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Gavel slams: Airbnb not eligible for privileged tax treatment

April 15, 2019 by Forimmediaterelease

A report released on behalf of the American Hotel and Lodging Association (AHLA) calls on state and local government leaders to reject Airbnb’s future pursuit of voluntary collection agreements (VCAs) and look to the Wayfair decision as a pathway to cancel current VCA agreements and bring Airbnb up to code with current industry tax standards and regulations.

AHLA released a new report on National Tax Day, conducted by former Director of the Montana Revenue Department Dan Bucks, which clearly demonstrates why the Supreme Court’s Wayfair vs. South Dakota decision last year eliminates the need for state and localities to enter into “voluntary collection agreements” (VCAs) with Airbnb and provides the legal framework and incentive to tax Airbnb like every other U.S. online business now.

“Airbnb no longer qualifies—if it ever did—for privileged treatment by tax agencies as a ‘voluntary collector,’” states Bucks in the report. “This treatment gives Airbnb an unfair advantage in the marketplace by creating a tax and regulatory haven for Airbnb lodging operators. Post-Wayfair, Airbnb’s “voluntary agreements” are now a relic of a past legal premise that no longer exists.”

Bucks urges government leaders to begin the process of terminating existing “voluntary” tax agreements with Airbnb in coordination with state adoption of “general marketplace provider” legislation. Bucks went on to say that disparities between the tax treatment of Airbnb and other online businesses pose a legal risk to states and localities.

“Airbnb has been making back-room deals and strong-arming state and local jurisdictions into ‘voluntary’ tax deals with no transparency, oversight or auditing capability for years,” stated Chip Rogers, President and CEO at AHLA. “Airbnb, and other short term rental platforms need to abide by the same rules as all other law-abiding, tax-paying businesses in the industry.”

AHLA urges state and local government leaders to terminate Airbnb’s voluntary tax deals and instead institute a tax policy that will collect taxes from Airbnb and its operators to ensure an even playing field and transparency for taxpayers. In San Francisco, home of Airbnb’s corporate headquarters, the company agreed to pay back taxes and collect city taxes from its hosts.  AHLA urges other states and localities to follow suit.

“Airbnb’s secret tax agreements are hurting communities across America by shortchanging their schools, infrastructure, and other public services” stated Rogers. “Airbnb’s special treatment needs to end.”

The American Hotel and Lodging Association (AHLA) is the singular voice representing every segment of the hotel industry including major chains, independent hotels, management companies, REIT’s, bed and breakfasts, industry partners and more.

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U.S. Travel honors its 2019 Travel Champions

April 10, 2019 by Forimmediaterelease

The U.S. Travel Association on Wednesday announced the recipients of the sixth annual Distinguished Travel Champion Award: Sen. Catherine Cortez Masto (D-NV), Chairman Peter DeFazio (D-OR), Sen. Rob Portman (D-OH), Rep. Tom Rice (R-SC) and Acting Under Secretary of State for Economic Growth, Energy, and the Environment Manisha Singh
Each is being honored for his or her exceptional leadership in advancing and protecting policies that strengthen travel to and within the United States.

U.S. Travel will present the awards today at U.S. Travel’s Destination Capitol Hill—the travel and tourism industry’s premier legislative fly-in event dedicated to educating policymakers about the power of travel and showcasing the industry as one of America’s most vital economic sectors.

“We always say that travel is neither a red or blue issue,” said U.S. Travel President and CEO Roger Dow. “This year’s Distinguished Travel Champions have a deep understanding of travel’s contributions to the American economy, and have consistently reached across the aisle to advance sensible policies that grow travel, enhance security and trade, and keep our economy moving.

“Our winners’ dedication to securing Brand USA’s long-term reauthorization, overhauling America’s infrastructure systems, preserving our national parks, rebranding and expanding the Visa Waiver Program, and upholding our nation’s Open Skies aviation agreements strengthen travel’s role as job creator and economic engine.”

Sen. Catherine Cortez Masto (D-NV)

Since entering Congress just two years ago, Cortez Masto has quickly become an advocate for the travel industry and a top congressional champion of Brand USA. Her tireless work and dedication to ensuring the reauthorization of Brand USA, a program crucial to the United States’ travel promotion and planning, is invaluable.

