Add Sec.  61.160 to read as follows:

Sec.  61.160  Aeronautical experience: Airplane category rating--
restricted privileges.

    A person may apply for an airline transport pilot certificate with
an airplane category multiengine class rating if they meet the
following aeronautical experience requirements.
    (a) A person who meets the eligibility requirements of Sec.  61.153
and presents the evidentiary documents described in Sec.  61.73(h)(1),
(2), and (3), may apply for an airline transport pilot certificate with
a minimum of 750 hours of total time as a pilot that includes at least:
    (1) 250 hours of cross-country flight time.
    (2) 100 hours of night flight time.
    (3) 50 hours of flight time in a multiengine airplane. An applicant
may receive credit for not more than 10 hours in a simulator that
represents a multiengine airplane.
    (4) 75 hours of instrument flight time, in actual or simulated
instrument conditions, subject to the following:
    (i) Except as provided in paragraph (a)(4)(ii) of this section, an
applicant may not receive credit for more than a total of 25 hours of
simulated instrument time in a flight simulator or flight training
device.
    (ii) A maximum of 50 hours of training in a flight simulator or
flight training device may be credited toward the instrument flight
time requirements of paragraph (a)(4) of this section if the training
was accomplished in a course conducted by a training center
certificated under part 142 of this chapter.
    (iii) Training in a flight simulator or flight training device must
be accomplished in a flight simulator or flight training device
representing an airplane.
    (5) 250 hours of flight time in an airplane as a pilot in command,
or as second in command performing the duties of pilot in command while
under the supervision of a pilot in command, or any combination
thereof, which includes at least--
    (i) 100 hours of cross-country flight time; and
    (ii) 25 hours of night flight time.
    (6) Not more than 100 hours of the total aeronautical experience
requirements of paragraph (a) of this section may be obtained in a
flight simulator or flight training device that represents an airplane,
provided the aeronautical experience was obtained in an approved course
conducted by a training center certificated under part 142 of this
chapter.
    (b) A person who holds a Bachelor's degree with an aviation major
from an accredited 4-year postsecondary institution, as defined in
Sec.  61.1, and holds a commercial pilot certificate with an airplane
category and instrument rating obtained from an affiliated part 141
pilot school may apply for an airline transport pilot certificate with
a minimum of 1,000 hours of total time as a pilot that includes at
least:
    (1) 325 hours of cross-country flight time.
    (2) 100 hours of night flight time.
    (3) 50 hours of flight time in a multiengine airplane. An applicant
may receive credit for not more than 10 hours in a simulator that
represents a multiengine airplane.

    (4) 75 hours of instrument flight time, in actual or simulated
instrument conditions, subject to the following:
    (i) Except as provided in paragraph (a)(4)(ii) of this section, an
applicant may not receive credit for more than a total of 25 hours of
simulated instrument time in a flight simulator or flight training
device.
    (ii) A maximum of 50 hours of training in a flight simulator or
flight training device may be credited toward the instrument flight
time requirements of paragraph (a)(4) of this section if the training
was accomplished in a course conducted by a training center
certificated under part 142 of this chapter.
    (iii) Training in a flight simulator or flight training device must
be accomplished in a flight simulator or flight training device,
representing an airplane.
    (5) 250 hours of flight time in an airplane as a pilot in command,
or as second in command performing the duties of pilot in command while
under the supervision of a pilot in command, or any combination
thereof, which includes at least--
    (i) 100 hours of cross-country flight time; and
    (ii) 25 hours of night flight time.
    (6) Not more than 100 hours of the total aeronautical experience
requirements of paragraph (a) of this section may be obtained in a
flight simulator or flight training device that represents an airplane,
provided the aeronautical experience was obtained in an approved course
conducted by a training center certificated under part 142 of this
chapter.
    (c) A person who has performed at least 20 night takeoffs and
landings to a full stop may substitute each additional night takeoff
and landing to a full stop for 1 hour of night flight time to satisfy
the requirements of paragraph (a)(2) of this section; however, not more
than 25 hours of night flight time may be credited in this manner.
    (d) An airline transport pilot certificate obtained under this
section is subject to the pilot in command limitations set forth in
Sec.  61.168.
    14. Amend Sec.  61.165 as follows:
    A. Revise paragraph (c)(2);
    B. Redesignate paragraphs (c)(3) through (c)(5) as paragraphs
(c)(4) through (c)(6);
    C. Add new paragraph (c)(3);
    D. Remove the phrase ``Sec.  61.159 of this part'' in newly
redesignated paragraph (c)(5) and add the phrase ``Sec.  61.159 or
Sec.  61.160'' in its place;
    E. Revise paragraph (e) introductory text and paragraph (e)(1);
    F. Redesignate paragraph (f) as paragraph (g);
    G. Add new paragraph (f);
    H. Remove the phrase ``paragraphs (a) through (e)'' from newly
redesignated paragraph (g) introductory text and add the phrase
``paragraphs (a) through (f)'' in its place; and
    I. Remove the phrase ``paragraph (f)(1)'' from newly redesignated
paragraph (g)(3) and add the phrase ``paragraph (g)(1)'' in its place.
    The revisions and additions read as follows:

