Explanatory Statement
Civil Aviation Safety Regulations 1998
CASA EX19/26 — Authorised Maintenance at Unapproved Locations (Part 145 Organisations) Exemption 2026
Purpose
The purpose of CASA EX19/26 — Authorised Maintenance at Unapproved Locations (Part 145 Organisations) Exemption 2026 (the instrument) is to provide a vehicle for Part 145 organisations (AMOs) wishing to carry out line maintenance on a temporary basis on aircraft at locations for which they are not approved (unapproved locations). The Part 145 Manual of Standards (Part 145 MOS) is currently under review so that this may be addressed in that MOS and, once that has taken place, the instrument will no longer be needed. The measure is sought to be expedited by this instrument due to the considerable number of AMOs seeking not to comply with Part 145 of the Civil Aviation Safety Regulations 1998 (CASR) in this regard and the corresponding numbers of exemption instruments issued by the Civil Aviation Safety Authority (CASA) to those AMOs.
The instrument renews the exemption in CASA EX03/23 — Authorised Maintenance at Unapproved Locations (Part 145 Organisations) Exemption 2023 (CASA EX03/23).
Legislation
Section 98 of the Civil Aviation Act 1988 (the Act) empowers the Governor-General to make regulations for the Act and in the interests of the safety of air navigation. Relevantly, the Governor-General has made CASR. Paragraph 98(5A)(a) of the Act provides that the regulations may empower CASA to issue instruments in relation to matters affecting the safe navigation and operation, or the maintenance, of aircraft.
Provisions of CASR relating to the making of the instrument
Under subregulation 11.160(1) of CASR, for subsection 98(5A) of the Act, CASA may grant an exemption from compliance with a provision of CASR. Subregulation 11.175(4) of CASR provides that in deciding whether to renew an exemption, CASA must regard the preservation of at least an acceptable level of aviation safety as paramount. CASA may have regard to the same consideration in deciding whether to renew an exemption on its own initiative.
Under subregulation 11.205(1) of CASR, CASA may impose conditions on an exemption if necessary in the interests of the safety of air navigation. Regulation 11.210 makes it an offence of strict liability (with a maximum penalty of 50 penalty units) to fail to comply with a condition of an exemption.
Under regulation 11.225 of CASR, an exemption must be published on the internet. The maximum duration of an exemption is, under subregulation 11.230(1), 3 years.
Provisions of CASR relating to the substance of the exemptions
Part 145 of CASR deals with AMOs. It confers powers on CASA to issue a Manual of Standards for Part 145 of CASR and to approve an applicant as an AMO.
Subregulation 145.010(2) contains a definition of the term significant change in relation to an AMO. Under paragraph 145.010(2)(b), a change to the location of the AMO’s maintenance facility, including the addition of a new maintenance facility, constitutes a significant change. The ordinary natural meaning of “new” in that context is a facility not used before, thus capturing a facility at an unapproved location. Without an exemption from this provision, a significant change application would need to be made for the use of an unapproved location.
Under paragraph 145.010(2)(f), a change to the AMO’s facilities, equipment, tools, materials, procedures or certifying employees that could adversely affect the AMO’s ability to provide maintenance services that it is approved to provide is a significant change.
Under subparagraph 145.045(a)(iv), it is a condition of approval of an AMO that it must, at all times, comply with the requirements of any limitations applying to its approval rating. Subparagraph 145.045(a)(v) makes it a condition of approval of an AMO that it must, at all times, comply with the Part 145 MOS. Under subparagraph 145.045(a)(vi), it is a condition of approval of an AMO that it must, at all times, comply with the requirements of Part 145.
Under paragraph 145.045(b), it is a condition of approval of an AMO that it must ensure that, at all times, its employees comply with the requirements mentioned in paragraph 145.045(a).
Subregulations 145.050(1), (2) and (3) set out the manner and form of applications for approval of a significant change. If a significant change is made without an application having been made, the AMO will be in breach of a condition, under regulation 145.045, of its approval as an AMO.
Paragraphs 145.070(1)(d) and (e) require an AMO to provide maintenance services only in accordance with the limitations applying to its approval rating and the privileges that apply to its approval rating under the Part 145 MOS.
Provisions of the Part 145 MOS
Subparagraph 145.A.70(a)10 of the Part 145 MOS requires an AMO to have an exposition that includes a statement of the capability of the AMO to perform a maintenance service for which it is approved under Appendix I and the main and other locations at which it can perform those services.