Said Cortez Masto: “I’m honored to receive the 2019 Distinguished Travel Champion Award. I say it all the time, Nevada is the gold standard for tourism and hospitality. We draw tourists to the Las Vegas Valley and from the pristine waters of Lake Tahoe to the scenic peaks of the Ruby Mountains. I’m so proud to support our $60 billion tourism economy and the jobs it supports in Nevada. As Senator, I’ll continue to fight for policies like Brand USA and those to increase efficient travel that strengthen our tourism industry for years to come.”

Chairman Peter DeFazio (D-OR)

DeFazio’s commitment to overhauling infrastructure systems within our country is crucial to increasing connectivity and facilitating travel growth across America. He has also undertaken laudable efforts to end the practice of diverting “9/11” security fees to other programs unrelated to air travel security.

DeFazio’s dedication to his home state’s $11.8 billion travel and tourism industry is commendable, as is his work to ensure local travel leaders have a voice in the state’s transportation planning.

Said DeFazio: “I am proud to be this year’s recipient of the U.S. Travel Association’s Distinguished Travel Champion Award. Travel and tourism promote economic prosperity, create jobs, and strengthen our national security through improved international relations. As Chairman of the Transportation and Infrastructure Committee, I am working hard to modernize our nation’s airports, increase federal investment in infrastructure, and ensure we remain on the cutting edge of innovation as it relates to transportation. All of these improvements will help encourage increased travel and tourism.”

Sen. Rob Portman (R-OH):

Portman’s leadership on national parks issues, as well as many other important fiscal issues facing the country, is vital to the preservation of our public lands and the continued growth of the American economy.

Portman led efforts to pass the Restore Our Parks Act and to establish a dedicated source of funding for the $12 billion deferred maintenance backlog that will help ensure the viability of our parks for generations to come. Our national parks are some of the biggest draws for domestic and international travelers, and countless “gateway” communities across the country rely on well-maintained parks and robust visitation.

“It is an honor to receive the U.S. Travel Association’s 2019 Distinguished Travel Champion Award,” said Portman. “If we want our national parks to be here for generations of travelers to come we must address the nearly $12 billion backlog in long-delayed maintenance projects at the National Park Service. I’ve seen this maintenance backlog firsthand at national park sites in Ohio, and it underscores why we must pass my bipartisan Restore Our Parks Act to ensure that that the National Park Service has the resources to continue preserving American treasures. I look forward to working to get this legislation across the finish line.”

Rep. Tom Rice (R-SC):

Rice’s co-sponsorship of the JOLT Act and commitment to strengthening and expanding the Visa Waiver Program is crucial to enhancing U.S. security and economic competitiveness.

Rice’s efforts to support towns and cities in his district devastated by Hurricane Florence, including tourism-dependent communities such as Myrtle Beach, have been critical.

“I am honored to receive the U.S. Travel Association’s 2019 Distinguished Travel Champion Award,” said Rice. “I will continue to advocate for policies that will support American jobs, strengthen national security, and grow South Carolina’s tourism economy.”

Acting Under Secretary of State for Economic Growth, Energy, and the Environment Manisha Singh:

Singh has undertaken crucial efforts to uphold our country’s vital Open Skies aviation agreements, increase financial transparency and protect the interests of all U.S. aviation stakeholders. She has worked hard to elevate the travel industry as an essential export and economic driver.

Said Singh: “I’m honored to receive U.S. Travel’s 2019 Distinguished Travel Champion Award. The U.S. State Department is pleased to support the U.S. travel industry and American jobs by negotiating and helping to enforce Open Skies aviation agreements that bring flights, travel, and business to the United States from around the world.”

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U.S. Travel applauds introduction of JOLT Act

April 9, 2019 by Forimmediaterelease

Have you heard of the JOLT Act? JOLT stands for Jobs Originated through Launching Travel.

The Executive Vice President of Public Affairs and Policy for the U.S. Travel Association, Tori Barnes  issued a statement on the introduction of the Jobs Originated through Launching Travel (JOLT) Act of 2019:

“International inbound travel is central to America’s job growth: in 2018, international travel spending directly supported 1.2 million American jobs and $33.4 billion in wages. The JOLT Act will do just as its name implies—provide a ‘jolt’ to the American economy and workforce with critical enhancements to inbound travel, including measures to increase both the security and efficiency of the U.S. visa process.