Sec.  61.165  Additional aircraft class category and ratings.

* * * * *
    (c) * * *
    (2) After July 31, 2013, successfully complete the ATP
certification training program specified in Sec.  61.154;
    (3) Pass a knowledge test for an airplane category multiengine
class rating or type rating on the aeronautical knowledge areas of
Sec.  61.155(c);
* * * * *
    (e) Additional class rating within the same aircraft category.
Except as provided in paragraph (f) of this section, a person applying
for an airline transport pilot certificate with an additional class
rating who holds an airline transport certificate in the same aircraft
category must--
    (1) Meet the eligibility requirements of Sec.  61.153, except
paragraph (g) of that section;
* * * * *
    (f) Adding a multiengine class rating or type rating to an airline
transport pilot certificate with a single engine class rating. A person
applying to add a multiengine class rating or airplane type rating to
an airline transport pilot certificate with an airplane category single
engine class rating must--
    (1) Meet the eligibility requirements of Sec.  61.153;
    (2) Pass a required knowledge test on the aeronautical knowledge
areas of Sec.  61.155(c), as applicable to multiengine airplanes;
    (3) Comply with the requirements in Sec.  61.157(b), if applicable;
    (4) Meet the applicable aeronautical experience requirements of
Sec.  61.159; and
    (5) Pass a practical test on the areas of operation of Sec.
61.157(e)(2).
* * * * *
    15. Amend Sec.  61.167 by revising paragraph (b) introductory text
to read as follows:

Sec.  61.167  Privileges.

* * * * *
    (b) A person who holds an airline transport pilot certificate and
has met the aeronautical experience requirements of Sec.  61.159 of
this part may instruct--
* * * * *
    16. Add Sec.  61.168 to read as follows:

Sec.  61.168  Limitations.

    (a) A person who holds an airline transport pilot certificate and
has not satisfied the age requirement of Sec.  61.153(a)(1) and the
aeronautical experience requirements of Sec.  61.159 may not act as
pilot in command in operations under Sec.  91.1053(a)(2)(i) or Sec.
135.243(a)(1) of this chapter, or in any operation conducted under part
121 of this chapter.
    (b) An airline transport pilot certificate issued to a pilot who
has not satisfied the requirements of Sec.  61.159 must contain the
following limitation, ``Restricted in accordance with 14 CFR
61.168(a)'' and ``Holder does not meet the pilot in command
aeronautical experience requirements of ICAO.''
    (c) The pilot is entitled to an airline transport pilot certificate
without the limitation specified in paragraph (b) of this section when
the applicant presents satisfactory evidence of having met the
aeronautical experience requirements of Sec.  61.159 and the age
requirement of Sec.  61.153(a)(1).

PART 121--OPERATING REQUIREMENTS: DOMESTIC, FLAG, AND SUPPLEMENTAL
OPERATIONS

    17. The authority citation for part 121 continues to read as
follows:

    Authority:  49 U.S.C. 106(g), 40113, 40119, 41706, 44101, 44701-
44702, 44705, 44709-44711, 44713, 44716-44717, 44722, 46105.2.

    18. Amend Sec.  121.403 by adding paragraph (c) to read as follows:

Sec.  121.403  Training program: Curriculum.

* * * * *
    (c) Each certificate holder required to have a training program
under this part may elect to provide the training required by Sec.
61.154 of this chapter. If a certificate holder elects to provide the
training in Sec.  61.154, that training must take place prior to
initial training.
    19. Amend Sec.  121.409 by revising paragraph (b) introductory text
to read as follows:

Sec.  121.409  Training courses using airplane simulators and other
training devices.

