Discussion
On February 19, 2009, we issued a proposal to amend part 39 of the Federal Aviation Regulations (14 CFR part 39) to include an AD that would apply to certain HBC Models 1900, 1900C, and 1900D airplanes. This proposal was published in the Federal Register as a notice of proposed rulemaking (NPRM) on February 27, 2009 (74 FR 8885). The NPRM proposed to supersede AD 2006-24-11 with a new AD that would require you to install modification kits on the wing rear spar lower caps. The proposed AD would also retain the repetitive inspections currently required in AD 2006-24-11 until the modification kits are installed. The proposed AD would require you to use Raytheon Mandatory Service Bulletin 57-3815, Issued: October 2006; and Hawker Beechcraft Mandatory Service Bulletin SB 57-3816, Issued: January, 2008, to perform these actions.
Comments
We provided the public the opportunity to participate in developing this AD. The following presentsthe comments received on the proposal and FAA's response to each comment:
Comment Issue: Address Shoring Requirement
Mr. Scott Robert Lewis states that the shoring procedures specified in step 5 of Hawker Beechcraft Mandatory Service Bulletin SB 57-3816, Issued: January 2008, are inadequate and no reference is given.
Mr. Lewis also states that the maintenance manual gives no procedures for shoring the aircraft. Trusses must be made and the aircraft should be supported using approved procedures provided by the manufacturer.
Mr. Lewis requests references to procedures for the shoring process.
We agree with the commenter that there are no specific shoring procedures given to accomplish Hawker Beechcraft Mandatory Service Bulletin SB 57-3816, Issued: January 2008.
We rely on maintenance facilities to use best practices to shore airplanes at the locations specified in the modification kit installation instructions.
For further assistance with procedures for shoring an airplane, you may contact the manufacturer as noted in the Accomplishment Instructions of Hawker Beechcraft Mandatory Service Bulletin SB 57- 3816, Issued: January 2008.
We are changing the final rule AD action based on this comment.
Conclusion
We have carefully reviewed the available data and determined that air safety and the public interest require adopting the AD as proposed except for minor editorial corrections. We have determined that these minor corrections:
Are consistent with the intent that was proposed in the NPRM for correcting the unsafe condition; and
Do not add any additional burden upon the public than was already proposed in the NPRM.
Costs of Compliance
We estimate that this AD will affect 243 airplanes in the U.S. registry and will reduce costs by $12.8 million because the costs of the repetitive inspections currently required by AD 2006-24-11 will exceed the required modification costs over the life of the affected airplanes.
We estimate the following direct costs (the sum of labor and parts costs) to do the inspections:
Labor Cost
Parts Cost
Total Direct Cost Per Airplane
Total Direct Cost on U.S. Operators
10 work-hours X $80 per hour = $800
$20
$820
$199,260
We estimate the following direct costs to do the modification:
Labor Cost
Parts Cost
Total Direct Cost Per Airplane
Total Direct Cost on U.S. Operators
250 work-hours X $80 per hour = $20,000
$2,200
$22,200
$5,394,600
Given an average usage rate of 1,571 hours time-in-service, AD 2006-24-11 requires approximately 7.9 inspections a year. The approximate annual cost of these repetitive inspections is $6,500. Based on these figures, a cost savings from incorporating the modification instead of doing the repetitive inspections will occur after 5 years on average. That is, the cost savings on the repetitive inspections no longer required will be greater than or equal to the total cost of the modification.
The results of our cost analysis are summarized in the table below. (See docket for full analysis.)
Amount per Airplane
Total--U.S. Operators
Direct Costs (the sum of labor and parts)
*$22,200
*$5,394,600
Out-of-Service Costs (average)
*$1,796
*$436,510
Total Costs
*$23,996
*$5,831,110
Cost savings over the life of the airplane on AD 2006-24-11 repetitive inspections that would no longer be required after modification
**$76,638
**$18,622,984
Net Cost Savings
$52,641
$12,791,873
* Per airplane costs are shown rounded to the nearest dollar. Consequently, the corresponding totals for all U.S. operators may differ slightly from the per airplane costs multiplied by the total number of airplanes.