“The Visa Waiver Program—which the bill would re-designate as the Secure Travel Partnership—is one of the most important tools for increasing secure travel to the United States. Renaming the program will more precisely reflect its value as a national security instrument, and other provisions in the legislation will further strengthen the program while facilitating the arrival of qualified international visitors who bolster America’s economy.

“U.S. Travel applauds Representatives Quigley and Rice for recognizing the role that secure, robust international inbound visitation plays in America’s economic and jobs growth, and we are eager to work with Congress to advance this important bill.”

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WTTC launches global taskforce on human trafficking

April 4, 2019 by Forimmediaterelease

The World Travel & Tourism Council (WTTC) has today announced the formation of a global taskforce to help prevent and combat human trafficking – an illicit activity that affects 30 million victims worldwide and relies on travel networks to operate.

The taskforce comprises WTTC members and sector associations to become the first global industry-wide initiative to assert zero tolerance and share best practice.

As an industry, human trafficking is worth $150 billion annually and contributes heavily to modern slavery in which 40 million people worldwide are entrapped. One-quarter of trafficking victims worldwide are children (or 5.5 million). Meanwhile, 19% of victims are trafficked for sexual purposes, which makes up 66% of the illicit income generated.

Human trafficking is present virtually everywhere, yet not all criminalize it in all its forms.

The WTTC taskforce has thus been established for the purposes of:

  1. PREVENTION: to increase industry and consumer awareness of human trafficking. It is proven the more we know the more can be prevented.
  2. PROTECTION: to train employees and travelers on how to identify and report suspected cases.
  3. ACTION: to encourage governments to enact legislation which recognizes human trafficking as a crime throughout the entire chain and develop resources and support needs such as national hotlines.
  4. SUPPORT: to provide assistance, employability training, and employment opportunities to survivors.

The founding members of the taskforce are Airbnb, Amex GBT, The Bicester Village Shopping Collection, Ctrip.com International, CWT, Emirates, Expedia Group, Hilton, JTB Corp., Las Vegas Convention and Visitor Authority, Marriott International, Silversea, Thomas Cook, and TUI.

On the formation of the taskforce, Gloria Guevara, President & CEO of WTTC, commented: “Human trafficking is a devastating widespread and critical issue that unfortunately relies on Travel & Tourism networks to operate. As a sector, we must do everything in our power to help eradicate the problem so that people may move freely and safely across the globe, but never coerced.

“I am proud to today launch this vital taskforce comprised of the world’s most powerful travel leaders from across hotels, retails, airlines, cruise, technology, finance, and destination management, and are wholly committed to preventing trafficking, protecting victims, supporting survivors, and engaging with governments so that this pandemic ends once and for all.”

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Brunei Travel: Ready to be stoned to death? How will WTTC and UNWTO respond?

March 30, 2019 by Forimmediaterelease

Brunei is becoming a deadly place to visit starting April 3, specially if you are member of the LGBT Community.

Next week the World Travel and Tourism Council (WTTC) will have their annual summit in Seville, Spain. Tourism leaders from around the globe will meet and listen to keynote speaker U.S. President Obama. Will President Obama, UNWTO Secretary-General Zurab Pololikashvili, or WTTC CEO Gloria Guevara say something on what is developing in Brunei?

No country in the world so far issued travel warnings against Brunei. U.S. authorities have a level 2 travel advisories against Germany or the Bahamas but find travel for Americans perfectly safe when a new law threatens citizens and visitors, including children to be subject to death by stoning for same-sex sexual acts and amputation for robbery. Such a law will come into effect in Brunei Darussalam on April 3.

Brunei is a tiny nation on the island of Borneo, in 2 distinct sections surrounded by Malaysia and the South China Sea. It’s known for its beaches and biodiverse rainforest, much of it protected within reserves. The capital, Bandar Seri Begawan, is home to the opulent Jame’Asr Hassanil Bolkiah mosque and its 29 golden domes. The capital’s massive Istana Nurul Iman palace is the residence of Brunei’s ruling sultan

“Pending provisions in Brunei’s Penal Code would allow stoning and amputation as punishments – including for children, to name only their most heinous aspects,” said Rachel Chhoa-Howard, Brunei Researcher at Amnesty International.

