FINAL REPORT ON THE SAFETY OVERSIGHT AUDIT OF THE CIVIL AVIATION SYSTEM OF THE UNITED KINGDOM

ICAO Universal Safety Oversight Audit Programme FINAL REPORT ON THE SAFETY OVERSIGHT AUDIT OF THE CIVIL AVIATION SYSTEM OF THE UNITED KINGDOM (3 to 20 February 2009) International Civil Aviation Organization

TABLE OF CONTENTS 1. INTRODUCTION... 1 1.1 Background... 1 1.2 ICAO audit team composition... 1 1.3 Acknowledgements... 2 2. OBJECTIVES AND ACTIVITIES OF THE AUDIT MISSION... 2 3. AUDIT RESULTS... 3 Page 3.1 The United Kingdom as an ICAO Contracting State An Overview... 3 3.2 The UK Main... 4 3.2.1 Critical element 1 Primary aviation legislation... 4 3.2.2 Critical element 2 Specific operating regulations... 8 3.2.3 Critical element 3 State civil aviation system and safety oversight functions... 12 3.2.4 Critical element 4 Technical personnel qualification and training... 17 3.2.5 Critical element 5 Technical guidance, tools and the provision of safety critical information... 19 3.2.6 Critical element 6 Licensing, certification, authorization and/or approval obligations... 21 3.2.7 Critical element 7 Surveillance obligations... 24 3.2.8 Critical element 8 Resolution of safety concerns... 26 3.3 The UK Overseas Territories... 28 3.3.1 Critical element 1 Primary aviation legislation... 28 3.3.2 Critical element 2 Specific operating regulations... 31 3.3.3 Critical element 3 State civil aviation system and safety oversight functions... 35 3.3.4 Critical element 4 Technical personnel qualification and training... 39 3.3.5 Critical element 5 Technical guidance, tools and the provision of safety critical information... 40 3.3.6 Critical element 6 Licensing, certification, authorization and/or approval obligations... 42 3.3.7 Critical element 7 Surveillance obligations... 44 3.3.8 Critical element 8 Resolution of safety concerns... 45 3.4 The UK Crown Dependencies... 47 3.4.1 Critical element 1 Primary aviation legislation... 47 3.4.2 Critical element 2 Specific operating regulations... 50 3.4.3 Critical element 3 State civil aviation system and safety oversight functions... 52 3.4.4 Critical element 4 Technical personnel qualification and training... 54 3.4.5 Critical element 5 Technical guidance, tools and the provision of safety critical information... 55 3.4.6 Critical element 6 Licensing, certification, authorization and/or approval obligations... 56 Final Safety Oversight Audit Report United Kingdom March 2010

- ii - 3.4.7 Critical element 7 Surveillance obligations... 57 3.4.8 Critical element 8 Resolution of safety concerns... 58 4. VISITS TO THE INDUSTRY/SERVICE PROVIDERS... 59 5. AUDIT FINDINGS AND DIFFERENCES DATABASE (AFDD)... 60 6. STATE AVIATION ACTIVITY QUESTIONNAIRE (SAAQ)... 60 7. COMPLIANCE CHECKLISTS (CCs)... 60 8. FOLLOW-UP ACTION... 60 APPENDICES 1 Audit findings and recommendations Part 1 A The UK Main 1A-1 Findings and recommendations related to primary aviation legislation and civil aviation regulations 1A-2 Findings and recommendations related to civil aviation organization 1A-3 Findings and recommendations related to personnel licensing and training 1A-4 Findings and recommendations related to aircraft operations certification and supervision 1A-5 Findings and recommendations related to airworthiness of aircraft 1A-6 Findings and recommendations related to aircraft accident and incident investigation 1A-7 Findings and recommendations related to air navigation services 1A-8 Findings and recommendations related to aerodromes Part 1 B The UK Overseas Territories ASSI/Bermuda 1B-1 Findings and recommendations related to primary aviation legislation and civil aviation regulations 1B-2 Findings and recommendations related to civil aviation organization 1B-3 Findings and recommendations related to personnel licensing and training 1B-4 Findings and recommendations related to aircraft operations certification and supervision 1B-5 Findings and recommendations related to airworthiness of aircraft 1B-6 Findings and recommendations related to aircraft accident and incident investigation 1B-7 Findings and recommendations related to air navigation services 1B-8 Findings and recommendations related to aerodromes Part 1 C Isle of Man As an Example of a Crown Dependency 1C-1 Findings and recommendations related to primary aviation legislation and civil aviation regulations 1C-2 Findings and recommendations related to civil aviation organization 1C-3 Findings and recommendations related to personnel licensing and training 1C-4 Findings and recommendations related to aircraft operations certification and supervision 1C-5 Findings and recommendations related to airworthiness of aircraft 1C-6 Findings and recommendations related to aircraft accident and incident investigation 1C-7 Findings and recommendations related to air navigation services Final Safety Oversight Audit Report United Kingdom March 2010

- iii - 1C-8 Findings and recommendations related to aerodromes 2 Graphic representation of the lack of effective implementation of the critical elements 2 The United Kingdom 2 A The UK Main 2 B The UK Overseas Territories ASSI/Bermuda 2 C Isle of Man As an Example of a Crown Dependency 3 Corrective action plan proposed for 3 A The UK Main 3 B The UK Overseas Territories 3 C The UK Crown Dependencies and Gibraltar Final Safety Oversight Audit Report United Kingdom March 2010

