Some Things Are Constant

As I write this in early November, the presidential election and Senate control remain unresolved (though Democratic hopes of taking control of the Senate seem dashed). Voters left the House in Democratic hands, albeit with a smaller majority.

While we may see some big changes in the weeks ahead at both ends of Pennsylvania Avenue, some things are constant. Among them are ARSA’s tireless advocacy for the maintenance industry and the priorities that drive the industry’s engagement with U.S. lawmakers.

Here’s a quick look at what’s ahead in key areas:

Eighty percent of ARSA summer survey respondents reported revenue declines in the first half of the year. The average was 46 percent. ARSA projected the industry’s workforce was slashed by 27 percent in the first half of 2020, a loss of more than 50,000 jobs.

Those numbers are terrible, but without the CARES Act they would probably be much worse. Many survey respondents reported tapping into either the Paycheck Protection (PPP) or Air Carrier Worker Support (aka payroll support) Programs. More than half anticipated using the employee retention tax credit and other CARES Act preferences.  But with more job losses looming, the federal government needs to do more.

ARSA began calling for additional relief even before the ink on the CARES Act was dry.  We’re asking Congress to extend PPP and payroll support, expand eligibility under the latter to include airline maintenance providers not located on airports and protect businesses from frivolous COVID lawsuits. We’re also advocating for a new public-private partnership program that would provide up to half the compensation for aircraft manufacturer and repair station workers deemed to be at-risk of layoffs due to the pandemic.

The election results will dictate what happens between this writing and the end of the 2020. If Biden wins, another major relief bill will likely have to wait until early next year. If Trump wins, there’s a strong possibility the administration and congressional leaders will pick up negotiations where they left off in October and try to get a deal done before the end of the year.

Prior to COVID, the maintenance industry faced a severe technical talent shortage. Given all the workers that have left in the industry in the past nine months, we’ll be in an even worse position when business conditions recover. ARSA is therefore continuing to make workforce development a priority. 

The FAA announced in September that the maintenance recruitment and training grant program created at ARSA’s urging by the 2018 FAA bill would be up and running by the end of November 2020. It will provide $5 million per year (in grants of up to $500,000) to schools, governmental entities and businesses and/or unions that jointly pursue creative workforce initiatives. Aside from monitoring FAA’s implementation, ARSA will also continue to ensure that Congress provides funding annually as part of the appropriations process.

One of the keys to a better aviation workforce is ensuring technician schools can teach about modern technologies through leading edge course delivery. Unfortunately, 14 CFR part 147, the regulation that governs aviation maintenance training schools, hasn’t been updated in five decades. As a result, companies that hire recent graduates spend considerable time and money retraining them. Bipartisan legislation introduced in both the House and Senate would force the FAA to update part 147 by adopting a performance-based standard, giving schools more flexibility and leading to better educational outcomes.

Given bipartisan support, the election outcome will have little impact on these efforts.  The challenge will be keeping Congress focused on these issues in the face of other priorities.

Airline mechanic unions have leveraged their considerable political power to promote anti-contract maintenance legislation. They want to unnecessarily drive up costs for repair stations, make it more difficult for airlines to use them and subvert the various bilateral aviation safety agreements that make compliance and oversight more efficient. 

The Safe Aircraft Maintenance Standards Act (H.R. 5119) is a case in point. It was rammed through the House Transportation & Infrastructure Committee last year. Given that Democrats and their union allies have a stronger hand we expect even more activity on this front in 2021.

But H.R. 5119 isn’t the only threat. We’re always concerned about negative consequences – whether intentional or not – from other legislation, including appropriations bills, the annual defense authorization act and various tax and regulatory proposals.

As always, ARSA will be standing guard for the industry, but we can’t do it alone. The most persuasive lobbyist is a concerned constituent. (A great place to start, if you haven’t done it before, is legislative events hosted by industry organizations…like our Legislative Day on March 10, 2021).

We hope you’ll support our advocacy and answer the call to help us educate your elected representatives.

Christian A. Klein is the managing member of Obadal, Filler, MacLeod & Klein, P.L.C. overseeing the firm’s policy advocacy practice. He represents trade associations as a registered federal lobbyist and provides strategic communications and legal counsel services to clients. He is executive vice president of the Aeronautical Repair Station Association. Mr. Klein is a member of the University of Virginia’s adjunct faculty.