* * * * *
    (b) Except for a training course approved to satisfy the
requirements of Sec.  61.154 of this chapter, a course of training in
an airplane simulator may be included for use as provided in Sec.
121.441 if that course--
* * * * *
    20. Amend Sec.  121.412 by revising paragraphs (c) introductory
text and (f)

introductory text and by adding paragraph (h) to read as follows:

Sec.  121.412  Qualifications: Flight instructors (airplane) and flight
instructors (simulator).

* * * * *
    (c) Except as provided in paragraph (h) of this section, no
certificate holder may use a person, nor may any person serve as a
flight instructor (simulator) in a training program established under
this subpart, unless, with respect to the airplane type involved, that
person meets the provisions of paragraph (b) of this section, or--
* * * * *
    (f) Except for a training course approved to satisfy the
requirements of Sec.  61.154 of this chapter, a flight instructor
(simulator) must accomplish the following--
* * * * *
    (h) A person providing instruction in a flight simulation training
device in a course approved to satisfy the requirements of Sec.  61.154
of this chapter must hold an airline transport pilot certificate with
an airplane category multiengine class rating, meet the aeronautical
experience requirements of Sec.  61.159 of this chapter, and have at
least 2 years of experience as a pilot in operations under Sec.
91.1053(a)(2)(i) or Sec.  135.243(a)(1) of this chapter, or in any
operation conducted under part 121 of this chapter. Additionally,
instructors must have an appropriate aircraft type rating for the
aircraft that the FSTD represents or have received instruction from the
certificate holder on any maneuvers or concepts they will demonstrate
in the FSTD.
    21. Amend Sec.  121.414 by revising paragraph (a) introductory text
to read as follows:

Sec.  121.414  Initial and transition training and checking
requirements: Flight instructors (airplane), Flight instructors
(simulator).

    (a) Except for a training course approved to satisfy the
requirements of Sec.  61.154 of this chapter, no certificate holder may
use a person nor may any person serve as a flight instructor unless--
* * * * *
    22. Add Sec.  121.435 to read as follows:

Sec.  121.435   Pilot qualification: Certificate and experience
requirements.

    (a) No pilot may act as pilot in command of an aircraft (or as
second in command of an aircraft in a flag or supplemental operation
that requires three or more pilots) unless he holds an airline
transport pilot certificate and an appropriate type rating for that
aircraft.
    (b) No certificate holder may use nor may any pilot act as a pilot
in a capacity other than those specified in paragraph (a) of this
section unless the pilot holds at least a commercial pilot certificate
with appropriate category and class ratings for the aircraft concerned,
and an instrument rating. Notwithstanding the requirements of Sec.
61.63 (b) and (c) of this chapter, a pilot who is currently employed by
a certificate holder and meets applicable training requirements of
subpart N of this part, and the proficiency check requirements of Sec.
121.441, may be issued the appropriate category and class ratings by
presenting proof of compliance with those requirements to a Flight
Standards District Office.
    (c) The requirements of this section will expire on July 31, 2013.
After that date, the requirements of Sec.  121.436 apply.
    23. Add Sec.  121.436 to read as follows:

Sec.  121.436   Pilot qualification: Certificates and experience
requirements.

    (a) No pilot may act as pilot in command of an aircraft unless he
holds an airline transport pilot certificate, an appropriate aircraft
type rating for the aircraft being flown, and has 1,000 hours as second
in command in part 121 operations, pilot in command in operations under
Sec.  91.1053(a)(2)(i) or Sec.  135.243(a)(1) of this chapter, or any
combination thereof.
    (b) No certificate holder may use nor may any pilot act as second
in command unless the pilot holds an airline transport pilot
certificate and an appropriate aircraft type rating for the aircraft
being flown. A pilot type rating obtained under Sec.  61.55 does not
satisfy the requirements of this section.
    (c) Compliance with the requirements of this section is required by
August 1, 2013.

Sec.  121.437  [Removed]

    24. Remove Sec.  121.437.

Appendix H to Part 121 [Amended]

    25. Amend Appendix H to Part 121 by removing the reference ``Sec.
61.153(g)'' from the last paragraph of the appendix and adding the
reference ``Sec.  61.153(h)'' in its place.

PART 135--OPERATING REQUIREMENTS: COMMUTER AND ON DEMAND OPERATIONS
AND RULES GOVERNING PERSON ONBOARD SUCH AIRCRAFT

    26. The authority citation for part 135 continues to read as
follows:

    Authority:  49 U.S.C. 106(g), 41706, 40113, 44701-44702, 44705,
44709, 44711-44713, 44715-44717, 44722, 45101-45105.