ICAO UNIVERSAL SAFETY OVERSIGHT AUDIT PROGRAMME Final Report on the Safety Oversight Audit of the Civil Aviation System of the United Kingdom (3 to 20 February 2009) 1. INTRODUCTION 1.1 Background 1.1.1 The 32nd Session of the ICAO Assembly (Assembly Resolution A32-11 refers) resolved the establishment of the ICAO Universal Safety Oversight Audit Programme (USOAP), comprising regular, mandatory, systematic and harmonized safety audits of all Contracting States. The mandate for regular audits foresaw the continuation of the Programme, and the term safety audits suggested that all safety-related areas should be audited. The expansion of the Programme at the appropriate time, as recommended by the 1997 Directors General of Civil Aviation Conference on a Global Strategy for Safety Oversight, had thus been accepted as an integral part of the future of the Programme. 1.1.2 The 35th Session of the ICAO Assembly considered a proposal of the Council for the continuation and expansion of the USOAP as of 2005 and resolved that the Programme be expanded to cover all safety-related Annexes to the Convention on International Civil Aviation, hereinafter referred to as the Chicago Convention (Assembly Resolution A35-6 refers). The Assembly also requested the Secretary General to adopt a comprehensive systems approach for the conduct of safety oversight audits. 1.1.3 Assembly Resolution A35-6 further directed the Secretary General to ensure that the comprehensive systems approach maintain as core elements the safety provisions contained in Annex 1 Personnel Licensing, Annex 6 Operation of Aircraft, Annex 8 Airworthiness of Aircraft, Annex 11 Air Traffic Services, Annex 13 Aircraft Accident and Incident Investigation and Annex 14 Aerodromes; to make all aspects of the auditing process visible to Contracting States; to make the final safety oversight audit reports available to all Contracting States; and also to provide access to all relevant information derived from the Audit Findings and Differences Database (AFDD) through the secure website of ICAO. 1.1.4 In accordance with Assembly Resolution A35-6, safety oversight audit reports have been restructured to reflect the critical elements of a safety oversight system, as presented in ICAO Doc 9734 Safety Oversight Manual, Part A The Establishment and Management of a State s Safety Oversight System. ICAO Contracting States, in their effort to establish and implement an effective safety oversight system, need to consider these critical elements. 1.2 ICAO audit team composition 1.2.1 The safety oversight audit team was composed of Mr. Nicolas Rallo, team leader, primary aviation legislation (LEG)/civil aviation organization (ORG)/aircraft accident and incident investigation (AIG); Ms. Elizabeth Gnehm, team member, LEG/ORG/ airworthiness of aircraft (AIR); Mr. Hatem Dibian, team member, AIR; Mr. Cristian Olinescu, team member, personnel licensing (PEL)/aircraft operations (OPS); Ms. Janet McLaughlin, team member, dangerous goods; Mr. Thierry Allain, team member, OPS; Mr. Dhiraj Ramdoyal, team member, air navigation services (ANS); Ms. Siew Huang Tay, team member, Final Safety Oversight Audit Report United Kingdom March 2010

- 2 - ANS; Mr. Francesco Preti, team member, on-the-job training (OJT)/ANS; Mr. Wang Yong, team member, aerodromes (AGA); and Mr. Egon Grösslein, team member, AGA. 1.3 Acknowledgements 1.3.1 ICAO expresses its sincere appreciation for the assistance provided to the audit team during the preparation and conduct of the audit. The professionalism and enthusiasm of all personnel who interacted with the audit team greatly contributed to the success of the audit mission. 2. OBJECTIVES AND ACTIVITIES OF THE AUDIT MISSION 2.1 The comprehensive systems approach for the conduct of safety oversight audits consists of three phases. In the first phase, the level of implementation of Annex provisions is assessed and differences from ICAO Standards and Recommended Practices (SARPs) are identified for each Contracting State through a review of a duly completed State Aviation Activity Questionnaire (SAAQ) and Compliance Checklists (CCs) for all safety-related Annexes, as well as through a review of documents developed by the State to assist it in implementing SARPs and in maintaining an effective safety oversight system. In the second phase, the State being audited is visited by an ICAO audit team to validate the information provided by the State and to conduct an on-site audit of the State s overall capability for safety oversight. The third phase of the audit process consists of the activities following the completion of the on-site audit. 2.2 The safety oversight audit of the United Kingdom of Great Britain and Northern Ireland (hereafter referred to as the United Kingdom or UK) was carried out from 3 to 20 February 2009 in accordance with the standard auditing procedures provided for in ICAO Doc 9735 Safety Oversight Audit Manual and the revised Memorandum of Understanding (MOU) as approved by the ICAO Council on 29 November 2006 (C-DEC 179/12 refers) and agreed to on 19 May 2008 between the United Kingdom and ICAO. The audit was carried out with the objective of fulfilling the mandate given by the Assembly which requires ICAO to conduct a safety oversight audit of all Contracting States (Assembly Resolutions A32-11 and A35-6 refer), reviewing a State s compliance with ICAO SARPs set out in all safety related Annexes and their associated guidance material, as well as with related Procedures for Air Navigation Services (PANS). Furthermore, the objective was also to offer advice, as applicable, to the United Kingdom in implementing these provisions. 2.3 The audit team reviewed the SAAQs and the CCs submitted by the United Kingdom prior to the on-site audit in order to have a preliminary understanding of the civil aviation system established in the State, to determine its various functions as well as to assess the status of implementation of relevant Annex provisions. Information provided and assessed prior to the conduct of the audit was validated during the on-site audit phase. In this regard, particular attention was given to the presence of an adequate organization, processes, procedures and programmes established and maintained by the United Kingdom to assist it in fulfilling its safety oversight obligations. 2.4 On 15 July 2002, the European Community adopted Regulation (EC) No 1592/2002 of the European Parliament and of the Council on common rules in the field of civil aviation and establishing a European Aviation Safety Agency (EASA). This regulation provides for the transfer of regulatory competencies in the fields of airworthiness, continuing airworthiness and environmental certification from the Member States of the European Union (EU) to EASA. On 10 March 2005, the United Kingdom advised ICAO in writing of the transfer of such competencies to EASA. Final Safety Oversight Audit Report United Kingdom March 2010

