Operators Navigate Cultural Shifts as FAA SMS Mandate Deadline Looms

As of January 2026, the business aviation sector is deeply engaged in a significant safety transformation. With the Federal Aviation Administration’s (FAA) expansion of 14 CFR Part 5 Safety Management Systems (SMS) now in full effect, operators are racing to meet compliance deadlines. According to recent reporting by the National Business Aviation Association (NBAA), the implementation process is revealing a stark divide between large fleet operators and smaller charter services.

The mandate, which extends SMS requirements beyond Part 121 airlines to include Part 135 charter operators, Part 91.147 air tour operators, and specific Part 21 manufacturers, has moved from a theoretical regulatory hurdle to an operational reality. While the final deadline for a Declaration of Compliance is set for May 28, 2027, industry feedback suggests that the “grace period” for planning has effectively ended.

The State of the Mandate

The FAA’s final rule became effective in May 2024, initiating a 36-month transition period. We are currently approaching the halfway mark of this window. According to the NBAA, the first major milestone has already passed: Part 21 certificate holders were required to submit their implementation plans by November 28, 2024.

The focus has now shifted to Part 135 and Part 91.147 operators, who must fully implement their systems and submit their final declarations by May 2027. While early adopters are touting the benefits of these systems, industry data highlights the logistical challenges facing the sector. Reports indicate that approximately 54% of Part 135 operators manage fleets of two or fewer aircraft, yet they face regulations originally designed for major airlines.

Operator Perspectives: Culture vs. Compliance

Feedback collected by the NBAA reveals that for many operators, the mandate is driving a fundamental shift in company culture rather than serving as a mere administrative task.

The Cultural Shift

Tavaero Jet Charter, a Part 135 operator, reports that implementing a robust SMS has altered internal dynamics for the better. Marcela White, Vice President at Tavaero, told the NBAA that the system has standardized policies and improved cross-team communication. She noted that customers have responded positively to the changes, viewing the safety protocols as a value-added service.

“SMS takes years to change the culture and see the benefits. It’s not just another rule!”

, Marcela White, Tavaero Jet Charter (via NBAA)

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The Scalability Challenge

Conversely, the administrative burden on smaller entities remains a primary concern. Mike Ott, Director of Program Operations at Phoenix Air Group, highlighted the difficulty of scaling “airline-style” regulations to fit small businesses. While the FAA has provided guidance for single-pilot operations, allowing the pilot to serve as both the Accountable Executive and Safety Manager, the complexity of compliance remains high for small teams.

Expert Warnings and Financial Incentives

Safety experts are cautioning operators against treating the mandate as a paperwork exercise. Amanda Ferraro, CEO of Aviation Safety Solutions, emphasized in the NBAA report that the FAA will validate that daily practices match documented procedures.

“Oversight begins as soon as the organization submits its Declaration of Compliance. The documentation must match the implemented SMS.”

, Amanda Ferraro, Aviation Safety Solutions (via NBAA)

Ferraro warned against purchasing “off-the-shelf” manuals that do not reflect an operator’s actual workflow, noting that such shortcuts often lead to failure during validation checks.

However, there are tangible financial benefits for those who comply early. Beyond the operational improvements, industry data suggests that operators with verified, robust SMS programs are realizing insurance premium reductions estimated between 2% and 5%.

AirPro News Analysis

The feedback from early 2026 suggests a bifurcation in the market. Large operators like Flexjet and Blue Hawaiian Helicopters, who adopted voluntary SMS years ago, are leveraging their “Gold Standard” safety ratings as a competitive differentiator. In contrast, smaller “mom-and-pop” operators are currently absorbing the heavy lifting of implementation. The risk for the industry lies in the “check-the-box” mentality; if small operators view SMS solely as a regulatory hurdle rather than a risk management tool, they may face significant friction when FAA inspectors begin validating their Declarations of Compliance in 2027.

Frequently Asked Questions

When is the final deadline for SMS compliance?

All affected Part 135 and Part 91.147 operators must submit their Declaration of Compliance to the FAA by May 28, 2027.

Who is affected by the expanded mandate?

The rule applies to Part 135 commuter and on-demand charter operators, Part 91.147 commercial air tour operators, and certain Part 21 design and production certificate holders.

Are there exceptions for small operators?

While the regulations apply to all, the FAA provides scalability options. For example, in single-pilot operations, one individual can fulfill multiple required roles, such as the Accountable Executive and Safety Manager.

Sources: NBAA

This article is based on an official report and press release from the National Business Aviation Association (NBAA).

