Market Intelligence: North America

US Transportation Security Administration (TSA) Announces the Publication of the Flight Training Security Program Final Rule

The Transportation Security Administration (TSA) published in the Federal Register a final rule for the Flight Training Security Program. The final rule updates the Program to improve its efficiency and effectiveness, including the security threat assessment process for flight training students. The final rule will take effect on July 30, 2024.

Until the regulation takes effect, all requirements and existing processes remain as is stated in the current regulations (49 CFR part 1552) and on the program portal.

The Flight Training Security Program, which has been in effect since at the Department of Homeland Security and TSA since 2004, covers flight training providers, including individual Certified Flight Instructors, who provide training to all flight students, with the exception of foreign military pilots training in the United States through a Department of Defense endorsement and in accordance with the U.S. International Military Education and Training Program. All non-citizen flight trainees are subject to a Security Threat Assessment, which is a TSA background check conducted on all databases relevant to confirming an individual’s identity, that the individual possesses lawful status in the United States, and that the individual does not pose a security threat.

Currently, prospective trainees must submit an application and pay a fee for each training they wish to attend. The final rule is time-based. After undergoing vetting, an applicant who receives a positive determination of eligibility will receive a Certificate of Eligibility, pay a one-time fee and can train as often as desired within a five-year period as long as they remain eligible. During that period, TSA will conduct recurrent vetting to ensure no new information emerges that would affect eligibility to receive flight training.

This change improves administration and efficiency for flight training candidates and providers. It has been made possible in part by technology improvements made to the FBI’s record of arrest and prosecution background program used by TSA as a vetting tool. TSA expects the final rule to reduce delays, improve tracking candidate training events, and support the portability of a candidate’s security threat awareness between providers. Providers will no longer pay for multiple event-based training security threat assessments.

The final rule more clearly defines which flight training events require notification and recordkeeping and focuses on the notification of flight training events that “substantially enhance a pilot’s skills,” eliminating numbered training categories previously used.

The final rule is intended to maintain the appropriate level of security, comply with all statutory mandates and improve efficiency for the flight training industry.  TSA believes these enhancements may improve access and opportunities for fully vetted non-U.S. citizens and non-U.S. nationals to participate in flight training in the United States and with FAA-certificated flight training providers abroad.

For more information about the changes, read the updated Flight School Training Program regulation in the Federal Register.

Source: Transportation Security Administration

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World’s Largest ACMI Provider and Aviation Conglomerate Avia Solutions Group Records 2023 EBITDA of EUR 392 Million

Avia Solutions Group, the world’s largest ACMI provider (Aircraft, Crew, Maintenance, and Insurance) services and owner of global pilot training group BAA Training, announced its audited financial results for 2023, reporting a net profit increase of 5.5 times to EUR 68.2 million, adjusted EBITDA up by 36% to EUR 392 million, and revenues rising by 22% to EUR 2.3 billion. The company generated the most revenue in Europe (67%), Asia (20%), and North and South America (6%).

Last year, the Group continued to invest in its fleet, expanding it by 27 aircraft to a total of 200, including 159 passenger and 41 cargo aircraft by the end of the year.

In 2023, the Group’s revenues from passenger aircraft ACMI services increased by 53%, reaching EUR 950 million. According to Jonas Janukenas, CEO of Avia Solutions Group, the significant increase in volumes indicates that many of the world’s leading airlines view ACMI services as an integral part of their operations, helping to manage their fleets more efficiently. The situation in the passenger aircraft market ensures that the Group will maintain high growth rates in the future.

Last year, Avia Solutions Group continued its expansion in the Asia-Pacific region, starting operations with BBN Airlines Indonesia and acquiring the Australian airline Skytrans at the beginning of 2024. By the end of 2024, the company plans to establish four more ACMI airlines in Brazil, the Philippines, Thailand, and Malaysia.

The company is preparing to further expand its aircraft fleet and maintain leading positions in the ACMI segment, where it sees a significant market need. The company’s infrastructure in Asia and the Pacific region, as well as in the Americas, will allow it to effectively manage the challenges of seasonality in aviation by shifting aircraft from one region to another.

“The Group will utilise aircraft in Europe during the summer peak season, and during the winter, the planes will be relocated to regions with opposite seasonality. This will allow us to maximise the capabilities of our aircraft fleet, and our clients, the world’s leading airlines, will receive aircraft during the peak seasonal periods,” states J. Janukenas.

The American market is also a priority for the company. Recently, the company signed a cooperation agreement with Impact Investments LLC, whose executive chairman is the former U.S. Secretary of State Mike Pompeo. The company will provide strategic development consulting to the Group.

Avia Solutions Group, based in Ireland, has offices in Ireland, the USA, the UAE, Lithuania, Australia, the Asia-Pacific region, and South Africa. The Group owns globally operating airline companies such as SmartLynx Airlines, Avion Express, AirExplore, KlasJet, and Magma Aviation. It also manages the aircraft maintenance and repair services (MRO) company FL Technics, which has aircraft technical maintenance and repair hangars in Indonesia, the United Kingdom, and Lithuania, along with 100 operational maintenance stations in various countries. Among the Group’s companies is the largest independent pilot training center, BAA Training, with pilot schools in Spain, France, Lithuania, and Vietnam.

The Avia Solutions Group team comprises over 11,700 highly qualified aviation professionals worldwide.

Source: Avia Solutions Group
Photo Credit: Avia Solutions Group

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