- 3-2.5 Since the transfer of competencies to EASA reflects on the scope of the ICAO safety oversight audits under the comprehensive systems approach, ICAO performed an initial audit of EASA, from 29 November to 2 December 2005. On 20 February 2008, the European Community adopted Regulation (EC) No 216/2008 of the European Parliament and of the Council, repealing Regulation (EC) No 1592/2002 of the European Parliament and of the Council. Regulation (EC) No 216/2008 extends the scope of competence of EASA to pilot licensing, aircraft operations and aircraft used by third-country operators. Taking into consideration the extension of the scope of competence of EASA and additional changes within the organization since the initial safety oversight audit of 2005 by ICAO, ICAO performed a second audit of EASA from 23 to 25 April 2008. The EASA audit results are available to all Contracting States on the ICAO USOAP secure website (http://www.icao.int/soa). It should be noted that the United Kingdom will always maintain the responsibility for all audit results that are derived from the audits carried out on EASA from time to time. As a result, the latest EASA safety oversight audit report should be reviewed together with this report. 2.6 The audit results including the findings and recommendations contained in this report reflect the capabilities and limitations of the civil aviation system of the United Kingdom as assessed by the audit team. They are thus based on evidence gathered during interviews by the audit team with the technical experts of the United Kingdom and background information provided by such personnel, review and analysis of civil aviation legislation, specific regulations, and related documentation and file records. Considering the time that was available to conduct the audit and the fact that the safety oversight audit team members could only review and analyse information and documentation made available by the State, it is possible that some safety concerns may not have been identified during the audit. The findings and recommendations related to each audit area are found in Appendix 1 to this report. 3. AUDIT RESULTS 3.1 The United Kingdom as an ICAO Contracting State An Overview 3.1.1 The United Kingdom (UK), as an ICAO Contracting State, is made up of three components : the UK Main (formed by the United Kingdom of Great Britain and Northern Ireland), the UK Overseas Territories, and the Crown Dependencies. A constitutional monarchy, with the Queen as the Head of State, the United Kingdom has 14 Overseas Territories under its sovereignty. In addition, the Crown Dependencies comprising of the Isle of Man (IoM) and the Channel Island bailiwicks of Jersey and Guernsey are possessions of The Crown in Right of the United Kingdom (as opposed to Overseas Territories or colonies of the United Kingdom), which exercises sovereignty over them. 3.1.2 The UK Government remains responsible for the foreign affairs and defence of both the Overseas Territories and the Crown Dependencies. The UK Department for Transport (DfT) is the primary government body responsible for civil aviation in the United Kingdom and for upholding the United Kingdom s compliance with the Chicago Convention. As such, the DfT establishes the overall aviation policy across all three components of the United Kingdom in cooperation with the Foreign and Commonwealth Office (FCO) for the Overseas Territories and the Ministry of Justice for the Crown Dependencies. 3.1.3 Each Crown Dependency has a Chief Minister as Head of Government. However, as they are possessions of the British Crown, they are not sovereign nations in their own right. The power to pass legislation affecting the Crown Dependencies rests with their own legislative assemblies, but most local legislation has to receive the approval of the Queen in Council, in effect, the Privy Council in London, with a UK minister acting as the Privy Counsellor with responsibility for the Crown Dependencies. In some cases, the UK Parliament has the authority to legislate on behalf of the Crown Dependencies. Final Safety Oversight Audit Report United Kingdom March 2010

- 4-3.1.4 The United Kingdom is a Member State of the EU, but the Crown Dependencies which decided not to join the European Community (EC) when the United Kingdom joined it and the UK Overseas Territories (except Gibraltar) are not part of the EU. An MOU has been concluded between the United Kingdom and each Crown Dependency regarding aviation safety regulation and it outlines the responsibilities of each party for meeting the United Kingdom s international obligations as an ICAO Contracting State to ensure that the provisions of the Chicago Convention and all ICAO SARPs are implemented in each Crown Dependency. 3.1.5 The 14 UK Overseas Territories are: Anguilla, Bermuda, British Indian Ocean Territory, British Antarctic Territory, British Virgin Islands, Cayman Islands, Falkland Islands, Gibraltar, Montserrat, Pitcairn Islands, St Helena and its Dependencies (Ascension Island and Tristan da Cunha), South Georgia and South Sandwich Islands, Sovereign Base Areas of Akrotiri and Dhekelia, and Turks and Caicos Islands. In the main, the UK Overseas Territories have separate constitutions with elected governments which are responsible for the day-to-day administration. External affairs, safety, defence, and aviation security are the responsibilities of the British Government. Each Overseas Territory has its own legal system independent of the UK Main. The Queen appoints a representative in each Overseas Territory to exercise her executive power. In territories with a permanent population, a Governor is appointed by the Queen on the advice of the British Government. The role of the Governor is to act as the de facto Head of State, and he or she is usually responsible for appointing the Head of Government and senior political officials in the territory. The Governor is also responsible for liaising with the UK Government. 3.1.6 To provide a cohesive system of civil aviation safety regulation in the UK Overseas Territories, the United Kingdom established on 1 April 2003 Air Safety Support International Ltd (ASSI) as a wholly owned subsidiary of the UK Civil Aviation Authority (UKCAA) and funded by the UK DfT. The company s remit, through Directions from the UK Secretary of State to the UKCAA, is: 3.2 The UK Main a) to audit safety regulation in each Overseas Territory; b) to provide assistance, training and advice to the Overseas Territories; c) to carry out safety regulation where designated by the Governor; d) to draft amendments to the Air Navigation (Overseas Territories) Order (AN(OT)O) 2001 (currently the 2007 Order); and e) to produce the means of compliance with the legislation. 3.2.1 Critical element 1 Primary aviation legislation The provision of a comprehensive and effective aviation law consistent with the environment and complexity of the State s aviation activity, and compliant with the requirements contained in the Convention on International Civil Aviation. 3.2.1.1 The principal sources of UK law are the UK national legislation, Crown prerogative powers, and European legislation. a) UK national legislation is composed of primary legislation enacted by Parliament and secondary legislation made up of Orders or Regulations enacted under the enabling powers provided by the primary legislation. Final Safety Oversight Audit Report United Kingdom March 2010