2025 in Review: Legislative Wins and Global Advocacy Define a Pivotal Year for Business Aviation

According to a year-end report released by the National Business Aviation Association (NBAA), 2025 served as a watershed moment for the business aviation sector. The association characterizes the past 12 months as a period defined by major legislative victories, a unified global advocacy front, and significant strides in operational safety and mental health support. From the return of critical tax incentives to the expansion of Sustainability mandates, the industry navigated a complex landscape of “sweeping policy changes.”

The NBAA’s review highlights how the industry successfully shifted its narrative on the global stage while securing practical wins for operators and Manufacturers in Washington. Central to this success was the “CLIMBING. FAST.” campaign, which evolved from a U.S.-focused initiative into an international movement, directly countering environmental criticism and “flight shaming” protests across Europe and the United Kingdom.

We examine the key developments outlined in the NBAA’s 2025 retrospective, ranging from the reinstatement of 100% bonus depreciation to the technological leaps showcased at NBAA-BACE in Las Vegas.

Legislative and Policy Breakthroughs

The financial and operational landscape for aircraft owners saw substantial improvements in 2025, driven by what the NBAA describes as historic legislative achievements. Two major pieces of legislation stood out in the association’s report.

The Return of 100% Bonus Depreciation

Perhaps the most significant financial development for the industry was the passage of the “One Big Beautiful Bill Act” (OBBBA). Signed into law on July 4, 2025, this reconciliation bill permanently reinstated 100% bonus depreciation for qualified business aircraft. According to the report, this benefit applies retroactively to assets acquired and placed in service after January 19, 2025.

This legislative win reversed a scheduled phase-down of tax incentives, which had dropped to 40% earlier in the year. The NBAA notes that this restoration provided immediate “market optimism,” incentivizing fleet renewals and new aircraft purchases across the sector.

FAA Reauthorization and Privacy Protections

The FAA Reauthorization Act of 2024/2025 also brought long-awaited changes. For the first time, the legislation included a dedicated title for General Aviation, signaling a formal recognition of the sector’s distinct operational needs. Additionally, the Act addressed security concerns by mandating new privacy rules. These updates allow operators to block their registration information from public dissemination, a critical win for owners concerned about real-time tracking.

Advocacy Goes Global: “CLIMBING. FAST.”

In 2025, the NBAA’s primary advocacy campaign, “CLIMBING. FAST.”, expanded its reach beyond American borders. The initiative was officially adopted by the European Business Aviation Association (EBAA) and the British Business and General Aviation Association (BBGA), creating a unified transatlantic voice.

The campaign focused on highlighting the societal value of business aviation, emphasizing its role in humanitarian relief and job creation, citing 1.2 million jobs supported in the U.S. alone. The effectiveness of this messaging was recognized externally, with the campaign winning top honors in the 2025 PRNEWS Digital Awards for “Cause-Related Campaign.”

“The campaign successfully shifted the narrative to highlight business aviation’s societal value… and its status as a ‘testbed’ for sustainable technologies.”

, NBAA 2025 Report

Operational Focus: Mental Health and Sustainability

Beyond policy and PR, the industry made tangible progress in addressing the human element of aviation, specifically regarding pilot mental health.

Destigmatizing Mental Health

The FAA updated its guidance for Aviation Medical Examiners (AMEs) in 2025, granting them greater latitude to issue medical certificates to pilots with histories of “uncomplicated anxiety or depression.” This shift aims to move the industry away from a culture of silence toward one of support.

Legislatively, the Mental Health in Aviation Act of 2025 (H.R. 2591) passed the U.S. House of Representatives in September. However, the NBAA report notes that while the bill was introduced in the Senate in November 2025, it has not yet been signed into law.

Sustainability Mandates and Growth

Sustainability remained a dominant theme, with the 2025 Sustainability Summit focusing on scaling Sustainable Aviation Fuel (SAF). Operators faced increasing regulatory pressure, particularly from the EU’s ReFuelEU initiative, which mandated a 2% SAF blend starting in 2025. This requirement forced U.S. operators flying to Europe to adapt their fueling strategies rapidly.

Globally, the market continued to expand. The report projects the Middle East business jet market will reach $26.7 billion by 2028, fueled by infrastructure investments in Saudi Arabia and the UAE.

Innovation at NBAA-BACE 2025

The 2025 Business Aviation Convention & Exhibition (NBAA-BACE) in Las Vegas served as the launchpad for several high-profile aircraft debuts and operational updates.

• Bombardier Global 8000: Confirmed as the “fastest civil business jet” with a top speed of Mach 0.95.
• Otto Aerospace Phantom 3500: Debuted with a laminar-flow design promising significantly reduced fuel consumption.
• Cessna Citation Ascend: Unveiled by Textron Aviation, featuring updated Avionics and cabin enhancements.