“Brunei must immediately halt its plans to implement these vicious punishments and revise its Penal Code in compliance with its human rights obligations. The international community must urgently condemn Brunei’s move to put these cruel penalties into practice.”

These punishments are provided for in newly-implemented sections of the Brunei Darussalam Syariah Penal Code that are due to come into force on 3 April 2019, according to a discreet notice on the Attorney General’s website.

“To legalize such cruel and inhuman penalties is appalling of itself. Some of the potential ‘offences’ should not even be deemed crimes at all, including consensual sex between adults of the same gender,” said Rachel Chhoa-Howard. “These abusive provisions received widespread condemnation when plans were first discussed five years ago.”

Amnesty expressed grave concerns over the Penal Code when the code’s first phase was implemented in April 2014.

“Brunei’s Penal Code is a deeply flawed piece of legislation containing a range of provisions that violate human rights,” said Rachel Chhoa-Howard. “As well as imposing cruel, inhuman and degrading punishments, it blatantly restricts the rights to freedom of expression, religion, and belief, and codifies discrimination against women and girls.”

Stoning and a hunt to kill members of the LGBT community is not an isolated problem in Brunei alone. Brunei is joining countries like Iraq, Iran, Saudi Arabia or Tanzania.

Background

Brunei Darussalam has signed but not yet ratified the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment, and has rejected all recommendations to this effect in its human rights review at the UN in 2014.

Under international human rights law, corporal punishment in all its forms, such as stoning, amputation or whipping, constitutes torture or other cruel, inhuman or degrading punishment, which is prohibited in all circumstances.

Acts of torture and other ill-treatment are absolutely proscribed in the main international human rights instruments, most of which Brunei has not signed or ratified. In addition, this prohibition is also recognized as a peremptory rule of customary international law, meaning that every state is bound by it even if they are not a party to a relevant human rights treaty. All acts of torture constitute crimes under international law.

While Brunei retains the death penalty in law, it is abolitionist in practice. One new death sentence was imposed in 2017, for a drug-related offense.

Just a few years ago the Sultan of Brunei told UNWTO Secretary-General and WTTC CEO: “We will do our best to support tourism. Tourism is of strategic importance for Brunei and based on two principal resources: the country’s pristine rainforest in the heart of Borneo, and its spiritual and cultural heritage. Environmental protection and conservation must, therefore, lie at the heart of any tourism development, the Sultan had stressed.

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Aviation Safety: Fatigue management

March 28, 2019 by Forimmediaterelease

In aviation operations, managing fatigue is important because it diminishes an individual’s ability to perform almost all operational tasks. This clearly has implications for operational efficiency, but in situations where individuals are undertaking safety-critical activities, fatigue-effected performance can also have consequences for safety outcomes. Fatigue is a natural consequence of human physiology.

Because fatigue is affected by all waking activities (not only work demands), fatigue management has to be a shared responsibility between the State, service providers and individuals.

A brief history of flight and/or duty limitations

For most workers, hours of work are part of the working conditions and remuneration packages established through industrial agreements or social legislation. They are not necessarily established from a safety perspective.

However, the need to limit pilots’ flight and duty hours for the purpose of flight safety was recognized in ICAO Standards and Recommended Practices (SARPs) in the first edition of Annex 6 published in 1949.  At that time, ICAO SARPs required the operator to be responsible for establishing flight time limits that ensured that “fatigue, either occurring in a flight or successive flights or accumulating over a period of time, did not endanger the safety of a flight”. These limits had to be approved by the State.

By 1995, ICAO SARPs required States to establish flight time, flight duty periods and rest periods for international flight and cabin crew. The onus was on the State to identify “informed boundaries” that aimed to address the general fatigue risk for flight operations nationally. At no time have ICAO SARPs identified actual flight and duty hours because it had proven impossible to identify global limits that adequately addressed operational contexts in different regions.While ICAO SARPs apply only to international operations, many States also chose to establish similar flight and duty time limitations for domestic operations. States generally used the same flight and duty limits for helicopter crew as for airline crew.

The fallacy of flight and/or duty limitations is that staying within them means that operations are always safe. Buying into this fallacy suggests that scheduling to the limits is enough to manage fatigue-related risks. However, more recent SARP amendments related to prescriptive limits have highlighted the responsibilities of the operator to manage their particular fatigue-related risks within the limits using their SMS processes.