- 5 - b) The Crown retains certain prerogative powers that are, in practice, exercised through Ministers on behalf of the Crown and which may be used in the absence of Statutory Instruments. c) EC legislation includes Regulations which, general in application, are binding in their entirety and directly applicable in the United Kingdom, and Directives which must be implemented in the national legislation but are binding in respect of the result to be achieved. 3.2.1.2 Primary legislation in the United Kingdom is drafted and amended according to a procedure involving substantial scrutiny by both Houses of Parliament in several stages. Typically, such procedure takes several months, except in rare and exceptional cases. Many Acts of Parliament authorize the drafting of secondary legislation (Statutory Instruments) addressing specific issues and outline the applicable procedure for the promulgation of said legislation. 3.2.1.3 The primary aviation legislation in the United Kingdom is the Civil Aviation Act 1982, (or the Act ), last amended by the Civil Aviation Act 2006. The Act has 110 sections divided into five parts: 1) Administration; 2) Aerodromes and Other Land; 3) Regulation of Civil Aviation; 4) Aircraft; and 5) Miscellaneous and General, along with 16 Schedules, each related to a specific Section. In addition, the primary aviation legislation is supplemented by certain provisions in the Transport Act 2000. 3.2.1.4 Section 60 of the Act provides for the making of an Order in Council, referred to as an Air Navigation Order (ANO), in order to carry out the Chicago Convention and its Annexes. An Order in Council is made in the name of the Queen by the Privy Council (Queen-in-Council). When it establishes a legal requirement, an Order in Council is considered another form of Statutory Instrument that is subject to UK parliamentary scrutiny. An Order in Council is an important means of giving the force of law to more significant executive orders. It is also used to extend civil aviation legislation to the Overseas Territories as well as the Crown Dependencies. Under subsection (3) of Section 60, an ANO may contain provisions stipulating, inter alia, the manner and conditions for the issuance, validation, renewal, extension or variation as well as cancellation, suspension and surrender of certificates, licences and other required documents, and generally for securing the safety, efficiency and regularity of air navigation. 3.2.1.5 The Air Navigation Order 2005 ( ANO 2005 ), last amended in 2008, constitutes the highest level of civil aviation regulation. Divided into 14 parts and 15 Schedules, it includes provisions on the certification and supervision of commercial air transport operators, airworthiness and equipment of aircraft, flight crew licensing, operation of aircraft, fatigue of air crew, aerodromes and air traffic services (ATS). As specified in the Act, any ANO or amendment comes into force through the negative resolution procedure, i.e. a draft legislation is presented to Parliament and in the absence of any objection, it comes into force after not less than 21 days. 3.2.1.6 The UKCAA was established under Section 2 of the Act, and its functions are defined in Section 3 of the same Act. The power to issue Directives is provided for in various articles of the ANO 2005 pertaining to each technical area. In addition, Article 167 of the ANO 2005 identifies the UKCAA as the national aviation authority and the competent authority of the United Kingdom for the purposes of Regulation (EC) No. 216/2008 of the European Parliament and of the Council of 20 February 2008 on common rules in the field of civil aviation and establishing a European Aviation Safety Agency (repealing Regulation (EC) No 1592/2002 of the European Parliament and of the Council of 15 July 2002). 3.2.1.7 Pursuant to Section 60 of the Act and Articles 24, 90, 144 and 145 of the ANO 2005, persons authorized by the UKCAA have the right of access to any aerodrome, any place where an aircraft has landed, Final Safety Oversight Audit Report United Kingdom March 2010

- 6 - any building or place from which an air traffic control service is provided or any factory for the purpose of inspecting the aerodrome, an aircraft or documents. Under Article 144 of the ANO 2005, the UKCAA may detain an aircraft if it appears intended or likely to be flown in contravention of the specified safety requirements or be in a condition unfit for flight. Article 24 of the ANO 2005 grants further access and inspection powers for airworthiness purposes by allowing an authorized person to go upon any aerodrome or enter any aircraft factory. Article 88 requires the operator or commander of an aircraft to present to an authorized person relevant documents and records, while Article 90 grants an authorized person the power to inspect and copy such documents and records. 3.2.1.8 Section 61 of the Act makes infringement of a provision of an ANO a criminal offence. In addition, Article 148 and Schedule 14 of the ANO 2005 outline the enforcement actions and penalties to be imposed on persons who contravene the ANO 2005 or regulations including the EC Regulations. The responsibility for enforcement has been given to the UKCAA by the DfT. Additionally, Article 92 authorizes the UKCAA to provisionally suspend or vary any certificate, licence or other document issued, granted or having effect under ANO 2005. 3.2.1.9 The United Kingdom ratified Article 83 bis of the Chicago Convention on 16 March 1981 to allow for the transfer of certain functions and duties from the State of Registry to the State of the Operator. Articles 8(1), 20(1), 26(3) and 55(1) of the ANO 2005 establish the recognition of certificates and licences issued by the State of Registry or the State of Operator. The definition for State of the Operator in the Order is the same as the ICAO definition, with the added condition that the State of Registry has, by agreement with the State of the Operator, agreed to transfer to it its functions and duties as State of Registry in respect of that aircraft in relation to airworthiness, aircraft radio equipment, flight crew licensing, and radio licensing. UKregistered aircraft are not permitted to have certificates of airworthiness, radio equipment approvals, flight crew licences or radio licences issued by (another) State of Operator. 3.2.1.10 With respect to personnel licensing, the essential legal provisions are outlined in the ANO 2005, Part 3 ( Airworthiness and equipment of the aircraft ), Part 4 ( Aircraft crew and licensing ), and Part 10 ( Licensing of air traffic controllers ). The ANO 2005 also requires licensed aviation personnel to be medically fit and qualified according to the established aeronautical licensing requirements. 3.2.1.11 With respect to aircraft operations, Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the Community requires that no undertaking established in the Community shall be permitted to carry by air passengers, mail and/or cargo for remuneration and/or hire unless it has been granted the appropriate operating licence. The issuance and validity of an operating licence are dependent upon the possession of a valid air operator certificate (AOC) issued in accordance with the applicable regulation. a) For commercial air transport by aeroplane, the applicable regulation is the EU OPS (i.e. Commission Regulation (EC) No 859/2008 of 20 August 2008 amending Council Regulation (EEC) No 3922/91 of 16 December 1991). b) For commercial air transport by helicopter, the legal basis is outlined in the ANO 2005. c) With respect to the transport of dangerous goods by air, the ANO 2005 in Article 70(1) authorizes the Secretary of State to make dangerous goods-related regulations. 3.2.1.12 With respect to airworthiness and maintenance of aircraft, the adoption on 15 July 2002 of Regulation (EC) No 1592/2002 of the European Parliament and of the Council (recently replaced by Regulation (EC) No 216/2008) paved the way for a centralized EC system of air safety and environment regulations and for the establishment of EASA, which was launched in September 2003. (Note: More details Final Safety Oversight Audit Report United Kingdom March 2010

- 7 - on EASA and its areas of competence can be found in the ICAO final safety oversight audit report of EASA.) In addition, subsection 3 of Section 60 of the Act provides for the making of an Air Navigation Order with provisions on the registration of aircraft in the United Kingdom, prohibition for aircraft to fly without a valid certificate of airworthiness and unless the maintenance and repair requirements specified in the Order have been met, and prohibition for aircraft to take off or land in the United Kingdom without a valid noise certificate. 3.2.1.13 In the field of air navigation services, the Transport Act 2000, in Schedule 8 ( Amendments About Air Traffic ), Part II ( Air Navigation Services ), Chapter 8 amends Section 72 of the Act which puts an end to the duty of the UKCAA to provide air navigation services. Accordingly, the National Air Traffic Services Limited (NATS), formerly a wholly owned subsidiary of the UKCAA, was partially privatized in 2001 and given the sole responsibility to provide air navigation services for en-route purposes. 3.2.1.14 The UKCAA is given responsibility for the safety and economic regulation of NATS and responsibility for the airspace policy of the United Kingdom as a whole. Under Part I, Section 2(1) of the Transport Act 2000, the UKCAA must exercise its functions so as to maintain a high level of safety in the provision of air traffic services. 3.2.1.15 Pursuant to Section 66(1) of the Transport Act 2000, the Secretary of State for the Environment, Transport and the Regions assigned to the UKCAA, under the Civil Aviation Authority (Air Navigation) Directions 2001 (as varied in 2004), the duty to discharge the responsibilities of the UK Meteorological Authority in accordance with Annex 3 to the Chicago Convention as well as to be responsible for the form and content of the UK Aeronautical Information Publication (AIP) and ensure that an Aeronautical Information Service (AIS) is provided in accordance with international obligations. It is noted however that the Directorate of Airspace Policy (DAP) of the UKCAA also ensures both regulatory/safety oversight and service provision functions in the areas of PANS-OPS and Aeronautical Charts. 3.2.1.16 Parts 9 to 12 of the ANO 2005 govern ATS, the licensing of air traffic controllers (ATCOs), flight information service (FIS) and the licensing of FIS Officers as well as ATS equipment. In particular, Part 9, Article 100 states that the UKCAA shall grant an air traffic control approval if it is satisfied that the applicant is competent, having regard to his organisation, staffing, equipment, maintenance and other arrangements, to provide a service which is safe for use by aircraft. Schedules 11 and 12 of the ANO 2005 lay down details about the licensing of ATCOs and ATS equipment, respectively. 3.2.1.17 With respect to the provision of search and rescue (SAR) services, under the Crown s prerogative powers, the Secretary of State for Transport (DfT) is responsible for civil aeronautical SAR, and by agreement, has delegated some responsibilities to the Ministry of Defense (MoD) under paragraph 5.2.1 of the SAR Framework for the United Kingdom of Great Britain and Northern Ireland (April 2008). Similarly, under the Crown s prerogative powers, the Secretary of State for Defense arranges for the UK Royal Air Force (RAF) to provide aeronautical SAR capability and establishes the Aeronautical Rescue Coordination Centre (ARCC) at the RAF station in Kinloss. 3.2.1.18 With respect to AIS, ATS, CNS and MET, the United Kingdom is also directly legislated by the four Single European Sky (SES) Regulations of the European Parliament and the Council promulgated on 10 March 2004. These are: a) Regulation (EC) No 549/2004 of the European Parliament and of the Council of 10 March 2004, which laid down the framework of the creation of the Single European Sky; Final Safety Oversight Audit Report United Kingdom March 2010

