8/14/19

 

8900.1 CHG 674

VOLUME 12  INTERNATIONAL AVIATION

Indicates new/changed information.

CHAPTER 3  AGREEMENTS, ARRANGEMENTS, AUTHORIZATIONS, AND PERMITS

Section 1  Codeshare Safety Program

1.1    GENERAL.

1.1.1    Purpose. This section establishes the Federal Aviation Administration (FAA) responsibilities associated with the U.S. Department of Transportation (DOT)/FAA Codeshare Safety Program. It provides policy guidance to the Flight Standards Service (FS) International Program Division on the responsibilities associated with the codeshare application review process, implementation, administration, audit monitoring, and program oversight of the Codeshare Safety Program.

1.1.2    Scope. This section applies to all FAA headquarters (HQ) and International Field Office (IFO) personnel with responsibilities associated with the DOT/FAA Codeshare Safety Program. This program applies to U.S. carriers operating under Title 14 of the Code of Federal Regulations (14 CFR) part 121 conducting U.S. codeshare service with a part 129 foreign air carrier and foreign domestic and/or international commercial carriers from FAA International Aviation Safety Assessment (IASA) Category (CAT) 1 States. The audit program required by the Codeshare Safety Program is mandated to be used by participating U.S. air carriers certificated under part 119 subpart C. The Codeshare Safety Program agreement is valid for 24 months, date to date.

1.1.3    Program Tracking and Reporting Subsystem (PTRS) Activity Codes. None.

1.1.4    Regulatory References. All regulatory references in this section are found in 14 CFR unless otherwise indicated.

1.2    DEFINITIONS. See Volume 12, Chapter 1, Section 1, Definitions, Abbreviations, and Acronyms, for information associated with this section.

1.3    BACKGROUND. Code sharing is a marketing arrangement in which an airline places its designator code on a flight operated by another airline and sells tickets for that flight. Foreign air carriers from CAT 1 States throughout the world continue to form codeshare arrangements with U.S. air carriers to strengthen or expand their market presence and competitive ability (see paragraph 1.3.2 for a link to the IASA program).

1.3.1    Authority. Title 49 of the United States Code (U.S.C.) § 41302 gives authority to the Office of the Secretary of Transportation (OST) to issue permits to U.S. and foreign air carriers authorizing operations under a codeshare arrangement. Air carriers that wish to operate codeshare services must obtain authorization from the DOT in the form of a statement of authorization found under part 212.

1.3.2    Codeshare List and Other References. Codeshare agreements are being reviewed, authorized, canceled, and implemented on a daily basis. Because of this, an accurate and current codeshare list is normally not available. However, the following information resources are provided:

a)    The DOT U.S. Air Carrier Licensing Division maintains an informal (and not necessarily current) list of codeshare arrangements at https://www.transportation.gov/office-policy/aviation-policy/code-share-report.

b)    The International Program Division maintains the list of FAA recommendations to the DOT on codeshare applications.

c)    Air carriers should be contacted directly for the current implementation status of DOT authorized codeshare arrangements.

d)    Additional Reference Links.

1)    For FAA and public access: International Aviation Safety Assessment (IASA) Program.

2)    For FAA access only:

    DOT/FAA Codeshare Safety Program Guidelines.

    FAA Codeshare Audit Job Aid.

    FAA IOSA Auditor Flight Deck Access Form.

    Quality Management System (QMS) #AFS-050-005, FAA Codeshare Safety Program.

1.4    RESPONSIBILITIES.

1.4.1    FAA. The FAA has multiple responsibilities associated with the DOT/FAA Codeshare Safety Program. The DOT will not authorize a codeshare agreement if it is unable to make a public interest determination regarding the level of safety of the foreign air carrier. The FAA provides the key information for the DOT to make this determination.

a)    IASA Assessment. The FAA must have performed an IASA assessment on the foreign air carrier’s State Civil Aviation Authority (CAA) and found them to meet FAA IASA CAT 1, meaning the CAA meets the International Civil Aviation Organization (ICAO) requirements for State laws, CAA regulations, CAA structure, qualified and trained personnel, adequate training and guideline materials, proper licensing program, safety oversight, and safety promotion (identifies the eight critical elements). A codeshare arrangement with a foreign air carrier will only be authorized by the DOT if the foreign air carrier’s State CAA maintains a CAT 1 rating.

Note:  Only a foreign air carrier of an FAA IASA CAT 1 State CAA may codeshare with a U.S. air carrier. If a State CAA drops from CAT 1, all codeshare agreements with the foreign air carriers of that State are immediately stopped. All codeshare ticketed U.S. passengers must be immediately rebooked to only U.S. air carriers.

b)    New Codeshare Program. When a U.S. air carrier requests participation in the Codeshare Safety Program, the U.S. air carrier must submit a copy of their proposed codeshare manual to the FAA Codeshare Program Manager (CPM) (International Program Division) for review. Upon completion of the FAA’s review, if it is determined that the U.S. air carrier’s program is acceptable, the International Program Division will issue a letter to the carrier confirming acceptance of their Codeshare Safety Program. Programs found unacceptable by the FAA will be returned to the U.S. air carrier with the specific reasons for the determination (see paragraph 1.3.2 for a link to the DOT/FAA Codeshare Safety Program Guidelines).

c)    IFO Review. Internal and public records review of the proposed codeshare with a foreign air carrier is required by the appropriate IFO with geographic oversight of the State of the foreign air carrier. Refer to FAA Aviation Safety (AVS) QMS #AFS-050-005, FAA Codeshare Safety Program, for the specific information required (see paragraph 1.3.2 for a link to QMS # AFS-050-005).