Section 145.A.75 of the Part 145 MOS sets out the privileges of an AMO that are in addition to the privileges set out in regulation 145.040 of CASR. In particular, under paragraph 145.A.75(b), an AMO may provide maintenance services for an aircraft or aeronautical product for which the AMO is approved in accordance with Appendix I at a place other than a line station described in its exposition if the aircraft is unserviceable or the AMO needs to perform unscheduled line maintenance, subject to any conditions specified in the AMO’s exposition. However, the privileges do not extend to carrying out all authorised maintenance, as defined in the instrument, at an unapproved location.
Appendix I of the Part 145 MOS sets out the approval class and ratings system for AMOs, including limitations. Clause 1 of Appendix I states that Table 1 outlines the “full extent of approval possible” for an AMO. In other words, Appendix I is an exhaustive statement of the scope of approvals for AMOs. It is the limitations included in Appendix I that restrict maintenance services to those at identified “line” or “base” locations. Unapproved locations are not contemplated by Appendix I.
Background
AMOs are currently prevented by Part 145 of CASR and the Part 145 MOS from carrying out line maintenance at unapproved locations.
This is regarded as problematic by AMOs as they are prevented from carrying out comparatively lower safety risk tasks, such as terminating line maintenance inspections and pre‑flight inspections, because the locations have not been approved. Paragraph 145.A.75(b) of the Part 145 MOS affords a certain degree of flexibility in allowing AMOs to provide maintenance services in locations other than line stations described in their expositions, but only where aircraft are unserviceable or where the AMO needs to perform unscheduled line maintenance. The instrument seeks to cover situations in which the aircraft will not be unserviceable and the line maintenance will not be unscheduled.
In the past, AMOs have carried out occasional line maintenance at unapproved locations under regulation 30 of the Civil Aviation Regulations 1988 (CAR) by a combination of a certificate of approval and the organisation’s Engineering Procedures Manual. However, the AMO landscape has since transitioned to Part 145 of CASR and regulation 30 of CAR is no longer being used for that purpose.
AMOs have also addressed this situation by entering into formal contractual agreements with third parties to obtain access to suitable maintenance facilities and entering those facilities in their exposition. However, the ongoing upkeep and oversight of these facilities is disproportionately onerous on AMOs given their infrequent use.
More recently, AMOs have carried out these activities under exemption instruments issued to them on a case-by-case basis by CASA. The most recent example of such an instrument was CASA EX86/22 — Authorised Temporary Maintenance at Unapproved Locations (Virgin Australia Regional Airlines Approved Maintenance Organisation) Exemption 2022, which conferred the right to conduct these kinds of activities on Virgin Australia Regional Airlines AMO. Until the commencement of CASA EX03/23, there was a growing group of AMOs that had sought similar exemptions. Accordingly, CASA considered it appropriate to address this need and legislative shortfall by means of the general exemptions in CASA EX03/23.
The relief afforded by the instrument has, for some years, been reflected in international jurisdictions, for example, by the European Union Aviation Safety Agency in EASA Commission Regulation (EU) No 1321/2014, Annex II, section 145.A.75.
The measure in the instrument is expected to eventually be incorporated within Part 145 of CASR and the Part 145 MOS, and this is currently under preparation. At that time, it is anticipated that the instrument would no longer be needed.
Overview of instrument
The instrument provides relief to AMOs seeking to carry out line maintenance at unapproved locations on a temporary basis. It does this by way of exemptions from compliance with certain provisions of CASR, and by a range of conditions of exemption that provide safeguards for the new rights. AMOs will first need to have their processes for this documented in their expositions and approved by CASA as a significant change under regulation 145.050 of CASR.
In considering whether to grant the exemption, CASA has regarded as paramount the preservation of at least an acceptable level of aviation safety. This measure will provide relief for AMOs that CASA does not consider will adversely affect aviation safety.
Content of instrument
Section 1 sets out the name of the instrument.
Section 2 provides that the instrument commences on 1 March 2026 (to coincide with the repeal of CASA EX03/23) and be repealed at the end of 28 February 2029.
Section 3 sets out the definitions for the instrument. AMO means a Part 145 organisation which in turn is defined in Part 1 of the CASR Dictionary as a person who holds an approval under regulation 145.030 that is in force. AMO aircraft is defined as an aircraft for which the AMO provides maintenance services under its exposition.
The expression authorised maintenance is defined to mean line maintenance (whether or not also including certain related on-wing maintenance) conducted at a location on a temporary basis. The Part 145 MOS is defined as the Part 145 Manual of Standards, which in turn is defined in Part 3 of the CASR Dictionary. An unapproved location is defined for an AMO as a location that is capable of supporting line maintenance, but not specified as such in the AMO’s exposition as required by subparagraph 145.A.70(a)10 of the Part 145 MOS.
