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UNITED STATES DEPARTMENT OF TRANSPORTATION 

OFFICE OF HEARINGS 

WASHINGTON, D.C. RECEIVED 

IN THE MATTER OF 

GRANT AVIATION, INC. 

MAR 0 8 2013 

HEARING DOCKET 

FAA DOCKET NOS. 2013-AWA-CPP-16670, 2013-AWA-CPP-17427, 2013-AWA-CPP17429, 2013-AWA-CPP-17430,2013-AWA-CPP-17431,& 2013-AWA-CPP-17575 

(Civil Penalty Proceedings) 

FDMS NOS. FAA-2012-1261, FAA-2012-1265, FAA-2012-1266, FAA-2-12-1267, FAA-2012-2168, and FAA-2013-0041 

COMPLAINANT'S MOTION TO TERMINATE PROCEEDINGS 

On February 26, 2013, the parties reached an agreement to settle these matters. A copy of 

this agreement is attached. Pillsuant to the settlement agreement and in accordance with 

§ 13.215 of the Rules of Practice, Complainant hereby withdraws the Complaints in these 

matters and requests that the assigned administrative law judge issue an Order terminating these 

proceedings with prejudice. 

Respectfully submitted this 28th day of February 2013. 

HOWARD L. MARTIN, JR 

Regional Counsel 

By: 

Glenn H. Brown 

Senior Attorney 1,,. •.•• 1 

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Re: Grant Aviation, Inc. 

FAA DOCKET NOS. 20 13-A W A-CPP-16670, 2013-A WA-CPP-17427, 20 13-A W A-CPP17429, 2013-AWA-CPP-17430,2013-AWA-CPP-17431,& 2013-AWA-CPP-17575 

FDMS NOS. FAA-2012-1261, FAA-2012-1265, FAA-2012-1266, FAA-2-12-1267, FAA2012-2168, and FAA-2013-0041 

I hereby certify that on this date I served a copy of the COMPLAINANT'S MOTION TO 

TERMINATE PROCEEDINGS by postage-prepaid, certified mail, return receipt requested, 

addressed as follows: 

The Honorable Richard C. Goodwin 

Office ofHearings, M-20; 

U.S. Department of Transportation 

1200 New Jersey Avenue, S.E. 

East Building Ground Floor, Room E12-320 

Washington, DC 20590 

R. Bruce McGlasson 

President, Grant Aviation, Inc. 

P.O. Box 92200 

Anchorage, AK 99509 

I further certify that on this date I have served the original and a copy of the 

COMPLAINANT'S MOTION TO TERMINATE PROCEEDINGS by postage-prepaid, 

certified mail, return receipt requested, addressed as follows: 

Federal Aviation Administration 

800 Independence Avenue, SW 

Washington, DC 20591 

ATTN: Hearing Docket Clerk, AGC-430 

Wilbur Wright Building- Suite 2W1000 

~ 4.520/3 

Date 
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UNITED STATES DEPARTMENT OF TRANSPORTATION 

OFFICE OF HEARINGS 

WASHINGTON, D.C. 

IN THE MATTER OF 

GRANT AVIATION, INC. 

FAA DOCKET NOS. 2013-AWA-CPP-16670, 2013-AWA-CPP-17427, 2013-AWA-CPP17429, 2013-AWA-CPP-17430,2013-AWA-CPP-17431,& 2013-AWA-CPP-17575 

(Civil Penalty Proceedings) 

FDMS NOS. FAA-2012-1261, FAA-2012-1265, FAA-2012-1266, FAA-2-12-1267, FAA-2012·2168, and FAA-2013-0041 

SETTLEMENT AGREEMENT 

WHEREAS, the Federal Aviation Administration (FAA), acting by and through the 

Regional Counsel for the Alaskan Region, issued Notices of Proposed Civil Penalty on January 