    27. Amend Sec.  135.338 by revising paragraphs (b) introductory
text, (c) introductory text, and (f) introductory text, and by adding
paragraph (h) to read as follows:

Sec.  135.338  Qualifications: Flight instructors (aircraft) and flight
instructors (simulator).

* * * * *
    (b) Except as provided in paragraph (h) of this section, no
certificate holder may use a person, nor may any person serve as a
flight instructor (aircraft) in a training program established under
this subpart unless, with respect to the type, class, or category
aircraft involved, that person--
* * * * *
    (c) Except as provided in paragraph (h) of this section, no
certificate holder may use a person, nor may any person serve as a
flight instructor (simulator) in a training program established under
this subpart, unless, with respect to the type, class, or category
aircraft involved, that person meets the provisions of paragraph (b) of
this section, or--
* * * * *
    (f) Except for a training course approved to satisfy the
requirements of Sec.  61.154 of this chapter, a flight instructor
(simulator) must accomplish the following--
* * * * *
    (h) A person providing instruction in a flight simulation training
device in a course approved to satisfy the requirements of Sec.  61.154
of this chapter must hold an airline transport pilot certificate with
an airplane category multiengine class rating, meet the aeronautical
experience requirements of Sec.  61.159 of this chapter, and have at
least 2 years of experience as a pilot in operations under Sec.
91.1053(a)(2)(i) or Sec.  135.243(a)(1) of this chapter, or in any
operation conducted under part 121 of this chapter. Additionally,
instructors must have an appropriate aircraft type rating for the
aircraft that the FSTD represents or have received instruction from the
certificate holder on any maneuvers or concepts they will demonstrate
in the FSTD.
    28. Amend Sec.  135.340 by revising paragraph (a) introductory text
to read as follows:

Sec.  135.340  Initial and transition training and checking: flight
instructors (aircraft), flight instructors (simulator).

    (a) Except for a training course approved to satisfy the
requirements of Sec.  61.154 of this chapter, no certificate holder may
use a person nor may any person serve as a flight instructor unless--
* * * * *
    29. Amend Sec.  135.341 by adding a sentence to the end of
paragraph (a), redesignating paragraphs (c) and (d) as

paragraphs (d) and (e), and adding new paragraph (c) to read as
follows:

Sec.  135.341  Pilot and flight attendant crewmember training programs.

    (a) * * * This deviation authority does not extend to the training
provided under paragraph (c) of this section.
* * * * *
    (c) Each certificate holder required to have a training program by
paragraph (a) of this section may elect to provide the training
required by Sec.  61.154 of this chapter. If a certificate holder
elects to provide the training in Sec.  61.154, that training must take
place prior to the training curriculums set forth in paragraph (b) of
this section.
* * * * *

PART 141--PILOT SCHOOLS

    30. The authority citation for part 141 continues to read as
follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701-44703, 44707, 44709,
44711, 45102-45103, 45301-45302.

    31. Amend Sec.  141.33 by adding paragraph (a)(4) to read as
follows:

Sec.  141.33  Personnel.

    (a) * * *
    (4) For a training course approved by the Administrator to satisfy
the requirements of Sec.  61.154 of this chapter--
    (i) Each instructor used for ground training must hold an airline
transport pilot certificate with an airplane category multiengine class
rating.
    (ii) Each instructor used for training in a flight simulation
training device must hold an airline transport pilot certificate with
an airplane category multiengine class rating, meet the aeronautical
experience requirements of Sec.  61.159 of this chapter, and have at
least 2 years of experience as a pilot in operations under Sec.
91.1053(a)(2)(i) or Sec.  135.243(a)(1) of this chapter, or in any
operation conducted under part 121 of this chapter. Additionally,
instructors must have an appropriate aircraft type rating for the
aircraft that the FSTD represents or have received instruction from the
certificate holder on any maneuvers or concepts they will demonstrate
in the FSTD.
* * * * *
    32. Amend Appendix E to part 141 by revising section 1 to read as
follows:

Appendix E to Part 141--Airline Transport Pilot Certification Course

    1. Applicability. (a) Except as provided in paragraph (b) of
this section, this appendix prescribes the minimum curriculum for an
airline transport pilot certification course under this part, for
the following ratings:
    (1) Airplane single-engine.
    (2) Airplane multiengine.
    (3) Rotorcraft helicopter.
    (4) Powered-lift.
    (b) In addition to the requirements set forth in this appendix,
an applicant for an airline transport pilot certificate with
airplane category multiengine class rating must also satisfy the
training requirements of Sec.  61.154 of this chapter.
* * * * *

PART 142--TRAINING CENTERS

    33. The authority citation for part 142 continues to read as
follows:

    Authority:  49 U.S.C. 106(g), 40113, 40119, 44101, 44701-44703,
44705, 44707, 44709-44711, 45102-45103, 45301-45302.