And then there was FRMS….

Fatigue Risk Management Systems (FRMS) represent an opportunity for operators to use their resources more efficiently and increase operational flexibility outside the prescriptive limits, whilst maintaining or even improving safety. In implementing an FRMS, the onus shifts to the operator to prove to the State that what they propose to do and how they continue to operate under an FRMS, is safe.

In 2011, SARPs enabling FRMS as an alternative means of compliance to prescriptive limitations were developed for aeroplane flight and cabin crew (Annex 6, Part I).  At the time of development, it was necessary to address concerns that airline operators would take this as an opportunity to schedule purely for economic benefits at the cost of safety. Therefore, while often referred to as “performance-based” approach, the FRMS SARPs are nevertheless very prescriptive about the necessary elements of an FRMS and require the explicit approval of an operator’s FRMS by the State.

Since then, similar FRMS SARPs were made applicable for helicopter flight and cabin crew in 2018 (Annex 6, Part III, Section II).

But what about air traffic controllers?

Despite their obvious impact on flight safety outcomes, ICAO SARPs have never required the hours of work to be limited for air traffic controllers even though some States have had hours of duty limitations for air traffic controllers for many years. This is about to change. Amendments to Annex 11, becoming applicable in 2020, will require that ICAO States establish duty limits and specify certain scheduling practices for air traffic controllers. As for international airline and helicopter operations, States will have the option of establishing FRMS regulations for air traffic service providers.

Fatigue Management SARPs today

Today, ICAO’s fatigue management SARPs support both prescriptive and FRMS approaches for managing fatigue such that:

  • Both approaches are based on scientific principles, knowledge and operational experience that take into account:
    • the need for adequate sleep (not just resting while awake) to restore and maintain all aspects of waking function (including alertness, physical and mental performance, and mood);
    • the circadian rhythms that drive changes in the ability to perform mental and physical work, and in sleep propensity (the ability to fall asleep and stay asleep), across the 24h day;
    • interactions between fatigue and workload in their effects on physical and mental performance; and
    • the operational context and the safety risk that a fatigue-impaired individual represents in that context.
  • States continue to be obliged to have flight and duty time limitations but are under no obligation to establish FRMS regulations. Where FRMS regulations are established, the operator/service provider, can manage none, some or all of its operations under an FRMS, once approved to do so.
  • Prescriptive fatigue management regulations now provide the baseline, in terms of safety equivalence, from which an FRMS is assessed.

In practice…

In Airlines:  The Fatigue Management amendments to the Annex 6, Part I, in 2011 led many States  to reviewing their prescriptive limitation regulations for pilots based on scientific principles and knowledge (refer text box) and identifying further requirements for operators to manage their fatigue-related risks within the prescribed limits.  Fewer States have reviewed their prescriptive limitation regulations for cabin crew.

In every case, despite a refocus on providing adequate opportunities for sleep and recovery, altering existing flight and duty limitations remains a very sensitive and difficult task because it impacts income and work conditions as well as the constraints of pre-existing employment agreements. It is made even more challenging for States whose flight and duty time limitations are legislated.

Where States have reviewed their prescribed flight and duty limits, the increased awareness of the relationship between sleep and performance has served to highlight the responsibilities of the individual crew member and the airline to manage fatigue, and in some cases have resulted in the prescribed limits sitting alongside a set of regulations  that make these responsibilities more explicit, e.g. the FAA’s Fatigue Risk Management Program, EASA’s Fatigue Management requirements, CASA’s Fatigue Management requirements and CAA South Africa’s Fatigue Management Program.

The scientific principles of fatigue management

 

  1. Periods of wake need to be limited.  Getting enough sleep (both quantity and quality) on a regular basis is essential for restoring the brain and body.
  2. Reducing the amount or the quality of sleep, even for a single night, decreases the ability to function and increases sleepiness the next day.
  3. The circadian body-clock affects the timing and quality of sleep and produces daily highs and lows in performance on various tasks.
  4. Workload can contribute to an individual’s level of fatigue.  Low workload may unmask physiological sleepiness while high workload may exceed the capacity of a fatigued individual.