27,2012, in FAA Cases Nos. 2011AL030031, 2011AL030046, 2011AL030047, 

2011AL030055, and 2011AL030058 and on March 23,2012, in FAA Case No. 2011AL030075; 

and Final Notices of Proposed Civil Penalty in each ofthese FAA cases on November 16, 2012; 

WHEREAS, on November 28,2012, Grant Aviation, Inc.,(hereinafter "Grant 

Aviation") timely requested a hearing in each of the above FAA Cases, 

WHEREAS, on December 14, 2012, the FAA filed complaints in each of the above 

FAA cases seeking a total of $75,000 in civil penalties, and those complaints were assigned the 

above docket and FDMS numbers, respectively; 

WHEREAS; Grant Aviation specifically denies each and every regulatory violation 

alleged in the complaints in each of the above matters; and 

WHEREAS, in an effort to reduce the risk and decrease the overall cost of protracted 

litigation and to serve the public interest, the parties, Grant Aviation, acting through its duly 

authorized officers, and the FAA, acting through the Regional Counsel for the Alaskan Region, 

desire to settle each of the above matters; 

NOW, THEREFORE, the parties hereby agree and understand as follows: 

I 
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1. Upon execution of this Settlement Agreement, the FAA will issue an Orders 

Assessing Civil Penalties that will include findings of each of the violations alleged in the 

complaints referenced above and the assessment of a civil penalties totaling $75,000.00, but will 

not include a demand for payment, which is covered in paragraphs 4 and 5, below. 

2. Grant Aviation, understands and agrees that notwithstanding its denials of the findings 

of regulatory violations that will be made in the FAA's Orders Assessing Civil Penalties in these 

cases, these findings will become part of the enforcement history maintained by the FAA, and 

may be relied on, used, and offered by the Administrator in any future enforcement actions to the 

same extent that could be done if the findings had not been denied. 

3. Within ninety (90) days of the execution of this agreement, Grant Aviation will fully 

and completely resolve the debts it owes to the United States by virtue of the civil penalties 

assessed in FAA Cases Numbers 2009AL030061 {$12,000 plus penalties and interest) and 

2010NM730085 ($16,000 plus penalties and interest). The parties understand that because the 

FAA has referred these debts to the US Department of Treasury for collection, any determination 

as to how much Grant Aviation must pay to completely and fully resolve these debts is within 

the discretion of that agency and not the FAA. 

4. As more fully described below, the FAA will remit a portion or all of the $75,000 in 

civil penalties assessed in accordance with paragraph 1, above, provided Grant Aviation 

complies with its obligations under paragraph 3, above, and meets the various conditions and 

deadlines set forth below: 

a. The FAA will remit up to $25,000 of the above $75,000 provided Grant Aviation 

obtains a comprehensive audit of its operations and earns the four stars it has not yet earned 

under the Medallion Foundation's Five-Star Program by the deadlines as set forth below: 

( 1) Provided Grant Aviation obtains a comprehensive audit of its operations from 

the Medallion Foundation by September l, 2013, a total of$5000 will be remitted. The results 

of this audit shall be shared with the FAA to remain transparent, and said results shall remain 

non-punitive. 

(2) Provided Grant Aviation obtains the "Operational Control Program" star by 

March 1, 2014, a total of $5000 will be remitted. 

(3) Provided Grant Aviation obtains the "Safety Program" star by September 1, 

2014. a total of $5000 will be remitted. 

(4) Provided Grant Aviation obtains the "Maintenance and Ground Program" star 

by March 1, 2015, a total of $5000 will be remitted. 

(5) Provided Grant Aviation obtains the "Internal Audit Program" star by 

September I. 2015, a total of$5000 will be remitted. 

2 
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b. The FAA will remit up to $50,000 of the above $75,000 provided that Grant 

Aviation meets the following conditions during the five-year period commencing with the 

execution of this agreement: 

(1) Participates in the Medallion Foundation's Five Star/Shield Program as set 

forth in (a)(l)-(5), above, and maintains each star under that program once it is earned. 

(2) Works collaboratively with the FAA to freely communicate with the FAA 

and proactively resolve issues transparently. 