- 8 - b) Regulation (EC) No 550/2004 of the European Parliament and of the Council of 10 March 2004 on the provision of services in the Single European Sky; c) Regulation (EC) No 551/2004 of the European Parliament and of the Council of 10 March 2004 on the organization and the use of the airspace in the Single European Sky, and d) Regulation (EC) No 552/2004 of the European Parliament and of the Council of 10 March 2004 on the interoperability of the European air traffic management network. 3.2.1.18.1 In addition, pursuant to Regulation (EC) No. 550/2004, the European Commission issued the Commission Regulation (EC) No 1315/2007 of 8 November 2007 addressing the requirements for safety oversight in air traffic management and amending Regulation (EC) No 2096/2005 of 20 December 2005. 3.2.1.19 With respect to aerodromes, the ANO 2005 in Part 13 lays down the basic legal provisions regarding the establishment and operation of aerodromes. Article 126 of the ANO 2005 requires that in the United Kingdom, specified flights for the purpose of public transport of passengers or of instruction in flying take place only at a licensed aerodrome or a Government aerodrome. The issuance of an aerodrome licence, including submission of an aerodrome manual, is addressed by Articles 128 and 166 of the ANO 2005. Article 126 of the ANO 2005 requires that helicopter operations be conducted at, from or to a licensed facility in accordance with Annex 14, Volume II to the Chicago Convention. Regarding the aerodrome manual, the information and instructions to be included are described in Schedule 13 of the ANO 2005. Meanwhile, Sections 45 and 46 of the Act empower the Secretary of State to impose prohibitions or restrictions on the use of any area of land or water for purpose of securing safety at aerodromes and to exercise control over land in the interests of civil aviation. 3.2.1.20 With respect to aircraft accident and incident investigations, Section 75 of the Act authorizes the Secretary of State to make regulations for the investigation of any accident arising out of or in the course of air navigation and either occurring in the United Kingdom or occurring elsewhere to aircraft registered in the United Kingdom. It also provides for the implementation of the requirements and for the imposition of penalties for non-compliance with the regulations. Meanwhile, Article 142 of the ANO 2005 addresses mandatory and voluntary reporting of occurrences. 3.2.2 Critical element 2 Specific operating regulations The provision of adequate regulations to address, at a minimum, national requirements emanating from the primary aviation legislation and providing for standardized operational procedures, equipment and infrastructures (including safety management and training systems), in conformance with the Standards and Recommended Practices (SARPs) contained in the Annexes to the Convention on International Civil Aviation. Note. The term regulations is used in a generic sense to include instructions, rules, edicts, directives, sets of laws, requirements, policies, orders, etc. 3.2.2.1 The UKCAA develops and proposes changes to the ANO and regulations, but does not have the power to actually amend the regulations or legislation. Promulgation and/or amendments of UK regulations (including the ANO) are made by Order in Council authorized by the Act or any other enactment. 3.2.2.2 Under the ANO 2005, the UKCAA has discretionary powers to issue an approval only if it is satisfied that the applicant is competent. To support the evaluation of an applicant s competency, the UKCAA has published requirements for the issuance of approvals in various Civil Aviation Publications (CAPs). When Final Safety Oversight Audit Report United Kingdom March 2010

- 9 - a CAP contains requirements that are based on ICAO SARPs, an ICAO compliance statement is added to the CAP to indicate that the UKCAA will use the document as a reference in exercising its discretionary powers to ensure effective implementation of the international standards. 3.2.2.3 With respect to compliance with the Annexes to the Chicago Convention, specifically Annexes 1, 2, 3, 4, 6, 7, 8, 10, 11, 14, 15 and 18 for which the UKCAA retains responsibility, the Secretary of Transport has issued the Civil Aviation Authority (Chicago Convention) Directions 2007, which states that the CAA will consider whether it is necessary to amend United Kingdom aviation legislation to ensure appropriate implementation of an ICAO provision, or if appropriate, the notification of any differences. Where the UKCAA considers an amendment to be necessary, the CAA Legal Services Directorate is instructed to draft the relevant proposal for submission to the Secretary of State. 3.2.2.3.1 The Air Accidents Investigation Branch (AAIB) is responsible for Annex 13 to the Chicago Convention and sends instructions directly to the Legal Branch at the DfT. 3.2.2.3.2 The responsibility for Annex 16 to the Chicago Convention lies with the Aviation Environmental Policy Division under the DfT but implemented by EU Regulations. 3.2.2.3.3 The UK SAR Strategic Committee is responsible for Annex 12 to the Chicago Convention. 3.2.2.3.4 The United Kingdom has not established formal requirements about the specific units of measurement to be used in air and ground operations in accordance with Annex 5 to the Chicago Convention. 3.2.2.3.5. Differences between the Annexes to the Chicago Convention and the regulations applicable in the United Kingdom are published in the AIP under GEN 1.7. 3.2.2.4 The aviation legislation of the United Kingdom, including the Act, ANO 2005, and others, are published on the UK Office of Public Sector Information website (http://www.opsi.gov.uk) or on the UK Statute Law database (http://www.statutelaw.gov.uk). UKCAA publications are available from the UKCAA website (http://www.caa.co.uk), and the European Regulations can be found on http://eurlex.europa.eu/en/index.htm. 3.2.2.5 With respect to personnel licensing, detailed requirements that applicants must meet in order to obtain pilot licences are outlined in the UKCAA publication entitled LASORS, which is updated annually. The LASORS elaborates on the European requirements for pilot licensing as set down in the Joint Aviation Requirements Flight Crew Licensing 1 (JAR-FCL 1) and JAR-FCL 2. Although the ANO 2005 makes reference to JAR-FCL 1 Amendment 5 and JAR-FCL 2 Amendment 3, the latest amendments of JAR-FCL were introduced through an Aeronautical Information Circular (AIC). There are however no regulatory provisions addressing the latest amendments to Annex 1 to the Chicago Convention regarding language proficiency for air traffic controllers. 3.2.2.6 The UKCAA has issued three CAPs on the licensing of ATCOs, namely: 1) CAP 744 (The UK Manual of Personnel Licensing Air Traffic Controllers), 2) CAP 584 (Requirements of Initial Air Traffic Control Training), and 3) CAP 624 Parts A O (Rating Requirements for Air Traffic Controllers). 3.2.2.6.1 For aircraft maintenance engineer licences, the provisions are found in EC legislation (i.e. Commission Regulation (EC) No 2042/2003 of 20 November 2003). However, as EC legislation does not apply Final Safety Oversight Audit Report United Kingdom March 2010

