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management personnel to discuss the need for a business plan.

(a) At the initial meeting, the CHDO will inform the repair station accountable management that they should develop and submit a business plan that should include the following elements:

Address any changes the air agency/repair station will make during the transition period that will require FAA approval or acceptance, including possible reduction in ratings and changes to Opspecs

Address possible operational impacts and reduced capabilities (e.g., staff reduction, contracting out, etc.)

Address the decisions of the bankruptcy court (if applicable)

Address initiatives for continued compliance with regulatory requirements and safe operating practices during the transition

Indicate interim operating methods and procedures with provisions for additions or modifications to the plan when necessary

Include the repair stations estimated schedule of when changes will be implemented

(b) The CHDO should advise the repair station accountable management that the FAA is prepared to respond to business plan modifications in a timely manner; however, the repair station should provide timely notification to the FAA of these changes.

(2) Review the Business Plan.  The CHDO should review the repair station business plan to

ensure that it covers the requirements listed in paragraph 5(1)(a).  If the PIs find deficiencies or potential problem areas in the business plan, they should meet with the repair station to work through the subject areas.

(3) Develop a Surveillance Plan, if Necessary.  The repair station may decline to develop a business plan or share the contents of such a plan with the CHDO.  In such cases, the CHDO should develop a surveillance plan with increased emphasis placed in areas of suspected moderate and high risk.

C.  Surveillance Program.

(1) The CHDO will continually review its surveillance program and adjust it to meet the repair station changing needs.

(2) All FAA surveillance should be recorded using the appropriate PTRS activity codes listed in this chapter.  Geographic units may be assigned to perform additional surveillance activities, as required.  The Flight Standards Regional Division Office will ensure that geographic work force resources are available to accomplish the activities.

(3) Assessment and Coordination of Surveillance Data.

(a) Information obtained from surveillance reports, the PI, and CHDO management should evaluate other related sources with special emphasis on the following areas:

Noncompliance with regulations or safe operating practices

Negative trends

Isolated deficiencies or incidents

Causes of noncompliance trends or isolated deficiencies

(b) The results of any assessment of surveillance data should be provided to the principal maintenance inspector and/or principal avionics inspector.  The PIs will communicate the necessary

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