    34. Amend Sec.  142.1 by revising paragraphs (a) and (b)(2) to read
as follows:

Sec.  142.1  Applicability.

    (a) This subpart prescribes the requirements governing the
certification and operation of training centers. Except as provided in
paragraph (b) of this section, this part provides an alternative means
to accomplish training required by parts 61, 63, 65, 91, 121, 125, 135,
or 137 of this chapter.
    (b) * * *
    (2) Approved under subpart Y of part 121 of this chapter, Advanced
Qualification Programs, for the authorization holder's own employees;
* * * * *
    35. Amend Sec.  142.3 by revising paragraph (3) of the definition
of Course and the definition of Flight training equipment to read as
follows:

Sec.  142.3  Definitions.

* * * * *
    Course means--
* * * * *
    (3) A curriculum, or curriculum segment, as defined in subpart Y of
part 121 of this chapter.
* * * * *
    Flight training equipment means full flight simulators, as defined
in Sec.  1.1 of this chapter, flight training devices, as defined in
Sec.  1.1 of this chapter, and aircraft.
* * * * *
    36. Amend Sec.  142.47 as follows:
    A. Redesignate paragraphs (a)(3) through (a)(5) as paragraphs
(a)(4) through (a)(6);
    B. Add new paragraph (a)(3);
    C. Add the phrase ``of part 61'' after the words ``subpart H'' in
newly redesignated paragraph (a)(4);
    D. Remove the phrase ``paragraph (a)(5)(ii)'' from newly
redesignated paragraph (a)(6)(i) and add in its place the phrase
``paragraphs (a)(6)(ii) and (a)(6)(iii)'';
    E. Remove the phrase ``flight simulator or flight training device''
from newly redesignated paragraph (a)(6)(ii) and add in its place the
phrase ``flight simulation training device (FSTD)'';
    F. Revise newly redesignated paragraph (a)(6)(iii); and
    G. Add paragraph (a)(6)(iv).
    The additions and revision read as follows:

Sec.  142.47  Training center instructor eligibility requirements.

    (a) * * *
    (3) For a training course approved by the Administrator to satisfy
the requirements of Sec.  61.154 of this chapter, each instructor used
for ground training must hold an airline transport pilot certificate
with multiengine class rating.
* * * * *
    (6) * * *
    (iii) If instructing in an FSTD for a curriculum approved under
Sec.  61.154 of this chapter, holds an airline transport pilot
certificate with an airplane category multiengine class rating, meets
the aeronautical experience requirements of Sec.  61.159 of this
chapter, and has at least 2 years of experience as a pilot in
operations under Sec.  91.1053(a)(2)(i) or Sec.  135.243(a)(1) of this
chapter, or in any operation conducted under part 121 of this chapter.
Additionally, instructors must have an appropriate aircraft type rating
for the aircraft that the FSTD represents or have received instruction
from the certificate holder on any maneuvers or concepts they will
demonstrate in the FSTD; or
    (iv) Is employed as an FSTD instructor for a training center
providing instruction and testing to meet the requirements of part 61
of this chapter on August 1, 1996.
* * * * *
    37. Amend Sec.  142.49 by revising paragraph (c)(3)(iv) to read as
follows:

Sec.  142.49  Training center instructor and evaluator privileges and
limitations.

* * * * *
    (c) * * *
    (3) * * *
    (iv) If instructing or evaluating in an aircraft in flight while
serving as a required crewmember, holds at least a valid second class
medical certificate; and
* * * * *

Sec.  142.55  [Amended]

    38. Amend Sec.  142.55 as follows:
    A. In paragraph (a)(2), remove the phrase ``part 187'' and add in
its place the phrase ``part 183''; and
    B. In paragraph (d), remove the phrase ``SFAR 58'' and add in its
place the

phrase ``subpart Y of part 121 of this chapter''.

    Issued in Washington, DC, on February 22, 2012.
John W. McGraw,
Deputy Director, Flight Standards Service.
[FR Doc. 2012-4627 Filed 2-27-12; 4:15 pm]
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