- 10 - to all aircraft, some maintenance engineers have retained their BCAR Section L National licences to carry out their tasks on those aircraft. 3.2.2.7 The specific medical requirements for flight crew (except flight engineers) are described in JAR-FCL 3 Amendment 5 (dated 1 December 2006). Meanwhile, medical standards for ATCOs are outlined in the Civil Aviation Authority Guidance Notes for Authorized Medical Examiners (dated October 1997). However, the content of this document does not constitute regulatory requirements and also does not reflect the latest amendments to Annex 1 to the Chicago Convention. 3.2.2.8 With respect to aircraft operations, commercial aircraft operations with aeroplanes are conducted in the UK Main in accordance with the EU-OPS, which is the transposition into EC law of JAR-OPS 1 as specified by Commission Regulation (EC) No 859/2008 of 20 August 2008 amending Council Regulation (EEC) No 3922/91 of 16 December 1991 as regards common technical requirements and administrative procedures applicable to commercial transportation by aeroplane. The EU OPS entered into force on 16 July 2008. 3.2.2.9 For commercial air transport with helicopter, EC legislation is not yet applicable and, while the UKCAA encourages commercial helicopter operators to comply with the provisions of JAR-OPS 3, JAR-OPS 3 has not been formally transposed into UK legislation. The national regulation in force in the United Kingdom is the ANO 2005, but it has not been amended to incorporate the latest amendments of Annex 6, Part III to the Chicago Convention. In addition, the list of differences with Annex 6, Part III as notified by the United Kingdom does not refer to the least stringent requirements of ANO 2005 and of JAR-OPS 3. 3.2.2.10 With respect to the transport of dangerous goods by air, the United Kingdom supplements the ANO 2005 provisions with the Air Navigation (Dangerous Goods) Regulations 2002, which adopt ICAO s Technical Instructions for the Safe Transport of Dangerous Goods by Air (Doc 9284). These regulations require air operators to obtain approvals to carry dangerous goods from the UKCAA. Under the ANO 2005, Article 70(2) provides for enforcement actions to be taken for failure to comply with the regulations regarding transport of dangerous goods, while Article 148(6) defines the criminal penalties. Contravention of the provisions of the dangerous goods regulation constitutes a criminal offence. In addition, the EU OPS, Subpart R addresses the transport of dangerous goods by air. Additional requirements issued by the UKCAA include: a) CAP 483 (Training in the Safe Transport of Dangerous Goods By Air), b) CAP 668 (Transport by Air of Dangerous Goods, Munitions of War, Sporting Weapons and Animals), c) CAP 675 (Transport of Dangerous Goods by Air), and d) CAP 768 (Guidance Material for Operators these either impose requirements or provide guidance to comply with requirements). 3.2.2.11 In the area of airworthiness, two sets of regulations prevail in the United Kingdom, each addressing the different areas of competence as established in Regulation (EC) No 216/2008 of 20 February 2008. They are: 1) EC regulations issued by European Community bodies, for the certification and continued airworthiness of aircraft which fall under the competence of EASA (hereinafter referred to as EASA aircraft); and Final Safety Oversight Audit Report United Kingdom March 2010