** Cost savings over the life of the airplane are calculated as follows. For each affected airplane, we use the airplane's estimated usage rate to estimate the number of inspections a year and multiply that figure by $820 to estimate inspection cost a year. (As noted above,such estimates average to 7.9 inspections a year and about $6,500 in annual inspection costs.) We then calculate a 7 percent annuity factor for the number of years of the airplane's life remaining to a presumed retirement age of 40. In calculation of the annuity factor, we assume annual inspection costs are discounted at mid-year. The present value of the inspection costs can then be calculated as the annual inspection cost multiplied by the years-to-40 annuity factor.
Notes: This analysis assumed January 1, 2009, as the effective date of the AD and discount cost savings to that date. Updating to January 1, 2010, to be closer to the actual effective date will have little effect on the results. Costs are undiscounted, as we assume compliance as soon as the AD becomes effective.
These results are based on the assumption that the life-span of the airplanes affected by this AD is 40 years. This assumption is not crucial to the cost-beneficial nature of the rule, since 95 percent of the affected airplanes achieve cost savings on or before age 30.
Authority for This Rulemaking
Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, Section 106 describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency's authority.
We are issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701, "General requirements.'' Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this AD.
Regulatory Flexibility Determination
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 objective 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 that principle, the RFA requires agencies to solicit and consider flexible regulatory proposals and to explain the rationale for their actions. 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 proposed or final 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 proposed or final rule is not expected to havea 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 FAA did make such a determination for this AD. The basis for this determination is now discussed.
This AD will supersede existing AD 2006-24-11. The cost analysis for this AD shows that the modification will have a cost savings from the accumulative repetitive inspection cost now required in AD 2006-24- 11, reflecting cost savings for 241 of the 243 affected airplanes. For the two firms that own the two airplanes where the analysis did not show a cost savings, we have identified one as a subsidiary of General Electric Capital Corporation and the other as the subsidiary of a firm that is probably large. General Electric Capital Corporation is not a small entity. We were unable to determine the size classification of the other firm. Even if the corporate parent of the unidentified firm is a small firm, this AD will impact at most one firm, and one firm is not a substantial number.
Therefore, the Acting FAA Administrator certifies that this rule will not impose a significant economic impact on a substantial number of small entities.
Regulatory Findings
We have determined that this AD will not have federalism implications under Executive Order 13132. This AD will 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.
For the reasons discussed above, I certify that this AD:
1. Is not a "significant regulatory action'' under Executive Order 12866;
2. Is not a "significant rule'' under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and
3. Will not have a significant economic impact, positive or negative, on a substantial number of small entities under thecriteria of the Regulatory Flexibility Act.
We prepared a summary of the costs to comply with this AD (and other information as included in the Regulatory Evaluation) and placed it in the AD Docket. You may get a copy of this summary by sending a request to us at the address listed under ADDRESSES. Include "Docket No. FAA-2009-0165; Directorate Identifier 2008-CE-055-AD'' in your request.
List of Subjects in 14 CFR Part 39
Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.
Adoption of the Amendment
Accordingly, under the authority delegated to me by the Administrator, the Federal Aviation Administration amends part 39 of the Federal Aviation Regulations (14 CFR part 39) as follows:
PART 39--AIRWORTHINESS DIRECTIVES
1. The authority citation for part 39 continues to read as follows:
Authority: 49 U.S.C. 106(g), 40113, 44701.
Sec. 39.13 [Amended]
2. The FAA amends Sec. 39.13 by removing Airworthiness Directive (AD) 2006-24-11, Amendment 39-14840 (71 FR 70297, December 4, 2006), and adding the following new AD: