TESTIMONY FOR THE RECORD

STEPHEN A. ALTERMAN
CARGO AIRLINE ASSOCIATION

BEFORE THE SUBCOMMITTEE ON AVIATION
OF THE
COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

U.S. HOUSE OF REPRESENTATIVES

FEBRUARY 27, 2018

“STATE OF AVIATION SAFETY”

Mr. Chairman and Members of the Subcommittee:

My name is Steve Alterman and I am the President of the Cargo Airline Association, the nationwide organization representing the interests of the all-cargo segment of the aviation community.[1] Thank you for holding this very important hearing on the topic of aviation safety. The all-cargo carrier industry puts safety as a top priority and we appreciate the opportunity to discuss some of the issues we are currently focused on.

The all-cargo carriers, and the customers and airports they serve, are a unique segment of the aviation marketplace. Our member carriers have annual revenues over $100 billion and employ upwards of one million workers worldwide.[2] Customers depend on our services to transport high value, time sensitive, products such as medical devices and perishables, computers and other electronics, and automobile parts. In calendar year 2016, all-cargo carriers operated 89.0% of domestic revenue ton miles (RTMs) and 70.8% of international RTMs.[3] While passenger and cargo airlines fly similar aircraft, takeoff and land from the same airports, and fly over the same cities, they operate entirely different business models with different operational characteristics. Therefore, by recognizing that the all-cargo segment of the air transportation industry is unique, the Federal Aviation Administration (FAA) has correctly determined that in many cases a one-size-fits-allregulatory scheme is not appropriate. This thought was echoed by former Administrator Randy Babbitt at an ALPA Safety Conference when he stated, “In rulemaking, not only does one size not fit all, but it’s unsafe to think that it can.” When it comes to safety, it is important to consider the differences between cargo and the rest of the aviation industry.

Flight and Duty Time Regulations

One area where somewhat different regulations apply to the all-cargo carriersare the flight and duty time rest regulations. Initially, it should be noted that the safety record of all-cargo pilots in the fatigue area under Part 121 is impeccable and the FAA has determined that these regulations need not be changed for the all-cargo operators. There are several safety-related reasons for this conclusion. For example,all-cargo operations are different in that we provide more and longer flightcrew member rest opportunities than passenger counterparts; we have invested the necessary resources to make sure we have the best possible sleep facilities both at cargo hubs and aboard long-range aircraft; we operate without passengers or flight attendants thereby allowing more restful sleep aboard long-range aircraft; and perhaps most significantly, we schedule pilots for an average of 34 hours per month (in the express segment) and 45.5 hours per month (in the heavy freight segment) while passenger carrier pilots fly over 60 hours each month[4].

Looking objectively at safety, operating under the existing Part 121 regulations, the all-cargo industry has operated millions of flights with no fatigue-related accidents attributable to crew scheduling. Further, in the two accidents where fatigue was listed by the National Transportation Safety Board (NTSB) as the cause or contributing factor, neither of these accidents would have been prevented by the Part 117 rules.

The Federal Aviation Administration (FAA) has on three separate occasions carefully analyzed changing the rest rules and in each case found virtually no benefit in applying the passenger fatigue rules to all-cargo carriers. Additionally, on March 24, 2016, the U.S. Court of Appeals for the District of Columbia denied the Independent Pilots Association's Petition to force the FAA to change the rules,finding that the FAA acted reasonably in its decision to exempt all-cargo pilots from Part 117 passenger pilot rest rules. In denying the IPA’s petition, the D.C. Circuit concluded, “Because the FAA adequately and reasonably considered all relevant factors, we also conclude that the FAA’s cost-benefit analysis was not arbitrary or capricious”.

Pilot Training

With respect to required pilot training issues, the Cargo Airline Association supports the FAA’s authority to create additional structured training pathways for credit toward the airline transport pilot certificate (ATP) flight hour requirements. Current language in the Senate version of the Federal Aviation Administration Reauthorization Act of 2017, allows for such pathways and stipulates these additional structured training pathways may only be considered and approved by FAA if they improve safety. Rather than simply requiring 1,500 hours of flying, which may be accomplished by pilots logging flight time in various scenarios that may have little to do with experiences encountered in the commercial world, training flexibility can subject future pilots to fight situations that would not otherwise be encountered by simply flying a required number of hours. Safety would thereby be enhanced by having pilots entering commercial operations better equipped to deal with potential challenging flight operations. Anecdotal evidence already reveals that those meeting the 1,500-hour threshold, but with no other training, are failing initial tests at a rate much higher than before the 1,500-hour requirement was imposed.