Subsection 4(1) provides that an AMO is exempt from compliance with subparagraphs 145.045(a)(iv) and (v) and paragraphs 145.045(b) and 145.070(1)(d) and (e) of CASR (when taken together with section 145.A.75 and Appendix I of the Part 145 MOS), but only in relation to the AMO carrying out authorised maintenance on an AMO aircraft at an unapproved location. Subsection 4(2) imposes conditions of the exemption on the AMO.
Subsection 5(1) provides that an AMO is exempt from compliance with subregulations 145.050(1), (2) and (3) of CASR (when taken together with paragraph (b) of the definition of significant change in subregulation 145.010(2) of CASR) but only in relation to the AMO carrying out authorised maintenance on an AMO aircraft at an unapproved location without first having applied, or received CASA’s approval, for the significant change in relation to the location. The exemption is required because if an AMO uses an unapproved location for the line maintenance, that location (despite being unapproved) could be interpreted as a change to the location of the AMO’s maintenance facility under paragraph (b) of the definition of significant change. As such, the AMO would require prior approval of the location under regulation 145.050 each time such an unapproved location was proposed to be used.
A similar exemption is included at subsection 5(2) of the instrument in relation to the use of an unapproved location for carrying out the kinds of maintenance services currently authorised for such locations under paragraph 145.A.75(b) of the Part 145 MOS (that is, if the aircraft is unserviceable or the AMO needs to perform unscheduled line maintenance). The need for this exemption is based on the interpretation mentioned in the paragraph above which would, without an exemption, attract the significant change requirements.
Section 6 sets out the conditions of the exemption under section 4 that the AMO is required to ensure compliance with. These require that:
(a) the maintenance is of a kind authorised by the AMO’s exposition as appropriate to be performed at an unapproved location of that kind; and
(b) the AMO’s exposition includes detailed procedures for:
(i) carrying out maintenance of that kind at an unapproved location of that kind; and
(ii) record keeping for maintenance of that kind; and
(iii) selecting suitable locations for carrying out maintenance of that kind; and
(c) the maintenance is performed in accordance with the AMO’s quality management system and safety management system and the procedures and other conditions applying to the maintenance under the AMO’s exposition; and
(d) records of the maintenance carried out are kept in accordance with the record keeping procedures in the AMO’s exposition for maintenance of that kind; and
(e) information is provided to CASA, on request, relating to:
(i) any unapproved location at which the maintenance is carried out; and
(ii) any maintenance carried out at the unapproved location.
A note alerts readers of the instrument that the inclusion in an AMO’s exposition of the required procedures constitutes a significant change mentioned in paragraph 145.010(2)(f) of CASR. Accordingly, the change requires CASA’s approval under regulation 145.050.
Section 7 of CASA EX03/23 provided a transitional provision for AMOs that were authorised, by way of exemption instrument granted by CASA to the AMO, to carry out maintenance that fell within the definition of authorised maintenance in section 3 on an aircraft at an unapproved location. That transitional provision is not required in this instrument as all such exemption instruments have since been repealed. The instrument removes the need for an AMO to apply for such an exemption.
Legislation Act 2003 (the LA)
Paragraph 98(5AA)(a) of the Act provides that an instrument issued under paragraph 98(5A)(a) is a legislative instrument if the instrument is expressed to apply in relation to a class of persons. The exemptions in the instrument have potential application to all AMOs. This constitutes a class of persons. The instrument is, therefore, a legislative instrument, and is subject to tabling and disallowance in the Parliament under sections 38 and 42 of the LA.
Sunsetting
Part 4 of Chapter 3 of the LA (the sunsetting provisions) does not apply to the instrument because the instrument relates to aviation safety and is made under CASR (item 15 of the table in section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015). In any case, this instrument will be repealed at the end of 28 February 2029, which will occur before the sunsetting provisions would have repealed the instrument if they had applied. Any renewal of the instrument will be subject to tabling and disallowance in the Parliament under sections 38 and 42 of the LA. Therefore, the exemption from sunsetting does not affect parliamentary oversight of this instrument.
Consultation
CASA has undertaken consultation under section 17 of the LA.