Many States have established, or plan to establish, FRMS regulations, often at the encouragement of their airlines. The FRMS challenge for States continues to be whether they have the resources to provide the necessary oversight from a scientific and performance-based perspective, particularly when the same regulations usually apply to a variety of domestic flight operations. While FRMS requirements are onerous and time-consuming, the few airlines who have so far managed to get FRMS approval for particular routes have found the operational flexibility gained to be worth the effort.

General scheduling principles

 

  1. The perfect schedule for the human body is daytime duties with unrestricted sleep at night. Anything else is a compromise.
  2. The circadian body clock does not adapt fully to altered schedules such as night work.
  3. Whenever a duty period overlaps a crew member’s usual sleep time, it can be expected to restrict sleep. Examples include early duty start times, late duty end times, and night work.
  4. The more that a duty period overlaps a crew member’s usual sleep time, the less sleep the crew member is likely to obtain. Working right through the usual nighttime sleep period is the worst case scenario.
  5. Night duty also requires working through the time in the circadian body clock cycle when self-rated fatigue and mood are worst and additional effort is required to maintain alertness and performance.
  6. The longer a crew member is awake, the worse their alertness and performance become.
  7. Across consecutive duties with restricted sleep, crew members will accumulate a sleep debt and fatigue-related impairment will increase.
  8. To recover from sleep debt, crew members need a minimum of two full nights of sleep in a row. The frequency of recovery breaks should be related to the rate of accumulation of sleep debt.
  9. Keep short notice changes to a minimum, especially where they infringe or overlap the  Window of Circadian Low (WOCL).
  10. Duty periods associated with high workload (such as multiple, challenging landings and in marginal weather conditions) may need to be shortened and extensions avoided where at all possible.

In Helicopter Operations:  For some States, the recent amendments to Annex 6, Part II (Section II) have highlighted the need to establish flight and duty time limits for helicopter crew members that better relate to the context of helicopter operations, rather than using the same limits as for airline pilots. Within those limits, the helicopter operator is expected to build crew schedules that use both fatigue science and operational knowledge and experience.

A new fatigue management guide for helicopter operators, currently under development in ICAO, identifies general scheduling principles based on fatigue science to guide helicopter operators in building “fatigue-aware” schedules that offer optimum opportunities for sleep and recovery (refer text box).

The particular challenge in helicopter operations, however, is that so many helicopter operations are unscheduled. While some helicopter operators will be able to operate within prescribed limits and effectively manage fatigue risks using an SMS, many types of helicopter operations, such as those that require unscheduled, immediate responses, possibly in high-risk settings, will benefit from the operational flexibility and safety gains of an FRMS.

In Air Traffic Control Services: Next year, States are expected to have established prescriptive work hour limits for air traffic controllers, while FRMS regulations remain optional and can be established at any time. However, the nature of the relationship between the Air Navigation Services Provider (ANSP) and the State will influence how the implementation of fatigue management regulations will unfold. In most cases, the State provides oversight of only one ANSP and although there is a current trend for privatisation, many of the ANSPs are fully or partially owned by the State.

In an industry sector that is often largely self-regulated, the distinction between a prescriptive fatigue management approach and FRMS may become blurred. However, a refocus on safety and not only organisational expediency or personal preference is likely to have substantial effects on the way controllers’ work schedules are built in ANSPs across the world. This is a “watch this space”.

Fatigue Management Guidance for ICAO States

The Manual for the Oversight of Fatigue Management Approaches (Doc 9966) received another update this year – Version 2 (Revised) – and an unedited version (in English only) will shortly replace the current manual available for download here. On this website you can also find the following:

  • Fatigue Management Guide for Airline Operators (2nd Edition, 2015)
  • Fatigue Management Guide for General Aviation Operators of Large and Turboject Aeroplane (1st Edition, 2016)
  • Fatigue Management Guide for Air Traffic Service Providers (1st Edition, 2016)
  • The Fatigue Management Guide for Helicopter Operators (1st Edition) is expected to be available later this year.

The Fatigue Management Guide for Helicopter Operators (1st Edition) is expected to be available later this year.

The author, Dr. Michelle Millar, is the Technical Officer (Human Factors) and the NGAP Program Manager at ICAO. She heads the ICAO FRMS Task Force and has been involved in the development of ICAO fatigue management provisions since 2009. Her academic background is in sleep, fatigue and performance.

 

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