The Department of Policy, Law and Regulation of the Civil Aviation Administration of China ("CAAC") has recently issued the Circular on Issuing the Provisions on Credit Management for Acts Seriously Endangering Civil Aviation Safety of Individuals Directly Held Responsible in China's Civil Aviation Sector (for Trial Implementation) (Draft for Comment) (the "Draft for Comment") for public consultation by July 9, 2019.
The Draft for Comment sets forth the definition of the term "individuals directly held responsible" in the first place, and then stipulates that 15 circumstances, including "an internationally-committed violation results in either the punishment from the civil aviation regulator to revoke or cancel the administrative approval", will be considered acts seriously undermining civil aviation safety. If individuals directly held responsible of producers and operators engaged in civil aviation, fall under any of the aforesaid circumstances, they will be deemed as performing harmful acts and their acts will constitute seriously discreditable ones. Meanwhile, the Draft for Comment requires that if a producer or operator in the civil aviation sector performs such harmful acts for three times within a year, the civil aviation regulator at the place where it is located shall hold a regulatory talk with its legal representative or principal and urge it to prevent the reoccurrence of the same harmful acts.