1.4.2    U.S. Air Carrier. The U.S. air carrier is responsible for all requirements associated with their Codeshare Safety Program to include the qualifications of the foreign air carrier(s) with whom they wish to conduct codeshare operations. All requirements must be satisfactorily completed prior to the DOT’s authorization of the codeshare.

a)    International Air Transport Association (IATA) Operational Safety Audit (IOSA). Before a codeshare is authorized, the U.S. air carrier must have accomplished, or had through a third party, an IOSA of the foreign air carrier.

1)    This audit is to ensure the foreign air carrier meets ICAO standards.

Indicates new/changed information.

2)    An IOSA may be accomplished by a U.S. air carrier’s in-house audit team, a third-party audit team approved by IATA, or any other training organization approved by the FAA. The only caveat to all audit teams is that they must be trained in auditing procedures and means, with yearly recurrent training, as well as knowledgeable on all ICAO standards, except Annex 12 (Search and Rescue) and Annex 17 (Security).

Note:  A “Third Party Auditor” is an auditing organization (AO) that has been trained to a standard set by IATA that has been accepted by the FAA and other CAAs. Some U.S. air carriers have internal audit teams that accomplish the same audits at the discretion of the airline.

b)    Statement of Compliance. Under the U.S. air carrier’s Codeshare Safety Program audit requirements, a Statement of Compliance letter is completed after successfully completing an audit of the foreign air carrier. The letter declares that their (potential) codeshare partner meets international standards. The Statement of Compliance is signed by the U.S. air carrier’s Director of Safety (or equivalent) and must be forwarded with the foreign air carrier’s codeshare application to the DOT. The Statement of Compliance is valid for the same 24 months, date to date, as the codeshare agreement.

c)    The FAA Codeshare Audit Job Aid. The FAA codeshare audit job aid is completed by the U.S. air carrier safety program manager in preparation for the International Program Division’s review of the completed IOSA on the U.S air carrier’s (potential) codeshare partner. The details are gathered from the closed IOSA. The posted date on the form is the date the audit is reviewed by the International Program Division’s CPM and is kept as part of the final package which will include the foreign air carrier’s Air Operator Certificate (AOC) and the Statement of Compliance from the U.S. air carrier.

d)    IOSA Auditor Flight Deck Access Form. This form is intended for use by Principal Operations Inspectors (POI) in the process of requesting authorization for the AO auditor(s). The form authorizes access to those auditors needing flight deck access of the airline they are auditing under an IOSA, following policy and procedures found in Volume 3, Chapter 2, Section 1. These auditor(s) will complete the portion of the IOSA process needed to be accomplished observing airline routes from the cockpit. The auditor is to observe standardization of approved and trained procedures on routes sampling the size and scope of the carrier’s operations. In utilizing the form, the POI is ensured to receive the required current documents from the auditor and the letter from the air operator requesting the IOSA. The AO package for the POI will include:

    Letter of intended audit with the proposed dates for the IOSA (block dates not to include 2 weeks);

    Copy of current Commercial Pilot License (minimum level of commercial license is required);

    Copy of current driver’s license;

    Copy of current passport; and

    Copy of current training as a qualified jump seat auditor.

e)    Complete the Process. From the day the POI delivers the complete AO package and copy of the IOSA Auditor Jump Seat Job Aid to the Air Transportation Division, the division has a maximum of 45 calendar-days to complete the process and prepare and send the Letter of Authorization (LOA) for the auditor to complete the audit tasks from the jump seat.

f)    Coordinate with the FAA. The U.S. air carrier must contact the International Program Division to review the audit ensuring all findings were closed with appropriate actions and signed off closed by the AO. The International Program Division completes all appropriate paperwork and sends it to the DOT within the allotted 10 business-days. The DOT completes their process and issues an LOA to the foreign air carrier allowing the codeshare with the U.S. air carrier.

g)    Monitor Codeshare Partner. The U.S. air carrier is mandated to continuously monitor their codeshare partner to ensure their partner meets ICAO standards throughout the 2-year agreement.

1.4.3    Foreign Air Carrier. Before a foreign air carrier can operate as a codeshare partner to a U.S. air carrier, the foreign air carrier and their State must meet the following requirements:

a)    The State of the Operator must attain and maintain an FAA IASA CAT 1 rating.

b)    The foreign air carrier must hold economic authority as approved by the DOT if flying into the United States.

c)    The foreign air carrier has completed an IOSA in accordance with the DOT’s Codeshare Program Guidelines. The audit must be conducted, completed, and all findings satisfactorily cleared by the audited carrier to close out the audit. This must be completed prior to the FAA’s review of the IOSA.

d)    The foreign air carrier must have received a current LOA to initiate or continue a codeshare program with the U.S. air carrier.

1.5    PROCEDURES.

1.5.1    Quality Management System (QMS). Refer to FAA QMS #AFS-050-005 for specific procedures and metrics requirements.

1.5.2    FAA Memorandum to the DOT. The DOT must be notified upon completion of all FAA review requirements. Refer to the DOT/FAA Codeshare Safety Program Guidelines and FAA QMS #AFS-050-005 for FAA-associated requirements.