For the first time, the convention also included a dedicated “Maintenance Track,” allowing professionals to earn inspection authorization (IA) renewal credits directly on the show floor.

AirPro News Analysis

The reinstatement of 100% bonus depreciation is likely the most consequential development for the manufacturing supply chain in 2025. While the “CLIMBING. FAST.” campaign addresses the long-term existential risk of public perception, the immediate tax incentives provided by the OBBBA directly impact order books for 2026 and 2027. By reversing the phase-down that had dipped to 40%, Washington has effectively lowered the real cost of capital for fleet modernization. We expect this to accelerate the retirement of older, less efficient aircraft, inadvertently supporting the industry’s sustainability goals by bringing cleaner engines into service faster than previously projected.

Sources

• NBAA

This article is based on an official press release from RoyalJet and Edése Doret Industrial Design.

RoyalJet Selects Edése Doret to Design Interiors for New ACJ320neo Fleet

RoyalJet, the Abu Dhabi-based leader in premium private aviation, has awarded a significant contract to New York-based Edése Doret Industrial Design (EDID) to create bespoke interiors for three new Airbus ACJ320neo aircraft. This agreement marks the third major collaboration between the two companies, reinforcing a partnership aimed at redefining the ultra-luxury charter market.

According to the company announcement, the project will focus on a specific thematic vision: an “Emirati Identity of Timeless, Elegant, Sophisticated Modernity.” The design is intended to blend cultural homage with advanced aviation technology, catering to RoyalJet’s elite clientele, which includes heads of state and ultra-high-net-worth individuals.

A Vision of “Elevated Sophistication”

The core of the new contract involves transforming the “Melody” cabin of the ACJ320neo, known for being the widest and tallest in its class, into a sanctuary that balances functionality with high-end luxury. EDID, a boutique firm known for unconventional and technically complex aircraft interiors, has been tasked with delivering a “flying lounge” experience.

Key elements of the design brief include:

• Cultural Integration: Interiors that reflect the heritage of the UAE while maintaining global appeal.
• Wellness-Centric Lighting: Advanced lighting systems designed to mitigate jet lag and enhance passenger well-being.
• Bespoke Configuration: Unique layouts featuring private meeting spaces, quiet zones, and spacious lounge areas utilizing the ACJ320neo’s 90 square meters of floor space.

Edése Doret, the founder of EDID, emphasized the unique nature of this project in a statement regarding the partnership.

“Our vision for these new ACJ320neo aircraft is to deliver an unparalleled elevated passenger experience that reflects the essence of Emirati identity of timeless, elegant, sophisticated modernity which is perfectly tailored to RoyalJet’s elite clientele.”

, Edése Doret, Founder of EDID

Strategic Fleet Diversification

While RoyalJet is historically recognized as the world’s largest operator of Boeing Business Jets (BBJs), this move to commission interiors for three Airbus ACJ320neo aircraft signals a strategic diversification of their fleet. The ACJ320neo offers distinct advantages, including improved fuel efficiency and an intercontinental range of approximately 6,000 nautical miles, capable of connecting Abu Dhabi non-stop to major hubs like London or Tokyo.

Paul de Salis, CEO of RoyalJet, noted that the addition of these aircraft is central to the operator’s expansion strategy.

“The ACJ320neo will enable Royal Jet Group to expand their product offering, surpassing the already sophisticated and discerning service experienced by our customers… Our partnership with Edése Doret Industrial Design fits perfectly with our core brand values of elevated sophistication and timeless elegance.”

, Paul de Salis, CEO of RoyalJet

AirPro News Analysis

The decision to integrate the ACJ320neo into a predominantly Boeing fleet suggests RoyalJet is prioritizing operational flexibility alongside luxury. The ACJ320neo’s lower cabin altitude and fuel-efficient engines align with a broader industry trend toward sustainability and passenger comfort on long-haul flights. By retaining EDID, who previously designed RoyalJet’s award-winning BBJs, the operator ensures design continuity across mixed airframes, maintaining a consistent brand identity even as the underlying hardware evolves.

Operational Excellence and Timeline

The collaboration also highlights the technical synergy between the operator and the design firm. Husham Osman, VP of Technical Services at RoyalJet, stated that the partnership reflects a shared commitment to “delivering the highest standards of luxury, cultural nuance, and operational excellence.”

The design contract was announced in late December 2025. Once completed, these aircraft will join the RoyalJet fleet, offering VVIP charter configurations that provide significantly more space than standard business jets.

Sources:
Zawya (Press Release)