To be clear, we are not advocating for a change in the hours required, it simply allows additional pathways to meet the 1,500-hour requirement. The looming pilot shortage cannot simply be ignored and Congress should therefore consider ways to address this problem. In the express cargo environment, where carriers rely heavily on regional feeder operations, we are already encountering situations where there are not enough pilots to fly the feeder aircraft. Large cargo carriers, which depend on hiring pilots from the regional carriers, are looking at their own significant shortages in the next few years. We hope Congress will consider new approaches to addressing the pilot shortage while preserving safety.

The Safe Transport of Lithium Batteries

The all-cargo carrier industry recognizes it is essential to be able to transport lithium batteries and other hazardous materials in the safest manner possible. As a practical matter, all-cargo aircraft operate as part of a global freight network serving hundreds of countries worldwide. In order to transport lithium batteries in the most safe and secure manner, our members rely on harmonized international regulations that allow for their seamless transport across the globe.

Congress recognized the importance of international harmonization when it included Section 828 in the bipartisan FAA Modernization and Reform Act of 2012. The bill ensured U.S. harmonization for the regulation of lithium ion and metal batteries with those regulations set by the ICAO Technical Instructions for the Safe Transportation of Dangerous Goods by Air. Harmonized rules are essential because if different rules were adopted, it would lead toa patchwork of regulatory environments, creating confusion and unnecessary complication in the international marketplace and thereby jeopardize safety. Additionally, shippers who are overburdened with the resulting complexity may attempt to avoid U.S. specific rules by not properly declaring battery shipments or may choose to “go underground” to avoid the rules entirely. The all-cargo carriers believe that absent Section 828, there could be an effort to issue U.S. specific rules which do not necessarily confront the safety challenges that exist.

The education of shippers, oversight and enforcement of existing regulations, and focus on counterfeit and undeclared hazardous materials shipments are where we see the most needed attention. Increasing the emphasis on resources given to the DOT for the enforcement of existing regulations against entities who willfully or recklessly flaunt the rules would be something the whole industry may agree on. In certain areas of the world, labeling and packaging of lithium battery shipments are ignored leaving a real threat to aviation safety. The concern exists that counterfeit and non-compliant batteries are entering the supply chain and rarely are these batteries properly declared, while many times they come from unlicensed and unaffiliated manufacturers. Therefore, the U.S. needs a continued focus to emphasize the importance of enforcement for these manufacturers and shippers.

In the U.S., PHMSA is the agency with responsibility for promulgating hazardous materials regulations for all modesand does so with significant and formalized input from the modal agencies such as the FAA, and the general public. PHMSA is uniquely positioned to provide expertise on hazardous materials regulation. Additionally, PHMSA serves as the U.S. representative for the development of the UN Model Regulations on the Transport of Dangerous Goods, which serve as core text that leads to the development of modal regulations like the ICAO Technical Instructions. They are ultimately responsible for incorporating the ICAO standards into national law. PHMSA approaches its participation in ICAO in a similar manner as it does domestically, working closely with the FAA and affected industries to ensure the regulations adopted by ICAO achieve an appropriate safety objective. Given PHMSA’s track record at the UN and expertise in both promulgating domestic regulations and incorporating international standards, their participation in ICAO as the lead U.S. representative is appropriate.

Conclusion

The members of the all-cargo air carrier industry continue to make safety their top priority in many cases going above and beyond the basic standards set by the FAA. Thank you for the opportunity to comment and I am happy to answer any further questions.

Respectfully Submitted,

Stephen A. Alterman

President

March 13, 2018

[1] Association members include direct air carriers: ABX Air, Atlas Air, Federal Express Corporation, Kalitta Air and United Parcel Service Co., as well as Associate Members: Amazon, Cincinnati/Northern Kentucky International Airport, DHL Express, Memphis International Airport, Louisville International Airport, Ft. Wayne International Airport, John Glenn Columbus International Airport, Spokane International Airport and the Alaska International Airport System.

[2]Survey of Association members.

[3]FAA Aerospace Forecast, 2016-2036, March 2016.

[4] FAA Initial Supplemental Regulatory Analysis, December 7, 2012.