Provisory Measure 1089 – CBA Reform – Part 3

Por Lucas Bernardes.

Provisory Measure 1089 updated on rules about activities of the Aeronautical Registry (RAB), certification, registration, and operation of aircraft. Please find below a summary of the changes:

• Although the general obligation to register aircrafts with the RAB has not been modified, the CBA now authorizes ANAC to create exceptions to this rule.
• the concept of experimental aircraft has been removed from the CBA.  ANAC has authority to regulate issuance of the special airworthiness certificate needed to allow the operation of the experimental aircraft;
• the rules which required certification of imported aircraft and related equipment by the Brazilian civil aviation authority, have been revoked.  ANAC will regulate this requirement and related process, if applicable, to seek local certification for aircraft and related equipment imported and certified by a civil aviation authority abroad.
  • NOTE: this is an important modification that will allow ANAC to create a more flexible environment for the certification and registration of aircraft and related equipment manufactured and certified abroad.  Although ANAC would still need to regulate this matter in more detail, the underlying intention associated with the removal of this provision is to allow ANAC to accept certification already granted by foreign civil aviation authorities, in order to avoid the need to carry out an extensive certification process locally.
• Several provisions applicable to the activities of the Brazilian Aeronautical Registry (‘RAB’) and registration of aircrafts and related instruments/agreements have been modified to remove procedural rules previously included in the law and, therefore, allow ANAC to have more flexibility to regulate these matters.
• In order to mitigate the bureaucracy associated with the operation of aircraft, the Provisory Measure revoked the provisions of the CBA that required local operators to certify logbooks with the RAB.
• The rules that expressly regulated aircraft finance leases have been revoked.
  • NOTE: there are other provisions included in the CBA that generally authorize ANAC to register transactions commonly used by the aviation industry, which would encompass finance leases, based on the Agency’s regulation.  Since the finance lease is a contractual structure extensively used in several economic sectors, the removal of the chapter from the CBA should not be seen as an attempt to discontinue the utilization of this structure, but only as another initiative to exclude from law certain matters which could be better regulated by ANAC.
• The rules that generally prevented the confiscation of aircraft utilized for public air transportation services have been revoked.
  • NOTE: The revocation of this provision increases risks of interruption of air transportation services in the event of confiscation of aircraft ordered by local authorities.

The Congress will have to ratify this legislation by the end of February (extension for another 60 days may apply), otherwise it will lose its effects. Congress can also modify any of the rules implemented by the Provisory legislation.

This article is for general informational and educational purposes.  It is not intended as and does not constitute legal advice or legal opinions and should not be used as such.  You should not act or rely upon any information provided herein without seeking the advice of a lawyer.