- 11-2) the ANO 2005, supported by the British Civil Airworthiness Requirements (BCARs) and CAPs addressing the national requirements for aircraft (including their engines, propellers and equipment) as described or listed in Annex II of Regulation (EC) No 216/2008 of 20 February 2008 (hereinafter referred to as Annex II aircraft). Note. UK National Requirements also apply to non-military State aircraft (e.g. police, coastguard, etc.) 3.2.2.12 Commission Regulation (EC) No 1702/2003 of 24 September 2003, Part 21 describes the general requirements and procedures for the certification of aircraft and related products, parts and appliances, and of the design and production organizations. For the certification of aeronautical products, the basis is laid down by EASA in the form of EASA Certification Specifications (CS), including airworthiness codes outlined in CS-23, CS-25, CS-27 and CS-29. Meanwhile, Commission Regulation (EC) No 2042/2003 of 20 November 2003 addresses maintenance organization approval in Part 145, and continuing airworthiness in Part M. Although significant preparatory work has been carried out to implement a requirement for approved maintenance organizations (as well as for air operators) to establish safety management systems (SMS), the European Commission has not promulgated the legislation and means of compliance to address this ICAO Standard which became applicable as of 1 January 2009. Requirements for observance of human factors principles in the design and application of maintenance programmes and for maintenance control manuals have also not been established at the European level, even though the UKCAA has published several CAPs (e.g. CAP 715, An Introduction to Aircraft Maintenance Engineering Human Factors for JAR 66; CAP 716, Aviation Maintenance Human Factors (EASA Part-145); and CAP 718, Human Factors in Aircraft Maintenance and Inspection ) on this subject. 3.2.2.13 At the national level, the provisions of Annex 7 to the Chicago Convention are addressed in the ANO 2005. An aircraft imported into the United Kingdom from another EU Member State is only required to have a certificate of airworthiness and a valid airworthiness review certificate. All other aircraft must hold an EASA type certificate and an export approval, although the type certificate from the State of Design is used as the basis for importation. The operations-derived equipment requirements of Annex 6, Parts I, II and III to the Chicago Convention have not been fully addressed by the applicable requirements in the United Kingdom, including EU-OPS, the ANO 2005 and JAR-OPS 3. 3.2.2.14 The BCARs (published in CAP 553, BCAR Section A Airworthiness Procedures where the CAA has Primary Responsibility for Type and CAP 554, BCAR Section B Airworthiness Procedures where the CAA does not have Primary Responsibility for Type Approval of the Product ) outline the national codes of airworthiness for aircraft categories not addressed by an EASA CS, along with the requirements for the approval of design and production organizations for Annex II aircraft. BCAR A8-3 lays down the requirements for the approval of maintenance organizations relating to the overhauls, repairs, modifications, replacements, inspections and tests to aircraft and components. BCAR A8-15 describes the requirements for an organization to obtain approval to conduct inspections associated with the renewal of a certificate of airworthiness. Meanwhile, BCAR A8-21 is a mirror image of Part 21, Subpart G, Production Organization Approval of the Commission Regulation (EC) No 1702/2003 of 24 September 2003. The standards on environmental noise for Annex II aircraft as stipulated in Annex 16, Volume I to the Chicago Convention are addressed by the Aeroplane Noise Regulations 1999. The Civil Aviation (Safety of Third Country Aircraft) Regulations 2006 provide for the conduct of ramp inspections of foreign aircraft under the EC s Safety Assessment of Foreign Aircraft (SAFA) Programmes (in compliance with Directive 2004.36/CE of the European Parliament and of the Council of 21 April 2004 on the safety of aircraft from outside the EC using EC airports). Final Safety Oversight Audit Report United Kingdom March 2010

- 12-3.2.2.15 With respect to ANS, in addition to and based on the ANO and the applicable SES regulations, the UKCAA has addressed the requirements of Annexes 2, 3, 4, 10, 11 and 15 to the Chicago Convention through the issuance the ATS Safety Regulation Policy Paper, Rules of the Air Regulation 1996 as well as numerous CAPs such as the following: a) CAP 746 (Meteorological Observations at Aerodromes) and CAP 782 (Regulation of Aeronautical Meteorological Services) for Annex 3 to the Chicago Convention; b) CAP 724 (Airspace Charter) for Annex 4 to the Chicago Convention; c) CAP 779 (Regulation of Aeronautical Information Management Services) for Annex 15 to the Chicago Convention; and d) CAP 493 (Manual of Air Traffic Services (MATS) Part 1) and CAP 670 (ATS Safety Requirements) for Annexes 10 and 11 to the Chicago Convention. 3.2.2.15.1 In addition, through the UK SAR Strategic Committee, the DfT has developed the policy to ensure that civilian SAR arrangements are in accordance with Annex 12 to the Chicago Convention. 3.2.2.16 With respect to aerodromes, the UKCAA has promulgated regulatory requirements covering most of the topics addressed in Annex 14, Volumes I and II to the Chicago Convention and the related manuals. These requirements are outlined in several CAPs. For example, CAP 168 (Licensing of Aerodromes) addresses the certification and the planning of aerodromes and covers several Annex 14-related issues such as licensing, aerodrome manual, aerodrome physical characteristics, obstacle control, obstacle limitation surfaces, bird strike risk management, aerodrome ground lightings, signals, markings, rescue and fire fighting (RFF), and emergency planning. In particular, Chapter 12 of CAP 168 applies to land-based heliports that wish to be licensed. In addition, provisions regarding obstacle control and protection against the bird strike hazards are laid down in various other regulatory documents promulgated by the Office of the Deputy Prime Minister, the DfT, the National Assembly for Wales (Circular 1/2003), and the Scottish Government (Circular 1/2002). 3.2.2.17 Aircraft accident and incident investigation in the United Kingdom is governed by the Civil Aviation (Investigation of Air Accidents and Incidents) Regulations 1996, which came into force on 21 November 1996. Under these regulations, the Secretary of State shall appoint investigators (referred to as Inspectors of Air Accidents ), including one of them as Chief Inspector of Air Accidents. These investigators form the AAIB. The Civil Aviation (Investigation of Air Accidents and Incidents) Regulations 1996 address both the conduct of investigations which fall under the investigation responsibility of the United Kingdom as well as the participation of the United Kingdom in investigations conducted by other States. Specifically, it is stated in Article 4 of these regulations that the sole objective of the investigations is the prevention of accidents and incidents. Toward this end, they provide the AAIB and its investigators with all the necessary legal powers and tools to conduct accident and incident investigations. Article 18 of the Civil Aviation (Investigation of Air Accidents and Incidents) Regulations 1996 also provides for protection against disclosure of the investigation records as listed in paragraph 5.12 of Annex 13 to the Chicago Convention and contain other necessary provisions to enable the United Kingdom to comply with its obligations under Annex 13 to the Chicago Convention. 3.2.3 Critical element 3 State civil aviation system and safety oversight functions The establishment of a civil aviation authority (CAA) and/or other relevant authorities or government agencies, headed by a Chief Executive Officer, supported by the appropriate and adequate technical and non-technical staff and provided with adequate financial resources. The State authority must have stated safety regulatory functions, objectives and safety policies. Final Safety Oversight Audit Report United Kingdom March 2010