(3) Maintains adequate management staff to ensure a span of control for the 

expanding size and complexity of its operations and to effectively meet safety and regulatory 

requirements of the Federal Aviation Regulations. 

( 4) Provides an appropriate amount of Check Airman and Maintenance 

Supervisors to ensure compliance with regulatory requirements, company-approved training 

programs, and accepted policies and procedures. 

(5) Promptly complies with any demand for payment as discussed in paragraph 5. 

5. If at any time Grant Aviation fails to meet a deadline or condition set forth in 

paragraph 4, the FAA may make a demand for payment of the amounts that would have been 

remitted had Grant Aviation met the deadline or condition. No delay in making a demand for 

payment shall constitute a waiver ofthe FAA's right and ability to do so. 

6. All determinations as to whether or not Grant Aviation has met a deadline or condition 

under this agreement and how much will and will not be remitted shall be in the sole discretion 

of the Regional Counsel for the FAA's Alaskan Region. In making any such determinations, the 

parties are bound by a duty of fair dealing and to act in good faith. Further, the parties 

understand that circumstances that are largely beyond Grant Aviation's control may prevent it 

from meeting one or more of the above deadlines or conditions. Thus, before the Regional 

Counsel for the FAA's Alaskan Region makes any determination under this agreement, Grant 

Aviation will be afforded a reasonable opportunity to present information as to whether it met 

the deadline or condition, the efforts it made to meet the deadline or condition, and/or the 

circumstances that prevented it from meeting the deadline or condition, and that information will 

be given due consideration. 

7. Grant Aviation understands that any expansion beyond the current scope of operations 

or additions of aircraft will be at the sole discretion of the FAA based on Grant Aviation's 

successful Safety Performance provided by Grant's submission of a Risk Analysis and 

Mitigation Plan for the proposed operations, and FAA's validation of Grant's Safety 

Performance. 

8. Grant Aviation understands and agrees that by entering into this settlement agreement, 

it is giving up its right to a hearing in these matters, and that a copy of this agreement will be 

3 
submitted to the Hearing Docket and the assigned administrative law judge with a motion for an 

Order terminating the proceedings. 

9. Each party shall bear its own costs and attorneys' fees, and Grant Aviation will not 

apply for an award of such Wlder the Equal Access to Justice Act, 5 U.S.C. § 504. 

10. This Agreement constitutes the complete understanding between the parties with 

respect to the above·described matter. The parties warrant that no other promises or 

inducements for this Agreement have been made except as set forth in this Agreement. No other 

promises or agreements shall be binding unless signed by both parties and attached as an 

addendum to this Agreement. 

11. If any part of this Agreement is held invalid and unenforceable, all remaining 

portions shall nevertheless remain valid and enforceable to the extent they can be given effect 

without the invalid portion. 

Dated this_ day of February 2013. 

For the Complainant: 

HOWARD L. MARTIN, JR 

Regional Counsel 

By: 

Glenn H. Brown 

Senior Attorney 

By: ~~~~-=----------­ Scott E. Nonnan 

· Manager, Anchorage FSDO 

For the Respondent: 

GRANT AVIATION INC. 

Part 135 Air Carrier ENHA618D 

By: ~HL Bruce McGlasson 

President 

/Pkld£- (Secretary/ Assistant Secretary/ 

By: 

Treasurer/ Assistant Treasurer) 

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State of Alaska ) 

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Third Judicial District ) 

On February 26, 2013, R. Bruce McGlasson and Mark Richardson personally appeared before me, and 

upon oath, verified that they are officers of Grant Aviation, Inc .• as indicated above, that they executed 

this document, and that the execution of this document on behalf of the corporation is within their 

respective authority as officers of the corporation. 

-·---·--...... 

-5~--~~~========~~ST.~k~OFALASXAe Notary Public NOTARY PUBUC 

Renal8 Delvacchlo 

M/Conlnlaabi .1ft • 2018 

My Commission Expires: