FAA Issues Rule Requiring Airlines to Utilize Safety Management Systems

On Tuesday (Jan. 6, 2014), the Federal Aviation Administration (FAA) issued a final rule requiring most U.S. airlines to implement Safety Management Systems (SMS) by 2018, according to an FAA press release. SMS is a formal, organization-wide approach that assists in managing safety risks by providing airlines a set of business procedures to compile data from everyday operations, the FAA press release explained. With this data, airlines are able to isolate trends that may be precursors to accidents and may thus be in a better position to mitigate those dangers at early stages, according to the Aviation Safety Network. In short, SMS describes “what” is expected of airlines and their employees, rather than “how,” which is left to airlines themselves, the Aviation Safety Network reported. The rule stipulates that commercial airlines must submit their plans for implementing their SMS within six months, according to the FAA press release. Further, the rule requires each commercial airline to appoint a single, accountable executive to oversee its SMS, the Aviation Safety Network reported. Many commercial airlines already have an SMS in place voluntarily, which has contributed to an 83 percent reduction in fatality risks in the United States for commercial air travel between 1998 and 2008, according to the FAA press release. This new rule will reportedly cost commercial airlines approximately $224.3 million over the next 10 years, but will benefit those airlines ranging from $205 million to $472.3 million over that time period, according to the Aviation Safety Network.