The temporary locations issue was identified through the Part 145 Post Implementation Review (PIR). The underlying policies for this instrument were developed through the Part 145 PIR work and the ongoing regulatory reform work to develop more practical, proportionate and scalable rules for maintenance organisations. The policies were consulted during November and December 2019 as part of Policy Proposal (PP 1915SS), which set out proposed future continuing airworthiness management and maintenance policies for operators, maintenance providers and people providing continuing airworthiness management services in the charter (air transport) sector. Since the consultation of Policy Proposal (PP 1915SS) closed in December 2019, additional consultation with the aviation industry has been performed through a series of meetings of the Air Transport Continuing Airworthiness Technical Working Group and the Aviation Safety Advisory Panel, which include representatives of the aviation industry.
A draft of CASA EX03/23 and an overview document were published on the CASA website on 3 November 2022 for public consultation until 10 November 2022. The feedback was overwhelmingly positive.
Affected industry participants have indicated an ongoing need for the exemption.
CASA is, therefore, satisfied that no further consultation is appropriate or reasonably practicable for this instrument for section 17 of the LA.
Sector risk, economic and cost impact
Subsection 9A(3) of the Act states that, subject to regarding the safety of air navigation as the most important consideration, in developing and promulgating aviation safety standards under paragraph 9(1)(c) of the Act, CASA must:
(a) consider the economic and cost impact on individuals, businesses and the community of the standards; and
(b) take into account the differing risks associated with different industry sectors.
The cost impact of a standard refers to the direct cost (in the sense of price or expense) which a standard would cause individuals, businesses and the community to incur. The economic impact of a standard refers to the impact a standard would have on the production, distribution and use of wealth across the economy, at the level of the individual, relevant businesses in the aviation sector, and the community more broadly. The economic impact of a standard could also include the general financial impact of that standard on different industry sectors.
The instrument will have a beneficial impact on AMOs that are considering undertaking line maintenance at a temporary location. Without the proposed exemption, these organisations would either not be able to undertake the maintenance at the temporary location or would be required to apply to CASA for approval to include the temporary location as a location at which they are permitted to undertake line maintenance. This involves an administrative time burden on the AMOs in seeking the approval and a delay while CASA assesses the application.
By allowing an AMO to carry out authorised maintenance at an unapproved location, there will be positive change to the economic or cost impact on individuals, businesses and the community and the aviation operating environment will be brought into closer alignment with international standards.
There are no negative impacts on industry as the application and take up of the exemptions in the instrument are optional.
Impact on categories of operations
The instrument will have a beneficial effect on AMOs and the aircraft operators to which they provide maintenance services.
Impact on regional and remote communities
CASA does not have direct evidence of there being a disproportionate impact in regional or rural areas. However, to the extent that the areas chosen as temporary locations for maintenance of aircraft are in regional or rural areas, the instrument will facilitate the provision of aviation services in these areas at a slightly lower administrative cost to industry and may encourage a slight increase in line maintenance in regional or rural areas.
Office of Impact Analysis (OIA)
An Impact Analysis (IA) is not required in this case as the instrument is covered by a standing agreement between CASA and OIA under which an IA is not required for exemptions (OIA reference number: OIA23-06252).
Statement of Compatibility with Human Rights
A Statement of Compatibility with Human Rights is at Attachment 1.
Making and commencement
The instrument has been made by a delegate of CASA relying on the power of delegation under subregulation 11.260(1) of CASR.
The instrument commences on 1 March 2026 and is repealed at the end of 28 February 2029.
Attachment 1
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
CASA EX19/26 — Authorised Maintenance at Unapproved Locations (Part 145 Organisations) Exemption 2026
This legislative instrument is compatible with the human rights and freedoms
recognised or declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the legislative instrument
Part 145 organisations (AMOs) are approved under Part 145 of the Civil Aviation Safety Regulations 1998 (CASR) to provide maintenance services for aircraft and aeronautical products. The legislative instrument would exempt AMOs from provisions of CASR that currently prevent those organisations from conducting line maintenance of aircraft, on a temporary basis, at locations for which they are not approved by the Civil Aviation Safety Authority (CASA). Several similar instruments have been granted on a case-by-case basis to individual AMOs in the past. The measure is now being enacted as a general exemption until such time as CASR and the Part 145 Manual of Standards can be amended.
A range of conditions of the exemptions provide safeguards for the new rights. AMOs will first need to have their processes for carrying out this kind of maintenance documented in their expositions and approved by CASA as a significant change under regulation 145.050 of CASR.
Human rights implications
This legislative instrument does not engage any of the rights or freedoms.
Conclusion
This legislative instrument is compatible with human rights as it does not raise any human rights issues.
Civil Aviation Safety Authority